10x Genomics Reports First Quarter 2025 Financial Results

Rhea-AI Summary

10x Genomics (TXG) reported mixed Q1 2025 financial results. Revenue reached $154.9 million, including $16.8 million from a patent litigation settlement. Excluding this settlement, revenue was $138.1 million, representing a 2% decrease from Q1 2024, mainly due to lower instrument sales. The company reported a net loss of $34.4 million, improved from a $59.9 million loss in Q1 2024. Gross margin increased to 68% (64% excluding settlement). To strengthen its financial position, 10x announced cost-cutting measures, including reducing operating expenses by $50 million and cutting approximately 8% of its global workforce. Due to uncertainty in U.S. academic and government research funding, the company withdrew its full-year guidance and switched to quarterly guidance, projecting Q2 2025 revenue between $138-142 million.

Positive

• Patent litigation settlement contributed $16.8 million in revenue
• Gross margin improved to 68% from 66% year-over-year
• Operating expenses decreased 6% to $144.8 million
• Net loss improved to $34.4 million from $59.9 million year-over-year
• Strong cash position with $426.9 million in cash and marketable securities
• Cost reduction plan targeting $50 million in operating expense savings

Negative

• Core revenue decreased 2% year-over-year, excluding settlement revenue
• Significant decrease in instrument revenue
• Withdrawal of full-year guidance due to funding uncertainty
• 8% workforce reduction announced
• Increased inventory reserves affecting gross margin

Insights

Biotech Financial Analyst

10x Genomics reports 2% core revenue decline and implements 8% workforce reduction amid research funding uncertainty, while maintaining strong $426.9M cash position.

The Q1 results for 10x Genomics reveal significant headwinds despite some financial improvements. Looking beyond the headline 10% revenue growth to $154.9M, the core business actually contracted by 2% year-over-year when excluding the $16.8M one-time patent litigation settlement. The company specifically highlights a "significant decrease in instrument revenue" as the main driver of this decline.

The issue appears structural rather than company-specific, with management explicitly citing "uncertainty in U.S. academic and government research funding" as the primary challenge. This has triggered substantial defensive measures, including over $50M in operating expense reductions compared to 2024 and an approximate 8% reduction in global workforce.

Financial metrics show mixed signals. Gross margin improved slightly to 68% (64% excluding settlement revenue), operating loss decreased to $39.3M from $61.5M year-over-year, and net loss improved to $34.4M from $59.9M. However, much of this improvement stems from the one-time settlement.

Cash position remains strong at $426.9M, providing runway while the company navigates market challenges. The decision to withdraw full-year guidance in favor of quarterly projections underscores significant visibility concerns, with Q2 guidance of $138-142M representing just 1% sequential growth (excluding settlement revenue).

Despite financial challenges, 10x continues innovation across its three technology platforms: Chromium, Visium, and Xenium. Management notes "improving consumables trends," potentially indicating some stability in recurring revenue streams despite capital equipment constraints among customers.

PLEASANTON, Calif., May 8, 2025 /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the first quarter ended March 31, 2025.

Recent Updates

• Revenue was $154.9 million for the first quarter. Excluding $16.8 million related to a patent litigation settlement, revenue was $138.1 million, a 2% decrease from the corresponding period of 2024, primarily driven by a significant decrease in instrument revenue.
• Ended the first quarter with cash and cash equivalents and marketable securities of $426.9 million. As a further effort to strengthen its balance sheet, the company recently implemented a plan to reduce operating expenses for 2025 by more than $50 million compared to prior year, including a reduction of approximately 8% of the company's global workforce.
• Unveiled a roadmap of product launches across all three platforms at the 2025 AGBT General Meeting, further expanding mega-scale experimental capabilities within Chromium, adding new products to the Visium platform and extending into protein offerings to unlock multiomic insights within Xenium.
• Announced a partnership with Arc Institute to accelerate the development of the Arc Virtual Cell Atlas, leveraging Chromium Flex technology to generate high quality single cell data at large scale.

"Customer enthusiasm and improving consumables trends reinforce our conviction in our technology and in the potential of Single Cell and Spatial," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "However, given uncertainty in U.S. academic and government research funding, we are temporarily moving to quarterly guidance until we see greater visibility return. During this period, we are taking actions to serve our customers and make focused investments, while prioritizing cost reduction initiatives to protect our strong balance sheet."

First Quarter 2025 Financial Results

Revenue was $154.9 million for the first quarter of 2025, a 10% increase from $141.0 million for the corresponding prior year period. Revenue includes license and royalty revenue of $16.8 million related to a worldwide patent litigation settlement.

Gross margin was 68% for the first quarter of 2025, as compared to 66% for the corresponding prior year period. The increase in gross margin was primarily due to higher license and royalty revenue and lower manufacturing costs, partially offset by an increase in inventory reserves. Excluding the impact of license and royalty revenue, gross margin was 64% for the first quarter of 2025.

Operating expenses were $144.8 million for the first quarter of 2025, a 6% decrease from $154.4 million for the corresponding prior year period. The decrease was primarily driven by a $9.2 million gain on settlement related to the litigation settlement.

Operating loss was $39.3 million for the first quarter of 2025, as compared to $61.5 million for the corresponding prior year period. Operating loss includes $31.1 million of stock-based compensation for the first quarter of 2025, as compared to $36.1 million of stock-based compensation for the corresponding prior year period.

Net loss was $34.4 million for the first quarter of 2025, as compared to a net loss of $59.9 million for the corresponding prior year period.

Cash and cash equivalents and marketable securities were $426.9 million as of March 31, 2025.

2025 Financial Guidance

As a result of recent U.S. policy changes, including their effects on academic and government research funding, 10x Genomics is withdrawing its previously issued full year revenue guidance. 10x Genomics is implementing guidance for the second quarter of 2025 and expects revenue to be in the range of $138 million to $142 million, representing 1% growth sequentially at the midpoint, excluding the license and royalty revenue from the settlement.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the first quarter 2025 financial results, business developments and outlook after market close on Thursday, May 8, 2025 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at http://investors.10xgenomics.com. The webcast will be archived and available for replay at least 45 days after the event.

About 10x Genomics

10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world's understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn, X, Facebook, Bluesky or YouTube.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "see," "estimate," "predict," "potential," "would," "likely," "seek" or "continue" or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.'s partnerships, plans, positioning, product launches, organization, goals, opportunities, potential, specifications, costs, enthusiasm, trends and adoption of 10x Genomics, Inc.'s products and services, expected performance advantages and benefits of using 10x Genomics, Inc.'s products and services and 10x Genomics, Inc.'s financial performance and results of operations, including expectations regarding revenue and guidance as well as government policy and academic and government research funding. These statements are based on management's current expectations, forecasts, beliefs, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such statements should not be relied upon as representing 10x Genomics, Inc.'s views as of any date subsequent to the date of this press release. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in 10x Genomics' expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material risks and uncertainties that could affect 10x Genomics, Inc.'s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recently-filed 10-K for the fiscal year ended December 31, 2024 and the company's 10-Q for the quarter ended March 31, 2025 to be filed with the Securities and Exchange Commission (SEC) and elsewhere in the documents 10x Genomics, Inc. files with the SEC from time to time.

Disclosure Information

10x Genomics uses filings with the Securities and Exchange Commission, its website (https://www.10xgenomics.com/), press releases, public conference calls, public webcasts and its social media accounts as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Contacts

Investors: investors@10xgenomics.com

Media: media@10xgenomics.com

10x Genomics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
	Three Months Ended March 31,
	2025		2024
Products and services revenue (1)	$         137,823		$         141,005
License and royalty revenue (1)	17,060		1
Revenue	154,883		141,006
Cost of products and services revenue (2)	49,438		48,092
Gross profit	105,445		92,914
Operating expenses:
Research and development (2)	64,245		68,638
Selling, general and administrative (2)	89,728		85,774
Gain on settlement	(9,200)		—
Total operating expenses	144,773		154,412
Loss from operations	(39,328)		(61,498)
Other income (expense):
Interest income	3,686		4,736
Interest expense	—		(1)
Other income (expense), net	2,136		(1,040)
Total other income	5,822		3,695
Loss before provision for income taxes	(33,506)		(57,803)
Provision for income taxes	852		2,146
Net loss	$          (34,358)		$          (59,949)
Net loss per share, basic and diluted	$              (0.28)		$              (0.50)
Weighted-average shares used to compute net loss per share, basic and diluted	122,606,091		119,394,180

 

(1)     The following table represents revenue by source for the periods indicated (in thousands). Spatial products includes the Company's Visium and Xenium products:

 

	Three Months Ended March 31,
	2025		2024
Instruments
Chromium	$              5,913		$              7,850
Spatial	$              8,902		17,603
Total instruments revenue	14,815		25,453
Consumables
Chromium	84,109		83,927
Spatial	31,247		26,408
Total consumables revenue	115,356		110,335
Services	7,652		5,217
Products and services revenue	137,823		141,005
License and royalty revenue	17,060		1
Total revenue	$         154,883		$         141,006

 

The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):

 

	Three Months Ended March 31,
	2025		2024
Americas
United States*	$           86,818		$           75,637
Americas (excluding United States)	3,752		3,993
Total Americas	90,570		79,630
Europe, Middle East and Africa	31,895		34,721
Asia-Pacific
China	16,883		13,924
Asia-Pacific (excluding China)	15,535		12,731
Total Asia-Pacific	32,418		26,655
Total revenue	$         154,883		$         141,006

* Includes license and royalty revenue.

 

(2)     Includes stock-based compensation expense as follows:

 

	Three Months Ended March 31,
(in thousands)	2025		2024
Cost of revenue	$              2,481		$              2,033
Research and development	14,106		16,888
Selling, general and administrative	14,489		17,208
Total stock-based compensation expense	$           31,076		$           36,129

 

10x Genomics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
	March 31, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$         377,061		$         344,067
Marketable securities	49,844		49,335
Accounts receivable, net	52,549		87,862
Inventory	74,710		83,107
Prepaid expenses and other current assets	25,566		20,016
Total current assets	579,730		584,387
Property and equipment, net	246,087		252,648
Operating lease right-of-use assets	55,577		57,290
Goodwill	4,511		4,511
Intangible assets, net	15,192		15,671
Other noncurrent assets	2,296		4,129
Total assets	$         903,393		$         918,636
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$           10,068		$           12,909
Accrued compensation and related benefits	21,957		33,615
Accrued expenses and other current liabilities	45,483		41,165
Deferred revenue	20,949		20,658
Operating lease liabilities	9,443		9,286
Total current liabilities	107,900		117,633
Operating lease liabilities, noncurrent	70,631		73,327
Deferred revenue, noncurrent	12,569		12,513
Other noncurrent liabilities	5,398		5,029
Total liabilities	196,498		208,502
Commitments and contingencies
Stockholders' equity:
Preferred stock	—		—
Common stock	2		2
Additional paid-in capital	2,208,665		2,177,672
Accumulated deficit	(1,501,405)		(1,467,047)
Accumulated other comprehensive loss	(367)		(493)
Total stockholders' equity	706,895		710,134
Total liabilities and stockholders' equity	$         903,393		$         918,636

 

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SOURCE 10x Genomics, Inc.

FAQ

What were TXG's Q1 2025 revenue and earnings?

10x Genomics reported Q1 2025 revenue of $154.9 million ($138.1 million excluding settlement) and a net loss of $34.4 million.

Why did 10x Genomics (TXG) withdraw its 2025 full-year guidance?

The company withdrew guidance due to uncertainty in U.S. academic and government research funding, switching to quarterly guidance instead.

What cost-cutting measures is TXG implementing in 2025?

10x Genomics is reducing operating expenses by $50 million compared to 2024 and cutting approximately 8% of its global workforce.

How much cash does 10x Genomics have as of Q1 2025?

The company had $426.9 million in cash, cash equivalents, and marketable securities as of March 31, 2025.

What is TXG's revenue guidance for Q2 2025?

10x Genomics expects Q2 2025 revenue to be between $138 million and $142 million, representing 1% sequential growth at the midpoint.