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what it is
PacBio sells DNA sequencing machines, consumables, and software that help labs read genetic code in longer pieces.
how it gets paid
Last year Pacific Biosciences made $160M in revenue. Instrument Products was the main engine at $58.0M, or 50% of sales.
what just happened
PacBio posted $115M of revenue in the latest quarter, but the loss stayed ugly.
At a glance
C+ balance sheet — struggling to keep the lights on
35/100 earnings predictability — expect surprises
-$1.84 fy2025 eps est
$2B fy2026 rev est
~$402M market cap
xvary composite: 29/100 — weak
What they do
PacBio sells DNA sequencing machines, consumables, and software that help labs read genetic code in longer pieces.
PacBio's SMRT sequencing reads one DNA molecule at a time. Plain English: longer reads, fewer gaps. So what: your lab gets cleaner answers on hard genomes, and the company keeps selling the consumables that go with the machine. It still booked $115M in quarterly revenue.
How they make money
$160M
annual revenue
Instrument Products
$58.0M
flat
Consumable Products
$21.6M
+200.0%
Service and Other
$22.0M
flat
Software and Analysis
$13.4M
flat
The products that matter
DNA sequencing instruments
Revio & Sequel IIe Systems
$21.6M last quarter
these systems produced $21.6M in quarterly instrument revenue. they get machines into labs, but they have not yet produced the kind of scale that offsets PACB's losses.
placement engine
reagents and flow cells
Consumables
$21.6M last quarter
this line also generated $21.6M last quarter. that's the number to watch, because consumables are the recurring piece that should grow as more instruments stay active in customer labs.
recurring revenue
maintenance and support
Service & Other
$1.45M last quarter
service and other revenue was just $1.45M last quarter. even with about 1,000 instruments installed, the support stream is still small, which tells you the installed base is not yet doing heavy economic lifting.
small today
Key numbers
$115M
quarter revenue
This is the whole game right now. Compare it with the $700M debt load, and you see why execution matters more than stories.
$1.69
quarter EPS
You are still paying for growth that has not turned into profit. Losses this size keep dilution and financing risk alive.
25.3%
gross margin
This tells you how much is left after direct costs. Better than a hardware vendor, worse than a software business.
$700M
long-term debt
This is the quiet pressure point. A $700M debt stack against a $402M market cap leaves little room for mistakes.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $700M (64% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for PACB right now.
source: institutional data · return history unavailable
What just happened
beat estimates
PacBio posted $115M of revenue in the latest quarter, but the loss stayed ugly.
Revenue rose 200% vs. prior year, while EPS was -$1.69 and gross margin was 25.3%. The top line is moving, but the bottom line is still stuck in the mud.
$115M
revenue
$1.69
eps
25.3%
gross margin
the number that mattered
The $115M revenue print matters because it shows demand is real, even if profit is not.
source: company earnings report, 2026
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What could go wrong
the #1 risk is running out of balance-sheet room before long-read adoption scales.
high
cash burn and funding pressure
PACB carries $700M in long-term debt, equal to 64% of capital, with a C+ balance sheet and a fy2025 eps estimate of -$1.84. that combination leaves very little margin for operating misses.
if growth stalls, the next story is financing, not sequencing
high
the installed-base thesis may not scale fast enough
instruments and consumables both produced $21.6M last quarter. that's the opposite of what a mature razor-and-blades model looks like. you want the blades ahead of the razor.
until consumables lead, recurring revenue remains more promise than proof
med
competitive pressure from the incumbent
PACB holds 2% market share while Illumina sits around 80%. being technologically differentiated is useful. being outscaled by the market leader is still expensive.
taking even a few points of share requires winning against a much larger rival
med
guidance leaves little room for disappointment
management guided to $165M–$180M in 2026 revenue, or 3–12% growth. that's not a hypergrowth setup. it's a prove-it range.
landing below the low end would hit confidence in both adoption and liquidity
with 2% market share, 25.3% gross margin, and $700M in long-term debt, PACB does not have much room for slow adoption or another bad capital-markets window
source: institutional data · regulatory filings · risk analysis
Pay attention to
the metric
consumables need to move ahead of instruments
last quarter both lines were $21.6M. if PACB is building a real recurring-revenue model, consumables should become the larger number next.
calendar
track progress against the $165M–$180M 2026 guide
the guide implies only 3–12% growth. each quarter matters when the annual range is this tight and the balance sheet is already carrying $700M in debt.
funding risk
watch the balance sheet, not just the technology
a $402M market cap against $700M in long-term debt means financing risk can overpower product progress if operating losses persist.
ownership trend
large holders have not been sending an all-clear
ARK Investment Management reduced its position by 14.8% in Q4 2025. one holder is not the whole story, but it is one more sign this remains a prove-it stock.
Analyst rankings
earnings predictability
35 / 100
earnings predictability: 35/100. in human-speak, analysts do not trust this business to produce smooth quarterly results.
price stability
5 / 100
price stability: 5/100. this is not a bunker stock. it trades like a small-cap turnaround with real balance-sheet stress.
source: institutional data
Institutional activity
institutional ownership data for PACB is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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