Pacific Biosciences of California

Pacific Biosciences of California, or PacBio, lowered its 2026 revenue guidance to $155-$165 million from $165-$175 million, citing weaker instrument demand and a slower-than-expected transition to its SPRQ-Nx chemistry, even as clinical adoption grows. The company now expects cash-flow breakeven in 2028 instead of by the end of 2027, and reduced its 2026 non-GAAP gross-margin outlook to 35%-37%. In the second quarter, revenues fell 2% to $39 million, missing the Zacks Consensus Estimate by 4.2%, with instrument revenues down 9.9% to $12.8 million. However, clinical consumable shipments rose 67%, and EMEA revenues increased 52% to $14.4 million, while PacBio shipped 20 Revio systems, up from 15 a year earlier. The company expects restructuring to cut 2027 compensation-related expenses by about $15-$20 million, with additional annual savings as high-throughput platform development spending declines.

Pacific Biosciences of California has lowered its full-year 2026 revenue guidance to between $155 million and $165 million and now expects to reach cash flow breakeven in 2028, a year later than previously anticipated. The company reported second-quarter revenue of $39 million, roughly flat compared with $39.8 million a year earlier, while non-GAAP gross margin came in at 36 percent. PacBio also announced that Chief Operating Officer Mark Van Oene has taken over as President and Chief Executive Officer, replacing Christian Henry effective immediately, and is implementing a leaner organizational structure focused on clinical workflows and the rollout of SPRQ-Nx chemistry. Non-GAAP operating expenses for the year are projected at $215 million to $220 million, and full-year consumables pull-through per Revio system is now expected to be $200,000 to $225,000. The company cited SPRQ-Nx transition headwinds and compute cost inflation as factors weighing on near-term performance.