Financial Data and Key Metrics Changes - In Q4 2025, total revenue grew 14% year-over-year to $44.6 million, with a sequential increase of 16% [7][27] - For the full year 2025, total revenue reached $160 million, representing a 4% growth over 2024 [7][30] - Non-GAAP gross margin improved to 40% in Q4 2025, up from 31% in Q4 2024, and for the full year, it was also 40%, compared to 33% in 2024 [31][24] - Non-GAAP operating expenses decreased to $56.2 million in Q4 2025, down 18% year-over-year, and for the full year, they were $229.9 million, down from $289.2 million in 2024 [32][24] - Cash burn improved from $214 million in 2023 to $105 million in 2025, with approximately $280 million in cash and investments at year-end [25][34] Business Line Data and Key Metrics Changes - Consumable revenue in Q4 2025 increased 15% year-over-year to $21.6 million, driven by an increase in the installed base and consistent system utilization [27][28] - Instrument revenue rose 13% in Q4 to $17.3 million, primarily due to increased shipments of Vega systems [28] - For the full year 2025, consumables revenue increased 16% to $82 million, while instrument revenue decreased 18% to $53.8 million [30] Market Data and Key Metrics Changes - Revenue from the Americas increased 3% to $20.7 million in Q4 2025, while Asia Pacific revenue rose 4% to $9.3 million, and EMEA revenue surged 45% to $14.6 million [29][10] - EMEA's strong growth was attributed to increased Vega instrument shipments and higher Revio consumables as clinical customers transitioned from pilot testing to broader adoption [11][29] Company Strategy and Development Direction - The company aims to enhance the economics of HiFi sequencing through the launch of SparkNex and multi-use smart cells, targeting increased market penetration [37] - Focus areas include accelerating clinical adoption in rare disease, oncology, and carrier screening, as well as enabling population-scale sequencing studies [37] - The company plans to leverage AI to unlock biological insights from multi-omic HiFi data [37] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued growth in clinical markets, particularly in rare disease and whole genome sequencing, despite a challenging academic funding environment [11][54] - The outlook for 2026 projects revenue between $165 million and $180 million, representing approximately 8% growth at the midpoint [34] - Management expects non-GAAP gross margin to improve by 100-400 basis points in 2026, driven by a higher consumables mix and the introduction of SparkNex [35] Other Important Information - The company sold its short-read sequencing assets for net proceeds of approximately $48 million, strengthening its balance sheet and extending its cash runway [26] - The company is committed to supporting existing customers during the transition period following the divestment of short-read assets [26] Q&A Session Summary Question: What should we expect for Revio pull-through and consumables growth? - Management expects SparkNex to lower sample costs, likely increasing utilization and expanding market share, while maintaining pull-through in the range of $225K-$250K [41][43] Question: What is the outlook for clinical growth outside the U.S.? - Management sees strong growth in clinical markets, particularly in EMEA, with significant movement from pilot phases to production [53] Question: Where are the biggest opportunities for OpEx reduction? - Management plans to focus on managing G&A expenses and R&D while continuing to reduce production costs through insourcing [66][68] Question: What impact will the short-read divestment have on costs? - Management indicated that while there won't be substantial additional costs taken out immediately, the divestment will provide a tailwind to gross margin over time [72] Question: How does long-read sequencing compare to standard care in terms of cost? - Long-read sequencing is expected to provide better diagnostic yield, faster turnaround times, and lower overall costs by consolidating multiple tests into one [74]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue grew 14% year-over-year to $44.6 million, with a sequential increase of 16% [5][25] - For the full year 2025, total revenue reached $160 million, representing a 4% growth over 2024 [5][29] - Non-GAAP gross margin improved to 40% in Q4 2025, up from 31% in Q4 2024, and for the full year, it was also 40%, compared to 33% in 2024 [30][22] - Non-GAAP operating expenses decreased to $56.2 million in Q4 2025, down 18% year-over-year, and for the full year, they were $229.9 million, down from $289.2 million in 2024 [31][22] Business Line Data and Key Metrics Changes - Consumable revenue in Q4 2025 increased 15% year-over-year to $21.6 million, driven by a growing installed base and consistent system utilization [25][6] - Instrument revenue rose 13% in Q4 2025 to $17.3 million, primarily due to increased shipments of Vega systems [26] - For the full year 2025, consumables revenue increased 16% to $82 million, while instrument revenue decreased 18% to $53.8 million [29] Market Data and Key Metrics Changes - Revenue from the Americas increased 3% to $20.7 million in Q4 2025, while Asia Pacific revenue grew 4% to $9.3 million, and EMEA revenue surged 45% to $14.6 million [27][28] - The strong growth in EMEA was attributed to increased clinical adoption and higher shipments of Vega instruments [28] Company Strategy and Development Direction - The company aims to improve the economics of HiFi sequencing through the launch of SparkNex and multi-use smart cells, targeting increased market penetration [37] - Focus areas include accelerating clinical adoption in rare disease, oncology, and carrier screening, as well as enabling population-scale sequencing studies [37] - The company plans to leverage AI to unlock unique biological insights from multi-omic HiFi data [37] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued growth in clinical markets, particularly in rare disease and whole genome sequencing, despite a challenging academic funding environment [9][52] - The outlook for 2026 projects revenue between $165 million and $180 million, representing approximately 8% growth at the midpoint [33] - Management expects non-GAAP gross margin to improve by 100-400 basis points in 2026, driven by a higher consumables mix and the introduction of SparkNex [34] Other Important Information - The company ended 2025 with approximately $280 million in cash and investments, down from $389.9 million at the end of 2024 [23][33] - The recent sale of short-read sequencing assets for approximately $48 million is expected to strengthen the balance sheet and extend the cash runway [24] Q&A Session Summary Question: What should we expect OUS to do this year from a clinical growth perspective? - Management noted strong growth in clinical markets, particularly in EMEA, with many customers moving from pilot testing to broader clinical adoption [52] Question: What is the biggest opportunity to reduce OpEx spending this year? - Management indicated a focus on managing G&A expenses and R&D while maintaining funding for critical programs [66] Question: Did you see any budget flush, particularly from Europe in full Q25? - Management did not observe significant budget flush but noted some opportunistic purchasing [51]

Q4 & Full Year 2025 Earnings Presentation February 12, 2026 1 Safe harbor and non-GAAP disclosures Statement regarding use of non‐GAAP financial measures PacBio reports non‐GAAP results for basic net income and loss per share, net income, net loss, gross margins, gross profit and operating expenses in addition to, and not as a substitute for, or because it believes that such information is superior to, financial measures calculated in accordance with GAAP. PacBio believes that non-GAAP financial information ...