PacBio Cuts Outlook as SPRQ-Nx Transition Slows, Targets 2028 Cash-Flow Positivity

Pacific Biosciences (NASDAQ: PACB) cut its outlook after noting slower progress in transitioning to SPRQ-Nx chemistry. The company reported second-quarter revenue of $39 million, including $20 million in consumables, $13 million in instruments and $6 million in services. CFO Jim Gibson said revenue rose sequentially, though services revenue dipped year over year following completion of a major population genetics study in Asia. PacBio said its clinical business grew 67% and that clinical consumables make up a mid-teens share of total consumables revenue. The company recently shifted to CEO Mark Van Oene and announced a targeted reduction in force, expecting to cut compensation and benefits by $15 million to $20 million. Management also expects reduced spending of $30 million to $40 million in 2027 as it clears major costs for a new high-throughput sequencing platform. Revenue guidance fell citing the slower SPRQ-Nx conversion.