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Pacific Biosciences (PACB)
NASDAQ:PACB
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Pacific Biosciences
(NASDAQ:PACB)
Rating:45Neutral
Price Target:
$1.00
▼(-23.66% Downside)
Positive Factors
Earnings
Pacific Biosciences reported strong 2Q results that came in ahead of street expectations, driven by strong instrument placements despite a challenging macroenvironment.
Operational Efficiency
Manufacturing and operational efficiencies continue ahead of plan, with gross margin guide raised and operational expenses lowered.
Product Launch
New launch Vega performed well and clinical long-read opportunities are being realized, opening up an opportunity.
Negative Factors
Academic Market
Academic market weakness unsurprisingly weighs on instrumentation.
Policy Uncertainty
The company's guidance range has been narrowed, but policy uncertainty still weighs on near-term visibility.
Tariffs Impact
Persistent National Institutes of Health (NIH) headwinds and U.S./China tariffs led PACB to narrow its 2025 revenue guidance range.
Pacific Biosciences (PACB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$375.46M
Dividend YieldN/A
Average Volume (3M)6.64M
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth-17.35%
EPS Growth-19.34%
CountryUS
Employees575
SectorHealthcare
Sector Strength52
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.14
Shares Outstanding300,370,600
10 Day Avg. Volume3,513,155
30 Day Avg. Volume6,635,219
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.01
Enterprise Value/Revenue4.85
Enterprise Value/Gross Profit-2.30
Enterprise Value/Ebitda-6.75
Forecast
1Y Price Target
$2.08Price Target Upside58.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Pacific Biosciences Business Overview & Revenue Model
Company DescriptionPacific Biosciences (PACB) is a biotechnology company specializing in the development and commercialization of advanced sequencing technologies for genomic research. Founded in 2004 and headquartered in Menlo Park, California, PACB focuses on providing high-throughput, long-read sequencing solutions that enable researchers to analyze complex genomes with unprecedented accuracy. Its core products include the Sequel II and Sequel IIe Systems, which are designed for a wide range of applications, from basic research to clinical genomics, and support various fields such as agriculture, human health, and environmental science.
How the Company Makes MoneyPacific Biosciences generates revenue primarily through the sale of its sequencing systems, consumables, and software. The company earns substantial revenue from the sale of its proprietary sequencing reagents and kits, which are essential for the operation of its sequencing platforms. Additionally, PACB benefits from service and support agreements, where it provides ongoing maintenance and technical assistance to its customers. Key partnerships with academic institutions, pharmaceutical companies, and research organizations further enhance its revenue streams, as these collaborations often involve joint research projects that utilize PACB's technology. Moreover, the growing demand for genomic data in personalized medicine and other sectors is contributing to an increase in the company's sales and market presence.
Pacific Biosciences Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong revenue growth, particularly internationally, and innovative product launches enhancing performance. However, challenges remain with U.S. government funding and tariff uncertainty in China impacting instrument sales.Q2-2025 Updates
Positive Updates
Year-over-Year Revenue Growth
PacBio reported $39.8 million in revenue, a 10% increase compared to Q2 of last year, driven by strong international growth.
Strong International Performance
Revenue in APAC and EMEA regions combined grew 45% compared to Q2 of 2024, with APAC up 53% and EMEA up 35%.
Consumables Revenue Increase
Consumables revenue totaled $18.9 million, up 11% year-over-year, driven by steady utilization across the installed base.
Innovative Product Launches
The recently launched SPRQ chemistry increased throughput up to 33% and reduced DNA input requirements four-fold, contributing to a 66% year-over-year increase in sequencing gigabase output.
Expanding Clinical Presence
33% of Revio placements were to LDT, diagnostic, or hospital labs, with 15% of consumables revenue coming from clinical customers.
Vega Platform Adoption
Since its launch, Vega has brought over 40 new laboratories into the PacBio ecosystem, with strong adoption among smaller labs and new market segments.
Cost Management and Cash Position
PacBio ended the quarter with approximately $315 million in cash and investments, reflecting continued cost discipline and lower-than-expected operating expenses.
Negative Updates
Decline in Instrument Revenue
Instrument revenue was $14.2 million, down 4% year-over-year due to funding constraints, particularly with academic and government customers.
Challenges with U.S. Government Funding
Capital spending remains constrained, particularly among U.S. academic institutions facing government funding headwinds and NIH-related uncertainty.
Tariff Uncertainty in China
While the impact of tariffs in China was lower than expected, the situation remains volatile and difficult to predict.
Company Guidance
During the PacBio Second Quarter 2025 Earnings Call, the company provided several key financial metrics and guidance updates. PacBio reported $39.8 million in revenue, a 7% sequential increase and a 10% year-over-year growth from Q2 2024. The company experienced strong international growth, with combined revenue from the APAC and EMEA regions up 45% compared to the previous year. Non-GAAP gross margin was reported at 38.3%, surpassing expectations, and the company ended the quarter with approximately $315 million in cash and investments. Instrument revenue was $14.2 million, with consumables revenue reaching $18.9 million, an 11% increase year-over-year. PacBio shipped 15 Revio systems and 38 Vega systems during the quarter, with a cumulative total of 297 Revio and 73 Vega systems installed. The company maintained its full-year revenue guidance range of $155 million to $165 million, representing 1% to 7% growth over 2024, despite macroeconomic headwinds, particularly in the U.S. academic sector.Pacific Biosciences Financial Statement Overview
Summary
Pacific Biosciences is facing significant financial challenges characterized by declining revenues, persistent losses, and high leverage. The company's profitability margins are negative, and cash flow generation is weak. These factors indicate financial instability and potential risks, requiring strategic interventions to improve financial health.Income Statement
Pacific Biosciences shows a declining revenue trend with a significant drop from the previous year. The company has a negative EBIT and EBITDA margin, reflecting operational inefficiencies. The TTM gross profit margin is also low at 16.17%, indicating challenges in maintaining profitability. The net profit margin is deeply negative, highlighting ongoing financial losses.22
Negative
Balance Sheet
The company has a high debt-to-equity ratio, indicating financial risk with significant leverage. The equity ratio is low at 10.64%, suggesting limited equity buffer against liabilities. Return on equity is negative, consistent with losses. Overall, the balance sheet reflects financial instability and potential risks due to high leverage.35
Negative
Cash Flow
The cash flow statement reveals negative operating and free cash flows, with no positive free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating inefficiencies in cash generation relative to net losses. The company faces challenges in generating cash, impacting liquidity.28
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.11M | 154.01M | 200.52M | 128.30M | 130.51M | 78.89M |
| Gross Profit | -328.67M | 37.28M | 52.78M | 49.03M | 58.86M | 32.57M |
| EBITDA | -112.13M | -242.78M | -271.13M | -282.24M | -250.76M | 38.97M |
| Net Income | -526.36M | -309.85M | -306.74M | -314.25M | -181.22M | 29.40M |
Balance Sheet | ||||||
| Total Assets | 825.47M | 1.26B | 1.75B | 1.77B | 2.01B | 413.98M |
| Cash, Cash Equivalents and Short-Term Investments | 314.74M | 389.93M | 631.42M | 772.32M | 1.04B | 318.81M |
| Total Debt | 699.22M | 672.43M | 933.93M | 948.48M | 955.36M | 42.00M |
| Total Liabilities | 763.98M | 753.85M | 1.04B | 1.20B | 1.22B | 78.49M |
| Stockholders Equity | 61.49M | 506.59M | 701.30M | 562.90M | 790.99M | 335.49M |
Cash Flow | ||||||
| Free Cash Flow | -152.31M | -212.25M | -268.02M | -280.14M | -117.11M | 18.46M |
| Operating Cash Flow | -149.55M | -206.06M | -259.17M | -263.21M | -111.18M | 19.50M |
| Investing Cash Flow | 151.82M | 124.00M | 4.60M | 116.08M | -678.53M | -219.32M |
| Financing Cash Flow | -47.43M | -42.99M | 108.89M | 9.62M | 1.17B | 251.84M |
Pacific Biosciences Technical Analysis
Negative
1.31
Price Trends
1.38
Negative
1.26
Negative
1.44
Negative
Market Momentum
-0.03
Positive
42.57
Neutral
40.00
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 1.31 is above the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.38, and below the 200-day MA of 1.44, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $596.12M | ― | -0.10% | ― | 5.08% | 99.38% | |
53 Neutral | $521.62M | ― | -1.67% | ― | -0.85% | 61.31% | |
51 Neutral | $7.93B | -0.32 | -43.43% | 2.21% | 22.30% | -1.88% | |
50 Neutral | $203.52M | ― | -46.85% | ― | 14.65% | -86.36% | |
48 Neutral | $210.03M | ― | -22.27% | ― | -2.74% | -96.96% | |
45 Neutral | $375.46M | ― | -189.52% | ― | -17.35% | -19.34% | |
45 Neutral | $400.27M | ― | -29.42% | ― | 23.13% | 46.62% |
* Healthcare Sector Average
Performance Comparison
PACB
Pacific Biosciences
1.22
-0.46
-27.38%
QTRX
Quanterix
4.33
-7.74
-64.13%
BFLY
Butterfly Network
1.58
-0.35
-18.13%
MASS
908 Devices
5.65
2.16
61.89%
BVS
Bioventus
7.27
-3.26
-30.96%
CTKB
Cytek Biosciences
3.74
-1.75
-31.88%
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.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower 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.
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.