10x Genomics, Inc.

Good afternoon and welcome to 10X Genomics first quarter 2026 earnings conference call. All participants are in a listen-only mode. After the speaker's remarks, we will conduct a question and answer session. To ask a question at this time, you'll need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Cassie Corneau, Senior Director, Investor Relations and Strategic Finance. Thank you. Please go ahead.

Thank you, and good afternoon, everyone. Earlier today, 10x Genomics released financial results for the first quarter ended March 31st, 2026. 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 with 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 Saxinov, our CEO and co-founder, and Adam Taich, our Chief Financial Officer. We will host a question and answer session after our prepared remarks. We ask 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. What a really nice start to the year, with solid sales momentum, a step-change advance in our product roadmap, and strong execution across the business. Revenue for the first quarter was $151 million, representing 9% growth over Q1 2025, when excluding the non-recurring settlement revenue in the prior year period. In single-cell, we again saw double-digit growth in consumable reaction volumes, driven by Flex APEX. As we have expected, and as we have been seeing over the past several quarters, our new products with more accessible pricing have been unlocking new ways of single-cell demand. Similarly, in Spatial, we again delivered double-digit growth in consumables revenue, which was driven by Xenium momentum. Spatial biology remains in the very early stages of adoption, and the vast majority of the opportunity is still untapped. The biggest highlight since our last call is without a question the launch of our new instrument platform, Atera. ATERA represents the most significant product introduction in our history. Among many other benefits, it enables, for the first time, spatial whole transcriptome analysis with single-cell sensitivity at scale. We believe ATERA is poised to redefine how biology is measured and understood. We went into the launch expecting a very strong response from researchers and the broader scientific community. And what we have heard so far has been extraordinary. Before I talk about what a Terra is and what it does, I want to spend a moment on why we built it. The central challenge of biology is that it's very complex. It is complex in just about every system, in just about every sample. Biological systems comprise massive numbers of molecules and cells interacting with each other in a bewildering diversity of ways. Addressing this complexity requires tools that can measure biology at large scale and high resolution. And historically, technologies available to researchers have lacked the necessary scale and resolution. Furthermore, the tool set of biology has been very fragmented. We have used one set of technologies for analyzing tissues, another for measuring cells, and yet another for working with molecules. But that's not how biology works. It works by specific cells expressing specific molecules in specific locations within tissue. That has always been the promise of spatial biology. It represents the convergence of the different tools for analyzing biological systems. It entails measuring molecules, cells, and tissues together, preserving the full context at massive scale and incredibly high resolution. However, until now, despite many advances, spatial biology has been fundamentally constrained by the limitations of existing technologies. Researchers have been forced into frustrating trade-offs between the critical attributes they care about, across throughput, specificity, sensitivity, scale, performance. Again, in one area, they had to compromise in others. We built ATERA to address all of these trade-offs and to unlock the full potential of spatial biology. ATERA is the product of a long-held conviction about where biology needed to go and years of deliberate work to get there. It is poised to become the large-scale discovery engine whether for basic research, AI-driven science, or translational applications. We believe that now spatial will increasingly become the default approach for analyzing biological samples. It is important to appreciate that Atera brings together a set of capabilities that until recently were not even thought possible for a single platform. It delivers very high levels of plugs, including whole transcriptome, at sensitivity comparable to FLEX-APEX, the gold standard for single-cell analysis. Enabled by refined probe chemistry, it delivers high specificity and data quality, and non-negotiable for researchers and their collaborators to be able to trust the data. And the Terra delivers a step change in throughput. With a single instrument capable of processing up to 800 whole transcriptome, one centimeter squared samples per year, or more than 3,000 if using the targeted ATERA select panels. This increase in throughput now enables large cohort studies at a pace and scale that were not previously feasible. Equally important is the user experience. ATERA builds on a proven Xenium workflow, which is already highly robust, widely adopted, and well-regarded by our customers. ATERA runs on standard off-the-shelf class slides, which makes the platform inherently scalable across labs and experiments and enables distributed sample collection. Using standard slides also allows customers to access archived samples from biobanks and other repositories. In addition, Attera uses a universal sample preparation approach that works across tissue types, supporting different sample types on the same slide to provide extra flexibility and scalability. We have also developed powerful computational and software tools so that customers can effectively work with the data. To handle spatial biology at this unprecedented scale, the most computationally intensive part of the workflow, image processing, is performed directly on the instrument, driven by high-performance onboard GPUs and optimized algorithms. Data is processed efficiently at the source and translated into actionable biology in real time. From there, Customers have the flexibility to use their own on-premise infrastructure or leverage our 10X cloud platform for analysis and collaboration, ensuring that Atera is not just generating more data, but also making that data easy to use. We built Atera to be a long-duration, upgradable platform, and we intend to continue delivering new capabilities over the years ahead. The roadmap on the platform includes workflow automation designed to enable true sample and data out capability protein multiomics, in-situ sequencing for spatial mutation and variant detection, and continued development over a 10X cloud platform for multi-sample analysis and collaboration. As I mentioned, the early customer response has been extraordinary. We had high expectations coming into this launch, and the reception has exceeded even those expectations. One customer told us that this was the largest technology leap they'd seen in their career. Another called Atera's capabilities the holy grail. Others, to convey their enthusiasm, have used the kind of language that would not be appropriate for me to repeat in this forum. And this enthusiasm is translating directly into demand as we take pre-orders ahead of initial shipments expected in the second half of 2026. Even in a challenging capital equipment environment, customer conversations have immediately centered on how to incorporate Atera into their research programs. not whether to buy it. In many cases, the discussion starts from the assumption that this is a must-have platform and quickly moves to multiyear programs, large cohort studies, and the scale of inside generation that is now within reach. ATERA fundamentally expands our addressable market across three high-growth segments. In discovery research, initiatives like the Human Cell Atlas can now map entire organs and tissues at unprecedented scale and speed. In translational research, clinical cohorts can be comprehensively characterized to understand patient response patterns, something our collaborators are already validating, as shown by Carl June at AACR. And critically, large AI models represent an entirely new market where ATERA's billion-cell-per-year capability enables creation of virtual models at a new level of scale and sophistication. Each segment unlocks distinct applications while reinforcing our position as the essential platform for spatial biology. As we have been saying for some time, we believe AI represents a significant and structural tailwind for our business. The potential to transform our understanding of biology is enormous, but progress depends critically on generating vastly more of the right kinds of data. From the beginning, we have built our platforms precisely for that purpose. Products like Flex, Apex, and now Atera exemplify this imperative and are seeing intense interest from customers building AI models of biology. The partnerships we have announced over the past year reflect and reinforce these trends, including the Chan Zuckerberg Initiative on the Billion Cells Project, the ARC Institute around the Virtual Cell Challenge, and Zyrus Therapeutics to build the largest perturbation dataset ever reported. In just last month, We announced a partnership with Bioptimus, an AI-focused biotech company. Bioptimus is building STELLA, a global initiative aiming to profile up to 100,000 patient tissue specimens across three continents. The goal is to build a data backbone for a world model of biology. The initiative is starting this effort on our Xenium platform and plans to expand to Atera over time. And just last week, the Chan Zuckerberg Biohub announced its new $500 million virtual biology initiative. The goal of the effort is to build AI models that can accurately simulate cells and tissues in silica. This initiative is an incredibly ambitious undertaking that would not have been conceivable even a few years ago. Now, because of progress in AI and in technologies for measuring biology, there is a path to that vision. There's increasing evidence that scaling laws apply in biology, just like they do in other domains. What we now need is many orders of magnitude more data, specifically of molecules, cells, and tissues across vast numbers of contexts. This initiative is galvanizing the broader scientific ecosystem with an aligned view that this direction is the next grand challenge for advancing science and medicine. analogous to the Human Genome Project and its role in catalyzing the genomics era. Taken together, these programs are exactly the type of large multi-year initiatives our single-cell and spatial platforms are built to enable. AI is poised to fundamentally reshape how science is done, and large-scale, high-quality biological data sits at the center of that transformation. As AI models improve, we expect an exponential increase in the demand for the kind of data our technologies produce. This reinforces our conviction in the importance of what we're building and the vast size of the opportunity ahead. Building on another theme that has become increasingly prominent in our business, we're seeing growing interest in translational applications across both academia and biopharma. Customers are increasingly focused on identifying human relevant drug targets and critically, biomarkers of response for therapies that only work in subsets of patients. There's now a growing body of evidence supporting the value of single-cell and spatial approaches in uncovering these signals. At the same time, our recent product advances have made these technologies far more practical to deploy in translational settings. In single-cell, FlexAPEX has been a game changer for large-scale translational studies. because of strong performance on FFP samples, streamlined workflows, and a cost profile that enables large cohorts. In spatial, Xenium has proven to be a robust and powerful platform for extracting meaningful insights from clinical samples. ATERA is now poised to extend that momentum by enabling much larger studies with significantly more information content per sample. While our technologies are relevant across the drug development continuum, a particularly large opportunity lies in later stage translational settings 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 are increasingly focused. And over time, these trends also reinforce the potential for single cell and spatial in diagnostics applications. To realize that potential, the critical next step is the generation of robust clinical evidence on large patient cohorts. As we have discussed previously, we're pursuing two parallel paths. One, we're continuing to support our customers in their studies, and we'll partner with them to enable clinical deployment in the future. And two, we're advancing our own internal efforts to generate clinical evidence for specific high-value applications. We're making progress in the two previously announced areas of tissue-based spatial profiling for oncology and blood-based single cell monitoring in autoimmune disease. Stepping back, this quarter has been emblematic of the great work by the whole 10x team. We launched a game-changing new platform, so continued sales momentum and engaged in powerful partnerships with our customers to drive the future of research and healthcare. all while maintaining laser focus on tight execution. This progress continues to reinforce our strategy and puts us in a great position for the opportunities ahead. With that, I will turn the call over to Adam.