Understanding, trying to understand our business, wanting to become more, predictable, forecastable, credible, to, to understand how we might remove some of the noise and distraction as well around our, our covenants. And, the goal over the fourth quarter was not only to start, understanding our business enough to forecast accurately in the fourth quarter, which we did, but also to build on that as we enter 2026. The goal for 2026 is, and was at the time that we had that meeting, to, in a very disciplined, methodical fashion, grow the business, and, to be all about execution and, progressive revenue growth in 2026.
In order to do that, we needed to make sure that we had removed as many of those headwinds as we could, distractions, to make sure that we were set up for success, and I believe we've done that. The Q4 priorities that we had, number one, again, is to drive disciplined execution, and that's in every area. That's in our cash, that's in our people, and the way that we set quotas, the way that we forecast. All of that was done in fourth quarter, and we have a really good handle on our business. You see the revenue guidance for 2026 reflects a very bottoms-up approach and understanding of not only how much from a revenue standpoint we can grow, but at what rate and how much we can impact that through acceleration.
So that $80 million-$85 million guidance reflects a progressive quarter-over-quarter growth that we expect. And, like I said, I believe that we're very good at forecasting, and even as we sit here halfway through the first quarter, I feel very confident in understanding how we will finish this quarter even. We did finish the year at $71.6 million. We did have a $17.6 million revenue quarter after having a $17 million quarter in Q3. Again, not outstanding, but very stable. All of those orders in Q4 were. There were no large orders, no bulk orders.
We still had product on the shelf that needed to be utilized, but I think we have a kind of a blank slate on product heading into 2026, so that we engage with our customers. We understand how much they use, how much they buy, when they buy, so that we can be predictable, and we can impact that number and grow that number. We talked about last quarter our shift in our sales force, reducing the spend on the sales force, reducing the size of our sales force, but then also moving them geographically as appropriate to focus on those 200 key accounts, the 120+ burn centers, as well as the 50-60 level one trauma centers.
So we took advantage of the opportunity to not only cut costs, but also refine our strategy, focus our call points, and keep the best of the best in terms of that sales team. Give them appropriate quotas, stretch quotas for them to go after in 2026. We also obviously have a three-product platform. All three of those products still are fairly new. RECELL is not new, but RECELL GO is, as well as Cohealyx and PermeaDerm, and that creates its own challenge in trying to get it into the accounts to sell, and we'll talk more about that. We talked about the reimbursement challenges. The last time that we were here, we were still working through that process. We still are to some degree, but it's largely handled, and I'll talk more about that.
And then, of course, we had continued to trip these covenants with OrbiMed, and we thought it was really important to solve that issue, to remove that, and we've done that as well. You know, we grew about 11% in 2025, which isn't super impressive, but it's also not flat to negative, considering all the headwinds that we had. This year, we expect to grow between 12%-19%. We expect to get back on track to the kind of growth we've had in years past.
Specifically around reimbursement, we— I think the last time we had three of the seven MACs, Medicare Administrative Contractors, had published their rates, and now we're at six out of seven, and that seventh MAC, I'm highly engaged with them and the representatives that represent their constituents in the states that that covers, and we expect them to publish as well, as they've committed to do so. I'll now hand it over to David to go through some of the numbers and go ahead, David.
Yeah. Thanks, Cary. Let me give you some color on our financial results for the fourth quarter and for the full year. Cary's already talked about the $71.6 million for the year. That's 11% growth. It's not where we want to be, but again, it is growth. We've talked about the $80 million-$85 million guidance already. Where I wanna spend a couple of moments on is the gross profit margin. It was 82.1% for the year, 81% for the fourth quarter. That was impacted by a few things. One was we had some inventory reserves that we had to book that will not reoccur, and then also we do have a product mix impact that we will continue.
Both Cohealyx and PermeaDerm, we have revenue sharing arrangements with our partners. Cohealyx, we have a 50/50 ASP split, and Stedical we have a 60/40 split. Therefore, as the revenue from those products grow, there will be an impact to gross margin. However, for this year specifically, we expect RECELL to grow even faster than Cohealyx and PermeaDerm. Our expectation for a gross margin is going to be in the range of 83%-85%, because we're still sticking at around 86% for our RECELL products. The other item I wanted to point out is operating expenses. We've been very disciplined around operating costs. We took out, in the second quarter of last year, about $2.5 million per quarter.
When we did a, a transformation of our sales force, we also took an opportunity to look at G&A and R&D at the same time. There was $10 million annually that was taken out. Our run rate for the fourth quarter was $24.7 million, but that included a number of one-time costs, specifically severance costs of about $1.2 million. Our normalized operating expense, we believe, going forward, will be in the range of $23 million-$24 million. Just to point out, there are some non-cash items in that number, around $3 million, primarily around, you know, stock-based compensation. Historically, we have grown at a, a, a CAGR, a compound annual growth rate of 32%.
We did drop off in the 2025 to 11%, but our objective for this year and years going forward is to get back on that curve, somewhere north of 20%. Our guidance at the top end is right at 20%, and what we would want to achieve over the next couple of years is to get back to where we're growing at 30%, 20%-30%. We've talked about the gross margins. They have historically stayed above 80%, and as I indicated, we fully expect that to continue even with the product mix impact going forward. Thank you. Cash use, we've been disciplined.
We've reduced the amount of cash that we use every quarter for the last three quarters from $10.1 million in Q1 to Q2 to $5.1 million in Q4. And just to note that there will be an uptick in this first quarter. The cash use will go up because of a reset of employee benefits, payroll taxes, and bonuses that we have to pay. But once we get through this first quarter, and we start growing at the revenue rate that we think we're going to, that cash use will go down to a point where we will cross over to cash flow break even at some point.
We aren't giving guidance at this point in time, but towards the end of the year, we will get closer and closer to that break-even point. Once we can see that for sure, we will give everybody that guidance of when we're going to cross over. Then the last thing I want to talk about, and Cary mentioned it, we did have a credit facility with OrbiMed. We entered into that agreement in 2023, and when we entered into that, we set the revenue covenant at some revenue that was unachievable, going back now.
So every quarter last year, we were running up against those revenue covenants and having to do an amendment or do a waiver, and it just caused a lot of distraction that we needed to solve for. And so we went out and found another credit facility with Perceptive Advisors, a strong healthcare lender in the United States. And we've entered into an agreement, a total agreement of $60 million. We, we took down $50 million at close. And the objective was the main objective of doing a new credit facility was to reset the revenue covenants. For example, the first quarter of 2026, trailing twelve-month revenue covenant is $68.5 million.
If you look at the results for the three quarters in 2025, we would only have to achieve $15.4 million to not bust that revenue covenant. All of the revenue covenants for each of the quarters going forward for the 5-year term are set with the objective of having enough headroom in those revenue covenants where we don't have to worry about it. The full year revenue covenant for 2026 is $73 million, which is significantly lower than even our lower end of our guidance of $80 million. We also, at the time, reduced the cash requirement, the cash covenant, down from $10 million to $5 million. We did add a little bit of cash to the balance sheet, around $6 million net, but that was not necessarily the objective.
The objective was to take away the noise that we had seen all through 2025 around the revenue covenants, which we have successfully done with this new credit facility. I'll now turn it back to Cary.
Thanks, David. Just as a reminder, I mean, this, this is our product portfolio, and I think what's important to understand is we are calling on these physicians every day that our reps are in cases with them and in a very consultative way. And so not only is there that higher touch in terms of helping them use the product, but there's an expansion going on in RECELL, meaning physicians are using it for certain cases, certain size wounds. Our reps are committed to expanding that into different size, different types of wounds, expanding that usage within existing physicians, and then within existing accounts, expanding that to other physicians that don't currently use RECELL. So that is all ongoing. We measure internally utilization.
One of our corporate goals and something that we're pushing and measuring very intensely here in 2026 is the amount of utilization increase, the number of physicians that use it versus the number of physicians that were using it, what type of cases they use it for, how often they use it, all of that. Because those are precursors to increased revenue and penetration within existing accounts. The great thing about having a very focused number of accounts is that we're already in 90% of those, meaning we have relationships with purchasing, with administration, with the departments, and some physicians. And so you don't have to start that over again, constantly. You really have to grow within the accounts that you're already in, for the most part.
We have two new products, Cohealyx and PermeaDerm, and we are heavily engaged in getting adoption of those products. Most of the time, that requires the products to go through a value analysis committee. We currently have about 55 accounts that have Cohealyx in their value analysis committee. The way this works is that we have a champion within the account that sees the value and the need for Cohealyx to be used, and the advantage that it has over other dermal matrices. We provide them with as much data as we can on economic benefit, clinical benefit, workflow benefit, and others, analysis committee, and then it's evaluated over time.
As it comes up, that same work with them to make sure that the facility knows that it's available, that it's validated, and that they should start using it as extensively as possible. Same thing goes with PermeaDerm. We have a number of them that are in value analysis committees. Sometimes they aren't needed, but again, both of those will be aided as well as we go forward. Not so much that we need a lot more data for the value analysis committee, but from a quick adoption of both those technologies, the two studies that we have ongoing here will help us from a commercial standpoint. Again, as a reminder, about the value of having three products, three products, the same call point, kinda the same discussion, quite often the same wound, same patient, same physician.
We are being consultative with the physicians. Quite often, it's science, but there's some art to it as well, and it's great when they have options in terms of working with AVITA, where they can use PermeaDerm as a temporizing dressing to replace allograft in a more economic way and with some advantages as well. They can also on certain types of wounds use RECELL along with a split-thickness skin graft and then cover it with PermeaDerm. And then ultimately, with the full-thickness wound, you'd use PermeaDerm as temporizer, then you use Cohealyx to help vascularize the wound and prepare the wound bed for grafting, and then use RECELL with split-thickness skin graft or not, and then cover it with PermeaDerm again.
You see the advantage that physicians have in utilizing those products for the patient, for the patient's healing impact, but also from a revenue standpoint, what it does for our company to have that same patient who, you know, a year and a half ago, would have just. We only could have offered RECELL and that part of the treatment. But now, the, from a revenue standpoint, that per-patient revenue goes up substantially when we have these other products as well. Again, 2026 is all about focus. It's about execution. If you think about all the things that happened in 2025, where we had the sales kind of reconfiguration and the focus on those 200 sites, you had the MAC issue or the MACs issue with CMS, and the fact that physicians were not being paid.
You had, frankly, guidance that was higher than it should have been set. And things went slower than they should have gone. And we had a CEO transition, we had a number of headwinds, I think some of our own doing and some from an external standpoint. But I think by the time we hit the end of 2025, 90-some% of that was solved, resolved, and stabilized. And, you know, a company being stabilized and predictable is not all that exciting, but it is a precursor to the exciting things that are gonna occur going forward, and it prepares us for growth, reduces the amount of headwinds and distraction, and other things. So our people, including our executives, can focus on growing this business, primarily in the U.S., but elsewhere as well.
So we're focused on the U.S., we're focused on growing, but we also have made some inroads in other markets. We do have a distributor in Japan, as you know. We have a distributor, a really good distributor in Australia. We expect RECELL GO to be approved very soon. That distributor is being trained as we speak, and in parallel with that, that approval that's coming, we actually have a physician from the U.S. that's a heavy RECELL user that's moving to Melbourne, and that helps. That sort of champion, that sort of influence and impact, not only on the patients in Melbourne, but the physicians in eastern, southeastern Australia, I think could be really impactful. And we're in a handful of countries in Europe and, you know, it's early days.
We're less than two months into that. All the distributors have been trained, and while we were training those distributors, this Swiss nightclub fire occurred, and we just jumped in. We sent people over there, we sent resources and product over there, and it really not only helped patients, probably only a couple dozen of them were treated with RECELL, but also it brought attention to the fact that the day-to-day issues, and wounds, and burns that occur in these countries in Europe could be better served by having RECELL predominantly in their country. And so, again, early days there and more to come internationally.
You know, we're a data-driven company, a clinically driven company, and now too, an economically driven company in terms of the types of studies that we have out there and the data that we utilize in conversations with our physicians. If you think about how you get physicians to use not only more RECELL or more physicians to use RECELL, but then also Cohealyx and PermeaDerm, it's really multifaceted. You have to obviously have the clinical data. You have to have champions, and examples, and people on podium, and abstracts written and presented on. This patient came and presented, and I did this, and it was a great outcome. And it's not just a great outcome for the patient and clinically, but it's a great outcome for the facility as well.
We talk about the physician payment being a difficult situation when we lost that clarity, and we lost those payments last year. The hospital payment in utilizing RECELL, it's crucial that, you know, they get a set amount of payment. It doesn't matter if the patient is there for two weeks or two months. We have this moniker that says, you know, AVITA Medical: Healing at the speed of life. And what's so crucial about the speed at which patients heal is that everybody wins. The patient wins, the patient has a great outcome and gets to go home. The physician likes that as well, obviously, because they're caring for the patient, but the hospital gets their payment, and then that bed opens up.
They don't have to provide additional services if that patient lingers, or is there longer, or has complications, so it's extremely beneficial. If you look at Cohealyx, for example, one of the advantages that we tout as we compete is that it's quick, sooner, prepares the wound bed, to graft sooner than its competitors. PermeaDerm, sometimes it's just straight up. If you look at the two, clinical studies, they're both 40-patient studies, Cohealyx, one, PermeaDerm, one. Because they're post-market studies, we can talk about them before they're published. They're gonna publish towards the end of the year, but we're using them already. At the Boswick Conference last month, at the American Burn Association conference in April, physicians are utilizing that data in lunch symposiums, on podium, with abstracts. It's out there, and our salespeople can use that data.
With PermeaDerm, there are a lot of reasons why they would wanna use it, but sometimes straight up, it is easier to handle than an allograft, which you know, is frozen, needs to be processed in that way, but it's also less expensive. We had a physician that said, "I think I can save our facility $500,000 a year if I just switched from allograft to PermeaDerm." He said that in a lunch symposium with other physicians there. That's the kind of multipronged pressure that we're bringing to bear on our physicians to not only adopt utilizing RECELL more.
For example, in the 36% length of stay reduction, that has impact on strategic accounts and accounts that see the totality of the cost of care, not just the cost of the product or even reimbursement, but it's their patients and how soon they can get them out of the facility. As an example from the Cohealyx study, I wanna show you one. So this is not an easy study or an easy case. A lot of times, people show a nice, healthy individual that was wounded, and we applied a treatment, and they healed really well. Well, a 91-year-old is not predisposed to healing easily or well.
This 91-year-old female injured her leg, and it basically presented a gap between her skin, and there was a separation and a void between her skin and down to the fascia. That can't just stay because then everything starts to die. You can see where the wound is, where the injury is, but then you can see the donor site. We talk quite often about RECELL being this 80-to-1 ratio with a very small and thin donor site. In this case, you can see that's not 80-to-1, but that donor site is both for RECELL, but it's also for a split-thickness skin graft that they end up meshing to put over the injury at a 3-to-1 ratio. But then they spray RECELL over the top of it.
So this is an example of a physician using all three of our products on a patient for a great outcome. Next slide, warning, it's a little graphic, so apologize. But you can see on the left, there's the wound. You can see the necrotic skin that all needs to be cut away and down to the fascia, and that image on the right of that injury is that excised wound. Then in the middle there, you see Cohealyx placed on the wound. And so again, the idea of Cohealyx is to prepare a nice, vascularized wound bed that's prepared for grafting, a nice, living wound bed. And so that's exactly what happened. You can see how nice and red that is, how clean that is, ready for grafting, which is exactly what happened.
You can see kind of that mesh look on the screen. That's the, that's the skin graft, and then they put slits in it to spread it out across the wound at a 3-to-1 ratio in this case. And then we spray RECELL over the top. You put PermeaDerm, you can see the result on the right, which is amazing. Again, for— we all know 91-year-olds, that, skin is very thin, and it's really difficult to heal. One thing that doesn't get talked about is the, the donor site itself. The donor site itself can be quite painful, but in the case of, RECELL, of course, we take a thin— first of all, we take a thinner, sample, number one.
Number two, as they're spraying the wound bed, then they go back and spray the donor site as well, because that needs all the help it can get, especially in a 91-year-old. So for the donor site, you can see below, spray it with RECELL and put PermeaDerm over the top, and after a few weeks, that's the result. So a really positive result for a 91-year-old. You know, an example of a physician using all three of our products to have that kind of result. Again, finally, I think it's important for a company to, on a quarterly basis, to go back and to discuss, you know, what we said, what we said we were gonna do, and to do that. To then go ahead and execute according to plan, according to what we've committed to.
I think you can expect that here at the company. You know, three months ago, I came, and I talked a lot. I talked a lot about what was going on, what I was gonna do, and I'm doing a little of that today, too. Talking about last year, what we've solved, what we've prepared, and I look forward to next quarter, talking a lot about the numbers and the progress, and being judged by the kind of progress that we're making in the field around utilization and increased revenue in all three of our products. And so I look forward to doing that in a few months, and with that, I'd love to take some questions as well.
Thank you, Cary. We'll now move on to investor questions. If you have any questions, you can continue to submit them by using the Q&A function. I'll now hand over to Ben Atkins to run the Q&A.
Thanks, Rudy. And good morning, everybody there in Australia. What I'm going to do is, I'm gonna start by reading out the questions that were submitted as part of the pre-registration, and we have about five or six there. Then I'll turn to the Q&A on the Zoom today for any questions that are being asked live. So, Cary, first question to you, and it relates to the VACs, and it's a two-part question, both for Cohealyx and for RECELL. The question is: How many VACs are evaluating Cohealyx? And the second part is: Are there still hospitals among the key 200 that need to go through the VAC evaluation process before they can use RECELL? And if so, how many of those have already begun the VAC evaluation process?
Okay, well, first of all, I'll take the second one first, that we're not going through the VAC process with RECELL. That, that's been done. We're—we are straight up selling to physicians, and we're in expansion mode with RECELL. From a Cohealyx standpoint, I mentioned the fact that we have about 55 of them in the VAC process right now. And just to understand how long that process takes, it can take anywhere from 2-5 months usually. It just depends. What we try to do is everything within our power to move it along as quickly as possible. The other thing we try to do is get it into VAC as quickly as possible, but we also own that space once it comes out of VAC, meaning that everybody needs to know it came out.
We need to prepare the physicians while it's in VAC, let's say, in the case of Cohealyx, to be comfortable using it extensively, as extensively as possible. So the scenario you don't want is to get into VAC, once it comes out of VAC, for a physician to say, "Okay, you know, three weeks later, they realize that it's actually out and available for them to use, or that the buyer says they can actually buy it. And then they put a kind of toe in the water, and they use it on this kind of wound, and then it takes another three months before they're just kind of full bore using it. And so what we're trying to do is reduce all of that with our sales people. And what we're generally seeing is about a dozen coming out every quarter.
It varies, but that's why those 55, I think we'll see over the coming 2026, where they'll just work their way out every quarter, and we'll gradually have a lot smaller number that are still in VAC.
Question two, Cary, it's for you again, I think. The question relates to some changes under Medicare, perhaps more for the chronic wound side, but let me ask the question out loud. Medicare established a flat, standardized payment rate of approximately $127.28 per square centimeter from 2026. Has this benefited RECELL GO adoption and usage rate thus far?
Yeah, I mean, you were correct. You're correct, Ben, that it's primarily for the chronic wound space. I mean, because RECELL's reimbursed under CPT codes, and we've talked about that with the MAC. So you have the facility DRG payment, and then you have the physician payment as well. That's done through the MAC. And so that's what we're navigating from a reimbursement standpoint as it relates to RECELL.
Cary, another question for you before I have a question for David. One of our audience members was keen to understand the key reasons for the slow momentum and meaningful progression to sales and market capture, some of which you've already, I think, reflected on in the presentation. The second part to this question is, if you could also highlight how we are progressing against incumbent alternate options and products.
Yeah. So, RECELL, as I've said, is has been around for a good while and largely in a manual way. I think that if I look at progress in RECELL, it's there are a handful of reasons why a physician might not use it or might not use it yet, and some are convinced with additional data or peer pressure or whatever it might be. So we're leveraging all of those things, finding those pain points, finding ways to convince them. That's what our salespeople are doing every day, getting internal champions, getting people speaking at these conferences, convincing people this is the best standard of care.
So that's RECELL, and, you know, RECELL is kind of a one-of-a-kind, change the way you practice medicine kind of product, which is great, and we love it, and, our people love competing against, you know, the old ways. I think as it relates to Cohealyx and PermeaDerm, we don't shy away from the fact that there are a lot of other dermal matrices, a lot of other dressings, a lot of other choices they have. It's, it, it's a different type of selling, and the way you do that, number one, is you get them through VAC as quickly as you can so that you can, so that you can play in, in the marketplace at those accounts. And then, just like any other kind of selling, you try and find, the distinct advantages.
In the case of Cohealyx, number one is speed to graft, and speed to graft is important not only to the physician but to the patient. It's also important to the facility because it does play a role in that continuum of care for that wound and that patient to get them out faster, healing faster. There's also economic benefit, depending on who you're competing against. As I said, PermeaDerm, I used the example of really competing against Allograft and keeping it simple in terms of money that they can save and advantages that it has. Why the slow uptake? Well, again, if I mentioned to you that we have three. All of our products are new, and again, I'm not claiming that RECELL is new, but I'm saying RECELL GO is new.
And even though it's automated, anytime you launch a product, there's always kind of a change, and there's a necessity for real messaging and care in that process. So you have three new products, and it takes a bit. It takes a bit to have those conversations, to get them through the VACs. And, you know, when you disrupt the sales force, I feel like we optimized it, but it's still a disruption, and when you disrupt that, it causes delay. And so for me, I'm trying to remove all the delays, all the distractions, make sure they have exactly the messaging they need, the focus they need, the quotas they need, to just get up every morning and execute and be influential in their accounts.
Just as a reminder, before I ask the next question, if you do have any questions, please just add them to the Q&A, and we'll get to those shortly. David, this next one's for you, and it's a 4-part question, so I hope you have a pen and paper there. A few questions. First, what is the roadmap to profitability? And I think second to that first part, cash flow position. Third, an update on operational cost reduction, and fourth, any future capital funding, that you think might be required to be raised within the next 18 months. If you can comment on those four areas, please.
Thank you, Ben. So our path to profitability is really driven by 3 things, and it's pretty simple. It's driven by revenue growth, and it's also driven by disciplined operating expenses, maintaining where we are at this point in time, and then maintaining a high gross margin percentage. And we've taken care of our cost structure. At this point in time, it is set. We don't see any need for additional headcount in our commercial area. We don't see an additional need for cost in G&A. And R&D, at this point in time, is really focused on finishing our clinical studies, PermeaDerm 1 and Cohealyx 1. And we can see that potentially, over the next 18 months, our R&D costs may go down.
So we've taken care of the cost structure, to a point where the only thing we really need to do to get cash flow breakeven and profitability, is to grow our revenue. And Cary's talked a lot about how that's going to happen. And if, you know, we're starting out with a $17.6 million revenue from Q4, sequential growth growing to our guidance number of $80 million-$85 million, we will get to cash flow breakeven and profitability. We're not giving guidance at this point in time on when that's going to happen, but it is in the future. And our objective is to get to cash flow breakeven, get to sustainability, internally, from a cash perspective, without raising additional equity. That's not to say that we may not at some point in the future.
We may have a reason to raise additional equity, but we have enough cash on the balance sheet right now, and our objective is to grow revenue such that we can get to a point where we're not using any more cash, but we're actually generating cash on a quarterly basis. So I think I've answered those four parts, Ben. I'll leave it there.
Thank you, David. Cary, I'm going to ask the last of our pre-registered questions, and this one again is, is for you, and it relates to vitiligo. Vitiligo was previously highlighted as a major long-term value driver. In the recent materials, the focus has shifted almost exclusively to the staged wound pathway. Does this signal a formal deprioritization of the vitiligo commercial effort?
Yes. So, our vitiligo commercial effort is deprioritized, and I think, you know, we have a mission at this company to help patients heal, to be there for our patients and our clinicians. That's—w e're patient-focused and customer-centric at this company. But I say that, but, you know, we have FDA approval for stable vitiligo. Right now, the reimbursement for that procedure is uncertain, unsteady, too low, and, you know, it's really impossible to say that we're gonna have a priority of going to market for a product that's not reimbursed or that there's not sufficient payment to make it advantageous for us to do so. I think if that changes, we would love to be able to address that market.
I think there's been discussion in the past about if there was cash pay, you know, could it be utilized? Yes, obviously, it is FDA approved. But from a focus for us, it's just not gonna be a focus for us until the economics change.
Okay. I'm going to turn now to the questions and answers that have been submitted while we have been on this call, and I have a couple here. So I will start with the first that we received. This could be a question, I suppose, Cary or Dave, you wish to follow up, but there have been various rumors circulating about acquisitions. What is the process for evaluating any inquiries from possible buyers and the general view of management and the board as to entertaining an offer?
Well, the general view is that we're running the company to grow the company and to strengthen the company and to drive value creation. And so anytime you're a company that does that, you're gonna have people interested maybe in your technology or your company. First of all, we're not in a good position for that sort of a thing, number one. Number two, we're not looking for it. Our board, our management, our company wants to grow and get to cash flow positive and be on a trajectory that's as an independent company. I think any kind of M&A inquiry or strategic discussion about any partnerships, anything like that, they can come in, but we're not interested.
David, this next question I think is firmly for you, and relates to the TTM covenants. The question is: The rate of increase for the TTM covenants is substantial. For example, it is set at $140 million for the period ended December 31st, 2030. How will you meet these requirements?
That's a great question. It's hard to answer the question. Those revenue covenants were set with the expectation that we would be getting back on a 20% revenue growth per year. If we're on even a 20% or greater revenue growth, those revenue covenants are fully achievable in 4 years. A compounded annual revenue growth rate at 20% over the next 4 years gets us way past $140 million. It is all about revenue growth, and it's a conservative revenue growth based on our historical CAGR, and where we want to get back to, and where we think we can achieve.
Specifically, we have a large total addressable market in all of our products, and the revenue growth, you know, doubling our percentage of penetration into RECELL only, which is about 15%, would get us to $140 million very quickly. So that's how we're going to do it, and we set those revenue covenants with advisors with Perceptive Advisors, to make sure that even in 2030, we aren't going to be tripping them.
Thank you. Well, that completes all of the questions that were either submitted prior to the call or during the call. Unless anyone has a question in the next few moments, I will end the quick Q&A there. Cary, I'll hand back to you for any final thoughts.
Okay. Well, first of all, thank you all for your support and your engagement as investors or potential investors in the company. Those that follow the company, root for the company. I think as a board member, as chair of the board myself, I've, I've always wanted the company to succeed in a very big way, and I think that last year was difficult and it's difficult for the stock price. It was difficult, just as a company. But I, I think what we'll see looking back on 2025, is that we handled a lot of our business, a lot of those issues, and that we, we weathered that storm, with 11% growth.
That it's a one-off of a year that I wouldn't expect it to come again, and that we'll get back on the trajectory that I think everybody expects from this company. I think the company is undervalued. I think that we're very, we have a very low level of penetration within those existing accounts, and that we are laser focused on execution this year. And expect that as we revisit every quarter, that we'll have some good things to talk about. So again, thank you. Look forward to talking to you some more in the months to come.
Thank you.