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10x Genomics Inc (TXG)
NASDAQ:TXG
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10x Genomics
(NASDAQ:TXG)
Rating:61Neutral
Price Target:
$11.00
▲(1.20%Upside)
Positive Factors
Litigation and Settlements
The global IP settlement with BRKR/NanoString resolves all outstanding litigation, shoring up the balance sheet via $68M plus ongoing royalties.
Product Utilization
Consumables revenue was ahead of expectations, driven by broader Xenium utilization.
Revenue Performance
Service revenue increased by 47% year-over-year, outperforming market expectations.
Negative Factors
Financial Guidance
Annual guidance was withdrawn due to limited visibility in the US academic and government end market.
Market Uncertainty
Instrument placements decreased significantly due to funding concerns in the US academic and government markets.
Revenue Challenges
TXG faces significant pressure from the US academic end-market, which accounts for 40-50% of TXG revenue.
10x Genomics (TXG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.37B
Dividend YieldN/A
Average Volume (3M)3.81M
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth-0.13%
EPS Growth42.17%
CountryUS
Employees1,306
SectorHealthcare
Sector Strength48
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.28
Shares Outstanding111,092,770
10 Day Avg. Volume4,179,816
30 Day Avg. Volume3,812,370
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)5.15
Price to Sales (P/S)0.00
P/FCF Ratio-25.10
Enterprise Value/Market Cap2.93
Enterprise Value/Revenue1.61
Enterprise Value/Gross Profit9.37
Enterprise Value/Ebitda-6.94
Forecast
1Y Price Target
$13.00Price Target Upside19.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
10x Genomics Business Overview & Revenue Model
Company Description10x Genomics (TXG) is a biotechnology company specializing in the development of innovative solutions for genetic analysis. Founded in 2012 and headquartered in Pleasanton, California, the company operates in the life sciences sector, focusing on genomic sequencing technologies. Its core products include instruments, consumables, and software that enable researchers to conduct high-resolution single-cell and spatial analysis to gain deeper insights into complex biological systems.
How the Company Makes Money10x Genomics generates revenue through the sale of its proprietary instruments, consumables, and software to research institutions, pharmaceutical companies, and other entities engaged in life sciences research. The company offers a portfolio of products such as the Chromium Single Cell Platform, Visium Spatial Gene Expression, and software tools that facilitate data analysis and interpretation. Consumables, which are required for each experiment, represent a significant and recurring revenue stream for the company. Additionally, 10x Genomics may engage in strategic partnerships and collaborations that can provide supplementary revenue and enhance their market presence.
10x Genomics Key Performance Indicators (KPIs)
Any
Instruments Revenue by Type
Shows revenue generated from different types of instruments, highlighting which products are driving sales and indicating the company's focus areas in technology and innovation.
Shows revenue generated from different types of instruments, highlighting which products are driving sales and indicating the company's focus areas in technology and innovation.
Data provided by:
Main Street Data
Main Street Data10x Genomics Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 25.96%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant achievements in consumables growth, particularly in APAC, and promising product developments, these were overshadowed by declines in instrument revenue and substantial uncertainties in the U.S. research funding environment. The company's decision to withdraw full-year guidance reflects this uncertainty.Q1-2025 Updates
Positive Updates
Strong Consumables Revenue Growth
Total consumables revenue increased 5% year-over-year to $115.4 million, with spatial consumables revenue up 18%, driven by Xenium consumables.
Robust Demand in APAC
Revenue in the APAC region increased by 22%, with strong consumable sales offsetting declines in other areas.
Cost Reduction Measures
The company implemented cost-saving measures, including an 8% reduction in global workforce and significant reductions in non-headcount expenses, expected to reduce 2025 operating expenses by more than $50 million compared to 2024.
Positive Developments in Product Usage
Chromium reaction volumes showed robust year-over-year growth, and Xenium consumable revenue and volume continued to grow strongly.
Innovative Product Launches
Recent product launches, including GEM-X technology and Visium HD, continue to resonate with customers and advance the company's leadership in single-cell and spatial biology.
Negative Updates
Decline in Instrument Revenue
Total instrument revenue decreased by 42% year-over-year, with Chromium instrument revenue down 25% and spatial instrument revenue down 49%.
U.S. Academic and Government Funding Pressures
Significant uncertainty in U.S. academic and government research funding, leading to unpredictable customer purchasing behavior and reduced visibility on outlook.
Withdrawal of Full-Year Revenue Guidance
The company withdrew its full-year revenue guidance due to uncertainties in the funding environment, providing only Q2 guidance instead.
Challenges in EMEA Revenue
Revenue in the EMEA region decreased by 8%, attributed to challenging macroeconomic conditions affecting instrument sales.
Company Guidance
During the first quarter of 2025, 10x Genomics reported total revenue of $155 million, including a $26 million gain from a settlement with Vizgen. Excluding this, revenue was $138 million, down 2% year-over-year. Consumables revenue grew by 5% to $115.4 million, with spatial consumables up 18%, while instrument revenue declined by 42% to $14.8 million. The company cited a challenging macro environment, especially within U.S. academic and government funding, as a significant factor affecting revenue, leading to the withdrawal of its full-year guidance. Approximately 40-50% of 10x Genomics' revenue is exposed to these funding sources. Gross profit for the quarter was $105.4 million with a margin of 68%, and operating expenses decreased to $144.8 million. The company ended the quarter with $427 million in cash and securities. Due to uncertainties, 10x Genomics implemented cost-cutting measures, including an 8% workforce reduction, anticipating a $50 million reduction in operating expenses for 2025. For the second quarter, revenue is expected to be between $138 million and $142 million. Despite the challenges, the company remains confident in the long-term growth potential of its products and market position.10x Genomics Financial Statement Overview
Summary
10x Genomics shows strong gross margins and a robust equity structure, indicating financial stability. However, ongoing net losses and negative profit margins present significant profitability challenges, despite improvements in cash flow management.Income Statement
The company exhibits a strong gross profit margin of around 68.8% TTM, indicating efficient cost management relative to revenue. However, the net profit margin is negative, reflecting ongoing losses due to high operating expenses. Revenue growth has been modest at 2.3% TTM, and the negative EBIT and EBITDA margins highlight profitability challenges.65
Positive
Balance Sheet
The balance sheet shows a strong equity position with an equity ratio of 78.2% TTM, signifying financial stability. The debt-to-equity ratio is low at 0.11, indicating low leverage. However, the return on equity is negative, reflecting consistent net losses which impact shareholder returns.72
Positive
Cash Flow
The company has shown improvement in free cash flow, turning positive to $44.36M TTM from previous losses. The operating cash flow to net income ratio is negative, reflecting operational challenges. However, the free cash flow growth rate is notable, indicating better cash management.58
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 624.66M | 610.78M | 618.73M | 516.41M | 490.49M | 298.85M | Gross Profit |
| 429.69M | 414.48M | 409.31M | 396.02M | 416.40M | 240.38M | EBIT |
| -172.39M | -194.56M | -194.95M | -167.94M | -52.91M | -85.32M | EBITDA |
| -127.01M | -133.99M | -205.11M | -128.49M | -24.59M | -513.77M | Net Income Common Stockholders |
| -157.04M | -182.63M | -255.10M | -166.00M | -58.22M | -542.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 426.90M | 393.40M | 388.69M | 429.98M | 587.45M | 663.60M | Total Assets |
| 903.39M | 918.64M | 965.14M | 1.03B | 1.02B | 929.34M | Total Debt |
| 80.07M | 82.61M | 95.37M | 95.18M | 81.98M | 62.98M | Net Debt |
| -296.99M | -261.45M | -263.91M | -124.57M | -505.47M | -600.63M | Total Liabilities |
| 196.50M | 208.50M | 224.10M | 223.24M | 201.26M | 190.27M | Stockholders Equity |
| 706.89M | 710.13M | 741.04M | 805.74M | 817.57M | 739.07M |
| Cash Flow | Free Cash Flow | ||||
| 44.36M | -5.73M | -64.72M | -165.27M | -122.65M | -256.29M | Operating Cash Flow |
| 56.74M | 6.66M | -15.20M | -33.61M | -21.37M | -217.90M | Investing Cash Flow |
| -45.16M | -32.63M | 133.49M | -350.89M | -106.73M | -38.39M | Financing Cash Flow |
| 9.70M | 10.91M | 13.67M | 15.82M | 35.30M | 468.91M |
10x Genomics Technical Analysis
Positive
10.87
Price Trends
8.91
Positive
10.11
Positive
13.61
Negative
Market Momentum
0.52
Negative
63.19
Neutral
82.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXG, the sentiment is Positive. The current price of 10.87 is above the 20-day moving average (MA) of 9.64, above the 50-day MA of 8.91, and below the 200-day MA of 13.61, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 82.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXG.
10x Genomics Risk Analysis
10x Genomics disclosed 70 risk factors in its most recent earnings report. 10x Genomics reported the most risks in the "Tech & Innovation" 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
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.75B | ― | -0.25% | ― | 9.37% | 95.72% | |
61 Neutral | $1.37B | ― | -22.03% | ― | -0.13% | 42.17% | |
61 Neutral | $270.05M | ― | -19.80% | ― | 4.88% | 37.87% | |
60 Neutral | $1.91B | 38.75 | -16.61% | ― | 48.81% | 72.54% | |
59 Neutral | $1.53B | ― | -43.33% | ― | 22.29% | -32.89% | |
56 Neutral | $195.15M | ― | -60.75% | ― | 4.66% | 11.33% | |
54 Neutral | $5.25B | 3.27 | -44.35% | 6.27% | 16.79% | -0.10% |
* Healthcare Sector Average
Performance Comparison
TXG
10x Genomics
10.87
-9.09
-45.54%
HCAT
Health Catalyst
3.65
-2.39
-39.57%
SDGR
Schrodinger
21.05
2.10
11.08%
CERT
Certara
10.57
-2.90
-21.53%
WGS
GeneDx Holdings
64.43
37.53
139.52%
SOPH
SOPHiA GENETICS
3.04
-1.66
-35.32%
10x Genomics Corporate Events
Executive/Board ChangesShareholder Meetings
10x Genomics Elects Directors at Annual Meeting
Neutral
Jun 5, 2025
On June 3, 2025, 10x Genomics held its annual stockholders’ meeting via webcast, with a quorum of approximately 87.7% of eligible votes. The meeting resulted in the election of two Class III directors for a three-year term and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
The most recent analyst rating on (TXG) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on 10x Genomics stock, see the TXG Stock Forecast page.
Legal Proceedings
10x Genomics Settles Litigation with Bruker Corporation
Neutral
May 14, 2025
On May 12, 2025, 10x Genomics, Inc. reached a settlement and licensing agreement with Bruker Corporation, resolving all global litigation and proceedings between the parties. This agreement follows a series of lawsuits initiated by 10x Genomics against NanoString Technologies, Inc., which were inherited by Bruker after acquiring certain NanoString assets in May 2024, and is expected to lead to the dismissal of all claims within five days of the agreement date.
The most recent analyst rating on (TXG) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on 10x Genomics stock, see the TXG Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
10x Genomics Announces Workforce Reduction to Cut Costs
Negative
May 8, 2025
On May 6, 2025, 10x Genomics announced a reduction in its global workforce by approximately 8% to decrease costs and align with strategic priorities, estimating related expenses between $5.5 million and $6.5 million. The company reported first-quarter 2025 revenue of $154.9 million, a 10% increase from the previous year, driven by a patent litigation settlement. Despite a decrease in instrument revenue, 10x Genomics plans to reduce operating expenses by over $50 million in 2025 and has unveiled new product launches and a partnership with Arc Institute to enhance its market position.
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.