Oxford Nanopore Technologies’ shares advanced 6.2% on Wednesday, ending a five-session slide as investors reacted to stronger-than-expected first-half financials and margin expansion.
The London-listed stock rose to 129.8 pence, outperforming the FTSE Mid-Cap 250 index. The company reported a gross margin of 62.2%, up 400 basis points from the prior-year period, driven by yield improvements, adoption of a new pricing model and tighter cost controls.
Adjusted EBITDA losses more than halved to £22.1 million, compared with £48.3 million a year earlier. Stifel noted the loss was better than its £39.9 million estimate and the £34.9 million consensus. Adjusted operating costs fell 6.9% year-over-year.
Revenue growth was led by Clinical, which rose 35.4%, followed by BioPharma at 25%. Research revenue, the largest end market, grew 5.4%.
Management maintained its FY26 revenue-growth target of 16%-20% on a constant-currency basis and reiterated an adjusted EBITDA breakeven target for FY27. Adjusted operating costs are now expected to decline 2% to flat year-over-year, versus prior guidance of 0%-5% growth.
Oxford Nanopore introduced a new 2030 revenue target of more than $700 million, with growth weighted toward Clinical and BioPharma. It also set an adjusted EBITDA margin target above 15% for the same period.
Stifel retained a Hold rating on the shares with a 125-pence price target, describing the company’s strategic refocus as sensible and overdue.
