10x Genomics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $150.7 million for the third quarter of 2026, a 1% increase from $149.0 million in the same period of 2025.
• Gross margin improved to 75% in Q3 2026 from 67% in the prior year period, driven by lower inventory write-downs and changes in product mix.
• Operating expenses decreased 3% to $129.0 million in Q3 2026 from $132.5 million in Q3 2025, primarily due to lower personnel and lab equipment expenses, partially offset by higher litigation expenses.
• Operating loss narrowed to $16.1 million in Q3 2026 compared to $32.2 million in Q3 2025.
• Net loss was $19.4 million for Q3 2026, compared to $27.5 million in Q3 2025.
• Cash, cash equivalents, and marketable securities totaled $575.7 million as of September 30, 2026.
• For the nine months ended September 30, 2026, total revenue was $452.5 million compared to $476.8 million in the prior year period.

Guidance and Future Outlook:

• The company raised its full-year 2026 revenue guidance to a range of $625 million to $635 million, up from the previous range of $610 million to $630 million.
• Excluding non-recurring license and royalty revenue related to patent litigation settlements in 2026 and 2025, the new guidance represents 4% to 6% growth over full-year 2025.

Business Segments and Product Lines:

• Global commercial shipments of the Atera platform began, generating extraordinary early demand for research programs in discovery, translational, and biopharma research.
• Sentira, a cloud analysis platform, was introduced to process spatial data using NVIDIA accelerated computing and perform agentic AI analysis of single-cell data using Anthropic's Claude.
• Consumables revenue remained a strength driver across the broader business.
• Spatial consumables revenue increased to $41.2 million in Q3 2026 from $35.4 million in Q3 2025.
• Single Cell consumables revenue was $93.1 million in Q3 2026 compared to $92.5 million in Q3 2025.
• Total instruments revenue was $6.9 million in Q3 2026, down from $12.0 million in Q3 2025.

Management Commentary and Tone:

• CEO Serge Saxonov highlighted the start of commercial shipments of Atera as the quarter's biggest highlight, noting continued enthusiasm and excitement about placing instruments in customer hands.
• Management expressed encouragement regarding results across the broader business, driven by continued strength in consumables.
• The company stated it is positioned to benefit from biology entering a new era of AI and data maximalism, aiming to be a key enabler of progress.

Other Key Points:

• A gain on settlement of $3.4 million was recorded in the nine-month period of 2026, compared to a $49.9 million gain in the same period of 2025.
• Stock-based compensation expense for the quarter was $23.1 million, down from $25.3 million in the prior year period.
• Deferred revenue decreased to $22.96 million (current) and $8.53 million (noncurrent) as of September 30, 2026, from $23.90 million (current) and $10.50 million (noncurrent) at December 31, 2025.
• Inventory increased to $64.6 million as of September 30, 2026, from $56.3 million at December 31, 2025.
• The company will host a conference call on November 5, 2026, at 1:30 PM Pacific Time to discuss results and outlook.