10x Genomics, Inc.

Previous wording

We are a life sciences technology company focused on building innovative products and solutions to interrogate, understand and master biology. Our integrated solutions include instruments, consumables and software for analyzing biological systems at resolution and scale that matches the complexity of biology. We have launched multiple products that enable researchers to understand and interrogate biological analytes in their full biological context. Our commercial product portfolio leverages our Chromium X Series and Chromium Connect instruments, which we refer to as “Chromium instruments,” our Visium CytAssist, an instrument designed to simplify the Visium solution workflow by facilitating the transfer of transcriptomic probes from standard glass slides to Visium slides, and our Xenium Analyzer, an instrument designed for fully automated high-throughput analysis of cells in their tissue environment, which we refer to as “Spatial instruments,” and our proprietary microfluidic chips, slides, reagents and other consumables for our Chromium, Visium and Xenium solutions, which we refer to as “consumables.” We bundle our software with these products to guide customers through the workflow, from sample preparation through analysis and visualization.

Current wording

We are a life sciences technology company focused on building innovative products and solutions to interrogate, understand and master biology. Our integrated solutions include instruments, consumables and software for analyzing biological systems at resolution and scale that matches the complexity of biology. Our commercial product portfolio includes our Chromium instruments and our Visium CytAssist and our Xenium Analyzer, which we refer to as “Spatial instruments,” and our proprietary microfluidic chips, slides, reagents and other consumables for our Chromium, Visium and Xenium solutions, which we refer to as “consumables.” We bundle our software with these products to guide customers through the workflow, from sample preparation through analysis and visualization. Customers purchase instruments and consumables from us for use in their experiments. In addition to instrument and consumable sales, we derive revenue from post-warranty service contracts for our instruments.

Previous wording

Since our inception in 2012, we have incurred net losses in each year. Our net losses were $35.8 million and $133.6 million for the three and nine months ended September 30, 2024 and $93.0 million and $206.1 million for the three and nine months ended September 30, 2023, respectively. As of September 30, 2024, we had an accumulated deficit of $1.4 billion and cash and cash equivalents totaling $398.2 million. We expect to continue to incur significant expenses for the foreseeable future and to incur operating losses in the near term. We expect our expenses will increase in connection with our ongoing activities, as we:

Current wording

Since our inception in 2012, we have incurred net losses in each year. Our net losses were $34.4 million and $59.9 million for the three months ended March 31, 2025 and March 31, 2024, respectively. As of March 31, 2025, we had an accumulated deficit of $1.5 billion and cash and cash equivalents and marketable securities totaling $426.9 million. We expect to continue to incur significant expenses for the foreseeable future and to incur operating losses in the near term.

Previous wording

Comparison of the Three and Nine Months Ended September 30, 2024 and 2023

Current wording

Comparison of the Three Months Ended March 31, 2025 and 2024

Previous wording

Cost of revenue, gross profit and gross margin

Current wording

Cost of Products and Services Revenue, Gross Profit and Gross Margin

Previous wording

Research and development expenses decreased $0.3 million, or 1%, to $66.2 million for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023. The decrease was primarily driven by a decrease in personnel expenses of $1.9 million, including a $1.9 million reduction in stock-based compensation expense, and a decrease in allocated costs for facilities and information technology of $0.6 million, partially offset by an increase in laboratory materials and supplies of $2.3 million.

Current wording

Research and development expenses decreased $4.4 million, or 6%, to $64.2 million for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The decrease was primarily driven by a $3.9 million decrease in personnel expenses, including a $2.8 million decrease in stock-based compensation expense, a $1.9 million decrease in allocated costs for facilities and information technology, partially offset by an $0.8 million increase in laboratory materials and supplies.

Previous wording

Selling, general and administrative expenses decreased $0.7 million, or 1%, to $81.7 million for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023. The decrease was primarily driven by a decrease in personnel expenses of $4.5 million, including a $4.8 million reduction in stock-based compensation expense, partially offset by an increase in outside legal expenses of $2.7 million, an increase in marketing expenses related to conferences and seminars of $0.7 million, and an increase in allocated costs for facilities and information technology to support operational expansion of $0.6 million in the three months ended September 30, 2023.

Current wording

Selling, general and administrative expenses increased $4.0 million, or 5%, to $89.7 million for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The increase was primarily driven by a $3.6 million increase in outside legal expenses and a $2.0 million increase in personnel expenses, partially offset by a $1.2 million decrease in marketing expenses.

Previous wording

Interest income increased by $0.7 million or 16% to $5.0 million for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. Interest income increased by $2.2 million, or 18%, to $14.4 million for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily due to interest income generated from our cash equivalents and marketable securities during the three and nine months ended September 30, 2024 reflecting an increase in interest rates.

Current wording

Interest income decreased by $1.1 million, or 22%, to $3.7 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The decrease was primarily due to less interest income generated from our investments in marketable securities during the three months ended March 31, 2025.

Previous wording

Other expense, net decreased by $3.3 million, or 267% to $2.1 million for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. Other expense, net decreased by $5.3 million, or 123% to $1.0 million for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. These decreases were driven by realized and unrealized losses from foreign currency rate measurement fluctuations.

Current wording

Other income (expense), net increased by $3.2 million to $2.1 million other income, net for the three months ended March 31, 2025 as compared to $1.0 million other expense, net, for the three months ended March 31, 2024. These increase in other income (expense), net was driven by losses from foreign currency rate measurement fluctuations.

Previous wording

The Company’s provision for income taxes was $1.3 million and $4.3 million, respectively, for the three and nine months ended September 30, 2024, and $1.2 million and $4.0 million, respectively, for the three and nine months ended September 30, 2023. Deferred tax assets related to our domestic operations are fully offset by a valuation allowance.

Current wording

The Company’s provision for income taxes was $0.9 million and $2.1 million, respectively, for the three months ended March 31, 2025 and 2024. The decrease was primarily due to lower foreign income.

Previous wording

As of September 30, 2024, we had $398.2 million in cash and cash equivalents. We have generated negative cumulative cash flows from operations since inception through September 30, 2024, and we have generated losses from operations since inception as reflected in our accumulated deficit of $1.4 billion.

Current wording

As of March 31, 2025, we had approximately $426.9 million in cash and cash equivalents and marketable securities which were primarily held in U.S. banks. We have generated negative cumulative cash flows from operations since inception through March 31, 2025, and we have generated losses from operations since inception as reflected in our accumulated deficit of $1.5 billion.

Previous wording

We currently anticipate making aggregate capital expenditures of between approximately $15 million and $20 million during the next 12 months, which we expect to include, among other expenditures, equipment to be used for manufacturing and research and development.

Current wording

We currently anticipate making aggregate capital expenditures of between approximately $10 million and $15 million during the next 12 months, which we expect to include, among other expenditures, equipment to be used for manufacturing and research and development.

Previous wording

Our future capital requirements will depend on many factors including our revenue growth rate, research and development efforts, investments in or acquisitions of complementary or enhancing technologies or businesses, the timing and extent of additional capital expenditures to invest in existing and new facilities, the expansion of sales and marketing and international activities, legal costs associated with defending and enforcing intellectual property rights and the introduction of new products.

Current wording

Our future capital requirements will depend on many factors including our revenue growth rate, research and development efforts, investments in or acquisitions of complementary or enhancing technologies or businesses, the timing and extent of additional capital expenditures to invest in existing and new facilities, the expansion of sales and marketing and international activities, legal costs associated with defending and enforcing intellectual property rights and the introduction of new products and new versions of existing products.

Previous wording

We take a long-term view in growing and scaling our business and we regularly review acquisition and investment opportunities, and we may in the future enter into arrangements to acquire or invest in businesses, real estate, services and technologies, including intellectual property rights, and any such acquisitions or investments could significantly increase our capital needs. We regularly review opportunities that meet our long-term growth objectives.

Current wording

We take a long-term view in growing and scaling our business and we regularly review acquisition and investment opportunities, and we may in the future enter into arrangements to acquire or invest in businesses, services and technologies, including intellectual property rights, and any such acquisitions or investments could significantly increase our capital needs. We regularly review opportunities that meet our long-term growth objectives.

Previous wording

The net cash used in operating activities of $41.0 million for the nine months ended September 30, 2023 was primarily due to a net loss of $206.1 million, of which $41.4 million related to in-process research and development expense, partially offset by stock-based compensation expense of $128.0 million, depreciation and amortization of $25.8 million, amortization of leased right-of-use assets of $6.1 million, lease impairment charges of $2.8 million, realized losses on sale of marketable securities of $1.7 million, other non-cash expenses of $0.5 million and net cash inflow from changes in operating assets and liabilities of $0.3 million. The net cash inflow from operating assets and liabilities was primarily due to an increase in accrued expenses and other current liabilities of $9.2 million, an increase in deferred revenue of $6.6 million, an increase in other noncurrent liabilities of $0.6 million and a decrease in accounts receivable of $0.4 million. The net cash inflow from operating assets and liabilities was primarily offset by a decrease in operating lease liability of $5.9 million, a decrease in accrued compensation and other related benefits of $4.2 million primarily related to the prior year annual bonus payments, an increase in prepaid expenses and other current assets of $3.6 million and a decrease in accounts payable of $2.8 million due to timing of vendor payments.

Current wording

The net cash provided by operating activities of $34.4 million for the three months ended March 31, 2025 was primarily due to a net loss of $34.4 million, net cash inflow from changes in operating assets and liabilities of $28.3 million, primarily offset by stock-based compensation expense of $31.1 million, depreciation and amortization of $8.0 million and amortization of leased right-of-use assets of $1.8 million. The net cash inflow from operating assets and liabilities was primarily due to a decrease in accounts receivable of $35.3 million and a decrease in inventory of $8.1 million. The net cash inflow from operating assets and liabilities was partially offset by a decrease in accrued compensation and other related benefits of $11.7 million related to prior year annual bonus payments, an increase in prepaid expenses and other current assets of $5.5 million, a decrease in operating lease liability of $2.6 million and a decrease in accounts payable of $2.5 million.

Previous wording

The net cash provided by operating activities of $13.4 million for the nine months ended September 30, 2024 was primarily due to a net loss of $133.6 million, net cash inflow from changes in operating assets and liabilities of $2.6 million, primarily offset by stock-based compensation expense of $108.2 million, depreciation and amortization of $27.1 million, lease and asset impairment charges of $2.5 million, amortization of leased right-of-use assets of $6.0 million, and other non-cash expenses of $0.6 million. The net cash inflow from operating assets and liabilities was primarily due to an decrease in accounts receivable of $31.3 million due to timing of collections, increase in accounts payable of $10.0 million and an increase in deferred revenue of $8.1 million. The net cash inflow from operating assets and liabilities was partially offset by a decrease in accrued expenses and other current liabilities of $17.1 million primarily driven by payments related to purchase consideration and royalty payments, an increase in inventory of $19.4 million, and a decrease in operating lease liability of $9.8 million.

Current wording

The net cash used in operating activities of $15.7 million for the three months ended March 31, 2024 was primarily due to a net loss of $59.9 million, net cash outflow from changes in operating assets and liabilities of $6.3 million, primarily offset by stock-based compensation expense of $36.1 million, depreciation and amortization of $9.2 million, lease and asset impairment charges of $2.5 million, amortization of leased right-of-use assets of $2.3 million and other non-cash expenses of $0.4 million. The net cash outflow from operating assets and liabilities was primarily due to a decrease in accrued expenses and other current liabilities of $12.7 million primarily driven by a payment of $20.0 million related to purchase consideration, an increase in inventory of $9.9 million, a decrease in accrued compensation and other related benefits of $9.4 million related to prior year annual bonus payments and a decrease in operating lease liability of $3.0 million. The net cash outflow from operating assets and liabilities was partially offset by an increase in accounts receivable of $23.5 million due to timing of collections, an increase in accounts payable of $4.6 million and an increase in deferred revenue of $2.1 million.

Previous wording

The net cash provided by investing activities of $19.0 million in the nine months ended September 30, 2024 was due to proceeds from sales and maturities of marketable securities of $3.9 million and $25.8 million, respectively, partially offset by purchases of property and equipment and intangible assets of $9.7 million and $1.0 million, respectively.

Current wording

The net cash provided by investing activities of $10.6 million in the three months ended March 31, 2024 was due to proceeds from sales and maturities of marketable securities of $0.6 million and $13.0 million, respectively, partially offset by purchases of property and equipment of $2.9 million.

Previous wording

The net cash provided by financing activities of $6.4 million in the nine months ended September 30, 2024 was primarily from proceeds related to the issuance of common stock from the exercise of stock options and employee stock purchase plan.

Current wording

The net cash provided by financing activities of $0.4 million in the three months ended March 31, 2025 was primarily from proceeds related to the issuance of common stock from the exercise of stock options.

Previous wording

The net cash provided by financing activities of $8.1 million in the nine months ended September 30, 2023 was primarily from proceeds of $13.9 million from the issuance of common stock from the exercise of stock options and employee stock purchase plan, partially offset by payments on financing arrangements of $5.8 million.

Current wording

The net cash provided by financing activities of $1.6 million in the three months ended March 31, 2024 was primarily from proceeds related to the issuance of common stock from the exercise of stock options.

Previous wording

There have been no significant changes in our critical accounting policies and estimates during the nine months ended September 30, 2024 as compared to the critical accounting policies and estimates disclosed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our most recent Annual Report on Form 10-K filed with the SEC on February 15, 2024.

Current wording

There have been no significant changes in our critical accounting policies and estimates during the three months ended March 31, 2025 as compared to the critical accounting policies and estimates disclosed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our most recent Annual Report on Form 10-K filed with the SEC on February 12, 2025.