10x Genomics, Inc. Q4 FY2025 earnings call

Management Statement and Operational Highlights

• Product Launches: In single cell, the launch of FLEX APEX (formerly FLEX) in 2025 offers high performance, flexibility, and lower cost per experiment, becoming the most popular single cell assay by volume in Q4. In spatial, Visium HD 3' and HD cell segmentation, and Xenium RNA and protein launches expanded capabilities.
• Balance Sheet: Cash balance grew by over $100,000,000 in 2025 due to disciplined cost management.
• Strategic Partnerships: Collaborations with the Chan Zuckerberg Initiative, Arc Institute, and Cancer Research Institute to support AI-driven biological discovery and translational research.
• Translational Research: Growth in translational research driven by need for biomarker discovery, platform advancements, and partnerships with academic and industry partners.

Segment Performance

• Single Cell: Fourth quarter revenue was $166,000,000. Single cell consumables revenue grew 3% in Q4, supported by double-digit growth in reaction volumes, driven by the launch of FLEX APEX. Full-year 2025 single cell consumables revenue growth was supported by double-digit reaction volume growth. Instrument revenue for Chromium declined 44% in Q4.
• Spatial: Fourth quarter spatial consumables revenue had double-digit growth, driven by Xenium. Full-year 2025 spatial consumables revenue grew double digits, with Xenium as the key driver. Spatial instrument revenue declined 30% in Q4. Americas revenue declined 6%, while EMEA and APAC grew 79% and solidly respectively in Q4.

Guidance

• 2026 revenue guidance is $600,000,000 to $625,000,000, flat to 4% growth compared to 2025 (excluding upfront patent litigation revenue).
• Q1 2026 expected to be a larger percentage of full-year revenue due to late Q4 orders shipping in January.
• Continued double-digit growth in single cell consumables reactions and spatial consumables revenue expected. CapEx funding remains constrained, impacting instrument revenue.

Risks

• Uncertainty in research funding dynamics affecting customer purchasing decisions.
• Potential pricing headwinds from product adoption and mix changes, especially with FLEX APEX.
• Competitive dynamics in the life sciences space, though 10x Genomics feels confident in its competitive position.

Question and Answer

Q: Tycho Peterson with Jefferies asks about ordering patterns and clinical timeline for single cell and spatial in clinical applications.

A: Serge Saxonov responds on current market sentiment, growth in perturb-seq type applications, and excitement about AI-driven projects.

Q: Douglas Schenkel with Wolfe Research asks about volume vs. price in single cell consumables.

A: Adam Taich discusses 2025 reaction growth, 2026 guidance considering flat Chromium consumables, and mix of product volumes and pricing.

Q: Puneet Souda with Leerink asks about FLEX APEX rebranding, mix, and pricing impact.

A: Serge Saxonov talks about FLEX APEX's strong launch, early adoption, and volume vs. price dynamics.

Q: Daniel Arias with Stifel asks about push into clinical translational space.

A: Serge Saxonov explains hybrid strategy for clinical applications and near-term translational research efforts.

Q: Kyle Mikson with Canaccord asks about instrument impact from CapEx headwinds and biopharma translational revenue.

A: Adam Taich addresses CapEx constraints and Serge Saxonov discusses biopharma translational revenue potential.

Q: Daniel Brennan with TD Cowen asks about price/volume for Chromium, regional outlook, and cash plans.

A: Serge Saxonov and Adam Taich provide insights on Chromium price/volume, regional performance, and cash deployment plans.

Q: Patrick Donnelly with Citi asks about spatial growth confidence and margin strengthening.

A: Adam Taich discusses spatial growth confidence from Xenium and cost discipline for margin strengthening.

Q: Mason Carrico with Stephens Inc. asks about Xenium reaction growth and FLEX adoption cadence.

A: Serge Saxonov and Adam Taich provide color on Xenium reaction growth and FLEX adoption early signs.

Q: Subhalaxmi Nambi with Guggenheim Securities asks about AGBT competitive dynamics.

A: Serge Saxonov discusses confidence in competitive position and continuous innovation.

Q: Daniel Leonard with UBS asks about CLIA lab setup and diagnostics competition.

A: Serge Saxonov talks about CLIA lab setup timeline, indications, and competitive impact.

Q: Matthew Larew with William Blair asks about AI demand, in silico perturbation, and CRO partnerships.

A: Serge Saxonov addresses AI demand growth, in silico perturbation potential, and CRO partnership roles