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(Sharecast News) - Niox Group reported a strong financial performance for 2025 on Tuesday, with revenue and earnings ahead of market expectations, as the medical device group benefited from robust demand across its clinical and research businesses and successfully launched its next-generation Niox PRO device.
The AIM-traded company said in a trading update that unaudited revenue for the year ended 31 December rose 17% to 48.7m, compared with 41.8m in 2024, exceeding consensus expectations of 47.2m.
Adjusted EBITDA increased 21% to around 16.7m, ahead of market forecasts of 15.9m, reflecting strong operational leverage and higher volumes.
Clinical revenue grew 7% to approximately 38.6m, supported by a resilient installed base and high levels of recurring test kit income, which continued to account for 92% of clinical sales.
Niox said underlying demand remained robust, with the transition to a direct US sales model, the launch of Niox PRO and the emerging adoption of FeNO testing in COPD expected to support a return to stronger growth in this segment.
Research revenue rose sharply by 77% to around 10.1m, driven by a surge in pharmaceutical company-sponsored clinical trials using FeNO testing in both asthma and COPD.
The company cautioned that the level of research activity was unlikely to be sustained, noting that research revenues had historically been more volatile and are expected to normalise in future years.
Gross margin for the year was 69%, around three percentage points lower than in 2024, reflecting a higher mix of device-heavy research sales.
Despite that, adjusted EBITDA margins improved to 34% from 33% a year earlier.
Niox ended the year with a strong balance sheet, holding 19.9m of cash and no bank debt, compared with 10.9m at the end of 2024.
The increase came despite the payment of a 5m dividend to shareholders during the year.
During the period, the company successfully introduced its next-generation Niox PRO device, with the first commercial sale completed in December, marking a key milestone in the evolution of its product portfolio.
"2025 has been another year of strong progress for Niox, with continued growth in our installed base and recurring revenues across our key markets," said chief executive officer Jonathan Emms.
He added that the group entered 2026 with close to 20m in cash, good commercial momentum and a clear focus on driving further adoption of FeNO testing worldwide.
Niox said it expected to publish its preliminary results for the year ended 31 December in late March.
At 1346 GMT, shares in Niox Group were down 2.76% at 66.9p.
Reporting by Josh White for Sharecast.com.