10x Genomics (TXG) Earnings & Analysis

Latest quarter

10x Genomics reported Q2 FY2026 revenue of $151.0 million, above the consensus of $147.0 million. Its adjusted loss per share of −$0.14 was narrower than the consensus estimate of −$0.23.

Revenue declined −12.6% from $172.9 million a year earlier. The company’s filing attributed a decline in license and royalty revenue primarily to a one-time royalty recognized in the prior-year quarter from a patent litigation settlement. Products and services revenue increased: consumables and services grew, while instruments declined.

The company reported diluted EPS of −$0.14, compared with $0.28 a year earlier. Its filing said the prior-year quarter included a non-recurring gain on settlement. Gross margin rose to 74.5% from 72.3%; the filing cited lower manufacturing costs, inventory write-downs and warranty costs, along with product mix. Operating margin was −12.9%, compared with 17.4% a year earlier.

10x Genomics reported free cash flow of $15.4 million, compared with $16.1 million a year earlier. Its filing said cash, cash equivalents and marketable securities increased from the end of the prior year.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the latest available call, covering Q1, CEO Serge Saxonov said the response to the Atara spatial platform had exceeded his expectations. The company was taking preorders ahead of initial shipments, he said, and customers were discussing how to incorporate the instrument into research programs. Atara uses standard glass slides, which Saxonov said would give customers access to archived samples.

Asked about the effect on existing products, Saxonov said customers were adjusting plans for future projects around Atara, putting pressure on some spatial sales. He added that established workflows, ongoing studies and budgets supported continued use of existing products. CFO Adam Taich said some customers had delayed adding Xenium instruments in anticipation of Atara, although he described the capital spending environment as still constrained.

Saxonov said lower-priced single-cell products had supported demand, with reaction volumes growing. Asked about FLEX Apex pricing and product mix, he said the trend was similar to the previous quarter, while noting that the launch was still early. He also said he was not seeing an effect from Atara on the single-cell business in the near term, citing differences in capabilities, pricing and workflows.

Taich said lower warranty costs and inventory write-downs had supported Q1 gross margin, while lower legal and personnel costs contributed to reduced operating expenses. He said the company remained focused on customer success, disciplined execution and strengthening its financial position to support continued investment in its portfolio.

On the quarter ahead, Taich expected lower spatial sales as customers waited for Atara and said initial production capacity would be limited. In response to a question about Atara units, he described a production ramp weighted toward the fourth quarter. Saxonov also said the company would continue to support Visium, whose customers continued to use it across many samples.

Guidance

10x Genomics raised its FY2026 revenue outlook to $610.0 million to $630.0 million from its previous range. In its filing, the company said it expects revenue to increase moderately in 2026 excluding non-recurring patent litigation settlement revenue in both years.