Shares of Pacific Biosciences of California (PACB) tumbled 6.01% in after-hours trading on Wednesday following the release of the company's third-quarter 2025 financial results. The mixed report showed improvements in some areas but also highlighted ongoing challenges for the DNA sequencing technology company.

For the third quarter, PacBio reported revenue of $38.4 million, slightly below expectations and down 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, 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 may be concerned about the declining cash position, which fell to $298.7 million from $471.1 million a year ago. This drop in cash reserves, coupled with the ongoing revenue challenges, likely contributed to the negative after-hours reaction.