Oxford Nanopore Shares Tumble After Lowering Underlying Growth Outlook

Shares of Oxford Nanopore Technologies Plc plunged on Monday after the DNA-sequencing firm reported first-half revenue that missed expectations and narrowed its underlying full-year growth forecast, citing weakness in China and disruption in the Middle East.

The London-listed company's stock fell more than 14% in trading, reaching its lowest level since April 7, 2025, according to Investing.com data.

First-Half Revenue Misses Mark

In a trading update, Oxford Nanopore said revenue for the six months ended June 30 was below its own expectations. The company attributed the shortfall to several factors, including operational changes in China, regional disruption in the Middle East, and the timing of customer contracts in the Americas.

Key figures for the first half include:

• Revenue: Approximately £116.5 million
• Reported Growth: An increase of 11% year-over-year
• Constant Currency Growth: An increase of 12% year-over-year

By market segment, the company's Applied Markets division saw robust growth of approximately 22%, while its Research arm grew by about 5%. The company reported a cash and liquid investments position of approximately £234 million.

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Geographic Headwinds and Revised Outlook

The most significant challenges were regional. Revenue in China declined by approximately 16%, while sales in the Middle East fell by about 14%. This contrasted with strong performance in Europe, the Middle East, Africa, and India, where revenue grew by approximately 20%.

For the full year, Oxford Nanopore maintained its headline constant-currency revenue growth guidance of 21% to 25%. However, the company noted this now includes anticipated collaboration and licensing revenue, some of which it described as non-recurring. Excluding these opportunities, the company now expects underlying constant-currency growth of 16% to 25%, reflecting the first-half challenges.

Path to Profitability

Despite the revenue headwinds, the company reaffirmed its full-year gross margin guidance of approximately 62% and said it remains on track to achieve adjusted EBITDA breakeven during the first half of 2027.

"While first half revenue growth was below our expectations, we have continued to make good operational progress in the period, delivering further improvements in gross margin and disciplined cost control," said Chief Executive Francis Van Parys in a statement. He added that the company continues "to see encouraging momentum across our strategic growth markets."