8-K: 10x Genomics Q3 2025: Revenue Dips, Cash Rises Amid New Launches

10x Genomics reported a 2% sequential revenue increase excluding one-time items, alongside a significant boost in cash and cash equivalents for Q3 2025, despite a year-over-year revenue decline.

Summary

• Revenue for the third quarter of 2025 was $149.0 million, representing a 2% decrease from the corresponding period of 2024, primarily driven by a decrease in instrument revenue.
• Excluding $27.3 million in one-time license and royalty revenue from the second quarter, third quarter revenue increased by 2% sequentially.
• Gross margin for Q3 2025 was 67%, down from 70% in Q3 2024, primarily due to changes in product mix and higher inventory write-downs, partially offset by lower royalties and warranty costs.
• Operating expenses decreased by 10% to $132.5 million in Q3 2025 compared to $147.9 million in Q3 2024, mainly due to lower personnel and outside legal expenses.
• Operating loss improved to $32.2 million in Q3 2025 from $41.5 million in Q3 2024.
• Net loss improved to $27.5 million in Q3 2025 from $35.8 million in Q3 2024.
• Cash and cash equivalents and marketable securities totaled $482.1 million as of September 30, 2025, an increase of $35 million over the prior quarter.
• The company started shipping the next-generation Chromium Flex, designed for cost-effective, highly-scalable, plate-based single cell analysis.
• 10x Genomics launched Xenium Protein, the first fully-integrated spatial multiomic workflow enabling simultaneous RNA and protein detection on the same tissue section.
• Fourth quarter 2025 revenue guidance is set between $154 million and $158 million, which would represent a 6% decline from the corresponding prior year period but a 5% sequential growth at the midpoint.

Sentiment

Score: 5

Explanation: While the company showed sequential growth (excluding one-time items) and improved net/operating losses, the year-over-year revenue decline and projected Q4 year-over-year decline indicate ongoing challenges. Positive aspects include strong cash position and new product launches, but these are balanced by the revenue contraction and gross margin dip.

Positives

• Sequential revenue growth of 2% in Q3 2025, excluding one-time license and royalty revenue from Q2.
• Operating expenses decreased by 10% to $132.5 million in Q3 2025 compared to the prior year period, driven by lower personnel and outside legal expenses.
• Operating loss improved to $32.2 million in Q3 2025 from $41.5 million in Q3 2024.
• Net loss improved to $27.5 million in Q3 2025 from $35.8 million in Q3 2024.
• Cash and cash equivalents and marketable securities increased by $35 million over the prior quarter, reaching $482.1 million as of September 30, 2025.
• Successful launch of Xenium Protein, the first fully-integrated spatial multiomic workflow.
• Commenced shipping of the next-generation Chromium Flex, offering cost-effective, highly-scalable, plate-based single cell analysis.

Negatives

• Total revenue decreased by 2% to $149.0 million in Q3 2025 compared to the corresponding period of 2024, primarily due to a decrease in instrument revenue.
• Gross margin decreased to 67% in Q3 2025 from 70% in Q3 2024, primarily due to changes in product mix and higher inventory write-downs.
• Fourth quarter 2025 revenue guidance of $154 million to $158 million represents a 6% decline from the corresponding prior year period.
• The company continues to report a net loss of $27.5 million for the quarter.

Risks

• The press release refers to material risks and uncertainties discussed under '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, filed on February 13, 2025, and quarterly reports on Form 10-Q for the quarter ended March 31, 2025, filed on May 9, 2025, and for the quarter ended September 30, 2025, to be filed with the SEC.

Future Outlook

10x Genomics expects fourth quarter 2025 revenue to be in the range of $154 million to $158 million, representing a 6% decline from the corresponding prior year period but a 5% sequential growth at the midpoint. The company expresses confidence in navigating the current environment and driving long-term growth due to its strong balance sheet, disciplined execution, technology leadership, and innovation.

Management Comments

• "Our team delivered a solid third quarter, and we continue to see notable enthusiasm for our single cell and spatial products." Serge Saxonov, Co-founder and CEO of 10x Genomics.
• "Our strong balance sheet and disciplined execution give us confidence to navigate the current environment, while our technology leadership and innovation position us to win and drive long-term growth." Serge Saxonov, Co-founder and CEO of 10x Genomics.

Industry Context

10x Genomics operates in the rapidly evolving life science technology sector, specifically in single cell and spatial biology. The launch of Xenium Protein and the next-generation Chromium Flex indicates continued innovation in a competitive market, aiming to provide researchers with advanced tools for understanding complex biological systems. The company's focus on cost-effective and scalable solutions suggests a response to market demands for more accessible and efficient research technologies.

Stakeholder Impact

• Shareholders: The year-over-year revenue decline and projected Q4 decline could negatively impact investor sentiment, despite improved net loss and strong cash position. New product launches might offer long-term growth potential.
• Customers/Researchers: The launch of Xenium Protein and next-generation Chromium Flex provides new and improved tools for single cell and spatial biology research, potentially enhancing their capabilities and efficiency.
• Employees: Lower personnel expenses contributed to decreased operating expenses, which could imply workforce adjustments or reduced hiring, though specific details are not provided.

Next Steps

• Host a conference call on November 6, 2025, at 1:30 PM Pacific Time / 4:30 PM Eastern Time to discuss Q3 2025 financial results, business developments, and outlook.
• File the quarterly report on Form 10-Q for the quarter ended September 30, 2025, with the SEC.

Key Dates

Recommendation

The company reported mixed results with a year-over-year revenue decline and a projected decline for the next quarter, indicating ongoing headwinds. However, the sequential revenue growth (excluding one-time items), improved operating and net losses, strong cash position, and new product innovations (Chromium Flex, Xenium Protein) suggest underlying operational improvements and future growth potential. Given the balance of challenges and strategic advancements, a 'hold' recommendation is appropriate as investors await further evidence of sustained revenue growth and margin improvement from new product adoption.

Keywords

10x Genomics, TXG, Financial Results, Q3 2025, Single Cell Biology, Spatial Biology, Chromium Flex, Xenium Protein, Life Science Technology, Biopharmaceutical, Oncology, Immunology, Neuroscience, SEC Filing