10x Genomics (TXG) Business Profile

What it does

10x Genomics is a life sciences technology company that sells instruments, consumables and software to researchers studying biology. Its customers include academic and government research institutions, biotechnology and biopharmaceutical companies. The company was incorporated in 2012 and is headquartered in Pleasanton, California. Serge Saxonov is its chief executive officer.

Its tools help scientists examine biological material at the level of individual cells or map where molecules and cells sit within a tissue sample. Researchers use the resulting data in fields including oncology, immunology and neuroscience. The company markets its products for research use only, not for diagnostic procedures.

The Chromium platform divides samples into individual components and attaches identifying barcodes. Researchers can then pool and sequence the material while distinguishing which data came from each partition. The single-cell portfolio also includes kits that do not require a 10x instrument.

The spatial portfolio includes Visium, which uses barcoded arrays and sequencing to map biological material in tissue, and Xenium, which images tissue to locate RNA targets directly. Software supports experiment planning, data processing and visualization.

The company has also launched Atara, a spatial instrument platform designed for whole-transcriptome analysis with single-cell sensitivity. Atara uses standard glass slides, and the company expects initial shipments in 2026.

How it makes money

10x Genomics earns virtually all of its products and services revenue from instruments and consumables. Customers buy instruments for their labs and purchase consumables, such as chips, slides and reagents, to run experiments. The company bundles software with these products and also earns a smaller amount from post-warranty instrument service agreements.

Revenue was $642.8 million for 2025 and $150.8 million for the first quarter of 2026.

Instrument sales help place the company’s platforms with researchers, while consumable purchases continue as experiments are run. A consumable reaction is the reagent setup needed for an experiment. The company sold 1,007 instruments and 424,000 consumable reactions in 2025. It expects consumables revenue to increase over time and remain the bulk of its revenue.

Most single-cell and spatial consumables require a 10x instrument, although the QuantumScale Single Cell RNA kit, Single Cell Methylation kit and Visium v1 3’ Gene Expression solution are exceptions. Instrument service agreements typically last for a one-year term after the standard one-year warranty; their revenue is recognized over the coverage period. Instrument and consumable revenue is generally recognized when the products ship.

The company expects average selling prices for some products to decline as it expands its range of lower-priced instruments and consumables. It expects lower prices to expand usage and increased adoption and volume to support overall sales. Revenue can also vary with the mix of products, grant availability, budget timing and new product introductions.

Customers and how it sells

10x Genomics sells to academic, government, biotechnology, biopharmaceutical and other institutions focused on life sciences research. Its sales and marketing efforts target the people who control purchasing decisions, including principal investigators, research scientists, laboratory directors and core facility directors.

Academic and government institutions account for the largest portion of direct sales revenue. The company expects biopharmaceutical customers to represent a growing proportion of revenue. For the years ended December 31, 2025 and 2024, no single customer, including distributors, represented greater than 10% of its business.

The company sells in over 50 countries. It uses its own sales force primarily in North America and certain regions of Europe, and third-party distributors in parts of Asia, Europe, Oceania, North America, South America, the Middle East and Africa.

Customers can install Chromium and Visium CytAssist instruments themselves without in-person training. Xenium requires installation, and the company offers in-person training. The company also provides online and in-person education and training resources and maintains online user communities.

Suppliers and costs

10x Genomics makes the majority of its consumable products at its own facilities. Its operations include making gel beads, formulating and filling reagents, producing certain microfluidic chips, assembling kits and conducting quality-control tests.

The company outsources manufacturing of Chromium, Visium and Xenium instruments to contract manufacturers. It performs optical and final assembly, integration and testing of Xenium in-house. Its manufacturing operations in Pleasanton, California, Singapore and Taiwan are ISO 9001:2015 certified.

Some instrument and consumable components come from third-party suppliers. Some are sourced from a single supplier, and the company has qualified second sources for some, but not all, components, including critical reagents, enzymes and oligonucleotides.

Margins are generally higher on direct sales than on sales through distributors. Product mix, costs, inventory write-downs and royalty obligations can affect results. The company makes royalty payments under certain intellectual property licenses and reported aggregate payments under its Harvard and Stanford agreements of approximately $3.7 million in 2025. It invests in research and development across chemistry, biology, hardware and software.

Competitive position

10x Genomics competes in life sciences research tools, including genomics, single-cell, spatial and in situ analysis. Established and early-stage companies offer products in these areas, and researchers can also develop their own solutions. The company expects competition to increase, but it does not name individual competitors in its competition discussion.

Some competitors may have greater financial resources, larger research and development teams or more established sales and distribution organizations. Other companies are developing technologies that could rival or replace 10x Genomics products.

The company points to its proprietary technology, intellectual property, product capabilities, customer experience and multidisciplinary teams as differentiators. As of December 31, 2025, it owned or exclusively in-licensed over 1,598 issued or allowed patents and 1,123 pending patent applications worldwide. It also provides software across research workflows and reported that more than 10,000 peer-reviewed articles had been published using data generated by its products.

Our reading: Intellectual property provides a potential barrier, but its strength is uncertain because patents expire and may not prevent competing products. Our reading: Established workflows and published research can support customer retention, although competing technologies and product transitions can still change purchasing decisions.

Growth opportunities

10x Genomics plans to grow by expanding instrument sales, increasing consumable use, developing new applications and reaching more customers. Its research and development priorities include improving existing technologies, developing new products and combining software and workflows across its solutions. The company also intends to keep investing in or acquiring technologies that could support future products.

The company estimates a total addressable market of more than $21 billion annually. That estimate assumes every lab or company in the global life sciences research tools market adopts its solutions at spending levels comparable to existing users. It estimates a serviceable addressable market of more than $13 billion annually, based on comparable adoption by organizations already using single-cell, spatial or adjacent techniques.

Atara is a new spatial platform for which the company is taking preorders. It expects initial shipments in 2026 and says initial production capacity will be limited as it ramps manufacturing. Its planned roadmap includes workflow automation, protein multiomics, in situ sequencing and further cloud analysis capabilities.

The company is also generating clinical evidence for tissue-based spatial profiling in oncology and blood-based single-cell monitoring in autoimmune disease. It has announced a partnership with Biooptimus on a biological data initiative that is starting on Xenium and plans to expand to Atara over time.

Structural risks

• Research funding and demand: The company depends on funding, including government funding, and research and development spending by research institutions. Changes in budgets and grant availability can affect purchases and the timing of instrument sales.

• Competition and product transitions: Competing products may have performance or price advantages. New 10x products or versions can also reduce demand for existing products, and the company must manage transitions and forecast demand.

• Manufacturing and supply: Some components have a single source, and the company has not qualified a second source for every component. Supplier disruptions, shortages, defects or manufacturing constraints can affect its ability to deliver products.

• Losses and funding: The company has generated losses from operations since inception and expects to continue to incur operating losses for the foreseeable future. It may need additional financing if circumstances adversely affect its ability to meet operating cash requirements.

• Intellectual property and regulation: The company depends in part on licensed intellectual property and faces the risk of disputes over its rights. Its current products are marketed for research use only; clinical or diagnostic products would bring additional regulatory requirements.

Bottom line

Our reading

10x Genomics sells research platforms in which instrument placements can lead to continuing consumable purchases. Its opportunity rests on adoption of single-cell and spatial analysis, including the rollout of Atara, while customer research budgets and product transitions affect demand. The business has an established research user base and intellectual property, but it also faces competition, supply dependencies and continuing operating losses.