Recent Business Highlights
- Delivered total revenue of
$40.6 million , reflecting continued instrument and consumables demand - SPRQ-Nx adoption built through the quarter, with over half of Revio consumables revenue tied to SPRQ-Nx and two-thirds of the Revio installed base opting to upgrade software for use of SPRQ-Nx by the end of the quarter
- Delivered 35 new Vega systems in the quarter, up 9% year-over-year, with more than 90% sold to new customers, and launched SPRQ-Nx for Vega in late August
- Partnered with
GeneDx to add long-read whole genome sequencing capabilities to its genome testing portfolio. The move is expected to deepen PacBio’s role in rare disease and supportPacBio's priority to grow clinical work - Strengthened PacBio’s presence in APAC through Berry Genomics’
Birth Defects Project , a major genomics study inChina . The project is expected to put HiFi genome sequencing at the center of large-scale research in the region - Expanded HiFi’s reach into large-scale population research – the
Department of Veterans Affairs awarded Sampled, a high-utilization Revio customer, a five-year contract to provide genomics analyses using long-read whole genome sequencing for the Million Veteran Program - Initiated a multi-year strategic collaboration with
Verily Health to combine HiFi long-read data with real-world clinical data at population scale. The datasets are expected to support discovery and AI model training on Verily’s Workbench platform, which serves more than 20,000 researchers, putting HiFi data in front of a large research community - Announced collaboration with TychoBio, an AI drug discovery company, to generate full-length RNA datasets with HiFi and Kinnex sequencing. We expect the data will be used to train AI models to predict RNA therapy efficacy and off-target effects, extending PacBio’s rare disease role toward therapy development
Jim Gibson has stepped down as Chief Financial Officer (CFO).Mark Van Oene has been appointed interim CFO andBill Meyer has been appointed Chief Accounting Officer (CAO) asPacBio engages in a search for a new CFO
“PacBio is entering an exciting phase as the investments we’ve made in our technology begin to unlock new opportunities,” said
Third quarter results:
| Q3 2026 | Q3 2025 | ||||
| Revenue(in millions) | |||||
| Consumable revenue(in millions) | |||||
| Instrument revenue(in millions) | |||||
| Service and other revenue(in millions) | |||||
| Revio™ system placements | 15 | 13 | |||
| Vega™ system placements | 35 | 32 | |||
| Annualized Revio pull-through per system | |||||
| Ending cash, cash equivalents, and investments(in millions) | |||||
Gross profit and margin, operating expenses, net loss, and net loss per share are reported on a GAAP and non-GAAP basis. The non-GAAP measures are described below and reconciled to the corresponding GAAP measures at the end of this release.
GAAP gross profit for the third quarter of 2026 was
GAAP operating expenses totaled
GAAP net loss for the third quarter of 2026 was
GAAP net loss per share for the third quarter of 2026 was
2026 Financial Outlook
Quarterly Conference Call Information
Management will host a quarterly conference call today at
About PacBio
PacBio (NASDAQ: PACB) is a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. Our products and technologies, which consist of our HiFi long-read sequencing systems, address solutions across a broad set of research applications, including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. For more information, please visit www.pacb.com and follow @PacBio.
PacBio products are provided for Research Use Only. Not for use in diagnostic procedures.
Statement Regarding Use of Non-GAAP Financial Measures
PacBio reports non-GAAP results for basic net income (loss) per share, net income (loss), gross margins, gross profit (loss) and operating expenses in addition to, and not as a substitute for, or because it believes that such information is superior to, financial measures calculated in accordance with GAAP. PacBio believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of PacBio’s non-GAAP financial measures as tools for comparison. For future periods PacBio is unable to reconcile non-GAAP gross margin and non-GAAP operating expenses without unreasonable effort because certain items that impact these measures are out of PacBio’s control or cannot be reasonably predicted at this time, and their probable significance cannot be determined.
PacBio's financial measures under GAAP include substantial charges that are listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release. PacBio excludes recurring charges from its non-GAAP financial statements, including amortization of acquired intangible assets, amortization of a patent license, interest expense related to the liability incurred in connection with the PGI settlement, and changes in fair value of contingent consideration, and further excludes infrequent and limited charges including impairment charges, restructuring-related expenses for discrete restructuring events, settlement charges, disposition of short-read assets, benefits from income taxes and other adjustments and rounding differences.
Management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance. In addition, management uses non-GAAP measures to compare PacBio’s performance relative to forecasts and strategic plans and to benchmark its performance externally against competitors.
PacBio encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. A reconciliation of PacBio’s non-GAAP financial measures to their most directly comparable financial measure stated in accordance with GAAP has been provided in the financial statement tables included in this press release.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements relating to PacBio’s initiatives as well as the expected financial impact and timing of these plans and initiatives, including PacBio's expectations regarding long-read sequencing and SPRQ-Nx; PacBio's expectations regarding its restructuring efforts; PacBio’s financial guidance and expectations for future periods; the expected benefits of PacBio’s collaborations and customer programs, including with TychoBio and Verily Health; new and continued reception of PacBio’s products and their expansion into new or existing markets; and the availability, uses, accuracy, coverage, advantages, quality or performance of, or benefits or expected benefits of using, PacBio products or technologies. Reported results and orders for any instrument system should not be considered an indication of future performance. You should not place undue reliance on forward-looking statements because they are subject to assumptions, risks, and uncertainties and could cause actual outcomes and results to differ materially from currently anticipated results, including, but not limited to, challenges inherent in developing, manufacturing, launching, marketing and selling new products, and achieving anticipated new sales; PacBio’s ability to realize the anticipated benefits of its collaborations; potential cancellation of existing instrument orders; assumptions, risks and uncertainties related to the ability to attract new customers and retain and grow sales from existing customers; risks related to PacBio's ability to successfully execute and realize the benefits of acquisitions; the impact of new, increased or enhanced tariffs and export restrictions; rapidly changing technologies and extensive competition in genomic sequencing; unanticipated increases in costs or expenses; high costs of computer memory components; interruptions or delays in the supply of components or materials for, or manufacturing of, PacBio products and products under development; potential product performance and quality issues and potential delays in development timelines; the possible loss of key employees, customers, or suppliers; customers and prospective customers curtailing or suspending activities using PacBio's products; third-party claims alleging infringement of patents and proprietary rights or seeking to invalidate PacBio's patents or proprietary rights; risks associated with international operations; and other risks associated with general macroeconomic conditions and global economic or political instability, including war and other international conflicts, such as the conflicts in the Middle East. Additional factors that could materially affect actual results can be found in PacBio's most recent filings with the Securities and Exchange Commission, including PacBio's most recent reports on Forms 8-K, 10-K, and 10-Q, and include those listed under the caption “Risk Factors.” These forward-looking statements are based on current expectations and speak only as of the date hereof; except as required by law, PacBio disclaims any obligation to revise or update these forward-looking statements to reflect events or circumstances in the future, even if new information becomes available.
The unaudited condensed consolidated financial statements that follow should be read in conjunction with the notes set forth in PacBio's Quarterly Report on Form 10-Q when filed with the Securities and Exchange Commission.
Contacts
Investors:
ir@pacb.com
Media:
pr@pacb.com
| Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenue: | |||||||||||||||
| Product revenue | $ | 34,002 | $ | 32,597 | $ | 98,486 | $ | 96,793 | |||||||
| Service and other revenue | 6,562 | 5,844 | 18,263 | 18,567 | |||||||||||
| Total revenue | 40,564 | 38,441 | 116,749 | 115,360 | |||||||||||
| Cost of Revenue: | |||||||||||||||
| Cost of product revenue(1) (4) (5) (8) | 21,795 | 19,204 | 62,711 | 65,559 | |||||||||||
| Cost of service and other revenue(1) | 5,116 | 3,078 | 14,540 | 11,709 | |||||||||||
| Amortization of acquired intangible assets | 183 | 183 | 549 | 4,711 | |||||||||||
| Loss on purchase commitment(2) | — | 75 | — | 4,167 | |||||||||||
| Total cost of revenue | 27,094 | 22,540 | 77,800 | 86,146 | |||||||||||
| Gross profit | 13,470 | 15,901 | 38,949 | 29,214 | |||||||||||
| Operating Expense: | |||||||||||||||
| Research and development(1) | 20,223 | 22,846 | 62,853 | 74,428 | |||||||||||
| Sales, general and administrative(1) (2) (4) | 29,416 | 31,099 | 93,962 | 107,442 | |||||||||||
| Impairment charges(3) | — | — | — | 15,000 | |||||||||||
| Settlement charges(4) | — | — | 15,400 | — | |||||||||||
| Gain on disposal of assets(5) | — | — | (45,796 | ) | — | ||||||||||
| Amortization of acquired intangible assets(6) | 833 | 833 | 2,499 | 363,708 | |||||||||||
| Change in fair value of contingent consideration(7) | — | — | — | (18,700 | ) | ||||||||||
| Total operating expense | 50,472 | 54,778 | 128,918 | 541,878 | |||||||||||
| Operating loss | (37,002 | ) | (38,877 | ) | (89,969 | ) | (512,664 | ) | |||||||
| Interest expense(9) | (2,057 | ) | (1,739 | ) | (5,907 | ) | (5,214 | ) | |||||||
| Other income, net | 1,482 | 2,999 | 5,525 | 11,989 | |||||||||||
| Loss before income taxes | (37,577 | ) | (37,617 | ) | (90,351 | ) | (505,889 | ) | |||||||
| Income tax provision | 269 | 383 | 511 | 116 | |||||||||||
| Net loss | $ | (37,846 | ) | $ | (38,000 | ) | $ | (90,862 | ) | $ | (506,005 | ) | |||
| Net loss per share: | |||||||||||||||
| Basic | $ | (0.12 | ) | $ | (0.13 | ) | $ | (0.29 | ) | $ | (1.69 | ) | |||
| Diluted | $ | (0.12 | ) | $ | (0.13 | ) | $ | (0.29 | ) | $ | (1.69 | ) | |||
| Weighted average shares outstanding used in calculating net loss per share: | |||||||||||||||
| Basic | 311,247 | 300,844 | 309,260 | 299,303 | |||||||||||
| Diluted | 311,247 | 300,844 | 309,260 | 299,303 | |||||||||||
(1) Balances for the three and nine months ended
(2) Balances for the three and nine months ended
(3) In-process research and development ("IPR&D") impairment charge during the nine months ended
(4) Balances for the nine months ended
(5) Balances for the nine months ended
(6) Balance for the nine months ended
(7) Change in fair value of contingent consideration during the nine months ended
(8) Balances for the three and nine months ended
(9) Interest expense for the three and nine months ended
| Unaudited Condensed Consolidated Balance Sheets | |||||||
| (in thousands) | 2026 | 2025 | |||||
| Assets | |||||||
| Cash and investments | $ | 199,418 | $ | 279,506 | |||
| Accounts receivable, net | 38,323 | 35,448 | |||||
| Inventory, net | 60,278 | 49,285 | |||||
| Prepaid expenses and other current assets | 9,802 | 10,793 | |||||
| Property and equipment, net | 29,277 | 24,146 | |||||
| Operating lease right-of-use assets, net | 39,409 | 41,695 | |||||
| Restricted cash | 1,662 | 1,552 | |||||
| Intangible assets, net | 12,164 | 15,124 | |||||
| 317,761 | 317,761 | ||||||
| Other long-term assets | 13,002 | 8,773 | |||||
| Total Assets | $ | 721,096 | $ | 784,083 | |||
| Liabilities and Stockholders' Equity (Deficit) | |||||||
| Accounts payable | $ | 10,920 | $ | 20,770 | |||
| Accrued expenses | 33,805 | 33,646 | |||||
| Deferred revenue | 21,573 | 19,865 | |||||
| Operating lease liabilities | 62,311 | 57,040 | |||||
| Convertible senior notes, net | 643,058 | 645,382 | |||||
| Other liabilities | 10,809 | 2,031 | |||||
| Stockholders' equity (deficit) | (61,380 | ) | 5,349 | ||||
| Total Liabilities and Stockholders' Equity (Deficit) | $ | 721,096 | $ | 784,083 | |||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| (in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| GAAP net loss | $ | (37,846 | ) | $ | (38,000 | ) | $ | (90,862 | ) | $ | (506,005 | ) | ||||
| Change in fair value of contingent consideration(1) | — | — | — | (18,700 | ) | |||||||||||
| Settlement charges(2) | — | — | 17,088 | — | ||||||||||||
| Amortization of acquired intangible assets | 1,016 | 1,016 | 3,048 | 9,160 | ||||||||||||
| Amortization of patent license(3) | 516 | — | 1,032 | — | ||||||||||||
| Disposition of short-read assets(4) | 204 | — | (44,675 | ) | — | |||||||||||
| Interest expense(5) | 316 | — | 685 | — | ||||||||||||
| Income tax benefit(6) | — | — | — | (546 | ) | |||||||||||
| Restructuring and related charges(7) | 2,962 | 137 | 2,962 | 394,888 | ||||||||||||
| Non-GAAP net loss | $ | (32,832 | ) | $ | (36,847 | ) | $ | (110,722 | ) | $ | (121,203 | ) | ||||
| GAAP basic net loss per share | $ | (0.12 | ) | $ | (0.13 | ) | $ | (0.29 | ) | $ | (1.69 | ) | ||||
| Change in fair value of contingent consideration(1) | — | — | — | (0.06 | ) | |||||||||||
| Settlement charges(2) | — | — | 0.06 | — | ||||||||||||
| Amortization of acquired intangible assets | — | — | 0.01 | 0.03 | ||||||||||||
| Disposition of short-read assets(4) | — | — | (0.14 | ) | — | |||||||||||
| Restructuring and related charges(7) | 0.01 | — | 0.01 | 1.32 | ||||||||||||
| Other adjustments and rounding differences | — | 0.01 | (0.01 | ) | — | |||||||||||
| Non-GAAP basic net loss per share | $ | (0.11 | ) | $ | (0.12 | ) | $ | (0.36 | ) | $ | (0.40 | ) | ||||
| GAAP gross profit | $ | 13,470 | $ | 15,901 | $ | 38,949 | $ | 29,214 | ||||||||
| Settlement charges(2) | — | — | 500 | — | ||||||||||||
| Amortization of acquired intangible assets | 183 | 183 | 549 | 4,711 | ||||||||||||
| Amortization of patent license(3) | 516 | — | 1,032 | — | ||||||||||||
| Disposition of short-read assets(4) | 204 | — | 1,121 | — | ||||||||||||
| Restructuring and related charges(7) | 275 | 71 | 275 | 12,446 | ||||||||||||
| Non-GAAP gross profit | $ | 14,648 | $ | 16,155 | $ | 42,426 | $ | 46,371 | ||||||||
| GAAP gross profit % | 33 | % | 41 | % | 33 | % | 25 | % | ||||||||
| Non-GAAP gross profit % | 36 | % | 42 | % | 36 | % | 40 | % | ||||||||
| GAAP total operating expense | $ | 50,472 | $ | 54,778 | $ | 128,918 | $ | 541,878 | ||||||||
| Change in fair value of contingent consideration(1) | — | — | — | 18,700 | ||||||||||||
| Settlement charges(2) | — | — | (16,588 | ) | — | |||||||||||
| Amortization of acquired intangible assets | (833 | ) | (833 | ) | (2,499 | ) | (4,449 | ) | ||||||||
| Disposition of short-read assets(4) | — | — | 45,796 | — | ||||||||||||
| Restructuring and related charges(7) | (2,687 | ) | (66 | ) | (2,687 | ) | (382,442 | ) | ||||||||
| Non-GAAP total operating expense | $ | 46,952 | $ | 53,879 | $ | 152,940 | $ | 173,687 | ||||||||
(1) Change in fair value of contingent consideration during the nine months ended
(2) Balances for the nine months ended
(3) Balances for the three and nine months ended
(4) Balances for the three and nine months ended
(5) Interest expense for the three and nine months ended
(6) A deferred income tax benefit during the nine months ended
(7) Restructuring and related charges during the three and nine months ended
