PacBio cuts upper end of 2026 revenue forecast to $160 million

Key Facts

On November 4, PacBio cut the upper end of its 2026 revenue forecast to $160 million from $165 million, while keeping the lower end at $155 million, according to its results announcement for the third quarter ended September 30. The change came after the company had forecast revenue of between $155 million and $165 million in its second-quarter announcement. The results showed third-quarter revenue of $40.6 million, compared with $38.4 million in the same period of 2025. The company’s announcement did not link the forecast cut to specific reasons, while it attributed the decline in non-GAAP gross margin mainly to higher memory costs and manufacturing transition costs for the Vega system. The results also showed a decrease in cash and cash equivalents and investments compared with the end of the corresponding quarter last year.

Instrument revenue rose to $13.2 million in the third quarter, from $11.3 million a year earlier, while consumables revenue fell to $20.8 million from $21.3 million. These components put instrument revenue growth alongside lower consumables sales, which accounted for a larger share of the revenue cited in the announcement. At the margin level, GAAP gross margin was about 33%, compared with 41% in the third quarter of 2025. Non-GAAP gross margin fell to 36% from 42% in the year-earlier period. The company said the decline in non-GAAP gross margin was mainly related to higher memory costs and manufacturing transition costs for the Vega system.

Cash and cash equivalents and investments totaled $199.4 million at the end of the third quarter, compared with $298.7 million at the end of the corresponding period in 2025. The company had reported $276 million in cash and investments at the end of the first quarter of 2026, while revenue that quarter was $37.2 million, equal to revenue in the first quarter of 2025. In the third quarter, PacBio posted a GAAP net loss of $37.8 million, compared with $38 million a year earlier. The non-GAAP net loss was $32.8 million, compared with $36.8 million in the year-earlier quarter. GAAP operating expenses fell to $50.5 million from $54.8 million, and the company said the decline mainly reflected lower employee and employee-related expenses following restructuring initiatives.

The company placed 15 Revio systems in the third quarter, compared with 13 a year earlier, and 35 Vega systems versus 32. But annualized consumables spending per Revio system fell to about $204,000 from about $236,000. PacBio said more than half of Revio consumables revenue was associated with SPRQ-Nx by the end of the quarter, and two-thirds of the installed Revio base had opted for the software upgrade to use it. These indicators show growth in the number of systems placed alongside a change in consumables revenue per system. Chief Executive Mark Van Oene said his focus is on “strengthening execution, prioritizing, and translating the strength of our technology into sustainable growth.”

On costs, the company lowered its 2026 non-GAAP operating expense forecast to a range of $203 million to $207 million, from a previous range of $215 million to $220 million. Van Oene said in the earnings call transcript that the revision reflected restructuring savings. The lower expense range came alongside a cut to the upper end of the annual revenue forecast, while actual GAAP operating expenses in the third quarter declined on lower employee and employee-related expenses. The company also announced that the chief executive would take on the role of interim chief financial officer after Jim Gibson stepped down. Bill Meyer was appointed chief accounting officer, while the company searches for a new CFO.

The company’s upcoming events include the UBS Global Healthcare Conference on November 9, 2026, and the annual Stephens Investment Conference on November 18. These dates follow the third-quarter results announcement and the cut to the annual revenue range, as the market tracks the revenue, margins and liquidity figures reported by the company. PacBio had said adoption of SPRQ-Nx and collaborations in clinical sequencing, genome research and artificial intelligence were expanding its addressable markets. Van Oene affirmed that management is focused on execution and translating the technology’s potential into sustainable growth. Among the operating indicators the company reported for the quarter were increases in Revio and Vega systems placed, alongside a decline in annualized consumables spending per Revio system.