10x Genomics delivered results in Q3 that exceeded Wall Street’s expectations, driven by robust demand in spatial biology and a steady performance in single-cell consumables. Management attributed the outperformance to strong adoption of the Xenium platform, which saw double-digit consumable growth, as well as the successful launch of new single-cell assays like Flex and On-Chip Multiplexing. CEO Serge Saxonov highlighted that despite continued macroeconomic challenges and cautious customer spending, both the number of runs and average spend per run increased, particularly in spatial, while ongoing cost controls improved operating margins.
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10x Genomics (TXG) Q3 CY2025 Highlights:
- Revenue: $149 million vs analyst estimates of $142.4 million (1.7% year-on-year decline, 4.6% beat)
- Adjusted EPS: -$0.02 vs analyst estimates of -$0.07 (67.4% beat)
- Adjusted EBITDA: $3.44 million vs analyst estimates of -$33.68 million (2.3% margin, significant beat)
- Revenue Guidance for Q4 CY2025 is $156 million at the midpoint, above analyst estimates of $150.7 million
- Operating Margin: -21.6%, up from -27.4% in the same quarter last year
- Market Capitalization: $2.11 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 Q3 Earnings Call
- Madeline Mollman (Wolfe Research): Asked about the revenue mix shift between instruments and consumables in Q4 and how government shutdown risks were factored into guidance. CFO Adam Taich explained instrument sales may see a slight uptick and that NIH funding uncertainties were incorporated into the outlook.
- Puneet Souda (Leerink Partners): Inquired about the impact of lower per-sample pricing from new Flex v2 assays and the elasticity of demand. CEO Serge Saxonov highlighted volume growth is offsetting price reductions and confirmed that strategy has been validated by customer adoption trends.
- Dan Arias (Stifel): Sought details on the respective contributions of Xenium and Visium in spatial consumables. Saxonov noted customer enthusiasm and usage are increasingly concentrated in Xenium, with both the number of runs and price per run trending upward.
- Kyle Mikson (Canaccord): Asked about the competitive landscape following a large competitor’s acquisition and whether 10x Genomics can match the scale and integration ambitions organically. Saxonov emphasized the company’s leading technology and consistent customer preference based on performance and breadth.
- David Westenberg (Piper Sandler): Questioned the sustainability of strong spatial performance in Europe. Saxonov cautioned against over-emphasizing quarterly fluctuations but indicated the positive trend is expected to continue.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) the adoption pace of next-generation Chromium Flex and Xenium protein offerings, (2) sustained volume and pricing trends in spatial consumables, especially as translational research use cases expand, and (3) signs of stabilization or improvement in academic, government, and pharma R&D funding. Execution on product innovation and customer workflow integration will also be key to monitoring.
10x Genomics currently trades at $16.65, up from $12.99 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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