10x Genomics reported fourth‑quarter revenue of $166.0 million, a 1% year‑over‑year increase from $165.0 million. The modest growth was driven by a rebound in consumable sales, particularly the Xenium spatial biology platform, while instrument revenue declined, reflecting a broader slowdown in capital‑equipment spending by academic and government customers.
Gross margin expanded to 68% from 67% in the prior year. The improvement was largely due to lower inventory write‑downs, reduced royalty and warranty costs, and a shift toward higher‑margin consumables, partially offset by higher manufacturing costs. The margin gain helped narrow the operating loss to $19.5 million and the net loss to $16.3 million, both lower than the $27.8 million operating loss reported in Q4 2024.
Full‑year 2025 revenue reached $642.8 million, up 5% from $610.8 million. When the $49.9 million litigation settlement is excluded, revenue was $598.7 million, a 2% decline from 2024. Gross margin for the year was 69%, and the company posted an operating loss of $61.0 million, reflecting the impact of the settlement gain and ongoing cost‑control efforts.
Earnings per share were $-0.13 versus the consensus estimate of $-0.19, a beat of $0.06 or 31.6%. The positive surprise was driven by the margin expansion, the settlement gain, and disciplined operating‑expense management, which together offset the lower instrument revenue and higher manufacturing costs.
Management reiterated its 2026 outlook, projecting full‑year revenue of $600 million to $625 million—0% to 4% growth versus 2025 excluding settlements. CEO Serge Saxonov emphasized disciplined execution, new product launches, and expanding demand in AI‑driven research, translational science, and clinical applications as key growth drivers.
Market reaction was mixed. While the earnings beat and margin improvement were welcomed, the cautious revenue guidance and continued headwinds in instrument sales tempered enthusiasm. Investors noted the company’s strong cash position and the potential for consumable growth, but remained wary of the broader research‑funding environment and capital‑equipment spending slowdown.
Segment analysis shows a decline in instrument revenue, offset by growth in consumables. The company highlighted strong performance in its spatial biology platform and new product launches, while acknowledging challenges in the legacy instrument market. The guidance reflects a focus on cost discipline and incremental growth in high‑margin segments, with an eye toward future clinical opportunities.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.