Oxford Nanopore Technologies (LON:ONT) Releases Quarterly Earnings Results

Oxford Nanopore Technologies (LON:ONT) released its quarterly earnings results on Wednesday. The company reported GBX (4.90) earnings per share (EPS) for the quarter, Digital Look Earnings reports. Oxford Nanopore Technologies had a negative net margin of 64.85% and a negative return on equity of 29.43%.

Here are the key takeaways from Oxford Nanopore Technologies’ conference call:

• First-half revenue was £116.7 million, up 12.3% at constant currency but below expectations, with China revenue down approximately 16% and the Middle East down approximately 14%. Management said lost first-half revenue in the Americas will not be recovered in the second half.
• Profitability improved substantially: gross margin rose 400 basis points to 62.2%, adjusted operating expenses fell 7%, and the adjusted EBITDA loss narrowed 54% to £22.1 million. The company maintained its targets for adjusted EBITDA breakeven in 2027 and positive free cash flow in 2028.
• Oxford Nanopore signed a cross-licensing agreement with a global diagnostics company that includes a $20 million upfront payment in the second half of 2026, $50 million of committed product purchases through 2028, and low- to mid-single-digit royalties over the life of the patents. The upfront payment is excluded from core guidance and will be recognized at 100% gross margin.
• The company is refocusing its strategy on research whole-genome sequencing, biopharma workflows, and selected clinical applications, while simplifying its portfolio and aligning R&D more closely with customer needs. Management is targeting more than £700 million of revenue and adjusted EBITDA margins above 15% by 2030, though it acknowledged that adoption and execution must improve.
• Device revenue grew 32.6%, led by PromethION and particularly the P2i, while clinical revenue rose 35.4% and biopharma revenue increased 25%. Management expects new device placements and easier comparisons after lapping prior-year research programs to support stronger consumable growth in the second half.

Oxford Nanopore Technologies Stock Performance

LON ONT opened at GBX 151.20 on Thursday. Oxford Nanopore Technologies has a twelve month low of GBX 95.61 and a twelve month high of GBX 215.60. The firm has a market cap of £1.47 billion, a price-to-earnings ratio of -10.01 and a beta of 0.91. The business has a 50-day moving average price of GBX 118.42 and a 200-day moving average price of GBX 122.55. The company has a quick ratio of 6.01, a current ratio of 3.56 and a debt-to-equity ratio of 8.96.

Analysts Set New Price Targets

Several research analysts have recently weighed in on ONT shares. Royal Bank Of Canada reaffirmed an “outperform” rating and set a GBX 225 price objective on shares of Oxford Nanopore Technologies in a research report on Tuesday, May 26th. Citigroup downgraded Oxford Nanopore Technologies to a “buy” rating in a research report on Monday, July 20th. Berenberg Bank lowered their target price on Oxford Nanopore Technologies from GBX 220 to GBX 200 and set a “buy” rating for the company in a report on Wednesday. Peel Hunt reissued a “hold” rating and issued a GBX 153 price target on shares of Oxford Nanopore Technologies in a research note on Monday, July 13th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a GBX 195 price target on shares of Oxford Nanopore Technologies in a report on Thursday. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of GBX 193.25.

Oxford Nanopore Technologies Company Profile

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.