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Pacific Biosciences (PACB)
NASDAQ:PACB
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Pacific Biosciences
(NASDAQ:PACB)
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Rating:48Neutral
Price Target:
$1.50
▼(-24.24% Downside)
Pacific Biosciences' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. Despite positive international growth and innovative product launches highlighted in the earnings call, the stock's valuation remains unattractive due to ongoing losses. Technical indicators suggest a bearish trend, further weighing on the stock's score.
Positive Factors
International Revenue Growth
Strong international growth, particularly in APAC and EMEA, indicates successful global expansion and increased market penetration, which can drive long-term revenue stability and diversification.
Innovative Product Launches
Innovative product launches like SPRQ chemistry enhance product capabilities, potentially attracting new customers and increasing market share, supporting long-term competitive advantage.
Cash Position and Cost Management
A strong cash position and effective cost management provide financial flexibility, enabling strategic investments and cushioning against economic uncertainties, supporting long-term sustainability.
Negative Factors
Declining Instrument Revenue
Declining instrument revenue, particularly due to funding constraints, indicates challenges in maintaining sales growth, which could impact long-term revenue stability and market competitiveness.
High Leverage and Financial Risk
High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities, affecting long-term financial health.
Negative Cash Flow
Negative cash flow indicates inefficiencies in cash generation, which can strain liquidity and hinder the company's ability to fund operations and growth initiatives, posing long-term challenges.
Pacific Biosciences (PACB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$594.73M
Dividend YieldN/A
Average Volume (3M)7.26M
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue Growth-17.35%
EPS Growth-19.34%
CountryUS
Employees575
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.14
Shares Outstanding300,370,600
10 Day Avg. Volume8,808,925
30 Day Avg. Volume7,258,273
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 Cap1.27
Enterprise Value/Revenue4.85
Enterprise Value/Gross Profit-2.30
Enterprise Value/Ebitda-6.75
Forecast
1Y Price Target
$1.99Price Target Upside0.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Pacific Biosciences Business Overview & Revenue Model
Company DescriptionPacific 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 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 Key Performance Indicators (KPIs)
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
Positive
1.98
Price Trends
1.35
Positive
1.34
Positive
1.36
Positive
Market Momentum
0.13
Negative
71.50
Negative
78.70
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 1.98 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.35, and above the 200-day MA of 1.36, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 71.50 is Negative, neither overbought nor oversold. The STOCH value of 78.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $324.41M | ― | -46.85% | ― | 14.65% | -86.36% | |
58 Neutral | $594.11M | ― | -29.42% | ― | 23.13% | 46.62% | |
56 Neutral | $355.30M | ― | -176.94% | ― | 23.32% | 23.29% | |
55 Neutral | $275.58M | ― | -87.65% | ― | 2.47% | 56.93% | |
52 Neutral | $513.98M | ― | -1.67% | ― | -0.85% | 61.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $594.73M | ― | -189.52% | ― | -17.35% | -19.34% |
* Healthcare Sector Average
PACB
Pacific Biosciences
1.90
0.10
5.56%
BFLY
Butterfly Network
2.36
0.63
36.42%
OM
Outset Medical
15.53
7.07
83.57%
MASS
908 Devices
8.77
5.34
155.69%
NPCE
NeuroPace
10.79
4.79
79.83%
CTKB
Cytek Biosciences
4.17
-0.92
-18.07%
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.