Overview

• US sequencing technology firm's Q1 revenue was flat yr/yr at $37.2 mln

• Adjusted EPS and adjusted net loss for Q1 beat analyst expectations

• Company saw record consumable revenue but lower-than-expected instrument sales, especially Vega

Outlook

• PacBio expects full-year 2026 revenue between $165 mln and $175 mln

• Company plans broad commercial rollout of SPRQ-Nx chemistry to all Revio customers later this month

• PacBio sees increasing clinical adoption of HiFi technology supporting future consumable growth

Result Drivers

• CONSUMABLE REVENUE GROWTH - Record consumable revenue driven by increased clinical adoption of HiFi and higher utilization, especially in EMEA

• WEAK INSTRUMENT SALES - Instrument revenue, particularly Vega, was lower than expected

• GROSS MARGIN PRESSURE - Non-GAAP gross margin declined due to increased computing component costs, temporary Vega promotions, and inventory and warranty-related charges

Company press release: ID:nGNXc9bSn5

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Adjusted EPS	Beat	-$0.12	-$0.13 (6 Analysts)
Q1 EPS		-$0.03
Q1 Adjusted Net Income	Beat	-$35.90 mln	-$44.68 mln (5 Analysts)
Q1 Adjusted Gross Margin		37.00%
Q1 Adjusted Gross Profit		$13.80 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Pacific Biosciences of California Inc is $3.00, about 75.4% above its May 6 closing price of $1.71

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