Company: TXG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001770787-25-000032
Chunk: 24

Company: 10x Genomics, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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, 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 $64.2 million for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The decrease was primarily driven by a $3.9 million decrease in personnel expenses, including a $2.8 million decrease in stock-based compensation expense, a $1.9 million decrease in allocated costs for facilities and information technology, partially offset by an $0.8 million increase in laboratory materials and supplies.

Selling, general and administrative expenses increased $4.0 million, or 5%, to $89.7 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 a $3.6 million increase in outside legal expenses and a $2.0 million increase in personnel expenses, partially offset by a $1.2 million decrease in marketing expenses.

Gain on settlement is a result of the Company settling its worldwide patent