The All Ordinaries Index (ASX: XAO) is down 0.3% in morning trade, and it's not getting any help from this crashing ASX All Ords stock.
The tumbling stock in question is Avita Medical Inc (ASX: AVH).
Shares in the regenerative medicine company closed yesterday trading for $1.725. In earlier trade, shares plunged to $1.330 apiece, down 22.9%. After some likely bargain hunting, shares are changing hands for $1.480 each at the time of writing, down 14.2%.
This follows on Avita Medical's second-quarter results (Q2 2025) for the three months ending 30 June.
Here's what has ASX investors favouring their sell buttons on Friday.
ASX All Ords stock tumbles on 2Q results
The Avita Medical share price is under heavy pressure today after the ASX All Ords stock reported second-quarter commercial revenue of $18.4 million. While that's up 21% from Q2 2024, it fell short of analyst expectations of $22.5 million in revenue.
It's a similar story with the company's improved, though still negative, earnings.
Avita reported a net loss for the quarter of $9.9 million. That equates to a loss of 38 cents per basic and diluted share. That compares favourably to the net loss of $15.4 million, or a loss of 60 cents per basic and diluted share, reported in Q2 2024.
But this also falls short of consensus expectations of an improvement to a net loss of 25 cents per share.
Also showing improvement were the ASX All Ords stock's operating expenses, which declined to $26.1 million in the quarter, down from $28.7 million in Q2 2024.
The company said the stiffest headwinds over the quarter came from a temporary gap in Medicare Administrative Contractor (MAC) payments to providers for the use of its RECELL System. This led to a weakening in demand.
Avita advised that multiple MACs initiated payments in July, with resolution expected in Q3.
What did management say?
Commenting on the results dragging on the ASX All Ords stock today, Avita Medical CEO Jim Corbett said, "Although the first half of 2025 tested our resilience and slowed our pace, a resolution is now underway, and our strategic direction hasn't changed."
Pointing to the company's core medical products, Corbet added:
The data tells the story: RECELL reduces hospital stays by 36%, Cohealyx achieves graft readiness in as little as five days. We're also grateful for CMS's support in expanding access to RECELL for Medicare beneficiaries with inpatient trauma wounds with the NTAP.
We're accelerating time to heal, time to recover, and time to deliver value, to patients and providers alike.
With today's big intraday fall factored in, shares in the ASX All Ords stock are now down 65% in 2025.
