Financial Performance - Q2 2025 product and service revenue reached $39.8 million, a 7% sequential increase and a 10% increase compared to Q2 2024[12] - Consumable revenue increased by 11% year-over-year, with Revio pull-through in the low-to-mid $200,000s per system[12] - Instrument revenue increased sequentially but decreased by 4% year-over-year due to funding constraints[12] - Non-GAAP gross margin was approximately 38% in Q2 2025, compared to 37% in Q2 2024[45, 47] - Q2 2025 non-GAAP operating expenses were $58.1 million, an 18% decrease compared to Q2 2024[47] - Cash burn was approximately $28 million in Q2 2025, with expectations for improvement in the second half of the year[46] System Placements - 15 Revio systems were shipped in Q2 2025, with 60% going to new customers and one-third to Dx/LDT and hospital labs[12] - 38 Vega systems were shipped, with nearly 60% going to new customers[13] - Cumulative Revio shipments reached 297, and Vega shipments reached 73[14] Guidance - Full-year revenue guidance is maintained at the midpoint, narrowing the range to $155 million to $165 million, representing 1% to 7% growth over 2024[21, 22] - The company expects mid-teens growth in consumables revenue and a mid-teens decline in instrument revenue[22]

Core Insights - PacBio announced preliminary unaudited revenue for Q1 2025, totaling $36.9 million, a decrease from $38.8 million in Q1 2024 [2][3] - The company is implementing a plan to reduce annualized operating expenses by $45 million to $50 million, adjusting its previous guidance of $270 million to $280 million [5][8] - The Vega system orders have accelerated, contributing to record consumable revenue, while Revio system placements have been impacted by funding uncertainties [4][6] Financial Performance - Preliminary Q1 2025 revenue breakdown includes: - Instrument revenue: $10.8 million (down from $19.0 million in Q1 2024) - Consumable revenue: $20.1 million (up from $16.0 million in Q1 2024) - Service and other revenue: $6.0 million (up from $3.8 million in Q1 2024) [3][4] - Cash, cash equivalents, and investments decreased to $343.1 million from $561.9 million year-over-year [3] Strategic Initiatives - The company is focusing on three key priorities: - Accelerating the adoption of HiFi sequencing - Investing in initiatives to improve gross margin - Advancing innovation in long-read sequencing to enhance scalability and reduce costs [7][6] - A restructuring of the commercial organization is underway to streamline management and improve sales efficiency [6] Guidance and Outlook - PacBio reaffirms its financial guidance for 2025, expecting revenue between $155 million to $170 million, with non-GAAP gross margins projected between 35% and 40% [14][8] - The company anticipates a higher ending cash and investments balance than the previous guidance of approximately $260 million due to expected cost savings [8]