Company: TXG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001770787-25-000051
Chunk: 68

Company: 10x Genomics, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 68
---
 gain on settlement was determined by applying a royalty rate to the Vizgen historical revenues prior to the settlement.

In May 2025, the Company entered into a settlement agreement and license agreements with Bruker Corporation resolving all outstanding litigation and other proceedings between the parties across all jurisdictions around the world. Under the agreements, the Company will receive four quarterly installment payments beginning in the third quarter of 2025, which total $68.0 million and applicable interest. The Company will also receive royalties on Bruker’s sales of products and services covered by the licenses. The $68.0 million was recorded as a $40.7 million gain on settlement and $27.3 million of license and royalty 

20

revenue. The amount attributed to the gain on settlement was determined by applying a royalty rate to the historical revenues prior to the settlement.

We expect our revenues, excluding the impact of license and royalty revenue, to slightly decline sequentially in the third quarter of 2025.

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

Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change(dollars in thousands)20252024$%20252024$%Cost of products and services revenue$47,824 $48,884 $(1,060)(2)%$97,262 $96,976 $286 — %Gross profit$125,084 $104,220 $20,864 20 %$230,529 $197,134 $33,395 17 %Gross margin72 %68 %70 %67 %

Cost of products and services revenue decreased $1.1 million, or 2%, to $47.8 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The decrease was primarily driven by lower royalties of $4.0 million and lower warranty costs of $1.7 million, partially offset by higher inventory write-downs of $2.5 million and an increase of $2.1 million due to changes in product mix. Gross margin increased to 72% primarily due to higher license and royalty revenue, and lower royalties and warranty costs, partially offset by an increase in inventory reserves, and higher manufacturing costs. 

Cost of products and services revenue increased $0.3 million, or 0.3%, to $97.3 million for the six months ended