REG - Oxford Nanopore Tech - Interim results for the 6 months ended 30 June 25
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RNS Number : 5414X Oxford Nanopore Technologies plc 02 September 2025
02 September 2025
Oxford Nanopore Technologies plc
Interim results for the six months ended 30 June 2025
Strong first half performance across all regions and customer segments; full
year guidance reaffirmed
Oxford Nanopore Technologies plc (LSE: ONT) ("Oxford Nanopore" or the
"Group"), the company behind a new generation of molecular sensing technology
based on nanopores, today announces its interim results for the six months
ended 30 June 2025.
Gordon Sanghera, Chief Executive Officer, commented:
"We delivered a strong first half performance, with broad-based growth across
all geographies and customer segments. 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. We also made clear progress on our path to
profitability, with improved EBITDA performance reflecting expanding gross
profit and disciplined cost control.
"At the same time, we made good progress against our strategic priorities. We
continued to innovate, enhancing our product performance and workflow
simplification, while extending our multiomic capabilities to provide even
richer genetic insights. We also entered into a new partnership with Cepheid
to develop automated infectious disease sequencing solutions, while
strengthening operations and refining our commercial strategy to target
high-priority applications. With this momentum, we remain on track to deliver
our 2025 guidance and are confident in our medium-term targets."
Summary financial performance 1 (#_edn1)
£ million H1 H1 Change Change
Unless otherwise stated 2025 2024 reported CC 2 (#_edn2)
Revenue 105.6 84.1 25.6% 28.0%
Gross profit 61.4 49.5 24.0%
Gross margin 58.2% 58.8% (60)bps
Adjusted EBITDA 3 (#_edn3) (48.3) (61.7) +13.4
Loss for the period (71.8) (74.7) +2.9
H1 Financial highlights
· Revenue of £105.6 million grew by 28.0% on a constant currency
basis (CC), up 25.6% on a reported basis, ahead of expectations.
· Revenue growth delivered in all regions, led by APAC and EMEAI, up by
38.3% CC and 32.7% CC respectively year-on-year. Despite ongoing uncertainty
in the US research environment, revenue in the Americas grew by 16.9% CC
underpinned by increasing demand in Applied markets.
· Growth was delivered across all customer end markets; revenue grew by
52.9% in Clinical, 27.4% in Applied Industrial, 18.5% in BioPharma and 22.1%
in Research.
· Revenue grew fastest across the PromethION product range 4 (#_edn4) up
59.6% year-on-year. The MinION product range 5 (#_edn5) declined by (3.1)%
and Other revenue, which includes kits, services and other devices, grew by
14.2%.
· Gross margin decreased by 60 basis points (bps) to 58.2% (H1
2024: 58.8%). Underlying margin improvements +525bps were driven by targeted
margin expansion initiatives and boosted by increased adoption of the new
pricing model. However, these gains were offset by a one-off non-cash
inventory charge in H1 of £3.3 million (-315bps), mix (-195bps) and currency
headwinds (-80bps).
· Adjusted EBITDA improved year-on-year and sequentially to
£(48.3) million, compared with £(61.7) million in H1 2024 and £(56.2)
million in H2 2024. This was primarily driven by increased gross profits and
disciplined control of the cost base. Adjusted operating costs were up 1.3%
against H1 2024 but down by 2.2% compared to H2 2024.
· Reduction in loss year-on-year to £(71.8) million (H1 2024:
£(74.7) million), reflecting the improvement in EBITDA loss.
· Strong balance sheet position; cash, cash equivalents and other
liquid investments of £337.3 million 6 (#_edn6) as at 30 June 2025, compared
to £403.8 million as of 31 December 2024. Cash flow is improving driven by
adoption of the new pricing model and a higher proportion of capex purchases
by customers, which has reduced the cash impact from devices being leased to
customers to £5.5 million in H1 2025 from £14.4 million in H1 2024.
H1 Operational and Strategic highlights
· Broad-based, diversified growth: Strong performance across all
geographies and customer segments, driven by growing customer demand and
adoption of the revised pricing model, underlining the resilience and
diversity of the Group's revenue base.
o Research customers: Large research and national programmes advanced, with
NIHR Bioresource scaling sequencing activity and UK Biobank completing its
pilot phase. The PRECISE programme was completed in Singapore, delivering
10,200 genomes. Genomics England's Cancer 2.0 programme concluded,
demonstrating utility in structural and epigenetic analysis. Adoption
broadened across disease research, RNA, methylation and single-cell
applications.
o Applied customers: Growth in Clinical markets was driven by broader
adoption in oncology and rare disease, including expanded use in rapid CNS
tumour classification, methylation-based tumour profiling and new data in
paediatric leukaemia demonstrating improvements in detection, cost and
turnaround times. BioPharma expanded quality control use cases, including
deployment by a major European manufacturer, while Industrial markets saw
wider use in synthetic biology.
· Clinical collaborations: New strategic partnership with Cepheid,
a subsidiary of Danaher, to develop and commercialise automated infectious
disease sequencing solutions.
· Innovation: Progress against 2025 goals, including improved
basecalling performance, real-time methylation detection, simplified workflows
for over 20 applications to support broader usage, enhanced direct RNA
sequencing with multiplexing to support breakthrough science, and pioneering
early progress in proteomics.
· Scientific publications: Approximately 2,000 peer-reviewed
papers published in the first half (18,000 to date 7 (#_edn7) ),
demonstrating the utility of Oxford Nanopore unique benefits and traction in
scientific research, spanning cancer, human genetics and infectious disease,
and demonstrating the potential for future diagnostic use.
· Operational excellence: Expanded manufacturing and logistics
capacity and introduced next-generation automated flow cell lines and
optimised processes to enhance product stability and scalability. Strengthened
quality assurance to ISO 13485 standards to support future regulated product
lines. Completed operational efficiency programme with ~5% reduction in
workforce and other cost savings of a similar amount allowing for the
reallocation of capital to high-priority growth areas.
· Strategic Planning and Execution: Refined Commercial Strategy
identified high-priority opportunities in Applied and Research markets worth
13 to 14 billion USD, where Oxford Nanopore is well positioned to compete,
underpinned by the unique features and benefits of the technology. Detailed,
go-to-market strategies are being developed, supported by targeted product
development and partnership initiatives. Further details on the refinement of
the Corporate Strategy to be disclosed at future investor events in Q4 2025.
Updates post period end
· As announced, on 11 August, Gordon Sanghera will step down as
Chief Executive Officer and from the Board by the end of 2026, after more than
20 years in the role. A search for a successor, to lead the next phase of
growth and commercialisation, is underway.
· The Group also notes that co-founder Spike Willcocks has left the
business after 20 years, during which he served as Chief Strategy Officer for
four years. The commercial team will report to Nick Keher, CFO, on an interim
basis.
FY25 and medium-term guidance on track:
· 2025 (no change): Revenue growth of 20-23% on a constant currency
basis, gross margin of ~59%, and adjusted operating expense growth of 3-4%.
· Medium-term (no change): Expect to reach adjusted EBITDA
breakeven in FY27 and be cash flow positive in FY28, driven by more than 30%
revenue CAGR (FY24-FY27) at constant currency, gross margin above 62% in FY27,
and disciplined operating expense growth of 3-8% (FY24-FY27).
See the business review section for further detail.
Presentation of results
Management will host a conference call and webcast today, 2 September, at
8:30am BST. For details, and to register, please visit
https://nanoporetech.com/about-us/investors/reports
(https://nanoporetech.com/about-us/investors/reports) . The webcast will be
recorded and a replay will be available via the same link shortly after the
presentation. For further details please contact ir@nanoporetech.com
(mailto:ir@nanoporetech.com)
-ENDS-
For further information, please contact:
Oxford Nanopore Technologies plc
Investors: ir@nanoporetech.com (mailto:ir@nanoporetech.com)
Media: media@nanoporetech.com
(mailto:media@nanoporetech.com)
Teneo (communications adviser to the Group)
Tom Murray, Jo Blackshaw, Lisa Jarrett-Kerr
+44 (0) 20 7353 4200
OxfordNanoporeTechnologies@teneo.com
(mailto:OxfordNanoporeTechnologies@teneo.com)
About Oxford Nanopore Technologies plc:
Oxford Nanopore Technologies' goal is to bring the widest benefits to society
through enabling the analysis of anything, by anyone, anywhere. The Group has
developed a new generation of nanopore-based sensing technology that is
currently used for real-time, high-performance, accessible, and scalable
analysis of DNA and RNA. The technology is used in more than 125 countries,
to understand the biology of humans, plants, animals, bacteria, viruses and
environments as well as to understand diseases such as cancer. Oxford
Nanopore's technology also has the potential to provide broad, high impact,
rapid insights in a number of areas including healthcare, food and
agriculture.
For more information please visit: www.nanoporetech.com
(http://www.nanoporetech.com)
Forward-looking statements
This announcement contains certain forward-looking statements. For example,
statements regarding expected revenue growth and profit margins are
forward-looking statements. Phrases such as "aim", "plan", "expect", "intend",
"anticipate", "believe", "estimate", "target", and similar expressions of a
future or forward-looking nature should also be considered forward-looking
statements. Forward-looking statements address our expected future business
and financial performance and financial condition, and by definition address
matters that are, to different degrees, uncertain. Our results could be
affected by macroeconomic conditions, delays or challenges in manufacturing or
delivering of products to our customers, suspensions of large projects and/or
acceleration of large products or accelerated adoption of pathogen
surveillance or applied uses of our products. These or other uncertainties may
cause our actual future results to be materially different than those
expressed in our forward-looking statements.
Operational and Strategic review
Execution of our strategy
Our growth strategy is built on three pillars: disruptive innovation,
commercial execution, and operational excellence. These priorities are
designed to drive sustainable long-term growth and expand our share across
both Research and Applied markets.
In the first half of 2025, we refined our strategic planning process to ensure
we prioritise and execute on high-priority opportunities that best leverage
the unique features of Oxford Nanopore's technology. This process integrates
perspectives from inside and outside the Group, enabling us to focus resources
where we can create the greatest long-term value for stakeholders.
Through this work, and by refining our commercial strategy across a market
exceeding $150 billion1 (#_ftn1) , we have identified market segments with a
potential value of up to $25 billion for Oxford Nanopore. Of this, $13 to $14
billion lies within high-priority areas that the Group is best positioned to
capture, underpinned by the unique features and benefits of our technology.
The Group is already actively targeting a number of these high-priority
segments, where we have established customer and partner engagement. In others
we are developing detailed go-to-market strategies - including focused
in-house product development requirements and a tailored partnership strategy-
to best capture these opportunities most effectively.
Looking forward, we expect the share of value represented by these
high-priority segments to increase as we continue to innovate our platform in
a targeted way, accelerating commercial conversion and value capture.
This strategic planning capability is becoming an increasingly important
enabler of execution as we grow and adapt to evolving market conditions. The
work underway will further refine our corporate strategy to support sustained
long-term revenue growth, and we look forward to sharing outcomes at investor
events in Q4 and in our 2025 annual report.
(1 (#_ftnref1) ) Source: DeciBio and company compiled estimates
Commercial execution
In the first half of 2025, we delivered strong revenue growth across all
regions, and in particularly APAC and EMEAI. Revenue was generated from a
diverse mix of customer segments, comprising Research (68%), BioPharma (7%),
Clinical (13%), and Applied Industrial (12%).
Engagement continues to deepen across all segments, with notable momentum
among Clinical, BioPharma and Industrial customers, where Oxford Nanopore's
differentiated platform is increasingly being adopted to address limitations
of existing technologies. Our expanding presence in applied markets combined
with sustained research demand, reinforces the broad applicability of our
technology across a growing customer base.
We continued to make good progress on our partnership strategy. In April, we
announced a new strategic collaboration with Cepheid, a subsidiary of Danaher,
to develop and commercialise a seamless end-to-end workflow that combines
Cepheid's GeneXpert system for pre-sequencing sample and library preparation
with Oxford Nanopore's rapid, information-rich molecular analysis platform.
Cepheid are developing a simple, integrated workflow (GeneXpert-to-GridION)
that can deliver results from bacterial samples in under eight hours-a
workflow designed to help hospitals and clinical labs test for infections more
quickly and efficiently.
EMEAI (Europe, Middle East, Africa and India)
Revenue in EMEAI was £44.6 million in the first half of 2025, representing
31% year-on-year growth (33% at constant currency), with strong performance
across all subregions. Growth was driven by increased flow cell utilisation
across an expanding installed base of high-output devices, alongside the
continued scaling of large programmes in human genetics and rare disease.
Device revenue grew 53%, while consumables increased by 25%, driven by a 45%
uplift in PromethION Flow Cell revenue. These utilisation gains were supported
by enhancements to our service and support infrastructure, focused on reducing
onboarding time, improving time-to-implementation, and optimising the customer
experience.
In Clinical markets, revenue grew by more than 45% year-on-year, driven by
broader adoption in oncology and rare disease. The Marie Curie Oncology Centre
in Poland adopted Oxford Nanopore technology for genome analysis and
methylation-based tumour profiling, which aims to replace short-read
sequencing to access richer diagnostic insights. Adoption also continued to
expand across Europe, with more sites using Oxford Nanopore for rapid CNS
tumour classification-achieving turnaround times as short as 30 minutes.
Similarly, the UK Health Security Agency (UKHSA) implemented direct RNA
sequencing in its radiation response and cancer surveillance work, replacing
PCR and legacy platforms with Oxford Nanopore's technology to enable detection
of native RNA modifications and expanded transcriptomic analysis.
In rare disease, the European Long Read Innovation Network (ELRIN) advanced
delivery of its 10,000-genome three-year programme, working towards a
transition from short-read sequencing to Oxford Nanopore's platform, based on
improved diagnostic yield and the ability to access native methylation data.
In Research markets, momentum continued across large-scale genetic disease
programmes. The NIHR Bioresource 22,000 sample study is now sequencing more
than 300 genomes per week, with approximately 10,000 completed to date. Our
Cancer 2.0 programme with Genomics England concluded during the period,
generating strong evidence of Oxford Nanopore's value in detecting structural
variation and methylation signatures in specific cancer types. Meanwhile, the
Rare Disease 2.0 programme is progressing toward the production phase and
offers potential to resolve unsolved cases through Oxford Nanopore sequencing.
The UK Biobank programme also made strong progress, completing its
implementation and pilot phase and remains on track to enter production phase
by the end of 2025. Oxford Nanopore technology will be used to generate the
first large-scale epigenetic dataset, analysing 50,000 UK Biobank samples to
uncover molecular drivers of cancer, dementia, and other complex diseases. The
resulting multi-omic data is expected to transform how genomic data is
leveraged for insights are used in early disease detection, personalised
treatments, and long-term health outcomes.
In the BioPharma segment, revenue grew more than 30% year-on-year, reflecting
growing adoption of Oxford Nanopore technology for quality control
applications. At a large European BioPharma customer, our technology now
supports QC processes across seven production sites. The customer consolidated
workflows previously reliant on mass spectrometry systems and traditional
Sanger sequencing, selecting Oxford Nanopore for its ability to reduce
hands-on time and minimise operator variability in non-genomic environments.
In parallel, a leading BioPharma organisation successfully completed
evaluation of our platform for mRNA QC applications.
In Applied Industrial markets, growth was driven by expanded use of Oxford
Nanopore sequencing for plasmid workflows, including new deployments by
service providers in Germany.
AMR (The Americas)
In the first half of 2025, revenue in the Americas was £36.0 million,
representing growth of 14.2% year-on-year (16.9% at constant currency),
despite continued uncertainty in the U.S. research funding environment. This
performance was underpinned by strong momentum across our Applied markets,
with particularly strong growth in Clinical applications, where revenue
increased by more than 70% year-on-year.
Growth in the region was driven by both new customer acquisition and increased
utilisation among existing accounts. PromethION Flow Cell revenue rose by
approximately 40% year-on-year, reflecting broader adoption of high-throughput
sequencing and demand across a wide range of applications. Customers continued
to show strong interest in features such as adaptive sampling-a method that
enables real-time enrichment of specific regions of the genome during
sequencing by rejecting off-target regions-and methylation analysis, which
provides insight into base modifications relevant to cancer and disease.
In the Research segment, revenue declined modestly as delayed funding and
continued caution among U.S.-based laboratories weighed on project activity.
Revenue from public health and government agencies, both included in the
Research segment, declined significantly year-on-year, reflecting ongoing
budgetary constraints at institutions such as the National Institutes of
Health, with many laboratories having delayed hiring and postponed the start
of new initiatives. However, revenue from academic institutions increased by
double digits year-on-year. Average order sizes in the U.S. were significantly
lower than in EMEAI, with federal accounts constrained by procurement
thresholds that require additional approval processes. In this environment, we
may be less impacted than peers due to the accessibility and affordability of
our platform, and in the U.S., revenue from Applied markets now exceeds that
of research-a structural shift in our customer base.
Clinical revenue growth was led by large PromethION device placements across
key accounts, including marquee customers utilising the platform across a
variety of genomic services, for microbiology research, and rare disease
testing. We also saw progress in paediatric leukaemia care, where both St.
Jude Children's Research Hospital and UNC Chapel Hill demonstrated the use of
Oxford Nanopore sequencing to deliver real-time results for acute myeloid
leukaemia, improving turnaround times and enabling faster and more
cost-effective decision-making compared to the current standard of care. The
paper, published in Nature, noted that 'whole genome nanopore sequencing with
adaptive sampling has the potential to provide genomic classification of acute
leukemia specimens with reduced cost and turnaround time compared to the
current standard of care.'
Revenue from BioPharma customers increased double digits year-on-year,
supported by growing adoption of GridION Q for biomanufacturing quality
control workflows. We continue to see strong interest in our technology across
BioPharma customers, particularly for applications requiring real-time,
multi-attribute testing in regulated environments.
The Applied Industrial segment also delivered growth, led by our customer
Plasmidsaurus. As that business continues to expand its microbial sequencing
services, it has launched new workflows for adeno-associated virus (AAV)
analysis-a critical vector in gene therapy development. In addition,
Plasmidsaurus is expanding into RNA and large-genome plasmid sequencing,
highlighting the increasing relevance of our platform in synthetic biology and
industrial applications.
The Americas remain a strategically important region for Oxford Nanopore. We
are seeing broadening use of our platform across Applied markets, and the
rapid transition to capital purchase by U.S. accounts is improving our
long-term value capture.
APAC (Asia Pacific)
Revenue in Asia Pacific was £24.9 million in the first half of 2025,
representing growth of 35.1% year-on-year (38.3% at constant currency). Growth
was driven by strong execution across the region, supported by the expansion
of our distributor network and increased demand from key service providers.
We continued to see strong growth across key customers in the period, driven
by the ability of Oxford Nanopore's platform to generate rich multiomic
data-including epigenetic insights such as methylation-which is increasingly
underpinning new research initiatives across the region. We also saw growing
interest in both direct RNA and circular RNA protocols.
A notable contributor to first-half revenue was the successful delivery of the
PRECISE programme in Singapore. In collaboration with a multi-party
consortium, we completed 10,200 Oxford Nanopore human genomes on schedule,
meeting all contractual quality metrics. This programme demonstrated our
ability to deliver complex, high-volume sequencing projects across diverse
populations and now serves as a model for future national-scale initiatives.
In China, we delivered double digit revenue growth despite continued end-use
control restrictions, which remain a headwind and led to the loss of two
significant opportunities where export licences could not be secured. As
previously highlighted, in response to constraints introduced in 2024, we
developed a combined PromethION 24 and data acquisition unit that meets de
minimis export requirements. We continued to expand our commercial footprint,
with new service providers adopting our technology for RNA sequencing,
methylation analysis and single-cell applications. We also deepened our
relationship with existing providers to support broader use of our platform
across genetic testing and microbial workflows.
In Japan, Cancer Precision Medicine (CPM) adopted Oxford Nanopore sequencing
following positive feedback from academic key opinion leaders and increased
visibility of the unique features and benefits of our technology in official
workshops and policy forums. This combination of scientific endorsement and
policy engagement helped underpin CPM's decision to adopt the PromethION
platform for high-throughput human disease research.
Looking ahead, we see a growing opportunity in clinical applications across
Asia Pacific, particularly in whole genome sequencing, hereditary cancer, and
infectious disease. We are building a healthy pipeline across key markets
including Australia, New Zealand, Singapore and Hong Kong, where demand for
clinical research and translational applications is supporting the next phase
of growth.
Innovation
Our commitment to innovation remains central to our strategy, as we continue
to deliver richer data, faster insights, and new capabilities across Research
and Applied markets. In the first half, we made solid progress against our
2025 strategic priorities: expanding adoption in Applied markets, advancing
our regulated product pipeline, simplifying the end-to-end user experience,
improving product performance, and extending our multiomic capabilities.
Accelerating adoption with increasingly rich, high-performance multiomic data
We continued to improve the performance of our platforms. Our latest
basecalling software, which converts raw signals into genetic data, has a
clear development path to Q30 (99.9%) accuracy. In collaboration with academic
partners, we released new software that allows more complete analysis of
complex regions of the genome-an area of growing interest in health and
disease research.
In addition, we have delivered improved performance and speed of methylation
detection, with many of these now available in real-time on the instrument.
This unmatched capability of detecting novel epigenetic markers will drive a
new class of translational genomic tests in complex genetic disease and
oncology applications.
At London Calling, our annual customer event, the team showed early data of an
increased speed enzyme combined with improved flow cell buffers delivering up
to 70% improvements in sequencing outputs on PromethION Flow Cells,
significantly reducing the price of a genome. Making information rich genomes
more accessible supports the move from legacy technologies to native DNA
technologies, where additional value is generated. These improvements will be
rolled out through beta programmes towards the end of the year.
Simplifying products and workflows to support broader usage
To support broader use of our technology, we continued to invest the
simplicity and robustness of our instrument software, and our analysis
platform EPI2ME. With over 20 key applications in areas such as single cell,
human whole genome sequencing, infectious disease detection, cancer genetics,
biomanufacturing QC and environmental monitoring, our teams can easily
demonstrate the value of our platform in market areas with clear unmet needs
which our technology can address.
These workflows can be automated, for further ease of use, on existing
automation providers that we work with through our compatible products
program, or on the ElysION instrument which is in Early Access.
Product development to enable adoption in Applied markets
In the first half, we adjusted our regulated product roadmap to focus on
upgrading GridION Q, which will include the R10 and RNA chemistries for
broader adoption with clinical and biomanufacturing QC customers. This upgrade
also supports the roll out by the NHS Centres of Excellence for respiratory
metagenomics. The GridION Q device is also expected to complete CE-IVD
submission in the EU for regulated Clinical markets by the end of 2025 and
will be available for specified partners only.
As part of this shift, we moved the planned launch of our regulated PromethION
Q device to 2026, to include key chemistry upgrades that will deliver
step-change performance and allow us to better meet customer needs.
Advancing direct RNA sequencing to support breakthrough science
Oxford Nanopore's platform is the only single platform capable of sequencing
DNA, RNA and proteins directly. In the first half of 2025, we made strong
progress in this area, including the development of a new, enhanced cDNA
protocol (which analyses RNA by converting it into DNA) and the launch of
an Early Access direct RNA multiplexing kit that allows up to 24 RNA samples
to be analysed on a single flow cell-helping customers save time and reduce
costs.
These updates are delivering industry-leading performance, supporting a
growing number of BioPharma applications beyond mRNA Vaccine Quality Control,
including drug discovery, sterility testing, and exploring tissue-specific RNA
modifications.
Our direct RNA technology is already enabling important discoveries. In a
recent study, three leading research groups used our direct RNA chemistry to
observe real-time changes in RNA modifications in response to glucose levels-a
finding that could help advance research and treatment discovery in diabetes
and metabolic disease.
Pioneering proteomics with nanopores
Our longer-term innovation strategy includes expanding into the proteomics
market. Proteins are the key functional molecules in the body and offer
important insights into disease and biology. In H1, we made progress across
several approaches: screening different protein variants, measuring the
presence of disease-related proteins, and identifying full-length proteins.
Closed early access programmes for some of these approaches are on track for
launch by the end of 2025. In addition, early work on de novo protein
sequencing has progressed, aimed at unlocking new frontiers in full-length,
reference-free protein analysis on the platform.
This work reflects our goal to create a single platform that can analyse DNA,
RNA and proteins together, providing a more complete picture of biology.
Operational excellence
In the first half of 2025, we made continued operational advances to support
our long-term growth strategy and continued global expansion. We focused on
strengthening our manufacturing capabilities, optimising logistics, and
improving the customer experience across key markets.
A notable milestone was the relocation of our global fulfilment centre from
Harwell to the new Spectrum facility in Abingdon. This upgraded site adds
significant technical capacity and supports scalable innovation to meet
growing demand. In Europe, we migrated our logistics operations to UPS
Healthcare in Roermond, Netherlands, enabling 30% faster lead times and
cutting average delivery times by 24 hours.
We also completed the discovery phase of our Salesforce transformation
programme and established a new Customer Experience Centre of Excellence. This
will significantly improve the way customers quote, order, and receive support
- reflecting our commitment to service quality at scale.
On the manufacturing side, we achieved improvements to flow cell quality and
production stability through process optimisation and better shipping
protocols. We are also continuing to introduce next-generation automated flow
cell assembly lines. These lines will deliver higher throughput while
occupying less space - enhancing scalability, sustainability and
reproducibility.
In parallel, we upgraded supplier audits and quality assurance practices in
line with ISO 13485 standards to support our regulated product lines. We also
expanded our ESG and compliance efforts across the global supply chain,
including stronger onboarding and training for partners, and the introduction
of a new KPI dashboard to track performance and reinforce best practices.
During the period, we also delivered an operational efficiency programme that
reduced our workforce by approximately 5%, and we are on track to reduce
planned non-headcount related spend by approximately 5% this year.
Importantly, this capital is being redirected to high priority growth areas.
These developments mark a step-change in Oxford Nanopore's operational
strength and readiness for future growth, innovation, and customer success.
Outlook
FY25 guidance (no change):
Revenue is expected to grow by 20-23% on a constant currency basis, reflecting
strong demand across the business while factoring in risks from US Federal
funding, particularly at the National Institutes of Health, and tighter export
control restrictions in China. Gross margin is expected to be around 59%,
supported by operational improvements and the new pricing model, partially
offset by the one-off inventory charge. Adjusted operating expenses are
anticipated to grow by approximately 3-4%.
Medium-term guidance (no change):
Progressing towards profitability remains a key focus, with the Group
expecting to reach adjusted EBITDA breakeven in FY27 and become cash flow
positive in FY28. This is underpinned by revenue growth of more than 30% CAGR
between FY24 and FY27, driven by continued penetration in the Research market
and expansion into BioPharma, Clinical and Applied Industrial segments; gross
margin improvement to exceed 62% by FY27 through manufacturing efficiencies,
volume growth, Applied-market penetration and the updated pricing model; and
operating expense growth of 3-8% CAGR, reflecting disciplined investment and
leveraging of existing infrastructure.
Financial review
Revenues include fluctuations in currency unless explicitly stated otherwise.
Certain numerical figures included herein have been rounded. Therefore,
discrepancies in between totals and the sums may occur due to such rounding.
Performance Summary
In the first half of 2025, the Group delivered results ahead of expectations,
with revenue of £105.6 million (H1 2024: £84.1 million), representing growth
of 28.0% at constant currency (CC) and 25.6% on a reported basis.
The Group delivered strong growth across its diverse customer base, with
Applied Markets showing particularly strong momentum: revenue grew by 52.9% in
Clinical, 27.4% in Applied Industrial, and 18.5% in BioPharma. Research also
performed well, with revenue up 22.1%. This growth reflects the meaningful
progress we've made in expanding our presence and unlocking new opportunities
across all Applied segments. Regionally, performance was led by APAC and
EMEAI, with revenues increasing 38.3% and 32.7% respectively on a constant
currency basis. Despite continued funding pressures in the US research
environment, revenue in the Americas grew 16.9% CC, supported by increasing
demand within Clinical end markets in particular.
The PromethION product range grew 59.6% year-on-year, driven by increasing
flow cell utilisation across larger platforms (+61%), alongside increasing
number of active devices . This performance was partially offset by continued
softness in the MinION range, which declined 3.1% year-on-year as customers
continue to favour PromethION as a platform for human sample projects and for
increased scale. Looking ahead, increasing demand for GridION Q among
BioPharma customers is expected to support the next phase of growth in the
MinION segment.
Gross margin decreased by 60 basis points year-on-year to 58.2%. Targeted
measures to improve gross margin progressed in line with expectations and were
meaningfully enhanced by increased adoption of capex purchases by customers,
leading to underlying improvements of 525bps. However, these initiatives were
offset in H1 by a non-cash one-off charge taken in H1 related to inventory
(£3.3 million, -315bps), alongside mix (-195bps) and currency headwinds
(-80bps).
The Group reported an adjusted EBITDA loss of £(48.3) million reflecting
continued progress on the path to profitability. This represented both a
year-on-year and sequential improvement, supported by disciplined cost control
and gross profit growth. Adjusted operating costs were broadly flat
year-on-year, reflecting good cost control in the period and the restructuring
to support reallocation of capital to higher ROI activities as previously
highlighted. We continue to assess current and future investment plans with a
focus on prioritisation and return on investment to support long-term
profitability.
The Group remains well capitalised with £337.3 million in cash, cash
equivalents and other liquid investments as at 30 June 2025 (FY 2024: £403.8
million). Cash flow conversion is improving driven by adoption of the new
pricing model and a higher proportion of capex purchases by customers, which
improves working capital dynamics as the cost of leasing devices to customers
fell to £5.5 million in H1 2025 from £14.4 million in H1 2024.
Results - at a glance
£million H1 25 H1 24 Change (%)
Revenue 105.6 84.1 25.6%
Gross profit 61.4 49.5 24.0%
Gross margin (%) 58.2% 58.8% (60)bps
Operating loss (77.8) (77.0) 1.0%
Adjusted EBITDA (48.3) (61.7) +13.4
Loss for the period (71.8) (74.7) +2.9
£million 30 June 31 December Change (%)
2025 2024
Cash, cash equivalents and other liquid investments(2 (#_ftn2) ) 337.3 403.8 (16.5)%
(2 (#_ftnref2) ) Cash, cash equivalents and other liquid investments includes
cash and cash equivalents and investment bonds.
Revenue by product range
Revenue grew fastest across the PromethION product range primarily driven by
increasing customer flow cell utilisation. This helped offset softness in the
MinION product range.
Revenue from the PromethION product range, representing all devices and flow
cell sales from the PromethION range, grew 59.6% in H1 2025 reaching £51.1
million from £32.0 million in H1 2024. The increase is driven by strong
growth across both PromethION Flow Cell and device revenues. Growth across the
PromethION range was supported by increasing demand from customers such as
Plasmidsaurus in AMR, PRECISE in APAC and Genomics England in EMEAI.
Revenues from the MinION product range, representing all sales of MinION Flow
Cells and devices that run MinION Flow Cells (such as GridION and MinION)
declined by 3.1% to £27.6 million (H1 2024: £28.5 million) due to a mix of
factors primarily related to lower flow cell revenue and currency headwinds.
Other revenues, representing kits, service revenues and other devices grew
14.2% to £26.9 million (H1 2024: £23.6 million).
£million H1 25 H1 24 Change ( %)
PromethION product range 51.1 32.0 +59.6%
MinION product range 27.6 28.5 (3.1)%
Other 26.9 23.6 +14.2%
Revenue 105.6 84.1 25.6%
Geographical trends
The Group aims to make its technology available to a broad range of scientific
users, and currently supports users in more than 125 countries. In some
territories the Group works with distributors to achieve or enhance its own
commercial presence.
On a geographical basis, the strong revenue performance was driven by new and
expanded contracts and increasing sales team productivity. Growth was led by
APAC and EMEAI, up by 38.3% CC and 32.7% CC respectively year-on-year. Despite
ongoing uncertainty in the US research environment, revenue in
the Americas grew by 16.9% CC underpinned by increasing demand in Applied
markets.
AMR revenue grew 14.2% to £36.0 million in H1 2025 (H1 2024: £31.6 million)
driven primarily by growth in the US. APAC revenue grew 35.1% to £24.9
million in H1 2025 (H1 2024: £18.4 million) driven by large population
genomics programmes in Singapore, Japan and Hong Kong and Indonesia, and
increased revenue in China.
EMEAI revenue grew 31.0% to £44.6 million (H1 2024: £34.1 million) driven by
new and expanded contracts delivering strong growth particularly in the UK and
Europe.
£million H1 25 H1 24 Growth (%) Growth CC (%)
AMR 36.0 31.6 14.2% 16.9%
APAC 24.9 18.4 35.1% 38.3%
EMEAI 44.6 34.1 31.0% 32.7%
Revenue 105.6 84.1 25.6% 28.0%
Revenue by Customer Type
Our H1 2025 revenues by customer end market (i.e. the end market of the
customer or company buying our products) is as follows:
· 68% came from Research customers who are funded to research novel
science such as academic research institutes, this category includes
government, public health, grant funding and distributors. Revenue of £72.1
million was 22.1% above H1 2024 of £59.0 million, driven by growth in APAC
and EMEAI.
· 12% came from Applied Industrial customers, who are utilising
sequencing for application in industrial or service setting e.g. outsourced
Synthetic Biology. Revenue of £12.9 million was 27.4% above H1 2024 of £10.1
million.
· 13% from Clinical customers where data may have diagnostic,
prognostic or therapeutic value. Revenue of £13.0 million was 52.9% above H1
2024 of £8.5 million, driven by strong growth in AMR and EMEAI.
· 7% from BioPharma customers funded to develop, make, and sell
pharmaceuticals. Revenue of £7.6 million was 18.5% above H1 2024 of £6.4
million.
£million H1 25 H1 24 Growth (%)
Applied Industrial 12.9 10.1 27.4%
Clinical 13.0 8.5 52.9%
BioPharma 7.6 6.4 18.5%
Research 72.1 59.0 22.1%
Revenue 105.6 84.1 25.6%
Gross Margin
The Group's Gross profit of £61.4 million was up 24% compared to H1 2024.
Gross margin was down slightly to 58.2% in H1 2025 from to 58.8% in H1 2024.
Underlying margin improvements (+525bps) were driven by targeted margin
expansion initiatives and boosted by increased adoption of the new pricing
model. However, these gains were offset by a one-off non-cash inventory charge
in H1 of £3.3 million (-315bps), mix (-195bps) and currency headwinds
(-80)bps.
We remain committed to continual margin improvement across all products and
will continue to invest in manufacturing innovation, to deliver this goal.
% H1 25 H1 24 Change
Gross margin % 58.2% 58.8% (60)bps
Impact of headcount
Average headcount (FTEs) H1 25 H1 24 Change (%)
Research and development 511 504 1.4%
Production 168 156 7.7%
Selling, general & administration 646 621 4.0%
Total 1,325 1,281 3.4%
In H1 2025, the Group increased its average headcount by 3.4% from H1 2024.
This increase was predominantly across the production and the commercial
teams. The Group's manufacturing headcount has increased by 7.7% from H1 2024
with increases across production teams and supply chain to cater for increased
demand from a growing client base.
The Group's average headcount in the selling, general and administration
functions increased by 4.0% largely from expansion of the commercial teams in
key geographic regions supports the Group's global business growth objectives.
During H1 2025 the Group entered into a targeted restructuring program,
leading to a reduction in the overall workforce of around 5%, spread broadly
evenly across R&D, Commercial and Corporate areas resulting in a total
cash charge of £5.5 million over 2025 in relation to redundancy payments. The
impact on the H1 2025 results of £4.2 million has been treated as an
adjusting item in Adjusted EBITDA.
Research and development expenses
The Group's research and development expenditure is recognised as an expense
in the period as it is incurred, except for development costs that meet the
criteria for capitalisation as set out in IAS 38 (intangible assets).
Capitalised development costs principally comprise qualifying costs incurred
in developing the Group's core technology platform.
£million H1 25 H1 24 % Change
Research and development expenses 44.1 48.0 8.1%
Adjusting Items
Employers' social security taxes on pre-IPO share awards (0.1) 1.5
Adjusted R&D Expenses 44.0 49.5 11.1%
Amortisation of capitalised development costs (12.9) (10.2)
Capitalised development expenses 20.1 15.3
Total R&D Expenses and Capitalised development expenses 51.2 54.6 6.2%
The Group's adjusted research and development expenses reduced by £5.5
million to £44.0 million in H1 2025 (H1 2024: £49.5 million). This was
principally due to:
· The increase in capitalised development costs of £4.8 million to
£20.1 million costs as projects reached an advanced stage of development and
reflecting improvements and expansion to the suite of products offered. This
included £13.0 million of staff costs and £7.1 million of third-party costs.
· a £3.0 million reduction in materials costs and a £0.8 million
reduction in consultancy costs.
· This is partly offset by £2.7 million higher amortisation costs
to £12.9 million for the period, and a £0.7 million increase from
share-based payments and employers social security taxes on pre-IPO share
awards.
Overall investment in research and development was £51.2 million (H1 24:
£54.6 million); a decrease of £3.4 million.
Selling, general and administration costs
The Group's selling, general and administrative expenses increased by £16.6
million to £95.1 million.
H1 25 H1 24 % Change
Selling, general and administrative expenses 95.1 78.5 (21.1)%
Adjusting items:
Share based payments expense on Founder LTIP (2.0) (1.1)
Employers' social security taxes on pre-IPO share awards (0.3) 4.1
Restructuring Costs (4.2) -
Adjusted selling, general and administrative expenses 88.6 81.5 (8.7)%
On an adjusted basis, selling, general and administrative expenses increased
by £7.1 million in H1 2025 to £88.6 million (H1 2024: £81.5 million). The
main changes were:
· The total increase in the average headcount in selling, general
and administrative of 4.0%, this was primarily driven by our planned increase
in headcount in the commercial teams resulting in a £4.1 million increase in
payroll costs. Staff related costs were down £1.2 million. Other operating
expenses were down £3.3 million.
· An exchange loss of £4.1 million primarily reflecting the impact
of a weakening USD on our USD net monetary assets in GBP entities (H1 2024
credit of £0.4 million).
· Total share-based payment charge included in Selling, general and
administrative expenses increased by £2.5 million in H1 2025 to £7.3 million
compared to £4.8 million in H1 2024. The increase was primarily driven by an
increase in the Founder LTIP charge (to £2.0 million in H1 2025 from £1.1
million in H1 2024).
Adjusted EBITDA
£million H1 25 H1 24
Loss from operations (77.8) (77.0)
Depreciation and amortisation 22.9 19.8
Share based payments expense on Founder LTIP 2.0 1.1
Employers' social security taxes on pre-IPO share awards 0.4 (5.6)
Restructuring costs 4.2 -
Adjusted EBITDA (48.3) (61.7)
Adjusted EBITDA losses reduced to £(48.3) million in H1 2025 from £(61.7)
million in H1 2024. This was primarily driven by increased gross profits and
disciplined control of the cost base.
Balance sheet
£million H1 25 FY 24
Property, plant and equipment 64.4 66.3
Intangible assets 51.5 43.8
Right-of-use assets 33.5 34.9
Net deferred tax asset 2.0 2.6
Working capital 64.1 59.9
Other assets and liabilities 22.8 28.2
Provisions (8.1) (7.2)
Cash, cash equivalents and other liquid investments 337.3 403.8
Lease liabilities (44.1) (46.0)
Net assets 523.4 586.3
Key elements of change in the balance sheet during the period comprised the
following:
· The net book value of Property, plant and equipment was £64.4
million at 30 June 2025, a decrease of £1.9 million since 31 December 2024.
This has been driven primarily by a £1.5 million reduction in the net book
value of assets subject to operating leases to £33.2 million, from £34.7
million at 31 December 2024.
· Intangible assets of £51.5 million at 30 June 2025 has increased
by £7.7 million from £43.8 million at 31 December 2024 as a result of
additional projects having passed through the capitalisation criteria in the
period.
· Working capital at 30 June 2025 of £64.1 million predominately
reflects Inventory of £95.0 million (FY 2024: £99.5 million), trade and
other receivables of £64.8 million (FY 2024 £62.7 million) and trade and
other payables of £95.7 million (FY 2024 £102.3 million).
· Net decrease of £5.4 million in Other assets and liabilities is
primarily due to the a £3.3 million reduction in the R&D tax credit
recoverable and £1.5 million relating to unrealised fair value movements on
investment bonds.
Cash flow
· Cash, cash equivalents and other liquid investments were £337.3
million at 30 June 2025, a decrease of £66.5 million since 31 December 2024.
This was comprised of cash and cash equivalents of £194.1 million and
investment bonds less fair value gains of £143.2 million.
· There was a net outflow from operating activities of £48.4
million (H1 2024 £59.9 million). This outflow included:
o An increase in working capital of £11.7 million included £5.5 million
additions to assets subject to operating leases, a reduction from £14.4
million in H1 2024 as a result of increased adoption of capex purchases by
customers. Payables also decreased by £7.3 million, compared to an increase
of £12.5 million in H1 2024.
o Receipt of the R&D tax credit of £8.3 million (H1 2024: £4.9
million).
o H1 2025 cash payments of £5.2 million relating to redundancy and
associated costs of the targeted restructuring programme (expected to be a
total of £5.5 million in 2025).
· Net cash inflows from investing activities of £48.7 million (H1
2024: £4.3 million) included:
o The proceeds from sale of other financial assets of £67.0 million
(investment bonds).
o Interest received of £4.2 million.
Partly offset by:
o The purchase of property, plant & machinery of £2.4 million.
o The capitalisation of development costs of £20.1 million.
· Net cash outflows from financing activities of £3.4 million (H1
2024: £2.0 million) included:
o Lease and interest payments of £4.4 million.
Partially offset by:
o Proceeds from the issue of shares of £1.0 million.
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Note 6 months to 30 June 2025 6 months to 30 June 2024
£m £m
Revenue 4 105.6 84.1
Cost of sales (44.2) (34.6)
Gross profit 61.4 49.5
Research and development expenses (44.1) (48.0)
Selling, general and administrative expenses (95.1) (78.5)
Loss from operations (77.8) (77.0)
Finance income 6.3 7.7
Finance expense (1.4) (2.0)
Other gains and losses 9 3.9 (0.1)
Loss before tax (69.0) (71.4)
Taxation 7 (2.8) (3.3)
Loss for the period (71.8) (74.7)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Unrealised fair value gains on investment bonds 2.4 1.1
Reclassification to profit or loss on disposal of investment bonds 9 (3.9) -
Fair value movements on investment bonds (1.5) 1.1
Exchange losses arising on translation on foreign operations (0.3) (0.1)
Tax on items that may be reclassified subsequently to profit or loss 7 0.4 (0.3)
Other comprehensive (loss)/income for the period, net of tax (1.4) 0.7
Total comprehensive loss (73.2) (74.0)
6 months to 30 June 2025 6 months to 30 June 2024
Pence Pence
Loss per share 6 (7.5) (8.7)
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
Note 30 June 2025 31 December 2024
£m £m
Assets
Non-current assets
Property, plant and equipment 8 64.4 66.3
Right of use assets 33.5 34.9
Intangible assets 51.5 43.8
Deferred tax assets 7 2.0 2.6
Other financial assets 9 12.7 74.3
164.1 221.9
Current assets
Inventory 10 95.0 99.5
Trade and other receivables 64.8 62.7
Current tax assets 7 0.9 1.2
R&D tax credit recoverable 15.1 18.4
Other financial assets 9 137.7 138.8
Cash and cash equivalents 194.1 199.5
507.6 520.1
Total assets 671.7 742.0
Liabilities
Non‑current liabilities
Lease liabilities 38.3 40.6
Share-based payment liabilities 0.1 0.2
Provisions 11 3.9 3.4
42.3 44.2
Current liabilities
Trade and other payables 95.7 102.3
Current tax liabilities 7 0.3 -
Lease liabilities 5.8 5.4
Provisions 11 4.2 3.8
Total liabilities 106.0 111.5
Net assets
148.3 155.7
Net assets 523.4 586.3
Issued capital and reserves attributable to owners of the parent
Share capital 12 0.1 0.1
Share premium reserve 12 780.6 779.7
Share-based payment reserve 218.5 209.1
Translation reserve (0.9) (0.6)
Accumulated deficit (474.9) (402.0)
Total equity 523.4 586.3
The subsequent notes section forms an integral part of the condensed
consolidated interim financial information.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Share capital - see note 12 Share premium reserve - see note 12 Share-based payment reserve Translation reserve Accumulated deficit Total equity
£m £m £m £m £m £m
At 1 January 2024 0.1 698.6 203.1 (0.2) (257.7) 643.9
- - - - (74.7) (74.7)
Loss for the period
Other comprehensive (expense)/income - - - (0.1) 0.8 0.7
Comprehensive loss for the period to June 2024 - - - (0.1) (73.9) (74.0)
- 1.6 - - - 1.6
Issue of share capital
Employee share-based payments - - 7.2 - - 7.2
Tax in relation to share-based payments - - (0.1) - - (0.1)
Total contributions by owners - 1.6 7.1 - - 8.7
At 30 June 2024 0.1 700.2 210.2 (0.3) (331.6) 578.6
At 1 January 2025 0.1 779.7 209.1 (0.6) (402.0) 586.3
- - - - (71.8) (71.8)
Loss for the period
Other comprehensive expense - - - (0.3) (1.1) (1.4)
Comprehensive loss for the period to June 2025 - - - (0.3) (72.9) (73.2)
- 0.9 - - - 0.9
Issue of share capital
Employee share-based payments - - 9.2 - - 9.2
Tax in relation to share-based payments - - 0.2 - - 0.2
Total contributions by owners - 0.9 9.4 - - 10.3
At 30 June 2025 0.1 780.6 218.5 (0.9) (474.9) 523.4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS TO 30 JUNE 2025
Note 30 June 2025 30 June 2024
£m £m
Net cash outflow from operating activities 14 (48.4) (59.9)
Investing activities
Purchase of property, plant and equipment (2.4) (4.8)
Capitalisation of development costs (20.1) (15.3)
Interest received 4.2 5.1
Proceeds from sale of derivatives - 0.1
Proceeds from sale of other financial assets 67.0 19.2
Net cash inflow from investing activities 48.7 4.3
Financing activities
Proceeds from issues of shares 1.0 1.6
Costs of share issues - (0.2)
Principal elements of lease payments (2.9) (2.3)
Interest paid on leases (1.5) (1.1)
Net cash outflow from financing activities (3.4) (2.0)
Net decrease in cash and cash equivalents before foreign exchange (3.1) (57.6)
movements
Effect of foreign exchange rate movements (2.3) (0.9)
Cash and cash equivalents at beginning of period 199.5 220.5
Cash and cash equivalents at the end of period 14 194.1 162.0
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TO 30 JUNE 2025
1. General information
The condensed consolidated interim information for the period does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006.
The summary of results for the year ended 31 December 2024 is an extract from
the published Annual Report and Financial Statements which were approved by
the Board of Directors on 18 March 2025, which has been reported on by the
Group's auditors and delivered to the Registrar of Companies. The audit report
on the Annual Report and Financial Statements was unqualified, did not contain
an emphasis of matter paragraph and did not contain any statement under s498
(2) or (3) of the Companies Act 2006.
2. Significant Accounting Policies
2.1 Basis of preparation
The annual financial statements of Oxford Nanopore Technologies plc ("Oxford
Nanopore" or "the Company") are prepared in accordance with United Kingdom
adopted International Financial Reporting Standards. The condensed
consolidated set of financial statements included in this half yearly
financial report has been prepared in accordance with United Kingdom adopted
International Accounting Standard 34, "Interim Financial Reporting".
The condensed interim financial statements have been prepared in accordance
with the accounting policies set out in the Annual Report and Financial
Statements for the year ended 31 December 2024.
2.2 Going concern
As at 30 June 2025, the Group held £337.3 million in cash, cash equivalents
and other liquid investments, as set out in note 5.
In order to satisfy the going concern assumption, the Directors review the
performance of the Company against budget and forecast periodically,
reflecting evolving market conditions. Specifically for this condensed
consolidated interim information, the Directors have considered the budget and
forecast prepared through to the end of September 2026, the going concern
assessment period, and the impact of a range of severe, but plausible,
scenarios on revenue, profit and cash flow. The principal issues and risks
considered were:
• supply chain issues driven by demand, logistics
interruptions and heightened global geopolitical tension;
• the impact on revenue due to customer, regulatory and
research and development ("R&D") delays; and
• increased costs due to supply chain restrictions,
rising utilities costs, rising wages & salary costs, additional R&D
requirements and rising costs of component parts.
Under all scenarios, the Group had sufficient funds to maintain trading before
taking into account any mitigating actions that the Directors could take.
Accordingly, the Directors have a reasonable expectation that the Group has
adequate resources to continue in operation for the foreseeable future and at
least one year from the date of approval of this condensed consolidated
interim information. On the basis of these reviews, the Directors consider it
remains appropriate for the going concern basis to be adopted in preparing
this condensed consolidated interim information.
3. Critical accounting judgements and sources of
estimation uncertainty
In applying the Group's accounting policies, the Directors are required to
make judgements, estimates and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent from other sources. These
estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ
from these estimates.
Critical judgements in applying the Group's accounting policies
The following are the critical judgements and estimates that the Directors
have made in the process of applying the Group's accounting policies and that
have the most significant effect on the amounts recognised in the financial
information.
Judgements
i) Internally Generated Intangible Assets - research and
development expenditure ("R&D")
Critical judgements are required in determining whether development
expenditure meets the criteria for capitalisation of such costs as laid out in
IAS 38, "Intangible Assets," in particular whether any future economic benefit
will be derived from the costs and flow to the Group. The Directors believe
that the criteria for capitalisation as set out in IAS 38, paragraph 57, for
specific projects were met during the period and accordingly all amounts in
relation to the development phase of those projects have been capitalised as
an intangible asset. All other expenditure on R&D projects has been
recognised within Research and development expenses in the income statement
during the period.
Estimates
Key sources of estimation uncertainty
i) Inventory
The Group holds inventory across a number of locations for the purposes of
fulfilling sales orders and contractual obligations. Additionally, certain
components of inventory are held for use within research and development. Net
inventory at 30 June 2025 was £95.0 million (31 December 2024: £99.5
million). In line with the requirements of IAS 2, "Inventories", inventory is
stated at the lower of cost and net realisable value.
Management is required to make a number of estimates around the net realisable
value of inventory, which represents the estimated selling price less all
estimated costs of completion. In cases where the net realisable value is
below cost, management records a provision such that inventory is held at the
lower of cost and net realisable value.
To estimate the inventory provision, Management uses inputs based on the
location and status of inventory held by the Group. This includes the intended
use of the inventory, including whether it is expected to be sold or used for
research and development purposes.
Management makes assumptions around the net realisable value of each category
of inventory. These estimates are then applied to the inventory balance, based
on its cost, location and intended use, to record a provision in cases where
the net realisable value is below cost.
ii) Share-based payments
In June 2021, awards were granted to the Executive Directors of the Company
under the Oxford Nanopore Technologies Limited Long-Term Incentive Plan 2021
("Founder LTIP"). Half of the awards are subject to a non‑market revenue
performance condition which drives the number of awards expected to vest
depending on when certain revenue targets are met. At each reporting date,
management makes an estimate as to the extent by which the revenue condition
is to be achieved by the end of each future reporting period. This estimate is
based on revenue forecasts. Whilst management may make an estimate of the
future achievement of the annual revenue target on grant date, this estimate
might change in future periods. If actual sales were 10% less than forecast by
the end of the vesting period, the Group-recognised total expenses of £9.1
million relating to equity settled share-based payment transactions would
decrease by £5.1 million. If actual sales were 10% more than forecast by the
end of the vesting period, the Group-recognised total expenses of £9.1
million relating to equity settled share-based payment transactions would
increase by £2.0 million.
Other sources of estimation uncertainty
iii) Internally generated intangible assets - research and
development ("R&D")
Management consults with the relevant project leaders on a regular basis to
understand and estimate the time spent on R&D projects in their
development stage. When a percentage allocation has been agreed, this is then
applied to other, non-employee related development costs to ensure that costs
are consistently and appropriately capitalised. The net book value of
internally generated capitalised assets at 30 June 2025 was £49.5 million (31
December 2024: £41.8 million).
Development costs capitalised in the six months to 30 June 2025 amounted to
£20.1 million (six months to 30 June 2024: £15.3 million). If the estimated
time spent on these projects had varied by up to 5% then the development costs
capitalised in the first six months of 2025 would have been in the range of
£19.1 million to £21.1 million (six months to 30 June 2024: £14.5 million
to £16.1 million).
iv) Non-standard customer contracts
Revenue contracts for bundled goods and services require an allocation of the
total contract consideration to each distinct performance obligation. The
Group occasionally enters into larger bespoke agreements where stand-alone
selling prices are not directly observable. In such cases, management applies
estimation techniques using available market data, an expected cost-plus
estimate at an appropriate margin, or a residual method to determine the
allocation.
4. Segment information
Category
30 June 2025 30 June 2024
£m £m
Sale of goods 90.5 71.6
Rendering of services 9.9 8.1
Lease income 5.2 4.4
Total revenue from contracts with customers 105.6 84.1
The Group's senior management team is considered to be the Chief Operating
Decision Maker ("CODM") for the purposes of resource allocation and assessment
of segment performance, as defined under IFRS 8, "Operating Segments". The
CODM considers that the only Group reportable segment is revenue generation
from providing products and services for research use, including research and
development expenditure and corporate expenditure.
5. Alternative performance measures
The Group's performance is assessed using a number of financial measures which
are not defined under IFRS and therefore comprise alternative (non-GAAP)
performance measures. These are as follows:
Metric Definition Rationale
Revenue growth on a constant currency basis Revenue growth is calculated by adjusting current period revenue to prior Helps evaluate growth trends, establish budgets and assess operational
period foreign exchange rates and determining the percentage difference from performance.
the prior period revenue.
Exceptional costs Significant unusual, infrequent, or non-recurring costs that do not comprise Used in definitions below.
typical ongoing operating expenses that underpin long term value generation.
Adjusted research and development expenses Research and development expenses after adjusting for Exceptional costs. In This measure shows the underlying R&D expenditure by adjusting for one-off
the periods presented, this reflected adjustment for restructuring costs and exceptional costs.
share-based payments expenses relating to share awards dating from before the
Initial Public Offering ("IPO") in 2021, after adjusting for employer's social
security taxes on pre-IPO share awards.
Adjusted research and development and capitalised development costs Adjusted research and development costs (as defined above) adjusted for This measure shows the adjusted cash impact of R&D expenditure.
amortisation and amounts capitalised in the period.
Adjusted selling, general and administrative expenses Selling, general and administrative expenses after adjusting for Exceptional This shows the underlying selling, general and administrative expenses by
costs. In the periods presented, this reflected adjustment for restructuring removing the impact of one-off exceptional costs.
costs and share-based payments expense relating to pre-IPO share awards
(Founder LTIP), employer's social security taxes on Founder LTIP and pre-IPO
share awards expensed.
Adjusted EBITDA Loss from operations adding back depreciation and amortisation and after Adjusted EBITDA is used as a key profit measure because it shows the results
adjusting Exceptional costs. In the periods presented, this reflected of normal, core operations exclusive of income or charges that are not
restructuring costs and share-based payments expense relating to (Founder considered to represent the underlying operational performance and excludes
LTIP), employer's social security taxes on Founder LTIP and pre-IPO share one-off or intermittent exceptional items.
awards expensed.
Cash and cash equivalents and other liquid investments Total cash and cash equivalents, which comprise cash in hand, deposits held at Cash and cash equivalents and other liquid investments is a measure that shows
call and other short-term highly liquid investments with a maturity of three underlying liquidity reserves.
months or less at the date of acquisition. Other liquid investments comprise
investment bonds in which a fixed sum is invested in an asset-backed fund.
Gross profit % Gross profit divided by revenue. Helps evaluate profitability of core operations including cost management of
production and pricing strategy effectiveness.
The following table presents revenue growth on a constant currency basis:
30 June 2025 30 June 2024
£m £m
Revenue 105.6 84.1
Growth 25.6%
Impact of foreign exchange 2.0
Revenue on a constant currency basis 107.6
Growth 28.0%
The following table presents adjusted research and development expenses:
30 June 2025 30 June 2024
£m £m
Research and development expenses 44.1 48.0
Adjusting items:
Employer social security taxes on pre-IPO share awards (0.1) 1.5
Adjusted research and development expenses 44.0 49.5
Amortisation of capitalised development costs (12.9) (10.2)
Capitalised development costs 20.1 15.3
Adjusted R&D expenses and capitalised development costs 51.2 54.6
The following table presents adjusted selling, general and administrative
expenses:
30 June 2025 30 June 2024
£m £m
Selling, general and administrative expenses 95.1 78.5
Adjusting items:
Share-based payment expense on Founder Long Term Incentive Plan ("Founder (2.0) (1.1)
LTIP")
Employer social security taxes on Founder LTIP and pre-IPO share awards (0.3) 4.1
Adjusted selling, general and administrative expenses 92.8 81.5
Restructuring costs (4.2) -
Adjusted selling, general and administrative 88.6 81.5
expenses with restructuring costs
In Q1 2025, the Group announced and concluded a targeted restructuring
programme leading to a reduction in the overall workforce of approximately 5%,
spread evenly across R&D, Commercial and Corporate functions, alongside
other cost control measures of a similar size. An expense of £4.2 million was
incurred in the period in respect of this, with a full year total cash charge
of £5.5 million expected.
The following table presents the Group's Adjusted EBITDA, together with a
reconciliation to loss from operations for the period:
30 June 2025 30 June 2024
£m £m
Loss from operations (77.8) (77.0)
Depreciation and amortisation 22.9 19.8
Add back:
Share-based payments (Founder LTIP) 2.0 1.1
Employer social security taxes on Founder LTIP and pre-IPO share-based awards 0.4 (5.6)
Restructuring costs 4.2 -
Adjusted EBITDA (48.3) (61.7)
In order to reflect the core performance of the business, versus the
definition presented in the financial statements of the Group for the year
ended 31 December 2024, management has redefined Adjusted EBITDA to also
exclude the impacts of other gains and losses as well as results from the
associate. This is on the bases that neither of these items are included
within profit or loss from operations, they are outside the direct control of
management, and they relate to financing or investment activities. The results
to 30 June 2024 have been restated to reflect this. Adjusted EBITDA for the
six months to 30 June 2024 has been restated to a loss of £61.7 million
(previously a loss of £61.6 million when including the impact of the
associate).
The following table presents cash, cash equivalents and other liquid
investments:
30 June 2025 31 December 2024
£m £m
Cash and cash equivalents 194.1 199.5
Investment bonds 149.2 211.8
Less: fair value movements on investment bonds (6.0) (7.5)
Cash, cash equivalents and other liquid investments 337.3 403.8
6. Loss per share
30 June 2025 30 June 2024
Pence Pence
Basic and diluted loss per share (7.5) (8.7)
Total basic and diluted loss per share attributable to the ordinary equity
holders of the Group from continuing operations.
30 June 2025 30 June 2024
£m £m
Earnings figure used in calculating earnings per (71.8) (74.7)
share
Loss attributable to the ordinary equity holders of the Group used in
calculating basic and diluted loss per share from continuing
operations.
30 June 2025 30 June 2024
Number Number
Weighted average number of shares used as the 957,978,311 861,556,494
denominator
Weighted average number of ordinary shares and potential ordinary shares used
as the denominator in calculating basic and diluted earnings per
share.
Options
Options granted to employees under the Oxford Nanopore Technologies Share
Option Scheme and the Oxford Nanopore Technologies Limited Share Option Plan
2018 are considered to be potential ordinary shares. These options have not
been included in the determination of the basic and diluted loss per share as
shown above, because they are anti-dilutive for the periods ended 30 June 2025
and 30 June 2024. These options could potentially dilute basic earnings per
share in the future.
7. Taxation
i) Income tax recognised in profit or loss
30 June 2025 30 June 2024
£m £m
Current tax
Notional tax on R&D expenditure credit 1.1 1.5
Tax payable on foreign subsidiaries 0.6 0.4
Total current tax 1.7 1.9
Deferred tax
Prior period adjustment in respect of deferred tax 0.7 -
Origination and reversal of temporary differences 0.4 1.4
Total deferred tax 1.1 1.4
Total tax expense 2.8 3.3
Income tax recognised in OCI
Deferred tax on investment bonds (0.4) 0.3
Tax on items that may be reclassified subsequently to profit or loss (0.4) 0.3
Current tax balances have been calculated at the rates enacted for the period.
The effective rate of corporation tax is -4.21% (30 June 2024: -4.62%) of the
loss before tax for the Group.
ii) Current tax asset/(liability)
30 June 2025 31 December 2024
£m £m
Corporation tax asset 0.9 1.2
Corporation tax liability (0.3) -
0.6 1.2
iii) Recognised deferred tax balances
30 June 2025 31 December 2024
£m £m
Deferred tax assets
Provisions 2.1 1.7
Losses 14.1 12.8
Share awards (P&L) 1.8 2.4
Share awards (equity) 0.4 0.2
Other - 0.4
Total recognised deferred tax assets 18.4 17.5
Deferred tax liabilities
Accelerated capital allowances (2.7) (2.8)
Share awards (P&L) (0.2) (0.3)
Investment bond unrealised gain (1.5) (1.9)
Intangibles (12.0) (9.9)
Total recognised deferred tax liabilities (16.4) (14.9)
Net recognised deferred tax asset 2.0 2.6
Deferred tax balances have been recognised at the rate expected to apply when
the deferred tax attribute is forecast to be utilised based on substantively
enacted rates at the balance sheet date. The rate of UK corporation tax
increased to 25% from 1 April 2023. Taxation for other jurisdictions is
calculated at the rates prevailing in the respective territories. £1.8
million (31 December 2024: £2.4 million) of the recognised net deferred tax
asset relates to Oxford Nanopore Technologies, Inc., the US subsidiary, which
is profitable.
In respect of share‑based payments, to the extent that the tax deduction (or
estimated future tax deduction) exceeds the amount of the related cumulative
IFRS 2 expense, the excess of the associated current or deferred tax has been
recognised in equity and not in the consolidated statement of comprehensive
income. For current tax the impact on the charge to the consolidated statement
of comprehensive income is less than £0.1 million (31 December 2024: no
impact). For deferred tax this increases the credit to the consolidated
statement of comprehensive income by £0.2 million (31 December 2024: increase
of less than £0.1 million).
A deferred tax asset of £4.8 million (31 December 2024: £5.5 million) has
been recognised in relation to future share option exercises and other timing
differences in Oxford Nanopore Technologies, Inc. and other overseas
subsidiaries, because it is probable that the asset will be utilised in the
foreseeable future as a result of taxable profits forecast in future years.
8. Property, plant and equipment
During the period, the Group made additions of £9.2 million to property,
plant and equipment (six months ended 30 June 2024: £19.9 million). £5.5
million related to assets subject to operating leases, being devices leased to
customers (six months ended 30 June 2024: £14.4 million). The depreciation
charge for the period was £7.4 million (six months ended 30 June 2024: £6.7
million).
9. Other financial assets
30 June 2025 31 December 2024
£m £m
Investment bonds 149.2 211.8
Other financial assets 1.2 1.3
150.4 213.1
Current 137.7 138.8
Non-current 12.7 74.3
150.4 213.1
Under IFRS 9, "Financial Instruments", the investment bonds are classified as
financial assets at Fair Value through Other Comprehensive Income ("FVOCI").
In the period to 30 June 2025, a £3.9 million profit was realised on disposal
of investment bonds that was reclassified from Other Comprehensive Income to
the Consolidated Income Statement.
10. Inventory
30 June 2025 31 December 2024
£m £m
Raw materials 32.6 37.6
Work in progress 48.2 45.7
Finished goods 14.2 16.2
95.0 99.5
The carrying amount of inventory was not materially different from its
replacement cost.
11. Provisions
Dilapidation provisions Employer taxes Other Total
provisions
£m £m £m £m
Balance at 31 December 2024 2.4 4.7 0.1 7.2
Movements in provision for the period 0.1 1.0 0.4 1.5
Payments - (0.6) - (0.6)
Balance at 30 June 2025 2.5 5.1 0.5 8.1
Current - 3.7 0.5 4.2
Non-current 2.5 1.4 - 3.9
At 30 June 2025 2.5 5.1 0.5 8.1
Current - 3.7 0.1 3.8
Non-current 2.4 1.0 - 3.4
At 31 December 2024 2.4 4.7 0.1 7.2
The dilapidation provisions relate to the leased properties, representing an
obligation to restore the premises to their original condition at the time the
Group vacates the related properties. The provision is non-current and
expected to be utilised in between two and 20 years.
Employer social security taxes relate to the expected employer taxes on
share-based payments. This is expected to be utilised in between one and ten
years. The provision is based on the best estimate of the liability, which is
reviewed and updated at each reporting period. The provision is accrued over
the vesting period to build up to the required liability at the point it is
ultimately due.
12. Share capital and share premium
This comprised the following, all being ordinary shares of £0.0001 each:
Number of shares issued Share capital Share premium
No. £m £m
At 31 December 2024 955,039,240 0.1 779.7
Issued under employee share schemes 6,025,751 - 0.9
At 30 June 2025 961,064,991 0.1 780.6
All issued shares are fully paid and there are no shares authorised but not in
issue.
13. Share‑based payments
30 June 2025 30 June 2024
£m £m
Expense arising from share‑based payment transactions:
Included in research and development expenses 2.1 2.0
Included in selling, general and administrative expenses 7.3 4.8
9.4 6.8
14. Notes to the statement of cash flows
30 June 2025 30 June 2024
£m £m
Cash and cash equivalents 194.1 162.0
Cash and cash equivalents comprised cash held at banks. The carrying amount of
this asset was approximately equal to its fair value.
Adjustments reconciling loss before tax to net cash outflow from operating
activities:
30 June 2025 30 June 2024
£m £m
Loss before tax (69.0) (71.4)
Adjustments for:
Depreciation of property, plant and equipment 7.4 6.7
Depreciation of right-of-use assets 2.7 2.9
Amortisation of intangible assets 12.9 10.2
R&D expenditure credit (6.2) (6.1)
Loss on disposal of property, plant and equipment 2.0 6.2
Foreign exchange movements 3.4 0.3
Interest on leases 1.4 1.9
Interest income (6.3) (7.7)
Movement on investment bonds (3.7) -
Non‑cash movements on derivatives - 0.2
Losses relating to associated company - 0.2
Employee share benefit costs including employer's social security taxes 10.6 0.7
Operating cash flows before movements in working capital (44.8) (55.9)
(Increase)/decrease in receivables (1.7) 0.6
Increase in inventory and assets subject to operating leases (2.7) (21.5)
(Decrease)/increase in payables (7.3) 12.5
Cash used in operations (56.5) (64.3)
Income taxes - R&D expenditure credit received 8.3 4.9
Foreign tax paid (0.2) (0.5)
Net cash outflow from operating activities (48.4) (59.9)
15. Events after the reporting period
Following the completion of a competitive tender process in the period,
including the participation of multiple firms who had access to management and
data room materials, site visits and with a multi-stage structured evaluation,
the Board has approved the reappointment of Deloitte LLP as the Group's
statutory auditor. This decision is subject to shareholder approval at the
2026 AGM and coincides with the mandatory rotation of the audit partner. The
formal competitive tender process has been undertaken in accordance with the
Financial Reporting Council Minimum Standard and was overseen by the Audit and
Risk Committee.
Gordon Sanghera has notified the Board of his intention to step down as Chief
Executive Officer and from the Board by the end of 2026, after more than 20
years in the role. As part of a long-standing succession planning process, the
Board has now commenced a formal search for a successor to lead the Company
through its next phase of growth and commercialisation.
Oxford Nanopore has launched legal action against MGI Australia Pty Ltd. et
al. ("MGI"), for infringing four of the Company's Australian patents following
the announcement of the launch of its "Cyclone SEQ WT-02" in Australia. The
decision to commence legal proceedings against MGI has been carefully
considered and reflects the Company's responsibility to protect the
intellectual property that underpins its sensing platform, which is now widely
used across Research and Applied sectors in Australia.
1 (#_ednref1) Certain numerical figures included herein have been rounded.
Therefore, discrepancies between totals and the sums may occur due to such
rounding.
2 (#_ednref2) Constant currency (CC) applies the same rate to the H1 25 and
H1 24 non-GBP results based on H1 24 rates.
3 (#_ednref3) Adjusted EBITDA is a non-IFRS measure that may be considered
in addition to, but not as a substitute for, or superior to, information
presented in accordance with IFRS. Adjusted EBITDA is the EBITDA (Earnings
before Interest, Taxes, Depreciation and Amortisation) adjusted for i)
Share-based payment expense on founder LTIP ii) Employers' social security
taxes on pre-IPO awards, and iii) Restructuring costs. In order to reflect the
core performance of the business management has redefined Adjusted EBITDA to
also exclude the impacts of Other gains and losses as well as Results from
associates.
Adjusted EBITDA for the six months to 30 June 2024 has been restated to a loss
of £61.7 million (previously a £61.6 million loss) and H2 2024 to a loss of
£56.2 million (previously a loss of £54.5 million) - see note 5.
4 (#_ednref4) The PromethION product range includes all PromethION devices
(P2S, P2i, P24 and P48) and PromethION Flow Cells
5 (#_ednref5) The MinION product range includes all MinION and GridION
devices and MinION Flow Cells
6 (#_ednref6) Cash, cash equivalents and other liquid investments includes
cash and cash equivalents, and investment bonds
7 (#_ednref7) Cumulative publications as at 30 June 2025. Note: The
methodology for identifying and categorising publications has been
transitioned to a new system that provides greater consistency, broader
coverage and cost efficiencies, better supporting our ongoing needs. As a
result of this change the prior year numbers have been restated. At 31
December 2024, cumulative publications totalled more than 16,000.
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