Download PDF

1. Company Snapshot

1.a. Company Description

Pacific Biosciences of California, Inc.designs, develops, and manufactures sequencing systems to resolve genetically complex problems.The company provides PacBio's Systems, which conduct, monitor, and analyse biochemical sequencing reactions; consumable products, including single molecule real-time (SMRT) cells; and various reagent kits designed for specific workflow, such as template preparation kit to convert DNA into SMRTbell double-stranded DNA library formats, including molecular biology reagents, such as ligase, buffers, and exonucleases.


It also offers binding kits, such as modified DNA polymerase used to bind SMRTbell libraries to the polymerase in preparation for sequencing; and sequencing kits comprise reagents required for on-instrument, real-time sequencing, including the phospholinked nucleotides.The company serves research institutions; commercial laboratories; genome centers; public health labs, hospitals and clinical research institutes, contract research organizations, and academic institutions; pharmaceutical companies; and agricultural companies.It markets its products through a direct sales force in North America and Europe, as well as through distribution partners in Asia, Europe, the Middle East, Africa, and Latin America.


Pacific Biosciences of California, Inc.has a development and commercialization agreement with Invitae Corporation.The company was formerly known as Nanofluidics, Inc.


and changed its name to Pacific Biosciences of California, Inc.in 2005.Pacific Biosciences of California, Inc.


was incorporated in 2000 and is headquartered in Menlo Park, California.

Show Full description

1.b. Last Insights on PACB

The recent 3-month performance of Pacific Biosciences of California, Inc. was negatively impacted by lower Revio system shipments, which contributed to soft first-quarter 2025 results. Despite strong Service and other revenues, the company's Q1 earnings were affected by this decline. Additionally, the company's preliminary Q1 revenue guidance was reiterated, but the actual results were not disclosed until the earnings release on May 8, 2025.

1.c. Company Highlights

2. PacBio's Q3 2025 Earnings: A Mixed Bag

PacBio reported total revenue of $38.4 million in the third quarter of 2025, slightly below expectations, with instrument revenue decreasing 33% year-over-year and consumable revenue increasing 15% to a record $21.3 million. Non-GAAP gross profit was $16.2 million, representing a 42% gross margin, up from 33% in the third quarter of 2024. The company's non-GAAP net loss was $36.8 million, or $0.12 per share, beating estimates of $0.16 per share. The revenue growth was driven by a 12% sequential increase, with annualized Revio pull-through per system of approximately $236,000.

Publication Date: Nov -12

📋 Highlights
  • Consumable Revenue Record: Surpassed expectations with $21.3M, a 15% YoY increase and 50% growth in EMEA.
  • Non-GAAP Gross Margin Peak: Reached 42%, the highest since 2022, up from 33% in Q3 2024.
  • Revio/Vega Shipments: Shipped 13 Revio (75% to new customers) and 32 Vega systems, with Vega ASPs stable sequentially.
  • EMEA Growth Outperformed: 18% YoY revenue growth, driven by 50% surge in consumables from clinical customers.
  • SPRQ-Nx Chemistry Launch: Anticipated to reduce genome sequencing costs below $300 at scale, with beta testing starting late 2025.

Regional Performance

The regional revenue performance varied, with Americas revenue decreasing 10% year-over-year, Asia Pacific revenue decreasing 11%, and EMEA revenue increasing 18%. The growth in EMEA was driven by a 50% increase in consumable revenue, primarily from commercial and clinically-focused customers. The company's revenue is not heavily dependent on U.S. government-funded sources, so a potential U.S. government shutdown is expected to have a muted impact.

Product Performance

The company shipped 13 Revio systems and 32 Vega systems, bringing the cumulative shipments to 310 and 105 systems, respectively. Revio ASPs were lower in the quarter but are expected to recover in the fourth quarter. Vega placements were impacted by procurement issues in Europe, but the company is seeing strong momentum in clinical applications. The new SPRQ-Nx chemistry is expected to drive increased adoption of PacBio's technology and improve gross margin.

Valuation and Outlook

With a P/S Ratio of 3.63 and an EV/EBITDA of -11.05, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 13.2%. The company's guidance for the full-year 2025 revenue was narrowed to the low end of the range, with expected revenue of $155 million to $160 million. PacBio believes its current cash position is sufficient to reach cash-positive cash flow by the end of 2027.

Future Prospects

The company is focused on increasing adoption of HiFi long-read sequencing, particularly in clinical applications and large-scale whole genome projects. The upcoming launch of the new SPRQ-Nx chemistry is expected to improve the economics of long-read sequencing and help penetrate the clinical market. Management is investing efficiently, focusing on strategic priorities, and reducing cash burn. The company is confident in its ability to lead the next era of genomics.

3. NewsRoom

Card image cap

PacBio to Participate in the Piper Sandler 37th Annual Healthcare Conference

Nov -28

Source: globenewswire.com

Card image cap

Brokerages Set Pacific Biosciences of California, Inc. (NASDAQ:PACB) Price Target at $2.00

Nov -22

Source: defenseworld.net

Card image cap

Pacific Biosciences of California (NASDAQ:PACB) Shares Cross Above 200 Day Moving Average – Here’s Why

Nov -19

Source: defenseworld.net

Card image cap

Top 3 Genomics Stocks to Consider for Your Portfolio

Nov -18

Source: zacks.com

Card image cap

PACB Stock Down Despite Q3 Earnings Beat Estimates, Revenues Down Y/Y

Nov -06

Source: zacks.com

Card image cap

Pacific Biosciences of California, Inc. (PACB) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

Card image cap

Compared to Estimates, Pacific Biosciences (PACB) Q3 Earnings: A Look at Key Metrics

Nov -06

Source: zacks.com

Card image cap

Pacific Biosciences of California (PACB) Reports Q3 Loss, Lags Revenue Estimates

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.29%)

6. Segments

Instrument

Expected Growth: 12%

Pacific Biosciences' 12% growth driven by increasing adoption of its Single Molecule, Real-Time (SMRT) sequencing technology, expanding customer base in genomics research, and growing demand for precision medicine and liquid biopsy applications.

Consumable

Expected Growth: 15%

Pacific Biosciences' 15% consumable growth is driven by increasing adoption of its Single Molecule Real-Time (SMRT) sequencing technology, expanding customer base in the life sciences and diagnostics markets, and growing demand for high-quality genomic data. Additionally, the company's strategic partnerships, innovative product offerings, and investments in research and development are contributing to its rapid growth.

Service and Other

Expected Growth: 16%

Pacific Biosciences' 16% growth in Service and Other segment is driven by increasing adoption of its sequencing technology, expansion of its customer base, and growing demand for its sequencing services. Additionally, the company's strategic partnerships and collaborations have contributed to the growth, as well as its focus on developing new applications and services.

7. Detailed Products

Sequel Systems

A line of Single Molecule, Real-Time (SMRT) sequencing systems that provide highly accurate long-read sequencing data for a wide range of applications, including de novo assembly, transcriptomics, and epigenetics.

PacBio RS II

A high-throughput SMRT sequencing system that provides high-quality, long-read sequencing data for large-scale genomics projects.

Sequel IIe

A high-throughput SMRT sequencing system that provides highly accurate long-read sequencing data for a wide range of applications, including de novo assembly, transcriptomics, and epigenetics.

PacBio HiFi Reads

A type of sequencing read that combines the benefits of long-read sequencing with high accuracy, enabling accurate detection of genetic variants and phasing of haplotypes.

Circular Consensus Sequencing (CCS)

A sequencing technology that generates highly accurate, long-read sequencing data by combining multiple passes of a DNA molecule.

Iso-Seq

A full-length transcript sequencing technology that enables the detection of novel transcripts, alternative splicing events, and gene fusion events.

8. Pacific Biosciences of California, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Pacific Biosciences of California, Inc. faces moderate threat from substitutes due to the presence of alternative sequencing technologies such as Illumina and Oxford Nanopore.

Bargaining Power Of Customers

Pacific Biosciences of California, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are highly specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Pacific Biosciences of California, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate contracts mitigate this risk.

Threat Of New Entrants

The sequencing market is highly competitive, and new entrants would face significant barriers to entry, including high R&D costs, regulatory hurdles, and the need for specialized expertise.

Intensity Of Rivalry

The sequencing market is highly competitive, with several established players competing for market share. Pacific Biosciences of California, Inc. faces intense competition from companies such as Illumina, Oxford Nanopore, and 10x Genomics.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.27%
Debt Cost 3.95%
Equity Weight 43.73%
Equity Cost 13.82%
WACC 8.26%
Leverage 128.66%

11. Quality Control: Pacific Biosciences of California, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Outset Medical

A-Score: 4.5/10

Value: 8.2

Growth: 4.9

Quality: 4.5

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
AdaptHealth

A-Score: 4.3/10

Value: 8.0

Growth: 6.4

Quality: 3.7

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
CVRx

A-Score: 3.5/10

Value: 6.8

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Cytosorbents

A-Score: 3.4/10

Value: 7.6

Growth: 4.7

Quality: 3.9

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
PAVmed

A-Score: 3.3/10

Value: 5.4

Growth: 7.7

Quality: 6.0

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Pacific Biosciences

A-Score: 2.4/10

Value: 6.6

Growth: 2.2

Quality: 2.4

Yield: 0.0

Momentum: 2.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.12$

Current Price

2.12$

Potential

-0.00%

Expected Cash-Flows