Disclaimer
This presentation is for informational purposes only and does not constitute an offer or solicitation to purchase securities. Investors should conduct their own independent investigation and consult their own advisors. The information is confidential and may not be reproduced or disseminated. Oxford Nanopore Technologies plc makes no representations or warranties regarding the accuracy or completeness of the information. Products are not intended for health assessment or disease diagnosis/treatment. The presentation may contain forward-looking statements regarding future performance, which are subject to uncertainties.
Notes:
- Revenue figures refer to 'Life Sciences Research Tools' revenue.
- Constant currency (CC) applies consistent exchange rates for comparison.
- Numerical figures may be rounded, leading to minor discrepancies.
Strong H1 Performance and Strategic Progress
- ? Strong broad-based revenue growth
- ? Significant progress on path to profitability; adjusted EBITDA loss improved YoY and sequentially
- ⚙️ Strategic progress in Applied markets
- ✔️ On track to deliver 2025 and medium-term guidance
Strong H1 Revenue Growth; +28% CC
Growth delivered across all regions, end markets, and product types.
Product Type
Consumables: 74% (+24.5% growth), Devices and services: 26% (+29.0% growth).
Geography
EMEAI: 42% (+32.7% CC), APAC: 24% (+38.3% CC), AMR: 34% (+16.9% CC).
End Market
Research¹: 68% (+22.1% YoY), Clinical: 13% (+52.9% YoY), BioPharma: 7% (+18.5% YoY), Applied Industrial: 12% (+27.4% YoY).
¹Includes Government and Distributors Revenue split by customer end market.
Delivering Against Our Strategic Pillars
Commercial Execution
- Research¹: £72.1m (+22.1% YoY)
Scaling national programmes (NIHR BioResource, UK Biobank), PRECISE 10,200 genome programme, GEL Cancer 2.0. Growing adoption in human disease, RNA, methylation, and single-cell research. - Clinical: £13.0m (+52.9% YoY)
Broader adoption in oncology and rare disease. Marie Curie Poland adopted ONT for tumour profiling. Paediatric leukaemia data shows faster, lower-cost results. ELRIN³ advanced its 10k-genome programme.
Innovation
- Applied Industrial: £12.9m (+27.4% YoY)
Increasing demand in synthetic biology and industrial applications. Plasmidsaurus expanded into new applications (RNA, large-genome plasmid sequencing, AAV analysis) and regions. - BioPharma: £7.6m (+18.5% YoY)
Growing adoption for biomanufacturing quality control workflows. Deployment by a major European BioPharma company supports QC processes across seven production sites.
Operational Excellence
New strategic clinical collaboration: Combines Cepheid's GeneXpert system with Oxford Nanopore's platform for infectious disease analysis.
Delivering Against Our Strategic Pillars (Continued)
Commercial Execution
- Differentiation in Research Applications¹
Information-rich data driving novel discoveries. DNA & RNA analysis tools upgraded. - Strong Roadmap to Increased Output, Reducing Price Per Genome
Improved flow cell and kit chemistries in development. Beta testing during H2 2025.
Innovation
- Expanding Menu of End-to-End Workflows
Accelerating utilisation by creating a menu of end-to-end workflows for Research, Clinical, Applied, and BioPharma customer needs. - Pioneering Proteomics with Nanopores
Protein ID and Barcoding in development. Early research on de novo protein sequencing.
Operational Excellence
Product Development to Drive Adoption in Applied Markets
Q-Line: GridION Q v2 in late-stage development. PromethION Q expected in 2026.
Dx: GridION Dx in late-stage development for regulated Clinical markets.
¹Includes Government and Distributors Revenue split by customer end market.
Delivering Against Our Strategic Pillars (Continued)
Commercial Execution
- Expanding Manufacturing and Logistics Capacity
Fitout of 56,000 sq. ft global fulfilment centre. Includes flow cell recycling, logistics, and device manufacturing. - Strengthened Manufacturing Capabilities
Introduced next-generation automated flow cell lines. Added automated sensor chip cleaning and recycling, and automated vial filling-labelling-capping for Biologics. Strengthened QA and supplier audits to ISO 13485 standards.
Innovation
- Improving the Customer Journey
Salesforce transformation project ongoing. Established a new Customer Experience Centre of Excellence. Upgraded Digital platform.
Operational Excellence
- Operational Efficiency Programme Completed
Reduction in workforce (~5%). On-track to deliver ~5% reduction in planned non-headcount related spend. Capital reallocated to high-priority growth areas.
¹Includes Government and Distributors Revenue split by customer end market.
Strong Foundations and Momentum Across the Business
- ? Strong execution against strategic priorities, with continued delivery of sustained, above-market growth.
- ⚙️ Refining commercial strategy; further details to be disclosed in Q4 2025.
- ? Focused on high-priority market segments that value the differentiated features of our platform.
Financial Performance
Nick Keher, CFO
Strong H1 Performance
Broad-based Growth and Improving Adj. EBITDA
- Revenue: £105.6m (H1 24: £84.1m)
- Revenue Growth: 28.0% CC (25.6% reported)
- Gross Margin: 58.2% (H1 24: 58.8%)
- Adjusted EBITDA: £(48.3)m (H1 24: £(61.7)m)
- Adj. OpEX: £(132.6)m (H1 24: £(131.0)m)
- Balance Sheet: £337.3m (31 Dec 24: £403.8m)
Geographic Revenue Breakdown:
APAC: £24.9m (+35.1% reported, +38.3% CC). AMR: £36.0m (+14.2% reported, +16.9% CC). EMEAI: £44.6m (+31.0% reported, +32.7% CC).
Revenue by Product Range:
PromethION range: £51m (H1 24: £32m). MinION range: £29m (H1 24: £28m). Other: £27m (H1 24: £24m).
New Pricing Model Changes Implemented
Financial Tailwinds Overall Ahead of Plan
- Revenue: Uplift balanced against timing, moderated by device volumes. Benefits expected from 2026. Strong consumable volume growth.
- Gross Margin: Margin benefit ahead of plan, driven by new pricing model. Uplift marginally offset by lower volumes. Potential for further margin benefit.
- Cashflow: Cash flow benefit ahead of plan due to capex adoption by customers. Expect further improvements as adoption builds.
Gross Margin Bridge
Shows a bridge from H1 24 (58.8%) to H1 25 (58.2%). Key movements include FX impacts, one-offs, underlying improvements, and customer mix. Positive underlying movements include increased customer capex purchases, ASP increases, and PromethION Flow Cell recycling. These are partially offset by currency, product mix, and a non-cash inventory charge of £3.3 million.
Solid Progress on Pathway to Breakeven
Adjusted EBITDA Improvement Driven by Strong Revenue Growth and Disciplined Cost Control
The company shows a trend of improving Adjusted EBITDA from £(66)m in FY23 H1 to £(48)m in FY25 H1, representing a +22% YoY improvement. Key drivers include strong gross profit growth, operational efficiency programmes, and good cost control.
Outlook: Reach breakeven by FY27. Key levers are cost control, gross margin expansion initiatives, and revenue growth underpinned by expansion in Applied markets.
Cash, Cash Equivalents and Other Liquid Assets
Cash Bridge FY24 to HY25
Total cash decreased from £403.8m at 31 Dec 2024 to £337.3m at 30 June 2025. Key movements include operating cash flows, working capital, assets at customers, purchase of PPE, tax, and net investing & financing activities.
Strong Cash Position Notes:
- £11m improvement in operating cash before working capital, including a restructuring charge of £5.2m.
- New pricing model reduced assets at customers.
- H1 working capital outflow reflects bonus payments, expected to normalise in H2.
- Tax inflow mainly due to R&D tax credit.
FY25 Guidance Reconfirmed
- Revenue Growth: 20-23% Constant Currency
- Gross Margin: ~59%
- Adjusted OpEx Growth: 3-4%
Guidance reflects US Federal funding, NIH, export control risks, pricing model benefits, and operational improvements. Adjusted EBITDA loss is expected to show YoY improvement versus 2024.
Financial Summary
- ? Strong broad-based revenue growth, ahead of end markets and full-year guidance.
- ? 22% improvement to adjusted EBITDA loss; pathway to breakeven on track.
- ? Meaningful improvement in cash profile driven by new pricing model; well capitalised to deliver goals.
Summary and Outlook
Gordon Sanghera, CEO
Unique Platform Benefits Driving Sustained, Above Market Growth
Richer Insights
Large cohort programmes establish biological value of novel information.
Rapid
Translational labs deploy where additional information and speed are mission critical.
Accessible & Affordable
Platform accessibility and affordability enable broader health system deployment.
Examples include collaborations on national precision medicine programmes, epigenetic datasets, and clinical applications.
Oxford Nanopore Today
Strong Foundations Built; Business Well Positioned for the Next 20 Years of Growth
- ? £200m+ Last 12-month revenue
- ? >125 Countries served
- ? >2,500 Patents
- ? >1,300 Employees
- ? >18,000 Publications
- ? >30% 5-year revenue CAGR
All numbers are as of 30 June 2025 unless stated otherwise.
20 Years In – A Marathon of Innovation and Realisation
The company's journey includes stages from prototype to product, continuous performance iteration, establishing an innovative user community, building global infrastructure, and establishing business in the research market.
Key achievements include innovating the 'impossible', breakthroughs in chemistry and ML for accuracy (up to 99.75%), a user community of over 100,000 members, and expansion into Applied markets.
Refinement of Commercial Strategy
Focus on Higher Priority Segments Where ONT Has High Potential to Disrupt or Differentiate
Serviceable Addressable Market Opportunity: $20-25B.
Breakdown by spend: non-NGS molecular (~$13-14B), NGS supplier (~$9-10B).
Breakdown by end markets: Other (~$1B), Biomanufacturing QC (~$4B), Research ($8-10B), Clinical (~$10B).
Focus on high-priority segments: Higher priority ($13-14B), Medium priority ($6-7B), Lower priority ($4B).
Summary and Outlook
Strong H1 25 Performance
- ? Strong, broad-based revenue growth; +28% CC.
- Differentiated technology platform underpins sustained, above-market growth.
- Progress on path to profitability; improving adjusted EBITDA loss YoY and sequentially.
2025 Guidance Reaffirmed
- Revenue growth of 20-23% CC.
- Gross margin ~59%.
- Adjusted OpEx growth ~3-4%.
Confident in Long-Term Trajectory
- Clear commercial strategy; focus on high-priority segments where ONT has potential to disrupt.
- Future growth in Research and Applied markets underpinned by innovation roadmap.
- On track to deliver medium-term targets.
Q&A
Appendix
H1 25 Revenue Split by Customer Type
- Research¹: £72.1m (+22.1%)
Customers funded by grants or public funds for research, e.g., academic research institutes. - Applied Industrial: £12.9m (+27.4%)
Customers utilising sequencing for industrial or service settings, e.g., manufacturing or outsourced synthetic biology. - Clinical: £13.0m (+52.9%)
Customers funded by reimbursement, using proven assays or developing new methods for clinical use, e.g., clinical labs for rare disease. - BioPharma: £7.6m (+18.5%)
Customers funded to develop, manufacture, and sell biopharmaceuticals, e.g., RNA vaccines, cell and gene therapy.
¹Includes Government and Distributors Revenue split by customer end market.
Unique Features and Benefits of the Technology Meet Unmet Customer Needs
| Oxford Nanopore Features | Benefit: Richer Insights | Benefit: Faster Results | Benefit: Accessible & Affordable |
|---|---|---|---|
| Sequence any length fragment from short to ultra-long | ✔️ | ||
| Direct/native DNA/RNA sequencing | ✔️ | ✔️ | |
| Real-time, fast data analysis | ✔️ | ||
| Scalable formats from small handheld to ultra-high output devices | ✔️ | ✔️ | |
| Cost effective. Low barriers to entry | ✔️ | ||
| Plug-and-play easy-to-use solutions | ✔️ | ✔️ |
Investing for Growth with Improved Cost Control
Financial table showing Revenue, Gross Profit, Adjusted R&D Expenses, Adjusted SG&A Expenses, Total Adjusted Costs, Depreciation & Amortisation, and Adjusted EBITDA for various periods.
Key Notes:
- Adjusted R&D spend declining vs 2024.
- Adjusted SG&A spend up +9% YoY, but only +3% since H2 25.
- Adjusted EBITDA loss improved in H1 2025, with scope for increased operational leverage.
- Continued progress in H1 25: Targeted restructuring program reducing headcount by ~5%. Process allows reallocation of capital to higher growth areas. Impact of restructure £4.2 million treated as adjusting item.
Revenue Breakdown by Regions
| Region | H1 2025 £m | H1 2024 £m | Reported Growth % | Constant Currency Growth % | Currency Impact % |
|---|---|---|---|---|---|
| AMR | 36.0 | 31.6 | 14.2% | 16.9% | (2.7)% |
| APAC | 24.9 | 18.4 | 35.1% | 38.3% | (3.2)% |
| EMEAI | 44.6 | 34.1 | 31.0% | 32.7% | (1.7)% |
| Total | 105.6 | 84.1 | 25.6% | 28.0% | (2.4)% |
Adjusted Expenses Reconciliation
Detailed breakdown of Research and Development expenses and Selling, General and Administrative expenses, including adjusting items such as social security taxes, amortisation of capitalised development costs, share-based payment expense, and restructuring costs.
Thank You
Oxford Nanopore Technologies plc. All rights reserved. Products are not intended for health assessment or disease diagnosis/treatment.
