Pacific Biosciences Reports $37.2 Million Revenue in Q1 2025, Operating Loss Surges to $428.9 Million

Pacific Biosciences of California, Inc. reported a total revenue of $37.2 million for the first quarter of 2025, a decrease of 4% compared to $38.8 million in the same period of 2024. The revenue breakdown included $11.0 million from instrument sales, $20.1 million from consumables, and $6.0 million from service and other revenue. The decline in product revenue was primarily attributed to lower sales of the Revio systems, which sold 12 units in Q1 2025 compared to 28 units in Q1 2024. This was partially offset by increased sales of the Vega systems and consumables. The company reported a gross loss of $1.4 million, a significant decline from a gross profit of $11.3 million in the prior year, largely due to restructuring charges and increased costs associated with amortization of acquired intangible assets.

The company's operating loss for the first quarter surged to $428.9 million, compared to a loss of $81.4 million in the same quarter last year. This increase was driven by $381.8 million in restructuring costs, which included $359.3 million in accelerated amortization of intangible assets and $15.0 million in impairment charges. The total operating expenses rose to $427.6 million, a 362% increase from the previous year, reflecting the impact of these restructuring initiatives. As of March 31, 2025, Pacific Biosciences had cash, cash equivalents, and investments totaling $343.1 million, down 12% from $389.9 million at the end of 2024.

In terms of strategic developments, the company has been focusing on enhancing its product offerings and expanding its market reach. The introduction of the Vega benchtop platform and the acceleration of sample processing on the Revio platform are key initiatives aimed at broadening the long-read market opportunity. Additionally, the company is investing in future product launches to diversify its offerings and is progressing its clinical strategy to improve outcomes in genetic testing. However, the sales cycle for Revio instruments has been elongated due to uncertainties surrounding funding for new capital equipment, particularly from the National Institutes of Health (NIH) and academic institutions.

Operationally, Pacific Biosciences has seen fluctuations in customer demand, with no single customer accounting for more than 10% of total revenue in the reported periods. The company has also implemented workforce reductions and other cost-saving measures as part of its restructuring efforts. As of March 31, 2025, the company had 300,084,685 shares of common stock outstanding. Looking ahead, Pacific Biosciences anticipates that macroeconomic factors, including inflation and geopolitical tensions, may continue to impact its financial performance and operational strategies. The company remains committed to its strategic objectives and believes that its HiFi sequencing technology positions it well for future growth in the clinical sequencing market.