Oxford Nanopore Technologies (LSE:ONT) reported revenue of £116.7 million for the six months to 30 June, up 10.5% on a reported basis and 12.3% at constant currency.
The molecular sensing technology group, which makes nanopore-based DNA and RNA sequencing devices, said gross margin rose 400 basis points to 62.2%, while its adjusted EBITDA loss narrowed to £22.1 million from £48.3 million a year earlier.
Growth was led by operations in EMEA and India, up 23.8% at constant currency, and the Americas, up 12.5%, offsetting an 8.4% decline in Asia-Pacific driven by a 15.7% drop in China. Clinical revenue climbed 35.4% and BioPharma 25%, while the PromethION product range grew 15.7% on strong demand for its P2 instrument.
The loss for the period reduced to £48 million from £71.8 million.
Cash and liquid investments stood at £234.5 million at period end, down from £302.8 million at the end of December, reflecting a seasonal working capital outflow including £25.7 million of bonus payments.
"These results demonstrate the impact of improving gross profit and disciplined cost control and show that we are tracking well towards adjusted EBITDA breakeven in FY27," said chief executive Francis Van Parys.
The company maintained full-year revenue guidance of 16-20% constant-currency growth, rising to 23-27% including a new $20 million licensing fee from a global diagnostics agreement signed after the period end. It set a new target of more than $700 million in revenue by 2030 and an adjusted EBITDA margin above 15% by that year.
Dr Julie Simmonds, analyst at Panmure Liberum, described the interim numbers as in line with expectations whilst repeating a Hold rating and a 170p target.
The broker cites the shift to a more commercially focused business, as the primary route to narrowing Oxford Nanopore’s valuation discount to peers. However, she flags execution risk around delivering the strategy as a key caveat that could affect the speed at which the peer gap closes.
News Intelligence what this means for the company
Oxford Nanopore halved its adjusted EBITDA loss to £22.1 million in H1 2026 while lifting gross margin 400 basis points to 62.2%, demonstrating the path to its FY27 breakeven target is intact. The company maintained 16–20% constant-currency revenue guidance and added a $20 million licensing deal post-period, raising the full-year outlook to 23–27% including that fee—a material upside to prior expectations.
The margin expansion and loss narrowing validate management's cost discipline and pricing power, narrowing the runway to profitability. However, the 8.4% decline in Asia-Pacific and 15.7% drop in China signal regional headwinds that offset strong growth in EMEA and the Americas, and cash burn of £68.3 million in H1 (from £302.8m to £234.5m) means the company must sustain this trajectory to reach breakeven without further capital raises.
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