Oxford Nanopore Technologies Reaffirms Guidance After Strong H1 Performance

Oxford Nanopore Technologies (LON: ONT) announced robust interim results for the six months ended June 30, 2025, reaffirming its full-year guidance.

The company saw revenue growth across all regions and customer segments, accompanied by improved EBITDA performance.

Revenue climbed to £105.6 million, a 25.6% increase year-over-year, or 28.0% on a constant currency basis. This growth was fueled by strong demand in both Research and Applied markets, as well as increased adoption of the high-output PromethION platform.

Gross profit reached £61.4 million, up from £49.5 million in the first half of 2024. While gross margin dipped slightly to 58.2%, underlying margin improvements were partially offset by a one-off inventory charge, product mix, and currency headwinds.

The company reported an adjusted EBITDA loss of £(48.3) million, lower than the £(61.7) million in the prior year, due to higher gross profits and disciplined cost management.

The company's balance sheet remains strong, with £337.3 million in cash, cash equivalents, and other liquid investments as of June 30, 2025.

Cash flow is said to be improving thanks to the adoption of a new pricing model and a higher proportion of customer capex purchases.

Growth was diversified across geographies, with APAC and EMEAI leading the way at 38.3% and 32.7% CC growth, respectively. The Americas also saw a 16.9% CC increase, driven by demand in Applied markets. Clinical applications experienced the fastest revenue growth at 52.9%, followed by Applied Industrial (27.4%), BioPharma (18.5%), and Research (22.1%). PromethION product range revenue jumped 59.6% year-on-year.

CEO Gordon Sanghera commented, “We delivered a strong first half performance, with broad-based growth across all geographies and customer segments.”

He added that revenue grew ahead of expectations, “driven by increasing demand in both Research and Applied markets and further adoption of our high-output PromethION platform by customers across a wide range of applications.”

Sanghera also highlighted that the company has made “clear progress” on its path to profitability, with improved EBITDA performance “reflecting expanding gross profit and disciplined cost control.”

The company announced on August 11 that Gordon Sanghera will step down as CEO by the end of 2026, after more than 20 years in the role. The search for his successor is underway. Co-founder Spike Willcocks has also left the business.

Oxford Nanopore maintained its FY25 guidance of 20-23% revenue growth on a constant currency basis, a gross margin of approximately 59%, and adjusted operating expense growth of 3-4%.

The company expects to reach adjusted EBITDA breakeven in FY27 and be cash flow positive in FY28, driven by revenue CAGR exceeding 30% (FY24-FY27) at constant currency.