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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 3, 2026
Pacific Biosciences of California, Inc.
(Exact name of registrant as specified in its charter)
| | | | | | | | |
| Delaware | 001-34899 | 16-1590339 |
(State or other jurisdiction
of incorporation) | (Commission
File Number) | (IRS Employer
Identification No.) |
1305 O’Brien Drive
Menlo Park, California 94025
(Address of principal executive offices) (Zip Code)
(650) 521-8000
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| | | | | |
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
| Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| Common Stock, par value $0.001 per share | | PACB | | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On November 4, 2026, Pacific Biosciences of California, Inc. (the “Company”) announced its financial results for its third fiscal quarter ended September 30, 2026. A copy of the press release containing the announcement is attached as Exhibit 99.1 hereto and is incorporated herein by reference.
The information furnished in this Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
Chief Financial Officer Transition
Effective November 3, 2026 (the “Effective Date”), Jim Gibson stepped down as the Chief Financial Officer, principal financial officer and principal accounting officer of the Company and transitioned to a non-executive advisory role[ as an advisor to the Chief Executive Officer]. Mr. Gibson is expected to remain employed by the Company in that advisory role to assist with the transition of his responsibilities from the Effective Date through March 31, 2027, or such earlier date on which his employment is terminated for cause (the “Transition Period”).
The Company expects to enter into a transition agreement and release with Mr. Gibson (the “Transition Agreement”), pursuant to which, during the Transition Period, Mr. Gibson will (i) continue to receive his current base salary, (ii) remain eligible to earn an annual cash bonus for 2026 in accordance with the terms of his offer letter, payable at the same time annual cash bonuses are paid to the Company’s executives and no later than March 15, 2027, (iii) remain eligible to participate in the Company’s employee benefit plans, and (iv) continue to vest in his outstanding equity awards in accordance with their terms. In addition, subject to Mr. Gibson’s execution and non-revocation of a separation agreement and release following the end of the Transition Period, his continued compliance with the Transition Agreement and his confidentiality obligations to the Company, and his good faith performance of any transition services requested by the Company, Mr. Gibson will be entitled to (a) a lump sum cash payment of $500,000, less applicable withholdings, and (b) payment of his COBRA premiums for up to 12 months following the end of the Transition Period (or, if earlier, until he obtains health insurance coverage through another employer). These severance payments and benefits will be in full satisfaction of any severance obligations under Mr. Gibson’s Change in Control and Severance Agreement with the Company, dated March 31, 2025. The foregoing description is based on the Company’s current expectations, and the terms of Mr. Gibson’s transition remain subject to the execution of the Transition Agreement. If the Transition Agreement is entered into, the Company expects to file a copy as an exhibit to its Annual Report on Form 10-K for the fiscal year ending December 31, 2026.
Appointment of Interim Chief Financial Officer
On November 3, 2026, the Board of Directors of the Company (the “Board”) appointed Mark Van Oene, age 54, to serve as the Company’s interim Chief Financial Officer and principal financial officer, effective as of the Effective Date, until a successor is appointed. Mr. Van Oene will continue to serve as the Company’s President and Chief Executive Officer. The Board intends to conduct a search for a permanent Chief Financial Officer.
Biographical information for Mr. Van Oene is set forth under the heading “Executive Officers” in the Company’s definitive proxy statement on Schedule 14A filed with the SEC on April 23, 2026 and in Item 5.02 of the Company’s Current Report on Form 8-K filed with the SEC on August 5, 2026, and is incorporated herein by reference. There are no arrangements or understandings between Mr. Van Oene and any other person pursuant to which he was appointed as interim Chief Financial Officer, there are no family relationships between Mr. Van Oene and any director or executive officer of the Company, and Mr. Van Oene has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
Mr. Van Oene’s compensation will not change in connection with his appointment as interim Chief Financial Officer, and the Company has not entered into or materially amended any plan, contract or arrangement with him, or made any grant or award to him, in connection with his appointment.
Appointment of Chief Accounting Officer
On November 3, 2026, the Board appointed Bill Meyer, age 64, as the Company’s Chief Accounting Officer and designated him as the Company’s principal accounting officer, effective as of the Effective Date. Mr. Meyer has served as the Company’s Corporate Controller since August 2026. Prior to joining the Company, Mr. Meyer served as Vice President, Finance at Visby Medical, Inc., a medical diagnostics company developing handheld PCR diagnostic tests, from September 2019 to March 2026. Mr. Meyer holds a B.S. in Business Administration from California State University, Sacramento, and is a Certified Public Accountant (inactive) in California. There are no arrangements or understandings between Mr. Meyer and any other person pursuant to which he was appointed as Chief Accounting Officer, there are no family relationships between Mr. Meyer and any director or executive officer of the Company, and Mr. Meyer has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K. Mr. Meyer’s compensation did not change in connection with his appointment, and the Company has not entered into or materially amended any plan, contract or arrangement with him, or made any grant or award to him, in connection with his appointment.
In connection with his appointment, the Company expects to enter into its standard form of indemnification agreement with Mr. Meyer, the form of which was filed as Exhibit 10.1 to the Company’s Registration Statement on Form S-1 (File No. 333-168858) filed with the SEC on August 16, 2010.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
| | | | | |
| (d) | Exhibits. |
| |
| 99.1 | Press Release dated November 4, 2026, titled “PacBio Announces Third Quarter 2026 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02). |
| |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | |
| Pacific Biosciences of California, Inc. |
| | |
| By: | /s/ Bill Meyer |
| | Bill Meyer |
| | Chief Accounting Officer |
Date: November 4, 2026 | | |
PacBio Announces Third Quarter 2026 Financial Results
MENLO PARK, Calif., November 4, 2026 (GLOBE NEWSWIRE) – PacBio (NASDAQ: PACB) today announced financial results for the quarter ended September 30, 2026.
Recent Business Highlights
•Delivered total revenue of $40.6 million, reflecting continued instrument and consumables demand
•SPRQ-Nx adoption built through the quarter, with over half of Revio consumables revenue tied to SPRQ-Nx and two-thirds of the Revio installed base opting to upgrade software for use of SPRQ-Nx by the end of the quarter
•Delivered 35 new Vega systems in the quarter, up 9% year-over-year, with more than 90% sold to new customers, and launched SPRQ-Nx for Vega in late August
•Partnered with GeneDx to add long-read whole genome sequencing capabilities to its genome testing portfolio. The move is expected to deepen PacBio’s role in rare disease and support PacBio's priority to grow clinical work
•Strengthened PacBio’s presence in APAC through Berry Genomics’ Birth Defects Project, a major genomics study in China. The project is expected to put HiFi genome sequencing at the center of large-scale research in the region
•Expanded HiFi’s reach into large-scale population research – the Department of Veterans Affairs awarded Sampled, a high-utilization Revio customer, a five-year contract to provide genomics analyses using long-read whole genome sequencing for the Million Veteran Program
•Initiated a multi-year strategic collaboration with Verily Health to combine HiFi long-read data with real-world clinical data at population scale. The datasets are expected to support discovery and AI model training on Verily’s Workbench platform, which serves more than 20,000 researchers, putting HiFi data in front of a large research community
•Announced collaboration with TychoBio, an AI drug discovery company, to generate full-length RNA datasets with HiFi and Kinnex sequencing. We expect the data will be used to train AI models to predict RNA therapy efficacy and off-target effects, extending PacBio’s rare disease role toward therapy development
•Jim Gibson has stepped down as Chief Financial Officer (CFO). Mark Van Oene has been appointed interim CFO and Bill Meyer has been appointed Chief Accounting Officer (CAO) as PacBio engages in a search for a new CFO
“PacBio is entering an exciting phase as the investments we’ve made in our technology begin to unlock new opportunities,” said Mark Van Oene, President and Chief Executive Officer. “SPRQ-Nx is changing the economics of HiFi sequencing, while growing clinical adoption and strategic collaborations in population genomics and AI are expanding the markets we can serve. We have a tremendous opportunity ahead of us, and my focus is clear: sharpen our execution, prioritize what matters most, and translate the strength of our technology into sustainable growth.”
Third quarter results:
| | | | | | | | | | | |
| Q3 2026 | | Q3 2025 |
Revenue (in millions) | $40.6 | | $38.4 |
Consumable revenue (in millions) | $20.8 | | $21.3 |
Instrument revenue (in millions) | $13.2 | | $11.3 |
Service and other revenue (in millions) | $6.6 | | $5.8 |
RevioTM system placements | 15 | | 13 |
VegaTM system placements | 35 | | 32 |
| Annualized Revio pull-through per system | ~$204,000 | | ~$236,000 |
Ending cash, cash equivalents, and investments (in millions) | $199.4 | | $298.7 |
Gross profit and margin, operating expenses, net loss, and net loss per share are reported on a GAAP and non-GAAP basis. The non-GAAP measures are described below and reconciled to the corresponding GAAP measures at the end of this release.
GAAP gross profit for the third quarter of 2026 was $13.5 million compared to $15.9 million during the third quarter of 2025. Non-GAAP gross profit for the third quarter of 2026 was $14.6 million compared to $16.2 million for the third quarter of 2025. GAAP gross margin was 33% for the third quarter of 2026 compared to 41% for the third quarter of 2025. Non-GAAP gross margin was 36% for the third quarter of 2026 compared to 42% for the third quarter of 2025. The decline in non-GAAP gross margin was primarily driven by higher memory costs and Vega manufacturing transition costs.
GAAP operating expenses totaled $50.5 million for the third quarter of 2026 compared to $54.8 million for the third quarter of 2025. Non-GAAP operating expenses totaled $47.0 million for the third quarter of 2026 compared to $53.9 million for the third quarter of 2025. The decrease in GAAP and non-GAAP operating expenses primarily reflects lower personnel and related expenses, resulting from PacBio’s restructuring initiatives. GAAP and non-GAAP operating expenses for the third quarter of 2026 and the third quarter of 2025 included non-cash share-based compensation of $8.0 million and $10.1 million, respectively.
GAAP net loss for the third quarter of 2026 was $37.8 million compared to $38.0 million for the third quarter of 2025. Non-GAAP net loss for the third quarter of 2026 was $32.8 million compared to $36.8 million for the third quarter of 2025.
GAAP net loss per share for the third quarter of 2026 was $0.12 compared to $0.13 for the third quarter of 2025. Non-GAAP net loss per share for the third quarter of 2026 was $0.11 compared to $0.12 for the third quarter of 2025.
2026 Financial Outlook
PacBio now expects revenue for the full year 2026 to be in the range of $155 million to $160 million.
Quarterly Conference Call Information
Management will host a quarterly conference call today at 4:30 p.m. Eastern Time to review financial results for the third quarter ended September 30, 2026. Investors can access the call by dialing 1-888-349-0136 (or 1-412-317-0459 for international callers) and requesting to join the “PacBio Q3 Earnings Call". The call will be webcast live and available for replay at PacBio's website at https://investor.pacificbiosciences.com.
About PacBio
PacBio (NASDAQ: PACB) is a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. Our products and technologies, which consist of our HiFi long-read sequencing systems, address solutions across a broad set of research applications, including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. For more information, please visit www.pacb.com and follow @PacBio.
PacBio products are provided for Research Use Only. Not for use in diagnostic procedures.
Statement Regarding Use of Non‐GAAP Financial Measures
PacBio reports non‐GAAP results for basic net income (loss) per share, net income (loss), gross margins, gross profit (loss) and operating expenses in addition to, and not as a substitute for, or because it believes that such information is superior to, financial measures calculated in accordance with GAAP. PacBio believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of PacBio’s non-GAAP financial measures as tools for comparison. For future periods PacBio is unable to reconcile non-GAAP gross margin and non-GAAP operating expenses without unreasonable effort because certain items that impact these measures are out of PacBio’s control or cannot be reasonably predicted at this time, and their probable significance cannot be determined.
PacBio's financial measures under GAAP include substantial charges that are listed in the itemized reconciliations between GAAP and non‐GAAP financial measures included in this press release. PacBio excludes recurring charges from its non-GAAP financial statements, including amortization of acquired intangible assets, amortization of a patent license, interest expense related to the liability incurred in connection with the PGI settlement, and changes in fair value of contingent consideration, and further excludes infrequent and limited charges including impairment charges, restructuring-related expenses for discrete restructuring events, settlement charges, disposition of short-read assets, benefits from income taxes and other adjustments and rounding differences.
Management has excluded the effects of these items in non‐GAAP measures to assist investors in analyzing and assessing past and future operating performance. In addition, management uses non-GAAP measures to compare PacBio’s performance relative to forecasts and strategic plans and to benchmark its performance externally against competitors.
PacBio encourages investors to carefully consider its results under GAAP, as well as its supplemental non‐GAAP information and the reconciliation between these presentations, to more fully understand its business. A reconciliation of PacBio’s non-GAAP financial measures to their most directly comparable financial measure stated in accordance with GAAP has been provided in the financial statement tables included in this press release.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements relating to PacBio’s initiatives as well as the expected financial impact and timing of these plans and initiatives, including PacBio's expectations regarding long-read sequencing and SPRQ-Nx; PacBio's expectations regarding its restructuring efforts; PacBio’s financial guidance and expectations for future periods; the expected benefits of PacBio’s collaborations and customer programs, including with TychoBio and Verily Health; new and continued reception of PacBio’s products and their expansion into new or existing markets; and the availability, uses, accuracy, coverage, advantages, quality or performance of, or benefits or expected benefits of using, PacBio products or technologies. Reported results and orders for any instrument system should not be considered an indication of future performance. You should not place undue reliance on forward-looking statements because they are subject to assumptions, risks, and uncertainties and could cause actual outcomes and results to differ materially from currently anticipated results, including, but not limited to, challenges inherent in developing, manufacturing, launching, marketing and selling new products, and achieving anticipated new sales; PacBio’s ability to realize the anticipated benefits of its collaborations; potential cancellation of existing instrument orders; assumptions, risks and uncertainties related to the ability to attract new customers and retain and grow sales from existing customers; risks related to PacBio's ability to successfully execute and realize the benefits of acquisitions; the impact of new, increased or enhanced tariffs and export restrictions; rapidly changing technologies and extensive competition in genomic sequencing; unanticipated increases in costs or expenses; high costs of computer memory components; interruptions or delays in the supply of components or materials for, or manufacturing of, PacBio products and products under development; potential product performance and quality issues and potential delays in development timelines; the possible loss of key employees, customers, or suppliers; customers and prospective customers curtailing or suspending activities using PacBio's products; third-party claims alleging infringement of patents and proprietary rights or seeking to invalidate PacBio's patents or proprietary rights; risks associated with international operations; and other risks associated with general macroeconomic conditions and global economic or political instability, including war and other international conflicts, such as the conflicts in the Middle East. Additional factors that could materially affect actual results can be found in PacBio's most recent filings with the Securities and Exchange Commission, including PacBio's most recent reports on Forms 8-K, 10-K, and 10-Q, and include those listed under the caption “Risk Factors.” These forward-looking statements are based on current expectations and speak only as of the date hereof; except as required by law, PacBio disclaims any obligation to revise or update these forward-looking statements to reflect events or circumstances in the future, even if new information becomes available.
The unaudited condensed consolidated financial statements that follow should be read in conjunction with the notes set forth in PacBio's Quarterly Report on Form 10-Q when filed with the Securities and Exchange Commission.
Contacts
Investors:
ir@pacb.com
Media:
pr@pacb.com
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statements of Operations
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| (in thousands, except per share amounts) | September 30,
2026 | | September 30,
2025 | | September 30,
2026 | | September 30,
2025 |
| Revenue: | | | | | | | |
| Product revenue | $ | 34,002 | | | $ | 32,597 | | | $ | 98,486 | | | $ | 96,793 | |
| Service and other revenue | 6,562 | | | 5,844 | | | 18,263 | | | 18,567 | |
| Total revenue | 40,564 | | | 38,441 | | | 116,749 | | | 115,360 | |
| Cost of Revenue: | | | | | | | |
Cost of product revenue (1) (4) (5) (8) | 21,795 | | | 19,204 | | | 62,711 | | | 65,559 | |
Cost of service and other revenue (1) | 5,116 | | | 3,078 | | | 14,540 | | | 11,709 | |
| Amortization of acquired intangible assets | 183 | | | 183 | | | 549 | | | 4,711 | |
Loss on purchase commitment (2) | — | | | 75 | | | — | | | 4,167 | |
| Total cost of revenue | 27,094 | | | 22,540 | | | 77,800 | | | 86,146 | |
| Gross profit | 13,470 | | | 15,901 | | | 38,949 | | | 29,214 | |
| Operating Expense: | | | | | | | |
Research and development (1) | 20,223 | | | 22,846 | | | 62,853 | | | 74,428 | |
Sales, general and administrative (1) (2) (4) | 29,416 | | | 31,099 | | | 93,962 | | | 107,442 | |
Impairment charges (3) | — | | | — | | | — | | | 15,000 | |
Settlement charges (4) | — | | | — | | | 15,400 | | | — | |
Gain on disposal of assets (5) | — | | | — | | | (45,796) | | | — | |
Amortization of acquired intangible assets (6) | 833 | | | 833 | | | 2,499 | | | 363,708 | |
Change in fair value of contingent consideration (7) | — | | | — | | | — | | | (18,700) | |
| Total operating expense | 50,472 | | | 54,778 | | | 128,918 | | | 541,878 | |
| Operating loss | (37,002) | | | (38,877) | | | (89,969) | | | (512,664) | |
| | | | | | | |
Interest expense (9) | (2,057) | | | (1,739) | | | (5,907) | | | (5,214) | |
| Other income, net | 1,482 | | | 2,999 | | | 5,525 | | | 11,989 | |
Loss before income taxes | (37,577) | | | (37,617) | | | (90,351) | | | (505,889) | |
| Income tax provision | 269 | | | 383 | | | 511 | | | 116 | |
| Net loss | $ | (37,846) | | | $ | (38,000) | | | $ | (90,862) | | | $ | (506,005) | |
| | | | | | | |
| Net loss per share: | | | | | | | |
| Basic | $ | (0.12) | | | $ | (0.13) | | | $ | (0.29) | | | $ | (1.69) | |
| Diluted | $ | (0.12) | | | $ | (0.13) | | | $ | (0.29) | | | $ | (1.69) | |
| | | | | | | |
| Weighted average shares outstanding used in calculating net loss per share: | | | | | | | |
| Basic | 311,247 | | | 300,844 | | | 309,260 | | | 299,303 | |
| Diluted | 311,247 | | | 300,844 | | | 309,260 | | | 299,303 | |
| | | | | | | |
| | | | | | | |
(1)Balances for the three and nine months ended September 30, 2026 include restructuring costs. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.
(2)Balances for the three and nine months ended September 30, 2025 include restructuring costs. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.
(3)In-process research and development ("IPR&D") impairment charge during the nine months ended September 30, 2025 was driven primarily by macroeconomic factors and restructuring initiatives, including the focus on long-read innovation, resulting in changes to the timing and amounts of cash flows.
(4)Balances for the nine months ended September 30, 2026 include litigation settlement charges and related legal fees in connection with the agreement entered into with Personal Genomics of Taiwan, Inc. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.
(5)Balances for the nine months ended September 30, 2026 include amounts related to the disposition of short-read assets, including the gain on the sale of certain assets related to our short-read DNA sequencing technology and related clustering, sequencing reagent, and detection technologies, and related non-recurring customer transition costs. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.
(6)Balance for the nine months ended September 30, 2025 includes accelerated amortization of acquired intangible assets related to restructuring initiatives. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.
(7)Change in fair value of contingent consideration during the nine months ended September 30, 2025 was due to fair value adjustments of milestone payments payable upon the achievement of a milestone event.
(8)Balances for the three and nine months ended September 30, 2026 include amortization of a patent license acquired in connection with the agreement entered into with Personal Genomics of Taiwan, Inc.
(9)Interest expense for the three and nine months ended September 30, 2026 includes amounts related to the liability incurred in connection with the agreement entered into with Personal Genomics of Taiwan, Inc.
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
| | | | | | | | | | | | | | |
| (in thousands) | | September 30,
2026 | | December 31,
2025 |
| Assets | | | | |
| Cash and investments | | $ | 199,418 | | | $ | 279,506 | |
| Accounts receivable, net | | 38,323 | | | 35,448 | |
| Inventory, net | | 60,278 | | | 49,285 | |
| Prepaid expenses and other current assets | | 9,802 | | | 10,793 | |
| Property and equipment, net | | 29,277 | | | 24,146 | |
| Operating lease right-of-use assets, net | | 39,409 | | | 41,695 | |
| Restricted cash | | 1,662 | | | 1,552 | |
| Intangible assets, net | | 12,164 | | | 15,124 | |
| Goodwill | | 317,761 | | | 317,761 | |
| Other long-term assets | | 13,002 | | | 8,773 | |
| Total Assets | | $ | 721,096 | | | $ | 784,083 | |
| | | | |
| Liabilities and Stockholders' Equity (Deficit) | | | | |
| Accounts payable | | $ | 10,920 | | | $ | 20,770 | |
| Accrued expenses | | 33,805 | | | 33,646 | |
| Deferred revenue | | 21,573 | | | 19,865 | |
| Operating lease liabilities | | 62,311 | | | 57,040 | |
| Convertible senior notes, net | | 643,058 | | | 645,382 | |
| Other liabilities | | 10,809 | | | 2,031 | |
| Stockholders' equity (deficit) | | (61,380) | | | 5,349 | |
| Total Liabilities and Stockholders' Equity (Deficit) | | $ | 721,096 | | | $ | 784,083 | |
Pacific Biosciences of California, Inc.
Reconciliation of Non-GAAP Financial Measures
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| (in thousands, except per share amounts) | | September 30,
2026 | | | | September 30,
2025 | | September 30,
2026 | | September 30,
2025 |
| GAAP net loss | | $ | (37,846) | | | | | $ | (38,000) | | | $ | (90,862) | | | $ | (506,005) | |
Change in fair value of contingent consideration (1) | | — | | | | | — | | | — | | | (18,700) | |
| | | | | | | | | | |
Settlement charges (2) | | — | | | | | — | | | 17,088 | | | — | |
| | | | | | | | | | |
Amortization of acquired intangible assets | | 1,016 | | | | | 1,016 | | | 3,048 | | | 9,160 | |
Amortization of patent license (3) | | 516 | | | | | — | | | 1,032 | | | — | |
Disposition of short-read assets (4) | | 204 | | | | | — | | | (44,675) | | | — | |
| | | | | | | | | | |
Interest expense (5) | | 316 | | | | | — | | | 685 | | | — | |
Income tax benefit (6) | | — | | | | | — | | | — | | | (546) | |
Restructuring and related charges (7) | | 2,962 | | | | | 137 | | | 2,962 | | | 394,888 | |
| Non-GAAP net loss | | $ | (32,832) | | | | | $ | (36,847) | | | $ | (110,722) | | | $ | (121,203) | |
| | | | | | | | | | |
| GAAP basic net loss per share | | $ | (0.12) | | | | | $ | (0.13) | | | $ | (0.29) | | | $ | (1.69) | |
Change in fair value of contingent consideration (1) | | — | | | | | — | | | — | | | (0.06) | |
| | | | | | | | | | |
Settlement charges (2) | | — | | | | | — | | | 0.06 | | | — | |
| | | | | | | | | | |
| Amortization of acquired intangible assets | | — | | | | | — | | | 0.01 | | | 0.03 | |
| | | | | | | | | | |
| | | | | | | | | | |
Disposition of short-read assets (4) | | — | | | | | — | | | (0.14) | | | — | |
| | | | | | | | | | |
| | | | | | | | | | |
Restructuring and related charges (7) | | 0.01 | | | | | — | | | 0.01 | | | 1.32 | |
| Other adjustments and rounding differences | | — | | | | | 0.01 | | | (0.01) | | | — | |
| Non-GAAP basic net loss per share | | $ | (0.11) | | | | | $ | (0.12) | | | $ | (0.36) | | | $ | (0.40) | |
| | | | | | | | | | |
| GAAP gross profit | | $ | 13,470 | | | | | $ | 15,901 | | | $ | 38,949 | | | $ | 29,214 | |
Settlement charges (2) | | — | | | | | — | | | 500 | | | — | |
Amortization of acquired intangible assets | | 183 | | | | | 183 | | | 549 | | | 4,711 | |
Amortization of patent license (3) | | 516 | | | | | — | | | 1,032 | | | — | |
Disposition of short-read assets (4) | | 204 | | | | | — | | | 1,121 | | | — | |
Restructuring and related charges(7) | | 275 | | | | | 71 | | | 275 | | | 12,446 | |
| Non-GAAP gross profit | | $ | 14,648 | | | | | $ | 16,155 | | | $ | 42,426 | | | $ | 46,371 | |
| | | | | | | | | | |
| GAAP gross profit % | | 33 | % | | | | 41 | % | | 33 | % | | 25 | % |
| | | | | | | | | | |
| Non-GAAP gross profit % | | 36 | % | | | | 42 | % | | 36 | % | | 40 | % |
| | | | | | | | | | |
| GAAP total operating expense | | $ | 50,472 | | | | | $ | 54,778 | | | $ | 128,918 | | | $ | 541,878 | |
Change in fair value of contingent consideration (1) | | — | | | | | — | | | — | | | 18,700 | |
Settlement charges (2) | | — | | | | | — | | | (16,588) | | | — | |
| | | | | | | | | | |
Amortization of acquired intangible assets | | (833) | | | | | (833) | | | (2,499) | | | (4,449) | |
Disposition of short-read assets (4) | | — | | | | | — | | | 45,796 | | | — | |
Restructuring and related charges(7) | | (2,687) | | | | | (66) | | | (2,687) | | | (382,442) | |
| Non-GAAP total operating expense | | $ | 46,952 | | | | | $ | 53,879 | | | $ | 152,940 | | | $ | 173,687 | |
(1)Change in fair value of contingent consideration during the nine months ended September 30, 2025 was due to fair value adjustments of milestone payments payable upon the achievement of a milestone event.
(2)Balances for the nine months ended September 30, 2026 include litigation settlement charges and related legal fees in connection with the agreement entered into with Personal Genomics of Taiwan, Inc.
(3)Balances for the three and nine months ended September 30, 2026 include amortization of a patent license acquired in connection with the agreement entered into with Personal Genomics of Taiwan, Inc.
(4)Balances for the three and nine months ended September 30, 2026 include amounts related to the disposition of short-read assets, including the gain on the sale of certain assets related to our short-read DNA sequencing technology and related clustering, sequencing reagent, and detection technologies, and related non-recurring customer transition costs.
(5)Interest expense for the three and nine months ended September 30, 2026 is related to the liability incurred in connection with the agreement entered into with Personal Genomics of Taiwan, Inc.
(6)A deferred income tax benefit during the nine months ended September 30, 2025 is primarily related to the change in the deferred tax liability balance resulting from the accelerated amortization of acquired intangible assets and IPR&D impairment.
(7)Restructuring and related charges during the three and nine months ended September 30, 2026 consist primarily of severance payments, employee benefits, outplacement services and related costs incurred in connection with the 2026 plan and other organizational changes. Restructuring-related costs incurred in connection with the 2025 plan during the three and nine months ended September 30, 2025 consist primarily of costs included in cost of revenue related to excess inventory and purchase commitment losses, as well as costs included in operating expenses related to employee separation, accelerated depreciation, IPR&D impairment, and accelerated amortization of acquired intangibles.
