Pacific Biosciences of California, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 1 lowered. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue slightly below prior year: Total revenue was $39.0 million, against $39.8 million a year earlier and $37.2 million in the first quarter. Six-month revenue was $76.2 million, against $76.9 million. Source
• Full-year revenue range lowered: Full-year 2026 revenue guidance is $155 million to $165 million, down from $165 million to $175 million in the first-quarter release. Source
• Revio placements up, Vega down: Revio placements were 20, against 15 a year earlier and 15 in the first quarter. Vega placements were 26, against 38 a year earlier and 27 in the first quarter. Source
• Gross margin lower than prior year: GAAP gross margin was 32%, against 37% a year earlier. Non-GAAP gross margin was 36%, against 38%, and 37% in the first quarter. Source
• Compute, Vega and pricing cited: Management attributed the non-GAAP margin decline to compute and memory costs, Vega manufacturing transition costs, and lower Revio selling prices on multi-system placements. Source
• SPRQ-Nx full rollout begins: Global commercial rollout of SPRQ-Nx started, with whole genome sequencing at $345 list per genome, enhanced methylation detection, and DeepConsensus co-developed with Google. Source
• Basecamp sequencing started: Sequencing and sample delivery began for Basecamp Research, a frontier AI lab for therapeutic design, described as the largest population-scale program to date. Source
• Cash and investments declined: Cash, cash equivalents and investments ended at $236.9 million, against $314.7 million a year earlier and $276.0 million at March 31, 2026. Source

“Total revenue of $39.0 million was driven by growing consumables and new Revio and Vega placements as the Company commenced its full rollout of SPRQ-Nx chemistry.”

Pacific Biosciences of California, Inc., press release

Guidance

What changed from last quarter

• Guidance lowered: Full-year 2026 revenue range moved from $165 million to $175 million to $155 million to $165 million. Source
• New: SPRQ-Nx moved from beta program to global commercial rollout, priced at $345 list per genome for whole genome sequencing. Source
• New: Restructuring actions were implemented in the quarter, aimed at marketing and R&D streamlining and the commercial organization. Source
• New: Sequencing and sample delivery began for Basecamp Research, after the first-quarter selection to power its Trillion Gene Atlas. Source

Results and full-year guidance

• Revenue slightly below prior year: Total revenue was $39.0 million, against $39.8 million a year earlier and $37.2 million in the first quarter. Six-month revenue was $76.2 million, against $76.9 million. Source
• Quarterly net loss higher: GAAP net loss was $44.7 million, against $41.9 million. Non-GAAP net loss was $41.9 million, against $40.0 million. GAAP loss per share was $0.14 in both periods; non-GAAP was $0.14, against $0.13. Source
• Six-month net loss narrower: Six-month GAAP net loss was $53.0 million, against $468.0 million a year earlier, a period that included restructuring and impairment charges. Source
• Full-year revenue range lowered: Full-year 2026 revenue guidance is $155 million to $165 million, down from $165 million to $175 million in the first-quarter release. Source

Systems placements and pull-through

• Revio placements up, Vega down: Revio placements were 20, against 15 a year earlier and 15 in the first quarter. Vega placements were 26, against 38 a year earlier and 27 in the first quarter. Source
• Revio pull-through per system lower: Annualized Revio pull-through per system was about $202,000, against about $219,000 a year earlier and about $229,000 in the first quarter. Source
• Population-scale customer ordered Revio systems: Instrument orders included single-system and multi-system sales, among them several Revio systems from a new population-scale customer. Source

“Implemented restructuring actions primarily to streamline marketing and R&D organizations, strengthen the go-to-market commercial organization, and drive greater cost discipline going forward.”

Pacific Biosciences of California, Inc., press release

Consumables, instruments and services

• Consumable revenue up year over year: Consumable revenue was $20.1 million, up from $18.9 million a year earlier and below $21.8 million in the first quarter. Source
• Instrument revenue lower year over year: Instrument revenue was $12.8 million, against $14.2 million a year earlier and $9.7 million in the first quarter. Source
• Service revenue slightly lower: Service and other revenue was $6.1 million, against $6.7 million a year earlier and $5.6 million in the first quarter. Source

Gross margin and pricing

• Gross margin lower than prior year: GAAP gross margin was 32%, against 37% a year earlier. Non-GAAP gross margin was 36%, against 38%, and 37% in the first quarter. Source
• Compute, Vega and pricing cited: Management attributed the non-GAAP margin decline to compute and memory costs, Vega manufacturing transition costs, and lower Revio selling prices on multi-system placements. Source
• Non-GAAP gross profit down: Non-GAAP gross profit was $13.9 million in the quarter, against $15.2 million a year earlier and $13.8 million in the first quarter. Source

“The publication demonstrates that HiFi long-read sequencing is a clinically effective first-tier diagnostic test that improves diagnostic yield while simplifying the laboratory workflow”

Pacific Biosciences of California, Inc., press release

Operating expenses and restructuring

• Operating expenses below prior year: Non-GAAP operating expenses were $56.1 million, against $58.1 million a year earlier and $49.9 million in the first quarter. GAAP operating expenses were $57.2 million, against $59.5 million. Source
• R&D up, sales and admin down: Research and development was $23.0 million, up from $22.5 million a year earlier. Sales, general and administrative expense was $33.4 million, down from $36.2 million. Source
• Share-based compensation lower: Non-cash share-based compensation in operating expenses was $8.6 million, against $11.0 million a year earlier. Source
• Restructuring to streamline organization: Restructuring actions were implemented mainly to streamline marketing and R&D, strengthen the commercial organization, and add cost discipline going forward. Source

Programs, customers and science

• SPRQ-Nx full rollout begins: Global commercial rollout of SPRQ-Nx started, with whole genome sequencing at $345 list per genome, enhanced methylation detection, and DeepConsensus co-developed with Google. Source
• Basecamp sequencing started: Sequencing and sample delivery began for Basecamp Research, a frontier AI lab for therapeutic design, described as the largest population-scale program to date. Source
• New England Journal publication: HiFi long-read sequencing was published in the New England Journal of Medicine as a first-tier rare-disease diagnostic test, reducing turnaround time and workflow steps. Source
• Nature Genetics and preprint publications: A Nature Genetics article presented long-read sequencing within near-perfect genome sequencing, and a Asia Pacific consortium preprint covered reproductive genetics. Source

Cash, balance sheet and settlement

• Cash and investments declined: Cash, cash equivalents and investments ended at $236.9 million, against $314.7 million a year earlier and $276.0 million at March 31, 2026. Source
• Stockholders' deficit and convertible notes: Convertible senior notes, net were $644.3 million at June 30, 2026. Stockholders' deficit was $33.2 million, compared with equity of $5.3 million at December 31, 2025. Source
• Inventory increased: Inventory, net rose to $61.1 million at June 30, 2026, from $49.3 million at December 31, 2025. Source
• Personal Genomics settlement charges: Litigation settlement charges and related legal fees with Personal Genomics of Taiwan were $15.4 million in the first quarter. Interest expense on the settlement liability was recorded in the second quarter. Source
• Short-read asset sale completed: The sale of short-read sequencing assets was completed in the first quarter, with net cash proceeds of about $48.1 million, as stated in the first-quarter release.

Coming up, as management said on 5 August 2026

• Form 10-Q to follow: Notes to the unaudited financial statements are to be read with the Form 10-Q when it is filed with the SEC. Source

Figures management reported

Risks management discussed

• Operational: Compute and memory costs and Vega manufacturing transition costs were named as drivers of lower non-GAAP gross margin. Source
• Financial: Lower average selling prices on Revio systems in strategic multi-system placements were cited as a factor in gross margin. Source

Earlier plans management reported on

• Met: The first-quarter release said a broad rollout to all Revio customers would follow later that month. The second-quarter release states the global rollout commenced. Source
• Not stated: The first-quarter release gave this range. The second-quarter release replaces it with a lower range and does not state a status for the earlier range. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.