Summary of 10X Genomics Conference Call Company Overview - **Company**: 10X Genomics (NasdaqGS:TXG) - **Industry**: Biotechnology, specifically focusing on single-cell analysis and spatial omics Key Points and Arguments Company Position and Strategy - 10X Genomics is recognized as a market leader in single-cell analysis and spatial omics, with a strong emphasis on innovation and continuous improvement [1][2] - The company underwent significant restructuring in the past year, which has positioned it well to navigate a challenging macro environment [6][7] - The executive team changes and commercial restructuring have allowed for better responsiveness to market conditions [15][16] Market Environment - The current market environment is described as "choppy and uncertain," but there are signs of improvement in customer sentiment compared to earlier in the year [12][13] - Funding uncertainties, particularly related to NIH funding and multi-year funding, continue to pose challenges [11][12] Commercial Performance - The new commercial organization is performing well, with strong metrics in funnel management and opportunity generation despite macroeconomic challenges [18][19] - The company has seen growth in Chromium reaction and spatial consumables, indicating positive underlying business fundamentals [8][9] Pricing Strategy - 10X Genomics is actively working on pricing strategies to drive volume, particularly in single-cell consumables, by introducing lower price points and new product configurations [22][23] - The company anticipates that pricing pressures will normalize over the next few quarters, allowing for a better balance between pricing and volume [25][26] Competitive Landscape - The competitive landscape remains intense, but 10X Genomics believes it has maintained an advantage in product performance, quality, and customer satisfaction [44][45] - The company is sequencer agnostic, which enhances its competitive position as new sequencers enter the market [47][49] Future Opportunities - There is a growing interest in large-scale single-cell programs, particularly with the integration of AI in biological modeling, which could drive demand for 10X Genomics' products [30][32] - The company is open to partnerships with tech firms to leverage AI and enhance data analysis capabilities [37][38] Spatial Omics - Spatial technology is still in an earlier stage of development compared to single-cell technology, but it is expected to become increasingly important as the company improves its offerings [39][40] Financial Guidance - The company is cautious about providing financial guidance due to ongoing uncertainties in the market, but it remains optimistic about the underlying drivers of the business [54][59] Additional Important Insights - The company has made significant strides in product launches, including the recent introduction of the Flex assay, which is expected to enhance market performance [50][51] - There is a belief that substantial public investment in large-scale biological modeling could yield significant benefits for the industry [35][36]

10x Genomics, Inc. (NASDAQ:TXG) is one of the best digital health stocks to buy now. On October 29, 2025, 10x Genomics announced the launch of its next-generation Chromium Flex assay, designed to help researchers dramatically scale up single-cell experiments. The upgraded system introduces a 96-well plate format that supports up to 384 samples and processes as many as 100 million cells per week. It integrates with automated workflows, allowing scientists to multiplex large numbers of samples while minimiz ...

Core Insights - 10x Genomics, Inc. will participate in a fireside chat at the Wolfe Research Healthcare Conference 2025 on November 18, 2025, at 11:20 a.m. Eastern Time [1] - Interested parties can access a live webcast of the event on the company's website, which will be archived for at least 30 days [2] Company Overview - 10x Genomics is a life science technology company focused on products that enhance the understanding of biology and improve human health [3] - The company offers integrated research solutions, including instruments, consumables, and software for single cell and spatial biology, aiding researchers in comprehending biological systems [3] - Its products contribute to advancements in various fields such as oncology, immunology, and neuroscience, leading to significant discoveries in health and disease [3]

Core Insights - 10x Genomics reported third-quarter financial results that exceeded Wall Street expectations, leading to a 14.3% increase in share price [1][2] - The company projected fourth-quarter revenue between $154 million and $158 million, surpassing analysts' forecasts, indicating strong confidence in future performance [2] Financial Performance - For Q3, 10x Genomics generated revenue of $149 million, above the consensus estimate of $142.4 million [2] - The loss per share was $0.22, which was narrower than the anticipated loss of $0.28 [2] - The stock closed at $15.25, reflecting a 17.4% increase from the previous close [3] Market Reaction - The shares of 10x Genomics have shown extreme volatility, with 48 moves greater than 5% in the past year, indicating significant market impact from recent news [4] - The previous notable stock movement occurred 18 days prior, when the stock rose 6% after BofA Securities maintained a "Buy" rating while lowering the price target from $15.00 to $13.00 [5] Investment Performance - Year-to-date, 10x Genomics shares are up 7.5%, trading close to a 52-week high of $16.47 [6] - An investment of $1,000 in 10x Genomics shares five years ago would now be valued at $113.74 [6]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

Core Insights - 10x Genomics reported a revenue of $149 million for the quarter ended September 2025, reflecting a decrease of 1.8% year-over-year, while EPS improved to -$0.22 from -$0.30 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $142.39 million by 4.64%, and the EPS also surpassed the consensus estimate of -$0.27 by 18.52% [1] Revenue Breakdown - Services revenue was reported at $8.13 million, exceeding the average estimate of $7.86 million by analysts, marking a year-over-year increase of 27.1% [4] - Instruments revenue was $12 million, below the average estimate of $14.06 million, representing a significant decline of 37% year-over-year [4] - Chromium Instruments revenue was $4.93 million, slightly below the estimate of $5.36 million [4] - Consumables revenue from Chromium was reported at $92.52 million, surpassing the average estimate of $85.29 million [4] - Spatial Consumables revenue was $35.37 million, slightly above the average estimate of $35.06 million [4] - Total Consumables revenue reached $127.89 million, exceeding the average estimate of $120.35 million, with a year-over-year change of 1.3% [4] - Spatial Instruments revenue was reported at $7.07 million, below the average estimate of $8.71 million [4] Stock Performance - Over the past month, shares of 10x Genomics have returned +11.8%, significantly outperforming the Zacks S&P 500 composite, which saw a change of +1.3% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

分组1 - 10x Genomics reported a quarterly loss of $0.22 per share, better than the Zacks Consensus Estimate of a loss of $0.27, and an improvement from a loss of $0.30 per share a year ago, resulting in an earnings surprise of +18.52% [1] - The company achieved revenues of $149 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 4.64%, although this represents a decline from year-ago revenues of $151.65 million [2] - Over the last four quarters, 10x Genomics has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed the market, losing about 6.1% since the beginning of the year, while the S&P 500 has gained 15.6% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of -$0.23 for the coming quarter and -$0.52 for the current fiscal year, alongside revenues of $151.08 million and $620.66 million respectively [7] - The Medical Info Systems industry, to which 10x Genomics belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Financial Performance - Total revenue for Q3 2025 was $149.002 million, a decrease of 1.1% compared to $151.654 million in Q3 2024[20] - Products and services revenue for Q3 2025 was $148.019 million, down 2.5% from $151.559 million in Q3 2024[20] - Gross profit for Q3 2025 was $100.307 million, compared to $106.393 million in Q3 2024, reflecting a gross margin of 67.3%[20] - Net loss for Q3 2025 was $27.472 million, an improvement from a net loss of $35.753 million in Q3 2024[20] - Total revenue for the nine months ended September 30, 2025, was $476.793 million, compared to $445.764 million for the same period in 2024, representing a year-over-year increase of approximately 7%[66] - The company incurred net losses of $27.5 million and $27.3 million for the three and nine months ended September 30, 2025, respectively, with an accumulated deficit of $1.5 billion as of September 30, 2025[102] Operating Expenses - Operating expenses for Q3 2025 totaled $132.549 million, down from $147.878 million in Q3 2024, primarily due to reduced research and development costs[20] - Total operating expenses decreased by $15.3 million, or 10%, to $132.5 million for the three months ended September 30, 2025, compared to the same period in 2024[114] - Research and development expenses decreased by $9.0 million, or 14%, to $57.2 million for the three months ended September 30, 2025, compared to the same period in 2024[116] - Selling, general and administrative expenses decreased by $6.3 million, or 8%, to $75.4 million for the three months ended September 30, 2025, compared to the same period in 2024[118] Cash and Liquidity - Cash and cash equivalents increased to $432.508 million as of September 30, 2025, up from $344.067 million at the end of 2024[18] - The company reported a cash balance of $432.709 million at the end of the period, up from $398.159 million at the end of September 2024[27] - The net cash provided by operating activities was $95.3 million for the nine months ended September 30, 2025, despite a net loss of $27.3 million[136] - The company anticipates making capital expenditures of between $15 million and $20 million over the next 12 months[129] - The company expects to continue incurring operating losses for the foreseeable future but believes existing cash will meet anticipated cash needs for at least the next 12 months[133] Assets and Liabilities - Total assets reached $1.027 billion as of September 30, 2025, compared to $918.636 million at the end of 2024[18] - Total liabilities increased to $242.241 million as of September 30, 2025, from $208.502 million at the end of 2024[18] - Stockholders' equity rose to $785.120 million as of September 30, 2025, compared to $710.134 million at the end of 2024[18] - As of September 30, 2025, total available-for-sale securities amounted to $448.832 million, an increase from $371.347 million as of December 31, 2024[53] Acquisitions and Investments - The company completed an asset acquisition of Scale Biosciences, Inc. for a total consideration of $22.4 million, including $9.2 million in cash and $13.5 million in stock[46][47] - The Company recorded developed technology of $51.6 million and assembled workforce of $0.7 million in connection with the Scale acquisition during Q3 2025[59] - The company expects to pay an additional $20 million in connection with technology transfer and may pay up to $30 million in contingent consideration based on future milestones[46] - The contingent consideration related to the acquisition was recorded at a fair value of $22.4 million as of the acquisition date[146] - The acquisition of Scale Biosciences, Inc. was completed on August 11, 2025, involving the unregistered issuance of 1,099,992 shares of Class A common stock valued at $13.5 million[154] Revenue Breakdown - Revenue from instruments in Q3 2025 was $11.999 million, down from $19.056 million in Q3 2024, while consumables revenue increased to $127.892 million from $126.204 million in the same period[66] - The Company recognized $4.134 million in deferred revenue for the three months ended September 30, 2025, compared to $2.713 million for the same period in 2024[66] - The Company received an upfront payment of $26.0 million from Vizgen, which included a $9.2 million gain on settlement and $16.8 million of license and royalty revenue[67] - The Company entered into a settlement agreement with Bruker Corporation, receiving a total of $68.0 million in four quarterly installment payments starting Q3 2025, with $40.7 million recorded as a gain on settlement and $27.3 million as license and royalty revenue[70] Legal and Compliance - The company has ongoing litigation with Parse Biosciences, Inc. and Illumina, Inc., with no case schedules set as of October 2025[81] - The company is regularly subject to various legal proceedings, including intellectual property disputes, which may impact its operations[151] - There have been no material changes to the company's risk factors since the last Annual Report[153] - The company’s exposure to market risk related to interest rates and foreign currency exchange rates has not changed materially since December 31, 2024[147] Stock and Equity - The company reported a weighted-average share count of 125,502,291 for Q3 2025, compared to 120,733,030 for Q3 2024[20] - As of September 30, 2025, the number of shares of Class A common stock issued and outstanding was 116,460,674[82] - The Company issued 446,766 shares of Class A common stock under the Employee Stock Purchase Plan during the nine months ended September 30, 2025[95] - As of September 30, 2025, the Company had 8,466,033 outstanding restricted stock units with a weighted-average grant date fair value of $21.00 per share[86] - The Company granted 561,603 performance stock units in March 2025, with 50% of the target PSUs based on revenue CAGR and 50% based on relative Total Shareholder Return over specified performance periods[88] Miscellaneous - The company recognized $83.899 million in stock-based compensation expense for the nine months ended September 30, 2025, compared to $108.209 million in the prior year[27] - The total stock-based compensation expense for the nine months ended September 30, 2025, was $83.585 million, compared to $108.209 million for the same period in 2024[85] - The company’s cash paid for taxes was $1.935 million for the nine months ended September 30, 2025, down from $4.863 million in the prior year[27] - The company’s investing activities resulted in a net cash outflow of $11.633 million, compared to a net cash inflow of $18.961 million in the same period of 2024[27] - The Company recorded restructuring charges of $6.0 million in Q2 2025, primarily for severance-related costs, with total restructuring costs of $6.021 million for the nine months ended September 30, 2025[50] - The Company recorded a $1.1 million loss due to changes in the fair value of contingent consideration for the three and nine months ended September 30, 2025[72] - The company expects revenues to moderately increase sequentially in the fourth quarter of 2025[109] - The company expects to pay $20.0 million in connection with the technology transfer related to the Scale acquisition in the first quarter of 2026[130] - There were no material changes in internal control over financial reporting during the three months ended September 30, 2025[149] - The Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2025[148] - The contingent consideration will be remeasured each reporting period, with changes recognized within "other income" in the consolidated statement of operations[146]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $149 million, down 2% year-over-year but up 2% sequentially, excluding one-time license and royalty revenue from Q2 [4][16] - Total consumables revenue was $127.9 million, up 1%, while Chromium consumables revenue was $92.5 million, down 4% due to lower average selling prices [16] - Gross profit for Q3 was $100.3 million, with a gross margin decrease to 67% from 70% the prior year, primarily due to changes in product mix and higher inventory write-downs [18] - Operating loss for Q3 was $32.2 million, an improvement from a loss of $41.5 million in the same period last year [18] - The company ended the quarter with $482 million in cash, cash equivalents, and marketable securities, reflecting a $35 million increase from the prior quarter [19] Business Line Data and Key Metrics Changes - Spatial consumables revenue was $35.4 million, up 19%, driven by strong demand for Xenium consumables [16] - Total instrument revenue was $12 million, down 37%, with Chromium instrument revenue at $4.9 million, down 36% [16] - Services revenue increased by 29% to $8.1 million, primarily due to an increase in Xenium service plans [17] Market Data and Key Metrics Changes - Americas revenue was $79.9 million, down 9% year-over-year, while AMEA revenue was $41.6 million, up 10% [17] - APAC revenue was $27.5 million, up 6% year-over-year but down 14% sequentially due to a customer-driven pull forward in Q2 [17] Company Strategy and Development Direction - The company is focused on advancing its innovation roadmap and driving greater adoption of its products, with recent product launches and partnerships aimed at addressing data analysis bottlenecks [6][11] - The introduction of the next generation of Chromium Flex is expected to enhance scalability and support AI-driven initiatives [8] - The company sees a growing opportunity in translational research and clinical applications, as evidenced by collaborations with institutions like CLI-SEQ and the Weizmann Institute [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing funding pressures and policy uncertainty but expressed confidence in the company's ability to navigate these challenges and invest in long-term growth [6][19] - The outlook for Q4 anticipates revenue in the range of $154 million to $158 million, reflecting a 5% growth compared to Q3 at the midpoint [19] - Management emphasized the importance of maintaining flexibility in customer engagements amid cautious spending behavior [6][19] Other Important Information - The company is experiencing strong customer enthusiasm for its products, particularly Xenium, which is becoming the preferred solution for spatial biology needs [10] - The partnership with Anthropic aims to make data analysis more accessible through integration with Claude for life sciences [11] Q&A Session Summary Question: Can you walk through how much of the expected 5% sequential pickup in Q4 is anticipated from instruments versus consumables? - Management indicated a potential uptick on the instrument side in Q4, factoring in the government shutdown's impact on guidance [25][26] Question: What are the contributions from Xenium and Visium in spatial consumables? - Management noted a consistent increase in usage of the Xenium platform, with a trend towards more runs and price per run [37][39] Question: Can you elaborate on early adoption trends for Xenium Protein? - Initial feedback on Xenium Protein has been positive, with customers excited about the capability to measure both proteins and RNA from the same sample [51][52] Question: What impact is the transition from NextGen to GEM-X expected to have? - Management stated that the bulk of the effects on P&L from this transition have already been realized, with remaining impacts being marginal [70] Question: How is the company addressing the macroeconomic challenges in the pharma segment? - Management acknowledged challenges in the pharma segment but noted positive trends in large-scale experiments and translational applications [60][61]

Core Insights - 10x Genomics reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales of $149 million, reflecting a 1.7% year-on-year decline [1][7] - The company provided a positive revenue guidance for Q4 CY2025 at $156 million, which is 3.5% above analyst expectations [1][7] - The GAAP loss per share was $0.22, which was 22.3% better than analysts' consensus estimates of $0.28 [1][7] Company Overview - Founded in 2012, 10x Genomics develops instruments, consumables, and software for analyzing biological systems at single-cell resolution and spatial context [4] Revenue Growth - Over the last five years, 10x Genomics achieved a compounded annual growth rate of 19.6% in sales, outperforming the average healthcare company [5] - However, the company's annualized revenue growth over the last two years was only 4.2%, indicating a slowdown compared to its five-year trend [6] Quarterly Performance - The revenue for Q3 CY2025 was $149 million, surpassing analyst estimates of $142.4 million by 4.6% [7] - The operating margin improved to -21.6%, up from -27.4% in the same quarter last year [7] - The company anticipates a 5.5% year-on-year decline in sales for the next quarter [9] Segment Analysis - The Consumables segment, which represents recurring orders, has shown flat revenue growth over the last two years, lagging behind the overall sales performance of the company [8]