10x Genomics, Inc.

Thank you for standing by. My name is Carly and I will be your conference operator today. At this time, I would like to welcome everyone to the 10X Genomics fourth quarter and full year 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, Press star 1 again. Thank you. I would now like to turn the call over to Cassie Corneau, Senior Director, Investor Relations and Strategic Finance. Please go ahead.

Thank you, and good afternoon, everyone. Earlier today, 10X Genomics released financial results for the fourth quarter and full year ended December 31, 2025. If you have not received this news release, or would like to be added to the company's distribution list, please send an email to investors at 10xgenomics.com. An archived webcast of this call will be available on the investor tab of the company's website, 10xgenomics.com, for at least 45 days following this call. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward-looking statements. Additional information regarding these risks, uncertainties, and factors that could cause results to differ appears in the press release 10X Genomics issued today and in the documents and reports filed by 10X Genomics from time to time the Securities and Exchange Commission. 10X Genomics disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. Joining the call today are Serge Saksonov, our CEO and co-founder, and Adam Tate, our Chief Financial Officer. We will host a question and answer session after our prepared remarks. We asked analysts to please keep to one question so that we may accommodate everyone in the queue. With that, I will now turn the call over to Serge.

Thanks, Cathy, and good afternoon, everyone. Today, I will start with an overview of our Q4 and 2025 performance. I will then talk about some of the key trends driving our business and how they position us well for future growth. Adam will then talk through the financials in more detail. We delivered $166 million in revenue in the fourth quarter, exceeding the high end of our guidance range, and closed the year with $599 million in revenue, excluding $44 million of upfront revenue related to patent litigation settlements. In the fourth quarter, the operating environment remained largely unchanged from Q3. Customer spending remains subdued and capital equipment purchases remain particularly constrained. The uncertainty in research funding dynamics continues to impact customer sentiment and timing of purchasing decisions. Despite this challenging backdrop, we saw a modest budget flush toward the end of the quarter, and we continue to be encouraged by the solid underlying demand for our solutions. As I reflect on 2025 overall, I'm extremely proud of how the team executed throughout the year. While 2025 was challenging and at times highly unpredictable for our customers and the broader life sciences ecosystem, the team delivered consistently quarter after quarter. We made steady progress across the fundamental drivers of the business, advanced our product roadmap, and strengthened our financial positions. First, we saw strong momentum in key metrics that are driving the fundamentals of the business. Single-cell consumables volumes grew at a double-digit rate each quarter, driven primarily by adoption of our newer, lower-cost products, including flex and on-chip multiplexing. These products have expanded access, enabled new applications, and supported increased experimental volume. In spatial, we delivered double-digit consumables revenue growth for the year. driven by Xenium momentum. Strong demand for Xenium translated into meaningful customer expansion throughout the year. At the same time, existing customers, including the earliest and largest users, continued to ramp their utilization. We are encouraged to see customers exploring new applications, running more experiments, and expanding the scope of their studies. Second, we delivered multiple product launches across both single-cell and spatial. Compared to even just two years ago, we have vastly expanded the capabilities of our platforms through continuous innovation. Within single-cell, the launch of our next-generation Flex assay in 2025, now branded as Flex Apex, represents a meaningful step change in the capabilities of the Chromium platform. Flex Apex combines exceptionally high performance with flexible inputs, including compatibility with FFP and fixed whole blood. It supports both small exploratory experiments as well as ones with high sample counts and large numbers of cells, making it well-suited for massive scale studies. Flex APEX delivers these features at a lower cost per experiment and is enabling expanded access to single cell, driving increased reaction volumes and supporting broader adoption across our customer base. Over a short time, we believe FLEX has become a foundational assay for several of the most important growth areas in the field, including large-scale AI and virtual cell efforts, translational cohort studies, and biopharma discovery and development workflows. As a result, Flex became our most popular single-cell assay by volume in the fourth quarter. We continue to hear strong feedback from customers on its ability to enable larger, more ambitious studies that were previously impractical. We look forward to seeing what our customers will accomplish as these studies progress. We also had meaningful launches across our spatial platforms in 2025. Within Visium, we launched Visium HD 3 Prime to enable researchers to conduct whole transcriptome analysis across a broader range of applications and sample types. We also launched HD cell segmentation to address a key challenge in spatial analysis, helping customers visualize tissue structure in more precise detail. Within Xenium, we launched RNA and protein, enabling multimodal analysis on the same tissue section in a single integrated workflow. Together, these launches significantly expand the capabilities of our Spatial portfolio. As I mentioned last quarter, when it comes to Spatial, we have seen a strong and growing preference among our customers towards Xenium over other approaches. This trend has continued and will likely accelerate going forward. It is a reflection of both how well the technology works, as well as the abundance of insights that scientists are gaining from the platform. Based on the feedback from our customers, it's becoming clear Xenium is the best choice for the vast majority of customers interested in spatial. And finally, we meaningfully strengthened our balance sheet over the course of the year. We grew our cash balance by more than $100 million year-over-year, reflecting disciplined cost management and focused execution across the business. We intend to continue to effectively manage costs and strategically invest in innovation and long-term growth. As we look ahead to 2026 and beyond, we believe we are well-positioned to build on the progress we have made with several trends propelling growth going forward. there has been rapid parallel progress in AI and in the technologies used to measure biology. These two trends are highly complementary. Advances in single-cell and spatial technologies have increased scale, lowered costs, and made it possible to generate very large, high-quality biological data sets, while advances in AI are creating new demands for that data. Importantly, this represents a shift in how research is conducted, with the AI increasingly acting as a driver of data generation rather than just a downstream analysis tool. We're seeing growing interest in large, well-controlled studies, including perturbation-based experiments designed to capture complexity and resolve causality in biological systems. The partnerships we have announced over the past year exemplify and validate these trends. We're supporting the Chan Zuckerberg Initiative's Billion Cell Project, which is generating unprecedented volumes of single-cell data to fuel AI-driven biological discovery. We're also working with the Art Institute on the Virtual Cell Atlas, using large-scale perturbation data generated on our platforms to train and validate next-generation models of cell behavior. Our collaboration with the Cancer Research Institute is focused on building high-quality, well-controlled datasets to better understand immune responses and accelerate progress in immune oncology. Together, these efforts illustrate how our platforms are becoming foundational for AI applications in biology. Another area that has become increasingly important for us and one we see as a meaningful growth driver going forward is translational research. We're seeing growth in translational research for three fundamental reasons. First, in multiple therapeutic areas like oncology and autoimmunity, we have an increasing number of therapies, but only a limited understanding of which therapies are appropriate for which patient. Second, there is increasing evidence from literature that single cell and spatial have very promising approaches for discovering actionable biomarkers and signatures of response. Third, our platforms have made big advances in scale, cost, and robustness, as well as in compatibility with critical clinical samples, most importantly FFP and whole blood. It is now straightforward to run large-scale cohort studies. And this is precisely what many of our customers have been doing. We announced a number of initiatives last year with academic medical centers and with industry partners to undertake large-scale translational studies. Translational research is also an important driver of biopharma adoption. Single-cell and spatial technologies have relevance across the drug development continuum. But the largest opportunity lies in later translational stages, where biomarker strategies are essential to understand patient response and potential toxicity. This is where our solutions can meaningfully improve the probability of success and where we expect to increasingly focus our efforts. And finally, as this sensational work has been picking up, we're hearing growing interest from customers in applying our technologies to patient care. Based on that, as well as a growing body of scientific literature, we believe there is a significant potential for single-cell and spatial biology in diagnostic applications. Realizing that potential will require the generation of robust clinical evidence and deployment of these technologies in the clinical setting. To enable clinical applications of single cell and spatial analysis, we're pursuing two parallel paths. First, we're continuing to support our customers in generating clinical evidence, and we'll collaborate with them to enable clinical deployment in the future. In parallel, we believe we ourselves are in a unique position to accelerate the arrival of some of the highest impact diagnostics, given our technology leadership, understanding of applications, and strong position in the research ecosystem. As part of the strategy, we recently announced two collaborations with leading academic medical centers to support clinical evidence generation. With Dana-Farber Cancer Institute, we're focused on tissue-based spatial profiling to support biomarker discovery and therapy selection in oncology. With Brigham and Women's Hospital, we're pursuing blood-based monitoring approaches to enable longitudinal assessment of disease activity and treatment response in autoimmune disease. We expect to expand the set of collaborations over time as we continue to build programs across various indications. We're also building out a clear laboratory to enable clinical deployment of the resulting tests. Stepping back and setting aside the current macro environment, it's hard not to be excited by our position as a company. We believe we're at the nexus of some of the most important fronts our industry has ever seen. We have a powerful innovation engine. high-performing organization and a strong balance sheet. We're focused on delivering continuous innovation across our platforms and believe 2026 will be a particularly exciting year as we advance our roadmap and bring new capabilities to our customers. I feel incredibly privileged by the position we're in and optimistic about the opportunity ahead. With that, I will turn the call over to Adam.