8-K: 10x Genomics Reports Preliminary Q4 & Full Year 2025 Results

10x Genomics announced preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2025, showing mixed growth across its single cell and spatial biology segments.

Summary

• Preliminary, unaudited revenue for Q4 2025 was approximately $166.0 million, representing 11% sequential growth and 1% growth compared to the prior year period.
• Preliminary, unaudited revenue for the full year 2025 was approximately $642.8 million. Excluding $44.1 million from patent litigation settlements, full year revenue was approximately $598.7 million, a 2% decrease from the prior year.
• Q4 2025 Instruments revenue was approximately $15.5 million, showing 29% sequential growth but a 36% decrease year-over-year.
• Full year 2025 Instruments revenue was approximately $56.8 million, a 39% decrease from the prior year.
• Q4 2025 Consumables revenue was approximately $141.7 million, representing 11% sequential growth and a 6% increase year-over-year.
• Full year 2025 Consumables revenue was approximately $507.2 million, representing 3% growth over the prior year.
• Spatial instruments revenue decreased 30% year-over-year in Q4 and 41% for the full year, while Spatial consumables revenue grew 14% year-over-year in Q4 and 19% for the full year.
• Single Cell instruments revenue decreased 44% year-over-year in Q4 and 36% for the full year, while Single Cell consumables revenue grew 3% year-over-year in Q4 but decreased 2% for the full year.
• Services and License and Royalty revenue was approximately $8.8 million in Q4 (23% growth year-over-year) and $34.8 million for the full year (41% growth year-over-year, excluding settlements).
• Cumulative Chromium instruments sold exceeded 6,400 and cumulative Spatial instruments sold exceeded 1,500 as of the end of 2025.
• Single Cell consumables reactions sold increased by more than 20% compared to the prior year period.
• Cash, cash equivalents and marketable securities were approximately $520 million as of December 31, 2025.
• The reported results are preliminary and unaudited, subject to change upon completion of year-end close and review procedures.

Sentiment

Score: 4

Explanation: The mixed results show significant declines in instrument sales and a slight overall revenue decrease (excluding settlements) for the full year, indicating underlying challenges. While consumables growth and a strong balance sheet are positive, the core instrument business contraction is a concern. The 'preliminary and unaudited' nature adds a layer of uncertainty.

Positives

• Overall Q4 2025 revenue showed positive sequential growth of 11% and a slight year-over-year increase of 1%.
• Consumables revenue, a key recurring stream, demonstrated healthy growth of 11% sequentially and 6% year-over-year in Q4, and 3% for the full year.
• Spatial consumables revenue exhibited strong performance with 16% sequential growth, 14% year-over-year growth in Q4, and 19% growth for the full year.
• Services and License & Royalty revenue grew significantly, up 23% year-over-year in Q4 and 41% for the full year (excluding patent settlements).
• The installed base of instruments expanded, with over 6,400 Chromium and over 1,500 Spatial instruments sold cumulatively, indicating broad adoption.
• Single Cell consumables reactions sold increased by more than 20% year-over-year, suggesting high utilization of existing instruments.
• The company maintains a strong balance sheet with approximately $520 million in cash, cash equivalents, and marketable securities.
• Management expressed confidence in the company's future impact and strategic positioning despite a challenging macro environment.

Negatives

• Full year 2025 revenue, excluding patent litigation settlements, decreased by 2% from the prior year, indicating a contraction in the core business.
• Instruments revenue experienced significant declines, with a 36% year-over-year decrease in Q4 and a 39% decrease for the full year.
• Single Cell instruments revenue decreased substantially by 44% year-over-year in Q4 and 36% for the full year.
• Spatial instruments revenue also saw considerable declines, down 30% year-over-year in Q4 and 41% for the full year.
• Full year Single Cell consumables revenue decreased by 2% year-over-year.
• The macro environment was described as challenging throughout 2025, impacting business performance.
• The preliminary and unaudited nature of the financial results introduces uncertainty, as final results may differ materially.

Risks

• The select financial results presented are preliminary and unaudited, and are inherently uncertain and subject to change as the company completes its year-end close and review procedures.
• There is no assurance that final results for the fourth quarter and full year 2025 will not differ materially from these preliminary estimates.
• During the preparation of consolidated financial statements, items may be identified that could cause final reported results to be materially different from the preliminary estimates.
• Forward-looking statements are subject to a number of factors and uncertainties that could cause actual outcomes and results to differ materially from expectations.

Future Outlook

Management is confident that the company's greatest impact lies ahead and that 10x Genomics is well positioned for the future. The company expects to continue making progress across its product roadmap and maintain tight operational discipline, despite a challenging macro environment experienced in 2025.

Management Comments

• "I am incredibly proud of the tenacity and ingenuity our team displayed throughout 2025."
• "While the macro environment was challenging, the team forged even stronger partnerships with customers, made important progress across our product roadmap and maintained tight operational discipline, leading to a significant strengthening of our balance sheet."
• "I am confident that our greatest impact lies ahead and 10x is well positioned for the future."

Industry Context

10x Genomics operates in the dynamic life science technology sector, specializing in single cell and spatial biology, which are critical for advancements in oncology, immunology, and neuroscience. The challenging macro environment cited by management likely reflects broader economic pressures impacting research funding and capital expenditures for scientific instruments across the industry. Despite a significant slowdown in instrument sales, the continued growth in consumables, particularly in spatial biology, suggests sustained research activity and increasing adoption of advanced biological analysis techniques, indicating the company's strong position within these specialized niches.

Comparison to Industry Standards

• The substantial decline in instrument sales (39% for full year 2025) suggests a significant slowdown in capital expenditure by research institutions and biopharmaceutical companies, which could be a broader industry trend affecting instrument providers or specific to 10x Genomics' competitive landscape.
• The consistent growth in consumables revenue (3% for full year, 6% in Q4) and the over 20% increase in Single Cell consumables reactions sold indicate strong utilization of the existing installed instrument base. This performance in recurring revenue streams is a positive indicator of customer loyalty and product stickiness, potentially outperforming competitors who may struggle with post-installation engagement.
• The robust growth in Spatial consumables (19% for full year, 14% in Q4) highlights the increasing demand and utility of spatial biology technologies. 10x Genomics appears to be a leader in this segment, potentially capturing a larger share of this growing market compared to emerging or niche competitors.
• The company's strong cash position of approximately $520 million provides a significant financial buffer, positioning it favorably against smaller, less capitalized biotech firms that might be more vulnerable to market fluctuations or require external financing for operations and R&D.

Legal Proceedings

• The company recognized $44.1 million in revenue related to patent litigation settlements in the first and second quarters of 2025, indicating past legal disputes that have been resolved.

Stakeholder Impact

• Shareholders: Mixed financial results, with strong consumables growth offset by significant instrument sales declines, could lead to share price volatility. The preliminary nature of results introduces additional uncertainty.
• Customers (Researchers/Biopharma): Continued product roadmap progress and strong partnerships are positive. Increased installed base and consumables usage indicate ongoing engagement and reliance on 10x Genomics' technology.
• Employees: Management's acknowledgment of the team's "tenacity and ingenuity" suggests a positive internal culture despite external challenges.
• Creditors: A strong cash position of approximately $520 million enhances the company's financial stability and ability to meet its obligations.

Next Steps

• Completion of customary year-end close and review procedures for consolidated financial statements for the fourth quarter and fiscal year ended December 31, 2025.
• Participation in the 44th Annual J.P. Morgan Healthcare Conference, with a live webcast of the company's presentation and Q&A session scheduled for January 12, 2026.

Key Dates

Recommendation

The preliminary results present a mixed picture. While consumables revenue, particularly spatial, shows healthy growth and the company maintains a strong cash position, the significant decline in instrument sales for both single cell and spatial platforms is a major concern, indicating a slowdown in new customer acquisition or expansion. The overall revenue decline for the full year (excluding settlements) suggests underlying business challenges. Investors should hold to monitor if the consumables growth can eventually offset the instrument sales decline and if the 'challenging macro environment' improves, allowing for a rebound in capital expenditures for new instruments. The preliminary nature of the results also warrants caution until audited financials are released.

Keywords

10x Genomics, TXG, preliminary financial results, Q4 2025, full year 2025, revenue, instruments, consumables, single cell biology, spatial biology, life science technology, biotechnology, SEC filing, 8-K, J.P. Morgan Healthcare Conference