10X Genomics (TXG) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $149 million, exceeding guidance but down 2% year-over-year, mainly due to lower instrument revenue and ongoing macroeconomic and funding challenges.

• Strong demand for spatial consumables, especially Xenium, drove double-digit year-over-year growth, while single-cell consumables saw volume growth but faced pricing pressure.

• New product launches, including next-gen Chromium Flex and Xenium Protein, expanded automation, multimodal analysis, and customer adoption.

• Strategic partnerships, such as with Anthropic, and collaborations with CLI-SEQ and Weizmann Institute, advanced data analysis and translational research.

• The company ended the quarter with $482 million in cash, cash equivalents, and marketable securities, supporting ongoing innovation and flexibility.

Financial highlights

• Total Q3 revenue was $149 million, down 2% year-over-year but up 2% sequentially (excluding one-time items); nine-month revenue was $476.8 million, up 7%.

• Consumables revenue grew 1% to $127.9 million; spatial consumables up 19% to $35.4 million, while Chromium consumables fell 4% to $92.5 million.

• Instrument revenue declined 37% to $12 million, with both Chromium and spatial instruments seeing lower ASPs.

• Services revenue increased 29% to $8.1 million, driven by Xenium service plans.

• Gross margin decreased to 67% from 70% last year, mainly due to product mix and higher inventory write-downs.

• Operating loss narrowed to $32.2 million from $41.5 million; net loss improved to $27.5 million from $35.8 million year-over-year.

Outlook and guidance

• Q4 2025 revenue is expected between $154 million and $158 million, a 5% sequential increase but a 6% year-over-year decline at midpoint.

• No significant year-end budget acceleration is anticipated; guidance incorporates potential government shutdown impacts and continued macro and policy uncertainty.

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

• Operating expenses are projected to trend lower in 2025 due to workforce reductions and cost controls.

• The company expects to continue incurring operating losses in the near term.