10x Genomics reported its financial results for the fourth quarter and full year of 2025, alongside an outlook for 2026. The company highlighted modest revenue growth in the final quarter of 2025, ongoing strategic partnerships, and a strong cash position as it navigates a challenging market environment. The updates also emphasize 10x Genomics’ focus on expanding its presence in AI-driven research and clinical applications, particularly in cancer and autoimmune diseases.
Key Financial and Operational Highlights
-
Revenue Performance:
- Fourth quarter 2025 revenue reached $166.0 million, up 1% from $165.0 million in Q4 2024.
- Full-year 2025 revenue totaled $642.8 million. However, excluding $44.1 million of one-time patent litigation settlement income, core revenue declined 2% to $598.7 million compared to 2024.
-
Profitability and Margins:
- Gross margin improved slightly to 68% in Q4 2025 from 67% a year earlier.
- The margin increase was driven by reduced inventory write-downs, lower royalty and warranty costs, partially offset by higher manufacturing expenses.
- Operating expenses for Q4 2025 were $132.6 million, down 18% from $160.8 million in Q4 2024, reflecting tighter cost controls.
-
Cash and Liquidity:
- The company ended 2025 with $523.4 million in cash, cash equivalents, and marketable securities.
- This represents a $130.0 million increase in liquidity compared to the prior year, strengthening the company’s financial flexibility.
Strategic Partnerships and Research Collaborations
-
Cancer Research Institute and PharosAI:
- 10x Genomics announced partnerships to develop some of the largest AI-ready datasets for cancer research.
- These collaborations leverage the company’s Chromium and Xenium platforms to convert thousands of clinical samples into detailed multimodal data, aimed at accelerating drug discovery and diagnostics.
-
Dana-Farber Cancer Institute Collaboration:
- Initiated a multi-year research project to integrate single cell and spatial tumor analysis into diagnostic workflows.
- This effort is designed to enhance cancer patient care by providing deeper insights into tumor biology.
-
Brigham & Women’s Hospital Study:
- Launched a study focused on identifying single cell blood-based biomarkers for autoimmune disease activity and treatment response.
- The goal is to support improved clinical management of autoimmune conditions through advanced molecular profiling.
Outlook and Strategic Focus
- CEO Serge Saxonov emphasized the company’s disciplined execution amid a challenging environment in 2025.
- Looking ahead to 2026, 10x Genomics plans to capitalize on multiple growth drivers, including:
- Increasing demand fueled by artificial intelligence applications in biology.
- Expansion in translational research, bridging laboratory discoveries with clinical applications.
- Emerging opportunities in clinical diagnostics, particularly in oncology and autoimmune diseases.
- The company’s product innovation and strategic partnerships are positioned to enhance its competitive edge and market penetration.
Implications for Investors
- The modest revenue growth in Q4 and the slight decline in core full-year revenue highlight ongoing market headwinds but also suggest stabilization after prior volatility.
- Improved gross margins and reduced operating expenses indicate effective cost management, which supports profitability despite revenue pressures.
- The substantial increase in cash reserves provides a strong financial foundation for continued investment in R&D and strategic collaborations.
- The focus on AI-driven datasets and clinical partnerships signals a strategic pivot toward integrating advanced technologies with practical healthcare applications, potentially opening new revenue streams.
- Investors should note that while patent litigation settlements boosted reported revenue in 2025, the underlying business showed a slight contraction, underscoring the importance of monitoring organic growth trends going forward.