Oxford Nanopore Technologies (ONT) H1 2026 earnings summary

Executive summary

• H1 2026 revenue grew 12.3% at constant currency to £116.7m, with strong device sales in EMEAI and Applied end-markets, but weaker growth in China and the Middle East due to geopolitical and operational headwinds.

• Gross margin improved to 62.2%, up 400bps year-on-year, driven by pricing model changes, yield improvements, and operational discipline.

• Adjusted EBITDA loss narrowed by 54% to £22.1m, reflecting lower operating expenses, cost control, and restructuring benefits.

• Net cash at period end was £234.5m, down from £302.8m at year-end 2025, mainly due to working capital seasonality and one-off payments.

• Strategic focus sharpened on customer-centric growth, innovation, disciplined execution, and high-value applications in BioPharma, Clinical, and Research.

Financial highlights

• Group revenue outside China and Middle East grew 16% at constant currency; EMEAI up 23.8%, AMR up 12.5%, APAC down 8.4%.

• Device sales up 32.6%, led by PromethION and P2i; consumables grew 2.7% due to normalization and pricing effects.

• Research revenue up 5.4% to £76m; clinical up 35.4% to £17.6m; biopharma up 25% to £9.5m; industrial up 6.2% to £13.7m.

• Adjusted operating expenses down 7% year-on-year to £123.4m.

• Operating cash outflow before working capital improved by £27.2m year-on-year.

Outlook and guidance

• FY26 guidance: 16%-20% constant currency revenue growth, ~62% gross margin, adjusted OpEx flat to -2% year-on-year, excluding $20m cross-licensing payment.

• Adjusted EBITDA breakeven targeted for FY27; positive free cash flow in FY28.

• By 2030, targeting >$700m revenue, >15% adjusted EBITDA margin, and growing free cash flow.