10X Genomics (TXG) TD Cowen 46th Annual Health Care Conference summary

Business performance and financials

• Achieved double-digit growth in Chromium and Spatial Consumables, despite a challenging CapEx environment and reliance on U.S. academic and government funding.

• Ended the year with $100 million more cash, totaling $520 million, reflecting a strong balance sheet and focus on cash flow.

• Guidance for 2026 projects 0%-4% underlying growth, assuming macro conditions similar to the second half of 2025.

• CapEx for instrumentation expected to decline in the teens, offset by double-digit growth in Spatial Consumables, especially from the Xenium franchise.

• Single-cell consumables, about half of the business, expected to be flat at the midpoint of guidance, with price-volume trade-offs from new product launches.

Product innovation and adoption

• Launched Flex Apex in Q4, reducing pricing and unlocking new customer bases and applications.

• Flex products, including Flex Apex, saw significant uptake, but not all customers or applications are expected to migrate immediately.

• Price reductions are driving volume growth, with Q4 2025 showing over 30% volume increase and price declines in the 20% range.

• Ongoing innovation with GEM-X and Flex products strengthens the product portfolio and customer feedback is positive.

• Building a CLIA lab to offer services for both spatial and single-cell applications, aiming to make transactions more frictionless for biopharma customers.

Market trends and customer segments

• U.S. academic and government funding was down more than the overall business, but growth in China and other regions provided bright spots.

• Biopharma represents 20% of business today, with potential to grow to half; share of wallet in these accounts remains small.

• Large-scale, AI-driven projects and public-private partnerships are emerging as new growth opportunities.

• Customer enthusiasm for Xenium remains high, with opportunities to increase utilization within the existing install base.

• Visium platform continues to have an enthusiastic customer base, though interest is shifting toward Xenium.