10X Genomics (TXG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $173 million, including a $68 million patent litigation settlement with Bruker; excluding settlement, revenue was $145.6 million, down year-over-year due to lower instrument sales.

• Net income was $34.5 million, reversing a net loss of $37.9 million in Q2 2024, driven by litigation settlements and license revenue.

• Cash and marketable securities totaled $447.3 million at quarter end, increasing by $20–$40 million sequentially, excluding settlement payments.

• Announced definitive agreement to acquire Scale Biosciences for $30 million in cash and stock, plus milestone-based contingent consideration, to enhance single cell capabilities.

• New product launches, including Visium HD 3', HD cell segmentation, and collaborations with Genome Institute of Singapore and Arc Institute, are driving adoption and innovation.

Financial highlights

• Q2 2025 revenue: $172.9 million, up 13% year-over-year; excluding settlement/license revenue, $145.6 million, down 5%.

• Consumables revenue: $122.2 million, nearly flat year-over-year; Chromium consumables down 9%, Spatial consumables up 24%.

• Instrument revenue: $14.5 million, down 39%; Chromium instruments: $5.7 million, down 35%; Spatial instruments: $8.8 million, down 42%.

• Services revenue: $8.5 million, up 47%, mainly from Xenium service plans.

• Gross margin: 72% (reported), 67% (excluding settlement/license revenue); operating income: $30.1 million vs. a loss of $41.7 million last year; EPS (diluted): $0.28 vs. $(0.32) last year.

Outlook and guidance

• Q3 2025 revenue expected between $140 million and $144 million, reflecting $4 million in Q2 revenue pulled forward from China.

• Q3 revenue anticipated to be broadly in line with Q2, given continued cautious customer spending and CapEx constraints.

• No material revenue or expense impact from the Scale Biosciences acquisition expected for the remainder of 2025.

• Gross margin expected to fluctuate in 2025 due to non-recurring license/royalty revenue and product mix.

• Operating expenses projected to trend lower in 2025 due to cost reduction initiatives.