Pacific Biosciences Reports Fourth Quarter and Full Year 2025 Financial Results
Pacific Biosciences of California, a developer of advanced DNA sequencing systems, released its financial results for the fourth quarter and full year ended December 31, 2025. The announcement covers revenue performance, profitability metrics, product placements, and cash position, providing a detailed view of the company’s recent operational and financial trends.
Key Financial and Operational Highlights
Revenue and Product Sales:
- Total revenue for Q4 2025 was $44.6 million, up 14% from $39.2 million in Q4 2024.
- Full year 2025 revenue reached $160.0 million, a 4% increase from $154.0 million in 2024.
- Consumable revenue, which includes supplies used in sequencing, rose 15% to $21.6 million in Q4 and 17% to $82.0 million for the full year.
- Instrument revenue, representing sales of sequencing machines, was $17.3 million in Q4 2025, up from $15.3 million a year earlier, but declined to $53.8 million for the full year from $65.8 million in 2024.
- Service and other revenue increased to $5.7 million in Q4 and $24.2 million for the year, compared to $5.1 million and $17.9 million, respectively, in 2024.
System Placements and Pull-Through:
- The company placed 21 units of its Revio™ sequencing system in Q4 2025, slightly fewer than 23 units in Q4 2024, totaling 61 placements for the full year versus 97 in 2024.
- Vega™ system placements surged to 42 in Q4 2025 from just 7 in Q4 2024, with 140 placements for the year compared to 7 in 2024, reflecting strong adoption of this newer platform.
- Annualized consumable revenue per Revio system was approximately $242,000 in Q4 2025, stable compared to $240,000 in Q4 2024 and slightly higher than the full year 2024 average of $233,000.
Profitability and Expenses:
- GAAP gross profit for Q4 2025 was $16.6 million, up from $10.1 million in Q4 2024.
- Non-GAAP gross profit was $17.8 million in Q4 2025, with a gross margin of 40%, improving from 31% in the same quarter last year.
- GAAP operating expenses dropped sharply to $57.8 million in Q4 2025 from $163.1 million in Q4 2024, largely due to the absence of significant non-cash impairment charges recorded in the prior year.
- Non-GAAP operating expenses also declined to $56.2 million from $68.6 million year-over-year.
- Non-cash share-based compensation expenses were $8.6 million in Q4 2025, down from $14.8 million in Q4 2024.
Net Income and Loss:
- GAAP net loss for Q4 2025 was $40.4 million, compared to a GAAP net income of $2.4 million in Q4 2024. The prior year quarter’s net income included a $154.4 million gain from debt restructuring.
- GAAP net loss per share was $0.13 in Q4 2025, versus net income per share of $0.01 in Q4 2024.
- On a non-GAAP basis, the net loss narrowed to $37.6 million in Q4 2025 from $55.3 million in Q4 2024.
- Non-GAAP net loss per share improved to $0.12 from $0.20 year-over-year.
Balance Sheet and Cash Position:
- Cash, cash equivalents, and investments totaled $279.5 million at the end of 2025, down from $389.9 million at the end of 2024.
Additional Context and Implications
- The significant reduction in operating expenses compared to the prior year quarter reflects the absence of large impairment charges related to goodwill and in-process research and development that weighed heavily on 2024 results.
- The strong increase in Vega system placements signals growing market acceptance of this newer sequencing platform, which could drive future revenue growth, especially in consumables and services.
- Despite the revenue growth and improved gross margins, the company remains unprofitable on both GAAP and non-GAAP bases, though the narrowing non-GAAP net loss suggests progress toward better cost management.
- The decline in cash reserves year-over-year indicates ongoing investment in operations and product development, which investors should consider in the context of the company’s path to profitability.
Overall, Pacific Biosciences is showing signs of operational improvement with expanding product adoption and better gross margins, but it continues to face challenges in achieving consistent profitability.