Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 45

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 and tariffs.

Research and Development Expense

Research and development expense decreased by $2.7 million, or 10%, for the third quarter of 2025, compared to the same quarter of 2024. The decrease was primarily driven by decreases in personnel and related expenses, including share-based compensation. Research and development expense included share-based compensation expense of $3.1 million and $4.7 million during the third quarter of 2025 and 2024, respectively.

Sales, General, and Administrative Expense

Sales, general and administrative expense decreased by $12.6 million, or 29%, for the third quarter of 2025, compared to the same quarter of 2024. The decrease was primarily due to $6.9 million of restructuring charges recorded in the third quarter of 2024 and a decrease in share-based compensation expense. Sales, general, and administrative expense included share-based compensation expense of $7.0 million and $12.3 million during the third quarter of 2025 and 2024, respectively.

Amortization of Acquired Intangible Assets

Amortization of acquired intangible assets included in operating expenses for the third quarter of 2025 and 2024 consists of amortization expense attributable to acquired intangible assets that are not directly related to sales generating activities.

Change in Fair Value of Contingent Consideration

Change in fair value of contingent consideration during the third quarter of 2024 represents the remeasurement impact of contingent consideration due upon the achievement of a milestone.

Interest Expense

Interest expense for the third quarter of 2025 and 2024 was primarily comprised of interest on the convertible senior notes. The decrease was due to lower convertible notes balances as a result of the notes exchange transaction in November 2024. See Note 4. Convertible Senior Notes in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Other Income, Net

Other income, net for the third quarter of 2025 decreased compared to the same quarter of 2024 primarily driven by lower investment income due to lower cash and investment balances.

Q3 Fiscal 2025 Form 10-Q32

Comparison of the Nine Months Ended September 30, 2025 and 2024

Nine Months Ended September 30,(In thousands, except percentages)20252024$ Change% ChangeRevenue:Product revenue $96,793 $102,051 $(5,258)(5%)Service and other revenue 18,567