Oxford Nanopore Technologies (ONT) H2 2025 earnings summary

Executive summary

• CEO transition: Gordon Sanghera steps down after 21 years, succeeded by Francis Van Parys, who brings global life sciences leadership and experience in scaling innovation-driven businesses.

• The company has evolved into a global platform technology provider, serving over 125 countries and multiple end markets.

• Achieved strong FY25 performance with £223.9m revenue, up 24.2% constant currency year-over-year, and broad-based growth across all customer segments and geographies.

• Strategic realignment and restructuring focused on prioritizing high-growth, high-return segments and operational efficiency.

• Cash and liquid investments stood at £302.8m at year-end, supporting future growth initiatives.

Financial highlights

• FY 2025 revenue grew 24.2% at constant currency to £223.9m, exceeding guidance, with over 20% growth in all regions.

• Gross margin reported at 58.6%, with a see-through margin of 61% after adjusting for one-off items.

• Adjusted OpEx growth limited to 1% year-over-year, reflecting strong cost control.

• Adjusted EBITDA loss improved by GBP 31.2 million (26%) to £86.7m, with a year-end cash position of £302.8m and no debt.

• Net cash outflow for the year was GBP 101 million, with working capital inflow of GBP 13.4 million and inventory levels reduced by GBP 18 million.

Outlook and guidance

• FY 2026 revenue guidance set at 21%-25% constant currency growth, above peer market expectations.

• Gross margin guidance for FY 2026 is 62%, with further improvements expected in 2027 (potentially 64%).

• Adjusted OpEx growth guidance at 0%-5% for FY 2026, reflecting benefits from restructuring and efficiency initiatives.

• Adjusted EBITDA breakeven targeted for 2027, with cash flow breakeven in 2028 and minimum cash reserves of GBP 100 million.

• Revenue growth in 2027 expected to be broadly similar to 2026, with potential upside from applied markets.