Pacific Biosciences of California(PACB) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results Overview PacBio reported sequential and year-over-year revenue growth in Q2 2025, with improved financial performance and operational milestones Summary Financial Performance (Q2 2025 vs Q2 2024) PacBio achieved sequential and year-over-year revenue growth to $39.8 million in Q2 2025, with cash and investments at $314.7 million Q2 2025 vs Q2 2024 Key Financial and Operational Metrics | Metric | Q2 2025 | Q2 2024 | | :-------------------------------- | :------------ | :------------ | | Revenue | $39.8 million | $36.0 million | | Instrument revenue | $14.2 million | $14.7 million | | Consumable revenue | $18.9 million | $17.0 million | | Service and other revenue | $6.7 million | $4.3 million | | TM Revio systems | 15 | 24 | | TM Vega systems | 38 | — | | Annualized Revio pull-through per system | ~$219,000 | ~$251,000 | | Cash, cash equivalents, and investments | $314.7 million | $509.8 million | GAAP Financial Performance GAAP results for Q2 2025 showed significant improvements, with increased gross profit and reduced operating expenses and net loss Gross Profit GAAP gross profit significantly increased to $14.7 million in Q2 2025 compared to $5.9 million in Q2 2024 GAAP Gross Profit (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :----------- | :------------ | :------------ | | GAAP Gross Profit | $14.7 million | $5.9 million | Operating Expenses GAAP operating expenses substantially decreased to $59.5 million in Q2 2025 from $181.8 million in Q2 2024 GAAP Operating Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :-------------------- | :------------ | :------------ | | GAAP Operating Expenses | $59.5 million | $181.8 million | | Non-cash share-based compensation | $11.0 million | $16.1 million | Net Loss and EPS GAAP net loss significantly improved to $41.9 million (EPS $0.14) in Q2 2025 GAAP Net Loss and EPS (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :---------------- | :------------ | :------------ | | GAAP Net Loss | $41.9 million | $173.3 million | | GAAP Net Loss per Share | $0.14 | $0.64 | Non-GAAP Financial Performance Non-GAAP results for Q2 2025 showed improved gross profit and margin, with reduced operating expenses and net loss Gross Profit and Margin Non-GAAP gross profit increased to $15.2 million (margin 38%) in Q2 2025 Non-GAAP Gross Profit and Margin (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :-------------------- | :------------ | :------------ | | Non-GAAP Gross Profit | $15.2 million | $13.2 million | | Non-GAAP Gross Margin | 38% | 37% | Operating Expenses Non-GAAP operating expenses decreased to $58.1 million in Q2 2025 from $71.0 million in Q2 2024 Non-GAAP Operating Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :----------------------- | :------------ | :------------ | | Non-GAAP Operating Expenses | $58.1 million | $71.0 million | Net Loss and EPS Non-GAAP net loss improved to $40.0 million (EPS $0.13) in Q2 2025 Non-GAAP Net Loss and EPS (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :-------------------- | :------------ | :------------ | | Non-GAAP Net Loss | $40.0 million | $55.2 million | | Non-GAAP Net Loss per Share | $0.13 | $0.20 | Operational Highlights and Strategic Updates PacBio achieved significant scientific and commercial milestones, including key publications, collaborations, and market expansion - Published the Platinum Pedigree benchmark in Nature Methods, improving AI-based variant calling accuracy and setting a new standard for evaluating complex genomic variation using PacBio HiFi sequencing[7] - Joined the 1000 Genomes Long Read Project to contribute isoform-level transcriptome sequencing using the Kinnex RNA kit and Revio system[7] - Expanded distribution in China through a new agreement with Haorui Gene, providing access to clinical lab networks and supporting PacBio HiFi sequencing[7] - PacBio HiFi sequencing powered the first Arab human pangenome, enhancing understanding of genetic diversity in Middle Eastern populations[7] Management's Commentary CEO Christian Henry highlighted the return to revenue growth, reduced operating expenses, and decreased cash burn due to solid execution - PacBio returned to both sequential and year-over-year revenue growth in Q2, while continuing to reduce operating expenses and cash burn[8] - Performance reflects solid execution, from disciplined cost management to growing adoption of HiFi sequencing platforms[8] - Encouraged by Revio's momentum in clinical settings and Vega's continued expansion into new markets, positioning PacBio for sustainable growth[8] Company Information and Disclosures This section provides essential information about PacBio, its non-GAAP financial measures, and forward-looking statements About PacBio PacBio is a premier life science technology company specializing in advanced sequencing solutions for various research applications - PacBio (NASDAQ: PACB) is a life science technology company specializing in advanced sequencing solutions[10] - Products include HiFi long-read sequencing, addressing applications such as human germline sequencing, plant and animal sciences, infectious disease, microbiology, and oncology[10] - PacBio products are provided for Research Use Only and are not for use in diagnostic procedures[11] Non-GAAP Financial Measures Statement PacBio provides non-GAAP financial measures as supplemental information to GAAP results, offering consistency and comparability for investors - Non-GAAP results are reported for basic net income/loss per share, net income/loss, gross margins, gross profit/loss, and operating expenses, as supplemental information to GAAP[12] - Non-GAAP measures are considered helpful for consistency and comparability with past financial performance but have limitations and should not be viewed in isolation[12] - Excluded items from non-GAAP measures include amortization of intangible assets, changes in fair value of contingent consideration, impairment charges, restructuring-related expenses, and benefits from income taxes[13] Forward-Looking Statements This section highlights forward-looking statements subject to various risks and uncertainties, including product development and market expansion - Statements regarding cost-saving plans, financial guidance, product reception, market expansion, customer use, and product performance are forward-looking[16] - Forward-looking statements are subject to risks and uncertainties, including challenges in product development, manufacturing, marketing, potential order cancellations, competition, supply chain disruptions, and legal claims[16] - PacBio disclaims any obligation to revise or update these statements, except as required by law[16] Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated GAAP financial statements, including statements of operations and balance sheets Statements of Operations (Three Months Ended June 30, 2025) This section presents the detailed GAAP income statement for the three months ended June 30, 2025, compared to prior periods Unaudited Condensed Consolidated Statements of Operations (Three Months Ended, in thousands, except per share amounts) | (in thousands, except per share amounts) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------- | :------------ | | Total revenue | $39,766 | $37,153 | $36,013 | | Total cost of revenue | $25,082 | $38,524 | $30,075 | | Gross profit (loss) | $14,684 | $(1,371) | $5,938 | | Total operating expense | $59,537 | $427,563 | $181,784 | | Operating loss | $(44,853) | $(428,934) | $(175,846) | | Net loss | $(41,930) | $(426,075) | $(173,319) | | Net loss per share: Basic | $(0.14) | $(1.44) | $(0.64) | Statements of Operations (Six Months Ended June 30, 2025) This section provides the detailed GAAP income statement for the six months ended June 30, 2025, detailing year-to-date performance Unaudited Condensed Consolidated Statements of Operations (Six Months Ended, in thousands, except per share amounts) | (in thousands, except per share amounts) | June 30, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | Total revenue | $76,919 | $74,823 | | Total cost of revenue | $63,606 | $57,603 | | Gross profit | $13,313 | $17,220 | | Total operating expense | $487,100 | $274,428 | | Operating loss | $(473,787) | $(257,208) | | Net loss | $(468,005) | $(251,497) | | Net loss per share: Basic | $(1.57) | $(0.93) | Balance Sheets (As of June 30, 2025) The balance sheet as of June 30, 2025, details assets, liabilities, and stockholders' equity, with cash and investments at $314.7 million Unaudited Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Assets | | | | Cash and investments | $314,735 | $389,931 | | Total Assets | $825,470 | $1,260,447 | | Liabilities and Stockholders' Equity | | | | Convertible senior notes, net | $646,436 | $647,494 | | Stockholders' equity | $61,489 | $506,594 | | Total Liabilities and Stockholders' Equity | $825,470 | $1,260,447 | Reconciliation of Non-GAAP Financial Measures This section provides detailed reconciliations of GAAP to Non-GAAP financial measures Net Loss and EPS Reconciliation This section reconciles GAAP net loss and basic net loss per share to their non-GAAP counterparts for Q2 and YTD 2025 and 2024 Reconciliation of GAAP to Non-GAAP Net Loss and EPS (in thousands, except per share amounts) | (in thousands, except per share amounts) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--------------------------------------- | :------------ | :------------ | :------------ | :------------ | | GAAP net loss | $(41,930) | $(173,319) | $(468,005) | $(251,497) | | Non-GAAP net loss | $(39,951) | $(55,241) | $(84,356) | $(126,640) | | GAAP basic net loss per share | $(0.14) | $(0.64) | $(1.57) | $(0.93) | | Non-GAAP basic net loss per share | $(0.13) | $(0.20) | $(0.28) | $(0.47) | Gross Profit and Operating Expense Reconciliation This section reconciles GAAP gross profit and total operating expenses to their non-GAAP equivalents for Q2 and YTD 2025 and 2024 Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expense (in thousands) | (in thousands) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--------------------------------------- | :------------ | :------------ | :------------ | :------------ | | GAAP gross profit (loss) | $14,684 | $5,938 | $13,313 | $17,220 | | Non-GAAP gross profit | $15,215 | $13,216 | $30,216 | $25,841 | | GAAP gross profit (loss) % | 37% | 16% | 17% | 23% | | Non-GAAP gross profit % | 38% | 37% | 39% | 35% | | GAAP total operating expense | $59,537 | $181,784 | $487,100 | $274,428 | | Non-GAAP total operating expense | $58,089 | $70,984 | $119,808 | $158,192 | Additional Information This section provides details on the quarterly conference call and contact information for investor and media inquiries Quarterly Conference Call Details Management hosted a quarterly conference call on August 07, 2025, to discuss financial results, with access via dial-in and webcast - Conference call held on August 07, 2025, at 5:00 p.m. Eastern Time[9] - Investors can access the call by dialing 1-888-349-0136 (or 1-412-317-0459 for international callers) and requesting to join the 'PacBio Q2 Earnings Call'[9] - The call was webcast live and is available for replay at **https://investor.pacificbiosciences.com**[9](index=9&type=chunk) Investor and Media Contacts Contact information for investor relations and media inquiries is provided for direct communication - Investor contact: Todd Friedman at ir@pacb.com[18] - Media contact: pr@pacb.com[18]