olivLaw · US equity research
PacBio PACB
Laboratory Analytical Instruments · SIC 3826 · Vertical: Laboratory Analytical Instruments (SIC 3826)
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The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).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.
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
| Company | S&P 500 | vs S&P 500 | Vertical 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 | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 40.0 m | 39.2 m | 37.2 m | 39.8 m | 38.4 m | 44.6 m | 37.2 m | 39.0 m |
| Cost of revenue | 30.0 m | 29.2 m | 38.5 m | 25.1 m | 22.5 m | 28.1 m | 24.3 m | 26.4 m |
| Gross profit | 10.0 m | 10.1 m | -1.4 m | 14.7 m | 15.9 m | 16.6 m | 12.8 m | 12.6 m |
| Research & development | 25.5 m | 27.5 m | 29.1 m | 22.5 m | 22.8 m | 22.9 m | 19.6 m | 23.0 m |
| SG&A | 43.7 m | 41.6 m | 40.2 m | 36.2 m | 31.1 m | 34.1 m | 31.2 m | 33.4 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 expense | 3.5 m | 2.8 m | 1.7 m | 1.7 m | 1.7 m | 1.7 m | 1.7 m | 2.1 m |
| Pre-tax income | -60.7 m | 2.7 m | -426.4 m | -41.9 m | -37.6 m | -40.2 m | -8.1 m | -44.7 m |
| Income tax | 0 | 316.0 k | -302.0 k | 35.0 k | 383.0 k | 202.0 k | 184.0 k | 58.0 k |
| Net income | -60.7 m | 2.4 m | -426.1 m | -41.9 m | -38.0 m | -40.4 m | -8.3 m | -44.7 m |
| Diluted EPS | -0.22 | 0.01 ≈ | -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 m | 1.4 m | 550.0 k ≈ | -86.0 k ≈ | 861.0 k | 3.0 m | 1.6 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 year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 78.6 m | 90.9 m | 78.9 m | 130.5 m | 128.3 m | 200.5 m | 154.0 m | 160.0 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 m | 29.4 m | -181.2 m | -314.2 m | -306.7 m | -309.9 m | -546.4 m |
| Net income YoY | unavailable | unavailable | unavailable | −716.3% | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -0.76 | -0.55 | 0.17 | -0.89 | -1.40 | -1.21 | -1.59 | -1.82 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | −623.5% | unavailable | unavailable | unavailable | unavailable |
| 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 m | 18.5 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
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 78.9 m | 130.5 m | 128.3 m | 200.5 m | 154.0 m | 160.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | 46.3 m | 71.7 m | 79.3 m | 147.7 m | 116.7 m | 114.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | 32.6 m | 58.9 m | 49.0 m | 52.8 m | 37.3 m | 45.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Research & development | 64.2 m | 112.9 m | 193.0 m | 187.2 m | 134.9 m | 97.3 m | SEC (XBRL)· 25 Feb 2026verified |
| SG&A | 72.8 m | 124.1 m | 160.9 m | 169.8 m | 175.0 m | 141.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | -104.4 m | -210.4 m | -307.2 m | -334.5 m | -474.3 m | -553.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Interest expense | 267.0 k | 12.5 m | 14.7 m | 14.3 m | 13.4 m | 7.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Pre-tax income | 29.4 m | -274.9 m | -314.2 m | -318.2 m | -309.5 m | -546.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | — | -93.6 m | 0 | -11.4 m | 316.0 k | 318.0 k | SEC (XBRL)· 25 Feb 2026verified |
| Net income | 29.4 m | -181.2 m | -314.2 m | -306.7 m | -309.9 m | -546.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | 0.17 | -0.89 | -1.40 | -1.21 | -1.59 | -1.82 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 175.0 m | 204.1 m | 224.6 m | 253.6 m | 288.4 m | 300.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Dividend per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | SEC (XBRL)· 25 Feb 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 81.6 m | 460.7 m | 325.1 m | 179.9 m | 55.4 m | 63.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Receivables | 16.8 m | 24.2 m | 18.8 m | 36.6 m | 27.5 m | 35.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | 14.2 m | 24.6 m | 50.4 m | 56.7 m | 58.8 m | 49.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 355.6 m | 1.1 bn | 852.1 m | 742.0 m | 495.7 m | 375.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 24.9 m | 32.5 m | 41.6 m | 36.4 m | 30.5 m | 24.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Goodwill | — | 410.0 m | 410.0 m | 462.3 m | 317.8 m | 317.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | — | 411.0 m | 410.2 m | 457.0 m | 389.6 m | 15.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Total assets | 414.0 m | 2.0 bn | 1.8 bn | 1.7 bn | 1.3 bn | 784.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 3.6 m | 11.0 m | 12.0 m | 15.1 m | 16.6 m | 20.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Short-term debt | — | 1.6 m | 1.8 m | 490.0 k | 0 | — | SEC (XBRL)· 17 Mar 2025verified |
| Long-term debt | — | 896.1 m | 896.7 m | — | — | — | SEC (XBRL)· 28 Feb 2023verified |
| Current liabilities | 38.5 m | 71.7 m | 263.3 m | 95.0 m | 66.3 m | 72.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 78.5 m | 1.2 bn | 1.2 bn | 1.0 bn | 753.9 m | 778.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 335.5 m † | 791.0 m † | 562.9 m † | 701.3 m † | 506.6 m † | 5.3 m † | SEC (XBRL)· 25 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 19.5 m | -111.2 m | -263.2 m | -259.2 m | -206.1 m | -111.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 1.0 m | 5.9 m | 16.8 m | 8.8 m | 6.2 m | 2.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | 18.5 m ≈ | -117.1 m ≈ | -280.0 m ≈ | -268.0 m ≈ | -212.2 m ≈ | -113.9 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | -219.3 m | -678.5 m | 116.1 m | 4.6 m | 124.0 m | 115.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | 251.8 m | 1.2 bn | 9.6 m | 108.9 m | -43.0 m | 3.4 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- 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
04 Nov 2026Source: olivLaw, closing series
Market cap: 792.6 m USD
Key indicators
Coverage and freshness
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
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
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -82.5% | 26 (vs peers) | 19% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 7.6% | 64 (on a fixed band) | 25% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -18.2x | 0 (on a fixed band) | 19% |
| Current ratio · Balance sheet | 4.9x | 100 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -15.6% | 0 (on a fixed band) | 25% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
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
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AAgilent Technologies, Inc. | 49.9 bn | 34.9 | 21.0% | 19.5% | +6.7% | +15% / +39% |
| WATWaters Corporation | 45.9 bn | 116.6 | 1.9% | 3.6% | +7.0% | +16% / +67% |
| MTDMettler-Toledo International Inc. | 34.5 bn | 38.8 | — | 21.9% | +4.0% | +17% / +58% |
| ILMNIllumina, Inc. | 34.3 bn | 38.8 | 32.4% | 19.7% | −0.7% | +72% / +128% |
| RVTYRevvity, Inc | 17.8 bn | 76.0 | 3.2% | 8.2% | +3.7% | +53% / +79% |
| AVTRAvantor, Inc. | 10.6 bn | 31.5 | 5.9% | 5.1% | −3.4% | +33% / −26% |
| BRKRBruker Corporation | 9.7 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 Corporation | 143.8 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 Corporation | 9.1 m | — | -75.4% | -1,580.2% | −8.7% | +41% / −44% |
| BIOBio-Rad Laboratories, Inc. | — | 10.0 | 14.3% | 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.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 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 |
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
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report04 Nov 2026Results of operations · Departure or appointment of officers · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Exit or disposal costs · Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report09 Jul 2026Departure or appointment of officers
- Current report04 Jun 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report08 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Proxy statement23 Apr 2026
- Current report06 Mar 2026Departure or appointment of officers · Regulation FD disclosure
- Current report05 Mar 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / PacBio · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / PacBio · 06 Aug 2026
- [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.