Pacific Biosciences (PACB) AI Stock Analysis

• Market Cap: $682.31M
• Dividend Yield: N/A
• Average Volume (3M): 7.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -10.72%
• EPS Growth: -16.00%
• Country: US
• Employees: 575
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.13
• Shares Outstanding: 301,907,440
• 10 Day Avg. Volume: 7,814,351
• 30 Day Avg. Volume: 7,151,415
• PEG Ratio: 0.25
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 3.26
• P/FCF Ratio: -2.37
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 8.21
• Enterprise Value/Gross Profit: 32.30
• Enterprise Value/Ebitda: -12.26
• 1Y Price Target: $2.40
• Price Target Upside: 16.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $2.00 ▼(-2.91% Downside)

The score is held down primarily by weak financial performance—large losses, high leverage with a diminished equity base, and ongoing cash burn. Offsetting this are improving operating signals (record consumables, better gross margins, and cash-burn reduction targets) plus modestly constructive technicals and positive recent balance-sheet-related actions, but profitability and funding risks remain the dominant factors.

Positive Factors

Recurring Consumables Growth

Sustained growth in consumables signals a recurring revenue stream tied to installed base, which is less lumpy than instrument sales. Higher consumable attach rates improve revenue visibility, support gross margin expansion, and provide a durable cash-flow lever as system placements scale over the medium term.

Improving Gross Margins

A structurally higher gross margin reflects improving product mix and stronger consumable contribution, which makes eventual operating leverage more achievable. If sustained, this improvement boosts the path to profitability and provides buffer against pricing and funding headwinds in instrument sales.

Cost-Reducing Technology Innovation

New chemistry that materially lowers per-genome cost is a durable competitive advantage: it expands addressable markets (clinical and population sequencing), strengthens differentiation versus short-read methods, and can sustainably improve margins through multi-use SMRT Cells and higher throughput adoption.

Negative Factors

Elevated Leverage

Very high leverage with minimal equity reduces financial flexibility and increases refinancing or covenant risks. This structural balance-sheet weakness constrains the company's ability to fund R&D, commercial expansion, or absorb demand shocks without dilutive capital raises or costly debt restructuring.

Sustained Cash Burn

Persistent negative operating and free cash flow means the business is not self-funding and remains reliant on external capital. Even with burn improvement, continued negative FCF over multiple quarters limits runway and forces trade-offs between commercialization, R&D, and capital preservation.

Weak Instrument Demand

Declining instrument sales undermine long-term revenue growth because instruments drive high-margin consumable pull-through. Persistent weakness suggests adoption or funding headwinds in key customer segments, which could slow installed-base expansion and blunt the durability of consumable-driven recurring revenue.

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; 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.

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 sequencing process, as well as service contracts for maintenance and support. Additionally, PACB earns revenue from collaborations and partnerships with academic institutions, pharmaceutical companies, and research organizations, which often include grants and funding for joint projects. The increasing demand for genomic data in both research and clinical settings, along with strategic partnerships that enhance its market reach, contribute significantly to its earnings.

Pacific Biosciences Financial Statement Overview

Summary

Financials are weak overall: revenue is essentially flat TTM and down versus 2023, gross margin is low (~25%), and operating/net losses are very large relative to revenue. Balance-sheet risk is a key concern with high debt (~$703M) and sharply reduced equity (~$36M). Cash burn remains significant (TTM FCF about -$131M), despite some improvement versus 2024.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat versus 2024 ($154.6M vs. $154.0M), but the longer-term trajectory has weakened with a sharp decline from 2023 levels. Profitability remains very pressured: gross margin is ~25% in TTM (below 2021–2022 levels), while operating losses are extremely large (TTM operating loss and net loss are multiple times revenue), indicating a cost structure that is not yet scaling with sales. The main positive is modest improvement in gross margin versus 2024, but it is outweighed by deep and widening losses in the most recent period.

Balance Sheet

Balance-sheet risk increased materially in TTM (Trailing-Twelve-Months): debt is high (~$703M) while equity collapsed to ~$36M, driving leverage to an extremely elevated level versus prior years. Asset levels have also contracted meaningfully since 2021–2023, reducing balance-sheet flexibility. Returns on shareholder capital are deeply negative in TTM, consistent with ongoing losses and a weakened equity base. The key strength is that leverage looked more manageable historically (2021–2024), but the latest TTM snapshot shows a notable deterioration.

Cash Flow

Cash burn remains significant: TTM (Trailing-Twelve-Months) operating cash flow is negative (~-$123M) and free cash flow is also negative (~-$131M), and free cash flow declined versus the prior period. A constructive point is that cash burn improved versus 2024 (less negative operating and free cash flow), suggesting some spending discipline. However, cash generation is still not self-funding, and the company continues to rely on external capital over time.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.58M	154.01M	200.52M	128.30M	130.51M	78.89M
Gross Profit	39.27M	37.28M	52.78M	49.03M	58.86M	32.57M
EBITDA	-103.44M	-242.77M	-271.13M	-282.24M	-250.76M	38.97M
Net Income	-503.63M	-309.85M	-306.74M	-314.25M	-181.22M	29.40M
Balance Sheet
Total Assets	803.16M	1.26B	1.75B	1.77B	2.01B	413.98M
Cash, Cash Equivalents and Short-Term Investments	298.65M	389.93M	631.42M	772.32M	1.04B	318.81M
Total Debt	703.08M	672.43M	933.93M	948.48M	955.36M	42.00M
Total Liabilities	767.07M	753.85M	1.04B	1.20B	1.22B	78.49M
Stockholders Equity	36.09M	506.59M	701.30M	562.90M	790.99M	335.49M
Cash Flow
Free Cash Flow	-131.26M	-212.25M	-275.39M	-280.14M	-117.11M	18.46M
Operating Cash Flow	-122.79M	-206.06M	-266.55M	-263.21M	-111.18M	19.50M
Investing Cash Flow	147.66M	124.00M	4.60M	116.08M	-678.53M	-219.32M
Financing Cash Flow	-46.77M	-42.99M	116.27M	9.62M	1.17B	251.84M

Pacific Biosciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.06
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Neutral. The current price of 2.06 is below the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.17, and above the 200-day MA of 1.57, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 24.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PACB.

Pacific Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPCE	61 Neutral	$503.95M	-21.11	-169.27%	―	24.08%	24.08%
CTKB	58 Neutral	$639.32M	-51.04	-3.36%	―	-2.18%	-30.96%
BFLY	54 Neutral	$1.00B	-11.41	-41.42%	―	16.04%	28.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MASS	50 Neutral	$228.38M	-3.62	-42.72%	―	4.49%	3.61%
OM	48 Neutral	$90.84M	-0.38	-92.33%	―	4.65%	68.71%
PACB	47 Neutral	$682.31M	-0.95	-205.41%	―	-10.72%	-16.00%

Pacific Biosciences Corporate Events

Pacific Biosciences Strengthens Balance Sheet via Asset Sale

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 Illumina Cambridge Limited for $50 million in cash plus the assumption of certain liabilities. After directing 4% of the proceeds to former equity holders of Apton Biosystems in connection with waived milestone obligations from PacBio’s August 2023 acquisition of Apton, the company realized approximately $48.1 million in net cash and received a non-exclusive license back to some of the divested intellectual property, a move that strengthens its balance sheet and clarifies its strategic positioning while reducing future Apton-related payment obligations. PacBio has issued unaudited pro forma financial statements to show the impact of the asset sale on its September 30, 2025 balance sheet and on its 2024 and year-to-date 2025 operating results, providing investors greater visibility into the company’s capital structure and post-transaction financial profile.

The most recent analyst rating on (PACB) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Pacific Biosciences stock, see the PACB Stock Forecast page.

PacBio Announces Strong Preliminary Q4 and 2025 Revenue

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 uptake of its Revio and Vega sequencing systems and record consumables sales. The company also highlighted a sharp ramp in Vega placements, stable Revio pull-through, and a reduction in cash, cash equivalents, and investments to roughly $279.5 million from $389.9 million a year earlier, underscoring both growing traction in clinical sequencing applications and ongoing cash burn; management indicated that full audited 2025 results, which could differ materially from these preliminary figures, will be detailed when PacBio reports earnings in February and files its annual report.

The most recent analyst rating on (PACB) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Pacific Biosciences stock, see the PACB Stock Forecast page.