📊 PACB Key Takeaways
Is Pacific Biosciences Of California, Inc.. (PACB) a Good Investment?
PACB exhibits severe financial distress with negative free cash flow of -$47.7M against just $37.2M revenue, indicating the business cannot fund itself operationally. The balance sheet is critically overleveraged with $896.8M long-term debt against minimal $2.4M stockholders' equity and only $56.3M cash, creating acute solvency risk. Deteriorating profitability (-76.3% net income decline YoY) combined with anemic 3.9% revenue growth suggests the cost structure cannot be justified without significant operational turnaround.
Fundamentals show severe, persistent unprofitability with deeply negative operating and net margins and a -$114M free cash outflow, while leverage is extreme and equity nearly exhausted, elevating solvency risk. Modest 3.9% revenue growth and solid current/quick ratios do not offset weak gross margins and negative interest coverage, implying a high likelihood of dilution or restructuring absent a rapid operational turnaround.
Pacific Biosciences Of California, Inc.. Key Strengths (PACB)
- Gross margin of 34.5% indicates core product delivers acceptable unit economics before operating overhead
- Current ratio of 5.65x provides near-term liquidity buffer with $56.3M cash on hand
- Positive revenue growth of 3.9% YoY demonstrates baseline market demand persistence
- Strong current and quick ratios
- Positive YoY revenue growth (3.9%)
- Low capex requirements (asset-light)
PACB Stock Risks: Pacific Biosciences Of California, Inc.. Investment Risks
- Negative free cash flow of -$47.7M annually will deplete $56.3M cash reserves within 14 months at current burn rate
- Long-term debt of $896.8M exceeds total assets of $782.4M, creating extreme solvency risk and potential covenant violations
- Negative interest coverage of -2.3x indicates operating income cannot service debt, risking forced restructuring
- Operating margin of -22.5% and deteriorating net margin reflect structural unprofitability requiring fundamental cost restructuring
- Stockholders' equity of only $2.4M provides virtually no financial cushion for unexpected challenges
- Sustained heavy losses and negative FCF
- Very high leverage with near-zero equity
- Weak gross margin and negative interest coverage
Key Metrics to Watch
- Operating cash flow trajectory - must achieve positive FCF within 12-18 months or face liquidity crisis
- Revenue growth acceleration - 3.9% insufficient; need 15%+ to support cost base
- Quarterly cash burn rate and months of runway remaining
- Operating margin improvement - path to breakeven required
- Debt refinancing capacity and covenant compliance status
- Free cash flow (quarterly)
- Gross margin
Pacific Biosciences Of California, Inc.. (PACB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.65x current ratio provides a solid financial cushion.
PACB Profit Margin, ROE & Profitability Analysis
PACB vs Industrial Sector: How Pacific Biosciences Of California, Inc.. Compares
How Pacific Biosciences Of California, Inc.. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Pacific Biosciences Of California, Inc.. Stock Overvalued? PACB Valuation Analysis 2026
Based on fundamental analysis, Pacific Biosciences Of California, Inc.. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Pacific Biosciences Of California, Inc.. Balance Sheet: PACB Debt, Cash & Liquidity
PACB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Pacific Biosciences Of California, Inc..'s revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.21 indicates the company is currently unprofitable.
PACB Revenue Growth, EPS Growth & YoY Performance
PACB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $37.2M | -$8.3M | $-0.03 |
| Q3 2025 | $38.4M | -$38.0M | $-0.13 |
| Q2 2025 | $36.0M | -$41.9M | $-0.14 |
| Q1 2025 | $37.2M | -$78.2M | $-0.29 |
| Q3 2024 | $40.0M | -$60.7M | $-0.22 |
| Q2 2024 | $36.0M | -$69.8M | $-0.28 |
| Q1 2024 | $38.8M | -$78.2M | $-0.29 |
| Q3 2023 | $32.3M | -$66.9M | $-0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pacific Biosciences Of California, Inc.. Dividends, Buybacks & Capital Allocation
PACB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pacific Biosciences Of California, Inc.. (CIK: 0001299130)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PACB
What is the AI rating for PACB?
Pacific Biosciences Of California, Inc.. (PACB) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PACB's key strengths?
Claude: Gross margin of 34.5% indicates core product delivers acceptable unit economics before operating overhead. Current ratio of 5.65x provides near-term liquidity buffer with $56.3M cash on hand. ChatGPT: Strong current and quick ratios. Positive YoY revenue growth (3.9%).
What are the risks of investing in PACB?
Claude: Negative free cash flow of -$47.7M annually will deplete $56.3M cash reserves within 14 months at current burn rate. Long-term debt of $896.8M exceeds total assets of $782.4M, creating extreme solvency risk and potential covenant violations. ChatGPT: Sustained heavy losses and negative FCF. Very high leverage with near-zero equity.
What is PACB's revenue and growth?
Pacific Biosciences Of California, Inc.. reported revenue of $37.2M.
Does PACB pay dividends?
Pacific Biosciences Of California, Inc.. does not currently pay dividends.
Where can I find PACB SEC filings?
Official SEC filings for Pacific Biosciences Of California, Inc.. (CIK: 0001299130) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PACB's EPS?
Pacific Biosciences Of California, Inc.. has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PACB's fundamental grade?
Based on our AI fundamental analysis in June 2026, Pacific Biosciences Of California, Inc.. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PACB stock overvalued or undervalued?
Valuation metrics for PACB: ROE of -349.7% (sector avg: 15%), net margin of -22.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is PACB's AI grade for 2026?
Our dual AI analysis gives Pacific Biosciences Of California, Inc.. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PACB's free cash flow?
Pacific Biosciences Of California, Inc..'s operating cash flow is $-44.7M, with capital expenditures of $3.0M. FCF margin is -128.4%.
How does PACB compare to other Industrial stocks?
Vs Industrial sector averages: Net margin -22.3% (avg: 10%), ROE -349.7% (avg: 15%), current ratio 5.65 (avg: 1.8).
Is Pacific Biosciences Of California, Inc.. carrying too much debt?
PACB has a debt-to-equity ratio of 379.05x, which is above the Industrial sector average of 0.7x. However, the current ratio of 5.65 suggests adequate short-term liquidity.