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10x Genomics Reports Q2 2025 Financial Results

10x Genomics, Inc. (Nasdaq: TXG), a frontrunner in the fields of single-cell and spatial biology, shared its financial results for the second quarter ending June 30, 2025. The company experienced remarkable year-over-year progress, evidenced by its revenue of $172.9 million. However, it is important to note that the revenue figure includes a one-time contribution of $27.3 million from a patent litigation settlement, which lowers the revenue to $145.6 million when excluded. This represents a modest decline of 5% compared to the same quarter last year, primarily due to decreased instrument sales. Additionally, the results reflect an interesting dynamic where approximately $4.0 million in revenue was accrued from customers in China who expedited their order placements, anticipating changes in tariffs that could affect costs moving forward.

The company's gross margin for the quarter was impressive, sitting at 72%, up from 68% in the same period last year. This increase is largely attributable to higher revenues from licensing and royalties coupled with reduced warranty costs. However, it was also offset slightly by an increase in inventory reserves and manufacturing expenses. If we set aside the impact from licensing and royalty revenues, the gross margin settles at a sturdy 67%.

Operating expenses were significantly reduced to $95 million from $146 million year-over-year, representing a dramatic 35% drop. This reduction can be attributed to a significant gain of $40.7 million from the litigation settlement, which positively influenced the operational landscape. In terms of earnings, 10x Genomics reported an operating income of $30.1 million, a solid turnaround from the $41.7 million operating loss recorded in Q2 2024. Furthermore, net income for the quarter soared to $34.5 million—compared to a net loss of $37.9 million in the prior year, marking a substantial recovery in profitability.

On the balance sheet side, as of June 30, 2025, the company reported total cash and cash equivalents, along with marketable securities, of $447.3 million. This is a notable rise of $20 million from the previous quarter, strengthening their financial foundation as they navigate future operational goals.

Looking ahead, 10x Genomics projects revenue for Q3 2025 to fall within the range of $140 million to $144 million. This forecast, however, factors in the prior revenue spike from accelerated customer purchases in China.

In a strategic move aimed at enhancing its market position, 10x Genomics has entered a definitive agreement to acquire Scale Biosciences for an upfront payment of $30 million in cash and stock, along with contingent payments linked to achieved milestones. This acquisition is poised to bolster their already strong position in single-cell analysis and broaden the scope of their technological capabilities.

In product updates, the company has begun shipping Visium HD products, introducing novel high-resolution cell segmentation. This advancement enhances the Visium portfolio's performance, facilitating high-sensitivity profiling which is now available for a wider array of applications.

Additionally, 10x Genomics announced a collaborative effort with the Genome Institute of Singapore on the TISHUMAP initiative, leveraging Xenium technology and AI to identify novel biomarkers and therapeutic targets in the realms of oncology and inflammatory diseases.

Overall, as stated by Serge Saxonov, Co-founder and CEO of 10x Genomics, the second quarter unfolded largely as the company had expected. Despite the unstable funding environment, the resilience demonstrated by their business operations and team dedication inspires confidence in the company's technology, market momentum, and future opportunities.

For those interested in further insights, 10x Genomics will be hosting a conference call post-market closure on August 7, 2025, to discuss these results and projections in detail.

In conclusion, 10x Genomics continues to pave the way in life science technology, aiming to facilitate a deeper understanding of biology and enhance human health through innovative products and strategic acquisitions. Its focus on single-cell and spatial biology positions it well within the ever-evolving landscape of healthcare research and solutions.