10x Genomics(US:TXG)2025-11-06 22:36Financial 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]