Company: TXG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001770787-25-000032
Chunk: 50

Company: 10x Genomics, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 will receive royalties on Vizgen’s sales of products covered by the license. The $26.0 million upfront payment was recorded as a $9.2 million gain on settlement and $16.8 million of license and royalty revenue. The amount attributed to the gain on settlement was determined by applying a royalty rate to the Vizgen historical revenues prior to the settlement.

We expect our revenues, excluding the impact of license and royalty revenue, to be approximately flat in the second quarter of 2025.

Cost of Products and Services Revenue, Gross Profit and Gross Margin

Three Months EndedMarch 31,Change(dollars in thousands)20252024$%Cost of products and services revenue$49,438 $48,092 $1,346 3 %Gross profit$105,445 $92,914 $12,531 13 %Gross margin68 %66 %

Cost of products and services revenue increased $1.3 million, or 3%, to $49.4 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily driven by higher inventory write-downs of $6.2 million, partially offset by lower manufacturing costs of $2.4 million due to decreased sales and change in product mix, lower royalties of $2.1 million and lower warranty costs of $0.4 million. Gross margin increased to 68% primarily due to license and royalty revenue, reflecting a 3.9% benefit to gross margin, and lower manufacturing costs, partially offset by an increase in inventory reserves. We expect our gross margin to fluctuate through the remainder of 2025 due to the one-time benefit in license and royalty revenue experienced in the first quarter, as well as changes in product mix, changes in product prices and increased costs through the remainder of the year.

Operating Expenses

Three Months EndedMarch 31,Change(dollars in thousands)20252024$%Research and development$64,245 $68,638 $(4,393)(6)%Selling, general and administrative89,728 85,774 3,954 5 Gain on settlement(9,200)— (9,200)N/ATotal operating expenses$144,773 $154,412 $(9,639)(6)%

Research and development expenses decreased $4.4 million, or 6%, to $