Company: PACB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001299130-25-000156
Chunk: 187

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 187
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 ended June 30, 2025, which included $3.8 million relating to loss on purchase commitments which is based on an estimate of future excess inventory related to supply agreements for which we do not expect to have related sales. Restructuring-related charges were $4.6 million for the same period of 2024. Total cost of revenue included share-based compensation expense of $2.1 million and $3.2 million during the six months ended June 30, 2025 and 2024, respectively.

Gross profit decreased $3.9 million, or 23%, during the six months ended June 30, 2025, compared to the same period of 2024 driven by the increase in cost of revenue from restructuring activities partially offset by an increase in gross profit driven by growth in consumable revenue. See Note 5. Restructuring in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information about restructuring activities. Gross margins may be affected by product mix, manufacturing efficiencies, warranty cost improvements, average selling price fluctuations, future product launches, changes to inventory reserves, costs of raw materials and tariffs.

Research and Development Expense

Research and development expense decreased by $30.4 million, or 37%, during the six months ended June 30, 2025, compared to the same period of 2024. The decrease was primarily driven by a decrease in personnel and related expenses due to restructuring activities, as well as the transition of launched products from development to commercialization. Research and development expense included share-based compensation expense of $5.9 million and $10.4 million during the six months ended June 30, 2025 and 2024, respectively.

Sales, General, and Administrative Expense

Sales, general and administrative expense decreased by $13.3 million, or 15%, during the six months ended June 30, 2025, compared to the same period of 2024. The decrease was primarily due to a net decrease in personnel and related expenses due to restructuring activities. Sales, general, and administrative expense included share-based compensation expense of $13.1 million and $23.1 million during the six months ended June 30, 2025 and 2024, respectively.

Impairment Charges

We recorded impairment charges of $15.0 million during the six months ended June 30, 2025, related to in-process research and development (“IPR&D”). These charges resulted from an interim impairment