10x Genomics Q2 2026 earnings: Revenue excluding settlements grew 3%

10x Genomics (NASDAQ: TXG) reported Q2 2026 revenue of $151.0 million, down 12.7% from $172.9 million, while diluted EPS swung to a loss of $0.14 from earnings of $0.28 per share. Excluding non-recurring patent-litigation settlement revenue in both periods, revenue increased 3%, and gross margin improved by two percentage points to 74%. Lower settlement revenue and gains largely explain the contrast between underlying business growth and the reported operating loss.

Core financial results

The GAAP revenue comparison was heavily affected by patent-litigation settlements. Products and services revenue increased 2.7%, but license and royalty revenue declined to $1.9 million from $27.8 million.

Profitability also reversed year over year: 10x Genomics recorded a $19.6 million operating loss and a $17.9 million net loss, compared with operating income of $30.1 million and net income of $34.5 million in Q2 2025.

The settlement-adjusted revenue comparison is the company’s presented calculation. Other figures in the table are GAAP results, and operating expenses include settlement gains recorded as a reduction of expense.

Business and segment performance

Consumables and services supported the underlying revenue increase, while instrument sales declined substantially. Spatial consumables posted the largest dollar increase among the product categories, rising by $5.9 million.

Geographic performance was mixed. EMEA revenue increased to $40.0 million from $34.7 million, and Asia-Pacific excluding China rose to $11.1 million from $8.8 million. China revenue declined to $15.0 million from $23.2 million, while U.S. revenue fell to $82.1 million from $103.5 million; the U.S. figure includes the lower license and royalty revenue.

Settlement items obscured product growth and drove the profit reversal

Non-recurring patent-settlement revenue fell to $1.6 million from $27.3 million, a decline of $25.7 million. That decline was larger than the $21.9 million reduction in total revenue because revenue excluding settlement items increased by approximately $3.8 million.

Settlement accounting also affected expenses. The gain on settlement was only $3.4 million in Q2 2026, compared with $40.7 million a year earlier. Because these gains reduce reported operating expenses, the smaller benefit caused operating expenses to rise 39% on a GAAP basis even though management said expenses excluding settlement effects were approximately flat year over year.

Profitability and balance-sheet liquidity

Gross margin increased to 74% despite the decline in gross profit dollars. Management attributed the margin improvement to lower manufacturing costs, including $2.6 million of tariff refunds, and lower inventory write-downs. Lower non-recurring license and royalty revenue partially offset those benefits.

Research and development expense declined to $56.8 million from $61.2 million, while selling, general and administrative expense increased to $78.7 million from $74.4 million. Stock-based compensation decreased to $25.6 million from $27.2 million.

Cash, cash equivalents and marketable securities totaled $552.0 million as of June 30, 2026, up from approximately $523.4 million at December 31, 2025. Inventory declined to $52.6 million from $56.3 million over the same period.

Financial guidance

10x Genomics raised both ends of its full-year 2026 revenue range. The midpoint increased by $7.5 million to $620 million, and management said the updated range represents 2% to 5% growth over 2025 after excluding non-recurring settlement-related revenue from both years.

Management perspective

CEO Serge Saxonov highlighted customer engagement and early order flow for Atera as the quarter’s main commercial development. Management also pointed to momentum in the rest of the business, although the release did not quantify Atera’s orders or revenue contribution.

During the quarter, 10x Genomics acquired Proteintech Genomics to add protein-detection capabilities to its Single Cell and Spatial platforms. It also announced multi-year research collaborations with Cleveland Clinic and Lausanne University Hospital focused on diagnostic applications of single-cell and spatial technologies in cancer care.

Recent insider transactions

The provided transaction records showed no entry labeled as an open-market “Purchase” during the six months through June 30, 2026. Four recent sales included explicit dates and reported values; zero-value stock awards without share quantities are excluded from the table.

These disclosures describe the transactions but do not, by themselves, establish the insiders’ views of the company’s prospects.

Risks investors should watch

• Instrument weakness: Instrument revenue declined approximately 47% to $7.7 million, creating a clear divergence from the growth in consumables and services.
• China contraction: China revenue fell to $15.0 million from $23.2 million, offsetting growth elsewhere in Asia-Pacific and EMEA.
• Settlement-driven comparability: Large changes in settlement revenue and gains make the reported revenue, expense and earnings comparisons less representative of underlying operations.
• Margin benefit durability: The gross-margin improvement included $2.6 million of tariff refunds and lower inventory write-downs, so the contribution from those items should be separated from recurring manufacturing efficiency.
• Continued operating losses: The company returned to an operating and net loss despite underlying revenue growth and a higher gross margin.

Summary

10x Genomics’ Q2 2026 results showed modest underlying revenue growth led by consumables and services, but substantially lower patent-settlement benefits pushed reported revenue and earnings below the prior-year period. Gross margin improved and the company raised its full-year revenue guidance. The main follow-up points are whether Atera demand converts into measurable revenue, whether instrument sales stabilize, and how much of the margin improvement can be sustained without settlement and tariff-related benefits.