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 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, down from $40.0 million in the same quarter last year and slightly below analyst expectations of $40.21 million. However, the company's adjusted earnings per share came in at -$0.12, beating the analyst estimate of -$0.15. The GAAP net loss for the quarter was $38.0 million, or $0.13 per share.

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 appear 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 significant after-hours stock decline.