Company: TXG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050332
Chunk: 73

Company: 10x Genomics, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 73
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 moderately increase sequentially in the fourth quarter of 2025.

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

Three Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change(dollars in thousands)20252024$%20252024$%Cost of products and services revenue$48,695 $45,261 $3,434 8 %$145,957 $142,237 $3,720 3 %Gross profit$100,307 $106,393 $(6,086)(6)%$330,836 $303,527 $27,309 9 %Gross margin67 %70 %69 %68 %

Cost of products and services revenue increased $3.4 million, or 8%, to $48.7 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was primarily driven by higher manufacturing costs of $5.8 million and higher inventory write-downs of $3.5 million due to changes in product mix, partially offset by lower royalties of $4.1 million and lower warranty costs of $1.8 million. Gross margin decreased to 67% primarily due to changes in product mix and higher inventory write-downs, partially offset by lower royalties and lower warranty costs.

Cost of products and services revenue increased $3.7 million, or 3%, to $146.0 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase was primarily driven by higher inventory write-downs of $12.3 million and higher manufacturing costs of $5.5 million due to change in product mix, partially offset by lower royalties of $10.3 million and lower warranty costs of $3.8 million. Gross margin increased to 69% primarily due to higher license and royalty revenue and lower royalties and warranty, partially offset by changes in product mix and higher inventory write-downs.

We expect our gross margin to fluctuate through the remainder of 2025 due to the non-recurring benefit in license and royalty revenue experienced in the first half of the year, as well as changes in product mix through the remainder of the year.

Operating Expenses

Three Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change(dollars in thousands)20252024$%202520