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olivLaw · US equity research

PacBio PACB

Laboratory Analytical Instruments · SIC 3826 · Vertical: Laboratory Analytical Instruments (SIC 3826)

2.55USD+4.51% · 1 dayClose 04 Nov 2026

PacBio designs and manufactures long-read sequencing systems built on its HiFi technology, used in genomic research, rare disease diagnostics and oncology. The company is going through deep restructuring and a shift from instrument sales toward consumables, while half-year revenue stays below 80 million dollars.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, PacBio (PACB) stock was 2.55 USD (+4.51% on the day), with market capitalisation 792.6 m USD, dividend yield 0.00%, beta 1.94, 52-week range 1.11–2.90 USD. Latest reported quarter (Q2 2026): revenue of 39.0 m USD (−1.9% YoY), net income of -44.7 m USD, diluted EPS -0.14 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
792.6 m USD
shares as of 31 Jul 2026
P/E (TTM)
unavailable
Diluted EPS TTM -0.43 · TTM to 30 Jun 2026
E/P (TTM)
-17.01%
TTM to 30 Jun 2026
Dividend yield
0.00%
DPS 12m 0.00
Beta (2y)
1.94
Volatility (1y) 95%
52-week range
1.112.90

Price history

Loading chart…

Technical reading

RSI (14)
58.4
strong (55–70)
Bollinger (20, 2)
1.63 – 2.86
in the upper half of the band · %B 0.75 · band width 54.5%
SMA 50 / 200
1.89 / 1.63
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.18 / 0.17
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−11.1%−1.1%−10.1 pp—
3 months+96.2%−0.5%+96.6 pp—
6 months+49.1%+4.4%+44.7 pp—
Year to date+36.4%+12.3%+24.0 pp—
1 year+27.5%+13.5%+14.0 pp+15.7%
3 years−64.7%+76.4%−141.1 pp+1.8%
5 years−91.3%+63.7%−154.9 pp—
Max drawdown (1y)
−58.4%
22 Jan 2026 → 12 Aug 2026
Max drawdown (5y)
−96.9%
08 Nov 2021 → 27 May 2025
Compound annual growth (5y)
−38.6%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
39.0 m USD
−1.9% YoY
Net income
-44.7 m USD
unavailable YoY
Diluted EPS
-0.14
unavailable YoY
net / operating
-114.7% / -114.4%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue40.0 m39.2 m37.2 m39.8 m38.4 m44.6 m37.2 m39.0 m
Cost of revenue30.0 m29.2 m38.5 m25.1 m22.5 m28.1 m24.3 m26.4 m
Gross profit10.0 m10.1 m-1.4 m14.7 m15.9 m16.6 m12.8 m12.6 m
Research & development25.5 m27.5 m29.1 m22.5 m22.8 m22.9 m19.6 m23.0 m
SG&A43.7 m41.6 m40.2 m36.2 m31.1 m34.1 m31.2 m33.4 m
Operating income-64.1 m-153.0 m-428.9 m-44.9 m-38.9 m-41.2 m-8.4 m-44.6 m
Interest expense3.5 m2.8 m1.7 m1.7 m1.7 m1.7 m1.7 m2.1 m
Pre-tax income-60.7 m2.7 m-426.4 m-41.9 m-37.6 m-40.2 m-8.1 m-44.7 m
Income tax0316.0 k-302.0 k35.0 k383.0 k202.0 k184.0 k58.0 k
Net income-60.7 m2.4 m-426.1 m-41.9 m-38.0 m-40.4 m-8.3 m-44.7 m
Diluted EPS-0.220.01 ≈-1.44-0.14-0.13-0.13 ≈-0.03-0.14
Operating cash flow-45.5 m ≈-30.7 m-44.1 m-29.4 m ≈-18.7 m ≈-19.1 m-44.7 m-35.6 m ≈
Capex-787.0 k ≈1.6 m1.4 m550.0 k ≈-86.0 k ≈861.0 k3.0 m1.6 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue78.6 m90.9 m78.9 m130.5 m128.3 m200.5 m154.0 m160.0 m
Revenue YoY−15.9%+15.6%−13.2%+65.4%−1.7%+56.3%−23.2%+3.9%
Net income-102.6 m-84.1 m29.4 m-181.2 m-314.2 m-306.7 m-309.9 m-546.4 m
Net income YoYunavailableunavailableunavailable−716.3%unavailableunavailableunavailableunavailable
Diluted EPS-0.76-0.550.17-0.89-1.40-1.21-1.59-1.82
Diluted EPS YoYunavailableunavailableunavailable−623.5%unavailableunavailableunavailableunavailable
net %-130.4%-92.6%37.3%-138.9%-244.9%-153.0%-201.2%-341.5%
Free cash flow-68.3 m-81.1 m18.5 m-117.1 m-280.0 m-268.0 m-212.2 m-113.9 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
63.7 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
5.3 m USD
Total assets
784.1 m USD
Debt / equity
unavailable
Current ratio
5.15x
ROE
-213.5%
ROA
-53.4%
FCF margin
-71.2%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
200.5 m
2024
154.0 m
2025
160.0 m

SEC (XBRL)· 25 Feb 2026verified

Cost of revenue
2023
147.7 m
2024
116.7 m
2025
114.2 m

SEC (XBRL)· 25 Feb 2026verified

Gross profit
2023
52.8 m
2024
37.3 m
2025
45.8 m

SEC (XBRL)· 25 Feb 2026verified

Research & development
2023
187.2 m
2024
134.9 m
2025
97.3 m

SEC (XBRL)· 25 Feb 2026verified

SG&A
2023
169.8 m
2024
175.0 m
2025
141.5 m

SEC (XBRL)· 25 Feb 2026verified

Operating income
2023
-334.5 m
2024
-474.3 m
2025
-553.9 m

SEC (XBRL)· 25 Feb 2026verified

Interest expense
2023
14.3 m
2024
13.4 m
2025
7.0 m

SEC (XBRL)· 25 Feb 2026verified

Pre-tax income
2023
-318.2 m
2024
-309.5 m
2025
-546.1 m

SEC (XBRL)· 25 Feb 2026verified

Income tax
2023
-11.4 m
2024
316.0 k
2025
318.0 k

SEC (XBRL)· 25 Feb 2026verified

Net income
2023
-306.7 m
2024
-309.9 m
2025
-546.4 m

SEC (XBRL)· 25 Feb 2026verified

Diluted EPS
2023
-1.21
2024
-1.59
2025
-1.82

SEC (XBRL)· 25 Feb 2026verified

Weighted average diluted shares
2023
253.6 m
2024
288.4 m
2025
300.0 m

SEC (XBRL)· 25 Feb 2026verified

Dividend per share
2023
0.00
2024
0.00
2025
0.00

SEC (XBRL)· 25 Feb 2026verified

Balance sheet · USD

Cash
2023
179.9 m
2024
55.4 m
2025
63.7 m

SEC (XBRL)· 25 Feb 2026verified

Receivables
2023
36.6 m
2024
27.5 m
2025
35.4 m

SEC (XBRL)· 25 Feb 2026verified

Inventories
2023
56.7 m
2024
58.8 m
2025
49.3 m

SEC (XBRL)· 25 Feb 2026verified

Current assets
2023
742.0 m
2024
495.7 m
2025
375.1 m

SEC (XBRL)· 25 Feb 2026verified

Property, plant & equipment, net
2023
36.4 m
2024
30.5 m
2025
24.1 m

SEC (XBRL)· 25 Feb 2026verified

Goodwill
2023
462.3 m
2024
317.8 m
2025
317.8 m

SEC (XBRL)· 25 Feb 2026verified

Intangibles (excl. goodwill)
2023
457.0 m
2024
389.6 m
2025
15.1 m

SEC (XBRL)· 25 Feb 2026verified

Total assets
2023
1.7 bn
2024
1.3 bn
2025
784.1 m

SEC (XBRL)· 25 Feb 2026verified

Accounts payable
2023
15.1 m
2024
16.6 m
2025
20.8 m

SEC (XBRL)· 25 Feb 2026verified

Short-term debt
2023
490.0 k
2024
0
2025
—

SEC (XBRL)· 17 Mar 2025verified

Long-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 28 Feb 2023verified

Current liabilities
2023
95.0 m
2024
66.3 m
2025
72.8 m

SEC (XBRL)· 25 Feb 2026verified

Total liabilities
2023
1.0 bn
2024
753.9 m
2025
778.7 m

SEC (XBRL)· 25 Feb 2026verified

Equity
2023
701.3 m †
2024
506.6 m †
2025
5.3 m †

SEC (XBRL)· 25 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
-259.2 m
2024
-206.1 m
2025
-111.2 m

SEC (XBRL)· 25 Feb 2026verified

Capex
2023
8.8 m
2024
6.2 m
2025
2.7 m

SEC (XBRL)· 25 Feb 2026verified

Free cash flow
2023
-268.0 m ≈
2024
-212.2 m ≈
2025
-113.9 m ≈

SEC (XBRL)· 25 Feb 2026derived

Investing cash flow
2023
4.6 m
2024
124.0 m
2025
115.4 m

SEC (XBRL)· 25 Feb 2026verified

Financing cash flow
2023
108.9 m
2024
-43.0 m
2025
3.4 m

SEC (XBRL)· 25 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
3.9%
computed by olivLawFY 2025
Revenue CAGR 3Y
7.6%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
15.2%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
36.4%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
unavailable
input data missing
EBIT margin
-83.5%
computed by olivLawTTM to 30 Jun 2026
Net margin
-82.5%
computed by olivLawTTM to 30 Jun 2026
FCF margin
-77.5%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
-929.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
-16.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
-19.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
insufficient data
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
-18.2x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
4.9x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
4.0x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.9x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
-118.1 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
5.4 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
-123.4 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
73 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
207 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
62 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
218 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
792.6 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-17.0%
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
P/S
5.0x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-15.6%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
0.0%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 5 of at least 6
  • score weight coverage: 33.3% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

2.55 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 792.6 m USD

Key indicators

Market capitalisation
792.6 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
EV/EBITDA
unavailable
input data missing
ROE
-929.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
-82.5%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
3.9%
computed by olivLawFY 2025
Dividend yield
0.0%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 31 Jul 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 2160derived 157

Score by group

33% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the base of the ratio is not positive

no valuation method could be computed

Multiple comparisons use the SIC vertical: Laboratory Analytical Instruments (SIC 3826)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-82.5%26 (vs peers)19%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth7.6%64 (on a fixed band)25%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-18.2x0 (on a fixed band)19%
Current ratio · Balance sheet4.9x100 (on a fixed band)13%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation-15.6%0 (on a fixed band)25%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet40/100 · 2/3 factors with a value
  • Growth· partial64/100 · 1/2 factors with a value
  • Quality· partial26/100 · 1/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partial0/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Pacific Biosciences of California, Inc. (PACB). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 160.0 m USD in 2025; YoY growth 3.9%; net margin -82.5%; ROE -929.3%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 4.9x

What contradicts it

  • Net margin: -82.5%
  • Interest coverage: -18.2x
  • FCF yield: -15.6%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Laboratory Analytical Instruments (SIC 3826) · same industry (4-digit SIC) · compared with 20 companies

Multiples and returns vs the median

P/E
—
vertical median 38.8x
EV/EBITDA
—
vertical median 26.6x
P/S
5.0x
vertical median 6.6x
below median (−24.8%)
P/B
—
vertical median 2.5x
ROE
-929.3%
vertical median -23.2%
below median
Net margin
-82.5%
vertical median -11.9%
below median
EBIT margin
-83.5%
vertical median -10.0%
below median
Revenue YoY
3.9%
vertical median 2.1%
above median (+86.8%)
Net debt/EBITDA
—
vertical median 3.3x
Dividend yield
0.0%
vertical median 0.2%
below median (−100.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
AAgilent Technologies, Inc.49.9 bn34.921.0%19.5%+6.7%+15% / +39%
WATWaters Corporation45.9 bn116.61.9%3.6%+7.0%+16% / +67%
MTDMettler-Toledo International Inc.34.5 bn38.8—21.9%+4.0%+17% / +58%
ILMNIllumina, Inc.34.3 bn38.832.4%19.7%−0.7%+72% / +128%
RVTYRevvity, Inc17.8 bn76.03.2%8.2%+3.7%+53% / +79%
AVTRAvantor, Inc.10.6 bn31.55.9%5.1%−3.4%+33% / −26%
BRKRBruker Corporation9.7 bn—-3.4%-2.0%+2.1%+31% / −2%
TXG10x Genomics, Inc.8.6 bn—-9.4%-12.2%+5.2%+259% / +55%
PACBPacific Biosciences of California, Inc.792.6 m—-929.3%-82.5%+3.9%+27% / −65%
CTKBCytek Biosciences, Inc.769.0 m—-23.2%-39.1%+0.5%+4% / −15%
MASS908 Devices Inc.457.6 m—-25.2%-57.0%+17.7%+74% / +39%
NAUTNautilus Biotechnology, Inc.291.7 m—-41.0%—unavailable+2% / −17%
QTRXQuanterix Corporation143.8 m—-46.5%-80.2%+1.1%−58% / −87%
SEERSeer, Inc.94.1 m—-26.4%-478.0%+17.0%−11% / +6%
HBIOHarvard Bioscience, Inc.39.2 m—-89.9%-11.9%−8.1%+13% / −80%
PRPOPrecipio, Inc.35.0 m—-9.0%-4.5%+29.8%−20% / +187%
EYPTEyePoint, Inc.34.1 m—-148.7%-10,994.7%−27.5%−97% / −94%
BNGOBionano Genomics, Inc.14.0 m—-83.6%-106.6%−7.4%−36% / −99%
ASTCAstrotech Corporation9.1 m—-75.4%-1,580.2%−8.7%+41% / −44%
BIOBio-Rad Laboratories, Inc.—10.014.3%39.5%+0.7%+17% / +25%
RPIDRapid Micro Biosystems, Inc.——-141.6%-145.6%+19.7%−84% / −42%

1- and 3-year price returns: for PACB from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).

    In brief

    PacBio designs and manufactures long-read sequencing systems built on its HiFi technology, used in genomic research, rare disease diagnostics and oncology. The company is going through deep restructuring and a shift from instrument sales toward consumables, while half-year revenue stays below 80 million dollars.12

    SWOT

    Strengths

    • HiFi technology delivers long and accurate reads, supported by recent clinical publications on rare disease diagnostics.
    • The recurring consumables base is growing, and the expanding Revio and Vega installed base supports repeat revenue.
    • The non-exclusive license and cash from the short-read asset sale strengthen liquidity.

    Weaknesses

    • Persistent net losses and no expected profitability in 2026 limit financial flexibility.
    • Instrument sales are volatile and depend on academic budgets that are hard to predict.
    • Gross margins fell in the second quarter of 2026 under cost pressure and lower prices on multi-system placements.

    Opportunities

    • If SPRQ-Nx lowers sequencing cost, adoption in large studies and clinical labs could accelerate.
    • Data partnerships and AI-assisted interpretation could raise the platform's value.
    • Population-scale contracts, such as one with an AI research company, could bring significant order volume.

    Threats

    • Cuts to US research funding could delay instrument orders.
    • Tariffs and trade restrictions could raise component and manufacturing costs.
    • Competitors with cheaper platforms could limit the company's ability to hold prices.

    Risks

    • Lack of profitabilityhigh

      The company expects losses and negative operating cash flow for the foreseeable future, which could affect how it funds operations.1

    • Dependence on academic budgetshigh

      Instrument orders depend on research equipment funding, and delays could hit quarterly revenue.1

    • Leadership changemedium

      The change of chief executive in August 2026 alongside restructuring could disrupt operations and strategy execution.2

    • Impairment and amortizationmedium

      Accelerated amortization and impairments could generate further accounting charges and weigh on results.1

    • Single-source supplierslow

      Some components are sole or single sourced, which could delay production if a supplier fails.1

    Investment thesis

    What would need to be true (bull case)

    • If clinical HiFi adoption grows and cost per genome falls, consumables could become a steadier and more profitable revenue stream.
    • Publications in leading medical journals could support demand in rare disease diagnostics.
    • The restructuring could lower operating costs and move the company closer to profitability.

    What would break the thesis

    • Persistent net losses and no expected profitability in 2026 could put pressure on liquidity.
    • The decline in backlog and instrument sales shows demand from academic customers is still fragile.
    • Competition from short-read platforms and new entrants could limit growth and margins.

    What to watch

    • Pace of SPRQ-Nx adoption and consumables trendQ3 2026
    • Delivery of the 30 to 40 million dollar savings target2027
    • Achievement of the 2026 revenue guidancenext 10-K
    • Trend in non-GAAP gross margin after the Vega manufacturing transitionQ3 2026

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).

    The business

    PacBio (NASDAQ: PACB) centres its activity on SMRT technology and HiFi sequencing, which produces long and highly accurate reads of DNA. The offering includes the Revio and Vega instruments, SMRT Cells, reagent kits and services, with customers ranging from academic institutions and testing laboratories to hospitals and pharmaceutical companies.1

    On January 30, 2026, the company sold to Illumina Cambridge Limited assets tied to its short-read DNA sequencing technology for 50.0 million dollars in cash, keeping a non-exclusive license to certain intellectual property.1

    In 2025 revenue was split between consumables, instruments and services, and the first half of 2026 showed consumables growing while Vega instrument sales declined, according to the quarterly reports.12

    Segments

    Consumables

    Consumables (SMRT Cells, reagent kits and Kinnex kits) were the main growth driver, at about 82.0 million dollars in 2025 according to the annual report. The company says expanding the Revio and Vega installed base could support this trend.1

    Instruments

    Instrument sales fell in 2025, mainly because fewer Revio systems were sold, while Vega systems partly offset the decline. The company says academic equipment funding remains uncertain and instrument revenue may fluctuate.1

    Service and other revenue

    Service revenue rose in 2025, mainly due to Revio service contracts, showing a growing recurring component of the portfolio.1

    Market context

    The addressed market covers human genomics research, plant and animal sciences, microbiology and oncology. The company states that clinical whole-genome sequencing offers a significant opportunity, although adoption by early customers is slow and sales cycles are long.1

    Backlog declined from 58.6 million dollars at the end of 2024 to 49.2 million dollars at the end of 2025, and the company expects to convert about 80% of it into revenue in 2026.1

    Trends

    • Clinical demand for long-read sequencingtailwind

      Publications in 2026 on rare disease diagnostics and use in LDT laboratories could support consumables growth if clinical adoption expands.23

    • Academic and government research fundingheadwind

      Uncertainty over US academic and government funding has slowed instrument orders and could continue to do so.1

    • Cost reduction and restructuringmixed

      The 2026 restructuring plan targets annualized operating expense savings of 30 to 40 million dollars, which could improve profitability if executed well.2

    • Component cost pressureheadwind

      Higher compute and memory costs, together with the Vega manufacturing transition, reduced non-GAAP gross margin in the second quarter of 2026.3

    Competitive position

    The company operates in a highly competitive market where short-read sequencing and other long-read platforms compete for the same research and clinical customers. The annual report stresses that competitive intensity is high.1

    PacBio's differentiation rests on HiFi read accuracy and length, and on detecting structural variants and methylation in a single workflow, advantages the company argues against existing technologies.1

    • IlluminaILMN

      Dominant provider of short-read sequencing; bought the PacBio short-read assets in 2026, which changes the competitive dynamics.1

    • Oxford Nanopore Technologies

      Long-read competitor mentioned in the context of alternative sequencing platforms; not listed with a confirmed US ticker in the sources.

    • Short-read sequencing platforms

      Existing short-read technologies are used by many customers as the benchmark for HiFi accuracy and cost.1

    • Sequencing service providers

      Third-party labs that sequence samples on PacBio systems can also act as alternatives for customers who do not buy their own instruments.1

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    • Current report04 Nov 2026
      Results of operations · Departure or appointment of officers · Financial statements and exhibits
    • Quarterly report06 Aug 2026
    • Current report05 Aug 2026
      Results of operations · Exit or disposal costs · Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
    • Current report09 Jul 2026
      Departure or appointment of officers
    • Current report04 Jun 2026
      Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
    • Quarterly report08 May 2026
    • Current report07 May 2026
      Results of operations · Financial statements and exhibits
    • Proxy statement23 Apr 2026
    • Current report06 Mar 2026
      Departure or appointment of officers · Regulation FD disclosure
    • Current report05 Mar 2026
      Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / PacBio · 25 Feb 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / PacBio · 06 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / PacBio · 05 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.