10x Genomics (NASDAQ: TXG) grows consumables, ends Q2 with $502M cash
Rhea-AI Filing Summary
10x Genomics, Inc. reported Q2 2026 total revenue of $151.0M, down 13% from Q2 2025, mainly because prior-year results included large, non-recurring patent-license settlements. Underlying products and services revenue rose 3% to $149.1M, driven by consumables and services growth, while instrument revenue fell 47%.
Gross margin improved to 74%, helped by lower inventory write-downs, warranty costs and tariff refunds. The company posted a net loss of $17.9M for Q2 and $31.4M for the first half of 2026, versus a small profit a year earlier. Cash and cash equivalents were $502.5M plus $49.5M of marketable securities, with $43.1M of operating cash inflow in the first half.
10x acquired Proteintech Genomics, Inc. for $6.1M in cash, recording $3.7M of developed-technology intangibles and $2.4M of goodwill, and separately capitalized a $12.4M long-term supply agreement. Fair-value contingent consideration tied to the prior Scale Biosciences acquisition was $10.1M at June 30, 2026, with up to $30.0M potentially payable on future milestones. The company also resolved litigation with Takara, while other IP cases continue. Management states that, excluding one-time litigation-related items, it expects 2026 revenues to moderately increase and operating expenses to modestly decrease versus 2025.
Positive
- None.
Negative
- Total revenue fell 13% year over year in Q2 2026 to $151.0M, and the company moved from a $34.5M profit to a $17.9M net loss, largely due to the absence of prior-year one-time patent-license settlements.
Filing Explained
10x Genomics reports that director Sarah Teichmann adopted a Rule 10b5-1 arrangement on May 14, 2026, covering sales of up to 7,551 shares through August 13, 2027, while CFO Adam Taich adopted one on June 10 covering up to 58,267 shares through December 31, 2026. These are advance trading arrangements, not reported completed sales; the filing establishes potential insider-sale capacity and states no reasons for individual trades.
Key Figures
Total revenue Q2 2026: 151,036 (in thousands of dollars)
Products and services revenue Q2 2026: 149,094 (in thousands of dollars)
Net income (loss) Q2 2026: (17,931) (in thousands of dollars)
+5 more
8 metrics
Total revenue Q2 2026
151,036 (in thousands of dollars)
Three months ended June 30, 2026 total revenue
Products and services revenue Q2 2026
149,094 (in thousands of dollars)
Three months ended June 30, 2026 products and services revenue
Net income (loss) Q2 2026
(17,931) (in thousands of dollars)
Three months ended June 30, 2026 net loss
Cash and cash equivalents
502,512 (in thousands of dollars)
Balance as of June 30, 2026
Marketable securities
49,521 (in thousands of dollars)
Available-for-sale government debt securities as of June 30, 2026
Operating cash flow H1 2026
43,094 (in thousands of dollars)
Net cash provided by operating activities for six months ended June 30, 2026
Proteintech Genomics purchase price
6,101 (in thousands of dollars)
Cash consideration allocated to PTG business acquisition
Contingent consideration fair value
10,060 (in thousands of dollars)
Fair value of contingent consideration and assumed liabilities at June 30, 2026
Key Terms
contingent consideration, Level 3 within the fair value hierarchy, Inter Partes Review, Total Shareholder Return, +1 more
5 terms
contingent consideration financial
"The Company measures the contingent consideration and certain assumed liabilities at fair value"
Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.
Level 3 within the fair value hierarchy financial
"fair value measurements ... are classified as Level 3 within the fair value hierarchy"
Inter Partes Review regulatory
"Parse filed petitions for Inter Partes Review ("IPR") of the 981, 197 and 013 patents"
An inter partes review is a formal proceeding at the U.S. Patent Office where a third party asks a panel to re-examine and possibly cancel all or part of an issued patent based on earlier public information. Investors care because the outcome can remove or uphold a company’s exclusive rights, directly affecting product exclusivity, potential revenue, legal exposure and the valuation of businesses that rely on that patent—like asking a neutral referee to re-check a key call in a game.
measurement period financial
"The purchase price allocation is preliminary and remains subject to adjustment during the measurement period"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did 10x Genomics (TXG) perform financially in Q2 2026?
10x Genomics reported Q2 2026 revenue of $151.0M and a net loss of $17.9M. Products and services contributed $149.1M, while license and royalty revenue was $1.9M, reflecting far fewer one-time litigation-related payments than in 2025.
What drove revenue changes for 10x Genomics (TXG) versus Q2 2025?
Total revenue declined 13% mainly because 2025 included $27.3M of Bruker-related license revenue and other settlements. Underlying products and services improved: consumables rose 7% to $130.8M and services grew 26%, while instrument revenue declined 47% to $7.7M.
What is 10x Genomics (TXG)'s cash position as of June 30, 2026?
As of June 30, 2026, 10x Genomics held $502.5M in cash and cash equivalents and $49.5M in marketable securities. The company generated $43.1M of operating cash flow in the first six months of 2026, supporting ongoing R&D and commercialization plans.
What acquisitions and contingent payments affect 10x Genomics (TXG)?
In June 2026, 10x Genomics acquired Proteintech Genomics, Inc. for $6.1M in cash and booked a separate $12.4M supply agreement asset. For the prior Scale Biosciences deal, contingent consideration fair value was $10.1M, with up to $30.0M potentially payable upon milestones.
How are gross margin and operating expenses trending at 10x Genomics (TXG)?
Q2 2026 gross margin improved to 74% from 72%, helped by lower manufacturing costs, inventory write-downs and warranty expenses. Research and development fell 7% year over year, while selling, general and administrative costs increased 6% in the quarter but are down 12% for the first half.
What major legal developments impact 10x Genomics (TXG)?
In May 2026, 10x Genomics settled litigation with Takara, recording $1.6M of license and royalty revenue and a $3.4M gain on settlement. Earlier Vizgen and Bruker settlements drove large 2025 royalties. IP disputes with Parse, Illumina, Element and Spatial Genomics/Caltech remain ongoing.
What guidance has 10x Genomics (TXG) provided for 2026 trends?
Management states that, excluding non-recurring license and settlement items, it expects revenues to moderately increase in 2026 compared to 2025 and operating expenses to modestly decrease, reflecting cost controls while continuing to invest in instruments, consumables and spatial biology platforms.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 10-Q
_____________________
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended June 30, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ___________ to ___________
Commission File Number: 001-39035
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) | ||||
(925 ) 401-7300
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
_____________________
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ | ||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
| Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 31, 2026, the registrant had 120,212,296 shares of Class A common stock, $0.00001 par value per share, outstanding and 10,078,872 shares of Class B common stock, $0.00001 par value per share, outstanding.
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Table of Contents
Page | ||||||||
PART I. | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements (Unaudited) | 2 | ||||||
Condensed Consolidated Balance Sheets | 2 | |||||||
Condensed Consolidated Statements of Operations | 3 | |||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) | 4 | |||||||
Condensed Consolidated Statements of Stockholders’ Equity | 5 | |||||||
Condensed Consolidated Statements of Cash Flows | 6 | |||||||
Notes to Condensed Consolidated Financial Statements | 7 | |||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19 | ||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 24 | ||||||
Item 4. | Controls and Procedures | 24 | ||||||
PART II. | OTHER INFORMATION | 26 | ||||||
Item 1. | Legal Proceedings | 26 | ||||||
Item 1A. | Risk Factors | 26 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 26 | ||||||
Item 5. | Other Information | 26 | ||||||
Item 6. | Exhibits | 27 | ||||||
Signatures | 28 | |||||||
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10x Genomics, Inc.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (this “Quarterly Report”) 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 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to those sections’ “safe harbor.” All statements, other than historical facts, may be forward-looking statements. 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 variations of these terms or similar terminology generally can identify forward-looking statements, but the absence of these words is not determinative. These forward-looking statements include statements regarding 10x Genomics, Inc.’s expectations regarding our plans, objectives, goals, beliefs, business strategies, acquisitions of Scale Biosciences, Inc. and Proteintech Genomics, Inc., results of operations, financial position, sufficiency of our capital resources, business outlook, future events, business conditions, key business metrics and key factors affecting our performance, revenues, gross margin, expenses, organization, business and other trends, expected future investments including anticipated capital expenditures, anticipated size of market opportunities and our ability to capture them, expected uses, plans and expectations regarding entering the clinical and diagnostic markets, the timing and outcome of regulatory filings and approvals, performance and benefits of our products and services, business trends and other information. These statements are based on management’s expectations, forecasts, beliefs, opinions, assumptions and information available at the time of filing and should not be relied upon as 10x Genomics, Inc.’s views as of any subsequent date. Actual outcomes and results could differ materially from these statements due to several factors. 10x Genomics, Inc. disclaims any obligation to update any published forward-looking statements except as required by law.
The material risks, uncertainties and other factors that could affect 10x Genomics, Inc.’s financial and operating results and cause actual results to differ from those indicated by the forward-looking statements made include those described in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report and Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. Our periodic filings are accessible on the U.S. Securities and Exchange Commission's (“SEC”) website at www.sec.gov. Although we believe the expectations reflected in the forward-looking statements are reasonable, new risks and uncertainties may emerge, and it is not possible for us to predict their impact on the forward-looking statements contained in this Quarterly Report. Moreover, the information the forward-looking statements are based upon may be limited or incomplete, and may not be based upon all potentially relevant information. We cannot guarantee future events, circumstances, results, performance or achievements. In light of the foregoing, investors are urged not to place undue reliance on any forward-looking statement or third-party data in reaching any conclusion or making any investment decision about any securities of the Company.
Unless otherwise stated or the context otherwise indicates, references to “we,” “us,” “our,” “the Company,” “10x” and similar references refer to 10x Genomics, Inc. and its subsidiaries.
Channels for Disclosure of Information
Investors and others should note that we may announce material information to the public through filings with the SEC, our website (https://www.10xGenomics.com), press releases, public conference calls, public webcasts and our social media accounts (https://www.linkedin.com/company/10xgenomics, https://X.com/10xGenomics, https://www.facebook.com/10xGenomics, https://bsky.app/profile/10xgenomics.bsky.social and https://www.youtube.com/@10xGenomics_). We use these channels to communicate with our customers and the public about the Company, our products, our services, our financial results, business developments and other matters. We encourage our investors, the media and others to review the information disclosed through such channels as such information could be deemed to be material information. The information on such channels, including on our website and our social media accounts, is not incorporated by reference in this Quarterly Report and shall not be deemed to be incorporated by reference into any other filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing. Please note that this list of disclosure channels may be updated from time to time.
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10x Genomics, Inc.
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
10x Genomics, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
| June 30, 2026 | December 31, 2025 | ||||||||||
| (Unaudited) | (Note 1) | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Marketable securities | |||||||||||
| Accounts receivable, net | |||||||||||
| Other receivables | |||||||||||
| Inventory | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Total current assets | |||||||||||
| Property and equipment, net | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Goodwill | |||||||||||
| Intangible assets, net | |||||||||||
| Other noncurrent assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued compensation and related benefits | |||||||||||
| Accrued expenses and other current liabilities | |||||||||||
| Deferred revenue | |||||||||||
| Operating lease liabilities | |||||||||||
| Contingent consideration, current | |||||||||||
| Total current liabilities | |||||||||||
| Contingent consideration, noncurrent | |||||||||||
| Operating lease liabilities, noncurrent | |||||||||||
| Deferred revenue, noncurrent | |||||||||||
| Other noncurrent liabilities | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 5) | |||||||||||
| Preferred stock | |||||||||||
| Common stock | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated deficit | ( | ( | |||||||||
| Accumulated other comprehensive income | |||||||||||
| Total stockholders’ equity | |||||||||||
| Total liabilities and stockholders’ equity | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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10x Genomics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Products and services revenue | $ | $ | $ | $ | |||||||||||||||||||
| License and royalty revenue | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Cost of products and services revenue | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Gain on settlement | ( | ( | ( | ( | |||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Income (loss) from operations | ( | ( | ( | ||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | |||||||||||||||||||||
| Other income (expense), net | ( | ( | |||||||||||||||||||||
| Total other income | |||||||||||||||||||||||
| Income (loss) before provision for income taxes | ( | ( | |||||||||||||||||||||
| Provision for (benefit from) income taxes | ( | ( | |||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Net income (loss) per share, basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Net income (loss) per share, diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Weighted-average shares used to compute net income (loss) per share, basic | |||||||||||||||||||||||
| Weighted-average shares used to compute net income (loss) per share, diluted | |||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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10x Genomics, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(In thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Unrealized gains (losses) on available-for-sale marketable securities | ( | ( | ( | ||||||||||||||||||||
| Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
| Comprehensive income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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10x Genomics, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
(In thousands, except share data)
| Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
| Issuance of Class A common stock related to equity awards | — | — | — | ||||||||||||||||||||||||||||||||
| Issuance of Class A common stock for settlement of contingent consideration | — | — | — | ||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Balance as of March 31, 2026 | ( | ||||||||||||||||||||||||||||||||||
| Issuance of Class A common stock related to equity awards | — | — | — | ||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Issuance of Class A common stock related to equity awards | — | — | — | ||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
| Balance as of March 31, 2025 | ( | ( | |||||||||||||||||||||||||||||||||
| Issuance of Class A common stock related to equity awards | — | — | — | ||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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10x Genomics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities: | |||||||||||
| Net income (loss) | $ | ( | $ | ||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Stock-based compensation expense | |||||||||||
| Depreciation and amortization | |||||||||||
| Non-cash lease expense | |||||||||||
| Fair value adjustments on contingent consideration | |||||||||||
| Asset and lease impairment charges | |||||||||||
| Deferred income taxes | ( | ||||||||||
| Other | ( | ( | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | ( | ||||||||||
| Other receivables | ( | ||||||||||
| Inventory | |||||||||||
| Prepaid expenses and other current assets | ( | ||||||||||
| Other noncurrent assets | ( | ||||||||||
| Accounts payable | |||||||||||
| Accrued compensation and other related benefits | ( | ( | |||||||||
| Deferred revenue | ( | ( | |||||||||
| Accrued contingent consideration and assumed liabilities | ( | ||||||||||
| Accrued expenses and other current liabilities | ( | ( | |||||||||
| Operating lease liability | ( | ( | |||||||||
| Other noncurrent liabilities | |||||||||||
| Net cash provided by operating activities | |||||||||||
| Investing activities: | |||||||||||
| Business combination | ( | ||||||||||
| Purchases of property and equipment | ( | ( | |||||||||
| Purchases of marketable securities | ( | ( | |||||||||
| Proceeds from maturities of marketable securities | |||||||||||
| Purchase of equity interest rights | ( | ||||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Financing activities: | |||||||||||
| Issuance of common stock from exercise of stock options | |||||||||||
| Payment of contingent consideration | ( | ||||||||||
| Net cash provided by (used in) financing activities | ( | ||||||||||
| Effect of exchange rates changes on cash and cash equivalents | ( | ||||||||||
| Net increase in cash and cash equivalents | |||||||||||
| Cash and cash equivalents at beginning of period | |||||||||||
| Cash and cash equivalents at end of period | $ | $ | |||||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Net cash paid for income taxes | $ | $ | |||||||||
| Noncash investing and financing activities: | |||||||||||
| Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities | $ | $ | |||||||||
| Issuance of Class A common stock for settlement of contingent consideration | $ | $ | |||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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10x Genomics, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
o
1. Description of Business and Basis of Presentation
Organization and Description of Business
10x Genomics, Inc. (the “Company”) is a life sciences technology company focused on building innovative products and solutions to interrogate, understand and master biology. The Company’s integrated research solutions include the Company’s single cell instruments, which include the Company’s Chromium instruments, and the Company's Spatial instruments, which include the Company’s Visium CytAssist and Xenium Analyzer instruments, and the Company’s consumables which include proprietary microfluidic chips, slides, reagents and other consumables for the Company’s Chromium, Visium and Xenium solutions. The Company bundles its software with these products to guide customers through the workflow, from sample preparation through analysis and visualization. Customers purchase instruments and consumables from the Company for use in their experiments. The Company was incorporated in the state of Delaware in July 2012 and began commercial and manufacturing operations and selling its instruments and consumables in 2015. The Company is headquartered in Pleasanton, California and has wholly-owned subsidiaries in Asia, Europe, Oceania and North America.
Basis of Presentation
The accompanying condensed consolidated financial statements, which include the Company’s accounts and the accounts of its wholly-owned subsidiaries, are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The condensed consolidated balance sheet at December 31, 2025 has been derived from the audited consolidated financial statements of the Company at that date. Certain information and footnote disclosures typically included in the Company’s audited consolidated financial statements have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, comprehensive income (loss) and cash flows for the periods presented, but are not necessarily indicative of the results of operations to be anticipated for any future annual or interim period. All intercompany transactions and balances have been eliminated. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
The accompanying unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2025 included in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 12, 2026 (“Annual Report”).
2. Summary of Significant Accounting Policies
There were no material changes in the Company’s significant accounting policies during the six months ended June 30, 2026 except for the addition of the policy below for business combinations. See Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report for information regarding the Company’s significant accounting policies.
Business Combinations
Under the acquisition method of accounting, the Company allocates the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. These valuations require the Company to make estimates and assumptions, especially with respect to intangible assets. The Company records the excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, as goodwill. Costs that the Company incurs to complete the business combination, such as legal and other professional fees, are expensed as they are incurred.
If the initial accounting for a business combination is incomplete by the end of a reporting period that falls within the measurement period (not to exceed a year from the date of acquisition), the Company reports provisional amounts in its financial statements. During the measurement period, the Company adjusts the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. The Company records these adjustments to the provisional amounts with a corresponding offset to goodwill. Any adjustments identified after the measurement period are recorded in the consolidated statements of operations.
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10x Genomics, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
Segment Information
The Company operates as a single operating and reportable segment. The Company’s single reportable segment consists of its integrated research solutions, including instruments, consumables and related software for single cell and spatial analysis. The Company’s chief operating decision maker (“CODM”), its Chief Executive Officer, manages the Company’s operations on a consolidated basis for the purposes of allocating resources, making operating decisions and evaluating financial performance. The CODM evaluates the Company’s performance and allocates resources based on consolidated operating results, including loss from operations. The significant segment expenses regularly provided to and reviewed by the CODM are consistent with the expense categories presented in the consolidated statements of operations.
Revenue Recognition
Products and Services Revenue
The Company generates revenue from sales of products, which consist of instruments and consumables, and services. Revenue from product sales is recognized when control of the product is transferred, which is generally upon shipment to the customer. Instrument service agreements, which relate to extended warranties, are typically entered into for a one-year term, following the expiration of the standard one-year warranty period. Revenue for extended warranties is recognized ratably over the term of the extended warranty period as a stand ready performance obligation. Revenue is recorded net of discounts, distributor commissions and sales taxes collected on behalf of governmental authorities. Customers are invoiced generally upon shipment, or upon order for services, and payment is typically due within 30 days. Cash received from customers in advance of product shipments or the provision of services is recorded as a contract liability. The Company’s contracts with its customers generally do not include rights of return or a significant financing component.
The Company regularly enters into contracts that include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. The transaction price is allocated to each performance obligation in proportion to its standalone selling price. The Company determines standalone selling price using average selling prices with consideration of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, the Company relies upon prices set by management, adjusted for applicable discounts.
License and Royalty Revenue
The Company has agreements with third parties that include up-front fees and royalties. Revenue related to the delivery of intellectual property is recognized when the license is delivered to the third parties. Royalty revenue is recognized when the underlying sales occur. If the reporting of the actual sales from the Company’s licensees occurs after the Company’s reporting date, the Company estimates the royalty revenue receivable at the reporting date and adjusts for any changes in estimates in the following period.
Recently Issued Accounting Pronouncement and Disclosure Rules
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"), and in January 2025 issued ASU 2025-01, Clarifying the Effective Date ("ASU 2025-01") to provide clarification as to the effective date. ASU 2024-03 requires disaggregated disclosure of income statement expenses. ASU 2024-03 does not change the expense captions currently presented on the income statement; rather it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03, as amended by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027. ASU 2024-03 can be applied on a prospective basis; however, retrospective application is permitted. Early adoption is permitted. As ASU 2024-03 only requires additional disclosure, it will not have a material impact on the Company's financial condition and results of operations.
3. Acquisition
On June 8, 2026, the Company entered into a stock purchase agreement (“SPA”) to acquire 100 % of the outstanding shares of common stock of Proteintech Genomics, Inc. (“PTG”), a division of Proteintech Group, Inc. (“Proteintech”), for $6.1 million in cash. PTG specializes in developing high-plex proteomic solutions for single cell and spatial applications on 10x platforms. The acquisition is expected to expand the Company’s proteomics capabilities.
Concurrently with the SPA, the Company and Proteintech entered into a supply agreement under which Proteintech will supply products to the Company for use in single-cell and spatial analysis. The supply agreement was accounted for separately from the acquisition of the PTG business. The total consideration paid for the supply agreement and the PTG business was allocated based on the relative fair value of each component, with the fair value of the supply agreement determined by using the
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Notes to Unaudited Condensed Consolidated Financial Statements
income approach and the fair value of PTG’s enterprise value determined by using the net asset value method. Based on the allocation, $12.4 million related to the supply agreement was recorded in “Other noncurrent assets” and “Prepaid expenses and other current assets” in the condensed consolidated balance sheets. The amount allocated to the supply agreement will be reclassified to inventory as quantities are purchased over a 10-year period. $6.1 million was allocated to the PTG business.
The fair value measurements used to allocate the total consideration between the supply agreement and the PTG business, as described above, are classified as Level 3 within the fair value hierarchy, as they are based on significant unobservable inputs, including management's estimates of future purchase volumes, contractual and market pricing, and a discount rate.
The acquisition of the PTG business was accounted for as a business combination using the acquisition method of accounting.
The purchase price consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess of the purchase consideration over the estimated fair value of the identifiable net assets acquired recorded as goodwill as summarized below (in thousands):
| Intangible assets (developed technology) | $ | ||||
| Total tangible assets acquired and liabilities assumed, net | ( | ||||
| Goodwill | |||||
| Total adjusted price consideration | $ | ||||
The fair value of the developed technology was estimated using a cost approach, reflecting the estimated current cost to recreate the technology with comparable functionality and utility. The developed technology intangible asset will be amortized on a straight-line basis over its estimated useful life of 10 years. Because these inputs involve significant judgment and are not observable in the market, the fair value measurement is classified as Level 3 within the fair value hierarchy. See Note 4, Other Financial Statement Information, for additional information regarding the intangible assets acquired.
The goodwill is primarily attributable to PTG’s specialized assembled workforce and expected future synergies from combining operations. The Company does not expect the goodwill from this acquisition to be deductible for income tax purposes.
The purchase price allocation is preliminary and remains subject to adjustment during the measurement period, which may extend for up to one year from the acquisition date.
During the three months ended June 30, 2026, the Company incurred acquisition-related transaction costs of approximately $1.0 million which were expensed as incurred and are included in selling, general and administrative expenses in the condensed consolidated statements of operations. Pro forma information for the acquisition above has not been presented as the impact of this acquisition is not material to the Company’s financial statements.
Contingent Consideration
In 2025, the Company completed the asset acquisition of Scale Biosciences, Inc. (“Scale Bio”) and recorded contingent consideration and assumed liabilities related to the potential achievement of certain milestones. In the first quarter of 2026, the Company made a milestone payment consisting of $10.0 million in cash and $8.7 million in shares (396,584 shares) of the Company’s Class A common stock in connection with a technology transfer completed in the third quarter of 2025. In the future, the Company may pay up to $30.0 million of contingent consideration and assumed liabilities if certain milestones are met. The Company determined that the contingent consideration and certain assumed liabilities are within the scope of ASC 480, Distinguishing Liabilities from Equity, because the related obligations may be settled in cash or shares of the Company’s Class A common stock, at the Company’s election.
The Company measures the contingent consideration and certain assumed liabilities at fair value on a recurring basis. They are valued using a probability-weighted discounted cash flow approach, which reflects management’s estimates of future outcomes, timing of payments and discount rates. Because these inputs involve significant judgment, the fair value measurements are classified as Level 3 within the fair value hierarchy.
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Notes to Unaudited Condensed Consolidated Financial Statements
The following table sets forth a summary of the changes in the fair value of the Company’s contingent consideration and certain assumed liabilities, which are measured at fair value on a recurring basis utilizing Level 3 assumptions (in thousands):
| Six Months Ended | |||||
| June 30, 2026 | |||||
| Beginning of period | $ | ||||
Settlement of contingent consideration to sellers in cash | ( | ||||
Settlement of contingent consideration to sellers in equity | ( | ||||
| Settlement of assumed liabilities to third parties | ( | ||||
Change in fair value of contingent consideration(1) | |||||
End of period | $ | ||||
______________________________
Cash payments totaling $0.6 million made to third parties that were outside of the scope of ASC 480 were not included in the above table.
4. Other Financial Statement Information
Available-for-sale Securities
Available-for-sale securities consisted of the following (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Fair Value Measurement | |||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Money market funds | $ | $ | — | $ | — | $ | $ | $ | — | $ | — | $ | Level 1 | ||||||||||||||||||||||||||||||||||||||||
| Marketable securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Government debt securities | ( | Level 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total available-for-sale securities | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
The contractual maturities of marketable securities as of June 30, 2026 were all less than one year.
The available-for-sale debt securities are subject to a periodic impairment review. For investments in an unrealized loss position, the Company determines whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. The Company recognizes an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and writes down the amortized cost basis of the investment if it is more likely than not that the Company will be required or will intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in “Other expense, net,” and unrealized losses not related to credit losses are recognized in “Other comprehensive income (loss).” There are no allowances for credit losses for the periods presented.
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Notes to Unaudited Condensed Consolidated Financial Statements
Inventory
Inventory was comprised of the following (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Finished goods | $ | $ | |||||||||
| Work in progress | |||||||||||
| Purchased materials | |||||||||||
| Inventory | $ | $ | |||||||||
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Building | $ | $ | |||||||||
| Leasehold improvements | |||||||||||
| Laboratory equipment and machinery | |||||||||||
| Land | |||||||||||
| Computer equipment and software | |||||||||||
| Furniture and fixtures | |||||||||||
| Construction in progress | |||||||||||
| Total property and equipment | |||||||||||
| Less: accumulated depreciation and amortization | ( | ( | |||||||||
| Property and equipment, net | $ | $ | |||||||||
During the six months ended June 30, 2025, the Company recorded impairment charges of $0.1 million related to equipment. The impairment charge was triggered by a decision to discontinue an engineering project.
Intangible Assets, Net
Intangible assets, net consisted of the following (dollars in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Remaining Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Intangibles, Net | Gross Carrying Amount | Accumulated Amortization | Intangibles, Net | |||||||||||||||||||||||||||||||||||
| Developed technology | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| Technology licenses | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Assembled workforce | 0 | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Customer Relationships | 0 | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Total intangible assets, net | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
During the three months ended June 30, 2026, the Company recorded developed technology of $3.7 million in connection with the PTG acquisition with an estimated useful life of 10 years. The amortization of developed technology is recorded in cost of revenue. See Note 3, Acquisition, for details related to the intangible asset acquired.
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Notes to Unaudited Condensed Consolidated Financial Statements
Compensation and Related Benefits
Accrued compensation and related benefits were comprised of the following (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Accrued bonus | $ | $ | |||||||||
| Accrued commissions | |||||||||||
| Accrued payroll and related costs | |||||||||||
| Other | |||||||||||
| Accrued compensation and related benefits | $ | $ | |||||||||
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities were comprised of the following (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Taxes payable | $ | $ | |||||||||
| Product warranties | |||||||||||
| Customer refunds and deposits payable | |||||||||||
| Accrued royalties for licensed technologies | |||||||||||
| Accrued professional services | |||||||||||
| Accrued legal and related costs | |||||||||||
| Other | |||||||||||
| Accrued expenses and other current liabilities | $ | $ | |||||||||
Product Warranties
Changes in the reserve for product warranties were as follows (in thousands):
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Beginning of period | $ | $ | |||||||||
| Amounts charged to cost of revenue | |||||||||||
| Repairs and replacements | ( | ( | |||||||||
| End of period | $ | $ | |||||||||
Revenue and Deferred Revenue
As of June 30, 2026, the aggregate amount of remaining performance obligations primarily related to separately sold extended warranty service agreements or allocated amounts for extended warranty service agreements bundled with sales of instruments was $33.3 million, of which approximately $23.6 million is expected to be recognized as revenue in the next 12 months, with the remainder thereafter. The contract liabilities of $33.3 million and $34.4 million as of June 30, 2026 and December 31, 2025, respectively, primarily consisted of deferred revenue related to extended warranty service agreements.
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Notes to Unaudited Condensed Consolidated Financial Statements
| Six Months Ended June 30, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| Beginning of period | $ | $ | |||||||||
| Revenue recognized that was included in the contract liability at the beginning of the year | ( | ( | |||||||||
| Revenue deferred excluding amounts recognized as revenue during the period | |||||||||||
| End of period | $ | $ | |||||||||
The following table represents revenue by source for the periods indicated (in thousands). Spatial includes the Company’s Visium and Xenium products:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Instruments | |||||||||||||||||||||||
| Single Cell | $ | $ | $ | $ | |||||||||||||||||||
| Spatial | |||||||||||||||||||||||
| Total instruments revenue | |||||||||||||||||||||||
| Consumables | |||||||||||||||||||||||
| Single Cell | |||||||||||||||||||||||
| Spatial | |||||||||||||||||||||||
| Total consumables revenue | |||||||||||||||||||||||
| Services | |||||||||||||||||||||||
| Products and services revenue | |||||||||||||||||||||||
| License and royalty revenue | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | |||||||||||||||||||
The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Americas | |||||||||||||||||||||||
United States(1) | $ | $ | $ | $ | |||||||||||||||||||
| Americas (excluding United States) | |||||||||||||||||||||||
| Total Americas | |||||||||||||||||||||||
| Europe, Middle East and Africa | |||||||||||||||||||||||
| Asia-Pacific | |||||||||||||||||||||||
| China | |||||||||||||||||||||||
| Asia-Pacific (excluding China) | |||||||||||||||||||||||
| Total Asia-Pacific | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | |||||||||||||||||||
______________________________
(1) Includes license and royalty revenue.
License and Royalty Revenue
In May 2026, the Company settled its patent litigation with Takara Bio USA Holdings, Inc. (“Takara”) and recorded $1.6 million of license and royalty revenue in the three and six months ended June 30, 2026. In February 2025, the Company settled its worldwide patent litigation with Vizgen, Inc. (“Vizgen”). As part of the settlement agreement with Vizgen, the
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10x Genomics, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
Company recorded $16.8 million of license and royalty revenue in the six months ended June 30, 2025. In May 2025, the Company entered into a settlement agreement and license agreements with Bruker Corporation (“Bruker”). Under the settlement agreement with Bruker, the Company recorded $27.3
Other Income (Expense), Net
Other income (expense), net consists of gains and losses from foreign currency remeasurements and changes in fair value of the contingent consideration related to the Scale acquisition. The Company recognized foreign currency transaction losses of $0.4 million and $1.1 million for the three and six months ended June 30, 2026, respectively, and foreign currency transaction income of $2.3 million and $3.7 million for the three and six months ended June 30, 2025, respectively. The Company recognized a $3.5 million loss resulting from the change in fair value of the contingent consideration related to the Scale acquisition in the three and six months ended June 30, 2026.
5. Commitments and Contingencies
Lease Agreements
The Company leases office, laboratory, manufacturing, distribution and server space in various locations worldwide.
The payments due under the Company’s operating lease liabilities as of June 30, 2026 are as follows (in thousands):
| Year Ended December 31, | Operating Leases | ||||
| 2026 (excluding the six months ended June 30, 2026) | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| Thereafter | |||||
| Total lease payments | $ | ||||
| Less: imputed interest | ( | ||||
| Present value of operating lease liabilities | $ | ||||
| Operating lease liabilities, current | $ | ||||
| Operating lease liabilities, noncurrent | |||||
| Total operating lease liabilities | $ | ||||
The following table summarizes additional information related to the Company’s operating leases:
| June 30, 2026 | December 31, 2025 | ||||||||||
| Weighted-average remaining lease term | |||||||||||
| Weighted-average discount rate | % | % | |||||||||
Litigation
The Company is regularly subject to lawsuits, claims, arbitration proceedings, administrative actions and other legal and regulatory proceedings involving intellectual property disputes, commercial disputes, competition and other matters, and the Company may become subject to additional types of lawsuits, claims, arbitration proceedings, administrative actions, government investigations and legal and regulatory proceedings in the future. As of June 30, 2026, the Company has concluded that a loss is not probable and a contingent liability has not been recorded.
Parse
In August 2022, the Company filed suit against Parse Biosciences, Inc. (“Parse”) in the U.S. District Court for the District of Delaware alleging that Parse’s Evercode Whole Transcriptomics products and ATAC-seq products infringe U.S. Patent Nos.
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10x Genomics, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
10,155,981 (the “981 patent”), 10,697,013 (the “013 patent”), 10,240,197 (the “197 patent”), 10,150,995 (the “995 patent”), 10,619,207 (the “207 patent”) and 10,738,357 (the “357 patent”). In February 2025, the Court entered a consent judgment and permanent injunction against Parse with respect to the 995, 207 and 357 patents relating to ATAC-seq. Parse filed petitions for Inter Partes Review (“IPR”) of the 981, 197 and 013 patents which were found unpatentable by the Patent Trial and Appeal Board in February 2025. The Company strongly disagrees with those decisions and has appealed. Oral arguments in the appeal were heard in June 2026. The District Court case is stayed pending the outcome of the appeals.
In August 2025, the Company acquired Scale Bio. Scale Bio and Parse are parties in a litigation in the U.S. District Court for the District of Delaware in which Scale Bio is asserting that Parse’s Evercode products infringe U.S. Patent Nos. 10,626,442, 10,982,256, 11,512,341 and 11,634,752 (the “752 patent”) and Parse is asserting the Scale Bio’s single cell sequencing products infringe U.S. Patent Nos. 10,900,065, 11,168,355 and 11,427,856 (the “Asserted Parse Patents”). In February 2025, the parties filed a stipulation agreeing that Scale Bio’s High Throughput Assay and methods of using such assays do not infringe the Asserted Parse Patents, and dismissing such claims. In October 2025, the Court entered summary judgment that the 752 patent is invalid. The Company strongly disagrees with this decision and plans to appeal. In November 2025, the Court entered summary judgment that the accused Scale Bio products do not infringe the Asserted Parse Patents, and in June 2026 the Court entered summary judgment that the Asserted Parse Patents are invalid. Additional summary judgment motions are pending. Trial is scheduled for August 2026.
Takara (Curio)
Takara and the Company were previously engaged in litigation in multiple jurisdictions involving Takara’s Seeker and Trekker products. In May 2026, the Company and Takara resolved all outstanding litigation between the two companies. All claims in the litigation have been dismissed with prejudice.
Illumina
In October 2025, the Company filed suit against Illumina, Inc. (“Illumina”) in the U.S. District Court for the District of Delaware. In a first suit, the Company alleges Illumina’s announced spatial technology program infringes U.S. Patent Nos. 11,008,607, 11,549,138, 12,234,505 and 12,297,487. In a second suit, the Company alleges Illumina’s single cell kits and workflow infringe U.S. Patent Nos. 11,692,214, 11,932,902, 12,275,993, 12,305,239 and 12,416,192. Trial in the first suit is scheduled for January 2028. Trial in the second cell suit is scheduled for April 2028.
Element
In May 2026, the Company filed a suit against Element Biosciences, Inc. (“Element”) in the U.S. District Court for the District of Delaware alleging that the Element Aviti24 device and associated kits and reagents infringe U.S. Patent Nos. 11,021,737, 11,566,276, 11,566,277, and 12,264,358. Element filed a partial motion to dismiss in July 2026 and has not yet answered the Complaint. No schedule has been set.
In May 2026, the Company filed a suit in the Munich Local Division of the UPC alleging that the Element Aviti24 device and associated kits and reagents infringe EP 4249605 and EP 4491741. In July 2026, Element filed an opposition in the European Patent Office challenging the validity of the EP 741 patent.
Spatial Genomics
In August 2026, Spatial Genomics, Inc. (“SG”) and the California Institute of Technology (“Caltech”) filed suit against the Company in the U.S. District Court for the District of Delaware alleging that the Company's Xenium platform infringes U.S. Patent Nos. 10,457,980, 11,473,129, 12,305,224, 12,601,007 and 12,630,868. SG and Caltech seek, among other relief, injunctive relief and unspecified damages (including attorneys' fees) in relation to the Company's making, using, selling, offering to sell, exporting and/or importing into the United States the Xenium platform and associated instruments, reagents, components and services. The Company believes SG and Caltech's claims are meritless and intends to vigorously defend itself.
6. Capital Stock
As of June 30, 2026, the number of shares of Class A common stock and Class B common stock issued and outstanding were 120,203,444 10,078,872
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Notes to Unaudited Condensed Consolidated Financial Statements
7. Equity Incentive Plans
Stock-based Compensation
The Company recorded stock-based compensation expense for the periods presented as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
| Research and development | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Total stock-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
Restricted Stock Units
Restricted stock units (“RSUs”) activity for the six months ended June 30, 2026 was as follows:
| Restricted Stock Units | Weighted-Average Grant Date Fair Value (per share) | ||||||||||
| Outstanding as of December 31, 2025 | $ | ||||||||||
| Granted | |||||||||||
| Vested | ( | ||||||||||
| Cancelled | ( | ||||||||||
| Outstanding as of June 30, 2026 | $ | ||||||||||
Stock Options
Stock option activity for the six months ended June 30, 2026 was as follows:
| Stock Options | Weighted-Average Exercise Price | ||||||||||
| Outstanding as of December 31, 2025 | $ | ||||||||||
| Exercised | ( | ||||||||||
| Cancelled and forfeited | ( | ||||||||||
| Outstanding as of June 30, 2026 | $ | ||||||||||
Performance Stock Awards
In February 2026, the Company granted 396,060 performance stock units (“2026 PSUs”) under the 2019 Omnibus Incentive Plan (“2019 Plan”) to certain members of management which are subject to the achievement of certain performance conditions established by the Company’s Compensation Committee of the Board of Directors as described below:
i.50 % of target 2026 PSUs earned will be based on the Company’s compound annual growth rate (“CAGR”) of the Company’s revenue over a two-year performance period from January 1, 2026 to December 31, 2027. Holders may earn from 0 % to 200 % of the target amount of shares and earned 2026 PSUs will then be subject to service-based vesting; and
ii.50 % of target 2026 PSUs earned will be based on the relative Total Shareholder Return (“TSR”) of the Company’s Class A common stock as compared to the TSR of the members of the Russell 3000 Medical Equipment and Services Sector Index over a three-year performance period from January 1, 2026 to December 31, 2028. Depending on the results relative to the TSR market condition, the holders may earn from 0 % to 200 % of the target amount of shares which will vest at the end of the performance period.
The 2026 PSUs will be forfeited if the performance conditions are not achieved at the end of the relative performance periods as described above. The vesting of the 2026 PSUs can also be triggered upon certain change in control events or in the event of death or disability.
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Notes to Unaudited Condensed Consolidated Financial Statements
The weighted-average grant date fair values of the 2026 PSUs for the CAGR and TSR components were $22.13 and $35.88 per share, respectively. Stock-based compensation expense recognized for the TSR component of the 2026 PSUs was $0.6 million and $0.8 million for the three and six months ended June 30, 2026. The vesting of the CAGR component of the 2026 PSUs was deemed not probable of vesting as of June 30, 2026, which resulted in no
The Company estimated the weighted-average grant date fair values of shares granted under the TSR component of the 2026 PSUs using a Monte Carlo simulation model with the following assumptions:
| Expected volatility | |||||
| Risk-free interest rate | |||||
| Expected dividend yield | |||||
In March 2025, the Company granted 561,603 PSUs (“2025 PSUs”) under the 2019 Plan to certain members of management, which are subject to the achievement of certain market-condition and performance-condition goals established by the Company’s Compensation Committee of the Board of Directors.
As of June 30, 2026, the measurement periods for the 2026 and 2025 PSUs were not completed and the market and performance criteria for the stock awards were not met and therefore no shares vested or became exercisable.
2019 Employee Stock Purchase Plan
As of June 30, 2026, a total of 6,186,502 shares of Class A common stock were reserved for issuance under the 2019 Employee Stock Purchase Plan (“ESPP”). The price at which Class A common stock is purchased under the ESPP is equal to 85 % of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower.
During the three months ended June 30, 2026 and 2025, 213,541 and 446,766 shares of Class A common stock, respectively, were issued under the ESPP. As of June 30, 2026, there were 4,287,045 shares available for issuance under the ESPP.
8. Net Income (Loss) Per Share
The Company computes net income (loss) per share attributable to common stockholders using the two-class method required for multiple classes of common stock and participating securities. The holders of our Class A and Class B common stock (together, "common stock") have identical liquidation and dividend rights but different voting rights. Accordingly, the Company presents net income (loss) per share for Class A and Class B common stock together.
Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding adjusted for the dilutive effect of all potential shares of common stock. In periods when the Company reported a net loss, diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive.
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10x Genomics, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Basic net income (loss) per share: | |||||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Weighted average common shares, basic | |||||||||||||||||||||||
| Basic net income (loss) per share | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Diluted net income (loss) per share: | |||||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Weighted average common shares, basic | |||||||||||||||||||||||
| Effect of dilutive awards: | |||||||||||||||||||||||
| Employee stock plans | |||||||||||||||||||||||
| Weighted-average common shares, diluted | |||||||||||||||||||||||
| Diluted net income (loss) per share | $ | ( | $ | $ | ( | $ | |||||||||||||||||
The following outstanding shares of common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have had an anti-dilutive effect:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Restricted stock units | |||||||||||||||||||||||
| Stock options to purchase common stock | |||||||||||||||||||||||
| Shares committed under the ESPP | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
You should read the following discussion of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report and our audited consolidated financial statements and notes thereto and the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on February 12, 2026 (our "Annual Report"). As discussed in the section titled “Special Note Regarding Forward-Looking Statements,” the following discussion and analysis, in addition to historical financial information, contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” in this Quarterly Report and in Part I, Item 1A of our Annual Report.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
Overview
We are a life sciences technology company focused on building innovative products and solutions to interrogate, understand and master biology. Our integrated research solutions include instruments, consumables and software for analyzing biological systems at resolution and scale that matches the complexity of biology. Our commercial product portfolio is made up of our Single Cell and Spatial solutions. Our products include our instruments, which include our Chromium instruments, our Visium CytAssist and our Xenium Analyzer, and our consumables, which include proprietary microfluidic chips, slides, reagents and other consumables for our Single Cell and Spatial solutions. We bundle our software with these products to guide customers through the workflow, from sample preparation through analysis and visualization. Customers purchase instruments and consumables from us for use in their experiments. We also derive revenue from post-warranty service contracts for our instruments.
Acquisition
On June 8, 2026, we entered into a stock purchase agreement (“SPA”) to acquire 100% of the outstanding shares of common stock of Proteintech Genomics, Inc. (“PTG”), a division of Proteintech Group, Inc. (“Proteintech”), for $6.1 million in cash. PTG specializes in developing high-plex proteomic solutions for single cell and spatial applications on 10x platforms. We expect the acquisition will allow us to expand our proteomics capabilities.
Concurrently with the SPA, we and Proteintech entered into a supply agreement under which Proteintech will supply products to us for use in single-cell and spatial analysis. The supply agreement was accounted for separately from the acquisition of the PTG business. The total consideration paid for the supply agreement and the PTG business was allocated based on the relative fair value of each component, with the fair value of the supply agreement determined by using the income approach and the fair value of PTG’s enterprise value determined by using the net asset value method. Based on the allocation, $12.4 million related to the supply agreement was recorded in “Other noncurrent assets” and “Prepaid expenses and other current assets” in the condensed consolidated balance sheets. The amount allocated to the supply agreement will be reclassified to inventory as quantities are purchased over a 10-year period. $6.1 million was allocated to the PTG business.
The fair value measurements used to allocate the total consideration between the supply agreement and the PTG business, as described above, are classified as Level 3 within the fair value hierarchy, as they are based on significant unobservable inputs, including management's estimates of future purchase volumes, contractual and market pricing, and a discount rate.
The acquisition of the PTG business was accounted for as a business combination using the acquisition method of accounting. The purchase price consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, including $3.7 million of developed technology, with the excess of the purchase consideration over the estimated fair value of the identifiable net assets acquired recorded as goodwill.
The fair value of the developed technology was estimated using a cost approach, reflecting the estimated current cost to recreate the technology with comparable functionality and utility. The developed technology intangible asset will be amortized over an estimated useful life of 10 years. Because these inputs involve significant judgment and are not observable in the market, the fair value measurement is classified as Level 3 within the fair value hierarchy.
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Comparison of the Three and Six Months Ended June 30, 2026 and 2025
Revenue
The following table represents total revenue by source for the periods indicated (dollars in thousands). Spatial includes our Visium and Xenium products:
| Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||
| Instruments | |||||||||||||||||||||||||||||||||||||||||||||||
| Single Cell | $ | 3,087 | $ | 5,727 | $ | (2,640) | (46) | % | $ | 8,310 | $ | 11,640 | $ | (3,330) | (29) | % | |||||||||||||||||||||||||||||||
| Spatial | 4,574 | 8,770 | (4,196) | (48) | 10,613 | 17,672 | (7,059) | (40) | |||||||||||||||||||||||||||||||||||||||
| Total instruments revenue | 7,661 | 14,497 | (6,836) | (47) | 18,923 | 29,312 | (10,389) | (35) | |||||||||||||||||||||||||||||||||||||||
| Consumables | |||||||||||||||||||||||||||||||||||||||||||||||
| Single Cell | 88,451 | 85,788 | 2,663 | 3 | 177,345 | 169,897 | 7,448 | 4 | |||||||||||||||||||||||||||||||||||||||
| Spatial | 42,301 | 36,397 | 5,904 | 16 | 83,208 | 67,644 | 15,564 | 23 | |||||||||||||||||||||||||||||||||||||||
| Total consumables revenue | 130,752 | 122,185 | 8,567 | 7 | 260,553 | 237,541 | 23,012 | 10 | |||||||||||||||||||||||||||||||||||||||
| Services | 10,681 | 8,475 | 2,206 | 26 | 19,514 | 16,127 | 3,387 | 21 | |||||||||||||||||||||||||||||||||||||||
| Products and services revenue | 149,094 | 145,157 | 3,937 | 3 | 298,990 | 282,980 | 16,010 | 6 | |||||||||||||||||||||||||||||||||||||||
| License and royalty revenue | 1,942 | 27,751 | (25,809) | (93) | 2,889 | 44,811 | (41,922) | (94) | |||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 151,036 | $ | 172,908 | $ | (21,872) | (13) | % | $ | 301,879 | $ | 327,791 | $ | (25,912) | (8) | % | |||||||||||||||||||||||||||||||
Products and Services Revenue
Products and services revenue increased $3.9 million, or 3%, to $149.1 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Consumables revenue increased $8.6 million, or 7%, to $130.8 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Instruments revenue decreased $6.8 million, or 47%, to $7.7 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Services revenue increased $2.2 million, or 26%, to $10.7 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.
Products and services revenue increased $16.0 million, or 6%, to $299.0 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Consumables revenue increased $23.0 million, or 10%, to $260.6 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Instruments revenue decreased $10.4 million, or 35%, to $18.9 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Services revenue increased $3.4 million, or 21%, to $19.5 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
License and Royalty Revenue
License and royalty revenue decreased $25.8 million, or 93%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The decrease was primarily due to one-time royalty revenue of $27.3 million recognized in the three months ended June 30, 2025 in connection with the settlement of our worldwide patent litigation with Bruker Corporation (“Bruker”), partially offset by $1.6 million of revenue recognized during the three months ended June 30, 2026 in connection with our patent litigation settlement with Takara Bio USA Holdings, Inc. (“Takara”).
License and royalty revenue decreased $41.9 million, or 94%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The decrease was primarily due to one-time royalty revenue of $44.1 million recognized in the six months ended June 30, 2025 in connection with our worldwide patent litigation settlements with Vizgen, Inc. (“Vizgen”) and Bruker, partially offset by $1.6 million of revenue recognized during the three months ended June 30, 2026 in connection with our patent litigation settlement with Takara.
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Excluding non-recurring license and royalty revenue related to patent litigation settlements in 2026 and 2025, we expect our revenues to moderately increase in 2026 as compared to 2025.
Cost of Products and Services Revenue, Gross Profit and Gross Margin
| Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||||||||||||||||
| Cost of products and services revenue | $ | 38,539 | $ | 47,824 | $ | (9,285) | (19) | % | $ | 83,204 | $ | 97,262 | $ | (14,058) | (14) | % | |||||||||||||||||||||||||||||||
| Gross profit | $ | 112,497 | $ | 125,084 | $ | (12,587) | (10) | % | $ | 218,675 | $ | 230,529 | $ | (11,854) | (5) | % | |||||||||||||||||||||||||||||||
| Gross margin | 74 | % | 72 | % | 72 | % | 70 | % | |||||||||||||||||||||||||||||||||||||||
Cost of products and services revenue decreased $9.3 million, or 19%, to $38.5 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The decrease was primarily driven by lower manufacturing costs of $3.3 million which included $2.6 million of tariff refunds, lower inventory write-downs of $3.0 million, lower warranty costs of $2.7 million, and lower royalty costs of $0.4 million. Gross margin increased to 74% for the three months ended June 30, 2026 as compared to 72% for the three months ended June 30, 2025. The increase was primarily due to lower manufacturing costs including tariff refunds, lower inventory write-downs, lower warranty costs, and changes in product mix, partially offset by a decrease in license and royalty revenue due to the non-recurring benefit in license and royalty revenue recorded in the three months ended June 30, 2025.
Cost of products and services revenue decreased $14.1 million, or 14%, to $83.2 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The decrease was primarily driven by lower inventory write-downs of $12.2 million and lower warranty costs of $5.2 million, partially offset by higher manufacturing costs of $2.8 million and higher royalty costs of $0.4 million. Gross margin increased to 72% for the six months ended June 30, 2026 as compared to 70% for the six months ended June 30, 2025. The increase was primarily due to lower inventory write-downs, lower warranty costs and changes in product mix, partially offset by a decrease in license and royalty revenue due to the non-recurring benefit in license and royalty revenue recorded in the six months ended June 30, 2025.
We expect our gross margin to fluctuate throughout the remainder of 2026 due to a number of factors including changes in product mix.
Operating Expenses
| Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||||||||||||||||
| Research and development | $ | 56,791 | $ | 61,224 | $ | (4,433) | (7) | % | $ | 113,638 | $ | 125,469 | $ | (11,831) | (9) | % | |||||||||||||||||||||||||||||||
| Selling, general and administrative | 78,661 | 74,434 | 4,227 | 6 | 145,038 | 164,162 | (19,124) | (12) | |||||||||||||||||||||||||||||||||||||||
| Gain on settlement | (3,400) | (40,700) | (37,300) | N/A | (3,400) | (49,900) | (46,500) | N/A | |||||||||||||||||||||||||||||||||||||||
| Total operating expenses | $ | 132,052 | $ | 94,958 | $ | 37,094 | 39 | % | $ | 255,276 | $ | 239,731 | $ | 15,545 | 6 | % | |||||||||||||||||||||||||||||||
Research and development expenses decreased $4.4 million, or 7%, to $56.8 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The decrease was primarily driven by an $8.3 million decrease in personnel expenses, including a $2.1 million decrease in stock-based compensation expense, partially offset by a $4.2 million increase in laboratory materials and supplies.
Research and development expenses decreased $11.8 million, or 9%, to $113.6 million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The decrease was primarily driven by a $13.6 million decrease in personnel expenses, including a $5.5 million decrease in stock-based compensation expense and a $2.3 million decrease in facilities and information technology costs, partially offset by a $3.8 million increase in laboratory materials and supplies.
Selling, general and administrative expenses increased $4.2 million, or 6%, to $78.7 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The increase was primarily driven by a $1.8 million increase in travel and entertainment expenses, $1.5 million increase in outside legal expenses, $1.2 million increase in marketing expenses and a $0.3 million increase in facilities costs partially offset by a $0.7 million decrease in personnel expenses.
Selling, general and administrative expenses decreased $19.1 million, or 12%, to $145.0 million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The decrease was primarily driven by a $10.7 million
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decrease in outside legal expenses, a $5.0 million decrease in personnel expenses primarily due to a $3.9 million decrease in stock-based compensation expense, a $1.5 million decrease in professional services expenses and a $2.0 million decrease in facilities and information technology costs.
Gain on settlement decreased in the three and six months ended June 30, 2026 due to non-recurring gains on settlements of $40.7 million recorded in the three months ended June 30, 2025 and $49.9 million recorded in the six months ended June 30, 2025, as part of our patent litigation settlements with Bruker and Vizgen in 2025. In both periods, the decrease was partially offset by a $3.4 million gain on settlement recorded in the three months ended June 30, 2026 as part of our patent litigation settlement with Takara.
Excluding gains on settlements recorded in 2026 and 2025, we expect our operating expenses to modestly decrease in 2026 compared to the prior year as a result of our ongoing efforts to manage our spend.
Total Other Income
| Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||||||||||||||||
| Interest income | $ | 4,797 | $ | 4,271 | $ | 526 | 12 | % | $ | 9,811 | $ | 7,957 | $ | 1,854 | 23 | % | |||||||||||||||||||||||||||||||
| Interest expense | — | (3) | 3 | (100) | — | (3) | 3 | (100) | |||||||||||||||||||||||||||||||||||||||
| Other income (expense), net | (3,887) | 2,603 | (6,490) | (249) | (4,702) | 4,739 | (9,441) | (199) | |||||||||||||||||||||||||||||||||||||||
| Total other income | $ | 910 | $ | 6,871 | $ | (5,961) | (87) | % | $ | 5,109 | $ | 12,693 | $ | (7,584) | (60) | % | |||||||||||||||||||||||||||||||
Interest income increased $0.5 million, or 12%, to $4.8 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to higher money market fund balances. Interest income increased $1.9 million or 23%, to $9.8 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The increase was primarily due to higher money market fund balances and interest income applicable to legal settlement payments we received from Bruker during the six months ended June 30, 2026.
Other income (expense), net decreased $6.5 million to $3.9 million other expense, net for the three months ended June 30, 2026 as compared to $2.6 million other income, net, for the three months ended June 30, 2025. Other income (expense), net decreased $9.4 million to $4.7 million other expense, net for the six months ended June 30, 2026 as compared to $4.7 million other income, net, for the six months ended June 30, 2025. The decrease in both periods was primarily driven by a $3.5 million loss resulting from the change in fair value of contingent consideration and increases in net losses from foreign currency remeasurements of $2.6 million and $4.9 million for the three and six month periods, respectively.
We expect other income (expense), net, to fluctuate, potentially significantly, from quarter to quarter due to potential changes in the fair value of contingent consideration and fluctuations in foreign currency exchange rates.
Provision for (Benefit from) Income Taxes
Our benefit from income taxes was $0.7 million and $0.1 million for the three and six months ended June 30, 2026 and our provision for income taxes was $2.5 million and $3.3 million for the three and six months ended June 30, 2025. The change in both periods was primarily driven by the income tax benefit of $1.4 million recognized in the second quarter of 2026 from a reduction in the valuation allowance recorded against our net deferred tax assets. This release was due to deferred tax liabilities recognized in connection with the PTG acquisition, which can be used as a source of income to realize certain domestic deferred tax assets. Additionally, the comparable 2025 periods included federal and state income tax expense of $1.2 million related to Internal Revenue Code Section 174 capitalization. This expense did not recur in 2026 following the enactment of an act to provide for reconciliation pursuant to title II of H. Con. Res. 14 on July 4, 2025, which restored the immediate deductibility of U.S. research and experimental expenditures, thereby lowering U.S. taxable income in the current year periods.
Liquidity and Capital Resources
As of June 30, 2026, we had approximately $552.0 million in cash and cash equivalents and marketable securities, which increased by $28.6 million as compared to December 31, 2025, and were primarily held in U.S. banks. We have generated losses from operations since inception as reflected in our accumulated deficit of $1.5 billion.
We currently anticipate making aggregate capital expenditures of between approximately $10 million and $15 million during the next 12 months, which we expect to include, among other expenditures, equipment to be used for manufacturing and research and development.
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Our future capital requirements will depend on many factors including our revenue growth rate, research and development efforts, investments in or acquisitions of complementary or enhancing technologies or businesses, the timing and extent of additional capital expenditures to invest in existing and new facilities, the expansion of sales and marketing and international activities, legal costs associated with defending and enforcing intellectual property rights and the introduction of new products and new versions of existing products.
We take a long-term view in growing and scaling our business and we regularly review acquisition and investment opportunities, and we may in the future enter into arrangements to acquire or invest in businesses, services and technologies, including intellectual property rights, and any such acquisitions or investments could significantly increase our capital needs. We regularly review opportunities that meet our long-term growth objectives.
In 2025, we completed the asset acquisition of Scale Biosciences, Inc. (“Scale Bio”) and recorded contingent consideration related to the potential achievement of certain milestones. In the first quarter of 2026, we made a milestone payment consisting of $10.0 million in cash and $8.7 million in shares (396,584 shares) of our Class A common stock in connection with a technology transfer completed in the third quarter of 2025. In the future, we may pay up to $30.0 million of contingent consideration if certain milestones are met.
In 2023, we signed an agreement to acquire certain intangible and other assets from Centrillion Technologies, Inc. and Centrillion Technology Holdings Corp. Under the agreement, we are obligated to pay for certain technology development milestones if they are met. As of June 30, 2026, we have paid $41.3 million relating to the completion of development milestones. Up to $15.0 million of cash consideration is due if an additional technology development milestone is met.
We expect to continue to incur operating losses for the foreseeable future. We believe that our existing cash and cash equivalents and cash generated from sales of our products will be sufficient to meet our anticipated cash needs for at least the next 12 months. However, our liquidity assumptions may prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect. The adequacy of our cash resources depends on many assumptions, including primarily our assumptions with respect to product sales and expenses, as well as the other factors set forth in "Risk Factors" under the heading "Risks related to our business and industry” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
We intend to continue to evaluate market conditions and may in the future pursue additional sources of funding, such as mortgage or other financing, to further enhance our financial position and to execute our business strategy. In addition, should prevailing economic, financial, business or other factors adversely affect our ability to meet our operating cash requirements, we could be required to obtain funding through traditional or alternative sources of financing. We cannot be certain that additional funds would be available to us on favorable terms when required, or at all.
Cash Flow Analysis
The following table summarizes our cash flows for the periods indicated:
| Six Months Ended June 30, | |||||||||||
(in thousands) | 2026 | 2025 | |||||||||
| Net cash provided by (used in): | |||||||||||
Operating activities | $ | 43,094 | $ | 52,059 | |||||||
Investing activities | (9,046) | (2,832) | |||||||||
Financing activities | (5,401) | 3,944 | |||||||||
| Effect of exchange rates changes on cash and cash equivalents | (101) | 474 | |||||||||
| Net increase in cash and cash equivalents | $ | 28,546 | $ | 53,645 | |||||||
Operating activities
The net cash provided by operating activities of $43.1 million for the six months ended June 30, 2026 consisted of a net loss of $31.4 million, non-cash adjustments of $73.3 million and a net cash inflow from changes in operating assets and liabilities of $1.2 million. The non-cash adjustments of $73.3 million primarily consisted of stock-based compensation expense of $48.3 million, depreciation and amortization of $19.6 million, non-cash lease expense of $4.0 million and fair value adjustments on contingent consideration of $3.5 million, partially offset by a $1.4 million of tax benefit recognized in relation to the acquisition of the PTG business. The net cash inflow from operating assets and liabilities was primarily driven by cash inflows associated with a decrease in other receivables of $32.1 million primarily related to the Bruker settlement, an increase in accounts payable of $8.1 million, a decrease in inventory of $5.7 million, and a decrease in prepaid and other current assets of $3.2 million. The net cash inflow from operating assets and liabilities was partially offset by cash outflows associated with a decrease in
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accrued compensation and other related benefits of $17.8 million, an increase in other noncurrent assets of $11.9 million, a decrease in accrued expenses and other current liabilities of $9.7 million, a decrease in the operating lease liability of $5.8 million, a decrease in deferred revenue of $1.5 million, a decrease in accrued contingent consideration of $0.6 million and an increase in accounts receivable of $0.5 million due to timing of collections.
The net cash provided by operating activities of $52.1 million for the six months ended June 30, 2025 consisted of net income of $0.2 million, non-cash adjustments of $77.3 million and a net cash outflow from changes in operating assets and liabilities of $25.4 million. The non-cash adjustments of $77.3 million consisted of stock-based compensation expense of $58.6 million, depreciation and amortization of $15.8 million and non-cash lease expense of $3.6 million. The net cash outflow from operating assets and liabilities was primarily driven by an increase in other receivables of $68.5 million primarily related to the Bruker settlement, a decrease in accrued compensation and other related benefits of $7.8 million, a decrease in the operating lease liability of $5.0 million and a decrease in accrued expenses and other current liabilities of $2.9 million. The net cash outflow from operating assets and liabilities was partially offset by cash inflows associated with a decrease in accounts receivable of $37.9 million, a decrease in inventory of $15.1 million, an increase in accounts payable of $3.5 million and a decrease in other noncurrent assets of $2.4 million.
Investing activities
The net cash used in investing activities of $9.0 million in the six months ended June 30, 2026 was due to the purchase of marketable securities of $49.3 million, net cash paid for the business combination of $6.1 million and cash paid for purchases of property and equipment of $3.2 million, partially offset by maturities of marketable securities of $50.0 million.
The net cash used in investing activities of $2.8 million in the six months ended June 30, 2025 was due to the purchase of marketable securities of $49.4 million and purchases of property and equipment of $3.5 million, partially offset by maturities of marketable securities of $50.0 million.
Financing activities
The net cash used in financing activities of $5.4 million in the six months ended June 30, 2026 was due to the payment of contingent consideration of $8.7 million related to the Scale Bio acquisition, partially offset by proceeds related to the issuance of common stock from the exercise of stock options.
The net cash provided by financing activities of $3.9 million in the six months ended June 30, 2025 was primarily from proceeds related to the issuance of common stock from the exercise of stock options and employee stock purchase plan.
Critical Accounting Estimates
Critical accounting estimates are those estimates made in accordance with United States generally accepted accounting principles (“GAAP”) that involve a significant level of judgments and estimates that can affect the results of operations and financial position of the Company. For further discussion of our critical accounting estimates, see our critical accounting policies and estimates disclosed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our most recent Annual Report on Form 10-K filed with the SEC on February 12, 2026. There have been no significant changes in estimates in the quarter ended June 30, 2026 that would require disclosure nor have there been any changes to our policies.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
For financial market risks related to changes in interest rates and foreign currency exchange rates, reference is made to Item 7A “Quantitative and Qualitative Disclosures about Market Risk” contained in Part II of our Annual Report. Our exposure to market risk has not changed materially since December 31, 2025.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this Quarterly Report. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to
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our management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2026.
Changes in Internal Control over Financial Reporting
There was no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) under the Exchange Act) during the three months ended June 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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10x Genomics, Inc.
PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
We are regularly subject to lawsuits, claims, arbitration proceedings, administrative actions and other legal and regulatory proceedings involving intellectual property disputes, commercial disputes, competition and other matters, and we may become subject to additional types of lawsuits, claims, arbitration proceedings, administrative actions, government investigations and legal and regulatory proceedings in the future and as our business grows, including proceedings related to product liability or our acquisitions, securities issuances or our business practices, including public disclosures about our business. Our success depends in part on our non-infringement of the patents or proprietary rights of third parties. In the past, third parties have asserted and may in the future assert that we are employing their proprietary technology without authorization. We have been involved in multiple patent litigation matters and other proceedings in the past and we expect that given the litigious history of our industry and the high profile of operating as a public company, third parties may claim that our products infringe their intellectual property rights. We have also initiated litigation to defend our technology including technology developed through our significant investments in research and development. It is our general policy not to out-license our patents but to protect our sole right to own and practice them. There are inherent uncertainties in these legal matters, some of which are beyond management’s control, making the ultimate outcomes difficult to predict.
See Note 5, Commitments and Contingencies, to the unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for information regarding certain legal proceedings in which we are involved.
Item 1A. Risk Factors.
There have been no material changes to our risk factors that we believe are material to our business, results of operations and financial condition from the risk factors previously disclosed in our Annual Report, and any documents incorporated by reference therein, which are accessible on the SEC’s website at www.sec.gov.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 5. Other Information.
None of our directors or officers adopted , modified or terminated
On May 14, 2026 , Sarah Teichmann , a member of our Board of Directors , adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 7,551 shares of the Company’s common stock, subject to certain conditions. The expiration date of the trading arrangement is August 13, 2027 .
On June 10, 2026 , Adam Taich , our Chief Financial Officer , adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 58,267 shares of the Company’s common stock, subject to certain conditions. The expiration date of the trading arrangement is December 31, 2026 .
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Item 6. Exhibits.
Exhibit Number | Incorporated by Reference | ||||||||||||||||||||||||||||||||||
Exhibit Title | Form | File No. | Exhibit | Filing Date | Filed Herewith | ||||||||||||||||||||||||||||||
| 3.1 | Amended and Restated Certificate of Incorporation of the Registrant. | 8-K | 001-39035 | 3.1 | 9/16/2019 | ||||||||||||||||||||||||||||||
| 3.2 | Amended and Restated Bylaws of the Registrant. | 10-Q | 001-39035 | 3.2 | 11/3/2022 | ||||||||||||||||||||||||||||||
| 4.1 | Form of Stock Certificate for Class A common stock of the Registrant. | S-1 | 333-233361 | 4.2 | 8/19/2019 | ||||||||||||||||||||||||||||||
| 31.1 | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||||||||||||||||
| 31.2 | Certification of Principal Financial and Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||||||||||||||||
32.1* | Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||||||||||||||||
32.2* | Certification of Principal Financial and Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document. | ||||||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||||||||||||||||||||||||||
| 104 | Cover Page Interactive Data File (the Cover Page Interactive Data File does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | ||||||||||||||||||||||||||||||||||
* This certification is deemed not filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
10x Genomics, Inc. | ||||||||
| Date: August 6, 2026 | By: | /s/ Serge Saxonov | ||||||
Serge Saxonov Chief Executive Officer and Director (Principal Executive Officer) | ||||||||
| Date: August 6, 2026 | By: | /s/ Adam S. Taich | ||||||
| Adam S. Taich Chief Financial Officer (Principal Financial and Accounting Officer) | ||||||||
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