Pacific Biosciences (PACB) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 6% YoY to $40.6M, led by instrument and service growth; consumables revenue declined 2% YoY.

• Higher costs weighed on profitability: non-GAAP gross margin fell to 36% from 42%, while non-GAAP net loss narrowed to $32.8M from $36.8M.

• SPRQ-Nx adoption advanced across Revio systems, Vega placements grew, and clinical and research collaborations expanded potential uses of HiFi data.

Financial highlights

• Revenue was $40.6M vs. $38.4M YoY; product revenue was $34.0M, up 4%, and service and other revenue was $6.6M, up 12%.

• Consumables revenue was $20.8M vs. $21.3M YoY; instrument revenue was $13.2M vs. $11.3M.

• GAAP gross profit was $13.5M vs. $15.9M; non-GAAP gross profit was $14.6M vs. $16.2M, with non-GAAP gross margin at 36% vs. 42%.

• Non-GAAP operating expenses were $47.0M vs. $53.9M; non-GAAP net loss was $32.8M, or $0.11 per share, vs. $36.8M, or $0.12 per share.

• 9M revenue rose 1% to $116.7M; operating loss improved to $90.0M from $512.7M, largely reflecting prior-year accelerated amortization and restructuring charges.

Outlook and guidance

• FY 2026 revenue guidance is $155M–$160M; non-GAAP gross margin guidance is 35%–37%, and non-GAAP operating expense guidance is $203M–$207M.

• Year-end cash guidance remains $175M–$185M; cash burn is expected to step down meaningfully in 2027, with cash flow breakeven expected in 2028.

• FY 2026 Revio consumables pull-through guidance is $200K–$225K per system; 2027 pull-through is expected to return to $225K–$250K after the planned 30% price decrease is absorbed by year-end 2026.

• High-throughput platform development remains on track for commercial launch by end-2027; development spending is expected to wind down as the platform advances.

• Restructuring savings include $15M–$20M in annual compensation-related savings; annualized operating expenses are expected to decline by over $30M.