Fourth quarter and full year results:
Q4 2025
Q4 2024
FY 2025
FY 2024
Revenue (in millions)
$44.6
$39.2
$160.0
$154.0
Consumable revenue (in millions)
$21.6
$18.8
$82.0
$70.3
Instrument revenue (in millions)
$17.3
$15.3
$53.8
$65.8
Service and other revenue (in millions)
$5.7
$5.1
$24.2
$17.9
RevioTM system placements
21
23
61
97
VegaTM system placements
42
7
140
7
Annualized Revio pull-through per system
~$242,000
~$240,000
~$233,000
~$252,000
Ending cash, cash equivalents, and investments(in millions)
$279.5
$389.9
Gross margin, operating expenses, net income (loss), and net income (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.
Fourth Quarter 2025 Results
GAAP gross profit for the fourth quarter of 2025 was $16.6 million compared to $10.1 million for the fourth quarter of 2024. Non-GAAP gross profit for the fourth quarter of 2025 was $17.8 million compared to $12.3 million in the fourth quarter of 2024 and a non-GAAP gross margin of 40% in the fourth quarter of 2025 compared to 31% for the fourth quarter of 2024.
GAAP operating expenses totaled $57.8 million for the fourth quarter of 2025, compared to $163.1 million for the fourth quarter of 2024. Non-GAAP operating expenses totaled $56.2 million for the fourth quarter of 2025, compared to $68.6 million for the fourth quarter of 2024. GAAP and non-GAAP operating expenses for the fourth quarter of 2025 and the fourth quarter of 2024 included non-cash share-based compensation of $8.6 million and $14.8 million, respectively. GAAP net loss for the fourth quarter of 2025 was $40.4 million, compared to GAAP net income of $2.4 million for the fourth quarter of 2024. GAAP basic net loss per share for the fourth quarter of 2025 was $0.13 compared to GAAP basic net income per share of $0.01 for the fourth quarter of 2024. GAAP net income and GAAP basic net income per share for the quarter ended December 31, 2024 include a $154.4 million gain on debt restructuring in relation to our note exchange that closed on November 21, 2024.
Non-GAAP net loss was $37.6 million for the fourth quarter of 2025, compared to $55.3 million for the fourth quarter of 2024. Non-GAAP basic net loss per share for the fourth quarter of 2025 was $0.12 compared to $0.20 for the fourth quarter of 2024.
GAAP Operating expenses, net income, and basic net income per share for the quarter ended December 31, 2024 included the impact of non-cash impairment charges of approximately $91.3 million related to goodwill and in-process research and development.
Full Year 2025 Results
GAAP gross profit for full year 2025 was $45.8 million compared to $37.3 million for 2024. Non-GAAP gross profit for 2025 was $64.2 million compared to $51.1 million in 2024 and a non-GAAP gross margin of 40% in 2025 compared to 33% for 2024.
GAAP operating expenses totaled $599.6 million for full year 2025, compared to $511.6 million for 2024. Non-GAAP operating expenses totaled $229.9 million for 2025, compared to $289.2 million for 2024. GAAP and non-GAAP operating expenses for 2025 and 2024 included non-cash share-based compensation of $37.7 million and $65.3 million, respectively.
GAAP net loss for full year 2025 was $546.4 million, compared to $309.9 million for 2024. GAAP basic net loss per share for full year 2025 was $1.82 compared to $1.13 for 2024. GAAP net income and GAAP basic net income per share for the year ended December 31, 2024 include a $154.4 million gain on debt restructuring in relation to our note exchange that closed on November 21, 2024.
Non-GAAP net loss was $158.8 million for full year 2025, compared to $228.0 million for 2024. Non-GAAP basic net loss per share for full year 2025 was $0.53 compared to $0.83 for 2024.
Recent Highlights
Joined iHope initiative as the first long-read genomic sequencing partner, integrating HiFi into one of the world's largest equitable rare disease genomic testing network
Announced a collaboration with n-Lorem Foundation and EspeRare to advance precision therapies for rare genetic diseases
HiFi sequencing adopted as a first-line sequencing approach to investigate sudden unexplained death in childhood (SUDC)
Expanded multiomics capabilities through the introduction of CiFi, a new long-read 3C method that enables chromosome-scale assemblies from a single SMRT cell, in collaboration with UC Davis Researchers
Completed sale of short-read sequencing assets for net cash proceeds of approximately $48.1 million, strengthening the balance sheet and extending cash runway
"Our fourth quarter results exceeded expectations, with revenue growing 14% year-over-year and 16% sequentially," said Christian Henry, President and CEO of PacBio. "Consumables revenue reached an all-time record, and we were especially pleased with our growth in the clinical market throughout the year. Following the sale of our short-read assets, we have strengthened our balance sheet, which positions us to drive adoption of our long-read platforms. With the upcoming launch of SPRQ-Nx, designed to significantly lower sequencing costs, we are entering 2026 well-positioned to drive our next phase of growth."
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its results for the fourth quarter and full year ended December 31, 2025 today at 5:00 p.m. Eastern Time. Investors may listen to the call by dialing 1-888-349-0136 if outside the U.S., by dialing 1-412-317-0459, requesting to join the "PacBio Q4 Earnings Call". The call will be webcast live and available for replay at PacBio's website at https://investor.pacificbiosciences.com.
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 include our HiFi long-read sequencing, 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 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 and loss per share, net income, net loss, gross margins, gross profit 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.
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 intangible assets and changes in fair value of contingent consideration, and further excludes infrequent and limited charges including impairment charges, gain on debt restructuring, restructuring related expenses for discrete restructuring events, and 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. PacBio is unable to reconcile future-looking non-GAAP guidance included in this press release without unreasonable effort because certain items that impact this measure are out of PacBio's control and/or cannot be reasonably predicted at this time.
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 and the expected financial impact and timing of these plans and initiatives; the availability, uses, accuracy, advantages, quality or performance of, or benefits of using, or expected benefits of using, PacBio products or technologies; expectations with respect to commercialization, development and shipment of PacBio products, including the launch of SPRQ-Nx and its impact on lowering sequencing costs; PacBio's financial guidance and expectations for future periods, including positioning to drive growth and sharpened strategic focus; new and continued reception of PacBio's products and their expansion into new or existing markets; developments affecting our industry and the markets in which we compete, including anticipated future customer use and costs of our products and consumables; expectations regarding the academic funding environment; expectations regarding integrating HiFi into rare disease genomic testing networks, advancing precision therapies for rare genetic diseases, investigations into SUDC, and expanded capabilities resulting from CiFi, among other future events. 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; 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; the impact of new increased or enhanced tariffs and U.S. export restrictions on the shipment of PacBio products to certain countries; rapidly changing technologies and extensive competition in, and potential FDA regulatory issues relating to, genomic sequencing; unanticipated increases in costs or expenses; 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 geopolitical instability. 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 Annual Report on Form 10-K when filed with the Securities and Exchange Commission.
Contacts
Investors:[email protected]
Media:[email protected]
Pacific Biosciences of California, Inc.Unaudited Condensed Consolidated Statements of Operations
Three Months Ended
(in thousands, except per share amounts)
December 31, 2025
September 30, 2025
December 31, 2024
Revenue:
Product revenue
$
38,965
$
32,597
$
34,098
Service and other revenue
5,680
5,844
5,126
Total revenue
44,645
38,441
39,224
Cost of Revenue:
Cost of product revenue (1)
24,204
19,204
23,476
Cost of service and other revenue
3,681
3,078
3,469
Amortization of acquired intangible assets
183
183
2,221
Loss on purchase commitment (1)
11
75
—
Total cost of revenue
28,079
22,540
29,166
Gross profit
16,566
15,901
10,058
Operating Expense:
Research and development (1)
22,879
22,846
27,466
Sales, general and administrative (1)
34,051
31,099
41,641
Impairment charges (2)
—
—
91,300
Change in fair value of contingent consideration (3)
—
—
(1,950
)
Amortization of acquired intangible assets
833
833
4,629
Total operating expense
57,763
54,778
163,086
Operating loss
(41,197
)
(38,877
)
(153,028
)
Gain on debt restructuring (4)
—
—
154,407
Interest expense
(1,740
)
(1,739
)
(2,757
)
Other income, net
2,768
2,999
4,065
(Loss) income before income taxes
(40,169
)
(37,617
)
2,687
Income tax provision
202
383
316
Net (loss) income
$
(40,371
)
$
(38,000
)
$
2,371
Net (loss) income per share:
Basic
$
(0.13
)
$
(0.13
)
$
0.01
Diluted
$
(0.13
)
$
(0.13
)
$
(0.49
)
Weighted average shares outstanding used in calculating net (loss) income per share
Basic
301,907
300,844
282,999
Diluted
301,907
