10X Genomics (TXG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $154.9M–$155M, including a $26M patent litigation settlement; excluding this, revenue was $138M–$138.1M, down 2% year-over-year due to lower instrument sales but offset by strong consumables growth.

• Net loss narrowed to $34.4M from $59.9M year-over-year, with operating loss at $39.3M versus $61.5M.

• Robust demand for core products, especially Chromium and Xenium consumables, with new product launches and partnerships driving adoption and usage.

• Cost-saving measures implemented, including an 8% workforce reduction and significant non-headcount expense cuts, expected to reduce 2025 operating expenses by over $50M.

• Macro environment challenges, especially U.S. academic/government funding uncertainty, led to withdrawal of full-year guidance in favor of quarterly guidance.

Financial highlights

• Q1 revenue (excluding settlement): $138.1M, down 2% year-over-year; total revenue: $154.9M–$155M, up 10% with settlement.

• Consumables revenue: $115.4M, up 5%; Chromium consumables flat, spatial consumables up 18%.

• Instrument revenue: $14.8M, down 42% year-over-year; Chromium instruments down 25%, spatial instruments down 49%.

• Gross profit: $105.4M (up from $92.9M); gross margin 68% (64% excluding settlement).

• Ended Q1 with $426.9M–$427M in cash, cash equivalents, and marketable securities.

Outlook and guidance

• Withdrew full-year revenue guidance due to funding uncertainty; now providing quarterly guidance.

• Q2 2025 revenue expected between $138M–$142M, representing 1% sequential growth at midpoint (excluding settlement impact).

• Expect continued macro and funding challenges, especially for instruments and large consumable orders.

• Will reinstate annual guidance when visibility improves.