Nasdaq:PACB
PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
A clinical-stage genomics developer leveraging single-molecule real-time sequencing technology to advance precision medicine and life sciences research.
Key Metrics
Investment Thesis
Bull Case
Investors may consider PACB if they believe in the transformative potential of long-read sequencing for solving complex genomic challenges in oncology and rare diseases. The company holds a robust cash balance relative to its current liabilities, suggesting sufficient runway to continue R&D efforts while awaiting clinical milestones. Strategic partnerships could provide alternative revenue streams to offset high operating costs.
Bear Case
The substantial net loss of $546.4M and negative operating profit of -$553.9M signal deep financial burn that is unsustainable without significant future funding rounds or product approvals. High amortization of $369.4M indicates reliance on past acquisitions rather than current organic revenue generation, which may not translate to profitability soon. The widening deficit in retained earnings suggests the company is struggling to convert its technological edge into commercial success.
About PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Pacific Biosciences of California, Inc. (PACB) is a clinical-stage biotechnology company focused on developing high-throughput single-molecule real-time sequencing technologies for genomic medicine applications. The company primarily serves the life sciences research market through its SMRT Sequencing platform and offers related services via its affiliated entity, PacBio Biosciences. Recent financial data highlights significant investment in research and development alongside substantial amortization of intangible assets from prior acquisitions.
Analysis
Management Discussion
The company reported a net loss of $546.4M in 2025, with operating expenses reaching $599.6M, largely driven by $97.3M in research and development costs and $141.5M in general and administrative expenses. Despite a modest revenue increase to $160.0M from the previous year, the cash flow from operations was negative at -$111.2M, reflecting the capital-intensive nature of biotech R&D. However, the company maintained a healthy cash position with ending cash of $65.3M and marketable securities of $215.8M, providing some liquidity buffer.
Industry Overview
The genomics and sequencing industry is rapidly expanding as single-molecule sequencing technologies become integral to precision medicine and personalized cancer therapies. Competition is intensifying from established players like Illumina, creating pressure on pricing and market share for niche long-read technology providers. Regulatory pathways for genomic diagnostics are evolving, offering opportunities but also requiring significant investment in compliance and clinical validation.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $128.3M | $200.5M | $154.0M | $160.0M |
| Cost of Revenue | $79.3M | $147.7M | $116.7M | $114.2M |
| Gross Profit | $49.0M | $52.8M | $37.3M | $45.8M |
| Operating Expenses | $356.2M | $387.2M | $511.6M | $599.6M |
| Operating Income | $-307.2M | $-334.5M | $-474.3M | $-553.9M |
| R&D | $193.0M | $187.2M | $134.9M | $97.3M |
| G&A | $160.9M | $169.8M | $175.0M | $141.5M |
| Stock-Based Comp | $78.6M | $72.1M | $71.0M | $41.7M |
| Depreciation | $9.5M | $11.5M | $13.8M | $13.0M |
| Amortization | $900.0K | $6.2M | $27.4M | $369.4M |
| Other OpEx | $2.4M | $30.3M | $201.7M | $360.8M |
| Non-Operating Income | $-7.1M | $16.3M | $164.8M | $7.8M |
| Interest Expense | $14.7M | $14.3M | — | — |
| Pre-Tax Income | $-314.2M | $-318.2M | $-309.5M | $-546.1M |
| Income Tax | $0 | $-11.4M | $316.0K | $318.0K |
| Continuing Ops | $-314.2M | $-306.7M | $-309.9M | $-546.4M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-314.2M | $-306.7M | $-309.9M | $-546.4M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-314.2M | $-306.7M | $-309.9M | $-546.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $852.1M | $742.0M | $495.7M | $375.1M |
| Cash & Equivalents | $325.1M | $179.9M | $55.4M | $63.7M |
| Marketable Securities | $447.2M | $451.5M | $334.6M | $215.8M |
| Accounts Receivable | $18.8M | $36.6M | $27.5M | $35.4M |
| Inventory | $50.4M | $56.7M | $58.8M | $49.3M |
| Prepaid Expenses | $10.3M | $17.0M | $18.8M | $10.8M |
| Other Current Assets | $300.0K | $300.0K | $690.0K | $20.0K |
| Long-Term Assets | $915.0M | $1.00B | $764.8M | $409.0M |
| PP&E (Net) | $41.6M | $36.4M | $30.5M | $24.1M |
| Intangibles | $410.2M | $457.0M | $389.6M | $15.1M |
| Goodwill | $410.0M | $462.3M | $317.8M | $317.8M |
| Operating Leases | $39.8M | $32.6M | $16.1M | $41.7M |
| Other LT Assets | $13.4M | $15.7M | $10.8M | $10.3M |
| Total Assets | $1.77B | $1.75B | $1.26B | $784.1M |
| Current Liabilities | $263.3M | $95.0M | $66.3M | $72.8M |
| Accounts Payable | $12.0M | $15.1M | $16.6M | $20.8M |
| Current Leases | $8.9M | $9.6M | $10.0M | $448.0K |
| Deferred Revenue | $30.5M | $16.3M | $13.9M | $15.9M |
| Other Current Liab | $179.3M | $8.3M | $3.2M | $2.0M |
| Long-Term Liabilities | $940.8M | $949.7M | $687.6M | $705.9M |
| LT Operating Leases | $41.1M | $31.6M | $14.9M | $56.6M |
| Other LT Liab | $898.0M | $912.5M | $666.7M | $645.4M |
| Total Liabilities | $1.20B | $1.04B | $753.9M | $778.7M |
| Shareholders' Equity | $562.9M | $701.3M | $506.6M | $5.3M |
| Paid-In Capital | $2.10B | $2.54B | $2.65B | $2.70B |
| Retained Earnings | $-1.53B | $-1.84B | $-2.15B | $-2.70B |
| AOCI | $-4.8M | $219.0K | $422.0K | $457.0K |
| Total L&E | $1.77B | $1.75B | $1.26B | $784.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-314.2M | $-306.7M | $-309.9M | $-546.4M |
| Non-Cash Adjustments | $8.3M | $-19.3M | $150.4M | $429.1M |
| Working Capital Changes | $42.8M | $66.8M | $-46.6M | $6.1M |
| Cash from Operations | $-263.2M | $-259.2M | $-206.1M | $-111.2M |
| Capital Expenditures | $16.8M | $8.8M | $6.2M | $2.7M |
| Cash from Investing | $116.1M | $4.6M | $124.0M | $115.4M |
| Cash from Financing | $9.6M | $108.9M | $-43.0M | $3.4M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-137.5M | $-145.7M | $-125.0M | $7.7M |
| Beginning Cash | $465.8M | $328.3M | $182.6M | $57.6M |
| Ending Cash | $328.3M | $182.6M | $57.6M | $65.3M |
Frequently Asked Questions
How does PACIFIC BIOSCIENCES OF CALIFORNIA, INC. make money?
Core revenue derives from the sale of SMRT Sequencing systems, reagents, and services for genomic analysis; secondary streams include licensing agreements and collaborative research partnerships.
What are the main risks for PACB?
Significant ongoing net losses and a substantial retained earnings deficit indicating financial sustainability challenges; High operating expenses driven by heavy R&D investment and amortization of intangible assets; Reliance on successful clinical trial outcomes for future commercial viability; Volatile stock price typical of pre-revenue or early-stage biotechnology firms.
What is PACB's competitive advantage?
Proprietary single-molecule real-time (SMRT) sequencing technology offering long-read capabilities that resolve complex genome structures; Strong intellectual property portfolio protecting core sequencing methodologies; Established presence in academic and pharmaceutical research networks.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.