Pacific Biosciences (PACB) AI Stock Analysis

• Market Cap: $606.83M
• Dividend Yield: N/A
• Average Volume (3M): 6.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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: 6,244,791
• 30 Day Avg. Volume: 6,097,535
• 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: 1.30
• Enterprise Value/Revenue: 5.09
• Enterprise Value/Gross Profit: 20.02
• Enterprise Value/Ebitda: -7.60
• 1Y Price Target: $2.40
• Price Target Upside: 12.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $2.00 ▼(-6.10% Downside)

The score is held down primarily by weak financial performance (large losses, significant cash burn, and a notably weakened balance sheet with high leverage). Offsetting factors include improving operating trends discussed on the earnings call (record consumables, higher non-GAAP gross margin, and reduced cash burn targets) and a neutral-to-slightly improving technical picture, while valuation remains unattractive due to negative earnings and no dividend support.

Positive Factors

Consumable Revenue Growth

The growth in consumable revenue indicates strong adoption of the company's sequencing technology, which can lead to sustained revenue streams and improved margins.

Gross Margin Improvement

Improved gross margins reflect better cost management and product mix, enhancing profitability potential and financial stability over time.

Clinical Advancements

Regulatory approval in China expands market access and supports growth in clinical applications, strengthening the company's competitive position.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market share and could impact long-term growth prospects if not addressed.

Decreased Instrument Revenue

A significant drop in instrument revenue suggests potential issues in product demand or competitive pressures, affecting future sales and profitability.

High Leverage

High leverage can strain financial resources and limit flexibility, posing risks to long-term financial health and operational stability.

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

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.

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.

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.

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: Positive
• Last Price: 2.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Positive. The current price of 2.13 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 2.03, and above the 200-day MA of 1.50, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 63.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$563.23M	-21.41	-169.27%	―	24.08%	24.08%
CTKB	58 Neutral	$696.86M	―	-3.36%	―	-2.18%	-30.96%
BFLY	55 Neutral	$1.08B	-13.15	-41.42%	―	16.04%	28.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PACB	49 Neutral	$606.83M	-0.98	-205.41%	―	-10.72%	-16.00%
OM	45 Neutral	$101.00M	-0.39	-92.33%	―	4.65%	68.71%
MASS	44 Neutral	$198.34M	-3.14	-42.72%	―	4.49%	3.61%

Pacific Biosciences Corporate Events

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.