10X Genomics (TXG) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $166 million, up 1% year-over-year and exceeding guidance; full-year revenue was $599 million excluding $44 million from patent litigation settlements, or $642.8 million including them.

• Operating environment remained challenging with subdued customer spending and constrained capital equipment purchases, but underlying demand for solutions remained solid.

• Single-cell consumables volumes grew at a double-digit rate each quarter, driven by adoption of lower-cost products like Flex and on-chip multiplexing.

• Strategic partnerships and collaborations were established with Cancer Research Institute, PharosAI, Dana-Farber Cancer Institute, Brigham & Women's Hospital, and others to advance AI-driven and translational research.

• Cash balance increased by over $130 million year-over-year, ending 2025 at $523.4 million.

Financial highlights

• Q4 revenue grew 1% year-over-year, surpassing the high end of guidance.

• Total consumables revenue for 2025 was $507.2 million, up from $493.4 million in 2024; instrument revenue declined to $56.8 million from $92.7 million.

• Q4 gross margin was 68%, up from 67% the prior year; full-year gross margin was 69%.

• Q4 operating expenses decreased 18% year-over-year to $132.6 million, mainly due to lower legal and personnel costs and a $49.9 million litigation settlement gain.

• Q4 operating loss was $19.5 million, a significant improvement from $49.8 million in Q4 2024; full-year operating loss narrowed to $61.0 million from $194.6 million in 2024.

Outlook and guidance

• 2026 revenue expected between $600 million and $625 million, representing 0%-4% growth over 2025, excluding non-recurring 2025 license and royalty revenue.

• Double-digit growth anticipated for single-cell consumables reactions and spatial consumables revenue.

• CapEx funding expected to remain constrained, continuing to pressure instrument revenue.

• Q1 2026 revenue projected to be a higher percentage of full-year revenue due to late Q4 orders shipped in January.

• Continued focus on cost discipline and operating efficiency expected to further strengthen financial profile in 2026.