10X Genomics ((TXG)) has held its Q4 earnings call. Read on for the main highlights of the call.
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10x Genomics’ latest earnings call painted a cautiously optimistic picture as management balanced solid execution with a tough capital environment. Consumables strength, improving margins, and a fortified cash position underscored operational health, while steep instrument declines, regional funding pressures, and pricing mix shifts tempered enthusiasm about near‑term growth.
Quarterly and Full-Year Revenue Performance
10x reported Q4 revenue of $166 million, up 1% year-over-year and above the high end of guidance, showing resilient demand despite macro headwinds. Full-year revenue reached $599 million excluding $44 million of patent settlement revenue, giving investors a cleaner view of the underlying business trajectory.
Strengthened Balance Sheet and Cash Position
The company ended the year with $523 million in cash, cash equivalents, and marketable securities, an increase of $130 million versus 2024. Management credited disciplined cost control for the stronger balance sheet, giving 10x more flexibility to invest prudently while weathering funding volatility.
Consumables and Reaction Volume Momentum
Consumables remained the growth engine, with total consumables revenue up 6% in Q4 and single cell consumables rising 3%. Reaction volumes told an even stronger story, growing 22% for the year and above 30% in Q4 as new assays and use cases expanded utilization.
Spatial (Xenium) Growth and Utilization
Spatial consumables delivered double-digit revenue growth for the year, powered by robust demand for Xenium. Xenium reactions climbed to about 14,500, up roughly 34%, as customers broadened use and expanded instrument fleets, reinforcing 10x’s leadership in high-end spatial biology.
FLEX APEX Product Launch and Adoption
Launched in 2025, FLEX APEX quickly became the most popular single cell assay by volume in Q4, signaling rapid customer uptake. Its lower cost per experiment and compatibility with FFPE and fixed whole blood opened the door to larger AI-driven and translational studies, driving incremental reaction volumes.
Spatial Platform Enhancements
10x broadened its spatial platform with several 2025 launches, including Visium HD 3′, HD cell segmentation, and Xenium RNA+protein multimodal capabilities. These additions substantially increased spatial resolution and data richness, enhancing the value proposition for researchers and deepening competitive moats.
Improved Gross Margin
Gross margin improved to 68% in 2025 from 67% a year earlier, a notable achievement amid mixed growth and pricing pressure. The gain was driven by lower inventory write-downs plus reduced royalty and warranty costs, signaling cleaner operations and better product economics.
Operating Efficiency
Total operating expenses fell 18% in the fourth quarter, largely due to lower outside legal spending and reduced personnel costs. Management stressed that this cost discipline will continue into 2026, aiming to protect profitability and cash while funding targeted innovation.
Instrument Revenue Pressure
Instrument sales were the clear weak spot, with total instrument revenue down 36% in Q4. Chromium instrument revenue sank 44% and spatial instruments declined 30%, reflecting a heavily constrained capital equipment budget at customers despite healthy assay usage.
Subdued Customer Spending and Funding Uncertainty
Management reported subdued customer spending, particularly for big-ticket capital purchases, as research organizations grapple with uncertain funding. Questions around U.S. academic funding timing and multiyear grants are delaying buying decisions, stretching sales cycles and adding visibility risk.
Regional Softness in Americas
Regional trends diverged, with the Americas posting a 6% revenue decline in Q4, while EMEA and APAC performed more strongly. Management linked the weakness to local funding patterns and year-end ordering dynamics, underscoring how region-specific budgets can sway quarterly results.
Visium Flat Growth
Within spatial, growth was concentrated in Xenium as Visium remained flat for 2025, pointing to a portfolio imbalance. While Xenium’s strength is a positive, the lack of growth in Visium highlights the need to reinvigorate that product line or further pivot to higher-performing platforms.
Pricing and Mix Headwinds from Lower-Cost Products
FLEX APEX’s lower price point is boosting volumes but poses a pricing and mix headwind for Chromium consumables. Management is modeling Chromium consumables as roughly flat at the midpoint of guidance, signaling that higher usage may only partially offset lower revenue per experiment.
Continued CapEx Constraints and Macro Volatility
10x assumes capital expenditure constraints will persist into 2026, keeping instrument revenue under pressure even as assay usage climbs. Management also described 2025 as highly unpredictable for customers, with systemic funding turbulence impacting order timing and pushing some deals into subsequent quarters.
Forward-Looking Guidance and Outlook
The company reinstated 2026 revenue guidance of $600 million to $625 million, implying roughly flat to low single-digit growth versus 2025 after excluding settlement revenue. The outlook banks on continued double-digit growth in single cell reaction volumes and spatial consumables, a larger Q1 contribution, and ongoing cost discipline, while acknowledging that constrained CapEx will cap instrument recovery.
10x Genomics’ earnings call highlighted a business leaning on consumables strength and innovation to offset a harsh capital spending backdrop. For investors, the story is one of prudent financial management and robust product adoption, set against persistent funding uncertainty and instrument weakness that may keep overall growth modest near term.