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

PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, covering balance sheets, operations, cash flows, and detailed notes Condensed Consolidated Balance Sheets Total assets increased to $979.97 million as of June 30, 2025, driven by cash and receivables, with equity rising | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :----- | :-------------------------- | :------------------------------ | | Total Assets | $979.97 | $918.64 | | Total Liabilities | $206.69 | $208.50 | | Total Stockholders' Equity | $773.28 | $710.13 | - Key Current Asset Changes (June 30, 2025 vs. Dec 31, 2024): - Cash and cash equivalents: Increased from $344.07 million to $397.71 million[18] - Accounts receivable, net: Decreased from $87.86 million to $49.98 million[18] - Other receivables: Increased significantly from $606 thousand to $69.09 million[18] - Inventory: Decreased from $83.11 million to $68.97 million[18] Condensed Consolidated Statements of Operations The company reported $34.5 million net income for Q2 2025, a significant improvement from prior year loss, driven by license revenue and settlement gain | Period | June 30, 2025 (3 months, in thousands) | June 30, 2024 (3 months, in thousands) | June 30, 2025 (6 months, in thousands) | June 30, 2024 (6 months, in thousands) | | :----- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Net Income (Loss) | $34,538 | $(37,897) | $180 | $(97,846) | | Revenue Type | 3 Months Ended June 30, 2025 (in millions) | 3 Months Ended June 30, 2024 (in millions) | 6 Months Ended June 30, 2025 (in millions) | 6 Months Ended June 30, 2024 (in millions) | | :------------- | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Products and services revenue | $145.16 | $152.99 | $282.98 | $293.99 | | License and royalty revenue | $27.75 | $0.11 | $44.81 | $0.12 | | Total Revenue | $172.91 | $153.10 | $327.79 | $294.11 | - Operating Expenses and Gain on Settlement (3 months ended June 30, 2025 vs 2024): - Research and development: $61.22 million (2025) vs $62.92 million (2024) - Decrease of 3%[20] - Selling, general and administrative: $74.43 million (2025) vs $83.04 million (2024) - Decrease of 10%[20] - Gain on settlement: $(40.70) million (2025) vs $0 thousand (2024)[20] Condensed Consolidated Statements of Comprehensive Income (Loss) Comprehensive income for Q2 2025 was $35.1 million, a significant improvement from prior year's loss, reflecting reported net income | Period | June 30, 2025 (3 months, in thousands) | June 30, 2024 (3 months, in thousands) | June 30, 2025 (6 months, in thousands) | June 30, 2024 (6 months, in thousands) | | :----- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Net income (loss) | $34,538 | $(37,897) | $180 | $(97,846) | | Other comprehensive income (loss), net of tax | $587 | $26 | $713 | $(1) | | Comprehensive income (loss) | $35,125 | $(37,871) | $893 | $(97,847) | Condensed Consolidated Statements of Stockholders' Equity Total stockholders' equity increased to $773.3 million as of June 30, 2025, driven by net income and stock-based compensation | Date | Total Stockholders' Equity (in millions) | | :--- | :------------------------------------- | | June 30, 2025 | $773.28 | | December 31, 2024 | $710.13 | - Key Changes in Stockholders' Equity (Dec 31, 2024 to June 30, 2025): - Additional Paid-in Capital increased by $62.25 million ($2.24 billion - $2.18 billion)[26] - Accumulated Deficit improved from $(1.47) billion to $(1.47) billion[26] - Net income for the period contributed $34.54 million[26] - Stock-based compensation contributed $58.31 million ($30.57 million + $27.74 million)[26] Condensed Consolidated Statements of Cash Flows Net cash from operating activities significantly improved to $52.1 million for H1 2025, compared to a prior year outflow | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------- | :------------------------------------------ | :------------------------------------------ | | Operating activities | $52,059 | $(8,229) | | Investing activities | $(2,832) | $22,579 | | Financing activities | $3,944 | $6,241 | | Effect of exchange rates changes on cash, cash equivalents | $474 | $(51) | | Net increase in cash and cash equivalents | $53,645 | $20,540 | | Date | Cash, cash equivalents at end of period (in millions) | | :--- | :-------------------------------------------------- | | June 30, 2025 | $397.71 | | June 30, 2024 | $379.82 | Notes to Condensed Consolidated Financial Statements These notes provide detailed explanations and disclosures for the condensed consolidated financial statements 1. Description of Business and Basis of Presentation 10x Genomics, Inc. is a life sciences technology company providing integrated research solutions, with financial statements unaudited and GAAP-compliant - Business Focus: Life sciences technology company building innovative products and solutions to interrogate, understand and master biological systems[30] - Product Portfolio: Includes Chromium instruments, Visium CytAssist, Xenium Analyzer ("Spatial instruments"), and proprietary microfluidic chips, slides, reagents, and other consumables. Software is bundled with products[30] 2. Summary of Significant Accounting Policies This section outlines the company's significant accounting policies, including revenue recognition, with no material changes during the period - Revenue Recognition: - Product sales: Recognized when control is transferred, generally upon shipment[34][38] - Instrument service agreements (extended warranties): Recognized ratably over the term[34][38] - License revenue: Recognized when intellectual property license is delivered[34][38] - Royalty revenue: Recognized when underlying sales occur[34][38] - Segment Information: The Company operates as a single operating segment[39] - Recently Issued Accounting Pronouncements: - ASU No. 2023-09 (Income Taxes): Effective fiscal year 2025, requires disaggregation of income tax information[41] - ASU 2024-03 (Disaggregation of Income Statement Expenses): Effective fiscal years