PacBio disclosed its third‑quarter 2025 results on November 5, 2025, reporting a non‑GAAP earnings per share of $‑0.12, a $0.04 beat over the consensus estimate of $‑0.16. The beat was driven by disciplined cost management and a favorable product mix that shifted revenue toward higher‑margin consumables, offsetting a decline in instrument sales.
Total revenue for the quarter was $38.4 million, falling $1.44 million—or 3.6%—short of the $39.84 million consensus estimate. The shortfall stemmed from lower Vega shipments in Europe and reduced average selling prices for instruments, while consumable revenue reached a record $21.3 million, up from $19.5 million in Q3 2024. The mix shift contributed to a non‑GAAP gross margin of 42%, the highest since 2022 and an 9‑percentage‑point lift over the prior year’s 33%.
Management highlighted that the Sequel II CNDx system’s Class III medical‑device registration in China marks the first regulatory approval of a clinical‑grade long‑read sequencer worldwide, positioning PacBio for expanded market penetration. The company also announced the launch of SPRQ‑Nx chemistry, aimed at reducing the cost of a human genome to under $300 at scale, with more than 100 customers expressing interest in beta testing.
Guidance for the remainder of 2025 was tightened: full‑year revenue is now projected at $155 million to $160 million, down from the previous $165 million to $170 million range, and Q4 revenue is expected to grow roughly 10% sequentially. The narrowing reflects management’s caution about macro‑economic headwinds and continued pressure on instrument demand, but the sequential growth target signals confidence in consumable momentum and new product adoption.
Analysts noted that the EPS beat and margin expansion were key drivers of the positive aftermarket reaction, with the stock rising 5.5% in after‑hours trading. The market’s focus on earnings quality and recurring revenue growth outweighed the revenue miss, underscoring investor confidence in PacBio’s strategic shift toward consumables and high‑margin technology.
The company’s cash burn for Q3 was $16 million, and it projects total 2025 cash burn at $115 million—an improvement of more than $70 million over 2024—highlighting a sustained effort to reduce operating expenses while investing in product development.
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