Oxford Nanopore Technologies’ shares jumped 16.26% in premarket trading to $142.07 on Wednesday after the genomics company reported first-half 2026 revenue of GBP 116.7 million, a 12.3% increase at constant currency.
Gross margin expanded by 400 basis points to 62.2% while the adjusted EBITDA loss narrowed to GBP 22.1 million from GBP 48.3 million a year earlier, a 54% improvement. Adjusted operating expenses declined 7% year over year. Net cash and liquid investments stood at GBP 234.5 million with no debt, though down roughly GBP 70 million versus December 2025.
Revenue growth was led by clinical and biopharma segments, which rose 35.4% and 25% respectively on a reported basis. Device sales surged 32.6% while consumable sales increased 2.7%. China and the Middle East posted declines of approximately 16% and 14%, respectively, reflecting regional headwinds including export controls and geopolitical disruption.
The company reaffirmed its FY 2026 guidance for constant-currency revenue growth of 16% to 20% and a gross margin target of about 62%. Adjusted operating expenses are expected to be down 2% to flat year over year. Management also reiterated plans to reach adjusted EBITDA breakeven in 2027 and positive free cash flow in 2028.
A cross-licensing agreement will contribute GBP 20 million in upfront revenue in H2 2026, recognized at 100% gross margin, with an additional GBP 15 million in committed product purchases across 2027 and 2028. CEO Francis Van Parys noted the company is shifting resources toward higher-value applications and operational discipline rather than broad cost-cutting.
CFO Nick Keher emphasized capital reallocation toward higher-return activities, stating the company is not pursuing austerity to achieve growth.
