REG - Oxford Nanopore Tech - Annual results for the year ended 31 December 2025
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RNS Number : 8911U Oxford Nanopore Technologies plc 02 March 2026
02 March 2026
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Oxford Nanopore Technologies plc
Annual results for the year ended 31 December 2025
· Strong 2025 performance, with broad based revenue growth
delivered across all regions, products and customer types and continued
progress towards profitability
· Reaffirmed commitment to reach adjusted EBITDA breakeven in FY27
and become cash flow positive in FY28
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 preliminary results for the year ended
31 December 2025.
Summary financial performance 1 (#_edn1)
£ million FY FY Change Change
Unless otherwise stated 2025 2024 reported CC 2 (#_edn2)
Revenue 223.9 183.2 22.2% 24.2%
Gross profit 131.3 105.4 24.6%
Gross margin 58.6% 57.5% 110bps
Adjusted Gross profit 3 (#_edn3) 133.1 105.4 26.3%
Adjusted Gross margin 59.4% 57.5% 190bps
Adjusted EBITDA 4 (#_edn4) (86.7) (117.9) +31.2
Loss for the period (145.2) (146.2) +1.0
The adjusted metrics presented are adjusted for i) Share-based payment expense
on founder LTIP ii) Employers' social security taxes on pre-IPO awards, and
iii) Restructuring costs. See footnotes for further detail.
Financial highlights
· Revenue of £223.9 million grew by 24.2% on a constant currency
("CC") basis, up 22.2% on a reported basis, slightly ahead of the top end of
FY25 guidance.
o Continued commercial momentum with constant currency revenue growth above
20% in each region. EMEAI, APAC and AMR were up by 26.3% CC, 23.2% CC and
22.2% CC respectively year-on-year.
o Growth was delivered across all customer end markets; revenue grew by
59.9% in Clinical, 30.4% in BioPharma, 27.2% in Applied Industrial and 15.1%
in Research.
o Revenue grew across all product categories, with fastest growth across the
PromethION product range 5 (#_edn5) up 43.1% year-on-year. The MinION product
range 6 (#_edn6) grew by 2.4% and Other revenue, which includes kits,
services and other devices, grew by 12.0%.
· Gross margin increased by 110 basis points (bps) to 58.6% (FY24:
57.5%). Underlying margin improvements (+460bps) were driven by adoption of
the new pricing model and margin improvements, particularly across PromethION
Flow Cells. These gains were partially offset by a one-off non-cash inventory
charge in H1 of £3.3 million (-150bps), mix (-130bps) and currency headwinds
(-70bps).
o Adjusting for the impact on margin of the restructuring charge related to
inventory write-downs in the year of £1.8 million (-80bps), adjusted gross
margin was 59.4%.
· Adjusted EBITDA loss of £(86.7) million (FY24: £(117.9)
million) with the year-on-year improvement driven by increased gross profits
and ongoing disciplined control of the cost base.
o H2 adjusted EBITDA loss of £(38.4) million was £9.9 million lower than
H1. This improvement in adjusted EBITDA loss is set to continue into 2026.
· Reported loss remained broadly stable at £(145.2) million (FY24:
£(146.2) million), demonstrating improved operational performance and cost
control, despite £22.6 million of restructuring costs incurred to realign
strategic focus.
· The Group remains well capitalised with £302.8 million in cash,
cash equivalents and other liquid investments 7 (#_edn7) as at 31 December
2025 (FY24: £403.8 million).
Operational and Strategic highlights
· Broad-based, growth across priority markets: Strong demand across
Research and Applied markets, with particularly rapid growth in Clinical,
BioPharma and Applied Industrial segments, reflecting increasing adoption
where Oxford Nanopore's richer, faster data delivers clear value over legacy
and alternative approaches. Growth was delivered across all geographies,
product types and customer segments, underlining the resilience and diversity
of the Group's revenue base.
o Research customers: Delivered large national and population-scale
programmes. In the period, the NIHR Bioresource, Genomics England's Cancer 2.0
and PRECISE projects scaled as expected and successfully completed,
demonstrating Oxford Nanopore's capability at delivering sequencing at scale.
The UK Biobank project also transitioned from pilot to production phase to
generate the first large-scale methylome dataset.
o Applied customers: Clinical growth was driven by broader adoption
in infectious disease, oncology and rare disease, demonstrating a mixture of
the key features and benefits of the technology, such as richer insights,
turnaround time and ability to de-batch. BioPharma customers expanded use of
the platform for quality control, while Industrial customers increased
adoption in synthetic biology workflows.
· Progress in clinical collaborations: Entered a new strategic
partnership with Cepheid, a subsidiary of Danaher, to develop and
commercialise automated infectious disease sequencing solutions. Progressed
collaboration with bioMérieux through the launch of AmPORE-TB, a
sequencing-based solution to rapidly characterise drug-resistant tuberculosis,
marking an important step in translating Oxford Nanopore technology into
routine infectious disease workflows.
· Clear improvement in technology performance, workflow maturity
and regulated readiness: Notable advances in throughput, cost efficiency and
robustness, particularly across the PromethION platform, alongside improved
basecalling, real-time methylation detection and simplified workflows,
strengthened the platform's suitability for broader adoption across research
and applied settings. Milestones in regulated product development, including
registration of the first IVD product, GridION Dx, and continued strengthening
of quality systems and operational processes, support deeper penetration of
clinical and regulated markets.
· Scientific validation underpinning commercial adoption: More than
4,000 peer-reviewed papers published in 2025 (~20,000 to date 8 (#_edn8) ),
demonstrating the utility of Oxford Nanopore unique benefits and traction in
scientific research, spanning cancer, human genetics and infectious disease,
reinforcing scientific leadership and supporting continued translation into
clinical and commercial settings.
· Operational discipline, scalability and redefined strategic
focus: During the year, management also took steps to sharpen its strategic
focus and redefine its operating model to prioritise the market opportunities
and applications that best leverage Oxford Nanopore's differentiated
technology and position the business for sustainable growth. These combined
actions resulted in a reduction in headcount through two restructuring events
in January and November 2025, aligned with a prioritisation of R&D
activities and the refinement of our product offerings to customers. These
actions simplify the portfolio, concentrate investment behind the most
compelling, high-priority opportunities and leave the Group better positioned
for the future. In addition, the Group expanded its manufacturing and
logistics capacity in 2025, introduced next-generation automated flow cell
lines and continued process optimisation to enhance scalability and product
stability.
· Litigation update: In the period, the Group launched patent
proceedings against MGI Australia Pty Ltd. et al. ("MGI"), in which MGI has
conceded that its "Cyclone SEQ WT02" infringes four of Oxford Nanopore's
Australian patents. A trial has been set for 2027 at which MGI's remaining
defences will be adjudicated. Separately, in the UK Oxford Nanopore has issued
proceedings in the High Court alleging trade secrets infringement, breach of
confidence and breach of contract against MGI/ BGI entities. Oxford Nanopore
remains confident on the value of its IP portfolio and will continue to
vehemently defend its IP position when it is in the best interest of
stakeholders.
· Leadership team evolution to support the next phase of growth:
Today, 2 March 2026, Francis Van Parys joins the Group as CEO and Executive
Director. Francis brings more than 20 years of experience leading
multi-billion-dollar life science businesses, with a strong track record of
scaling innovation-driven organisations through commercial and operational
excellence. Previously, Francis held senior leadership roles at Radiometer
(part of Danaher Corporation), Cytiva and GE Healthcare, driving sustained
growth and building high-performing teams across Europe, Asia, and North
America. Francis succeeds Gordon Sanghera, who has led Oxford Nanopore since
its inception in 2005. Gordon will step down from the Board at close of
business today, 2 March 2026, and will remain as an employee of the Group in
an advisory capacity through to early 2027 to ensure a smooth handover.
In addition, Tina St. Leger will join Oxford Nanopore as Chief People Officer
in Q2 2026. This newly created role reflects the Group's focus on
strengthening organisational capability to support the next phase of growth,
drawing on Tina's extensive global experience across pharma and biotech,
including senior leadership roles at Immunocore, GW Pharmaceuticals and GSK.
Outlook
FY26 guidance
The demand for Oxford Nanopore Technologies sensing platform remains strong
and we expect to continue to outperform versus underlying end market
growth in all regions.
· Revenue is expected to grow by 21-25% on a constant currency
basis.
o Regionally: growth is expected to be strongest in AMR, reflecting
continued progress in non-Research end-markets as we continue to navigate a
stabilising, but muted, NIH market; EMEAI is expected to grow strongly,
but below 2025 given the conclusion of a number of strategic projects in
the Research space and timing of new projects beginning. APAC demand for
ONT's products overall remains strong but factoring in the impact from the
conclusion of PRECISE II against the timing of new projects starting and
ongoing specific market challenges (particularly in China) could see our
growth rate moderate slightly from 2025 levels.
o The updated guidance also reflects a broader review of Oxford
Nanopore's product portfolio, including recent changes to the product range,
launch timelines (particularly Q-line variants) and expected contributions.
o By end market: growth will be being weighted towards the
Applied end markets (Clinical, BioPharma and Industrial).
· Gross margin is expected to be approximately 62%, driven by
continued operational improvements (flow cell recycling) and tailwinds from
the changes to the pricing model.
· Given the recent restructuring and continued focus on improving
efficiencies in the business, overall growth in adjusted operating costs is
expected to be 0-5%.
Medium term guidance update
The Group reaffirms its commitment to reach adjusted EBITDA breakeven in FY27
and become cash flow positive in FY28, reinforced by the recent restructuring
events of FY25. This will be driven by:
· Above market constant currency revenue growth in FY27, which
expected to be at a rate broadly similar to FY26.
· Ongoing improvements to gross margins in FY27 from FY26 levels.
· Continued focus on cost discipline, with multiple levers to
deliver significant operational leverage in both FY26 and FY27.
· Supported by a strong balance sheet and improving cash profile
with continued focus on working capital.
Dr Gordon Sanghera, Co-founder and outgoing Chief Executive Officer,
commented:
"I am pleased to report another year of strong performance for Oxford
Nanopore, with revenue growth of 24.2% at constant currency, slightly ahead of
the top end of our guidance, and continued progress towards profitability.
Leading Oxford Nanopore for more than two decades has been an extraordinary
privilege. From an idea that single-molecule sensing could be done
differently, we've built a company that created a new category of multi-omic
analysis, with a differentiated platform and expanding global customer base.
I'm confident Francis will build on these strong foundations of innovation and
growth to lead Oxford Nanopore into its next chapter."
Francis Van Parys, incoming Chief Executive Officer, commented:
"I'm excited to join Oxford Nanopore today at such an important stage in its
development. The company is delivering strong growth and making progress on
its path to profitability, underpinned by its differentiated sensing platform
and expanding global customer base. With a substantial market opportunity
ahead, I look forward to building on the strong foundations established under
Gordon's leadership, enhancing commercial and operational execution, and
driving innovation to deliver value for the company and for all our
stakeholders."
Presentation of results
Management will host an analyst presentation today, 2 March, at 10:45am GMT/
5:45am EST in London. A live webcast of the presentation will be available on
Oxford Nanopore's website at: https://nanoporetech.com/about/investors/reports
(https://nanoporetech.com/about/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-
This announcement contains inside information for the purposes of
the UK version of the market abuse regulation (EU no. 596/2014), which forms
part of English law by virtue of the European Union (Withdrawal) Act 2018. The
person responsible for arranging the release of this announcement on behalf of
the Company is Hannah Coote, Company Secretary of Oxford Nanopore Technologies
plc.
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
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.
Chair's Statement
During the year, Oxford Nanopore continued to deliver strong operational and
commercial progress while also preparing for an important leadership
transition. Against a backdrop of ongoing sector uncertainty, the Board
remained focused on disciplined execution, effective oversight and long-term
value creation.
2025 performance and execution
Oxford Nanopore delivered another year of strong performance in 2025, with
24.2% revenue growth at constant currency, reflecting sustained commercial
momentum and the increasing relevance of our technology across a broader range
of applications. I am particularly encouraged by the continued progress in our
priority applied end markets, where demand for richer biological insight,
delivered faster and more accessibly, continues to drive adoption.
Growth across these Clinical, BioPharma and Applied Industrial markets
demonstrates the strength of our strategy to diversify beyond research and
build a more resilient and scalable business over the medium to long term.
This progress has been underpinned by the expanding installed base and
increasing utilisation of our PromethION platform, and adoption of the revised
pricing model.
Alongside this, the Board continues to recognise the importance of enabling
leading-edge science, including across our distributed and research user base,
which often creates cutting edge science using the nanopore platform, which
remains fundamental to the growth of Oxford Nanopore.
Alongside revenue growth, the Group continued to make tangible progress
towards profitability. Cost discipline improved further during the year and
operating leverage increased as the business scaled, resulting in a notable
(+£31.2 million) improvement in adjusted EBITDA loss for the year. The Board
continues to expect that the Group will achieve adjusted EBITDA breakeven in
2027 and cash flow positive in 2028.
Throughout the year, the Board maintained close oversight of performance and
risk, while supporting management in executing the Group's strategy.
Strategy refinement and priorities
During 2025 management completed a strategic planning review to ensure the
Group is prioritising the market opportunities and applications that best
leverage Oxford Nanopore's differentiated technology and support sustainable
long-term growth. This work was led by the executive leadership team and
incorporated a broad range of internal and external perspectives, with the
Board providing oversight and support throughout the process.
The review has sharpened focus across innovation, commercial execution and
operational excellence, strengthening execution discipline and capital
allocation as the business continues to scale. As we transition into 2026, the
Group is executing on the outcomes of this review in close collaboration with
the Board. Given the timing of the Chief Executive Officer transition, the
Board considers it appropriate that the next phase of strategic planning and
articulation is completed with the incoming CEO fully in role. Further detail
is provided in the Strategy section of this report.
Leadership succession and continuity
Succession planning is a core responsibility of the Board and remains a
standing agenda item for the Nomination Committee. In August 2025, Gordon
Sanghera notified the Board of his intention to step down as Chief Executive
Officer and from the Board by the end of 2026, following more than two decades
of exceptional leadership.
Two decades ago, Gordon co-founded Oxford Nanopore with the bold ambition to
transform molecular analysis. Under his leadership, the Company has grown into
a global business, built a highly differentiated technology platform and
fostered a culture of innovation and collaboration that underpins its success.
These foundations have supported sustained, above-market growth and position
Oxford Nanopore well for the future. On behalf of the Board, I would like to
thank Gordon for his visionary leadership, commitment, and contribution over
the last 20 years.
Following a comprehensive global search, supported by an independent search
firm Egon Zehnder, we announced in December 2025 the appointment of Francis
Van Parys as Chief Executive Officer, effective from March 2026. Francis
brings extensive commercial experience in scaling innovation-driven life
sciences businesses and we believe that he has the capabilities required to
lead Oxford Nanopore through its next phase of growth.
To ensure stability and continuity, Gordon will continue to support the
Company in an advisory capacity through to early 2027. The Board believes this
structured transition best serves the interests of employees, customers,
partners, and shareholders.
In addition, Tina St Leger will join Oxford Nanopore as Chief People Officer
in Q2 2026. This newly created role reflects the Group's focus on
strengthening organisational capability to support the next phase of growth,
drawing on Tina's extensive global experience across pharma and biotech,
including senior leadership roles at Immunocore, GW Pharmaceuticals and GSK.
Shareholder engagement
The Board and management actively engaged with shareholders throughout the
year. Following the 2025 AGM, the Group undertook further engagement with
major shareholders in line with the UK Corporate Governance Code to understand
feedback relating to voting outcomes.
Feedback received was consistent with the Board's focus on maximising Oxford
Nanopore's long-term potential, executing on the next phase of its commercial
strategy and focusing resources where it can create the greatest long-term
value for stakeholders.
In addition, I met with a number of shareholders early in 2026 as part of the
Board's ongoing programme of regular shareholder engagement. These discussions
reinforced the Board's focus on disciplined execution, leadership stability,
and delivery of the Company's medium-term milestones.
Remuneration and alignment with performance
Executive remuneration remains closely aligned with performance, strategy
delivery, and long-term shareholder value. Arrangements relating to the CEO
transition were considered carefully by the Remuneration Committee, with
regard to market practice, shareholder expectations and the importance of
ensuring continuity and stability.
Board composition and diversity
As at 31 December 2025, women represented 33.3% of the Board. While we have
not yet met our target of 40% female representation, diversity remains an
important priority for the Board. During the year, the Board's focus was on
CEO succession and maintaining stability following a recent period of Board
evolution and refresh. We will continue to focus on Board diversity, including
gender and ethnic diversity, through future Non-Executive Director
appointments, alongside skills, experience and independence.
Sustainability and stakeholders
The Board continued to have regard to its duties under section 172 of the
Companies Act 2006 throughout the year, balancing the interests of
shareholders with those of employees, customers, partners, suppliers and wider
society.
Reflecting our approach to governance and the management of financially
material environmental, social and governance risks, the Company is currently
rated AAA by MSCI ESG Ratings, the highest rating awarded within its sector.
Looking ahead
With a well-managed leadership transition underway, refined strategic planning
processes and continued focus on disciplined execution, the Board believes the
Group is well positioned to deliver sustainable value for shareholders and
wider stakeholders.
Finally, I would like to thank our employees, customers, partners and
shareholders for their continued support during a year of both progress and
transition.
Duncan Tatton-Brown, Chair
CEO review
Over the past twenty years as CEO, I have been proud to build a technology
that serves broad communities, from life science researchers to clinicians,
industrial scientists, and biopharma innovators. Over this time, I've watched
expectations shift, disruptive technologies take hold, and entire markets
transform, and the common thread has been the world's drive for richer,
faster, and more accessible biological insight.
We began with a bold idea, that electronic, single molecule sensing could
analyse native DNA and RNA, and, increasingly, other molecules, in real time,
anywhere. Today, our platform is used by customers in more than 125 countries,
contributing to tens of thousands 1 (#_ftn1) of scientific publications and
powering an ever-expanding range of biological investigations.
Demand for our technology continues to significantly broaden and deepen,
whether we are enabling users to see richer sequencing data, more quickly, or
often in areas where traditional approaches such as culture, microscopy, or
legacy sequencing leave critical gaps.
2025 performance
I am pleased to report that 2025 was another strong year for Oxford Nanopore.
We have delivered robust, broad based revenue growth of 24.2% at constant
currency, slightly ahead of the top end of our FY25 guidance.
Revenue in 2025 was broad-based across a diverse group of customer types
including Research, BioPharma, Clinical and Applied Industrial customers,
accounting for 67%, 8%, 13% and 12% of revenue respectively. We continue to
see strong growth in emerging end markets, such as Clinical (up 59.9%),
BioPharma (up 30.4%) and Applied Industrial (up 27.2%), which represent a
significant opportunity for the Group in the medium to long-term. Research, in
spite of National Institute of Health (NIH) headwinds in AMR, grew by 15.1%.
On a geographical basis, the Group delivered strong broad-based growth across
all regions. AMR revenue grew 18.7% to £74.9 million (2024: £63.2 million)
driven primarily by growth in the US. While there was ongoing uncertainty in
the US Research environment, revenue growth was underpinned by increasing
demand in the Clinical markets.
APAC revenue grew 20.2% to £48.6 million in 2025 (2024: £40.4 million)
driven by a large population genomics programme in Singapore, and increased
revenue in Japan and China, which grew 15.2%.
EMEAI revenue grew 26.1% to £100.4 million (2024: £79.6 million) driven by
growth in the UK and Europe. Growth was delivered across all end markets,
particularly in Clinical and Research.
We also continued to make progress toward profitability during the period
through disciplined cost control and margin enhancing initiatives including
implementation of our new pricing model, increased recycling and automation.
Adjusted EBITDA improved by £31.2 million in the period to £(86.7) million.
Why demand is growing
In what has been a challenging year across the life sciences sector, Oxford
Nanopore continued to grow ahead of the market. Our confidence in sustaining
above market performance is grounded in a clear trend that across research and
applied domains, customers increasingly need richer biological information,
delivered faster, and through more accessible technologies.
Our campaign puts it simply: What You're Missing Matters. If you're not
characterising native DNA and RNA of any length, you're missing biology that
could have scientific importance, or change a decision. And the shift ahead is
multi-omic. Today we connect native DNA and RNA; in the future this has the
potential to include proteomics to further expand the discovery surface for
drug development, diagnostics, and monitoring.
A sharpened commercial strategy
In 2025, we refined our commercial strategy based on deep characterisation of
the markets where our platform delivers the strongest value. While the total
addressable market across sequencing and broader molecular analyses exceeds
$150 billion 2 (#_ftn2) , we have identified a serviceable addressable market
of $20-25 billion across clinical, research, biomanufacturing QC, and
specialised domains.
Within this, we have prioritised $13-14 billion of high value segments, where
our differentiation, comprehensive molecular data, rapid turnaround, and
accessibility, creates meaningful competitive advantage. Our commercial focus
is now firmly aligned to executing into these segments, with a refined product
portfolio, to maximise long-term growth and value.
Scaling for impact
The foundation is set with a breakthrough platform a strong operational base,
and a diverse customer community. Now, our focus is on scaling and delivering
value at a magnitude that transforms how biology is understood and applied.
2025 was a year of consolidation and acceleration. Research and development
closed critical performance gaps, we made continued progress towards material
throughput improvements with the potential of lowering cost per GB of data for
certain markets, and laid strong foundations for future multi-omics expansion.
These advances position Oxford Nanopore for sustained growth and long‑term
platform leadership, benefitting research users and enabling deeper
penetration of clinical, biopharma and applied markets.
We are enabling customers to generate comprehensive genomes and methylomes,
run metagenomic or targeted analyses, and generate fast, accessible data, from
single bench labs through to national precision medicine programmes.
Technology maturation
Our innovation engine continues to strengthen the platform, delivering gains
in performance, reliability and ease of use. As previously noted, increasing
output per PromethION flow cell remains a major focus. The MinION Mk1D,
introduced in late 2024, reflects a decade of steady improvement. With
upgraded temperature control and enhanced durability, it supports sequencing
across a wide range of environments, while continued chemistry and software
refinements have driven step‑changes in yield and accuracy. GridION Q
advanced our Q‑Line strategy by offering a stable, quality‑managed
platform with controlled upgrade cycles, reducing revalidation demands and
supporting longer-lived applied and regulated workflows. As part of this
strategy, we are progressing a second‑generation GridION Q (V2) to ensure
the platform includes the features and performance necessary for routine
applied use.
Applied-market readiness
In parallel with platform maturation, we continued to build the workflow,
quality and regulatory foundations needed for applied and clinical settings.
During 2025, we advanced next‑generation biopharmaceutical quality‑control
solutions on the GridION Q platform. This included transitioning from the
first-generation version to the V2 system, which incorporates the additional
functionality required to better support GMP workflows, reflecting our
commitment to continuous improvement and to meeting the expectations of
regulated users. We also registered our first IVD product, GridION Dx, which
has now achieved CE and UKCA marking. GridION Dx will initially be deployed
through selected partnerships, with the first application focused on
infectious disease characterisation. The platform's ability to deliver rich
genomic insights rapidly, in an accessible and affordable format, underpins
its potential to shape future clinical workflows and to expand into areas such
as oncology and genetic conditions. The first product, available in
partnership with bioMérieux, will integrate with AmPORE-TB, a
multidrug-resistant tuberculosis assay, and underscores this strategic
approach.
Collaborations
Collaborations remain a core pillar of our strategy. They enable us to reach
new customer communities, accelerate product development, and embed our
technology into established workflows. This approach underpins our progress
across all major end‑markets, driving broader adoption and real‑world
impact. Today, Oxford Nanopore technology is used in thousands of laboratories
across more than 125 countries, with utilisation continuing to rise.
Research and discovery
In the $8-10 billion research market, our platform has been referenced in
approximately 20,000 peer‑reviewed publications spanning human genomics,
oncology, infectious disease, environmental science and beyond. Large‑scale
programmes such as UK Biobank's 50,000‑sample methylation project and
Singapore's PRECISE initiative illustrate how partners are deploying our
technology to explore new biomarkers at population scale.
Healthcare and clinical applications
In healthcare, partnerships are central to expanding clinical utility. The NHS
is progressing towards a nationally commissioned metagenomics service built on
Oxford Nanopore sequencing. We are also working with Bio‑Techne in carrier
screening and with Cepheid in infectious disease applications, while our
strategic collaboration with bioMérieux is enabling the development of
regulated products such as the AmPORE‑TB assay for multidrug‑resistant
tuberculosis, which will be deployed on the GridION Dx.
Biopharma, industrial and applied markets
Across biopharma and industrial settings, customers are beginning to
consolidate multiple legacy assays into a single sequencing‑based workflow.
Our collaborations in quality control are helping to deliver faster, more
informative insights for GMP and applied environments.
Across these markets, we are cultivating an ecosystem in collaboration with
partners, integrating automation, validated workflows and real‑time
analytics, to make sequencing easier to adopt and more impactful at scale.
This ecosystem approach ensures that our technology is complemented by
specialised expertise across each application area, rather than developed in
isolation.
Outlook
As you may know, I officially stepped down as CEO on 2 March 2026, after more
than two decades leading Oxford Nanopore. It has been the privilege of my
professional life to help build this Company from a bold scientific idea into
a global platform shaping how biological information is generated and used.
I'm delighted that Francis Van Parys has joined to lead Oxford Nanopore into
its next chapter. Francis brings extensive leadership experience, having most
recently served as CEO of Radiometer, a Danaher company, and previously held
leadership roles at GE Healthcare and other life sciences companies. He brings
a wealth of experience scaling innovation driven life science businesses, deep
expertise in our priority end markets, clinical, biopharma, and industrial,
and a proven track record of accelerating adoption in highly regulated,
high-impact environments. I am confident that his leadership will enable
Oxford Nanopore to penetrate these markets faster, expand globally, and
continue driving innovation at speed.
The foundations he inherits are strong: a differentiated technology platform,
maturing manufacturing capabilities, a global team of exceptional talent and a
growing user base for the technology. Francis already shares something
important with our team, a deep belief in solving customer problems through
transformative technology. With that alignment, the future is in excellent
hands.
As I look ahead, I'm convinced that the next decade of biological insight will
be defined by richer biology at scale, from comprehensive genomes and
methylomes to advanced multi-omic and molecular analyses that reshape
healthcare, biopharma, and industrial decision making. Oxford Nanopore is
built for that future.
Thank you for your continued support.
Dr. Gordon Sanghera, CBE
Chief Executive Officer (2005 -2 March 2026)
Financial review
2025 performance
The Group delivered revenue of £223.9 million (2024: £183.2 million), an
increase of 24.2% year-on-year on a constant currency basis and 22.2% on a
reported basis, including foreign exchange headwinds.
The Group delivered strong growth across its diverse customer base. The strong
momentum across the Applied Markets reflects the continuing progress we've
made in expanding our presence and unlocking new opportunities. Revenue grew
by 59.9% in Clinical, 30.4% in BioPharma and 27.2% in Applied Industrial.
Research also performed well, with revenue up 15.1%.
Regionally, performance was led by EMEAI, with revenues increasing 26.3% on a
constant currency basis with strong double-digit growth across each end-market
and weighted towards Clinical.
APAC revenues grew 23.2% CC, with revenue growth weighted to BioPharma and
Applied end-market customers alongside the PRECISE contract which has now
ended. This growth was delivered in spite of export control restrictions to
China impacting top line growth in the region.
Despite continued funding pressures in the US Research environment, revenue in
AMR grew 22.2% CC. This growth was driven by strong demand across all applied
markets, with Clinical growth of circa 86% and 7% growth across Research
end-market customers.
Growth was delivered across all product types, led by the PromethION range,
which grew by 43.1% year-on-year on a reported basis. This growth was driven
by increasing flow cell utilisation across larger platforms (+25%), alongside
an increasing number of active devices. The MinION range returned to growth,
with revenues up 2.4% year-on-year on a reported basis, supported by changes
in the pricing model. Whilst the adoption of the GridION Q-Line range has been
slower than first anticipated, the launch of an updated product variant with
increased features is anticipated to support the next phase of growth across
the MinION segment.
Gross profit increased to £131.3 million (2024: £105.4 million) in the year
up 24.6% on 2024. Gross margin increased by 110 basis points ("bps") to 58.6%
(2024: 57.5%) driven by margin improvements (up 460bps), particularly across
both PromethION Flow Cell and devices, offsetting product mix (down 130bps),
the one-off non-cash inventory charge in H1 of £3.3 million (down 150bps),
and currency headwinds (down 70bps). A one-off restructuring charge of £1.8
million was taken in H2 relating to the strategic realignment and this
impacted margin by -80bps. Absent the impact of the strategic realignment
exercise the gross margin was 59.4% and 60.9% excluding the one-off non-cash
inventory charge.
During the year, the Group undertook restructuring actions in both H1 and H2
to address cost efficiency and refine its strategic priorities. These actions
resulted in total restructuring and associated costs of £22.6 million and
included a reduction in headcount, a refocusing of R&D activity, and the
refinement of some product offerings. While these decisions had a short-term
financial impact, they simplify the portfolio, concentrate investment behind
the most compelling opportunities, and leave the Group better positioned for
the future. As a result of the strategic realignment exercise, the Group has
ended active sales of the ElysION platform and will focus efforts on enabling
compatibility of customer-selected automation. In addition, the Group will
discontinue active sales of the P2 Solo as of the end of June 2026 and
prioritise efforts behind its P2i product. Across R&D and as part of the
strategic realignment exercise, the Group has also focused resources on
opportunities aligned to the high priority end-market segments.
The restructuring costs in 2025 were as follows:
Restructuring Costs R&D Expenses SG&A Expenses Total Adjusting Item
£m
£m £m Gross Margin
£m
Operating expenses 8.1 10.9 - 19.0
Provision in cost of sales - - 1.8 1.8
Total adjusting item (Loss from Operations) 8.1 10.9 1.8 20.8
Impairment in other gains and Losses 1.8 - - 1.8
Total Restructuring Costs 9.9 10.9 1.8 22.6
Adjusted operating costs were up 1.0% 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. Further opportunities have
been identified to improve efficiencies over the coming years to ensure
continued operational leverage.
The Group reported an adjusted EBITDA loss of £(86.7) million (2024:
£(117.9) 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.
Group operating loss increased to £(155.3) million (2024: £(152.3) million),
reflecting the increase in revenue and gross profit offset by restructuring
costs of £20.8 million.
The reduction in reported loss year-on-year to £(145.2) million (2024:
£(146.2) million) was predominately driven by higher gross profits and gains
on investment bonds, partly offset by increased operational expenses which
included £22.6 million of adjusting items related to the H1 restructuring and
H2 strategic realignment.
During 2025, we continued to invest in research and development to drive both
continuous improvement in the performance and usability of our technology, and
to deliver new products and technologies that address a broader range of
applications and users' needs. Given the advanced stage of development of our
product portfolio the annual amount capitalised has increased by £6.8 million
to £41.5 million (2024: £34.7 million).
The Group remains well capitalised with £302.8 million in cash, cash
equivalents and other liquid investments as at 31 December 2025 (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 £10.1 million in 2025 from £20.6 million in 2024.
Alternative performance measures
The Group has identified Alternative Performance Measures ("APM"s) that it
believes provide additional useful information on the performance of the
Group. These APMs are not defined within International Financial Reporting
Standards ("IFRS") and are not considered to be a substitute for,
or superior to, IFRS measures. These APMs may not be necessarily comparable
to similarly titled measures used by other companies. All adjusted measures
are reconciled to the most directly comparable measure prepared in accordance
with IFRS in note 21 to the consolidated financial statements.
Directors and management use these APMs alongside IFRS measures when budgeting
and planning, and when reviewing business performance and remuneration.
Results at a glance
Year ended 31 December: FY25 FY24 Change
£m £m reported
Total revenue 223.9 183.2 22.2%
Gross profit 131.3 105.4 24.6%
Gross margin (%) 58.6% 57.5% +110bps
Adjusted gross profit(1) 133.1 105.4 26.3%
Adjusted gross margin (%)(1) 59.4% 57.5% +190bps
Operating loss (155.3) (152.3) (2.0)%
Adjusted EBITDA(1) (86.7) (117.9) +31.2
Loss for the year (145.2) (146.2) +1.0
Cash, cash equivalents and other liquid investments(1) 302.8 403.8 (25.0)%
(1) based on Alternative Performance Measures (see note 21).
Revenue by product range
Growth has been strongest across the PromethION product range, primarily
driven by increasing customer flow cell utilisation. Revenue from the
PromethION product range, representing all associated devices and flow cell
sales, grew 43.1% to £110.6 million in 2025 (2024: £77.3 million). The
increase was driven by strong growth across both PromethION Flow Cell and
device revenues and was supported by increased demand from customers across
all end-markets with the PromethION platform well suited to a broad range of
the higher priority target segments.
The utilisation rate (the average number of flow cells run on active devices
in the year) for PromethION devices was up 25% in 2025 compared to 2024 for
our larger devices. Excluding the impact of the Emirati Genome Program (EGP),
utilisation was up 35%.
Revenues from the MinION product range, representing all sales of MinION Flow
Cells and devices that run MinION Flow Cells (including GridION and MinION)
increased 2.4% to £56.3 million in 2025 (2024: £55.0 million) with growth
supported by adoption of the new pricing model.
Other revenues, representing kits, services revenues and other devices grew
12.0% to £57.0 million (2024: £50.9 million).
FY25 FY24 Change %
actual
£m £m
PromethION product range 110.6 77.3 43.1%
MinION product range 56.3 55.0 2.4%
Other 57.0 50.9 12.0%
Total revenue 223.9 183.2 22.2%
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.
The Group delivered strong broad-based growth across all regions. EMEAI
revenue grew 26.1% to £100.4 million (2024: £79.6 million) driven by growth
in the UK and Europe. Growth was delivered across all end markets with strong
growth delivered in both Clinical and Research end markets. On a constant
currency basis growth in EMEAI was 26.3%.
AMR revenue grew 18.7% to £74.9 million (2024: £63.2 million) driven
primarily by growth in the US. This growth was delivered despite continued
funding pressures in the US Research environment, with revenue growth in AMR
at 22.2% CC. This growth was driven by strong demand across all applied
markets, with Clinical growth of circa 86% and 7% growth across Research
end-market customers.
APAC revenue grew 20.2% to £48.6 million in 2025 (2024: £40.4 million)
driven by a large population genomics programme in Singapore, and increased
revenue in Japan and China, which grew by 15.2%. China now accounts for 9.6%
of Group revenue. Strong growth was delivered in the Applied Industrial and
BioPharma end markets during the year. On a constant currency basis growth in
APAC was 23.2%.
Revenue by region
FY25 FY24 Change % Change CC
£m £m
EMEAI 100.4 79.6 26.1% 26.3%
AMR 74.9 63.2 18.7% 22.2%
APAC 48.6 40.4 20.2% 23.2%
Total revenue 223.9 183.2 22.2% 24.2%
Revenue by customer type
FY25 FY24 Change %
£m £m
Research 148.6 129.1 15.1%
Clinical 29.8 18.6 59.9%
Applied Industrial 27.5 21.6 27.2%
BioPharma 18.1 13.9 30.4%
Total revenue 223.9 183.2 22.2%
Our 2025 revenues by customer end market (i.e. the end market of the customer
or company buying our products) were as follows:
· 66.4% 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 £148.6
million is 15.1% above 2024 of £129.1 million.
· 13.3% from Clinical customers where data may have diagnostic,
prognostic or therapeutic value. Revenue of £29.8 million is 59.9% above 2024
of £18.6 million.
· 12.3% from Applied Industrial customers, who are utilising
sequencing for application in industrial or service settings e.g. outsourced
Synthetic Biology. Revenue of £27.5 million is 27.2% above 2024 of £21.6
million.
· 8.1% from BioPharma customers funded to develop, make, and sell
pharmaceuticals. Revenue of £18.1 million is 30.4% above 2024 of £13.9
million.
Gross margin
Year ended 31 December FY25 FY24 Change
Gross margin (%) 58.6% 57.5% +110bps
Adjusted gross margin (%) 59.4% 57.5% +190bps
Gross margin increased by 110 basis points ("bps") to 58.6% (2024: 57.5%)
driven by margin improvements (up 460bps), particularly across both PromethION
Flow Cell and devices, offsetting product mix (down 130bps), the one-off
non-cash inventory charge in H1 of £3.3 million (down 150bps), and currency
headwinds (down 70bps).
A one-off restructuring charge related to inventory write-downs of £1.8
million was taken in H2 as a result of the strategic realignment activity to
refocus our R&D activity and refine our product offerings. This impacted
margin by -80bps and as such adjusted gross margin was 59.4%.
We remain committed to continual margin improvement across all products and
will continue to invest in manufacturing innovation, to deliver this goal.
Impact of headcount
Average headcount (FTEs) FY25 FY24 Change
%
Research and development 504 512 (1.6)%
Production 176 158 11.4%
Selling, general & administration 655 645 1.6%
Total 1,335 1,315 1.5%
In 2025, the average number of employees increased by 1.5%. This was
predominantly across production teams which increased by 11.4% to cater for
increased demand from a growing client base.
The Group's average headcount in the selling, general and administration
functions increased by 1.6% largely from expansion of the commercial teams in
key geographic regions supports the Group's global business growth objectives.
Partly offsetting these increases, during the year, the Group undertook
restructuring actions in both H1 and H2 to address cost efficiency and refine
its strategic priorities. As a result of these restructuring actions 138
employees left the business during the year.
Research and development expenses
The Group's research and development expenditure is recognised as an expense
in the year 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.
FY25 FY24 Change %
£m £m
Research and development expenses 97.7 98.9 1.2%
Adjusting items:
Employer's social security taxes on pre-IPO share awards (0.2) 0.5
Restructuring costs (8.1) -
Adjusted R&D expenses 89.4 99.4 10.1%
Amortisation of capitalised (28.7) (23.7)
development costs
Capitalised development costs 41.5 34.7
Total R&D expenses and capitalised development costs 102.2 110.4 7.4%
The Group's adjusted research and development expenses reduced by £10.0
million to £89.4 million in 2025 (2024: £99.4 million). This was principally
due to:
· a 19.6% increase in annual capitalised development costs to
£41.5 million. This included £25.9 million of staff costs and £15.6 million
of third-party costs. This was partly offset by a £5.0 million increase in
amortisation costs to £28.7 million for the year. The increase in capitalised
development costs reflects projects reaching an advanced stage of development
and reflecting improvements and expansion to the suite of products offered.
· a 1.6% decrease in average headcount leading to a £1.6 million
reduction in payroll costs.
· a £5.3 million reduction in materials costs and a £3.1 million
decrease in consultancy costs, partly offset by a £2.3 million increase
relating to share-based payments and associated costs.
Overall investment in research and development was £102.2 million (2024:
£110.4 million); a reduction of £8.2 million.
Selling, general and administration expenses
FY25 FY24 Change %
£m £m
Selling, general and administration expenses 188.9 158.8
(19.0)%
Adjusting items:
Share-based payment expense on Founder Long Term Incentive Plan (LTIP) (0.2) 6.1
Employer's social security taxes on Founder LTIP and pre-IPO share awards 2.0 2.3
Restructuring costs (10.9)
Adjusted selling, general and administration expenses 179.8 167.2
(7.5)%
The Group's selling, general and administrative expenses increased by £30.1
million to £188.9 million in 2025 (2024: £158.8 million) mainly due to
restructuring costs, foreign exchange losses and higher share-based payments.
On an adjusted basis selling, general and administrative expenses in 2025
increased by £12.6 million to £179.8 million (2024: £167.2 million).
The main changes to adjusted expenses were:
· An increase in staff related costs of £5.0 million primarily due
to increases in our commercial teams, partly offset by lower other operating
expenses of £1.9 million.
· A £4.9 million increase in foreign exchange loss to £4.4
million, compared to a £0.5 million gain in 2024.
· An increase in share-based payments and associated employer
social security costs of £6.9 million to £14.8 million (2024: £7.9
million).
Adjusted EBITDA
FY25 FY24
£m £m
Loss from Operations (155.3) (152.3)
Depreciation and amortisation 49.4 43.3
Add back:
Share-based payments (Founder LTIP) 0.2 (6.1)
Employer's social security (charge) / credit on Founder LTIP and pre-IPO (1.8) (2.8)
share-based awards
Restructuring costs 20.8 -
Adjusted EBITDA (86.7) (117.9)
Adjusted EBITDA losses decreased to £(86.7) million in 2025 from £(117.9)
million in 2024. This year-on-year improvement was driven by increased gross
profits and disciplined control of the cost base.
Balance sheet
FY25 FY24
£m £m
Property, plant and equipment 61.9 66.3
Intangible assets 55.8 43.8
Right-of-use assets 30.9 34.9
Net deferred tax asset 2.7 2.6
Working capital 45.0 59.8
Other assets and liabilities 14.0 28.3
Provisions (8.3) (7.2)
Cash and cash equivalents and other liquid investments 302.8 403.8
Lease Liabilities (41.5) (46.0)
Net assets 463.3 586.3
Key elements of change in the balance sheet during the year included the
following:
Property, plant and equipment
The net book value of property, plant and equipment was £61.9 million as at
31 December 2025, a decrease of £4.4 million from the prior year. This
reduction was primarily driven by a £2.9 million decrease in assets held by
customers under operating leases, reflecting a shift towards selling devices
rather than leasing.
Intangible assets
Intangible assets were £55.8 million at 31 December 2025, an increase of
£12.0 million from £43.8 million at 31 December 2024, driven by additional
projects meeting the capitalisation criteria during the year.
Right-of-use assets
Right-of-use assets of £30.9 million at 31 December 2025 decreased by £4.0
million from £34.9 million at 31 December 2024, primarily driven by
depreciation on leased assets. As at 31 December 2025, the associated lease
liability was £41.5 million (2024: £46.0 million).
Working capital
The working capital balance of £45.0 million (2024: £59.8 million) reflects
inventory of £81.5 million (2024: £99.5 million), trade and other
receivables of £72.4 million (2024: £62.7 million), and trade and other
payables of £108.9 million (2024: £102.3 million). The reduction in working
capital was primarily driven by an £18.0 million decrease in inventory,
reflecting lower MinION Flow Cell, PromethION device, Kits and GridION
inventory, together with additional provisions for excess device inventory and
customer‑returned Flow Cells.
Provisions
Provisions of £8.3 million at 31 December 2025 (2024: £7.2 million),
included a provision for employer social security taxes on share awards of
£3.9 million (2024: £4.7 million). The provision is estimated at each
reporting period with reference to both the expected number of awards vesting
and their expected value, using the share price at the reporting date. The
release of the provision during the year was reflective of the payment of
employer social security relating to the Founder LTIP awards which were
settled. Provisions also included £2.5 million (2024: £2.4 million) relating
to property operating lease dilapidations.
Cash flow
Cash, cash equivalents and other liquid investments were £302.8 million at 31
December 2025, a decrease of £101.0 million since 31 December 2024 (see note
21). This is comprised of cash and cash equivalents of £181.1 million and
£121.7 million of investment bonds, including government bonds.
There was a net cash outflow of £70.6 million from operations (2024: outflow
of £109.9 million). The main reasons for the reduction in outflow were as
follows:
· The increased non-cash elements of our broadly flat loss before
tax relating to share-based compensation (£20.4 million in 2025 versus £3.9
million in 2024) and depreciation and amortisation (£49.8 million in 2025
versus £43.3 million in 2024).
· The inflow in respect of working capital of £2.1 million (2024:
£1.9 million outflow) reflects a decrease in inventory and assets subject to
operating leases of £4.9 million (2024: £21.2 million increase) and an
increase in payables of £6.6 million (2024: £21.1 million increase), partly
offset by an increase in receivables of £9.4 million (2024: £1.8 million).
Excluding the addition of assets subject to operating leases of £10.1 million
(2024: £20.5 million), the working capital inflow would have been £12.2
million (2024: £18.6 million inflow).
· Increase in tax inflow due mainly to R&D tax credits of
£19.4 million (2024: £4.9 million) relating to claims in respect of 2023 and
2024.
Net Cash inflows from investing activities of £56.3 million (2024: £15.0
million) includes:
· The proceeds from the sale of other financial assets of £144.1
million.
· Interest received of £7.8 million.
Partly offset by:
· The purchase of property, plant & machinery of £3.5 million.
· The spend on capitalised development costs of £42.2 million.
· Purchase of other financial assets of £49.9 million.
Net Cash outflows from financing activities of £2.1 million (2024: inflow of
£73.6 million) includes:
· Proceeds from issue of shares of £6.7 million, offset by lease
and interest payments of £8.7 million.
· Cash inflows in 2024 includes net proceeds from the issue of
shares in relation to the £80.0 million equity placing.
Outlook
2026 has started in-line with guidance expectations. The demand for Oxford
Nanopore Technologies sensing platform remains strong and is demonstrated
through the continued outperformance versus underlying market growth in all
regions.
· Regionally, growth is expected to be strongest in AMR, reflecting
continued progress in non-Research end-markets. EMEAI is expected to grow
strongly, but below 2025 given the timing of a number of strategic projects
ending within the Research space and of new projects starting. Whilst demand
overall remains strong in APAC we expect a more subdued performance in 2026
given a mix of both large projects ending and specific market challenges,
particularly in.China.
· By end market, management continues to see growth being weighted
towards the Applied end markets (Clinical, BioPharma and Industrial).
The ability to deliver further gross margin improvements in 2026 and 2027
alongside continued focus on cost discipline are set to deliver significant
operational leverage over the coming years.
With this improving financial performance and a strong balance sheet alongside
focus on working capital, we are well funded to deliver against our targets of
adjusted EBITDA breakeven in 2027 and cash flow breakeven in 2028.
Nick Keher, Chief Financial Officer
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
Note 2025 2024
£m £m
Revenue 4 223.9 183.2
Cost of sales (92.6) (77.8)
Gross profit 131.3 105.4
Research and development expenses (97.7) (98.9)
Selling, general and administrative expenses (188.9) (158.8)
Loss from operations (155.3) (152.3)
Finance income 11.8 14.8
Finance expense (2.8) (3.6)
Other gains and losses 6 6.4 1.1
Loss before tax 7 (139.9) (140.0)
Taxation 8 (5.3) (6.2)
Loss for the year (145.2) (146.2)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Unrealised fair value gains on investment bonds 6 3.1 4.6
Reclassification to profit or loss on disposal of investment bonds 6 (8.2) (2.0)
Fair value movements on investment bonds 6 (5.1) 2.6
Exchange losses arising on translation of foreign operations (0.2) (0.5)
Tax on items that may be reclassified subsequently to profit or loss 8 1.3 (0.6)
Other comprehensive (expense)/income for the year, net of tax (4.0) 1.5
Total comprehensive loss (149.2) (144.7)
Note 2025 2024
Pence Pence
Loss per share 9 (15.1) (16.3)
Consolidated Statement of Financial Position
as at 31 December 2025
Note 2025 2024
£m £m
Assets
Non-current assets
Property, plant and equipment 10 61.9 66.3
Intangible assets 11 55.8 43.8
Right-of-use assets 12 30.9 34.9
Other financial assets 13 51.2 74.3
Deferred tax assets 2.7 2.6
202.5 221.9
Current assets
Inventory 14 81.5 99.5
Trade and other receivables 15 72.4 62.7
Current tax assets 0.3 1.2
R&D tax credit recoverable 10.5 18.4
Other financial assets 13 74.2 138.8
Cash and cash equivalents 20 181.1 199.5
420.0 520.1
Total assets 622.5 742.0
Liabilities
Non-current liabilities
Lease liabilities 16 36.3 40.6
Share-based payment liabilities 0.5 0.2
Provisions 17 4.4 3.4
41.2 44.2
Current liabilities
Trade and other payables 18 108.9 102.3
Lease liabilities 16 5.2 5.4
Provisions 17 3.9 3.8
118.0 111.5
Total liabilities 159.2 155.7
Net assets 463.3 586.3
Issued capital and reserves attributable to owners of the parent
Share capital 0.1 0.1
Share premium reserve 786.4 779.7
Share-based payment reserve 19 228.6 209.1
Translation reserve (0.9) (0.7)
Accumulated deficit (550.9) (401.9)
Total equity 463.3 586.3
Consolidated Statement of Changes in Equity
as at 31 December 2025
Share capital Share premium 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
Loss for the year - - - - (146.2) (146.2)
Other comprehensive (expense)/income - - - (0.5) 2.0 1.5
Total comprehensive loss for the year - - - (0.5) (144.2) (144.7)
Issue of share capital - 83.4 - - - 83.4
Cost of share issue - (2.3) - - - (2.3)
Employee share-based payments - - 6.0 - - 6.0
Total contributions - 81.1 6.0 - - 87.1
At 31 December 2024 0.1 779.7 209.1 (0.7) (401.9) 586.3
Loss for the year - - - - (145.2) (145.2)
Other comprehensive expenses - - - (0.2) (3.8) (4.0)
Total comprehensive loss for the year - - - (0.2) (149.0) (149.2)
Issue of share capital - 6.7 - - - 6.7
Employee share-based payments - - 19.4 - - 19.4
Tax in relation to share-based payments - - 0.1 - - 0.1
Total contributions - 6.7 19.5 - - 26.2
At 31 December 2025 0.1 786.4 228.6 (0.9) (550.9) 463.3
Consolidated Statement of Cash Flows
for the year ended 31 December 2025
Note 2025 2024
£m £m
Net cash outflow from operating activities 20 (70.6) (109.9)
Investing activities
Purchase of property, plant and equipment (3.5) (13.9)
Development costs capitalised (42.2) (34.7)
Interest received 7.8 9.5
Purchase of other financial assets (49.9) -
Proceeds from sale of other financial assets 144.1 54.1
Net cash inflow from investing activities 56.3 15.0
Financing activities
Proceeds from issue of shares 6.7 83.2
Costs of share issue (0.1) (2.3)
Principal elements of lease payments (5.8) (4.7)
Interest paid on leases (2.9) (2.6)
Net cash (outflow)/inflow from financing activities (2.1) 73.6
Net decrease in cash and cash equivalents before foreign exchange movements (16.4) (21.3)
Effect of foreign exchange rate movements (2.0) 0.3
Cash and cash equivalents at beginning of year 199.5 220.5
Cash and cash equivalents at end of year 20 181.1 199.5
Notes to the Consolidated Financial Statements
for the year ended 31 December 2025
1. General information
Oxford Nanopore Technologies plc ("the Company") is a public limited company
incorporated in the United Kingdom under the Companies Act 2006 and is
registered in England and Wales. The Company's registered office is at Gosling
Building, Edmund Halley Road, Oxford Science Park, Oxford, OX4 4DQ. These
consolidated financial statements comprise the Company and its subsidiaries
(collectively "the Group" and individually "Group companies"). The Group is
primarily involved in researching, developing, manufacturing and
commercialising deoxyribonucleic acid ("DNA") or ribonucleic acid ("RNA")
sequencing technology that provides rich data, is fast, accessible and easy to
use, and which allows the real-time analysis of DNA or RNA.
The Company is the ultimate parent company of the Group.
This unaudited preliminary financial information, which does not constitute
statutory accounts of the Group within the meaning of sections 434(3) and
435(3) of the Companies Act 2006, comprises the consolidated income statement,
consolidated statement of comprehensive income, consolidated balance sheet,
consolidated statement of changes in equity, consolidated cash flow statement
and extracts from the notes to the financial statements for the year ended 31
December 2025. The Company expects to publish full financial statements that
comply with International Financial Reporting Standards in March 2026. These
have been prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board and
adopted by the UK. The unaudited preliminary financial information should be
read in conjunction with the Annual Report for 2024, which has been prepared
in accordance with International Accounting Standards, in conformity with the
Companies Act 2006.
The unaudited preliminary financial information has been presented in Pounds
Sterling because that is the currency of the primary economic environment in
which the Group operates, and is rounded to the nearest hundred thousand
pounds. Foreign operations are included in accordance with the policies set
out in the accounting policies as per the 2024 Annual Report.
2. Going concern
As at 31 December 2025, the Group held £302.8 million in cash, cash
equivalents and other liquid investments (note 21).
In order to satisfy the going concern assumption, the Directors review the
budget periodically. It is revisited and revised as appropriate in response to
evolving market conditions. Specifically for these unaudited preliminary
financial statements, the Directors have considered the budget and forecast
prepared through to the end of March 2027, 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 the financial statements. On the
basis of these reviews, the Directors consider it remains appropriate for the
going concern basis to be adopted in preparing these financial statements.
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. The
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.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
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
statements.
Judgements
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 year 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 R&D expenses in the income statement during the year.
eEstimates
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 31 December 2025 was £81.5 million (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. Consideration is made of the technical
properties of the inventory and its effect on 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.
If the provisioning estimate had decreased by 6%, then the net realisable
value of inventory would have increased by £3.4 million and the revised
inventory value would have been £84.9 million (2024: £3.0 million and
£102.5 million respectively). If the provisioning against inventory had
increased by 3%, then the net realisable value of inventory would have
decreased by £2.9 million and the revised inventory value would have been
£78.6 million (2024: £3.2 million and £96.3 million respectively).
Other sources of estimation uncertainty
ii) Internally generated intangible assets research and development
expenditure
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 31 December 2025 was £53.2 million
(2024: £41.7 million).
Development costs capitalised in 2025 amounted to £41.5 million (2024: £34.6
million). If the estimated time spent on these projects had varied by up to
5% then the development costs capitalised in 2025 would have been in the range
of £39.5 million to £43.6 million (2024: £33.0 million to £36.4 million).
iii) Non-standard customer contracts
Revenue contracts for the sale of bundled goods and services require
the allocation of the total contract price to individual performance
obligations based on their stand-alone selling prices. The Group occasionally
enters into larger bespoke contracts 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. Revenue
The Group derives revenue from the transfer of goods and services as follows:
2025 2024
£m £m
Geographical region
EMEAI 100.4 79.6
AMR 74.9 63.2
APAC 48.6 40.4
Total revenue 223.9 183.2
2025 2024
£m £m
Category
Sale of goods 194.5 154.1
Rendering of services 22.1 19.0
Lease income 7.3 10.1
Total revenue 223.9 183.2
2025 2024
£m £m
Timing of revenue recognition
At a point in time 195.6 155.7
Over time 28.3 27.5
Total revenue 223.9 183.2
Notes 15 and 18 disclose assets and liabilities the Group has recognised in
relation to contracts with customers.
In respect of contract liabilities:
2025 2024
£m £m
Revenue recognised that was included in the contract liability balance at the 14.9 12.8
beginning of the year
5. Segment information
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 reportable segment is revenue generation from
providing products and services related to the sale and use of its
nanopore-based sensing technology.
There were no individual customers representing more than 10% of the Group's
total revenue in either the current or prior year.
Geographical regions
Revenue by geographical region is shown in note 4. The Group's non‑current
assets by geographical location, excluding other financial assets and deferred
tax assets, are detailed below:
2025 2024
£m £m
EMEAI 130.5 127.0
AMR 15.0 15.7
APAC 3.1 2.3
148.6 145.0
6. Other gains and losses
2025 2024
£m £m
Income statement
Gain on investment bonds 8.2 2.0
Loss on derivative financial instruments - (0.2)
Impairment loss on intangible assets (1.8) -
Losses from associate - (0.7)
6.4 1.1
2025 2024
£m £m
Other comprehensive income
Unrealised fair value gains on investment bonds 3.1 4.6
Reclassification to profit or loss on disposal of investment bonds (8.2) (2.0)
Fair value movements on investment bonds (5.1) 2.6
7. Loss before tax
2025 2024
£m £m
This is after charging/(crediting):
Amortisation of intangible assets 28.9 23.9
Depreciation of property, plant and equipment 15.4 13.5
Depreciation of right-of-use assets 5.5 5.9
Loss on disposal of property, plant and equipment 3.8 7.5
Cost of inventory 69.8 61.3
Write-down of inventory 4.4 0.8
Short-term lease costs 1.2 1.0
Impairment losses 1.8 0.7
Net foreign exchange loss/(gain) 4.4 (0.5)
8. Taxation
Income tax recognised in statement of comprehensive income
Income tax recognised in profit and loss
2025 2024
£m £m
Current tax
Notional tax on R&D expenditure credit 2.5 3.3
Prior year adjustment in respect of notional tax on R&D expenditure credit 0.3 0.1
Prior year adjustment in respect of current tax - 0.2
Tax payable on foreign subsidiaries 1.3 0.3
Total current tax 4.1 3.9
Deferred tax
Origination and reversal of temporary differences 1.2 2.3
Total deferred tax 1.2 2.3
Total tax 5.3 6.2
Income tax recognised in other comprehensive income (OCI)
2025 2024
£m £m
Deferred tax on investment bonds (1.3) 0.6
Total tax (1.3) 0.6
Current tax balances have been calculated at the rates enacted for the period.
The effective rate of Corporation Tax is -3.74% (2024: -4.45%) of the loss
before tax for the Group.
The reasons for the difference between the actual tax charge for the year and
the standard rate of Corporation Tax in the United Kingdom applied to the
Group loss before tax are as follows:
2025 2024
£m £m
Loss for the year (145.2) (146.2)
Income tax expense 5.3 6.2
Loss before income tax (139.9) (140.0)
Tax rate in the UK for period as a percentage of losses at 25.0% (2024: 25.0%) (35.0) (35.0)
Movement on unrecognised deferred tax 35.5 39.4
R&D incentives 2.3 3.2
Adjustment in respect of overseas tax rates - 0.1
Adjustments to tax charge in respect of prior years 0.3 0.3
Impact of share options 1.9 (2.8)
Expenses not deductible for tax purposes 0.4 1.4
Other (0.1) (0.4)
Total tax expense 5.3 6.2
9. Loss per share
2025 2024
Pence Pence
Basic and diluted loss per share
Total basic and diluted loss per share attributable to the ordinary equity (15.1) (16.3)
holders of the Group from continuing operations
2025 2024
£m £m
Reconciliation of earnings used in calculating earnings per share
Loss attributable to the ordinary equity holders of the Group used in (145.2) (146.2)
calculating basic and diluted loss per share from continuing operations
2025 2024
Number Number
Weighted average number of shares used as the denominator
Weighted average number of ordinary shares and potential ordinary shares used 960,989,097 897,796,423
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 years ended 31 December
2025 and 31 December 2024. These options could potentially dilute basic
earnings per share in the future.
10. Property, plant and equipment
Leasehold improvements Plant and machinery Assets under construction Assets subject to operating leases Equipment Total
£m £m £m £m £m £m
Cost
At 1 January 2024 11.7 28.2 1.5 54.8 19.8 116.0
Additions - 0.1 13.7 20.6 2.9 37.3
Disposals - - - (13.6) - (13.6)
Transfers between classes 0.5 3.6 (4.7) - 0.6 -
Foreign exchange movements - - - 0.3 - 0.3
At 31 December 2024 12.2 31.9 10.5 62.1 23.3 140.0
Additions - - 3.5 10.1 2.7 16.3
Disposals - (0.2) - (6.8) (0.1) (7.1)
Transfers to intangible assets - - (0.5) - - (0.5)
Transfers between classes 7.8 2.1 (10.4) (0.8) 1.3 -
Foreign exchange movements - - - (1.7) (0.1) (1.8)
At 31 December 2025 20.0 33.8 3.1 62.9 27.1 146.9
Depreciation and impairment
At 1 January 2024 6.2 17.7 - 27.1 15.1 66.1
Charge for the year 1.4 3.0 - 6.2 2.9 13.5
Disposals - - - (6.1) - (6.1)
Foreign exchange movements - - - 0.2 - 0.2
At 31 December 2024 7.6 20.7 - 27.4 18.0 73.7
Charge for the year 1.3 3.0 - 7.8 3.3 15.4
Disposals - (0.2) - (3.0) (0.1) (3.3)
Transfers between classes - - - (0.4) 0.4 -
Foreign exchange movements - - - (0.7) (0.1) (0.8)
At 31 December 2025 8.9 23.5 - 31.1 21.5 85.0
Net book value
At 31 December 2024 4.6 11.2 10.5 34.7 5.3 66.3
At 31 December 2025 11.1 10.3 3.1 31.8 5.6 61.9
The Group leases some of its devices to customers. Lease payments in relation
to these devices are received in full either in advance or on shipping of
the device, meaning that there are no undiscounted future lease payments
expected to be received on these devices. On return of these items, in
certain cases management makes the decision to dispose of these items for nil
consideration. This represents a non-cash transaction.
11. Intangible assets
Capitalised development costs Digital infrastructure improvements Patents and licences Total
£m £m £m £m
Cost
At 1 January 2024 77.1 - 2.3 79.4
Additions 34.7 - 0.3 35.0
Foreign exchange movements - - (0.1) (0.1)
At 31 December 2024 111.8 - 2.5 114.3
Additions 41.5 0.7 - 42.2
Transfers from PPE 0.5 - - 0.5
At 31 December 2025 153.8 0.7 2.5 157.0
Amortisation and impairment
At 1 January 2024 46.4 - 0.2 46.6
Charge for the year 23.7 - 0.2 23.9
At 31 December 2024 70.1 - 0.4 70.5
Charge for the year 28.7 - 0.2 28.9
Impairment 1.8 - - 1.8
At 31 December 2025 100.6 - 0.6 101.2
Net book value
At 31 December 2024 41.7 - 2.1 43.8
At 31 December 2025 53.2 0.7 1.9 55.8
Development costs have been capitalised in accordance with IAS 38, "Intangible
Assets" and are therefore not treated as a realised loss until recognised as
an amortisation or impairment charge in the statement of comprehensive income.
In line with IAS 36, "Impairment of Assets", the Directors have considered
whether there are indicators, either internal or external, of impairment. No
such indicators were identified in the current or prior year other than in
respect of a refinement of the Group's product range taken in the year. This
led to an adjusted impairment charge of £1.8 million (note 21) as a result of
the Group's decision to stop selling the ElysION platform and focus on the P2i
product.
12. Right-of-use assets
Total
£m
Cost
At 1 January 2024 45.8
Additions 8.6
Disposals (2.5)
Foreign exchange movements 0.1
At 31 December 2024 52.0
Additions 2.3
Disposals (2.7)
Foreign exchange movements (0.4)
At 31 December 2025 51.2
Depreciation
At 1 January 2024 13.2
Charge for the year 5.9
Disposals (2.1)
Foreign exchange movements 0.1
At 31 December 2024 17.1
Charge for the year 5.5
Disposals (2.1)
Foreign exchange movements (0.2)
At 31 December 2025 20.3
Net book value
At 31 December 2024 34.9
At 31 December 2025 30.9
13. Other financial assets
2025 2024
£m £m
Investment bonds 74.2 211.8
UK government bonds (Gilts) 50.0 -
Unlisted investments 1.2 1.3
125.4 213.1
These items were analysed as follows:
2025 2024
£m £m
Current 74.2 138.8
Non-current 51.2 74.3
125.4 213.1
Investment bonds are classified as financial assets at fair value through
other comprehensive income ("FVOCI").
UK government bonds (Gilts) are measured at amortised cost.
14. Inventory
2025 2024
£m £m
Raw materials 24.8 37.6
Work in progress 45.6 45.7
Finished goods 11.1 16.2
81.5 99.5
The carrying amount of inventory was not materially different from its
recoverable value.
The cost of inventory recognised as an expense includes £4.4 million (2024:
£0.8 million) in respect of write-downs of inventory to net realisable value.
There were no reversals of write-downs in either year.
15. Trade and other receivables
2025 2024
£m £m
Trade receivables 46.5 37.3
Contract assets 0.2 0.3
Accrued income and other debtors 5.0 6.4
Accrued interest 0.8 0.6
Other taxes 3.3 5.2
Prepayments 16.6 12.9
72.4 62.7
The ageing of trade receivables and the loss allowance calculated using the
Group's provision matrix was as follows:
Not past due 30-60 days 61-90 days 91+ days Total
£m £m £m £m £m
Gross receivable 40.7 2.2 1.4 5.4 49.7
Loss allowance (0.8) (0.2) (0.3) (1.9) (3.2)
Trade receivables at 31 December 2025 39.9 2.0 1.1 3.5 46.5
Gross receivable 30.2 2.8 1.8 4.5 39.3
Loss allowance (0.4) (0.1) (0.1) (1.4) (2.0)
Trade receivables at 31 December 2024 29.8 2.7 1.7 3.1 37.3
The following table shows the movement in lifetime Expected Credit Loss that
has been recognised for trade receivables in accordance with the simplified
approach set out in IFRS 9:
£m
At 1 January 2024 0.9
Net charges and releases to statement of comprehensive income 1.1
At 31 December 2024 2.0
Net charges and releases to statement of comprehensive income 1.2
At 31 December 2025 3.2
16. Lease liabilities
2025 2024
£m £m
Current 5.2 5.4
Non-current 36.3 40.6
Lease liabilities included in the statement of financial position 41.5 46.0
2025 2024
£m £m
Maturity analysis - contractual undiscounted cash flows
Up to one year 8.1 8.3
Two to five years 31.9 33.1
Greater than five years 14.4 20.5
Total undiscounted lease liabilities at 31 December 54.4 61.9
Information on the associated right-of-use assets is included in note 12.
17. Provisions
Dilapidation provisions Employer Other Total provisions
taxes
£m
£m £m
£m
At 31 December 2024 2.4 4.7 0.1 7.2
Movement in provision 0.1 0.2 2.0 2.3
Payments - (1.0) (0.2) (1.2)
At 31 December 2025 2.5 3.9 1.9 8.3
Current - 2.0 1.9 3.9
Non-current 2.5 1.9 - 4.4
At 31 December 2025 2.5 3.9 1.9 8.3
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 leased properties, representing an
obligation to restore the premises to their original condition at the time the
Group vacates them. The provision is non-current and expected to be utilised
in less than 20 years.
Employer taxes relate to the expected employer social security 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.
18. Trade and other payables
2025 2024
£m £m
Trade payables 18.4 31.3
Share-based payments 0.4 0.2
Payroll taxation and social security 5.4 4.5
Accruals 50.3 45.7
Contract liabilities 34.4 20.6
108.9 102.3
The average credit period taken for trade purchases by the Group is 31 days
(2024: 54 days).
The Group has financial risk management policies in place to ensure that all
undisputed payables are paid within the pre-agreed credit terms.
The Directors consider that the carrying amount of trade payables approximates
their fair value.
Contract liabilities primarily relate to performance obligations on customer
contracts which were not satisfied at 31 December. In 2025 they increased by
£13.8 million (2024: decrease of £5.5 million). Management expects that most
of the transaction price allocated to unsatisfied performance obligations as
at 31 December 2025 will be recognised as revenue during the following year.
19. Share-based payment reserve
2025 2024
£m £m
At 1 January 209.1 203.1
Equity settled share-based payment transactions 19.4 6.0
Tax in relation to share-based payment transactions 0.1 -
At 31 December 228.6 209.1
Share-based payment transactions
2025 2024
£m £m
Expense arising from share-based payment transactions:
Included in research & development expenses 6.8 4.6
Included in selling, general & administrative expenses 13.4 1.3
20.2 5.9
Equity settled share-based payment transactions 19.4 6.0
Cash settled share-based payment transactions 0.8 (0.1)
20.2 5.9
20. Notes to the cash flow statements
2025 2024
£m £m
Cash and cash equivalents 181.1 199.5
Cash and cash equivalents comprised cash held at banks. The carrying amount of
this asset was approximately equal to its fair value.
2025 2024
£m £m
Loss before tax (139.9) (140.0)
Depreciation on property, plant and equipment 15.4 13.5
Depreciation on right-of-use assets 5.5 5.9
Amortisation on intangible assets 28.9 23.9
Loss on disposal of property, plant and equipment and right-of-use assets 3.8 7.5
R&D tax credit (14.3) (13.9)
Foreign exchange movements 3.7 (1.4)
Interest on leases 2.8 3.6
Interest income (11.8) (14.8)
Fair value movements on investment bonds (7.9) (1.5)
Movements on derivatives - 0.3
Impairment losses 1.8 0.7
Employee share benefit costs including employer's social security 20.4 3.9
taxes
Operating cash flows before movements in working capital (91.6) (112.3)
Increase in receivables (9.4) (1.8)
Decrease/(increase) in inventory and assets subject to operating leases 4.9 (21.2)
Increase in payables 6.6 21.1
Cash used in operations (89.5) (114.2)
R&D tax credit received 19.4 4.9
Foreign tax paid (0.5) (0.6)
Net cash outflow from operating activities (70.6) (109.9)
21. Alternative performance measures
The Group's performance is assessed using a number of financial measures which
are not defined under IFRS and which 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.
Adjusting items Significant unusual, infrequent, or non-recurring income or charges that do These are non-GAAP adjustments made by management in order to reflect the
not comprise typical ongoing operating income or expenses that underpin long underlying operating performance of the Group.
term value generation. In the periods presented, where relevant, these
adjustments comprise restructuring costs, share-based payment expenses related
to the Founder LTIP, and the associated employer social security taxes on both
the Founder LTIP and pre-IPO share awards.
Adjusted research and development expenses Research and development expenses after adjusting for Adjusting items. This measure shows the underlying R&D expenditure by adjusting for one-off
Adjusting items.
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 Adjusting This shows the underlying selling, general and administrative expenses by
items. removing the impact of one-off Adjusting items.
Adjusted EBITDA Loss from operations adjusted for depreciation and amortisation and for Adjusted EBITDA is used as a key profit measure because it shows the results
Adjusting items. of core operations exclusive of income or charges that are not considered to
represent the underlying operational performance and excludes one-off or
intermittent Adjusting items.
Cash and cash equivalents and other liquid investments Cash and cash equivalents, which comprise cash in hand, deposits held at call Cash and cash equivalents and other liquid investments is a measure that shows
and other short-term highly liquid investments with a maturity of three months underlying liquidity reserves.
or less at the date of acquisition. Other liquid investments comprise
investment bonds, where a fixed amount is invested in an asset-backed fund,
and UK government bonds.
Gross margin % Gross profit divided by revenue. Helps evaluate profitability of core operations including cost management of
production and pricing strategy effectiveness.
Adjusted gross profit Adjusted gross profit is gross profit after removing items that are unusual, Helps assess underlying profitability of the core business, remove distortion
non‑recurring, or not reflective of the Group's underlying operational from one-off events and improve comparability year-on-year.
performance.
The following table presents revenue growth on a reported and constant
currency basis:
H1 2025 H2 2025 2025 H1 2024 H2 2024 Total 2024
£m £m £m £m £m £m
Revenue 105.6 118.3 223.9 84.1 99.1 183.2
Growth 25.6% 19.4% 22.2% (2.2)% 18.5% 8.0%
Impact of foreign exchange 2.0 1.7 3.7 2.4 3.0 5.4
Revenue on a constant currency basis 107.6 120.0 227.6 86.5 102.1 188.6
Growth 28.0% 21.1% 24.2% 0.6% 22.0% 11.1%
The following table presents adjusted gross profit:
2025 2024
£m £m
Gross profit 131.3 105.4
Adjusting items:
Restructuring costs 1.8 -
Adjusted gross profit 133.1 105.4
Gross margin % 58.6% 57.5%
Adjusted gross margin % 59.4% 57.5%
The following table presents adjusted research and development expenses:
2025 2024
£m £m
Research and development expenses 97.7 98.9
Adjusting items:
Employer's social security taxes on pre-IPO share awards (0.2) 0.5
Restructuring costs (8.1) -
Adjusted research and development expenses 89.4 99.4
Amortisation of capitalised development costs (28.7) (23.7)
Capitalised development costs 41.5 34.7
Adjusted R&D expenses and capitalised development costs 102.2 110.4
The following table presents adjusted selling, general and administrative
expenses:
2025 2024
£m £m
Selling, general and administrative expenses 188.9 158.8
Adjusting items:
Share-based payment expense on Founder LTIP (0.2) 6.1
Employer's social security taxes on Founder LTIP and pre-IPO share awards 2.0 2.3
Restructuring costs (10.9) -
Adjusted selling, general and administrative expenses 179.8 167.2
The following table presents Group Adjusted EBITDA:
H1 2025 H2 2025 2025 H1 2024* H2 2024* 2024*
£m £m £m £m £m £m
Loss from operations (77.8) (77.5) (155.3) (77.0) (75.3) (152.3)
Depreciation and amortisation 22.9 26.5 49.4 19.8 23.5 43.3
Share-based payments (Founder LTIP) 2.0 (1.8) 0.2 1.1 (7.2) (6.1)
Employer's social security (charge)/credit on Founder LTIP and pre-IPO 0.4 (2.2) (1.8) (5.6) 2.8 (2.8)
share-based awards
Restructuring costs 4.2 16.6 20.8 - - -
Adjusted EBITDA (48.3) (38.4) (86.7) (61.7) (56.2) (117.9)
During the year, the Group implemented restructuring actions in both H1 and H2
to enhance cost efficiency and align its operating model with its strategic
priorities. These actions resulted in total restructuring and associated costs
of £22.6 million, including headcount reductions, a refocusing of R&D
activity, and adjustments to certain product offerings.
* 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 31 December 2024 have been restated to reflect this. Adjusted EBITDA for
the year ended 31 December 2024 has been restated to a loss of £117.9 million
(previously a loss of £116.1 million when including the impact of other gains
and losses as well as results from the associate).
The following table presents cash, cash equivalents and other liquid
investments:
2025 2024
£m £m
Cash and cash equivalents 181.1 199.5
Investment bonds, including UK government bonds 124.2 211.8
Less: unrealised interest income (0.1) -
Less: fair value movements on investment bonds (2.4) (7.5)
Cash, cash equivalents and other liquid investments 302.8 403.8
1 (#_ftnref1) 20,000 cumulative publications as at 31 December 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.
2 (#_ftnref2) Source: DeciBio and company compiled estimates.
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 FY25 and
FY24 non-GBP results based on FY24 rates. All growth rates include currency
fluctuations unless stated otherwise (please refer to Note 21).
3 (#_ednref3) Adjusted Gross profit is a non-IFRS measure (please refer to
Note 21) that may be considered in addition to, but not as a substitute for,
or superior to, information presented in accordance with IFRS. Adjusted Gross
profit is the Gross profit adjusted for Restructuring costs.
4 (#_ednref4) 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 Loss from Operations
adjusted for i) Depreciation and Amortisation ii) Share-based payment expense
on founder LTIP iii) Employers' social security taxes on pre-IPO awards, and
iv) 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.
5 (#_ednref5) The PromethION product range includes all PromethION devices
(P2S, P2i, P24 and P48) and PromethION Flow Cells.
6 (#_ednref6) The MinION product range includes all MinION and GridION
devices and MinION Flow Cells.
7 (#_ednref7) Cash, cash equivalents and other liquid investments includes
cash and cash equivalents, investment bonds and UK government bonds.
8 (#_ednref8) Cumulative publications as at 31 December 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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rns@lseg.com (mailto:rns@lseg.com)
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. END FR JBMTTMTAMTIF
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