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10x Genomics Inc (TXG)
NASDAQ:TXG
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10x Genomics
(NASDAQ:TXG)
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Rating:54Neutral
Price Target:
$13.50
▼(-0.66% Downside)
10x Genomics' overall stock score reflects moderate financial performance with strong gross margins but ongoing profitability challenges. Technical indicators show positive momentum, while valuation remains a concern due to negative earnings. The earnings call provided mixed signals, with strategic advancements offset by funding and revenue challenges.
Positive Factors
Strong Gross Margin
A strong gross margin suggests effective cost control and pricing power, which can support profitability as the company scales and manages operational costs.
Cash Flow Improvement
Improved cash flow indicates better cash management and operational efficiency, providing the company with more flexibility to invest in growth opportunities and weather financial challenges.
Strategic Acquisition
Acquiring Scale Biosciences enhances 10x Genomics' capabilities in single-cell analysis, potentially expanding its market reach and strengthening its competitive position in the genomics field.
Negative Factors
Declining Instrument Revenue
A significant decline in instrument revenue suggests challenges in product demand or market competition, which could impact long-term revenue growth and market share.
Challenging Academic Funding
Uncertainty in academic funding can lead to reduced spending by key customers, affecting sales of genomic products and potentially slowing down growth in research-driven markets.
Profitability Challenges
Ongoing profitability issues can limit the company's ability to reinvest in growth and innovation, potentially affecting its competitive position and long-term financial health.
10x Genomics (TXG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.71B
Dividend YieldN/A
Average Volume (3M)2.75M
Price to Earnings (P/E)―
Beta (1Y)1.71
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. Volume2,810,198
30 Day Avg. Volume2,745,020
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 Cap0.63
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda-19.96
Forecast
1Y Price Target
$14.57Price Target Upside7.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
10x Genomics Business Overview & Revenue Model
Company Description10x Genomics (TXG) is a biotechnology company specializing in genomic sequencing and analysis technologies that enable researchers to gain insights into complex biological systems. Founded in 2012 and headquartered in Pleasanton, California, the company operates primarily in the life sciences sector. Its core products include the Chromium System, which allows for high-throughput single-cell sequencing, and various reagents and software solutions designed for applications in genomics, transcriptomics, and epigenomics. 10x Genomics serves a diverse customer base including academic institutions, pharmaceutical companies, and biotechnology firms, facilitating advancements in precision medicine and personalized therapeutics.
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
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:
Main Street Data
Main Street Data10x Genomics Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 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
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.45
Neutral
Balance Sheet
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.55
Neutral
Cash Flow
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.60
Neutral
| 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
Positive
13.59
Price Trends
12.87
Positive
12.52
Positive
11.57
Positive
Market Momentum
0.19
Negative
58.31
Neutral
91.62
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 13.59 is above the 20-day moving average (MA) of 12.35, above the 50-day MA of 12.87, and above the 200-day MA of 11.57, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 58.31 is Neutral, neither overbought nor oversold. The STOCH value of 91.62 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 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $3.70B | 6,987.17 | 0.60% | ― | 48.70% | ― | |
| ― | $1.43B | 61.91 | 1.87% | ― | 6.39% | ― | |
| ― | $3.89B | ― | ― | ― | 43.35% | -430.79% | |
| ― | $1.66B | ― | -44.40% | ― | 18.59% | 10.96% | |
| ― | $1.71B | ― | -11.30% | ― | 2.02% | 65.33% | |
| ― | $287.21M | -3.87 | -74.09% | ― | 7.31% | -7.49% | |
| ― | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TXG
10x Genomics
13.59
-2.20
-13.93%
OMCL
Omnicell
30.54
-9.58
-23.88%
SDGR
Schrodinger
22.17
3.43
18.30%
WGS
GeneDx Holdings
130.66
46.64
55.51%
SOPH
SOPHiA GENETICS
4.20
0.64
17.98%
HNGE
Hinge Health, Inc. Class A
49.87
9.71
24.18%
10x Genomics Corporate Events
10X Genomics Balances Growth and Challenges in Earnings Call
Aug 13, 2025
The recent earnings call of 10X Genomics painted a picture of cautious optimism. The company reported strong performances in China and spatial consumables, a favorable settlement with Bruker, and strategic acquisitions. However, these positive aspects were tempered by challenges in capital expenditure spending, decreased revenue in key regions, and uncertainties in academic funding. The overall sentiment was balanced, reflecting both positive achievements and significant hurdles.
10x Genomics Reports Strong Q2 2025 Results
Aug 8, 2025
10x Genomics, Inc. is a life science technology company specializing in single cell and spatial biology solutions, providing integrated research tools to advance human health and biological understanding.
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.