Oxford Nanopore Technologies (LSE:ONT) shares rallied by 9.78% on August 27, 2026, marking its strongest single trading session in over seven months. This surge followed the release of interim results on August 19, 2026, which revealed a substantial improvement in gross margin and a more than halving of adjusted EBITDA losses. This performance instilled renewed confidence among investors regarding the company's previously stated goal of achieving adjusted profitability by the 2027 financial year.
The positive market reaction was driven more by the quality of the financial progress rather than headline revenue growth, which was more modest than in previous years. Key highlights included a 400 basis-point improvement in gross margin, bringing it to 62.2%, and an adjusted EBITDA loss that narrowed significantly to £22.1 million from £48.3 million in H1 2025. These improvements, coupled with disciplined cost control resulting in a 6.9% year-on-year reduction in adjusted operating costs, reassured shareholders weary of persistent losses. The company's pretax loss also shrank to £44.9 million from £69.0 million the prior year.
Oxford Nanopore's revenue for the first half of 2026 increased by 11% to £116.7 million, or 12% at constant currency, matching earlier lowered expectations. CEO Francis Van Parys reiterated the company's commitment to achieving adjusted EBITDA breakeven in FY27 and positive free cash flow in FY28. For the full year 2026, the company expects constant currency revenue growth of 16% to 20% (excluding a $20 million one-off licensing fee) and a gross margin of approximately 62%. Adjusted operating costs are now predicted to be flat to down 2% year-on-year, an improvement from previous guidance.
The company also provided an updated outlook for 2030, targeting over $700 million in revenue with organic constant-currency growth of approximately mid-teens per annum, accelerating in BioPharma and Clinical segments. The adjusted EBITDA margin is expected to exceed 15% by 2030. Leadership appointments, including a new Chief Medical Officer and Chief Marketing and Communications Officer, are also expected to support future growth and commercial execution. A new global cross-licensing agreement with a diagnostics company, including a $20 million licensing fee and $15 million in committed product purchases, further contributed to the positive sentiment.
