10x Genomics Reveals First Quarter Financial Performance for 2025

Overview of Financial Results

10x Genomics, Inc. (Nasdaq: TXG), a major player in the fields of single-cell and spatial biology, has publicly announced its financial performance for the first quarter ending March 31, 2025. The company reported total revenue of $154.9 million; however, when factoring out a significant $16.8 million from a recent patent litigation settlement, the main revenue figure stands at $138.1 million, representing a slight decrease of 2% compared to the same quarter in the previous year. The downturn in revenue was largely attributed to a notable decline in instrument sales.

Financial Breakdowns

The gross margin for the quarter was recorded at 68%, an improvement from 66% in the prior year. This enhancement can be largely attributed to increased income from license and royalty fees, along with reduced manufacturing expenses. Nonetheless, this was somewhat counterbalanced by a rise in inventory reserves. Without the effects of the license and royalty revenue, the gross margin would have settled at 64%.

Operating expenses saw a considerable reduction to $144.8 million, down from $154.4 million in the same period the previous year. A notable component of this drop was a gain of $9.2 million linked to prior litigation settlements. This resulted in an operating loss of $39.3 million for Q1 2025, a substantial decrease from the operating loss of $61.5 million a year earlier. In terms of stock-based compensation, the expense amounted to $31.1 million this quarter, down from $36.1 million in Q1 2024.

The company also reported a net loss of $34.4 million for Q1 2025, which was a decrease from the $59.9 million net loss recorded in the previous year.

Financial Position

As of March 31, 2025, 10x Genomics held cash reserves, cash equivalents, and marketable securities totaling $426.9 million. This positions the company favorably for future growth and investments.

In light of the evolving landscape surrounding U.S. academic and government research funding, the company announced the withdrawal of its previously issued full-year revenue guidance. However, it did provide approximated revenue expectations for Q2 2025, anticipating figures in the range of $138 million to $142 million, indicating slight sequential growth while excluding licensing revenue from the settlement.

Strategic Developments

To bolster its financial health, 10x Genomics has initiated a strategy to cut operational expenses in 2025 by over $50 million compared to previous years, including a workforce reduction of about 8%. This decisive action is aimed at strengthening its financial position during a period of uncertainty.

In additional positive news, the company showcased an ambitious roadmap during the 2025 AGBT General Meeting. This included plans for new product launches across all three platforms, demonstrating their commitment to expanding the capabilities of their Chromatography technology while also enhancing the Visium platform and exploring new protein-based offerings for advanced multiomic insights via their Xenium platform.

Furthermore, 10x Genomics announced a collaboration with Arc Institute aimed at accelerating the creation of the Arc Virtual Cell Atlas, leveraging their Chromium Flex technology for large-scale high-quality single-cell data generation.

Leadership Insight

Serge Saxonov, Co-founder and CEO of 10x Genomics, emphasized the positive response from customers and an encouraging trend in consumption patterns as factors reinforcing confidence in their technological capabilities and the promising realms of Single Cell and Spatial biology. He acknowledged the current climate of uncertainty in funding and outlined the company’s plan to adapt accordingly, ensuring they can continue to serve their clientele effectively while focusing on essential cost-saving measures to protect their strong fiscal foundation.

Conclusion

In summary, the financial results of 10x Genomics for the first quarter of 2025 illustrate a company navigating a challenging financial environment while laying the groundwork for future expansion and innovation. Their strategic moves, aimed at reducing costs and enhancing product offerings, highlight a proactive approach to sustaining growth in the biotechnology sector. As they continue to adapt to changes and challenges within the industry, 10x Genomics remains well-positioned to play a pivotal role in advancing human health through innovative biological insights.