PACIFIC BIOSCIENCES OF CALIFORNIA, INC. (PACB): PacBio Announces Third Quarter 2026 Financial Results
PACIFIC BIOSCIENCES OF CALIFORNIA, INC. (PACB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 PacBio Announces Third Quarter 2026 Financial Results MENLO PARK, Calif., November 4, 2026 (GLOBE NEWSWIRE) – PacBio (NASDAQ: PACB) today announced financial results for the quarter ended September 30, 2026. Recent Business Highlights • Delivered total revenue of $40
How this was made
The 30-second read
Why it matters
The earnings release provides fresh financial data and a revised revenue outlook, offering traders a basis for short‑term positioning.
Market read
The report delivers primary earnings data and guidance, making it a relevant catalyst for PACB and the broader biotech sector.
What to watch
Long‑term growth from AI‑driven drug discovery partnerships may not be fully priced in yet.
PacBio Announces Third Quarter 2026 Financial Results
Revenue increased to $40.6 million, supported by instrument and service revenue and higher Vega placements, but consumable revenue declined, gross margins contracted, and the company remained loss-making.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $40.6M | – | – |
| Product revenue, Q3 2026GAAP | $34.00M | – | – |
| Service and other revenue, Q3 2026GAAP | $6.56M | – | – |
| Consumable revenue, Q3 2026other | $20.8M | – | – |
| Instrument revenue, Q3 2026other | $13.2M | – | – |
| GAAP gross profit, Q3 2026GAAP | $13.5M | – | – |
| Non-GAAP gross profit, Q3 2026non-GAAP | $14.6M | – | – |
| GAAP gross margin, Q3 2026GAAP | 33% | – | – |
| Non-GAAP gross margin, Q3 2026non-GAAP | 36% | – | – |
| Research and development expense, Q3 2026GAAP | 20.22M | – | – |
| Sales, general and administrative expense, Q3 2026GAAP | 29.42M | – | – |
| GAAP total operating expense, Q3 2026GAAP | $50.5M | – | – |
| Non-GAAP total operating expense, Q3 2026non-GAAP | $47M | – | – |
| Operating loss, Q3 2026GAAP | −37.00M | – | – |
| Interest expense, Q3 2026GAAP | −2.06M | – | – |
| Other income, net, Q3 2026GAAP | 1.48M | – | – |
| Loss before income taxes, Q3 2026GAAP | −37.58M | – | – |
| Income tax provision, Q3 2026GAAP | 269K | – | – |
| GAAP net loss, Q3 2026GAAP | $37.8M | – | – |
| Non-GAAP net loss, Q3 2026non-GAAP | $32.8M | – | – |
| GAAP basic net loss per share, Q3 2026GAAP | $ (0.12) | – | – |
| GAAP diluted net loss per share, Q3 2026GAAP | $ (0.12) | – | – |
| Non-GAAP basic net loss per share, Q3 2026non-GAAP | $ (0.11) | – | – |
| Weighted average basic shares outstanding, Q3 2026GAAP | 311.2M | – | – |
| Weighted average diluted shares outstanding, Q3 2026GAAP | 311.2M | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | 116.7M | – | – |
| Product revenue, nine months ended September 30, 2026GAAP | 98.49M | – | – |
| Service and other revenue, nine months ended September 30, 2026GAAP | 18.26M | – | – |
| GAAP gross profit, nine months ended September 30, 2026GAAP | 38.95M | – | – |
| Non-GAAP gross profit, nine months ended September 30, 2026non-GAAP | 42.43M | – | – |
| GAAP gross margin, nine months ended September 30, 2026GAAP | 33 % | – | – |
| Non-GAAP gross margin, nine months ended September 30, 2026non-GAAP | 36 % | – | – |
| GAAP total operating expense, nine months ended September 30, 2026GAAP | 128.9M | – | – |
| Non-GAAP total operating expense, nine months ended September 30, 2026non-GAAP | 152.9M | – | – |
| GAAP net loss, nine months ended September 30, 2026GAAP | −$90.86M | – | – |
| Non-GAAP net loss, nine months ended September 30, 2026non-GAAP | −$110.7M | – | – |
| GAAP basic net loss per share, nine months ended September 30, 2026GAAP | $ (0.29) | – | – |
| Non-GAAP basic net loss per share, nine months ended September 30, 2026non-GAAP | $ (0.36) | – | – |
| Cash and investments, September 30, 2026GAAP | $199.4M | – | – |
| Convertible senior notes, net, September 30, 2026GAAP | 643.1M | – | – |
| Stockholders' equity (deficit), September 30, 2026GAAP | −61.38M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Consumable revenueContinued instrument and consumables demand; over half of Revio consumables revenue was tied to SPRQ-Nx. | $20.8M | – | – |
| Instrument revenueThe company delivered 35 new Vega systems in the quarter and launched SPRQ-Nx for Vega in late August. | $13.2M | – | – |
| Service and other revenueNo specific revenue driver was reported. | $6.6M | – | – |
Full year 2026 outlook
- Revenue$155 million to $160 million
What drove it
- Vega system placements were 35, up 9% year-over-year, and more than 90% were sold to new customers.
- Revio system placements were 15, compared to 13 in Q3 2025.
- Over half of Revio consumables revenue was tied to SPRQ-Nx, and two-thirds of the Revio installed base opted to upgrade software for use of SPRQ-Nx by the end of the quarter.
- Non-GAAP operating expenses declined primarily because of lower personnel and related expenses resulting from restructuring initiatives.
- PacBio cited higher memory costs and Vega manufacturing transition costs as the primary causes of the non-GAAP gross-margin decline.
Concerns
- Consumable revenue was $20.8 million, compared to $21.3 million in Q3 2025.
- Annualized Revio pull-through per system was ~$204,000, compared to ~$236,000 in Q3 2025.
- GAAP gross margin was 33%, compared to 41%, and non-GAAP gross margin was 36%, compared to 42%.
- PacBio reported a GAAP net loss of $37.8 million and a non-GAAP net loss of $32.8 million.
- Jim Gibson stepped down as CFO; Mark Van Oene was appointed interim CFO while PacBio searches for a new CFO.
- Cash and investments were $ 199,418 (in thousands), while convertible senior notes, net were 643,058 (in thousands).
What to watch
- Execution of SPRQ-Nx adoption across the Revio installed base and the late-August launch of SPRQ-Nx for Vega.
- Whether higher Vega placements and new-customer sales translate into consumable revenue growth and improved annualized Revio pull-through.
- The effect of memory costs and Vega manufacturing transition costs on gross margin.
- Progress on the full-year 2026 revenue outlook of $155 million to $160 million.
- The CFO search following the appointment of an interim CFO.
Balance sheet and cash flow
- Cash and investments were $ 199,418 (in thousands) as of September 30, 2026, compared to $ 279,506 (in thousands) as of December 31, 2025.
- Convertible senior notes, net were 643,058 (in thousands) as of September 30, 2026, compared to 645,382 (in thousands) as of December 31, 2025.
- Inventory, net was 60,278 (in thousands) as of September 30, 2026, compared to 49,285 (in thousands) as of December 31, 2025.
- Stockholders' equity (deficit) was (61,380) (in thousands) as of September 30, 2026, compared to 5,349 (in thousands) as of December 31, 2025.
Analysis
PacBio reported Q3 2026 revenue of $40.6 million, compared with $38.4 million in Q3 2025. The quarter's revenue mix showed instrument revenue of $13.2 million and service and other revenue of $6.6 million, versus $11.3 million and $5.8 million, respectively, in the prior-year quarter. Consumable revenue was $20.8 million, compared with $21.3 million. Product revenue in the condensed consolidated statements was $ 34,002 (in thousands), compared with $ 32,597 (in thousands), while service and other revenue was $ 6,562 (in thousands), compared with $ 5,844 (in thousands).
Instrument activity improved, with 35 Vega system placements compared with 32, a reported increase of 9% year-over-year. More than 90% of Vega systems were sold to new customers. Revio placements were 15 compared with 13, while annualized Revio pull-through per system declined to ~$204,000 from ~$236,000. PacBio said over half of Revio consumables revenue was tied to SPRQ-Nx and two-thirds of the Revio installed base opted to upgrade software for SPRQ-Nx by quarter-end.
Margins contracted despite the revenue increase. GAAP gross profit was $13.5 million compared with $15.9 million, and GAAP gross margin was 33% compared with 41%. Non-GAAP gross profit was $14.6 million compared with $16.2 million, while non-GAAP gross margin was 36% compared with 42%. The company attributed the non-GAAP margin decline primarily to higher memory costs and Vega manufacturing transition costs.
Cost actions reduced operating expense. GAAP operating expenses totaled $50.5 million versus $54.8 million, and non-GAAP operating expenses were $47.0 million versus $53.9 million, primarily reflecting lower personnel and related expenses from restructuring initiatives. GAAP net loss was $37.8 million compared with $38.0 million, and non-GAAP net loss was $32.8 million compared with $36.8 million. Cash and investments stood at $ 199,418 (in thousands) at September 30, 2026, compared with $ 279,506 (in thousands) at December 31, 2025, and convertible senior notes, net were 643,058 (in thousands).
PacBio now expects full-year 2026 revenue of $155 million to $160 million. The filing did not provide gross-margin, operating-expense, tax-rate, earnings, cash-flow, or capital-allocation guidance. Management also disclosed a CFO transition, with Jim Gibson stepping down, Mark Van Oene appointed interim CFO, and Bill Meyer appointed Chief Accounting Officer.
Management, verbatim
PacBio is entering an exciting phase as the investments we’ve made in our technology begin to unlock new opportunities. SPRQ-Nx is changing the economics of HiFi sequencing, while growing clinical adoption and strategic collaborations in population genomics and AI are expanding the markets we can serve. We have a tremendous opportunity ahead of us, and my focus is clear: sharpen our execution, prioritize what matters most, and translate the strength of our technology into sustainable growth .
Mark Van Oene, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter financial results for Q3 2026 metrics were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- Full-year 2026 guidance for gross margin, operating expenses, tax rate, net income or loss, EPS, operating cash flow, and free cash flow was not reported.
- Prior outlook was not provided, so comparison with prior guidance is unavailable.
- GAAP and non-GAAP diluted EPS beyond the GAAP diluted net loss per share line were not separately reported.
- A tax rate was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
PacBio, a Nasdaq‑listed long‑read sequencing company, filed its Q3 2026 results via an SEC 8‑K.
Ticker impact
PacBio reported Q3 2026 revenue of $40.6 million and issued guidance for full-year 2026 revenue of $155 million to $160 million.
likely pressure as the market prices in modest revenue outlook
The new financial results show slower growth and a revenue outlook below prior expectations, which typically dampens short-term price momentum.
Market effects
May weigh on the genomics sequencing sector as peers' valuations adjust to PacBio's guidance.
Limited impact beyond US biotech investors.
Minimal, confined to biotech and life‑science investors.
Counterpoint
If investors focus on the strategic collaborations announced, the stock could rebound despite modest guidance.
Key entities
- CompanyPacBio
NASDAQ: PACB, provider of HiFi long‑read sequencing systems.
