PACIFIC BIOSCIENCES OF CALIFORNIA, INC. recently released its 10-Q report. Pacific Biosciences designs, develops, and manufactures sequencing systems and consumables used to analyze complex genetic material, with a focus on HiFi long-read sequencing. Its products include Revio, Vega, Sequel, and onso instruments, along with reagent kits and other workflow products sold to research institutions, clinical labs, genome centers, pharmaceutical companies, and agricultural customers.
For the three months ended March 31, 2026, PacBio reported revenue of $37.2 million, essentially unchanged from $37.2 million a year earlier. Product revenue rose 1% to $31.5 million, as a $1.7 million increase in consumables revenue to $21.8 million outweighed a $1.3 million decline in instrument revenue to $9.7 million; service and other revenue fell 7% to $5.6 million.
The company said Revio system sales increased to 15 units from 12 a year earlier, while Vega system sales slipped to 27 units from 28. Lower selling prices, including Vega promotional pricing, pressured instrument revenue. Consumables growth was driven by higher Revio consumables sales as the installed base expanded, partly offset by customers delaying shipments ahead of the SPRQ-Nx launch.
Gross profit improved to $12.8 million from a gross loss of $1.4 million a year earlier. Total cost of revenue fell 37% to $24.3 million, helped by a $6.4 million drop in product cost of revenue to $20.0 million and the absence of roughly $12.0 million of restructuring charges recorded in the prior-year quarter.
Operating expenses dropped sharply to $21.2 million from $427.6 million. The prior-year period included $381.8 million of restructuring and strategic-shift costs, including $359.3 million of accelerated amortization of acquired intangibles, $15.0 million of impairment charges, and $4.6 million of employee separation costs. In the latest quarter, operating expenses included $15.4 million of litigation settlement expenses and were reduced by a $45.8 million gain on disposal of assets to Illumina Cambridge Limited.
PacBio narrowed its operating loss to $8.4 million from $428.9 million. Net loss improved to $8.3 million from $426.1 million. Interest expense was essentially flat at $1.7 million, while other income declined to $2.0 million from $4.3 million.
Cash, cash equivalents, and investments totaled $276.0 million at March 31, 2026, down 1% from $279.5 million at December 31, 2025. The company said it received about $48.1 million in net cash proceeds from the asset disposal during the quarter.
Management said demand for instruments, especially Vega, remains constrained by funding conditions in the United States, leading to longer sales cycles and, in some cases, no instrument orders. It expects second-quarter 2026 revenue to grow by approximately single digits to low double digits sequentially, with stronger revenue in the second half of 2026 driven by clinical adoption, SPRQ-Nx consumable growth, and revenue from the Basecamp Research program, which it expects to begin contributing in the second and third quarters. Following these announcements, the company's shares moved -14.54%, and are now trading at a price of $1.41. For the full picture, make sure to review PACIFIC BIOSCIENCES OF CALIFORNIA, INC.'s 10-Q report.
