We exceeded the top end of our guidance range in the third quarter with total revenue of $149 million. Spatial consumables had another robust quarter of double-digit year-over-year revenue growth, driven by continued strong demand for genome consumables. We again saw sustained growth in both the number of runs and the average spend per run. Within single-cell, while consumable revenue was down year-over-year, we again saw double-digit Chromium consumables reaction growth year-over-year.
Our Flex and On-Chip Multiplexing assets have been key drivers of this growth. It is also particularly well-suited for translational studies and massively scaled experiments, which are two of the most promising directions for single-cell growth going forward. This strong position provides us with both the flexibility to navigate the current environment and the resources to strategically invest in innovation and long-term growth. While the pace of news flow has moderated compared to earlier in the year, spending behavior remains cautious, particularly for capital expenditures.
I'll start by reviewing our financial results for the three months ended September 30, 2025, and then we'll provide further details on our outlook for the fourth quarter. All figures and growth rates provided will be on a year-over-year basis unless otherwise noted. As Serge mentioned, we exceeded the top end of our guidance range, and total revenue for the third quarter was $149 million. This was down 2% year-over-year and up 2% sequentially, excluding one-time license and royalty revenue in the second quarter.
| Metric | Period | Current guidance |
|---|---|---|
| Q4 2025 revenue | Q4 2025 | $154M-$158M, representing 5% growth versus Q3 at the midpoint |
| Year-end budget flush | Q4 2025 | not anticipated this year |
| Q4 instrument vs consumables mix | Q4 2025 | potentially a bit more uptick on the instrument side than in Q3 |
| Government shutdown impact | Q4 2025 | factored into guide; only material effect likely on NIH intramural, a small fraction of business |
| First half 2026 outlook (preliminary) | H1 2026 | no formal guide; first half 2026 anticipated to look similar to second half 2025 |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | -2% ($149M; +2% sequentially ex one-time Q2 license/royalty) | Solid execution amid continuing macro and funding challenges; exceeded top end of guidance. |
| Total consumables revenue | +1% ($127.9M) | Spatial consumables strength partly offset by lower Chromium consumables. |
| Chromium consumables revenue | -4% ($92.5M) | Primarily lower average selling prices, despite double-digit reaction volume growth. |
| Spatial consumables revenue | +19% ($35.4M) | Primarily Xenium consumables, with more runs and higher spend per run including 5K panel adoption. |
| Total instrument revenue | -37% ($12M) | Chromium instruments -36% and spatial -38%, both primarily on lower average selling prices and constrained CapEx. |
| Services revenue | +29% ($8.1M) | Increase in Xenium service plans. |
| Gross margin | 67% vs 70% prior year | Changes in product mix and higher inventory write-downs, partially offset by lower royalties and warranty costs. |
| Total operating expenses | $132.5M vs $147.9M ($15.4M lower) | Lower personnel expenses and lower outside legal expenses. |
| Americas revenue | -9% ($79.9M) | Continued uncertainty in U.S. academic and government funding. |
| EMEA revenue | +10% ($41.6M; +20% sequentially) | Strong spatial consumables performance. |
| APAC revenue | +6% ($27.5M; -14% sequentially) | Year-over-year growth; sequential decline due to prior Q2 customer-driven pull forward in China. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Xenium vs Visium preference | Early uncertainty over sequencing vs imaging methods | Strong and growing preference for image-based Xenium; increasingly seen as the best solution for most spatial needs | — |
| Next-generation Flex / single-cell elasticity | GEM-X and first Flex driving volume at lower prices | Next-gen Flex shipping with plate-based, automation-friendly workflows; ~20-30% drop in average reaction price expected to be more than made up in volume over time | — |
| AI / virtual cell and perturbation | Emerging interest | Increasing momentum around virtual cell efforts and large perturbation studies; next-gen Flex enables massive perturbation screens | — |
| Translational and clinical applications | Growing focus | Especially large and growing opportunity; CLI-SEQ/Weizmann periblood clinical trial cited as example of single-cell in diagnostics | — |
| Anthropic / data analysis bottleneck | — | Partnership with Anthropic integrates analysis with Claude for life sciences via a conversational interface to address the analysis bottleneck | — |