Shares of Pacific Biosciences of California (PACB) plummeted 8.62% in after-hours trading on Wednesday following the release of the company's third-quarter 2025 financial results. The mixed report revealed both improvements and ongoing challenges for the DNA sequencing technology company.

For the third quarter, PacBio reported revenue of $38.4 million, falling short of expectations and marking a decrease from $40.0 million in the same quarter last year. However, the company's adjusted earnings per share came in at -$0.12, beating the analyst estimate of -$0.15. Similarly, the adjusted net loss of $36.8 million was better than the expected loss of $45.3 million.

Despite the revenue decline, PacBio showed improvements in other areas. The company's non-GAAP gross margin expanded to 42%, up from 33% in Q3 2024, reflecting better operational efficiency. Operating expenses were also reduced as part of the company's cost-cutting efforts. However, investors appeared concerned about the declining cash position, which fell to $298.7 million from $471.1 million a year ago. This significant drop in cash reserves, coupled with the ongoing revenue challenges, likely contributed to the sharp after-hours sell-off.