Full Press Release Details
10x Genomics Reports First Quarter 2025 Financial Results
PLEASANTON, Calif. May 8, 2025 - 10x Genomics, Inc. (Nasdaq TXG), a leader in single cell and spatial biology, today reported financial results for the first quarter ended March 31, 2025.
Revenue was $154.9 million for the first quarter. Excluding $16.8 million related to a patent litigation settlement, revenue was $138.1 million, a 2% decrease from the corresponding period of 2024, primarily driven by a significant decrease in instrument revenue.
Ended the first quarter with cash and cash equivalents and marketable securities of $426.9 million. As a further effort to strengthen its balance sheet, the company recently implemented a plan to reduce operating expenses for 2025 by more than $50 million compared to prior year, including a reduction of approximately 8% of the company's global workforce.
Unveiled a roadmap of product launches across all three platforms at the 2025 AGBT General Meeting, further expanding mega-scale experimental capabilities within Chromium, adding new products to the Visium platform and extending into protein offerings to unlock multiomic insights within Xenium.
Announced a partnership with Arc Institute to accelerate the development of the Arc Virtual Cell Atlas, leveraging Chromium Flex technology to generate high quality single cell data at large scale.
"Customer enthusiasm and improving consumables trends reinforce our conviction in our technology and in the potential of Single Cell and Spatial," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "However, given uncertainty in U.S. academic and government research funding, we are temporarily moving to quarterly guidance until we see greater visibility return. During this period, we are taking actions to serve our customers and make focused investments, while prioritizing cost reduction initiatives to protect our strong balance sheet."
First Quarter 2025 Financial Results
Revenue was $154.9 million for the first quarter of 2025, a 10% increase from $141.0 million for the corresponding prior year period. Revenue includes license and royalty revenue of $16.8 million related to a worldwide patent litigation settlement.
Gross margin was 68% for the first quarter of 2025, as compared to 66% for the corresponding prior year period. The increase in gross margin was primarily due to higher license and royalty revenue and lower manufacturing costs, partially offset by an increase in inventory reserves. Excluding the impact of license and royalty revenue, gross margin was 64% for the first quarter of 2025.
Operating expenses were $144.8 million for the first quarter of 2025, a 6% decrease from $154.4 million for the corresponding prior year period. The decrease was primarily driven by a $9.2 million gain on settlement related to the litigation settlement.
Operating loss was $39.3 million for the first quarter of 2025, as compared to $61.5 million for the corresponding prior year period. Operating loss includes $31.1 million of stock-based compensation for the first quarter of 2025, as compared to $36.1 million of stock-based compensation for the corresponding prior year period.
Net loss was $34.4 million for the first quarter of 2025, as compared to a net loss of $59.9 million for the corresponding prior year period.
Cash and cash equivalents and marketable securities were $426.9 million as of March 31, 2025.
2025 Financial Guidance
As a result of recent U.S. policy changes, including their effects on academic and government research funding, 10x Genomics is withdrawing its previously issued full year revenue guidance. 10x Genomics is implementing guidance for the second quarter of 2025 and expects revenue to be in the range of $138 million to $142 million, representing 1% growth sequentially at the midpoint, excluding the license and royalty revenue from the settlement.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the first quarter 2025 financial results, business developments and outlook after market close on Thursday, May 8, 2025 at 1 30 PM Pacific Time 4 30 PM Eastern Time. A webcast of the conference call can be accessed at http investors.10xgenomics.com. The webcast will be archived and available for replay at least 45 days after the event.
10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world's understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn, X, Facebook, Bluesky or YouTube.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the safe harbor created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as may, might, will, should, expect, plan, anticipate, could, intend, target, project, contemplate, believe, see, estimate, predict, potential, would, likely, seek or continue or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.'s partnerships, plans, positioning, product launches, organization, goals, opportunities, potential, specifications, costs, enthusiasm, trends and adoption of 10x Genomics, Inc.'s products and services, expected performance advantages and benefits of using 10x Genomics, Inc.'s products and services and 10x Genomics, Inc.'s financial performance and results of operations, including expectations regarding revenue and guidance as well as government policy and academic and government research funding. These statements are based on management's current expectations, forecasts, beliefs, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such statements should not be relied upon as representing 10x Genomics, Inc.'s views as of any date subsequent to the date of this press release. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in 10x Genomics' expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material risks and uncertainties that could affect 10x Genomics, Inc.'s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in the company's most recently-filed 10-K for the fiscal year ended December 31, 2024 and the company's 10-Q for the quarter ended March 31, 2025 to be filed with the Securities and Exchange Commission (SEC) and elsewhere in the documents 10x Genomics, Inc. files with the SEC from time to time.
Disclosure Information
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Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Products and services revenue (1) | $ | 137,823 | $ | 141,005 | |||||||
| License and royalty revenue (1) | 17,060 | 1 | |||||||||
| Revenue | 154,883 | 141,006 | |||||||||
| Cost of products and services revenue (2) | 49,438 | 48,092 | |||||||||
| Gross profit | 105,445 | 92,914 | |||||||||
| Operating expenses | |||||||||||
| Research and development (2) | 64,245 | 68,638 | |||||||||
| Selling, general and administrative (2) | 89,728 | 85,774 | |||||||||
| Gain on settlement | (9,200) | - | |||||||||
| Total operating expenses | 144,773 | 154,412 | |||||||||
| Loss from operations | (39,328) | (61,498) | |||||||||
| Other income (expense) | |||||||||||
| Interest income | 3,686 | 4,736 | |||||||||
| Interest expense | - | (1) | |||||||||
| Other income (expense), net | 2,136 | (1,040) | |||||||||
| Total other income | 5,822 | 3,695 | |||||||||
| Loss before provision for income taxes | (33,506) | (57,803) | |||||||||
| Provision for income taxes | 852 | 2,146 | |||||||||
| Net loss | $ | (34,358) | $ | (59,949) | |||||||
| Net loss per share, basic and diluted | $ | (0.28) | $ | (0.50) | |||||||
| Weighted-average shares used to compute net loss per share, basic and diluted | 122,606,091 | 119,394,180 |
(1)The following table represents revenue by source for the periods indicated (in thousands). Spatial products includes the Company's Visium and Xenium products
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Instruments | |||||||||||
| Chromium | $ | 5,913 | $ | 7,850 | |||||||
| Spatial | $ | 8,902 | 17,603 | ||||||||
| Total instruments revenue | 14,815 | 25,453 | |||||||||
| Consumables | |||||||||||
| Chromium | 84,109 | 83,927 | |||||||||
| Spatial | 31,247 | 26,408 | |||||||||
| Total consumables revenue | 115,356 | 110,335 | |||||||||
| Services | 7,652 | 5,217 | |||||||||
| Products and services revenue | 137,823 | 141,005 | |||||||||
| License and royalty revenue | 17,060 | 1 | |||||||||
| Total revenue | $ | 154,883 | $ | 141,006 |
The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands)
| Three Months Ended March 31, | ||||||||||||
| 2025 | 2024 | |||||||||||
| Americas | ||||||||||||
| United States * | $ | 86,818 | $ | 75,637 | ||||||||
| Americas (excluding United States) | 3,752 | 3,993 | ||||||||||
| Total Americas | 90,570 | 79,630 | ||||||||||
| Europe, Middle East and Africa | 31,895 | 34,721 | ||||||||||
| Asia-Pacific | ||||||||||||
| China | 16,883 | 13,924 | ||||||||||
| Asia-Pacific (excluding China) | 15,535 | 12,731 | ||||||||||
| Total Asia-Pacific | 32,418 | 26,655 | ||||||||||
| Total revenue | $ | 154,883 | $ | 141,006 |
* Includes license and royalty revenue.
(2)Includes stock-based compensation expense as follows
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Cost of revenue | $ | 2,481 | $ | 2,033 | |||||||
| Research and development | 14,106 | 16,888 | |||||||||
| Selling, general and administrative | 14,489 | 17,208 | |||||||||
| Total stock-based compensation expense | $ | 31,076 | $ | 36,129 |
Condensed Consolidated Balance Sheets
| March 31, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 377,061 | $ | 344,067 | |||
| Marketable securities | 49,844 | 49,335 | |||||
| Accounts receivable, net | 52,549 | 87,862 | |||||
| Inventory | 74,710 | 83,107 | |||||
| Prepaid expenses and other current assets | 25,566 | 20,016 | |||||
| Total current assets | 579,730 | 584,387 | |||||
| Property and equipment, net | 246,087 | 252,648 | |||||
| Operating lease right-of-use assets | 55,577 | 57,290 | |||||
| Goodwill | 4,511 | 4,511 | |||||
| Intangible assets, net | 15,192 | 15,671 | |||||
| Other noncurrent assets | 2,296 | 4,129 | |||||
| Total assets | $ | 903,393 | $ | 918,636 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 10,068 | $ | 12,909 | |||
| Accrued compensation and related benefits | 21,957 | 33,615 | |||||
| Accrued expenses and other current liabilities | 45,483 | 41,165 | |||||
| Deferred revenue | 20,949 | 20,658 | |||||
| Operating lease liabilities | 9,443 | 9,286 | |||||
| Total current liabilities | 107,900 | 117,633 | |||||
| Operating lease liabilities, noncurrent | 70,631 | 73,327 | |||||
| Deferred revenue, noncurrent | 12,569 | 12,513 | |||||
| Other noncurrent liabilities | 5,398 | 5,029 | |||||
| Total liabilities | 196,498 | 208,502 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity | |||||||
| Preferred stock | - | - | |||||
| Common stock | 2 | 2 | |||||
| Additional paid-in capital | 2,208,665 | 2,177,672 | |||||
| Accumulated deficit | (1,501,405) | (1,467,047) | |||||
| Accumulated other comprehensive loss | (367) | (493) | |||||
| Total stockholders' equity | 706,895 | 710,134 | |||||
| Total liabilities and stockholders' equity | $ | 903,393 | $ | 918,636 |