Pacific Biosciences (PACB)
NASDAQ:PACB
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Pacific Biosciences
(NASDAQ:PACB)
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Rating:46Neutral
Price Target:
$1.50
▲(11.94% Upside)
Action:ReiteratedDate:03/07/26
The score is primarily constrained by weak financial performance (deep losses, ongoing cash burn, and a significantly weakened balance sheet). Technicals also remain bearish with the stock trading below key moving averages. Earnings-call commentary provides some offset via consumables-led momentum, improving margins, and a path toward better cash burn, but guidance remains modest and demand/cost risks persist.
Positive Factors
Consumables Recurring Revenue
A growing, record consumables business strengthens the razor/razor-blade model: recurring reagent and SMRT cell sales drive predictable revenue and higher lifetime value per installed system. Durable consumables growth supports revenue stability, margin leverage and funding runway independent of instrument cycles.
Negative Factors
Weakened Capitalization
A materially weakened balance sheet with equity near zero and elevated leverage reduces financial flexibility and raises refinancing and dilution risk. Limited capitalization constrains the company's ability to fund R&D, scale commercial efforts, or absorb shocks without dilutive financing or restrictive terms.
Read all positive and negative factors
Positive Factors
Negative Factors
Consumables Recurring Revenue
A growing, record consumables business strengthens the razor/razor-blade model: recurring reagent and SMRT cell sales drive predictable revenue and higher lifetime value per installed system. Durable consumables growth supports revenue stability, margin leverage and funding runway independent of instrument cycles.
Read all positive factors
Pacific Biosciences (PACB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$404.68M
Dividend YieldN/A
Average Volume (3M)5.70M
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue Growth-10.72%
EPS Growth-16.00%
CountryUS
Employees575
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.13
Shares Outstanding301,998,300
10 Day Avg. Volume6,404,063
30 Day Avg. Volume5,699,145
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)104.87
Price to Sales (P/S)3.51
P/FCF Ratio-4.92
Enterprise Value/Market Cap2.72
Enterprise Value/Revenue6.88
Enterprise Value/Gross Profit24.38
Enterprise Value/Ebitda-6.87
Forecast
1Y Price Target
$2.38Price Target Upside77.61% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)-0.52
Revenue Forecast (FY)$174.28M
Pacific Biosciences Business Overview & Revenue Model
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; co...
How the Company Makes Money
Pacific Biosciences generates revenue primarily through the sale of its DNA sequencing systems, consumables, and related services. The company's revenue model includes the direct sale of sequencing instruments, reagents, and flow cells used in the...
Pacific Biosciences Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units or product lines, highlighting which areas drive growth and which may need strategic adjustments.
Analyzes income from different business units or product lines, highlighting which areas drive growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyPacific Biosciences Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful operational improvements: record consumable performance, strong consumable-driven gross margin expansion to 40%, cost reductions and improved cash burn, promising SparkNex beta results (25% higher throughput and sub-$300 genome target), and accelerating clinical/population sequencing traction. Offsetting these positives are persistent full-year net losses, a decline in instrument revenue driven by a weak academic funding environment (particularly in the Americas), lower unrestricted cash versus prior year, ASP and discount dynamics from strategic placements, and supply-cost volatility (compute/memory) that could temper margin gains. Management provided modest 2026 guidance (~8% growth at midpoint) that assumes continued academic caution but expects SparkNex and clinical adoption to accelerate growth. Overall, the company appears to be making solid progress operationally and strategically while still managing execution and market-demand risks.Positive Updates
Quarterly and Sequential Revenue Growth
Q4 2025 revenue of $44.6M, up 14% year-over-year and 16% quarter-over-quarter, driven by increased Revio and Vega sales and record consumables.
Negative Updates
Modest Full-Year Revenue Growth and Instrument Revenue Decline
Full-year 2025 revenue was $160M, up only 4% YoY. Instrument revenue decreased 18% YoY to $53.8M, reflecting pressure on capital purchases especially for Revio during a challenging academic funding environment.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Sequential Revenue Growth
Q4 2025 revenue of $44.6M, up 14% year-over-year and 16% quarter-over-quarter, driven by increased Revio and Vega sales and record consumables.
Read all positive updates
Company Guidance
PacBio guided 2026 revenue of $165 million to $180 million (midpoint $172M, ~8% growth at midpoint), driven primarily by consumables, with management assuming continued muted academic capital spending and stronger clinical adoption; they expect non‑GAAP gross margin to improve 100–400 basis points (SparkNex launch in H2 2026 and higher consumables mix cited as drivers) and non‑GAAP operating expenses to be slightly better than 2025’s $229.9M. The outlook leans on trends such as 2025 consumables of $82M (16% YoY growth), Q4 consumables $21.6M with annualized pull‑through per system of $242k (Revio pull‑through targeted ~$225k–$250k; Vega ~$25k–$40k), recent Q4 placements (21 Revio, 42 Vega; cumulative 331 Revio/147 Vega), Q4 Revio ASP ~$482k, roughly $279.5M cash on hand and a ~$48M net short‑read asset sale—while noting potential compute/memory cost volatility is factored into the guide and the company remains on a path toward cash‑flow breakeven.Pacific Biosciences Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
14
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 160.00M | 154.01M | 200.52M | 128.30M | 130.51M |
| Gross Profit | 50.67M | 37.28M | 52.78M | 49.03M | 58.86M |
| EBITDA | -34.20M | -242.77M | -271.13M | -282.24M | -250.76M |
| Net Income | -546.38M | -309.85M | -306.74M | -314.25M | -181.22M |
Balance Sheet | |||||
| Total Assets | 784.08M | 1.26B | 1.75B | 1.77B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 279.51M | 389.93M | 631.42M | 772.32M | 1.04B |
| Total Debt | 759.46M | 672.43M | 933.93M | 948.48M | 955.36M |
| Total Liabilities | 778.73M | 753.85M | 1.04B | 1.20B | 1.22B |
| Stockholders Equity | 5.35M | 506.59M | 701.30M | 562.90M | 790.99M |
Cash Flow | |||||
| Free Cash Flow | -113.92M | -212.25M | -275.39M | -280.14M | -117.11M |
| Operating Cash Flow | -111.21M | -206.06M | -266.55M | -263.21M | -111.18M |
| Investing Cash Flow | 115.45M | 124.00M | 4.60M | 116.08M | -678.53M |
| Financing Cash Flow | 3.43M | -42.99M | 116.27M | 9.62M | 1.17B |
Pacific Biosciences Technical Analysis
Negative
1.34
Price Trends
1.57
Negative
1.85
Negative
1.67
Negative
Market Momentum
-0.05
Negative
43.12
Neutral
42.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.57, and below the 200-day MA of 1.67, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PACB.
Pacific Biosciences Risk Analysis
Pacific Biosciences disclosed 66 risk factors in its most recent earnings report. Pacific Biosciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pacific Biosciences Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $266.89M | 9.76 | 13.25% | ― | 4.49% | 3.61% | |
55 Neutral | $1.05B | -12.19 | -35.34% | ― | 16.04% | 28.91% | |
52 Neutral | $582.33M | -9.70 | -18.01% | ― | -2.18% | -30.96% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $76.82M | -0.69 | -54.99% | ― | 4.65% | 68.71% | |
46 Neutral | $404.68M | -1.03 | -1123.27% | ― | -10.72% | -16.00% | |
46 Neutral | $480.09M | -23.54 | -105.67% | ― | 24.08% | 24.08% |
* Healthcare Sector Average
PACB
Pacific Biosciences
1.34
0.02
1.52%
BFLY
Butterfly Network
4.11
1.59
63.10%
OM
Outset Medical
4.20
-6.86
-62.03%
MASS
908 Devices
7.14
2.72
61.54%
NPCE
NeuroPace
14.26
3.59
33.65%
CTKB
Cytek Biosciences
4.53
0.77
20.48%
Pacific Biosciences Corporate Events
Business Operations and StrategyExecutive/Board ChangesLegal Proceedings
Pacific Biosciences Secures Key Patent License, Ends Litigation
Positive
Mar 6, 2026
On March 2, 2026, Pacific Biosciences said Chief Accounting Officer Michele Farmer had resigned effective March 21, 2026, to pursue another opportunity, with the company emphasizing there was no disagreement over accounting or other practices and ...
Business Operations and StrategyExecutive/Board Changes
PacBio Adds AI-Driven Drug Discovery Leader to Board
Positive
Mar 5, 2026
On March 3, 2026, PacBio’s board of directors expanded to ten members and appointed Christopher Gibson, Ph.D., co-founder and chairman of AI-driven drug discovery company Recursion, as a Class I director with a term running until the 2026 an...
Business Operations and StrategyExecutive/Board Changes
Pacific Biosciences Announces Interim Leadership Role Realignment
Neutral
Feb 3, 2026
On February 3, 2026, Pacific Biosciences of California, Inc. reported that, effective January 28, 2026, Chief Operating Officer Mark Van Oene had on an interim basis taken over responsibility for the company’s sales and customer support orga...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Pacific Biosciences Strengthens Balance Sheet via Asset Sale
Positive
Feb 2, 2026
On January 30, 2026, Pacific Biosciences of California completed the sale of certain intellectual property and other assets tied to its short-read DNA sequencing technology, including clustering, sequencing reagent and detection technologies, to I...
Business Operations and StrategyFinancial Disclosures
PacBio Announces Strong Preliminary Q4 and 2025 Revenue
Positive
Jan 12, 2026
On January 12, 2026, PacBio reported preliminary unaudited results indicating that fourth-quarter 2025 revenue rose 14% year-on-year to approximately $44.6 million, while full-year 2025 revenue grew 4% to about $160.0 million, driven by strong upt...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.