10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the first quarter ended March 31, 2025.

Recent Updates

• Revenue was $154.9 million for the first quarter. Excluding $16.8 million related to a patent litigation settlement, revenue was $138.1 million, a 2% decrease from the corresponding period of 2024, primarily driven by a significant decrease in instrument revenue.
• Ended the first quarter with cash and cash equivalents and marketable securities of $426.9 million. As a further effort to strengthen its balance sheet, the company recently implemented a plan to reduce operating expenses for 2025 by more than $50 million compared to prior year, including a reduction of approximately 8% of the company's global workforce.
• Unveiled a roadmap of product launches across all three platforms at the 2025 AGBT General Meeting, further expanding mega-scale experimental capabilities within Chromium, adding new products to the Visium platform and extending into protein offerings to unlock multiomic insights within Xenium.
• Announced a partnership with Arc Institute to accelerate the development of the Arc Virtual Cell Atlas, leveraging Chromium Flex technology to generate high quality single cell data at large scale.

"Customer enthusiasm and improving consumables trends reinforce our conviction in our technology and in the potential of Single Cell and Spatial," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "However, given uncertainty in U.S. academic and government research funding, we are temporarily moving to quarterly guidance until we see greater visibility return. During this period, we are taking actions to serve our customers and make focused investments, while prioritizing cost reduction initiatives to protect our strong balance sheet."

First Quarter 2025 Financial Results

Revenue was $154.9 million for the first quarter of 2025, a 10% increase from $141.0 million for the corresponding prior year period. Revenue includes license and royalty revenue of $16.8 million related to a worldwide patent litigation settlement.

Gross margin was 68% for the first quarter of 2025, as compared to 66% for the corresponding prior year period. The increase in gross margin was primarily due to higher license and royalty revenue and lower manufacturing costs, partially offset by an increase in inventory reserves. Excluding the impact of license and royalty revenue, gross margin was 64% for the first quarter of 2025.

Operating expenses were $144.8 million for the first quarter of 2025, a 6% decrease from $154.4 million for the corresponding prior year period. The decrease was primarily driven by a $9.2 million gain on settlement related to the litigation settlement.

Operating loss was $39.3 million for the first quarter of 2025, as compared to $61.5 million for the corresponding prior year period. Operating loss includes $31.1 million of stock-based compensation for the first quarter of 2025, as compared to $36.1 million of stock-based compensation for the corresponding prior year period.

Net loss was $34.4 million for the first quarter of 2025, as compared to a net loss of $59.9 million for the corresponding prior year period.

Cash and cash equivalents and marketable securities were $426.9 million as of March 31, 2025.

2025 Financial Guidance

As a result of recent U.S. policy changes, including their effects on academic and government research funding, 10x Genomics is withdrawing its previously issued full year revenue guidance. 10x Genomics is implementing guidance for the second quarter of 2025 and expects revenue to be in the range of $138 million to $142 million, representing 1% growth sequentially at the midpoint, excluding the license and royalty revenue from the settlement.