10x Genomics (TXG) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 4.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: -0.13%
• EPS Growth: 42.17%
• Country: US
• Employees: 1,306
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.28
• Shares Outstanding: 111,092,770
• 10 Day Avg. Volume: 4,235,578
• 30 Day Avg. Volume: 4,037,544
• PEG Ratio: N/A
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -158.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.22
• Price Target Upside: 58.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 60 Neutral
• Price Target: $10.00 ▲( 20.19% Upside)

10x Genomics receives a score of 60, reflecting a challenging financial performance with consistent net losses and profitability issues. While technical indicators suggest some potential for stabilization, valuation concerns are significant due to a negative P/E ratio. The earnings call and corporate events reveal mixed sentiment, with positive product growth overshadowed by uncertainties in funding and revenue guidance withdrawal.

Positive Factors

Litigation Settlement

The settlement agreement will provide 10x with a boost to its cash balance in the expected $68 million and potential future royalty payments.

Revenue Performance

Service revenue increased by 47% year-over-year, outperforming market expectations.

Sales Strategy

The company is expected to reaccelerate growth over time, particularly benefiting from a sales reorganization, and has a solid long-term runway in both the single-cell and spatial markets.

Negative Factors

Guidance Withdrawal

The company has withdrawn its FY25 guide due to current uncertainty and reduced visibility.

Instrument Sales

Instrument placements decreased significantly due to funding concerns in the US academic and government markets.

Market Uncertainty

TXG faces significant pressure from the US academic end-market, which accounts for 40-50% of TXG revenue.

10x Genomics Business Overview & Revenue Model

Company Description

10x Genomics, Inc., a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in North America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium and chromium connect instruments, microfluidic chips, slides, reagents, and other consumables products. Its single cell solutions runs on its chromium instruments, which include single cell gene expression for measuring gene activity on a cell-by-cell basis; single cell immune profiling for measuring the activity of immune cells and their targets; single cell Assay for Transposase Accessible Chromati (ATAC) for measuring epigenetics comprising the physical organization of DNA; and single cell multiome ATAC + gene expression for measuring the genetic activity and epigenetic programming in the same cells across tens of thousands of cells in a single experiment. The company also provides visium spatial gene expression solution for measuring spatial gene expression patterns across a single tissue sample or gene expression and protein co-detection when combined with immunofluorescence. It serves various academic, government, biopharmaceutical, biotechnology, and other institutions. The company was formerly known as 10X Technologies, Inc. and changed its name to 10x Genomics, Inc. in November 2014. 10x Genomics, Inc. was incorporated in 2012 and is headquartered in Pleasanton, California.

How the Company Makes Money

10x Genomics generates revenue through the sale of its proprietary instruments, consumables, and software to research institutions, pharmaceutical companies, and other entities engaged in life sciences research. The company offers a portfolio of products such as the Chromium Single Cell Platform, Visium Spatial Gene Expression, and software tools that facilitate data analysis and interpretation. Consumables, which are required for each experiment, represent a significant and recurring revenue stream for the company. Additionally, 10x Genomics may engage in strategic partnerships and collaborations that can provide supplementary revenue and enhance their market presence.

10x Genomics Financial Statement Overview

Summary

10x Genomics faces significant challenges in achieving profitability and positive cash flows while maintaining a strong equity base. The company's substantial losses and declining revenue point to operational inefficiencies, yet its low leverage offers stability. The focus should be on improving operational efficiency and revenue growth to enhance financial health.

Income Statement

10x Genomics has struggled with profitability, displaying negative EBIT and net income over recent years. The gross profit margin remains strong at around 68% for 2024, but the net profit margin is negative due to substantial operational losses. Revenue growth has been inconsistent, with a decline of 1.3% from 2023 to 2024, highlighting challenges in sustaining top-line growth.

Balance Sheet

The company maintains a solid equity position with an equity ratio of approximately 77% for 2024, indicating low financial leverage. The debt-to-equity ratio remains low at 0.12, suggesting prudent debt management. However, the persistent negative net income has impacted return on equity, which stands at -25.7% in 2024.

Cash Flow

Cash flows are concerning, with negative free cash flow due to ongoing capital expenditures and operational challenges. The operating cash flow to net income ratio is positive, indicating some operational cash flow generation, but free cash flow remains negative, posing liquidity risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
610.78M	618.73M	516.41M	490.49M	298.85M
	Gross Profit
414.48M	409.31M	396.02M	416.40M	240.38M
	EBIT
-194.56M	-194.95M	-167.94M	-52.91M	-85.32M
	EBITDA
-133.99M	-205.11M	-128.49M	-24.59M	-513.77M
	Net Income Common Stockholders
-182.63M	-255.10M	-166.00M	-58.22M	-542.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
393.40M	388.69M	429.98M	587.45M	663.60M
	Total Assets
918.64M	965.14M	1.03B	1.02B	929.34M
	Total Debt
82.61M	95.37M	95.18M	81.98M	62.98M
	Net Debt
-261.45M	-263.91M	-124.57M	-505.47M	-600.63M
	Total Liabilities
208.50M	224.10M	223.24M	201.26M	190.27M
	Stockholders Equity
710.13M	741.04M	805.74M	817.57M	739.07M
Cash Flow		Free Cash Flow
-5.73M	-64.72M	-165.27M	-122.65M	-256.29M
	Operating Cash Flow
6.66M	-15.20M	-33.61M	-21.37M	-217.90M
	Investing Cash Flow
-32.63M	133.49M	-350.89M	-106.73M	-38.39M
	Financing Cash Flow
10.91M	13.67M	15.82M	35.30M	468.91M

10x Genomics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXG, the sentiment is Negative. The current price of 8.32 is below the 20-day moving average (MA) of 8.69, below the 50-day MA of 8.83, and below the 200-day MA of 14.71, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 31.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TXG.

10x Genomics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CERT	74 Outperform	$1.90B	―	-0.25%	―	9.37%	95.72%
HCAT	63 Neutral	$274.23M	―	-19.80%	―	4.88%	37.87%
TXG	60 Neutral	$1.13B	―	-22.03%	―	-0.13%	42.17%
SDGR	54 Neutral	$1.58B	―	-43.33%	―	22.29%	-32.89%
WGS	53 Neutral	$2.06B	38.75	-16.61%	―	48.81%	72.54%
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%
SOPH	51 Neutral	$192.47M	―	-60.75%	―	4.66%	11.33%

10x Genomics Corporate Events

10x Genomics Settles Litigation with Bruker Corporation

On May 12, 2025, 10x Genomics, Inc. reached a settlement and licensing agreement with Bruker Corporation, resolving all global litigation and proceedings between the parties. This agreement follows a series of lawsuits initiated by 10x Genomics against NanoString Technologies, Inc., which were inherited by Bruker after acquiring certain NanoString assets in May 2024, and is expected to lead to the dismissal of all claims within five days of the agreement date.

The most recent analyst rating on (TXG) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on 10x Genomics stock, see the TXG Stock Forecast page.

10x Genomics Announces Workforce Reduction to Cut Costs

On May 6, 2025, 10x Genomics announced a reduction in its global workforce by approximately 8% to decrease costs and align with strategic priorities, estimating related expenses between $5.5 million and $6.5 million. The company reported first-quarter 2025 revenue of $154.9 million, a 10% increase from the previous year, driven by a patent litigation settlement. Despite a decrease in instrument revenue, 10x Genomics plans to reduce operating expenses by over $50 million in 2025 and has unveiled new product launches and a partnership with Arc Institute to enhance its market position.