Snapshot
10x Genomics, Inc. reported $151M of revenue in Q1 2026, up -2.6% year over year, with diluted EPS of $-0.10 and an operating margin of -11.3%.
- Revenue
- $151M
- YoY growth
- +-2.6%
- Diluted EPS
- $-0.10
- Operating margin
- -11.3%
What management said
- •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, as we have been seeing over the past several quarters, our new products with more accessible pricing have been unlocking new waves of single-cell demand.
- •Similarly, in spatial, we again delivered double-digit growth in consumables revenue, which was driven by Xenium momentum.
- •This increase in throughput now enables large cohort studies at a pace and scale that were not previously feasible.
- •We have also developed powerful computational and software tools so that customers can effectively work with the data.
- •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.
- •A year ago on our Q1 call, we were operating in a highly uncertain macro environment after drastic changes to government research funding that led us to withdraw our full year guidance.
- •Excluding the impact of non-recurring settlement revenue in the prior year period, revenue for the first quarter was up 9% year-over-year.
- •This reflects continued momentum in the key drivers of our business, as well as some benefit from orders received late in the fourth quarter that shipped in early January.
- •Total consumables revenue was up 13%, with growth in both single-cell and spatial.
What went well
- •Revenue of $150.8 million, up 9% year-over-year excluding the prior-year non-recurring settlement revenue, a solid start to the year.
- •Total consumables revenue up 13%, with single-cell consumables up 6% on double-digit reaction volume growth and spatial consumables up 31% driven by Xenium.
- •Launch of the Atera instrument platform, described as the most significant product introduction in company history, with extraordinary early customer response and strong pre-orders ahead of second-half 2026 shipments.
- •Gross margin improved to 70% from 68% in the prior-year period, driven by lower warranty costs and lower inventory write-downs.
- •Cash, equivalents and marketable securities reached $540 million, up $113 million year-over-year and up $16 million sequentially; operating expenses down 20% excluding the prior-year settlement gain.
What went wrong
- •Total instrument revenue declined 24%, with Chromium instruments down 12% and spatial instruments down 32%, partly as customers wait for Atera.
- •The capital equipment environment remains challenging and fairly constrained, weighing on instrument purchases.
- •Some customers are delaying additional purchases of current spatial products (Xenium and Visium) in anticipation of Atera, pressuring Q2 and Q3 spatial sales.
- •Atera production capacity will be limited in 2026 as the company ramps manufacturing of a sophisticated new instrument.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Full-year 2026 revenue | FY2026 | $600M-$625M (provided in February) | $600M-$625M (maintained), implying 0%-4% growth excluding 2025 patent settlement revenue | |
| Single-cell consumables reactions growth | FY2026 | double-digit | double-digit | |
| Spatial consumables revenue growth | FY2026 | double-digit | double-digit | |
| Gross margin | FY2026 | mid-60s% | mid-60s% | |
| Operating expenses (year-on-year) | FY2026 | — | roughly flat | |
| Q2 revenue sequential change | Q2 2026 | — | low single digit decline quarter-over-quarter, with Q3 broadly similar to Q2 | |
| Atera unit shipments | Q3-Q4 2026 | — | approximately 40 units, mostly weighted to Q4 |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Total revenue | +9% excluding prior-year non-recurring settlement revenue ($150.8M reported) | Continued momentum in key business drivers plus benefit from late-Q4 orders that shipped in early January. |
| Total consumables revenue | +13% | Growth in both single-cell and spatial consumables. |
| Single-cell consumables revenue | +6% | Double-digit growth in reaction volumes; Flex remained the most popular assay by volume. |
| Spatial consumables revenue | +31% | Driven by Xenium consumables momentum. |
| Total instrument revenue | -24% | Chromium instruments down 12% and spatial instruments down 32%; constrained CapEx environment and customers awaiting Atera. |
| Gross margin | 70% vs 68% prior year | Lower warranty costs and lower inventory write-downs, partially offset by a decrease in license and royalty revenue. |
| Americas revenue | +9% excluding prior-year license and royalty revenue | — |
| EMEA revenue | +16% | — |
| APAC revenue | +5% | — |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Atera platform launch | Not yet launched; teased at AGBT under NDA with early-access customers | Launched as the biggest product introduction in company history; enables spatial whole transcriptome at single-cell sensitivity; pre-orders strong, shipments expected second half 2026 | |
| AI as a demand driver | Described as a relatively small percentage of revenue | Viewed as a structural tailwind, now pervasive across customer segments and applications, lifting the entire product line | |
| Spatial platform mix (Xenium vs Visium) | Trend toward imaging-based Xenium over Visium | Trend expected to reinforce with Atera; Visium retains a place but faces pressure from Atera too | |
| Flex Apex single-cell pricing | Early launch dynamics | Mix and pricing dynamics similar to Q4; still early, strong volume scaling; pricing expected to stabilize in 2027 |
Q&A summary
On Atera, what end customers show the highest interest, and how should we think about launch timing's impact on the portfolio?
Interest is coming from everywhere with no segment uninterested; internal focus is on customers who can scale demand and evangelize. Some customers will delay current spatial purchases (built into the guide), but existing spatial products continue at a robust pace because of established workflows, grants and budgets; many new Atera buyers won't receive instruments until well into 2027.
What could the AI TAM look like and how might it grow over time?
AI is a structural tailwind because large, powerful models need large amounts of the right biological data across many contexts. AI usage is already pervasive across customer segments and applications, even in smaller experiments, and is seen as a structural accelerant across the product line by design.
Any gross margin impact from inflation (memory, plastics) or from the Atera ramp?
Input costs are being managed well; full-year margins still expected in the mid-60s%. Atera instrument margins will be below the standard portfolio, creating a little margin pressure particularly in Q4, but full-year mid-60s remains highly confident.
How material is the Q1-to-Q2 spatial instrument decline, and how many Atera units in Q4 and 2027?
A step down from Q1 into Q2 and Q3 with Xenium selling at a lower rate; approximately 40 Atera units expected between Q3 and Q4, mostly weighted to Q4, all factored into guidance.
On pricing strategy and cannibalization risk of Atera versus Xenium?
Short-term impacts are carefully built into the guide; Atera is intended to break open new markets, samples and customers by removing constraints (whole transcriptome, throughput, off-the-shelf slides). Customers still like Xenium and Visium and will use them robustly; over time more applications migrate to Atera.
Where is the jumping-off point for OpEx going forward?
Costs are being managed in a disciplined way; excluding the prior-year settlement gain, OpEx was down 20% year-on-year, and OpEx is anticipated to be roughly flat year-on-year going forward with flexibility to invest.
Why were spatial instruments weak in Q1, and what is the Q2 sequential decline?
A low single digit decline quarter-over-quarter is expected for Q2, with Q3 fairly similar. Q1 spatial instrument softness was driven mainly by anticipation of the April Atera announcement, as early-access customers chose to wait for Atera; the macro CapEx backdrop remains constrained but enthusiasm is extremely high and customers are finding CapEx.
What are the bottlenecks to scaling Atera production and how fast can you ramp?
Atera is a sophisticated instrument that the company is building and testing in a smart, measured way; they feel good about 2026 plans and will keep ramping production exiting the year into the next.
What single-cell pricing headwind did you see from Apex in the quarter and expect for Q2?
The general trend was similar to Q4 in mix and pricing around Flex/Flex Apex; still very early (just over one quarter of launch), with strong feedback and large volume scaling, and an overall strong trajectory.
With Atera launching, what is the future of the Visium platform?
There is a clear market trend toward imaging-based Xenium that Atera will reinforce, but Visium has its place; many customers love it and run it robustly, it is a great assay for many applications, and the company will continue to support it.
Does Atera accelerate the decline in Visium usage, and is there desire to pull the launch forward?
There will be some effect on Visium as the conversion toward Xenium continues and Atera pressures both spatial platforms, all incorporated in the guide; product stickiness keeps existing products in robust use. The team is working hard to deliver Atera as fast as possible while being deliberate and rigorous.
Could Flex volumes migrate to Atera over time, and what is reaction volume growth excluding Flex Apex?
No near-term migration of single-cell volume to Atera is expected or heard from customers given different configurations, pricing and workloads, though large single-cell experiments on Atera are seen as a long-run future; reaction growth is seen across multiple applications.