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10x Genomics Inc (TXG)
NASDAQ:TXG
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10x Genomics
(NASDAQ:TXG)
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Rating:55Neutral
Price Target:
$17.00
▲(1.86% Upside)
Action:ReiteratedDate:03/17/26
Score is driven mainly by improving financial momentum (notably the shift to positive operating/free cash flow and strong gross margins) but is held back by continued operating losses. Technicals are meaningfully weak with bearish trend indicators despite oversold readings. Guidance is cautious (flat-to-modest growth excluding settlements) and valuation remains challenging due to negative earnings.
Positive Factors
Recurring consumables business model
10x's instrument-plus-consumables model creates durable, recurring revenue tied to installed instruments and usage. As installed base and reaction volumes grow, consumables pull-through can produce predictable, high-margin revenue that supports long-term revenue visibility and scalability independent of one-time instrument sales.
High gross margins
Sustained ~68–69% gross margins reflect strong product-level economics on consumables and assays. High gross margins provide the structural ability to fund R&D and commercial expansion, absorb pricing/mix shifts, and improve operating leverage as revenue scales, supporting durable profitability improvement over time.
Marked improvement in cash generation and liquidity
A swing to positive operating and free cash flow with a $523M cash balance materially strengthens the company's runway and financial flexibility. Improved cash generation reduces near-term funding risk, supports continued product investment, and enables disciplined growth without immediate dependence on external capital.
Negative Factors
Instrument revenue pressure
Steep declines in instrument sales slow expansion of the installed base, undermining future consumables pull-through that drives recurring revenue. Prolonged weakness in instrument orders can cap long-term revenue growth even if consumables volumes rise, making consumables growth harder to sustain without new platform deployments.
Operating losses persist
Despite margin and cash improvements, the company remains unprofitable at the operating level. Continued operating losses and negative returns on equity mean profitability is not yet entrenched; sustained earnings improvement is required to convert strong gross margins and cash flow into durable net profitability.
Customer funding and CapEx constraints
Ongoing academic and grant funding variability and constrained lab CapEx reduce instrument purchase cadence, delaying installed-base growth and long-term consumables demand. Structural funding volatility in key end markets can depress equipment upgrades and slow the conversion of product innovation into steady recurring revenue.
10x Genomics (TXG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.13B
Dividend YieldN/A
Average Volume (3M)2.52M
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth1.92%
EPS Growth59.18%
CountryUS
Employees1,306
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.13
Shares Outstanding117,673,386
10 Day Avg. Volume1,969,893
30 Day Avg. Volume2,518,597
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)2.56
Price to Sales (P/S)3.17
P/FCF Ratio15.64
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit4.09
Enterprise Value/Ebitda-144.89
Forecast
1Y Price Target
$20.08Price Target Upside20.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)-0.85
Revenue Forecast (FY)$612.90M
10x Genomics Business Overview & Revenue Model
Company Description10x Genomics, Inc., a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in North America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium and chromium connect instruments, microfluidic chips, slides, reagents, and other consumables products. Its single cell solutions runs on its chromium instruments, which include single cell gene expression for measuring gene activity on a cell-by-cell basis; single cell immune profiling for measuring the activity of immune cells and their targets; single cell Assay for Transposase Accessible Chromati (ATAC) for measuring epigenetics comprising the physical organization of DNA; and single cell multiome ATAC + gene expression for measuring the genetic activity and epigenetic programming in the same cells across tens of thousands of cells in a single experiment. The company also provides visium spatial gene expression solution for measuring spatial gene expression patterns across a single tissue sample or gene expression and protein co-detection when combined with immunofluorescence. It serves various academic, government, biopharmaceutical, biotechnology, and other institutions. The company was formerly known as 10X Technologies, Inc. and changed its name to 10x Genomics, Inc. in November 2014. 10x Genomics, Inc. was incorporated in 2012 and is headquartered in Pleasanton, California.
How the Company Makes Money10x Genomics generates revenue primarily by selling (1) instruments and (2) recurring consumables and related services/software tied to usage of those instruments. Instruments provide an upfront sale when a lab purchases or leases a platform, but the company’s model is largely driven by repeat purchases of consumables required for each experiment run (e.g., assay kits, reagents, and other proprietary components), creating an ongoing “razor-and-blades” style revenue stream once an instrument is installed. Revenue is therefore influenced by the size of the installed base, utilization rates (how frequently customers run experiments), and mix of assay types. The company also earns revenue from service and support offerings (e.g., maintenance and support plans) and may generate some software-related revenue depending on product and contract structure; if specific breakdowns are not publicly disclosed for a period, null. Partnerships and ecosystem factors that support earnings include collaborations and integrations with other life science and sequencing ecosystem participants (e.g., workflows that interface with next-generation sequencing platforms and downstream analysis tools), which can expand adoption and drive higher consumables pull-through; specific partner-by-partner financial contributions are not generally disclosed and should be treated as null unless explicitly reported.
10x Genomics Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where 10x Genomics is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where 10x Genomics is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The Fly10x Genomics Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong operational and commercial progress in consumables, reaction volumes, product innovation (notably FLEX APEX and Xenium), improved gross margin, and a materially stronger cash position were clear positives. Offsetting these wins were meaningful declines in instrument revenue, continued capital expenditure constraints, regional funding variability (notably the Americas), and pricing/mix considerations from lower-cost assays. Management reinstated cautious but constructive guidance for 2026 (flat-to-modest growth excluding settlements) and emphasized continued cost discipline.Q4-2025 Updates
Positive Updates
Quarterly and Full-Year Revenue Performance
Q4 revenue of $166,000,000 (up 1% year-over-year) exceeded the high end of guidance; full-year revenue closed at $599,000,000 excluding $44,000,000 of upfront patent litigation settlement revenue.
Strengthened Balance Sheet and Cash Position
Ended the year with $523,000,000 in cash, cash equivalents, and marketable securities, an increase of $130,000,000 versus 2024, driven by disciplined cost management.
Consumables and Reaction Volume Momentum
Total consumables revenue in Q4 grew 6% year-over-year; single cell consumables grew 3% in Q4. Full-year reaction volumes increased 22% year-over-year, and Q4 saw strong reaction-volume growth (30%+) driven by new product adoption.
Spatial (Xenium) Growth and Utilization
Spatial consumables delivered double-digit revenue growth for the year driven by Xenium momentum; Xenium reactions reached 14,500 for the year, up approximately 34% year-over-year, with expanding customer utilization and fleet expansion.
FLEX APEX Product Launch and Adoption
Launched FLEX APEX (next-generation FLEX assay) in 2025; it became the most popular single cell assay by volume in Q4, offering lower cost per experiment and support for FFPE and fixed whole blood — enabling larger-scale AI and translational studies and driving incremental reaction volumes.
Spatial Platform Enhancements
Multiple spatial product launches in 2025 — Visium HD 3' and HD cell segmentation, and Xenium RNA+protein multimodal capability — materially expanded spatial capabilities and customer value.
Improved Gross Margin
Reported gross margin of 68% for 2025, up from 67% the prior year, helped by lower inventory write-downs and reduced royalty and warranty costs.
Operating Efficiency
Total operating expenses decreased 18% in the fourth quarter, primarily due to lower outside legal expenses and reduced personnel costs; management emphasized continued cost discipline going into 2026.
Reinstated Full-Year Guidance
2026 revenue guidance reinstated at $600,000,000 to $625,000,000 (which implies 0% to 4% growth over full-year 2025 excluding upfront settlements); guidance assumes continued double-digit growth for single cell reaction volumes and spatial consumables while CapEx remains constrained.
Negative Updates
Instrument Revenue Pressure
Total instrument revenue declined 36% in Q4; Chromium instrument revenue declined 44% and spatial instrument revenue declined 30%, reflecting materially constrained capital equipment purchases.
Subdued Customer Spending and Funding Uncertainty
Customer spending remained subdued with capital purchases particularly constrained; management cited ongoing uncertainty in research funding dynamics (e.g., U.S. academic funding timing and multiyear grant questions) impacting purchase timing.
Regional Softness in Americas
Americas revenue declined 6% in Q4 while management noted stronger performance in EMEA and APAC, indicating regional disparities tied to funding and year-end ordering patterns.
Visium Flat Growth
Visium did not grow in 2025; spatial growth was driven entirely by Xenium, highlighting portfolio concentration within the spatial segment.
Pricing and Mix Headwinds from New Lower‑Cost Products
FLEX APEX's lower cost per experiment is expected to drive volume but also introduces potential pricing/mix headwinds for Chromium consumables; management models Chromium consumables roughly flat at the guidance midpoint, reflecting price/volume trade-offs.
Continued CapEx Constraints into 2026
Guidance and commentary assume constrained CapEx funding will persist in 2026, continuing to pressure instrument revenue and limiting near-term equipment purchases.
Macro & Timing Volatility
Management described 2025 as highly unpredictable for customers and the ecosystem; systemic turbulence in research funding remains a risk to purchase cadence and revenue timing (including carryover of some orders into Q1).
Company Guidance
10x reinstated full‑year 2026 revenue guidance of $600–$625 million, which at the midpoint implies roughly 0–4% growth versus 2025 after excluding $44 million of upfront patent‑settlement revenue from 2025’s $599 million; the guidance assumes continued double‑digit growth in single‑cell consumable reaction volumes and double‑digit spatial consumables revenue, while constrained CapEx will keep instrument revenue under pressure. Management also expects Q1 to be a larger share of full‑year revenue (historically ~23% of revenue, now about ~24% at the midpoint) and emphasized sustaining the cost discipline that helped end 2025 with $523 million in cash, up ~$130 million year‑over‑year.10x Genomics Financial Statement Overview
Summary
Improving fundamentals: revenue growth re-accelerated in 2025 and gross margin stayed strong (~69%). Cash flow swung to solidly positive operating and free cash flow in 2025, and leverage is modest. However, operating and net losses persist, keeping the financial profile only moderately attractive.Income Statement
Revenue growth re-accelerated in 2025 (+15.7% vs. -1.3% in 2024), and gross margin remains strong (about 69% in 2025). However, profitability is still negative, with operating losses persisting (2025 operating margin about -17%) and net losses continuing (2025 net margin about -6.8%), albeit meaningfully improved from 2024. Overall, the top line and gross profitability are constructive, but sustained operating losses keep the score below average.47
Neutral
Balance Sheet
Leverage appears manageable with low debt relative to equity (debt-to-equity about 0.20 in 2025), and equity remains substantial versus assets. The main weakness is ongoing negative returns on equity (about -5.5% in 2025), reflecting continued net losses despite a solid capital base. Balance sheet risk looks moderate-to-low, but profitability needs to stabilize for the profile to strengthen further.68
Positive
Cash Flow
Cash generation improved sharply in 2025 with positive operating cash flow (~$136M) and solid positive free cash flow (~$130M), a major swing from 2024 (near-breakeven operating cash flow and negative free cash flow). This indicates improving cash efficiency and better self-funding capacity. The key watch-out is that this strength is relatively recent following multiple years of negative operating and free cash flow, so consistency through cycles remains to be proven.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 642.82M | 610.78M | 618.73M | 516.41M | 490.49M |
| Gross Profit | 443.88M | 414.48M | 409.31M | 396.02M | 416.40M |
| EBITDA | -110.89M | -133.99M | -205.11M | -128.49M | -24.59M |
| Net Income | -43.54M | -182.63M | -255.10M | -166.00M | -58.22M |
Balance Sheet | |||||
| Total Assets | 1.04B | 918.64M | 965.14M | 1.03B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 523.41M | 393.40M | 388.69M | 429.98M | 587.45M |
| Total Debt | 157.74M | 82.61M | 95.37M | 95.18M | 81.98M |
| Total Liabilities | 245.04M | 208.50M | 224.10M | 223.24M | 201.26M |
| Stockholders Equity | 796.33M | 710.13M | 741.04M | 805.74M | 817.57M |
Cash Flow | |||||
| Free Cash Flow | 130.12M | -5.73M | -64.72M | -165.27M | -122.65M |
| Operating Cash Flow | 136.05M | 6.66M | -15.20M | -33.61M | -21.37M |
| Investing Cash Flow | -13.44M | -32.63M | 133.49M | -350.89M | -106.73M |
| Financing Cash Flow | 6.80M | 10.91M | 13.67M | 15.82M | 35.30M |
10x Genomics Technical Analysis
Negative
16.69
Price Trends
20.13
Negative
18.04
Negative
15.19
Positive
Market Momentum
-0.21
Positive
31.63
Neutral
5.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXG, the sentiment is Negative. The current price of 16.69 is below the 20-day moving average (MA) of 20.30, below the 50-day MA of 20.13, and above the 200-day MA of 15.19, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 31.63 is Neutral, neither overbought nor oversold. The STOCH value of 5.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TXG.
10x Genomics Risk Analysis
10x Genomics disclosed 8 risk factors in its most recent earnings report. 10x Genomics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
10x Genomics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $3.43B | -6.96 | -132.16% | ― | 50.67% | -578.00% | |
62 Neutral | $2.23B | -166.38 | -7.41% | ― | 50.50% | ― | |
55 Neutral | $2.13B | -46.73 | -5.69% | ― | 1.92% | 59.18% | |
54 Neutral | $1.56B | 1,014.72 | 0.17% | ― | 10.67% | ― | |
52 Neutral | $937.58M | 10.10 | -29.47% | ― | 32.90% | 1.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $351.89M | -3.99 | -116.98% | ― | 13.66% | -2.65% |
* Healthcare Sector Average
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55.11%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.