10x Genomics delivered second quarter results that exceeded Wall Street’s expectations, but the market responded negatively, reflecting continued concerns about the company’s end-market dynamics. Management highlighted that growth was powered by strong adoption of new single cell and spatial biology platforms, notably Chromium Flex and Xenium. CEO Serge Saxonov explained that while consumables volume increased, especially for newer products, persistent challenges in academic and government funding extended sales cycles and led to ongoing capital equipment constraints. Saxonov cited, “The academic funding landscape remains marked by shifting policies, weaker grant disbursements and lack of clarity around future budgets, all of which are contributing to extended project timelines and cautious customer spending.”
Is now the time to buy TXG? Find out in our full research report (it’s free).
10x Genomics (TXG) Q2 CY2025 Highlights:
- Revenue: $172.9 million vs analyst estimates of $139.5 million (12.9% year-on-year growth, 24% beat)
- Adjusted EPS: $0.48 vs analyst estimates of -$0.08 (significant beat)
- Adjusted EBITDA: $40.77 million vs analyst estimates of -$41.5 million (23.6% margin, significant beat)
- Revenue Guidance for Q3 CY2025 is $142 million at the midpoint, below analyst estimates of $144.2 million
- Operating Margin: 17.4%, up from -27.3% in the same quarter last year
- Market Capitalization: $1.69 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From 10x Genomics’s Q2 Earnings Call
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Patrick Donnelly (Citi) asked about visibility into academic funding trends and customer confidence. CEO Serge Saxonov responded that, while optimism has slightly improved, customers remain cautious due to slow grant allocations and uncertain budgets, stating, "Budgets are still very much in the early phases, and it’s quite uncertain where they’re going to be."
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Daniel Arias (Stifel) questioned the strategic rationale for acquiring Scale Biosciences. Saxonov explained the move was to accelerate technology integration for larger-scale, lower-cost single cell analysis, emphasizing it is a technology acquisition to enhance the existing product portfolio.
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Madeline Mollman (Wolfe Research) inquired about the impact of lower pricing on consumables revenue and whether the Scale acquisition could intensify this trend. Saxonov acknowledged near-term pricing headwinds but reiterated that increased experiment volumes should drive long-term growth.
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Michael Ryskin (Bank of America) sought clarification on the size and sustainability of the China order pull-forward. Saxonov and Taich emphasized their strong visibility into customer inventory and said the $4 million pull-forward was a one-time effect tied to tariff timing.
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Thomas VonDerVellen (Guggenheim) asked about the company’s cost structure and readiness for potential further cuts. Saxonov stated that recent headcount reductions and commercial restructuring have positioned 10x Genomics well, and management remains focused on cost discipline amid an uncertain environment.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will monitor (1) the pace of adoption and expansion of new single cell and spatial products, particularly Flex v2 and Xenium enhancements, (2) signs of improvement or further deterioration in academic and government funding, and (3) the integration and strategic impact of the Scale Biosciences acquisition. Progress in broadening product applications and customer feedback on pricing elasticity will also be important indicators of future performance.
10x Genomics currently trades at $13.79, up from $12.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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