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]