Pacific Biosciences of California, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsPacific Biosciences is a life science technology company that designs, develops, and manufactures advanced long-read sequencing solutions, primarily its HiFi sequencing technology.
What they do
The company sells sequencing systems (Revio and Vega), consumables, and related services to academic and government research institutions, commercial testing labs, genome centers, public health labs, hospitals, CROs, pharmaceutical companies, and agricultural companies. Its core technology is HiFi long-read sequencing, which is used in applications such as human germline sequencing, plant and animal sciences, infectious disease, oncology, and rare disease diagnostics.
Revenue drivers
- Consumables — Recurring revenue from sequencing reagents and kits. In Q2 2026, consumable revenue was $20.1 million, representing 52% of total quarterly revenue.
- Instruments — One-time sales of sequencing systems (Revio and Vega). In Q2 2026, instrument revenue was $12.8 million, with 20 Revio and 26 Vega systems placed.
- Service and Other — Revenue from maintenance contracts, extended warranties, and other support. In Q2 2026, service and other revenue was $6.1 million, or 16% of total revenue.
Recent performance
For Q2 2026 (quarter ended June 30, 2026), total revenue was $39.0 million, down slightly from $39.8 million in Q2 2025. GAAP gross margin declined to 32% from 37%, primarily due to higher compute and memory costs, Vega manufacturing transition costs, and lower Revio average selling prices for strategic multi-system placements. GAAP net loss was $44.7 million, compared to $41.9 million a year earlier. The company ended Q2 2026 with $236.9 million in cash, cash equivalents, and investments.
Strategy
PacBio is focusing on commercializing its SPRQ-Nx chemistry, which delivers whole genome sequencing at a $345 list price per genome with enhanced methylation detection and an AI-powered consensus algorithm (DeepConsensus) co-developed with Google. The company is expanding clinical applications as demonstrated by publications in the New England Journal of Medicine and Nature Genetics showing HiFi long-read sequencing as an effective first-tier diagnostic for rare diseases. PacBio also initiated restructuring actions in Q2 2026 to streamline marketing and R&D, strengthen the go-to-market commercial organization, and improve cost discipline. Additionally, it is pursuing large population-scale programs, such as the Basecamp Research collaboration.
Risks
- Profitability Risk — The company has never been profitable and reported a net loss of $546.4 million in fiscal 2025; continued losses may require further expense reduction or financing.
- Debt Burden — As of March 31, 2023, long-term debt was $896.8 million; combined with negative shareholder equity of $33.2 million (June 30, 2026), the company faces significant liquidity and solvency risks.
- Reliance on Sole-Source Suppliers — Manufacturing of certain products, components, and sub-assemblies is outsourced to sole-source suppliers, creating vulnerability to supply disruptions or price increases.
- Tariff and Trade Exposure — Recent U.S. tariffs and potential retaliatory measures could increase costs or reduce demand, given the company's global customer base and supply chain.
Outlook
Management expects full-year 2026 revenue to be in the range of $155 million to $165 million. The company commenced the global commercial rollout of SPRQ-Nx chemistry and anticipates that new Revio and Vega placements, along with higher consumable pull-through, will drive growth. Management also noted that ongoing restructuring actions are intended to improve operational efficiency and cost discipline.