Pacific Biosciences of California, Inc. (PACB) specializes in pioneering and manufacturing advanced genetic sequencing platforms, empowering researchers and institutions to unravel intricate ...
Pacific Biosciences of California, Inc., commonly known as PacBio, is a leading life science technology company that designs, develops, and manufactures sequencing systems and consumables. Founded in 2004 and headquartered in Menlo Park, California, PacBio is publicly traded on NASDAQ under the symbol PACB. The company is renowned for its ...Pacific Biosciences of California, Inc., commonly known as PacBio, is a leading life science technology company that designs, develops, and manufactures sequencing systems and consumables. Founded in 2004 and headquartered in Menlo Park, California, PacBio is publicly traded on NASDAQ under the symbol PACB. The company is renowned for its proprietary single molecule real-time (SMRT) sequencing technology, which provides long-read, highly accurate sequencing data, enabling researchers to gain a comprehensive view of genomes, transcriptomes, and epigenomes.
PacBio's product portfolio includes the PacBio Sequencing Systems, such as the Sequel and Revio platforms, which are designed for executing and monitoring biochemical sequencing reactions. The company also supplies essential consumables, including SMRT cells and a range of reagent kits. These kits include template preparation kits, which convert DNA into SMRTbell libraries; binding kits, which attach libraries to polymerases; and sequencing kits containing phospholinked nucleotides for real-time sequencing. These products serve a broad global clientele, including research institutions, commercial diagnostic labs, genome centers, public health organizations, hospitals, clinical research institutes, CROs, academic institutions, pharmaceutical companies, and agricultural enterprises.
Financially, PacBio has experienced significant changes. As of the latest data, the company's market capitalization is approximately $368 million, with a stock price around $1.19. The company reported a revenue of $200.5 million in 2023, but has faced operational losses, with negative EBITDA and net profit margins, indicating ongoing investment in R&D and commercialization efforts. The company's gross profit margin is 36%, while R&D expenses account for 55.5% of revenue, reflecting its focus on innovation. PacBio has a strong balance sheet with over $900 million in debt, but also holds cash reserves, and its current ratio stands at 4.9, indicating good short-term liquidity.
Key leadership includes CEO Christian Henry, who has over two decades of experience in the life sciences industry, and Chairman John F. Milligan. The company has strategic alliances, such as a development and commercialization agreement with Invitae Corporation, and operates through a direct sales force in North America and Europe, with distribution partners worldwide.
PacBio aims to advance human health by providing the most complete and accurate view of genomes, enabling breakthroughs in genetic research and clinical applications.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$160.0M
+3.9%
+4.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-546.4M
-76.3%
-440.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+31.7%
+30.8%
-6.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-348.5%
-13.1%
-12.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-341.5%
-69.7%
-415.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-113.9M
+46.3%
-77.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-71.2%
+48.3%
-69.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
14206.6%
+10602.9%
-107.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
6.89x
-7.8%
-13.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day. And welcome to PacBio's Second Quarter of 2026 Earnings Call. [Operator Instructions] Also, please be aware that today's call is being recorded. I'd now like to turn the call over to Caylene Parrish from Gilmartin Group. Please go ahead.
Caylene Parrish: Good afternoon, and welcome to PacBio's Second Quarter 2026 Earnings Conference Call. With me today are Mark Van Oene, President and Chief Executive Officer, Jim Gibson, Chief Financial Officer, and Christian Henry, PacBio board member and advisor. Earlier today, we issued a press release outlining the financial results we'll be discussing on today's call, a copy of which is available on the Investors section of our website at www.pacb.com or as furnished on Form 8-K, available on the Securities and Exchange Commission website at www.sec.gov. A copy of our earnings presentation is also available on the Investors section of our website. On today's call, we will make forward-looking statements including, among others, statements providing predictions, estimates, expectations, and guidance. You should not place undue reliance on forward-looking statements because they are subject to assumptions, risks, and uncertainties that could cause our actual results to differ materially from those projected or discussed. Please review our SEC filings, including our most recent Form 10-Q and 10-K and our press releases, to better understand the risks and uncertainties that could cause results to differ. We disclaim any obligation to update or revise these forward-looking statements, except as required by law. We also present certain financial information on a non-GAAP basis, which is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the company's operating results as reported under U.S. GAAP. Reconciliations between historical U.S. GAAP and non-GAAP results are presented in our earnings release, which is available on the Investors section of our website. For future periods, we're unable to reconcile non-GAAP gross margin and non-GAAP operating expenses without unreasonable effort due to the uncertainty regarding, among other matters, certain acquisition-related items that may arise during the year. A recording of today's call will be available shortly after the live call in the Investors section of our website. Those electing to use the replay are cautioned that forward-looking statements may differ or change materially after the completion of the live call. I will now turn the call over to Christian.
Christian Henry: Thank you, and good afternoon, everyone. Earlier today, we announced that I am stepping down as President and Chief Executive Officer of PacBio and that Mark Van Oene will lead the company as President and Chief Executive Officer effective immediately. I will remain on the Board of Directors and become an advisor to Mark as he drives PacBio's strategy forward. Mark joined PacBio shortly after I did, and in that …