10x Genomics reported second-quarter revenue of $151 million, including $1.6 million in license and royalty revenue tied to its settlement with Takara Bio. Excluding non-recurring settlement revenue in both periods, revenue was $149.4 million, up 3% from the prior-year quarter.
Chief Executive Officer and Co-Founder Serge Saxonov said the quarter was marked by customer interest in Atera, the company’s new spatial biology platform. The company said booked Atera orders as of the end of the second quarter had already “greatly exceeded” its expectation to ship about 40 systems during 2026, although its shipment forecast remained unchanged as production ramps.
Consumables Growth Offset by Instrument Declines
Chief Financial Officer Adam Taich said Xenium was the main driver of spatial consumables growth, though both Xenium and Visium consumables posted sequential growth. Saxonov said Xenium utilization remained strong during the quarter.
Instrument revenue, however, declined 47% year over year. Chromium instrument revenue fell 46%, while spatial instrument revenue declined 48%, primarily because of fewer systems sold. Management attributed the decrease in spatial instrument sales to customers holding off on purchases of existing products while awaiting Atera.
Revenue performance varied by region. Excluding non-recurring license and royalty revenue, revenue in the Americas rose 6% and revenue in Europe, the Middle East and Africa increased 15%. Asia-Pacific revenue declined 19%, reflecting a comparison against roughly $4 million in China purchasing that had been pulled forward in the prior-year period ahead of potential tariff changes.
Atera Orders Exceed Expectations Ahead of Commercial Shipments
Atera is designed to provide spatial whole-transcriptome profiling with single-cell sensitivity at scale. Saxonov said the company has received broad early interest from universities, academic medical centers and biopharmaceutical companies across oncology, neuroscience, autoimmune and inflammatory disease, cardiometabolic research, kidney biology and transplant research.
“The constraint is actually shifting the manufacturing capacity to ship the units in the second half of the year,” Saxonov said in response to an analyst question about why the company was maintaining its approximately 40-unit shipment outlook.
The company expects Atera shipments to be weighted heavily toward the fourth quarter. Taich said Atera instruments alone are expected to account for most of the implied sequential revenue increase from the third to the fourth quarter, with consumables and normal seasonal trends accounting for the remainder.
Management expects a modest sequential decline in total revenue in the third quarter as the spatial product transition continues. Taich said the expected decline reflects lower demand for current spatial instruments and some consumables as customers prepare to receive Atera systems.
10x Genomics also plans to begin processing customer samples through its Catalyst Research Services program alongside Atera’s commercial availability. The program is intended to give customers access to the platform for pilot studies, ongoing research work and projects conducted by organizations that do not yet have an Atera instrument.
Saxonov said the Atera roadmap includes workflow automation, base-by-base spatial sequencing and protein multi-omics. During the quarter, the company acquired Proteintech Genomics, which it said brings protein-measurement technologies that can be used in a multi-omic context.
Single-Cell Strategy Centers on Flex APEX and AI Applications
Management said adoption of Flex APEX has contributed to higher single-cell reaction volumes, particularly in biopharmaceutical and translational research applications involving large-scale perturbation experiments. Saxonov said the company expects the large majority of customers that plan to transition to Flex APEX from its other products to do so by year-end.
He also said whole-blood workflows introduced by the company can support longitudinal studies, distributed sample collection and research involving archived samples. According to management, distributed sample collection can lead to more centralized processing at core laboratories and service providers, reducing the need to place instruments at individual laboratories.
Taich noted that Chromium instrument revenue represents about 2% of company sales, distinguishing instrument placements from demand for the broader Chromium platform and consumables.
10x Genomics described artificial intelligence as a structural demand driver for its products, as researchers increasingly generate single-cell and spatial data to train biological models. Saxonov said AI-related demand is becoming pervasive across customer segments, though the company did not quantify revenue directly attributable to AI applications.
The company said it sees potential for its technologies in AI-enabled drug discovery, particularly in target identification and patient selection. Saxonov also said advances in agentic AI may lower the bioinformatics barrier for researchers analyzing complex biological datasets.
Margins Improve and Full-Year Revenue Outlook Rises
Second-quarter gross margin rose to 74% from 72% a year earlier. Taich said the improvement reflected lower manufacturing costs, including $2.6 million of tariff refunds, and lower inventory write-downs. Excluding non-recurring settlement revenue, gross margin increased to 74% from 67% in the prior-year quarter.
Total operating expenses were $132.1 million, compared with $95 million in the prior-year period. The periods included gains from patent-litigation settlements of $3.4 million in 2026 and $40.7 million in 2025. Excluding those gains, operating expenses were approximately flat year over year.
The company ended the quarter with $552 million in cash, cash equivalents and marketable securities, up $105 million from a year earlier and $12 million sequentially.
10x Genomics raised its full-year 2026 revenue outlook to a range of $610 million to $630 million. Excluding non-recurring patent-litigation settlement revenue in both 2026 and 2025, the outlook represents annual growth of 2% to 5%.
Management said its guidance assumes that academic-market conditions remain broadly consistent with current trends. Saxonov said funding sentiment has improved somewhat, but purchasing conditions remain tenuous as funding allocation processes, grant reviews and order processing continue to delay spending decisions.
About Xenon Pharmaceuticals (NASDAQ:XENE)
Xenon Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company dedicated to discovering and developing novel, small‐molecule drugs targeting ion channels in the central and peripheral nervous system. The company’s research focus centers on neurological and pain disorders—including epilepsy, migraine, and neuropathic pain—by modulating key ion‐channel proteins to restore normal neuronal function. Xenon’s scientific platform draws upon advances in ion‐channel biology and structure‐based drug design to identify and optimize therapeutic candidates with the potential for improved safety and efficacy profiles compared with existing treatments.
The company’s pipeline comprises multiple preclinical and clinical programs.
