Oxford Nanopore 2025 results: strong growth, better margins, and a new CEO
Oxford Nanopore Technologies reported another year of solid progress. Revenue rose to £223.9 million, up 24.2% on a constant currency basis (22.2% reported), with growth across every region, product line and customer segment. Gross margin improved to 58.6% and the adjusted EBITDA loss narrowed to £86.7 million, a £31.2 million improvement year-on-year.
Alongside the numbers, the company confirmed a planned leadership handover: Francis Van Parys becomes CEO on 2 March 2026, with co-founder Gordon Sanghera staying on as an adviser through early 2027. Guidance for FY26 points to another year of double-digit growth and further margin gains, and the medium-term targets are reaffirmed: adjusted EBITDA breakeven in FY27 and cash flow positive in FY28.
Headline numbers investors should know
| Metric | FY25 | FY24 | Comment |
|---|---|---|---|
| Revenue | £223.9 million | £183.2 million | +24.2% CC, ahead of guidance top end |
| Gross margin | 58.6% | 57.5% | Underlying gains partly offset by one-offs and FX |
| Adjusted gross margin | 59.4% | 57.5% | Excludes restructuring-related inventory charge |
| Adjusted EBITDA | £(86.7) million | £(117.9) million | H2 loss improved to £(38.4) million |
| Loss for the year | £(145.2) million | £(146.2) million | Broadly flat despite £22.6 million restructuring |
| Cash and other liquid investments | £302.8 million | £403.8 million | Net operating cash outflow £70.6 million |
Jargon check: constant currency removes FX effects; adjusted EBITDA is operating profit before depreciation and amortisation and excludes specified items such as restructuring and certain share-based costs.
Where the growth came from in 2025
PromethION-led product momentum
- PromethION product range revenue jumped 43.1% to £110.6 million, driven by higher flow cell utilisation and more active devices.
- MinION product range grew 2.4% to £56.3 million, helped by the revised pricing model.
- Other revenue, including kits, services and other devices, rose 12.0% to £57.0 million.
Applied end markets accelerating
- Clinical revenue up 59.9% to £29.8 million as adoption broadened in infectious disease, oncology and rare disease.
- BioPharma up 30.4% to £18.1 million, with growing use in quality control.
- Applied Industrial up 27.2% to £27.5 million.
- Research still the largest at £148.6 million, up 15.1% despite NIH headwinds.
Geographic breadth
- EMEAI £100.4 million, up 26.1% reported (+26.3% CC).
- AMR £74.9 million, up 18.7% reported (+22.2% CC), with strong Clinical demand offsetting muted US Research.
- APAC £48.6 million, up 20.2% reported (+23.2% CC); China represented 9.6% of Group revenue.
Margins are heading the right way
Gross margin rose 110bps to 58.6%, with underlying improvements of +460bps from pricing and better PromethION flow cell margins. Offsets were a non-cash H1 inventory charge of £3.3 million (-150bps), mix (-130bps) and currency (-70bps). Adjusted gross margin was 59.4% after excluding £1.8 million of restructuring-related inventory write-downs.
The adjusted EBITDA loss narrowed to £86.7 million, helped by higher gross profit and tight operating cost control. Importantly, H2 improved by £9.9 million versus H1, and management expects further progress in 2026.
Strategy, clinical push and product focus
- Clinical and regulated readiness advanced: first IVD product, GridION Dx, registered with CE and UKCA marking, with the first application in infectious disease characterisation.
- Partnerships expanded: a new strategic tie-up with Cepheid to develop automated infectious disease sequencing, and bioMérieux collaboration progressed with the launch of AmPORE-TB for drug-resistant tuberculosis.
- Portfolio rationalisation: active sales of ElysION ended; P2 Solo to be discontinued by end of June 2026, with focus shifting to P2i. Two restructuring steps in 2025 reduced headcount and sharpened R&D priorities, totalling £22.6 million of costs.
- Manufacturing scaled with next-generation automated flow cell lines intended to support margin and reliability over time.
Cash, runway and the path to breakeven
Oxford Nanopore closed the year with £302.8 million in cash, cash equivalents and other liquid investments. Operating cash outflow improved to £70.6 million, supported by better working capital dynamics as more customers bought devices rather than leased them.
Management reaffirmed the roadmap: adjusted EBITDA breakeven in FY27 and cash flow positive in FY28. Delivery will hinge on sustained double-digit growth, continued gross margin gains and disciplined opex growth.
FY26 guidance and what it implies
- Revenue growth of 21-25% on a constant currency basis.
- Gross margin around 62%, aided by operational improvements such as flow cell recycling and pricing model tailwinds.
- Adjusted operating costs to grow 0-5% after the 2025 restructuring.
- Growth mix: strongest in AMR; EMEAI to remain robust but below 2025 due to timing of Research projects; APAC to moderate given project completions and market challenges in China. Applied markets to lead growth.
Investors should note that several large research programmes concluded in 2025, so near-term growth leans more on Applied, Clinical and BioPharma adoption – areas where the company’s differentiated, rapid and information-rich sequencing is resonating.
Leadership transition: risk or catalyst?
Francis Van Parys joins as CEO on 2 March 2026, bringing long-standing experience scaling life science businesses. Founder-CEO Gordon Sanghera departs the Board now but remains as an adviser through early 2027, supporting continuity. My take: fresh commercial execution paired with founder continuity reduces transition risk and could accelerate penetration in regulated markets.
Legal backdrop
Patent proceedings against MGI are underway in Australia, with MGI conceding infringement of four ONT patents related to a specific product, and a trial set for 2027 on remaining defences. A separate UK action alleges trade secrets infringement and related claims. IP enforcement can be lengthy; management says it will defend its position vigorously.
My view: why this update matters
- Positives: growth is broad-based; PromethION utilisation is rising; margin trajectory is improving; H2 profitability trend is better; cash remains substantial; clinical pathway is taking shape with GridION Dx and partnerships.
- Watch-outs: still significant losses; cash and investments declined to £302.8 million; restructuring and product rationalisation reflect sharper focus but also underline earlier portfolio sprawl; NIH headwinds and China challenges persist; FY26 relies more on Applied momentum.
Net-net, this is a confident set of numbers with credible guidance and a clear path to breakeven. If ONT executes on the 62% gross margin target and keeps costs tight, the EBITDA bridge to FY27 looks achievable.
Key catalysts over the next 12 months
- Delivery against FY26 revenue growth of 21-25% CC and gross margin around 62%.
- Evidence of accelerating Applied and Clinical adoption, including traction from the Cepheid and bioMérieux collaborations.
- Further PromethION utilisation increases and any cost-per-GB improvements that reinforce competitiveness.
- Progress on the GridION Q-line roadmap and GridION Dx deployments.
- Cash discipline, working capital optimisation and continued improvement in H2 run-rate EBITDA.
Want to dive deeper?
Management is hosting an analyst presentation and live webcast. Details and replay will be available on the company’s investor page: nanoporetech.com/about/investors/reports.
