Slides
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PacBio Q3 2025 Earnings Presentation November 5, 2025 Third Quarter 2025 Earnings Call
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2 Statement regarding use of non‐GAAP financial measures PacBio reports non‐GAAP results for basic net income and loss per share, net income, net loss, gross margins, gross profit 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. 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 presentation. PacBio excludes recurring charges from its non-GAAP financial statements, including amortization of intangible assets 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 and benefits from income taxes. 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 presentation. PacBio is unable to reconcile future looking non-GAAP guidance included in this presentation without unreasonable effort because certain items that impact this measure are out of PacBio's control and/or cannot be reasonably predicted at this time. Statement regarding preliminary financial results This presentation contains preliminary financial results which are unaudited and based on current expectations and may be adjusted as a result of, among other things, completion of quarterly review procedures. Forward-Looking Statements This presentation 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 costs and initiatives as well as the expected financial impact and timing of these plans and initiatives; PacBio’s financial guidance and expectations for future periods; new and continued reception of PacBio’s products and consumables and their expansion into new or existing markets; developments affecting our industry and the markets in which we compete, including the impact of new products and technologies and tariffs; anticipated future customer use of our products; 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; 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; 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 geopolitical instability. 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. Safe harbor and non-GAAP disclosures
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3 Business & Commercial Updates Christian Henry, President & CEO
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4 Sequencing Gigabase Output Q3 2025 Summary (3%) Q/Q (4%) Y/Y $38.4M Total Revenue $21.3M Consumable Revenue 12% Q/Q 15% Y/Y • Record quarter • ~$236,000 annualized Revio pull-through, near high-end of our guidance range $11.3M Instrument Revenue (20%) Q/Q (33%) Y/Y 13 • Vega shipments below forecast, particularly in Europe 32 ~60% to new customers Vega Systems Revio Systems ~75% to new customers Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 +~65% y/y 7 35 73 105 173 201 225 247 270 282 297 310 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Vega Revio Cumulative Revio and Vega Shipments
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5 Sequel® II CNDx received Class III Medical Device Registration approval through long-standing partnership with Berry Genomics Approval enables clinicians in China to harness PacBio HiFi sequencing for challenging conditions Berry’s initial launch Sequel II CNDx system, which will run their recently approved thalassemia test Berry’s plans for expansion More clinical assays like congenital adrenal hyperplasia, fragile X syndrome, spinal muscular atrophy, Duchenne muscular dystrophy, and other complex single-gene disorders and panels First known regulatory approval of a clinical long-read sequencer anywhere in the world
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6 Additional key clinical highlights 1st major study published demonstrating clinical power of HiFi genomes In study published by HiFi Solves EMEA Consortium, PacBio HiFi sequencing, combined with Paraphase, a dedicated haplotype-based variant caller, uncovered all known clinically relevant variants present in the study population. Expanding clinical footprint Growing role in clinical research genomics with new assay for genetic disease diagnosis launched at Children’s Mercy Hospital. PacBio launched enhanced Pure Target portfolio, which can be used for high-throughput carrier screening.
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7 HiFi sequencing selected for new large-scale studies Korean Pangenome Reference Project led by KCDC Targeting to sequence more than 1,000 Korean genomes. Will be used for global reference standards, advancing disease research and precision medicine National Institute on Aging's Long Life Family Study Up to 7,800 whole genomes and epigenomes to be sequenced on our Revio system, powering one of the largest studies of healthy aging to date
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8 Unveiled new SPRQ-Nx chemistry at ASHG with launch planned for 2026 SPRQ-Nx Designed to deliver the most complete view of the genome for less than $300 per genome at scale Beta testing program for Revio customers expected to begin in November 2025 and move into early access in Q1 2026 Multi-use SMRT cells Intended to reduce the cost of sequencing for customers and improves PacBio’s gross margins Expanded multiomic capabilities Expected to improve methylation calling performance with the added ability to call methyl-hydroxy C Increases throughput Can further improve economics
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9 Broadening HiFi sequencing applications with key collaborations New addition to PacBio Compatible program enables scientists to connect genetic variation with gene regulation, advancing research in rare disease and cancer PacBio will distribute seqWell’s LongPlex Kit, a scalable, easy-to- use sample preparation solution designed for HiFi sequencing
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10 Financial Results Jim Gibson, Chief Financial Officer
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11 Q3 2025 Revenue Commentary Americas $9.6M (11% Y/Y) (24% Q/Q) $10.7M 18% Y/Y 14% Q/Q $18.1M (10% Y/Y) 2% Q/Q EMEA Asia Pacific $38.4M$38.4M Consumables $21.3M 15% Y/Y 12% Q/Q Service + Other $5.8M 25% Y/Y (13% Q/Q) Instruments $11.3M (33% Y/Y) (20% Q/Q) Product & Service Regional
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121See Appendix for statement regarding use of non-GAAP financial measures Q3 2025 non-GAAP1 financial highlights Non-GAAP Measures Q3 2025 Q3 2024 Non-GAAP Gross Profit $16.2M $13.0M Non-GAAP Gross Margin 42% 33% Non-GAAP Operating Expenses $53.9M $62.4M Non-GAAP Net Loss ($36.8M) ($46.0M) Non-GAAP Basic Net Loss Per Share ($0.12) ($0.17) Sept 30, 2025 June 30, 2025 Dec 31, 2024 Cash & Investments $298.7M $314.7M $389.9M
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13 2025 Guidance Non-GAAP Gross Margin > 40% Cash & Investments > $270M Cash Burn ~ $115M Q4 2025 Revenue Guidance +10% Q/Q Growth Driven by higher Revio placements and continuation of consumables strength FY 2025 Revenue Guidance $155 - $160M Narrowing revenue guidance range
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14 Closing remarks Christian Henry, President and CEO
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15 We believe PacBio is positioned to deliver long-term value to all stakeholders HiFi technology is fundamentally different from anything else in the market SPRQ-Nx with multi-use SMRT cells is designed to dramatically improve the economics for long-read sequencing, enabling our customers to take full advantage of this technology Long reads up to 25 kb in length High accuracy Comprehensive coverage Direct single-molecule sequencing Methylation with no special library prep Investing efficiently by focusing on our strategic priorities, meaningfully reducing our burn and are tracking toward our goal of turning CF+ as we exit 2027 (87) (38) (54) (35) (70) (52) (39) (27) (42) (28) Q1 Q2 Q3 Q4 2023 2024 2025 1Net change in cash/investments excludes: 1Q23: $189.2M net financing proceeds; 2Q23: $7.4M debt issuance costs in connection with refinancing convertible notes; 3Q23: $7.7M in cash related to Apton acquisition; 3Q23/4Q23: $101M cash paid to former Omniome shareholders in connection with milestone achievement; 4Q24: $54M debt exchange; 1Q25: $5.0M license pmt; Includes: all severance, WARN and restructuring pmts; Q4 2025 directional representation based on guidance. Change in quarterly cash/investment balance in $M – adjusted1 1 2 3 (16)
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16 Enabling the promise of genomics to better human health We create the world’s most advanced sequencing technologies
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17 Appendix
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Pacific Biosciences of California, Inc. Unaudited Condensed Consolidated Statements of Operations Three Months Ended (in thousands, except per share amounts) September 30, 2025 June 30, 2025 September 30, 2024 Revenue: Product revenue $ 32,597 $ 33,083 $ 35,296 Service and other revenue 5,844 6,683 4,671 Total revenue 38,441 39,766 39,967 Cost of Revenue: Cost of product revenue (1) 19,204 20,022 23,278 Cost of service and other revenue 3,078 4,853 3,484 Amortization of acquired intangible assets 183 183 3,201 Loss on purchase commitment (1) 75 24 — Total cost of revenue 22,540 25,082 29,963 Gross profit 15,901 14,684 10,004 Operating Expense: Research and development 22,846 22,529 25,516 Sales, general and administrative (1) 31,099 36,175 43,746 Amortization of acquired intangible assets 833 833 3,649 Change in fair value of contingent consideration (2) — — 1,170 Total operating expense 54,778 59,537 74,081 Operating loss (38,877) (44,853) (64,077) Interest expense (1,739) (1,738) (3,538) Other income, net 2,999 4,696 6,890 Loss before income taxes (37,617) (41,895) (60,725) Income tax provision 383 35 — Net loss $ (38,000) $ (41,930) $ (60,725) Net loss per share: Basic $ (0.13) $ (0.14) $ (0.22) Diluted $ (0.13) $ (0.14) $ (0.22) Weighted average shares outstanding used in calculating net loss per share: Basic 300,844 300,162 272,915 Diluted 300,844 300,162 272,915 (1) Balances include restructuring costs. Refer to the Reconciliation of Non -GAAP Financial Measures table below for additional information on such costs and related amounts. (2) Change in fair value of contingent consideration for the three months ended September 30, 2024 was due to fair value adjustme nts of a milestone payment payable upon the achievement of a milestone event.
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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, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenue: Product revenue $ 32,597 $ 35,296 $ 96,793 $ 102,051 Service and other revenue 5,844 4,671 18,567 12,739 Total revenue 38,441 39,967 115,360 114,790 Cost of Revenue: Cost of product revenue (1) 19,204 23,278 65,559 68,808 Cost of service and other revenue 3,078 3,484 11,709 10,588 Amortization of acquired intangible assets 183 3,201 4,711 7,172 Loss on purchase commitment (1) 75 — 4,167 998 Total cost of revenue 22,540 29,963 86,146 87,566 Gross profit 15,901 10,004 29,214 27,224 Operating Expense: Research and development (1) 22,846 25,516 74,428 107,456 Sales, general and administrative (1) 31,099 43,746 107,442 133,376 Impairment charges (2) — — 15,000 93,200 Amortization of acquired intangible assets (3) 833 3,649 363,708 13,377 Change in fair value of contingent consideration (4) — 1,170 (18,700) 1,100 Total operating expense 54,778 74,081 541,878 348,509 Operating loss (38,877) (64,077) (512,664) (321,285) Interest expense (1,739) (3,538) (5,214) (10,655) Other income, net 2,999 6,890 11,989 19,718 Loss before income taxes (37,617) (60,725) (505,889) (312,222) Income tax provision 383 — 116 — Net loss $ (38,000) $ (60,725) $ (506,005) $ (312,222) Net loss per share: Basic $ (0.13) $ (0.22) $ (1.69) $ (1.15) Diluted $ (0.13) $ (0.22) $ (1.69) $ (1.15) Weighted average shares outstanding used in calculating net loss per share: Basic 300,844 272,915 299,303 271,631 Diluted 300,844 272,915 299,303 271,631 (1) Balances include restructuring costs. Refer to the Reconciliation of Non -GAAP Financial Measures table below for additional information on such costs and related amounts. (2) In-process research and development ("IPR&D") impairment charge during the nine months ended September 30, 2025 was driven prima rily by macroeconomic factors and restructuring initiatives, including the focus on long -read innovation, resulting in changes to the timing and amounts of cash flows. Goodwill impairment charge during the nine months ended September 30, 2024 was related to a sustained decrease in the Company's share price, among other factors. (3) 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.
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Pacific Biosciences of California, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands) September 30, 2025 December 31, 2024 Assets Cash and investments $ 298,654 $ 389,931 Accounts receivable, net 30,616 27,524 Inventory, net 53,153 58,755 Prepaid expenses and other current assets 11,513 18,781 Property and equipment, net 22,127 30,505 Operating lease right-of-use assets, net 42,583 16,091 Restricted cash 1,832 2,222 Intangible assets, net 16,143 389,572 Goodwill 317,761 317,761 Other long-term assets 8,776 9,305 Total Assets $ 803,158 $ 1,260,447 Liabilities and Stockholders' Equity Accounts payable $ 16,362 $ 16,590 Accrued expenses 29,172 22,595 Deferred revenue 20,449 19,764 Operating lease liabilities 54,921 24,940 Contingent consideration liability — 18,700 Convertible senior notes, net 645,159 647,494 Other liabilities 1,005 3,770 Stockholders' equity 36,090 506,594 Total Liabilities and Stockholders' Equity $ 803,158 $ 1,260,447
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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, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 GAAP net loss $ (38,000) $ (41,930) $ (60,725) $ (506,005) $ (312,222) Change in fair value of contingent consideration (1) — — 1,170 (18,700) 1,100 Impairment charges (2) — — — — 93,200 Amortization of acquired intangible assets 1,016 1,016 6,850 9,160 20,549 Income tax benefit (3) — — — (546) — Restructuring (4) 137 963 6,701 394,888 24,729 Non-GAAP net loss $ (36,847) $ (39,951) $ (46,004) $ (121,203) $ (172,644) GAAP basic net loss per share $ (0.13) $ (0.14) $ (0.22) $ (1.69) $ (1.15) Change in fair value of contingent consideration (1) — — — (0.06) — Impairment charges (2) — — — — 0.34 Amortization of acquired intangible assets — — 0.03 0.03 0.08 Restructuring (4) — — 0.02 1.32 0.09 Other adjustments and rounding differences 0.01 0.01 — — — Non-GAAP basic net loss per share $ (0.12) $ (0.13) $ (0.17) $ (0.40) $ (0.64) GAAP gross profit $ 15,901 $ 14,684 $ 10,004 $ 29,214 $ 27,224 Amortization of acquired intangible assets 183 183 3,201 4,711 7,172 Restructuring (4) 71 348 (207) 12,446 4,443 Non-GAAP gross profit $ 16,155 $ 15,215 $ 12,998 $ 46,371 $ 38,839 GAAP gross profit % 41 % 37 % 25 % 25 % 24 % Non-GAAP gross profit % 42 % 38 % 33 % 40 % 34 % GAAP total operating expense $ 54,778 $ 59,537 $ 74,081 $ 541,878 $ 348,509 Change in fair value of contingent consideration (1) — — (1,170) 18,700 (1,100) Impairment charges (2) — — — — (93,200) Amortization of acquired intangible assets (833) (833) (3,649) (4,449) (13,377) Restructuring (4) (66) (615) (6,908) (382,442) (20,286) Non-GAAP total operating expense $ 53,879 $ 58,089 $ 62,354 $ 173,687 $ 220,546 (1) Change in fair value of contingent consideration during the nine months ended September 30, 2025 and the three and nine month s ended September 30, 2024 was due to fair value adjustments of milestone payments payable upon the achievement of the respective m ilestone event. (2) Goodwill impairment charge during the nine months ended September 30, 2024 was related to a sustained decrease in the Company 's share price, among other factors. (3) A deferred income tax benefit during the nine months ended September 30, 2025 is primarily related to the change in the defer red tax liability balance resulting from the accelerated amortization of acquired intangible assets and impairment of IPR&D. (4) Restructuring costs related to the 2025 plan during the three months ended June 30, 2025 and September 30, 2025 and the nine months ended September 30, 2025 consist primarily of costs included in cost of revenue related to excess inventory and purchase com mitment losses, as well as costs included in operating expenses related to employee separation, accelerated depreciation, IPR&D impairment, and accelera ted amortization of acquired intangibles. Restructuring costs related to the 2024 plan during the three and nine months ended September 30, 2024 consist primarily of e mployee separation costs, accelerated amortization and depreciation for right -of-use assets, leasehold improvements, and furniture and fixtures relating to the abandonment of the San Diego office, including charges for excess inventory due to a decrease in internal demand relating to the expense reduction initiatives.
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22 www.pacb.com Research use only. Not for use in diagnostic procedures. © 2024 Pacific Biosciences of California, Inc. (“PacBio”). All rights reserved. Information in this document is subject to change without notice. PacBio assumes no responsibility for any errors or omissions in this document. Certain notices, terms, conditions and/or use restrictions may pertain to your use of PacBio products and/or third-party products. Refer to the applicable PacBio terms and conditions of sale and to the applicable license terms at pacb.com/license. Pacific Biosciences, the PacBio logo, PacBio, Circulomics, Omniome, SMRT, SMRTbell, Iso-Seq, Sequel, Nanobind, SBB, Revio, Onso, Apton, and Kinnex are trademarks of PacBio.