Pacific Biosciences Reports 10% Revenue Growth in Q2 2025, Net Loss Increases to $468M

Pacific Biosciences of California, Inc. (PacBio) reported its financial results for the second quarter and first half of 2025, revealing a total revenue of $39.8 million for the quarter, a 10% increase from $36.0 million in the same period last year. For the six months ended June 30, 2025, total revenue reached $76.9 million, up from $74.8 million in the prior year. The company attributed this growth primarily to a 57% increase in service and other revenue, which rose to $6.7 million, alongside a 4% increase in product revenue, which totaled $33.1 million. However, the overall gross profit for the first half of 2025 decreased to $13.3 million from $17.2 million in the previous year, reflecting higher costs associated with restructuring efforts.

The company experienced significant changes in its operating expenses, which surged to $487.1 million for the first half of 2025, compared to $274.4 million in the same period of 2024. This increase was largely driven by $362.9 million in amortization of acquired intangible assets, primarily due to accelerated amortization related to the Omniome acquisition. Additionally, PacBio recorded a $15.0 million impairment charge during the first half of 2025, a notable decrease from the $93.2 million impairment charge recorded in the same period last year. The net loss for the first half of 2025 was $468.0 million, compared to a loss of $251.5 million in the prior year.

Operationally, PacBio's restructuring initiatives have led to a reduction in research and development expenses, which fell by 37% to $51.6 million for the first half of 2025. The company has also streamlined its workforce and reduced costs in sales, general, and administrative expenses, which decreased by 15% to $76.3 million. As of June 30, 2025, PacBio reported cash, cash equivalents, and investments totaling $314.7 million, down from $389.9 million at the end of 2024, indicating a 19% decrease in liquidity.

In terms of strategic developments, PacBio is focusing on the full-scale release of its Vega benchtop platform and accelerating sample processing on its Revio platform. The company aims to enhance its product offerings and expand its market reach, particularly in clinical sequencing, which it identifies as a significant growth opportunity. The company is also pursuing collaborations to broaden the applications of its technology. However, the sales cycle for its Revio instruments has been elongated due to uncertainties in funding for new capital equipment, particularly among academic institutions.

Looking ahead, PacBio anticipates continued growth in consumables revenue as adoption of its Revio and Vega platforms expands. The company remains cautious about macroeconomic factors that could impact its operations, including inflation, geopolitical tensions, and funding uncertainties. Despite the challenges, PacBio is committed to executing its strategic initiatives and believes that its existing cash reserves will be sufficient to support its operations for the next 12 months.