Q2 2026 Pacific Biosciences of California Inc Earnings Call Transcript
Key Points
- Full global commercial rollout of SparkNext chemistry, with over a third of the install base opting into the new software in June, indicating strong customer enthusiasm and adoption.
- Consumables revenue grew 6% year-over-year to $20.1 million, driven by a 67% increase in shipments to clinical customers, highlighting growing clinical adoption.
- Revio system placements increased to 20 units in Q2, including multi-system orders from new and existing customers, signaling entry into population-scale genomics projects.
- Vega system ASP returned to normalized levels, and 81% of Q2 shipments went to new customers, including US Public Health Labs, demonstrating continued market traction despite funding headwinds.
- Publication of clinical long-read genome sequencing data in the New England Journal of Medicine and Nature Genetics strengthens the evidence base for HiFi technology in rare disease diagnostics, potentially accelerating clinical adoption.
- Total revenue of $39 million was roughly flat year-over-year, and the company lowered its full-year 2026 revenue guidance to $155-$165 million due to SparkNext transition headwinds and funding constraints.
- Non-GAAP gross margin declined to 36% from 38% year-over-year, impacted by compute cost inflation, lower manufacturing volumes, and $1.1 million in Vega manufacturing transition costs.
- Cash flow breakeven is now expected in 2028, delayed from the prior expectation of end of 2027, due to elevated compute costs and a more gradual gross margin improvement.
- Americas revenue declined due to academic and government funding constraints, and Asia-Pacific revenue dropped 45% year-over-year, reflecting the conclusion of a population sequencing program and lower consumables demand.
- The company initiated a restructuring that will reduce workforce by approximately 40 employees, reflecting ongoing cost pressures and the need to align expenses with strategic priorities.
Good day. And welcome to PacBio's second-quarter of 2026 earnings call. (Operator Instructions)
Also, please be aware that today's call is being recorded.
I'd now like to turn the call over to Caylene Parrish from Gilmartin Group. Please go ahead.
Good afternoon, and welcome to PacBio's second-quarter 2026 earnings conference call. With me today are Mark Van Oene, President and Chief Executive Officer; Jim Gibson, Chief Financial Officer; and Christian Henry, PacBio Board Member and Advisor.
Earlier today, we issued a press release outlining the financial results we'll be discussing on today's call, a copy of which is available on the Investors section of our website at www.pacb.com or as furnished on Form 8-K, available on the Securities and Exchange Commission website at www.sec.gov. A copy of our earnings presentation is also available on the Investors
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