Pacific Biosciences of California Inc
NASDAQ:PACB
Pacific Biosciences of California Inc
Pacific Biosciences of California, Inc. engages in the development, manufacture and sale of an integrated platform for genetic analysis. The company is headquartered in Menlo Park, California and currently employs 728 full-time employees. The company went IPO on 2010-10-27. The firm designs, develops and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. The firm has developed its Single Molecule, Real-Time (SMRT) technology, which enables single molecule, real-time detection of nucleic acid sequences, to address many of the limitations of previous sequencing technologies. The Company’s products include Sequel, Sequel II and Sequel IIe instruments and SMRT Cell 8M, which together can sequence up to approximately eight million deoxyribonucleic acid (DNA) molecules simultaneously, and the previous generation Sequel instrument and Sequel SMRT Cell 1M, which together conduct, monitor, and analyze single molecule biochemical reactions in real time. The firm's Sequel IIe System increases computational capacity and is designed to enable customers to generate PacBio HiFi reads.
Pacific Biosciences of California, Inc. engages in the development, manufacture and sale of an integrated platform for genetic analysis. The company is headquartered in Menlo Park, California and currently employs 728 full-time employees. The company went IPO on 2010-10-27. The firm designs, develops and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. The firm has developed its Single Molecule, Real-Time (SMRT) technology, which enables single molecule, real-time detection of nucleic acid sequences, to address many of the limitations of previous sequencing technologies. The Company’s products include Sequel, Sequel II and Sequel IIe instruments and SMRT Cell 8M, which together can sequence up to approximately eight million deoxyribonucleic acid (DNA) molecules simultaneously, and the previous generation Sequel instrument and Sequel SMRT Cell 1M, which together conduct, monitor, and analyze single molecule biochemical reactions in real time. The firm's Sequel IIe System increases computational capacity and is designed to enable customers to generate PacBio HiFi reads.
Revenue Miss & Guidance: Q3 revenue came in at $38.4 million, slightly below expectations due to lower Vega shipments in Europe and weaker instrument ASPs. Full-year revenue guidance was narrowed to $155–160 million, at the low end of the previous range.
Consumables Strength: Consumable revenue hit a record $21.3 million, up 15% year-over-year, and now represents 55% of total revenue, highlighting strong adoption of PacBio's long-read sequencing technology.
Gross Margin Improvement: Non-GAAP gross margin reached 42%, the highest since 2022, driven by the mix shift toward consumables and cost reductions in manufacturing.
Cash Burn Reduction: Q3 cash burn improved sequentially to $16 million, with full-year expected cash burn of $115 million—over $70 million better than 2024.
Product & Clinical Milestones: Regulatory approval in China for the Sequel II CNDx system marks the first clinical-grade long-read sequencer clearance. New chemistry SPRQ-Nx is expected to lower sequencing costs and improve gross margins.
2026 Outlook: Management expects a challenging funding environment in 2026, especially for academic customers, but sees momentum in clinical and population-scale genomics projects.
Q4 Growth Expected: Sequential revenue growth of about 10% is forecast for Q4, with increased instrument placements and continued consumable strength.
