10x Genomics(TXG) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Earnings Release Highlights Recent Business Updates and CEO Commentary CEO Serge Saxonov affirmed Q2 performance met expectations, highlighting business resilience, strategic acquisitions, new product launches, and key research partnerships - CEO Serge Saxonov expressed satisfaction with Q2 performance, emphasizing the company's business resilience in an uncertain financing environment and confidence in its technology and long-term opportunities[4] - The company acquired Scale Biosciences for $30 million in cash and stock consideration, aiming to strengthen its leadership in single-cell analysis through key technologies and expand application scope[9] - The company began shipping Visium HD 3' and HD cell segmentation products, expanding the Visium portfolio's capabilities in high-resolution, high-sensitivity analysis[9] - A partnership with the Genome Institute of Singapore launched the TISHUMAP program, utilizing Xenium and AI technology to discover novel biomarkers and therapeutic targets for cancer and inflammatory diseases[9] Second Quarter 2025 Financial Summary Q2 2025 total revenue reached $172.9 million (including $27.3 million settlement), with $145.6 million ex-settlement, gross margin at 72%, and a return to operating and net profitability Key Financial Data for Q2 2025 | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Y-o-Y Change | Notes | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 172.9 | 153.1 | +12.9% | Includes $27.3 million patent litigation settlement | | Revenue Excluding Settlement | 145.6 | 153.1 | -5% | Primarily due to lower instrument revenue, partially offset by ~$4.0 million early purchases by Chinese customers | | Gross Margin | 72% | 68% | +4% | 67% excluding license and royalty revenue | | Operating Expenses | 95.0 | 146.0 | -35% | Primarily due to $40.7 million litigation settlement gain | | Operating Income (Loss) | 30.1 | (41.7) | Turned Profitable | | | Net Income (Loss) | 34.5 | (37.9) | Turned Profitable | | | Cash, Cash Equivalents, and Marketable Securities | 447.3 | - | +20 million (Q-o-Q) | As of June 30, 2025, increased by $20 million from prior quarter | Third Quarter 2025 Revenue Guidance Q3 2025 revenue is projected between $140 million and $144 million, factoring in $4 million of early Chinese customer purchases Q3 2025 Revenue Guidance | Metric | Range (Million USD) | | :--- | :--- | | Q3 Revenue Guidance | 140 - 144 | | Impact from Early Chinese Customer Purchases | ~4.0 (already accounted for) | Company Information About 10x Genomics 10x Genomics is a life science technology company providing integrated single-cell and spatial biology solutions to accelerate research and human health - 10x Genomics is a life science technology company focused on accelerating biological research and human health development through single-cell and spatial biology products[12] - The company provides integrated research solutions, including instruments, consumables, and software, serving academia, translational researchers, and biopharmaceutical companies[12] - Its products have driven significant discoveries in oncology, immunology, neuroscience, and other fields, deepening the understanding of health and disease[12] Legal and Investor Information This section provides forward-looking statement disclaimers, directs investors to SEC filings for risk factors, and outlines official information dissemination channels - Forward-looking statements are protected by the Private Securities Litigation Reform Act of 1995, and actual results may differ materially from expectations due to various factors[13] - The company discloses material non-public information through SEC filings, its website, press releases, public conference calls, webcasts, and social media accounts to comply with Regulation FD disclosure obligations[14] - Investor and media contact emails are provided[15] Condensed Consolidated Financial Statements Condensed Consolidated Statements of Operations Q2 and H1 2025 statements show significant improvement, with 12.9% Q2 total revenue growth, a shift to operating and net profitability, driven by license revenue and settlement gains Condensed Consolidated Statements of Operations Summary (Thousands USD) | Metric | Q2 2025 | Q2 2024 | First Six Months 2025 | First Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Product and Service Revenue | 145,157 | 152,990 | 282,980 | 293,995 | | License and Royalty Revenue | 27,751 | 114 | 44,811 | 115 | | Total Revenue | 172,908 | 153,104 | 327,791 | 294,110 | | Gross Profit | 125,084 | 104,220 | 230,529 | 197,134 | | Operating Expenses | 94,958 | 145,957 | 239,731 | 300,369 | | Operating Income (Loss) | 30,126 | (41,737) | (9,202) | (103,235) | | Net Income (Loss) | 34,538 | (37,897) | 180 | (97,846) | | Basic Net Income (Loss) Per Share | 0.28 | (0.32) | — | (0.82) | Three Months Ended June 30, 2025 vs 2024 Q2 2025 Operating Results (Thousands USD) | Metric | Q2 2025 | Q2 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Product and Service Revenue | 145,157 | 152,990 | (7,833) | -5.1% | | License and Royalty Revenue | 27,751 | 114 | 27,637 | >100% | | Total Revenue | 172,908 | 153,104 | 19,804 | +12.9% | | Gross Profit | 125,084 | 104,220 | 20,864 | +20.0% | | Operating Expenses | 94,958 | 145,957 | (50,999) | -34.9% | | Operating Income (Loss) | 30,126 | (41,737) | 71,863 | Turned Profitable | | Net Income (Loss) | 34,538 | (37,897) | 72,435 | Turned Profitable | | Basic Net Income (Loss) Per Share | 0.28 | (0.32) | 0.60 | Turned Profitable | Six Months Ended June 30, 2025 vs 2024 First Six Months 2025 Operating Results (Thousands USD) | Metric | First Six Months 2025 | First Six Months 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Product and Service Revenue | 282,980 | 293,995 | (11,015) | -3.7% | | License and Royalty Revenue | 44,811 | 115 | 44,696 | >100% | | Total Revenue | 327,791 | 294,110 | 33,681 | +11.4% | | Gross Profit | 230,529 | 197,134 | 33,395 | +16.9% | | Operating Expenses | 239,731 | 300,369 | (60,638) | -20.2% | | Operating Income (Loss) | (9,202) | (103,235) | 94,033 | Loss Narrowed | | Net Income (Loss) | 180 | (97,846) | 98,026 | Turned Profitable | | Basic Net Income (Loss) Per Share | — | (0.82) | 0.82 | Turned Profitable | Revenue Breakdown by Source and Geography Q2 2025 Revenue by Source (Thousands USD) | Revenue Source | Q2 2025 | Q2 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Instrument Revenue | | | | | | Chromium | 5,727 | 8,792 | (3,065) | -34.9% | | Spatial | 8,770 | 15,060 | (6,290) | -41.8% | | Total Instrument Revenue | 14,497 | 23,852 | (9,355) | -39.2% | | Consumables Revenue | | | | | | Chromium | 85,788 | 94,108 | (8,320) | -8.8% | | Spatial | 36,397 | 29,254 | 7,143 | +24.4% | | Total Consumables Revenue | 122,185 | 123,362 | (1,177) | -1.0% | | Service Revenue | 8,475 | 5,776 | 2,699 | +46.7% | | Product and Service Revenue | 145,157 | 152,990 | (7,833) | -5.1% | | License and Royalty Revenue | 27,751 | 114 | 27,637 | >100% | | Total Revenue | 172,908 | 153,104 | 19,804 | +12.9% | Q2 2025 Revenue by Geography (Thousands USD) | Geography | Q2 2025 | Q2 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Americas | | | | | | United States | 103,491 | 89,672 | 13,819 | +15.4% | | Americas (Excluding U.S.) | 2,667 | 3,419 | (752) | -22.0% | | Total Americas | 106,158 | 93,091 | 13,067 | +14.0% | | Europe, Middle East, and Africa | 34,734 | 37,362 | (2,628) | -7.0% | | Asia Pacific | | | | | | China | 23,170 | 13,738 | 9,432 | +68.7% | | Asia Pacific (Excluding China) | 8,846 | 8,913 | (67) | -0.8% | | Total Asia Pacific | 32,016 | 22,651 | 9,365 | +41.3% | | Total Revenue | 172,908 | 153,104 | 19,804 | +12.9% | Stock-Based Compensation Expense Details Stock-Based Compensation Expense (Thousands USD) | Category | Q2 2025 | Q2 2024 | First Six Months 2025 | First Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Cost of Revenue | 1,989 | 2,247 | 4,470 | 4,280 | | Research and Development Expenses | 12,613 | 17,862 | 26,719 | 34,750 | | Selling, General and Administrative Expenses | 12,643 | 18,383 | 27,132 | 35,591 | | Total Stock-Based Compensation Expense | 27,245 | 38,492 | 58,321 | 74,621 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets grew to $979.97 million, with $447.3 million in cash and marketable securities, reflecting an improved financial position Condensed Consolidated Balance Sheets Summary (Thousands USD) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and Cash Equivalents | 397,712 | 344,067 | 53,645 | | Marketable Securities | 49,549 | 49,335 | 214 | | Accounts Receivable, Net | 49,977 | 87,862 | (37,885) | | Inventory | 68,968 | 83,107 | (14,139) | | Total Current Assets | 655,661 | 584,387 | 71,274 | | Total Assets | 979,970 | 918,636 | 61,334 | | Liabilities | | | | | Accounts Payable | 15,938 | 12,909 | 3,029 | | Deferred Revenue (Current) | 21,449 | 20,658 | 791 | | Total Current Liabilities | 112,221 | 117,633 | (5,412) | | Total Liabilities | 206,691 | 208,502 | (1,811) | | Stockholders' Equity | | | | | Accumulated Deficit | (1,466,867) | (1,467,047) | 180 | | Total Stockholders' Equity | 773,279 | 710,134 | 63,145 | | Total Liabilities and Stockholders' Equity | 979,970 | 918,636 | 61,334 |