Company: TXG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001770787-25-000051
Chunk: 53

Company: 10x Genomics, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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 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 June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily driven by higher inventory write-downs of $8.8 million, partially offset by lower royalties of $6.2 million and lower warranty costs of $2.0 million. Gross margin increased to 70% primarily due to higher license and royalty revenue and lower royalties, warranty, and 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 non-recurring benefit in license and royalty revenue experienced in the first half of the year, as well as changes in product mix, changes in product prices and increased costs through the remainder of the year.

Operating Expenses

Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change(dollars in thousands)20252024$%202