Oxford Nanopore Posts Narrower Losses as Margins Climb, Reaffirms Path to Breakeven

Oxford Nanopore Technologies (LSE: ONT) reported a marked improvement in profitability in its interim results for the six months to 30 June 2026, as the DNA-sequencing group pushed ahead with its turnaround plan under new chief executive Francis Van Parys.

Revenue rose 10.5% to £116.7 million (12.3% at constant currency), with gross margin expanding 400 basis points to 62.2% on the back of flow cell yield improvements, scale and wider adoption of the group’s new pricing model. The adjusted EBITDA loss more than halved year-on-year to £22.1 million, from £48.3 million, while the overall loss for the period narrowed to £48.0 million from £71.8 million.

Growth was led by strong demand in EMEAI and the Americas, and by Clinical (+35.4%) and BioPharma (+25.0%) end-markets, though this was partly offset by an 8.4% decline in Asia-Pacific, driven by a 15.7% drop in China.

Van Parys unveiled four strategic priorities — customer-centric growth, focused innovation, disciplined execution and building a high-performance culture — aimed at concentrating resources on the highest-potential applications. The company set a new target of more than $700 million in revenue by 2030, alongside an adjusted EBITDA margin above 15% by then, reiterating guidance for EBITDA breakeven in FY27 and positive free cash flow in FY28.

Post-period, Oxford Nanopore signed a global cross-licensing deal worth $20 million in fees plus $15 million in committed purchases, and a partnership with MyOme tied to Natera’s rare disease platform. Cash stood at £234.5 million, down from £302.8 million at year-end, reflecting seasonal working capital outflows.

Oxford Nanopore shares have been volatile in 2026, falling from a January high near 173p to close at 122.2p on 18 August, a decline of roughly 29% from the peak, though the stock has recovered from a July low around 96p, rallying over the past month on improving sentiment ahead of results.

Given the halving of EBITDA losses, margin beat and reaffirmed breakeven guidance, shares could see a modestly positive reaction, though investors may focus on the softer China performance, reduced operating cost growth guidance, and cash burn as areas warranting caution before a sustained re-rating.