NIOX H1 revenue dips as cash strength supports planned capital return

NIOX's first-half performance at a glance

NIOX Group PLC has reported first-half trading in line with its expectations, despite lower total revenue and adjusted earnings compared with the same period last year.

The medical device company generated revenue of approximately £24.0 million during the six months ended 30 June 2026, down from £25.2 million in H1 2025. Adjusted EBITDA fell from £9.2 million to approximately £8.3 million.

Adjusted EBITDA means earnings before interest, tax, depreciation and amortisation, with NIOX also excluding share option charges. It is a useful measure of underlying operating profitability, although it is not the same as statutory profit.

Key figure	H1 2026	H1 2025	Change
Revenue	Approximately £24.0 million	£25.2 million	Down 4.8%
Clinical revenue	Approximately £20.6 million	£20.0 million	Up 3.0%
Research revenue	Approximately £3.4 million	£5.2 million	Down 34.6%
Gross margin	Approximately 71%	70%	Up 1 percentage point
Adjusted EBITDA	Approximately £8.3 million	£9.2 million	Down 9.8%
Operating expenditure	Approximately £8.8 million	£8.6 million	Up 2.3%
Net cash	Approximately £16.8 million	£19.9 million at 31 December 2025	After a £6.5 million dividend

The headline numbers are mixed. Revenue and adjusted EBITDA declined, but Clinical sales grew, gross margin improved and the balance sheet remained strong after the payment of a sizeable final dividend.

Why revenue fell

The main source of weakness was the Research division, where revenue dropped to approximately £3.4 million from £5.2 million.

NIOX said Research revenue had been exceptionally strong in 2025 because of a high volume of chronic obstructive pulmonary disease, or COPD, studies. Clinical trial activity has since returned to more normal levels.

Management also made a strategic decision to prioritise inventory for the Clinical business. This contributed to the lower Research result but supported the division that generates most of the group's revenue.

Research income can fluctuate depending on when clinical trials begin and progress. NIOX hopes a recently signed Master Services Agreement with its largest customer will improve visibility, but the agreement's financial terms were not disclosed.

Clinical growth is being held back by approval timing

Clinical revenue increased modestly to approximately £20.6 million. This part of the business supplies point-of-care fractional exhaled nitric oxide, or FeNO, testing for the diagnosis, monitoring and management of asthma and COPD.

The result reflected the timing of regulatory approvals for NIOX PRO, the company's next-generation device. NIOX has secured CE Mark and UK Medicines and Healthcare products Regulatory Agency approval, while decisions in the US and Japan are expected during H2 2026.

Management said delayed approvals had led to an accumulation of Clinical demand that it expects to fulfil during the second half. Customer feedback following the device's launch was described as highly encouraging.

This makes the rollout central to the investment case for the remainder of the year. The first half was not especially strong, so NIOX needs regulatory and commercial progress to translate into actual revenue during H2.

A stronger second half is required

NIOX reaffirmed that full-year trading remains in line with consensus market expectations. The company stated that consensus as of 27 July 2026 was:

• Revenue of £50.5 million
• Adjusted EBITDA of £17.5 million

Based on the approximate first-half figures, NIOX would need to generate around £26.5 million of revenue and £9.2 million of adjusted EBITDA in H2 to meet those expectations.

That would represent an improvement on H1. Management expects this to be supported by the commercial rollout of NIOX PRO, accumulated Clinical demand, increased Research activity and higher pricing in Japan.

The Japanese price increase took effect on 1 June 2026 after the country's Ministry of Health increased reimbursement. The precise financial benefit was not disclosed.

NIOX has also fully deployed its US field-based sales organisation and is continuing to invest in product development, including its MyNO home-use device. No launch timetable or financial forecast for MyNO was provided.

Cash supports another shareholder return

NIOX ended the period with net cash of approximately £16.8 million, compared with £19.9 million at the end of 2025. Importantly, this was after paying a £6.5 million final dividend.

The board now intends to return further excess capital to shareholders during the second half of 2026. The mechanism remains under review, so investors do not yet know whether the return will take the form of a special dividend, share buyback or another structure.

Further details are expected alongside the interim results towards the end of September. Capital returns can be attractive, but investors should wait for the size and structure before judging their significance. Those interested in another example can read about Pebble Group's extended buyback programme.

NIOX's ability to fund investment while returning surplus cash is encouraging. It also suggests that the board sees cash generation and the current balance sheet as robust enough to support both priorities.

The positives and risks for investors

The clearest positives are the improved gross margin, continued Clinical growth and strong net cash position. The 10-year exclusive sensor supply agreement also provides long-term supply security, although its commercial terms were not disclosed.

There are still several points requiring attention:

• Total revenue and adjusted EBITDA declined in H1.
• Research revenue remains difficult to forecast and can move sharply between periods.
• Full-year delivery depends on a stronger second half.
• US and Japanese approvals for NIOX PRO have not yet been received.
• The size and method of the proposed capital return remain unknown.
• Interim statutory profit and cash flow figures have not yet been published.

The gross margin increase from 70% to approximately 71% is helpful, reflecting a greater proportion of higher-margin Clinical sales. However, operating expenditure edged up to approximately £8.8 million as NIOX invested in its US commercial team and product development.

What to watch in September's interim results

The original company announcement presents a business navigating a product transition rather than one experiencing a clear deterioration in demand. That distinction matters, but it still needs to be demonstrated through second-half delivery.

The key updates to watch are progress on US and Japanese approvals, evidence that accumulated NIOX PRO demand is converting into sales, Research activity and the details of the proposed capital return.

For now, NIOX has maintained guidance and preserved a strong balance sheet. The next test is whether its regulatory progress, Japanese pricing and commercial investment can deliver the stronger H2 already embedded in full-year expectations.