10x Genomics (TXG) AI Stock Analysis

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10x Genomics

(NASDAQ:TXG)

Select Model

Neutral 52 (OpenAI - 4o)

Rating:52Neutral

Price Target:

$13.50

▲(3.53% Upside)

10x Genomics' overall stock score reflects a mix of strengths and challenges. Financial performance is hindered by profitability issues despite solid revenue growth and cash flow improvements. The earnings call provided some optimism with strategic advancements and a favorable litigation settlement, but ongoing challenges in the funding environment and declining instrument sales weigh on the outlook. Technical indicators suggest a neutral trend, while valuation remains a concern due to negative earnings.

Positive Factors

Revenue Growth

Consistent revenue growth, excluding one-time settlements, indicates strong demand for genomic solutions, supporting long-term business expansion.

Cash Flow Improvements

Improved cash flow management enhances financial stability, providing resources for strategic investments and operational resilience.

Strategic Acquisitions

Strategic acquisitions expand technological capabilities and market reach, positioning the company for future growth in genomic research.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment and growth, impacting long-term financial health and shareholder returns.

Declining Instrument Revenue

Significant decline in instrument sales suggests weakening demand or competitive pressures, affecting revenue stability and growth potential.

Challenging Funding Environment

Uncertain funding environment limits customer spending, potentially slowing adoption of new technologies and impacting revenue growth.

10x Genomics (TXG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.62B

Dividend YieldN/A

Average Volume (3M)2.77M

Price to Earnings (P/E)―

Beta (1Y)1.63

Revenue Growth2.02%

EPS Growth65.33%

CountryUS

Employees1,306

SectorHealthcare

Sector Strength45

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)0.28

Shares Outstanding114,411,470

10 Day Avg. Volume2,461,469

30 Day Avg. Volume2,770,834

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.67

Enterprise Value/Revenue1.68

Enterprise Value/Gross Profit2.41

Enterprise Value/Ebitda-19.96

Forecast

1Y Price Target

$14.92

Price Target Upside14.42% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering13

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 through the sale of its genomic sequencing systems, consumables, and related software products. The company's revenue model is based on a combination of product sales and recurring revenue from consumables, which are used in conjunction with its systems. Key revenue streams include sales of the Chromium System, various reagents, and software licenses that support data analysis and interpretation. Additionally, 10x Genomics benefits from strategic partnerships with research institutions and pharmaceutical companies, enhancing its market reach and driving sales through collaborative research initiatives. The increasing demand for genomic research and personalized medicine further contributes to its earnings, as more organizations invest in advanced genomic technologies.

10x Genomics Key Performance Indicators (KPIs)

Any

Revenue by Geography

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.

Chart Insights10x Genomics is experiencing mixed geographic performance. The Americas and APAC regions saw revenue declines in Q4 2024, with the Americas down 16% and APAC down 5%, reflecting broader market challenges and NIH funding uncertainties. In contrast, EMEA and China showed resilience, with EMEA maintaining steady growth. Despite these regional disparities, the company is optimistic about 2025, focusing on product innovation and expanding biopharma revenue. However, potential NIH funding cuts remain a significant risk, potentially impacting revenue by up to $15 million.

Data provided by:

Main Street Data

10x Genomics Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted a mix of positive developments, such as a favorable litigation settlement and growth in spatial consumables, alongside challenges like declining instrument revenue and a difficult funding environment. While there are areas of growth and strategic advancements, the ongoing challenges in the academic and CapEx environment present significant hurdles.

Q2-2025 Updates

Positive Updates

Favorable Patent Litigation Settlement

10x Genomics settled worldwide patent litigation with Bruker on favorable terms, receiving an upfront payment of $68 million, contributing to both operating expenses and license and royalty revenue.

Strong Performance in China

There was a 41% year-over-year increase in APAC revenue, driven by strong performance in China, which benefited from a temporary pull forward in purchasing activity.

Growth in Spatial Consumables Revenue

Spatial consumables revenue increased by 24%, primarily driven by Xenium consumables performance.

Financial Stability and Cash Increase

10x Genomics increased its cash balance by $40 million during the quarter, excluding settlement-related payments.

New Product Launches

Launch of Visium HD 3 Prime and HD cell segmentation capabilities, with upcoming products like Visium HD XL and Xenium RNA plus protein expected to enhance spatial analysis.

Negative Updates

Decline in Chromium Consumables Revenue

Chromium consumables revenue declined by 9%, primarily due to lower average reaction prices.

Significant Decrease in Instrument Revenue

Total instrument revenue decreased by 39%, with Chromium instrument revenue down 35% and spatial instrument revenue down 42%.

Challenging Academic Funding Environment

The academic funding landscape remains uncertain with weaker grant disbursements and extended project timelines affecting customer spending.

U.S. Revenue Decline

Americas revenue was down 15% year-over-year, despite a 7% sequential increase.

Ongoing CapEx Constraints

Customers are facing increased scrutiny on purchases and longer approval timelines, leading to delays in project starts and heightened price sensitivity.

Company Guidance

During the 10x Genomics Second Quarter 2025 Earnings Conference Call, the company reported a total revenue of $173 million for the quarter, with a notable $68 million recognized upfront from settling worldwide patent litigation with Bruker, which contributed to both operating expenses and license and royalty revenue. Excluding this settlement, revenue was $146 million. The company increased its cash balance by $40 million, not including settlement-related payments. The academic funding landscape remains challenging, with cautious customer spending due to shifting policies and weaker grant disbursements. Despite this, signs of robust underlying demand for single-cell solutions were noted, with Chromium reaction volumes growing year-over-year and sequentially. The company achieved a gross margin of 72%, which included the settlement impact, while operating expenses decreased to $95 million. The acquisition of Scale Biosciences was highlighted as a strategic move to enhance capabilities and broaden access to single-cell analysis. Looking forward, 10x Genomics expects third-quarter revenue to range between $140 million and $144 million, taking into account a $4 million revenue pull-forward in China.

10x Genomics Financial Statement Overview

Summary

10x Genomics shows moderate revenue growth and efficient cost management with a strong gross profit margin. However, profitability remains a concern with negative net profit and EBIT margins, and challenges in generating returns on equity. Recent improvements in cash flow are promising, indicating potential for future financial stability.

Income Statement

Neutral

10x Genomics shows moderate revenue growth with a 3.17% increase in TTM, but profitability remains a concern with negative net profit and EBIT margins. The gross profit margin is strong at 69.5%, indicating efficient cost management. However, consistent net losses and declining EBIT margins highlight ongoing operational challenges.

Balance Sheet

Neutral

The company maintains a low debt-to-equity ratio of 0.11, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating profits from shareholders' equity. The equity ratio is healthy, reflecting a strong capital structure, but profitability issues persist.

Cash Flow

Neutral

Cash flow performance is improving, with a 28.2% growth in free cash flow and a positive operating cash flow to net income ratio. Despite historical negative free cash flow, recent improvements suggest better cash management. The free cash flow to net income ratio indicates effective conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	644.47M	610.78M	618.73M	516.41M	490.49M	298.85M
Gross Profit	447.88M	414.48M	409.31M	396.02M	416.40M	240.38M
EBITDA	-54.18M	-133.99M	-205.11M	-128.49M	-24.59M	-513.77M
Net Income	-84.60M	-182.63M	-255.10M	-166.00M	-58.22M	-542.73M
Balance Sheet
Total Assets	979.97M	918.64M	965.14M	1.03B	1.02B	929.34M
Cash, Cash Equivalents and Short-Term Investments	447.26M	393.40M	388.69M	429.98M	587.45M	663.60M
Total Debt	86.74M	82.61M	95.37M	95.18M	81.98M	62.98M
Total Liabilities	206.69M	208.50M	224.10M	223.24M	201.26M	190.27M
Stockholders Equity	773.28M	710.13M	741.04M	805.74M	817.57M	739.07M
Cash Flow
Free Cash Flow	56.88M	-5.73M	-64.72M	-165.27M	-122.65M	-256.29M
Operating Cash Flow	66.95M	6.66M	-15.20M	-33.61M	-21.37M	-217.90M
Investing Cash Flow	-58.04M	-32.63M	133.49M	-350.89M	-106.73M	-38.39M
Financing Cash Flow	8.62M	10.91M	13.67M	15.82M	35.30M	468.91M

10x Genomics Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price13.04

Price Trends

50DMA

13.26

Negative

100DMA

11.63

Positive

200DMA

11.93

Positive

Market Momentum

MACD

-0.06

Positive

RSI

47.62

Neutral

STOCH

40.77

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXG, the sentiment is Neutral. The current price of 13.04 is below the 20-day moving average (MA) of 13.52, below the 50-day MA of 13.26, and above the 200-day MA of 11.93, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TXG.

10x Genomics Risk Analysis

10x Genomics disclosed 71 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WGS	69 Neutral	3.72B	6,930.75	0.51%	―	48.70%	0.00%
OMCL	66 Neutral	1.44B	63.53	1.83%	―	6.39%	0.00%
HNGE	63 Neutral	4.46B	-10.42	-2.86%	―	43.35%	-430.79%
TXG	52 Neutral	$1.62B	―	-11.30%	―	2.02%	65.33%
SDGR	50 Neutral	1.43B	-7.84	-52.89%	―	18.59%	10.96%
SOPH	50 Neutral	224.36M	-3.02	-95.70%	―	7.31%	-7.49%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

TXG

10x Genomics

13.04

-9.64

-42.50%

OMCL

Omnicell

31.34

-13.28

-29.76%

SDGR

Schrodinger

19.45

-0.40

-2.02%

WGS

GeneDx Holdings

129.60

89.20

220.79%

SOPH

SOPHiA GENETICS

3.32

-0.51

-13.32%

HNGE

Hinge Health, Inc. Class A

56.91

16.75

41.71%

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.Date of analysis: Sep 19, 2025