Key Highlights

  • Third quarter Revenue was USD 40.56 million against an estimate of USD 39.31 million and USD 38.4 million last year.
  • GAAP net loss was USD 0.12 per share against an estimate of USD 0.13, versus USD 0.13 last year.
  • Revio placements were 15 and Vega placements were 35, against 13 and 32 in the third quarter of 2025.
  • Full-year 2026 revenue guidance is USD 155 million to USD 160 million, and cash and investments were USD 199.4 million.

Pacific Biosciences of California, Inc. (NASDAQ:PACB) reported third quarter revenue of USD 40.56 million, against an estimate of USD 39.31 million and USD 38.4 million in the same quarter of 2025. GAAP net loss was USD 37.8 million, or USD 0.12 per share, compared with an estimate of a USD 0.13 loss per share and a USD 0.13 loss a year earlier. The quarter also brought a change in finance leadership, with the chief financial officer stepping down.

Revenue Mix and Placements

Consumable revenue was USD 20.8 million against USD 21.3 million a year earlier. Instrument revenue was USD 13.2 million against USD 11.3 million, and service and other revenue was USD 6.6 million against USD 5.8 million. The company placed 15 Revio systems against 13, and 35 Vega systems against 32. Management said more than 90% of the Vega systems went to new customers.

Annualized Revio pull-through per system was about USD 204,000, compared with about USD 236,000 in the third quarter of 2025. On the consumables side, management said over half of Revio consumables revenue was tied to SPRQ-Nx by quarter end, and that two-thirds of the Revio installed base had opted to upgrade software for use of the new chemistry. SPRQ-Nx for Vega launched in late August.

Profitability and Operating Costs

GAAP Gross Profit was USD 13.5 million, a gross Margin of 33%, against USD 15.9 million and 41% a year earlier. On a non-GAAP basis, gross profit was USD 14.6 million and margin was 36%, against USD 16.2 million and 42%. The company attributed the lower non-GAAP margin to higher memory costs and Vega Manufacturing transition costs.

GAAP operating expenses were USD 50.5 million against USD 54.8 million, and non-GAAP operating expenses were USD 47.0 million against USD 53.9 million. The company tied the lower figures mainly to reduced personnel costs from its restructuring initiatives. Non-GAAP net loss was USD 32.8 million, or USD 0.11 per share, compared with USD 36.8 million, or USD 0.12 per share, in the prior-year quarter.

Cash, Debt and Guidance

Cash, cash equivalents and investments were USD 199.4 million at September 30, against USD 298.7 million a year earlier and USD 279.5 million at December 31, 2025. Convertible senior notes, net, were USD 643.1 million, and stockholders' Deficit was USD 61.4 million. Inventory was USD 60.3 million, against USD 49.3 million at year end.

The company now guides to full-year 2026 revenue in a range of USD 155 million to USD 160 million. For the nine months, GAAP net loss was USD 90.9 million, or USD 0.29 per share, compared with USD 506.0 million, or USD 1.69 per share, in the first nine months of 2025.

Numbers in Context

Quarterly revenue of USD 40.56 million sits alongside a GAAP net loss of USD 0.12 per share, GAAP gross margin of 33% and cash and investments of USD 199.4 million.

Management pointed to several partnerships as part of its priorities. These include a collaboration with GeneDx to add long-read whole genome sequencing to its testing portfolio, a multi-year collaboration with Verily Health to combine HiFi data with real-world clinical data, and work with TychoBio on full-length RNA datasets for AI models. A Department of Veterans Affairs contract awarded to Sampled, a Revio customer, covers long-read genome analyses for the Million Veteran Program. The CEO named execution and prioritization as his focus, while an interim CFO and a chief accounting officer were appointed as the company searches for a permanent CFO.