10x Genomics, Inc. 10-K

Item 8. Financial Statements and Supplementary Data. 10x Genomics, Inc. Index to Consolidated Financial Statements Page Reports of Independent Registered Public Accounting Firm (PCAOB ID No. 42 ) 76 Consolidated Balance Sheets 78 Consolidated Statements of Operations 79 Consolidated Statements of Comprehensive Loss 80 Consolidated Statements of Stockholders’ Equity 81 Consolidated Statements of Cash Flows 82 Notes to Consolidated Financial Statements 83 75 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of 10x Genomics, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of 10x Genomics, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 12, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. 76 Table of Contents Revenue Recognition Description of the Matter For the year ended December 31, 2025, the Company recognized products and services revenues of $596.7 million. As discussed in Note 2 to the consolidated financial statements, the Company recognizes revenue when control of the products and services is transferred to its customers in an amount that reflects the consideration it expects to receive from its customers in exchange for those products and services. Auditing the Company’s revenue recognition can be complex due to the volume of sales transactions including multiple performance obligations. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the allocation of the transaction price to performance obligations in revenue transactions. For example, we tested management’s controls over establishing stand-alone selling prices, and tested the automated system controls for the application of the stand-alone selling price to the revenue transactions. Our audit procedures included, among others, evaluating the allocation of consideration using stand-alone selling price for a sample of individual sales transactions. For the sample, we inspected the customer contract, identified the distinct performance obligation(s) in the contract, and recalculated the allocation of the transaction price. For the sample, we further tested the timing of revenue recognition based on evidence of transfer of control of the goods to the customer or the recognition of revenue over time for extended warranty service performance obligations. Scale Biosciences, Inc. Asset Acquisition Description of the Matter During the year ended December 31, 2025, the Company entered into an agreement to acquire all outstanding shares of common stock of Scale Biosciences, Inc. As discussed in Note 4 to the consolidated financial statements, the transaction was accounted for as an asset acquisition because substantially all of the fair value of the assets acquired is concentrated in the developed technology. The net assets acquired were valued at $46.6 million. The contingent consideration was recorded at fair value as of the acquisition date. Auditing the Scale Biosciences, Inc. asset acquisition was complex due to the estimation uncertainty in determining the fair value of acquired developed technology. The estimation uncertainty was primarily due to the sensitivity of the fair value to underlying assumptions, including the future revenues related to the developed technology. Such assumptions are forward-looking and could be affected by future competitive and economic conditions. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the asset acquisition. For example, we tested management’s controls over determining the accounting treatment of the acquisition and the valuation of the acquired developed technology intangible asset and contingent consideration. Our audit procedures included, among others, evaluating the accounting treatment for the transaction as an asset acquisition and testing the valuation of the acquired developed technology and contingent consideration. To test the valuation of the acquired developed technology and the contingent consideration, our audit procedures included, among others, a review of the valuation methods, key valuation assumptions, reconciling the valuation of the net assets acquired to the valuation of the consideration transferred, and performing sensitivity analyses. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2015. San Jose, California February 12, 2026 77 Table of Contents 10x Genomics, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 473,966 $ 344,067 Marketable securities 49,443 49,335 Accounts receivable, net 47,013 87,862 Inventory 56,341 83,107 Other receivables 35,480 606 Prepaid expenses and other current assets 22,208 19,410 Total current assets 684,451 584,387 Property and equipment, net 226,711 252,648 Operating lease right-of-use assets 60,450 57,290 Goodwill 4,511 4,511 Intangible assets, net 62,329 15,671 Other noncurrent assets 2,913 4,129 Total assets $ 1,041,365 $ 918,636 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 12,733 $ 12,909 Accrued compensation and related benefits 42,500 33,615 Accrued expenses and other current liabilities 39,971 41,165 Deferred revenue 23,902 20,658 Operating lease liabilities 10,985 9,286 Contingent consideration, current 23,363 — Total current liabilities 153,454 117,633 Contingent consideration, noncurrent 1,237 — Operating lease liabilities, noncurrent 73,376 73,327 Deferred revenue, noncurrent 10,501 12,513 Other noncurrent liabilities 6,471 5,029 Total liabilities 245,039 208,502 Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $ 0.00001 par value; 100,000,000 shares authorized, no shares issued or outstanding as of December 31, 2025 and 2024 — — Common stock, $ 0.00001 par value; 1,100,000,000 shares authorized (Class A 1,000,000,000 , Class B 100,000,000 ); 127,691,329 (Class A 117,612,457 , Class B 10,078,872 ) and 122,291,837 (Class A 108,235,004 , Class B 14,056,833 ) shares issued and outstanding as of December 31, 2025 and 2024, respectively 2 2 Additional paid-in capital 2,306,690 2,177,672 Accumulated deficit ( 1,510,591 ) ( 1,467,047 ) Accumulated other comprehensive income (loss) 225 ( 493 ) Total stockholders’ equity 796,326 710,134 Total liabilities and stockholders’ equity $ 1,041,365 $ 918,636 The accompanying notes are an integral part of these consolidated financial statements. 78 Table of Contents 10x Genomics, Inc. Consolidated Statements of Operations (In thousands, except share and per share data) Year Ended December 31, 2025 2024 2023 Products and services revenue $ 596,688 $ 610,464 $ 618,727 License and royalty revenue 46,135 321 — Revenue 642,823 610,785 618,727 Cost of products and services revenue 198,942 196,303 209,414 Gross profit 443,881 414,482 409,313 Operating expenses: Research and development 238,632 264,698 270,332 Selling, general and administrative 316,134 344,343 343,330 Gain on settlement ( 49,900 ) — — In-process research and development — — 60,980 Total operating expenses 504,866 609,041 674,642 Loss from operations ( 60,985 ) ( 194,559 ) ( 265,329 ) Other income (expense): Interest income 20,048 18,930 16,885 Interest expense — ( 4 ) ( 33 ) Other income (expense), net 1,030 ( 2,067 ) ( 286 ) Total other income 21,078 16,859 16,566 Loss before provision for income taxes ( 39,907 ) ( 177,700 ) ( 248,763 ) Provision for income taxes 3,637 4,927 6,336 Net loss $ ( 43,544 ) $ ( 182,627 ) $ ( 255,099 ) Net loss per share, basic and diluted $ ( 0.35 ) $ ( 1.52 ) $ ( 2.18 ) Weighted-average shares used to compute net loss per share, basic and diluted 124,749,885 120,451,550 117,165,036 The accompanying notes are an integral part of these consolidated financial statements. 79 Table of Contents 10x Genomics, Inc. Consolidated Statements of Comprehensive Loss (In thousands) December 31, 2025 2024 2023 Net loss $ ( 43,544 ) $ ( 182,627 ) $ ( 255,099 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) on available-for-sale marketable securities ( 6 ) 206 2,210 Realized loss on available-for-sale marketable securities reclassified into net loss — 3 1,718 Foreign currency translation adjustment 724 ( 273 ) ( 22 ) Other comprehensive income (loss), net of tax 718 ( 64 ) 3,906 Comprehensive loss $ ( 42,826 ) $ ( 182,691 ) $ ( 251,193 ) The accompanying notes are an integral part of these consolidated financial statements. 80 Table of Contents 10x Genomics, Inc. Consolidated Statements of Stockholders’ Equity (In thousands, except share data) Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Shares Amount Balance as of December 31, 2022 115,195,009 $ 2 $ 1,839,397 $ ( 1,029,321 ) $ ( 4,335 ) $ 805,743 Issuance of Class A common stock related to equity awards 3,900,353 — 19,483 — — 19,483 Stock-based compensation — — 167,010 — — 167,010 Net loss — — — ( 255,099 ) — ( 255,099 ) Other comprehensive income — — — — 3,906 3,906 Balance as of December 31, 2023 119,095,362 2 2,025,890 ( 1,284,420 ) ( 429 ) 741,043 Issuance of Class A common stock related to equity awards 3,196,475 — 10,914 — — 10,914 Stock-based compensation — — 140,868 — — 140,868 Net loss — — — ( 182,627 ) — ( 182,627 ) Other comprehensive loss — — — — ( 64 ) ( 64 ) Balance as of December 31, 2024 122,291,837 2 2,177,672 ( 1,467,047 ) ( 493 ) 710,134 Issuance of Class A common stock related to equity awards 4,299,500 — 6,803 — — 6,803 Issuance of Class A common stock for acquisition of assets 1,099,992 — 13,541 — — 13,541 Stock-based compensation — — 108,674 — — 108,674 Net loss — — — ( 43,544 ) — ( 43,544 ) Other comprehensive income — — — — 718 718 Balance as of December 31, 2025 127,691,329 $ 2 $ 2,306,690 $ ( 1,510,591 ) $ 225 $ 796,326 The accompanying notes are an integral part of these consolidated financial statements 81 Table of Contents 10x Genomics, Inc. Consolidated Statements of Cash Flows (In thousands) Year Ended December 31, 2025 2024 2023 Operating activities: Net loss $ ( 43,544 ) $ ( 182,627 ) $ ( 255,099 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Stock-based compensation expense 109,118 140,749 166,950 Depreciation and amortization 36,199 35,879 35,512 Asset and lease impairment charges 814 3,054 9,845 ROU assets impairment due to restructuring 1,253 — — Amortization of right-of-use assets 7,617 7,829 8,107 Fair value adjustments on contingent consideration 1,407 — — Realized loss on marketable securities — 3 1,718 Other ( 1,753 ) 523 427 Changes in operating assets and liabilities: Accounts receivable 41,314 26,951 ( 10,613 ) Other receivables ( 34,874 ) — — Inventory 27,953 ( 9,777 ) 7,871 Prepaid expenses and other current assets ( 2,343 ) ( 1,901 ) ( 2,429 ) Other noncurrent assets 689 ( 1,084 ) ( 678 ) Accounts payable ( 2,126 ) ( 3,354 ) ( 6,017 ) Accrued compensation and other related benefits 7,647 3,654 ( 2,637 ) Deferred revenue 746 11,209 10,932 Accrued expenses and other current liabilities ( 5,153 ) ( 12,736 ) 28,301 Operating lease liability ( 10,310 ) ( 12,484 ) ( 8,671 ) Other noncurrent liabilities 1,396 776 1,284 Net cash provided by (used in) operating activities 136,050 6,664 ( 15,197 ) Investing activities: Proceeds from maturities of marketable securities 125,200 25,782 82,825 Proceeds from sales of marketable securities — 3,856 100,191 Purchase of marketable securities ( 123,435 ) ( 48,876 ) — Asset acquisition, net ( 9,268 ) — — Purchases of property and equipment ( 5,935 ) ( 12,393 ) ( 48,601 ) Purchase of intangible assets — ( 1,000 ) ( 923 ) Net cash (used in) provided by investing activities ( 13,438 ) ( 32,631 ) 133,492 Financing activities: Issuance of common stock from exercise of stock options and employee stock purchase plan purchases 6,803 10,914 19,483 Payments on technology license financing arrangement — — ( 5,814 ) Net cash provided by financing activities 6,803 10,914 13,669 Effect of exchange rate changes on cash and cash equivalents 484 ( 164 ) ( 33 ) Net increase (decrease) in cash and cash equivalents 129,899 ( 15,217 ) 131,931 Cash, cash equivalents and restricted cash at beginning of year 344,067 359,284 227,353 Cash and cash equivalents at end of year $ 473,966 $ 344,067 $ 359,284 Supplemental disclosures of cash flow information: Cash paid for interest $ — $ — $ 436 Cash paid for taxes $ 2,391 $ 5,641 $ 4,927 Noncash investing and financing activities Purchases of property and equipment included in accounts payable, accrued expenses and other current liabilities $ 215 $ 1,351 $ 3,324 Right-of-use assets obtained in exchange for new operating lease liabilities $ 11,397 $ — $ 6,518 Common stock issued for acquisition of assets $ 13,541 $ — $ — The accompanying notes are an integral part of these consolidated financial statements. 82 Table of Contents 10x Genomics, Inc. Notes to Consolidated Financial Statements 1. Description of Business and Basis of Presentation Organization and Description of Business 10x Genomics, Inc. (the “Company”) is a life sciences technology company focused on building innovative products and solutions to interrogate, understand and master biology. The Company’s integrated research solutions include the Company’s single cell instruments, which include the Company’s Chromium instruments, and the Company’s Spatial instruments, which include the Company’s Visium CytAssist and Xenium Analyzer instruments, and the Company’s consumables, which include proprietary microfluidic chips, slides, reagents and other consumables for the Company’s Chromium, Visium and Xenium solutions. The Company bundles its software with these products to guide customers through the workflow, from sample preparation through analysis and visualization. Customers purchase instruments and consumables from the Company for use in their experiments. The Company was incorporated in the state of Delaware in July 2012 and began commercial and manufacturing operations and selling its instruments and consumables in 2015. The Company is headquartered in Pleasanton, California and has wholly-owned subsidiaries in Asia, Europe, Oceania and North America. Basis of Presentation The consolidated financial statements, which include the Company’s accounts and the accounts of its wholly-owned subsidiaries, are prepared in accordance with U.S. generally accepted accounting principles (or “GAAP”). All intercompany transactions and balances have been eliminated. Reclassification Amounts related to license and royalty revenue in the consolidated statements of operations for the years ended December 31, 2024 and 2023 have been reclassified to conform to the current presentation. Amounts related to accretion of discount and amortization of premium on marketable securities in the consolidated statements of operations for the years ended December 31, 2024 and 2023 have been reclassified to conform to the current presentation. Amounts related to other receivables in the consolidated balance sheet as of December 31, 2024 have been reclassified to conform to the current presentation. 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent liabilities, and the reported amounts of revenue and expense. These judgments, estimates and assumptions are used for, but not limited to, revenue recognition, inventory valuation and write-downs, accounting for asset and business acquisitions, the valuation of stock-based compensation awards and remeasurement of contingent consideration. The Company bases its estimates on various factors and information, which may include, but are not limited to, history and prior experience, the Company’s forecasts and future plans, current economic conditions and information from third-party professionals that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and recorded amounts of expenses that are not readily apparent from other sources. To the extent there are material differences between the Company’s estimates and the actual results, the Company’s future consolidated results of operation may be affected. Segment Information The Company operates as a single operating segment. The Company’s chief operating decision maker (“CODM”), its Chief Executive Officer, manages the Company’s operations on a consolidated basis for the purposes of allocating resources, making operating decisions and evaluating financial performance. The measures of profitability and significant segment expenses reviewed by the CODM are consistent with the presentation and disclosure in these consolidated financial statements. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from the date of purchase to be cash equivalents. Cash equivalents consist of amounts invested in money market funds and are stated at fair value. 83 Table of Contents Marketable Securities The Company designates investments in debt securities as available-for-sale. Available-for-sale debt securities with original maturities of three months or less from the date of purchase are classified within cash and cash equivalents. Available-for-sale debt securities with original maturities longer than three months are available to fund current operations and are classified as marketable securities, within current assets on the balance sheet. Available-for-sale debt securities are reported at fair value with the related unrealized gains and losses included in "Accumulated other comprehensive income (loss)," a component of stockholders’ equity, net of tax. Realized gains (losses) on the sale of marketable securities are determined using the specific-identification method and recorded in “Other income (expense), net,” in the Company’s consolidated statements of operations. The available-for-sale debt securities are subject to a periodic impairment review. For investments in an unrealized loss position, the Company determines whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. The Company recognizes an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and writes down the amortized cost basis of the investment if it is more likely than not that the Company will be required or will intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in “Other income (expense), net,” and unrealized losses not related to credit losses are recognized in “Other comprehensive income (loss).” There are no allowances for credit losses for the periods presented. Fair Value of Financial Instruments Cash equivalents are comprised of money market funds which are classified as Level 1 in the fair value hierarchy. Assets recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 - Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 - Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. The Company’s financial instruments consist of Level 1 and Level 2 assets. Where quoted prices are available in an active market, securities are classified as Level 1. Money market funds are classified as Level 1. Level 2 assets include corporate bonds, asset-backed securities, commercial paper, U.S. Government Treasury and agency securities, and debt securities in government-sponsored entities based upon quoted market prices for similar movements in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third party-data providers, including but not limited to, benchmark yields, interest rate curves, reported trades, broker/dealer quotes and reference data. The Company measures contingent consideration related to the Company’s acquisition of Scale Biosciences, Inc. (“Scale Bio”) at fair value on a recurring basis. Refer to Note 4, Acquisitions, for additional details regarding the acquisition. The contingent consideration is valued using a probability-weighted discounted cash flow approach, which reflects management’s estimates of future outcomes, timing of payments and discount rates. Because these inputs involve significant judgment, the fair value measurement are classified as Level 3 within the fair value hierarchy. Accounts Receivable, Net Accounts receivable consist of amounts due from customers for the sales of products and services. The Company reviews its accounts receivable and provides allowances of specific amounts if collectability is no longer reasonably assured based on historical experience and specific customer collection issues. As of December 31, 2025 and 2024, the allowance for doubtful accounts was $ 0.1 million for both periods. 84 Table of Contents Business Concentrations The Company’s instruments are mostly assembled and tested by third party contract manufacturers in Asia and the United States. The Company’s agreement with the contract manufacturers contains purchase commitments. In addition, the Company relies on several suppliers for key components for its reagent kits. A significant disruption in the operations of the contract manufacturers or suppliers may impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on its business, financial condition and results of operations. Concentrations Financial instruments that potentially subject the Company to credit risk consist of cash equivalents, marketable securities, accounts receivable and other receivables. The Company’s cash and cash equivalents held with large financial institutions in the United States and deposits exceed the Federal Deposit Insurance Corporation’s insurance limit. The Company performs periodic evaluations of the risks associated with its investments and the relative credit standing of these financial institutions. The Company performs ongoing credit evaluations of its customers’ financial condition. The Company does not require collateral from its customers but may require upfront payments from certain customers. The Company has not experienced material credit losses to date. For the years ended December 31, 2025, 2024, and 2023, no single customer represented more than 10% of revenue. No customer or distributor represented more than 10% of the Company’s outstanding accounts receivable as of December 31, 2025 or 2024. Inventory Inventory is recorded at the lower of cost, determined on a first-in, first-out basis, or net realizable value. The Company uses judgment to analyze and determine if the composition of its inventory is obsolete, slow-moving, unsalable or otherwise carried above the net realizable value and frequently reviews such determinations. The Company writes down specifically identified unusable, obsolete, slow-moving or known unsalable inventory and inventory otherwise carried above the net realizable value in the period that it is first recognized by using a number of factors including product expiration dates, open and unfulfilled orders and sales forecasts. Net realizable value is determined using the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Any write-down of its inventory to net realizable value establishes a new cost basis and will be maintained even if certain circumstances suggest that the inventory is recoverable in subsequent periods. Costs associated with the write-down of inventory are recorded to cost of revenue on the Company’s consolidated statements of operations. Leases The Company determines if an arrangement is or contains a lease at inception by assessing whether the arrangement contains an identified asset and whether it has the right to control the identified asset. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. ROU assets are based on the measurement of the lease liability and also include any lease payments made prior to or on lease commencement and exclude lease incentives and initial direct costs incurred, as applicable. The Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The Company gives consideration to its credit risk, term of the lease and total lease payments and adjusts for the impacts of collateral, as necessary, when calculating its incremental borrowing rates. The lease terms may include options to extend or terminate the lease when the Company is reasonably certain it will exercise such options. Lease costs for the Company’s operating leases are recognized on a straight-line basis within operating expenses and costs of goods sold over the reasonably assured lease term. The Company evaluates ROU assets related to leases for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of an ROU asset may not be recoverable. This evaluation is performed in a manner consistent with the Company’s impairment assessment for long-lived assets. When a decision has been made to sublease that space, the Company evaluates the asset for impairment and recognize the associated impact to the ROU asset and related expense, if applicable. The evaluation is performed at the lowest level of identifiable cash flows for an asset group. Undiscounted cash flows expected to be generated by the related ROU assets are estimated over the ROU assets’ useful lives. If the evaluation indicates that the carrying amount of the ROU assets may not be recoverable, any potential impairment is measured based upon the fair value of the related ROU asset or asset group as determined by appropriate valuation techniques. During the year ended December 31, 2025, the Company recognized an impairment loss related to the ROU assets associated with the leased facility acquired as part of the Scale Bio acquisition. Refer to the Impairment of Long-Lived Assets section below and Note 7, Commitments and Contingencies - Lease Agreements, for further details. 85 Table of Contents The Company has elected to not separate lease and non-lease components for any leases within its existing classes of assets and, as a result, accounts for any lease and non-lease components as a single lease component. The Company has also elected to not apply the recognition requirement to any leases within its existing classes of assets with a term of 12 months or less. Property and Equipment, Net Property and equipment is stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method based on the estimated useful lives of the following assets: Useful Life (Years) Building 3 - 40 Laboratory equipment and machinery 2 - 5 Computer equipment 2 - 5 Furniture and fixtures 3 Leasehold improvements 3 - 10 Acquisitions of Intellectual Property The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen test is met, the transaction is accounted for as an asset acquisition. If the screen test is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs, which would meet the requirements of a business. The Company accounts for asset acquisition under Accounting Standards Codification, Business Combinations, Topic 805, Subtopic 50 , which requires the acquiring entity in an asset acquisition to recognize net assets based on the cost to the acquiring entity on a relative fair value basis, which includes transaction costs in addition to consideration given. Goodwill is not recognized in an asset acquisition and any excess consideration transferred over the fair value of the net assets acquired is allocated to the non-monetary identifiable assets based on relative fair values. If the Company has the option to pay in equity for contingent consideration related to the acquisition, a liability is recorded in accordance with the guidance of ASC 480, Distinguishing Liabilities from Equity. The contingent consideration is recorded at fair value at inception and is revalued on a quarterly basis for any significant adjustments and recognized in the Company’s consolidated statements of operations in “Other income (expense), net.” Impairment of Long-Lived Assets The Company evaluates long-lived assets, such as property and equipment and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If indicators of impairment exist and the undiscounted future cash flows that the assets are expected to generate are less than the carrying value of the assets, the Company reduces the carrying amount of the assets to their estimated fair values based on a discounted cash flow approach or, when available and appropriate, to comparable market values. The Company recorded impairment charges of $ 2.1 million, $ 3.1 million and $ 9.8 million primarily relating to computer equipment, software, ROU assets, and intangible assets during the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 5, Other Financial Statement Information, for further details. Substantially all the Company’s long-lived assets are located in the United States. Product Warranties The Company generally provides a one-year warranty on its instruments. The Company reviews its exposure to estimated warranty obligations associated with instrument sales and establishes an accrual based on historical product failure rates and actual warranty costs incurred. This expense is recorded as a component of cost of revenue in the consolidated statements of operations. Deferred Revenue Deferred revenue consists of payments received in advance of revenue recognition primarily related to instrument service agreements, also referred to as extended warranties. Revenue under these agreements is recognized ratably over the related service 86 Table of Contents period. Deferred revenue expected to be recognized during the 12 months following the balance sheet date is recorded as current portion of deferred revenue and the remaining portion is recorded as long-term. Revenue Recognition Products and Services Revenue The Company generates revenue from sales of products, which consist of instruments and consumables, and services. Revenue from product sales is recognized when control of the product is transferred, which is generally upon shipment to the customer. Instrument service agreements, which relate to extended warranties, are typically entered into for a one-year term, following the expiration of the standard one-year warranty period. Revenue for extended warranties is recognized ratably over the term of the extended warranty period as a stand ready performance obligation. Revenue is recorded net of discounts, distributor commissions and sales taxes collected on behalf of governmental authorities. Customers are invoiced generally upon shipment, or upon order for services, and payment is typically due within 30 days. Cash received from customers in advance of product shipments or the provision of services is recorded as a contract liability. The Company’s contracts with its customers generally do not include rights of return or a significant financing component. The Company regularly enters into contracts that include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. The transaction price is allocated to each performance obligation in proportion to its standalone selling price. The Company determines standalone selling price using average selling prices with consideration of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, the Company relies upon prices set by management, adjusted for applicable discounts. License and Royalty Revenue The Company has agreements with third parties that include up-front fees and royalties. Revenue related to the delivery of intellectual property is recognized when the license is delivered to the third parties. Royalty revenue is recognized when the underlying sales occur. If the reporting of the actual sales from the Company’s licensees occurs after the Company’s reporting date, the Company estimates the royalty revenue receivable at the reporting date and adjusts for any changes in estimates in the following period. Cost of Products and Services Revenue Cost of product and services revenue primarily consists of manufacturing costs incurred in the production process, including personnel and related costs, component materials, labor and overhead, packaging and delivery costs and allocated costs including facilities and information technology. In addition, cost of product and services revenue includes royalty costs for licensed technologies included in the Company’s products, warranty costs and write-downs for slow-moving and obsolete inventory. Shipping and Handling Costs Shipping and handling charged to customers are recorded as revenue. Shipping and handling costs are included in the Company’s cost of revenue. Research and Development Research and development costs are expensed in the period incurred. Research and development expense consists of personnel and related costs, independent contractor costs, laboratory supplies, equipment maintenance, prototype and materials expenses, amortization of developed technology and intangibles and allocated costs including facilities and information technology. Advertising Costs Advertising costs are expensed as incurred. The Company incurred advertising costs of $ 2.5 million, $ 3.9 million and $ 3.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. Stock-Based Compensation The Company’s stock-based compensation expense relates to stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”), market-based performance stock awards ("PSAs") including performance stock options and performance RSUs granted pursuant to equity incentive plans, and stock purchase rights under an Employee Stock Purchase Plan (“ESPP”). Stock-based compensation expense for its stock-based awards is based on their grant date fair value. The Company determines the fair value of RSUs based on the closing price of its stock, which is listed on the Nasdaq Global Select Market, at the date of the 87 Table of Contents grant (or on the most recent trading day prior to grant, if the date of grant is not a trading day). The Company estimates the fair value of stock option awards under an equity incentive plan and stock purchase rights under an ESPP on the grant date using the Black-Scholes option-pricing model. The fair values of stock-based awards excluding PSUs and PSAs are recognized as compensation expense on a straight-line basis over the requisite service period in which the awards are expected to vest and forfeitures are recognized as they occur. The Black-Scholes model considers several variables and assumptions in estimating the fair value of stock-based awards. These variables include the per share fair value of the underlying common stock, exercise price, expected term, risk-free interest rate, expected annual dividend yield and the expected stock price volatility over the expected term. The Company calculated the expected term using the simplified method, which is the mid-point between the vesting and contractual term. Due to the short trading period of the Company's stock, the Company has estimated volatility by reference to the historical volatilities of the Company and that of similar publicly traded peer companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the equity-settled award. For PSAs, the Company derives the valuation of the award and the requisite service period for each separately vesting portion of the award using a Monte Carlo simulation model and the related compensation expense is recognized over the derived service period using the accelerated attribution method commencing on the grant date. The derived service period is the median duration of the successful stock price paths to meet the respective escalating stock price thresholds as simulated in the Monte Carlo valuation model which uses assumptions such as volatility, risk-free interest rate, cost of equity and dividend estimated for the performance period of the PSAs. If the related market condition is achieved earlier than its estimated derived service period, the stock-based compensation expense will be accelerated, and a cumulative catch-up expense will be recorded during the period in which the market condition is met. For PSUs, management reassesses the probability of vesting at each reporting period, and any changes in estimates are recognized on a cumulative catch-up basis for the stock-based compensation expense. Foreign Currency For foreign subsidiaries where the functional currency is the local currency, assets and liabilities are translated to the U.S. dollar using month-end exchange rates, and revenue and expenses using average exchange rates. The adjustments resulting from these foreign currency translations are recorded in “Accumulated other comprehensive income (loss).” For entities where the functional currency is the U.S. dollar, monetary assets and liabilities are remeasured using exchange rates in effect at the balance sheet dates and non-monetary assets and liabilities are remeasured at historical exchange rates. Revenue and expenses are remeasured at the average exchange rates for the period. Gains or losses from foreign currency remeasurement are included in “Other income (expense), net” in the consolidated statements of operations. Income Taxes The Company uses the asset and liability method of accounting for income taxes, in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply in the years in which those tax assets and liabilities are expected to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. The Company’s tax positions are subject to income tax audits. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is more likely than not (greater than 50% likely) to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in its tax provision. The Company calculates the current and deferred income tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed income tax returns are recorded when identified. The amount of income tax paid is subject to examination by U.S. and foreign tax authorities. The estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of the relevant risks, facts and circumstances existing at that time. To the extent the assessment of such tax position changes, the change in estimate is recorded in the period in which the determination is made. Net Loss Per Share Net loss per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and 88 Table of Contents Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase. For the calculation of diluted net loss per share, basic net loss per share is adjusted by the effect of dilutive securities including awards under the Company’s equity compensation plans. Diluted net loss per share is computed by dividing net loss by the weighted-average number of dilutive shares of common stock outstanding. For periods in which the Company reports net losses, diluted net loss per share is the same as basic net loss per share because potentially dilutive shares of common stock are not assumed to have been issued if their effect is anti-dilutive. Recently Issued Accounting Pronouncement and Disclosure Rules In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-09, Income Taxes (“ASU No. 2023-09”), which prescribes standardized categories and disaggregation of information in the reconciliation of provision for income taxes, requires disclosure of disaggregated income taxes paid, and modifies other income tax-related disclosure requirements. The updated standard is effective beginning with the Company’s fiscal year 2025 annual reporting period. The Company adopted ASU No. 2023-09 in its fourth quarter of 2025 using a prospective transition method and the additional disclosures required under the standard are included in the Company’s financial statement disclosures. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"), and in January 2025 issued ASU 2025-01, Clarifying the Effective Date ("ASU 2025-01") to provide clarification as to the effective date. ASU 2024-03 requires disaggregated disclosure of income statement expenses. ASU 2024-03 does not change the expense captions currently presented on the income statement; rather it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03, as amended by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027. ASU 2024-03 can be applied on a prospective basis; however, retrospective application is permitted. Early adoption is permitted. As ASU 2024-03 only requires additional disclosure, it will not have a material impact on the Company's financial condition and results of operations. 3. Restructuring During the year ended December 31, 2025, the Company implemented a reduction in force plan in order to decrease costs and maintain a streamlined organization to support the business. Restructuring charges of approximately $ 10.6 million associated with restructuring, comprised primarily of severance-related costs and the impairment loss associated with the Scale Bio ROU assets, were recorded during the year ended December 31, 2025. Restructuring costs of $ 0.5 million, $ 4.1 million and $ 6.0 million were recorded in cost of revenue, research and development expense, and selling, general and administrative expense, respectively, in the Company's consolidated statements of operations during the year ended December 31, 2025. No additional restructuring charges are expected to be incurred, and the restructuring activities are expected to be substantially completed by the end of the first quarter of 2026. In 2023, the Company implemented a restructuring plan related to the closure of one of its research and development facilities resulting in restructuring charges of $ 2.5 million, comprised primarily of long-lived assets impairment costs and one-time employee termination benefits which were recorded during the year ended December 31, 2023. Restructuring costs of $ 2.5 million were recorded in research and development and general and administrative expenses during the year ended December 31, 2023 in the Company's consolidated statements of operations. The restructuring activities were completed as of December 31, 2024. 89 Table of Contents The following table is a summary of restructuring costs related to the Company’s restructuring activities for the years ended December 31, 2025, 2024 and 2023 (in thousands): Termination Benefits Costs Stock-Based Compensation Expense Long-lived Assets Impairment Expenses Total Balance at January 1, 2023 $ 215 $ — $ — $ 215 Restructuring charge 310 — 2,171 2,481 Cash payments made ( 215 ) — — ( 215 ) Non-cash charge — — ( 2,171 ) ( 2,171 ) Balance at December 31, 2023 310 — — 310 Restructuring charge 259 — — 259 Cash payments made ( 569 ) — — ( 569 ) Balance at December 31, 2024 — — — — Restructuring charge 9,023 314 1,253 10,590 Cash payments made ( 7,736 ) — — ( 7,736 ) Non-cash charge — ( 314 ) ( 1,253 ) ( 1,567 ) Balance at December 31, 2025 $ 1,287 $ — $ — $ 1,287 4. Acquisitions 2025 Acquisition On August 7, 2025, the Company entered into an agreement to acquire all outstanding shares of common stock of Scale Bio, a single cell genomics technology company. Upon closing the transaction on August 11, 2025, the Company made an upfront payment consisting of $ 9.2 million in cash and $ 13.5 million ( 1,099,992 shares) in shares of the Company’s Class A common stock. In the first quarter of 2026, the Company expects to pay $ 20.0 million, subject to any adjustments, in cash and in shares of the Company’s Class A common stock in connection with the technology transfer completed in the third quarter of 2025. In the future the Company may pay up to $ 30.0 million of contingent consideration if certain milestones are met. The transaction was accounted for as an asset acquisition because substantially all of the fair value of the assets acquired is concentrated in the developed technology. The Company determined that the contingent consideration was within the scope of ASC 480, Distinguishing Liabilities from Equity , because the contingent consideration is payable in cash or shares of the Company’s Class A common stock, at the Company’s election. The contingent consideration was recorded at fair value as of the acquisition date. Upon closing, the Company recognized $ 22.4 million for the fair value of the contingent consideration. The following table summarizes the value of assets acquired and liabilities assumed (in thousands) as of the closing on August 11, 2025: Cash $ 1,390 Developed technology 51,639 Other assets and liabilities, net ( 6,467 ) Net identifiable assets acquired $ 46,562 Other assets and liabilities, net includes assumed liabilities for pre-acquisition services provided to Scale Bio by third parties which are also measured at fair value under ASC 480. The Company will remeasure the contingent consideration and assumed liabilities within the scope of ASC 480 as of each applicable reporting period. Upon remeasurement as of December 31, 2025, the Company recorded a $ 1.4 million change in the fair value within “Other income (expense), net” in the Company’s consolidated statement of operations. Measurement of the liabilities using a probability weighted discounted cash flow approach is classified as a Level 3 fair value measurement due to the use of significant unobservable inputs. The calculation relies upon the probability of achieving the milestones and approximate timing of payment based on the terms of the arrangement. 90 Table of Contents The following table discloses the summary of changes in the contingent consideration and assumed liabilities measured at fair value using Level 3 inputs (in thousands): Year Ended December 31, 2025 Beginning of period $ — Contingent consideration to sellers 22,378 Assumed liabilities to third parties 815 Change in fair value 1,407 Balance at end of period $ 24,600 Following the integration of Scale Bio’s operations, the Company determined to vacate a leased facility and recognized restructuring charges consisting of an impairment loss on the related ROU asset and severance-related costs during the year ended December 31, 2025. See Note 3, Restructuring , and Note 7, Commitments and Contingencies, for further details . 2023 Acquisition In 2023, the Company signed an agreement to acquire certain intangible and other assets from Centrillion Technologies, Inc. and Centrillion Technology Holdings Corp. for an upfront cash payment of $ 10.0 million relating to an intellectual property license. Upon the close of the transaction on July 14, 2023, the Company paid additional cash consideration of $ 10.0 million upon acquiring the assets. Under the agreement, the Company is obligated to pay for certain technology development milestones if they are met. As of December 31, 2025, the Company has paid $ 41.3 million relating to the completion of development milestones. Up to $ 15.0 million of cash consideration is due if an additional technology development milestone is met. The transaction was accounted for as an asset acquisition. In connection with this acquisition and milestone payments, the Company acquired an in-process research and development intangible asset of $ 61.0 million during the year ended December 31, 2023 which did not have alternative future use and therefore was recognized as an expense and included as a component of “In-process research and development” in the condensed consolidated statements of operations. The Company also acquired an intangible asset of $ 0.2 million related to assembled workforce which is included in “Intangible assets, net” in the consolidated balance sheets. The following table summarizes the value of assets acquired and liabilities assumed as of the closing date (in thousands): In-process research and development $ 60,980 Intangible assets - acquired workforce 200 Property and equipment 671 Operating lease liabilities ( 1,496 ) Other assets and liabilities, net 758 Total net assets acquired $ 61,113 91 Table of Contents 5. Other Financial Statement Information Available-for-sale Securities Available-for-sale securities at December 31, 2025 consisted of the following (in thousands): December 31, 2025 December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fair Value Measurement Cash equivalents: Money market funds $ 441,108 $ — $ — $ 441,108 $ 322,012 $ — $ — $ 322,012 Level 1 Marketable securities: Government debt securities 49,431 12 — 49,443 49,317 18 — 49,335 Level 2 Total available-for-sale securities $ 490,539 $ 12 $ — $ 490,551 $ 371,329 $ 18 $ — $ 371,347 The contractual maturities of marketable securities as of December 31, 2025 were all less than one year. The company incurred no gross realized losses from the sale of available-for-sales debt securities during the year ended December 31, 2025. During the years ended December 31, 2024 and 2023, the company incurred a de minimis gross realized loss and a gross realized loss of $ 1.7 million from the sale of available-for-sales debt securities, respectively. Realized gains (losses) on the sale of marketable securities are recorded in “Other expense, net” in the consolidated statements of operations. The available-for-sale debt securities are subject to a periodic impairment review. For investments in an unrealized loss position, the Company determines whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. The Company recognizes an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and writes down the amortized cost basis of the investment if it is more likely than not that the Company will be required or will intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in “Other expense, net,” and unrealized losses not related to credit losses are recognized in “Other comprehensive income (loss).” There are no allowances for credit losses for the periods presented. Inventory Inventory was comprised of the following (in thousands): December 31, 2025 2024 Finished goods $ 23,183 $ 16,736 Work in progress 17,135 27,441 Purchased materials 16,023 38,930 Inventory $ 56,341 $ 83,107 92 Table of Contents Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): December 31, 2025 2024 Building $ 147,493 $ 147,094 Leasehold improvements 89,724 89,567 Laboratory equipment and machinery 78,133 72,498 Land 36,765 36,765 Computer equipment and software 15,281 14,953 Furniture and fixtures 9,850 9,586 Construction in progress 2,929 5,152 Total property and equipment 380,175 375,615 Less: accumulated depreciation and amortization ( 153,464 ) ( 122,967 ) Property and equipment, net $ 226,711 $ 252,648 Depreciation expense was $ 31.2 million, $ 33.9 million and $ 32.9 million for the years ended December 31, 2025, 2024, and 2023, respectively. During the year ended December 31, 2025, the Company recorded impairment charges of $ 0.1 million related to leasehold improvements. During the year ended December 31, 2024, the Company recorded impairment charges of $ 2.1 million related to computer equipment and software of which $ 0.3 million, $ 0.7 million and $ 1.1 million was classified in cost of revenue, research and development, and selling, general and administrative expenses, respectively, in the consolidated statement of operations. The impairment charge was triggered by a decision to discontinue a productivity engineering project. Intangible Assets, Net Intangible assets, net consisted of the following (dollars in thousands): December 31, 2025 December 31, 2024 Remaining Useful Life in Years Gross Carrying Amount Accumulated Amortization Intangibles, Net Gross Carrying Amount Accumulated Amortization Intangibles, Net Developed technology 6.0 $ 52,639 $ ( 3,359 ) $ 49,280 $ 1,000 $ ( 92 ) $ 908 Technology licenses 8.8 22,504 ( 9,491 ) 13,013 22,504 ( 8,016 ) 14,488 Assembled workforce 0.5 1,328 ( 1,292 ) 36 1,328 ( 1,080 ) 248 Customer relationships 0.0 945 ( 945 ) — 945 ( 918 ) 27 Intangible assets, net $ 77,416 $ ( 15,087 ) $ 62,329 $ 25,777 $ ( 10,106 ) $ 15,671 During the year ended December 31, 2025, the Company recorded developed technology of $ 51.6 million and assembled workforce of $ 0.7 million in connection with the Scale Bio acquisition. The amortization of developed technology is recorded in cost of revenue. See Note 4, Acquisitions, for details related to intangibles acquired. During the year ended December 31, 2025, the Company recorded an impairment loss of $ 0.7 million for the assembled workforce. During the year ended December 31, 2023, the Company recorded impairment charges of $ 4.6 million related to its developed technology and assembled workforce. No impairment losses were recognized for intangible assets during the year ended December 31, 2024. 93 Table of Contents The estimated annual amortization of intangible assets for the next five years is shown below (in thousands): Estimated Annual Amortization 2026 $ 9,644 2027 9,609 2028 9,609 2029 9,608 2030 9,569 Thereafter 14,290 Total $ 62,329 Amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures and asset impairments, among other factors. Accrued Compensation and Related Benefits Accrued compensation and related benefits were comprised of the following (in thousands): December 31, 2025 2024 Accrued bonus $ 29,506 $ 21,859 Accrued commissions 5,335 5,938 Accrued payroll and related costs 4,964 2,970 Other 2,695 2,848 Accrued compensation and related benefits $ 42,500 $ 33,615 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were comprised of the following (in thousands): December 31, 2025 2024 Taxes payable $ 7,219 $ 4,936 Product warranties 6,828 8,615 Customer refunds and deposits payable 5,542 3,002 Accrued royalties for licensed technologies 4,971 7,042 Accrued professional services 2,914 5,315 Accrued legal and related costs 1,502 6,100 Accrued property and equipment 124 644 Other 10,871 5,511 Accrued expenses and other current liabilities $ 39,971 $ 41,165 94 Table of Contents Product Warranties Changes in the reserve for product warranties were as follows (in thousands): Year Ended December 31, 2025 2024 Beginning of period $ 8,615 $ 8,116 Amounts charged to cost of revenue 8,567 13,325 Repairs and replacements ( 10,354 ) ( 12,826 ) End of period $ 6,828 $ 8,615 Revenue and Deferred Revenue As of December 31, 2025, the aggregate amount of remaining performance obligations primarily related to separately sold extended warranty service agreements, or allocated amounts for extended warranty service agreements bundled with sales of instruments, was $ 34.4 million, of which approximately $ 23.9 million is expected to be recognized to revenue in the next 12 months, with the remainder thereafter. The contract liabilities of $ 34.4 million and $ 33.2 million as of December 31, 2025 and 2024, respectively, primarily consisted of deferred revenue related to extended warranty service agreements. Year Ended December 31, 2025 2024 Beginning of period $ 33,171 $ 21,964 Revenue recognized that was included in the contract liability at the beginning of the year ( 20,130 ) ( 11,407 ) Revenue deferred excluding amounts recognized as revenue during the period 21,362 22,614 End of period $ 34,403 $ 33,171 The following table represents revenue by source for the periods indicated (in thousands). Spatial products include the Company’s Visium and Xenium products: Year Ended December 31, 2025 2024 2023 Instruments Single Cell $ 22,671 $ 35,212 $ 47,866 Spatial 34,108 57,503 75,605 Total instruments revenue 56,779 92,715 123,471 Consumables Single Cell 363,206 372,308 420,316 Spatial 143,977 121,124 59,237 Total consumables revenue 507,183 493,432 479,553 Services 32,726 24,317 15,703 Products and services revenue 596,688 610,464 618,727 License and royalty revenue 46,135 321 — Total revenue $ 642,823 $ 610,785 $ 618,727 95 Table of Contents The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands): Year Ended December 31, 2025 2024 2023 Americas United States (a) $ 346,512 $ 334,318 $ 360,091 Americas (excluding United States) 12,261 13,447 13,101 Total Americas 358,773 347,765 373,192 Europe, Middle East and Africa 161,716 159,762 142,276 Asia-Pacific China 70,264 57,300 50,965 Asia-Pacific (excluding China) 52,070 45,958 52,294 Total Asia-Pacific 122,334 103,258 103,259 Total revenue $ 642,823 $ 610,785 $ 618,727 __________________________ (a) Includes license and royalty revenue. License and Royalty Revenue In February 2025, the Company settled its worldwide patent litigation with Vizgen, Inc. (“Vizgen”). As part of that settlement, Vizgen has limited rights to certain intellectual property owned or exclusively licensed by the Company. As one part of the settlement, the Company received an upfront payment of $ 26.0 million and receives royalties on Vizgen’s sales of products covered by the license. The $ 26.0 million upfront payment was recorded as a $ 9.2 million gain on settlement and $ 16.8 million in license and royalty revenue. The amount attributed to the gain on settlement was determined by applying a royalty rate to Vizgen’s historical revenues prior to the settlement. In May 2025, the Company entered into a settlement agreement and license agreements with Bruker Corporation (“Bruker”) resolving all outstanding litigation and other proceedings between the parties across all jurisdictions around the world. Under the agreements, the Company has the right to receive four quarterly installment payments beginning in the third quarter of 2025, which total $ 68.0 million, and applicable interest. The Company receives royalties on Bruker’s sales of products and services covered by the license. The $ 68.0 million amount was recorded as a $ 40.7 million gain on settlement and $ 27.3 million in license and royalty revenue. The amount attributed to the gain on settlement was determined by applying a royalty rate to the historical revenues prior to the settlement. As of December 31, 2025, the Company had received two quarterly installment payments from Bruker, and the remaining balance was recognized under other receivables which is presented separately on the Company’s consolidated balance sheets. Other Income (Expense), Net “Other income (expense), net” in the consolidated statements of operations primarily consists of gains or losses from foreign currency remeasurement and fair value adjustments of contingent consideration. The Company recognized a foreign currency transaction gain of $ 2.5 million for the year ended December 31, 2025, a foreign currency transaction loss of $ 2.1 million for the year ended December 31, 2024, and a foreign currency transaction gain of $ 1.2 million for the year ended December 31, 2023. The Company recognized a $ 1.4 million change in fair value of contingent consideration related to the Scale Bio acquisition for the year ended December 31, 2025. 96 Table of Contents 6. Income Tax Income (loss) before provision for income taxes were as follows (in thousands): Year Ended December 31, 2025 2024 2023 United States $ ( 44,598 ) $ ( 187,720 ) $ ( 263,292 ) International 4,691 10,020 14,529 Total $ ( 39,907 ) $ ( 177,700 ) $ ( 248,763 ) The provision for income taxes consisted of the following (in thousands): Year Ended December 31, 2025 2024 2023 Current provision: Federal $ ( 7 ) $ 396 $ 351 State 397 314 180 Foreign 3,557 3,508 6,252 Total current provision for income taxes 3,947 4,218 6,783 Deferred provision: Federal — — — State — — — Foreign ( 310 ) 709 ( 447 ) Total deferred provision for income taxes ( 310 ) 709 ( 447 ) Provision for income taxes $ 3,637 $ 4,927 $ 6,336 97 Table of Contents A reconciliation of the federal statutory income tax provision to the effective income tax provision is as follows (in thousands): Year Ended December 31, 2025 Amount Percent U.S. federal statutory tax rate $ ( 8,380 ) 21 % State and local income taxes, net of federal income tax effect (a) ( 2,363 ) 6 % Foreign tax effects Singapore Nondeductible compensation 1,179 ( 3 ) % Other ( 248 ) 1 % Other foreign jurisdictions 274 ( 1 ) % Effect of cross-border tax laws 336 ( 1 ) % Tax credits Research and development tax credits ( 4,250 ) 11 % Changes in valuation allowance ( 5,038 ) 13 % Nontaxable or nondeductible items Stock-based compensation 14,551 ( 37 ) % Executive compensation (162(m)) 1,208 ( 3 ) % Other items 503 ( 1 ) % Changes in unrecognized tax benefits 5,865 ( 15 ) % Effective tax rate $ 3,637 ( 9 ) % ___________________ (a) State taxes in California, Pennsylvania and Texas made up the majority (greater than 50 percent) of the tax effect in this category. Year Ended December 31, 2024 2023 Income tax provision at federal statutory rate $ ( 37,317 ) $ ( 52,240 ) State taxes, net of federal benefit ( 11,938 ) ( 14,831 ) Tax credits ( 8,895 ) ( 14,551 ) Foreign taxes 2,148 3,888 Stock-based compensation 15,978 2,422 Change in valuation allowance 36,378 79,551 Acquisition related expenses — 2,296 Waived deductions under Section 59A 8,190 — Other 383 ( 199 ) Total provision for income taxes $ 4,927 $ 6,336 98 Table of Contents Deferred income taxes reflect the net tax effect of temporary differences between amounts recorded for financial reporting purposes and amounts used for tax purposes. The major components of deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2025 2024 Deferred tax assets Net operating loss carryforwards $ 202,704 $ 161,681 Research and development tax credits 111,143 103,555 Accruals and reserves 17,323 12,302 Operating lease liability 19,441 19,628 Intangibles 27,845 35,966 Stock-based compensation 24,383 26,772 Capitalized research and development 103,001 136,267 Total deferred tax assets 505,840 496,171 Valuation allowance ( 490,154 ) ( 479,452 ) Net deferred tax assets 15,686 16,719 Deferred tax liabilities Property and equipment ( 2,855 ) ( 4,124 ) Operating right-of-use assets ( 13,436 ) ( 13,510 ) Total deferred tax liabilities ( 16,291 ) ( 17,634 ) Net deferred tax liabilities $ ( 605 ) $ ( 915 ) As of December 31, 2025 and 2024, the Company maintained a full valuation allowance on its U.S. net deferred tax assets. The U.S. deferred tax assets predominantly relate to operating losses, tax credits and capitalized research and development intangibles. The U.S. valuation allowance was estimated based on an assessment of both positive and negative evidence to determine whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. The Company’s history of cumulative losses, along with expected future U.S. losses, required that a full valuation allowance be recorded against all U.S. net deferred tax assets. The Company intends to maintain a full valuation allowance on U.S. net deferred tax assets until sufficient positive evidence exists to support a reversal of the valuation allowance. The valuation allowance increased by $ 10.7 million and by $ 36.4 million for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, the Company had federal net operating loss (“NOL”) carryforwards of $ 808.1 million and federal tax credit carryforwards of $ 93.8 million. The federal NOL carryforwards generated after December 31, 2017 totaling $ 802.3 million are carried forward indefinitely, while all other federal NOL and tax credit carryforwards expire beginning in 2033 and 2036, respectively. As of December 31, 2025, the Company had state NOL carryforwards of $ 506.5 million, which begin to expire primarily in 2033. In addition, the Company had state tax credit carryforwards of $ 77.4 million, which do not expire. Utilization of the net operating loss and tax credit carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. Any annual limitation may result in the expiration of net operating losses and credits before utilization. If an ownership change occurred, utilization of the net operating loss and tax credit carryforwards could be significantly reduced. Income taxes paid, net of refunds received, consisted of the following (in thousands): Year Ended December 31, 2025 Amount Percent State $ 195 8 % Foreign Singapore 947 40 % Other foreign jurisdictions 1,249 52 % Total income taxes paid, net of refunds received $ 2,391 100 % 99 Table of Contents The total balance of unrecognized gross tax benefits, resulting primarily from research and development tax credits claimed on the Company’s annual tax returns, were as follows (in thousands): 2025 2024 Unrecognized tax benefits at beginning of year $ 50,022 $ 45,713 Reductions related to settlements with tax authorities — ( 285 ) Reductions based on prior year tax provisions ( 739 ) ( 1,617 ) Additions related to acquisitions 2,287 — Additions based on prior year tax provisions 436 467 Additions based on current year tax provisions 3,484 5,744 Unrecognized tax benefits at end of year $ 55,490 $ 50,022 The total amount of unrecognized gross tax benefits was $ 55.5 million and $ 50.0 million as of December 31, 2025 and 2024, respectively, of which $ 3.3 million and $ 2.9 million, if recognized, would affect our effective tax rate, respectively. The Company is subject to the examination of its income tax returns by the U.S. Internal Revenue Service and other domestic and foreign tax authorities. The United States, California, Singapore, and Sweden are considered as major jurisdictions. The Company has not been audited in such jurisdictions. Tax examinations are expected to focus primarily on research and development tax credits and intercompany transfer pricing practices. Due to NOLs and tax credit carryforwards, as of December 31, 2025, federal and California income tax returns for the years ended 2012 through the current period are open to examination. Significant foreign income tax returns for the years 2019 through the current period are open to examination. Due to the number of years remaining that are subject to examination, the Company is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. The Company includes interest and penalties related to income tax matters within the provision for income taxes. The total amount of gross interest and penalties accrued was $ 2.1 million and $ 1.6 million for the years ended December 31, 2025 and 2024, respectively. The Company recognized interest and penalty expenses of $ 0.6 million, $ 0.7 million and $ 0.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. The Company maintained undistributed earnings overseas as of December 31, 2025, and the Company believed the funds held by all non-U.S. subsidiaries will be permanently reinvested outside of the U.S. However, if these funds were repatriated to the U.S. or used for U.S. operations, the Company may be subject to withholding taxes in the foreign countries. As a result of tax reform, the Company’s unrepatriated earnings are no longer subject to federal income tax in the U.S. when distributed. 7. Commitments and Contingencies Indemnification From time to time, the Company has entered into indemnification provisions under certain agreements in the ordinary course of business, typically with business partners, customers and suppliers. Pursuant to these agreements, the Company may indemnify, hold harmless and agree to reimburse the indemnified parties on a case-by-case basis for losses suffered or incurred by the indemnified parties in connection with any patent or other intellectual property infringement claim by any third party with respect to the Company’s products. The Company maintains product liability insurance coverage that would generally enable it to recover a portion of the amounts paid. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by them in any action or proceeding to which any of them are, or are threatened to be, made a party by reason of their service as a director or officer (see “—Litigation” below). The Company also may be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. Non-cancelable Purchase Commitments The Company’s contract manufacturers make advance purchases of components based on the instrument unit forecasts and purchase orders placed by the Company. To the extent these components are purchased by a contract manufacturer on the Company’s behalf and cannot be used by their other customers, the Company is obligated to purchase these components. In addition, certain supplier agreements require the Company to make minimum annual purchases under the agreements. As of December 31, 2025, the Company had commitments to make a total of $ 12.2 million in purchases over the next two years . As of December 31, 2025, the Company had entered into non-cancelable arrangements for subscription software services to make payments aggregating to $ 18.6 million over the next four years . 100 Table of Contents Intellectual Property Licensing The minimum commitments related to the Company's license arrangements aggregate to $ 24.9 million as of December 31, 2025 to be paid over the next 16 years. Lease Agreements The Company leases office, laboratory, manufacturing, distribution and server space with lease terms up to 10 years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. In August 2025, the Company recorded $ 1.8 million in right of use asset and lease liabilities in connection with Scale Bio acquisition. See Note 3, Asset Acquisition , for details related to right of use assets and lease liabilities acquired. As of December 31, 2025, the Company recognized an impairment loss of approximately $ 1.3 million related to the ROU assets associated with the Scale Bio leased facility as a result of the decision to vacate the facility to optimize asset utilization and improve operational efficiency following the integration of existing operations. For the years ended December 31, 2025, 2024 and 2023, the Company incurred $ 12.5 million, $ 12.6 million and $ 13.6 million, respectively, of operating lease costs and $ 1.0 million, $ 0.5 million and $ 0.2 million, respectively, of variable lease costs. The variable lease cost is comprised primarily of the Company’s proportionate share of operating expenses, property taxes and insurance and is classified as lease cost due to the Company’s election to not separate lease and non-lease components. The sublease income for the years ended December 31, 2025, 2024 and 2023, were $ 0.6 million, $ 1.2 million and $ 0.5 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2025, 2024 and 2023 were $ 16.2 million, $ 17.8 million and $ 15.2 million, respectively, and were included in net cash used in operating activities in the Company’s consolidated statements of cash flows. The payments due under of the Company’s operating lease liabilities as of December 31, 2025 are as follows (in thousands): Operating Leases 2026 $ 15,630 2027 16,805 2028 16,394 2029 14,800 2030 9,853 Thereafter 29,537 Total lease payments $ 103,019 Less: imputed interest ( 18,658 ) Present value of operating lease liabilities $ 84,361 Operating lease liabilities, current $ 10,985 Operating lease liabilities, noncurrent 73,376 Total operating lease liabilities $ 84,361 The following table summarizes additional information related to the Company’s operating leases: December 31, 2025 December 31, 2024 Weighted-average remaining lease term: Operating leases 6.7 years 6.8 years Weighted-average discount rate: Operating leases 5.9 % 5.8 % 101 Table of Contents Litigation The Company is regularly subject to lawsuits, claims, arbitration proceedings, administrative actions and other legal and regulatory proceedings involving intellectual property disputes, commercial disputes, competition and other matters, and the Company may become subject to additional types of lawsuits, claims, arbitration proceedings, administrative actions, government investigations and legal and regulatory proceedings in the future. As of December 31, 2025, the Company has concluded that a loss is not probable and a contingent liability has not been recorded. Parse In August 2022, the Company filed suit against Parse Biosciences, Inc. (“Parse”) in the U.S. District Court for the District of Delaware alleging that Parse’s Evercode Whole Transcriptomics products and ATAC-seq products infringe U.S. Patent Nos. 10,155,981 (the “981 patent”), 10,697,013 (the “013 patent”), 10,240,197 (the “197 patent”), 10,150,995 (the “995 patent”), 10,619,207 (the “207 patent”) and 10,738,357 (the “357 patent”). In February 2025, the Court entered a consent judgment and permanent injunction against Parse with respect to the 995, 207 and 357 patents relating to ATAC-seq. Parse filed petitions for Inter Partes Review (“IPR”) of the 981, 197 and 013 patents which were found unpatentable by the Patent Trial and Appeals Board in February 2025. The Company strongly disagrees with those decisions and has appealed. The Court has stayed the litigation pending the outcome of the appeals. In August 2025, the Company acquired Scale Bio. Scale Bio and Parse are parties in a litigation in the U.S. District Court for the District of Delaware in which Scale Bio is asserting that Parse’s Evercode products infringe U.S. Patent Nos. 10,626,442, 10,982,256, 11,512,341 and 11,634,752 (the “752 patent”) and Parse is asserting the Scale Bio’s single cell sequencing products infringe U.S. Patent Nos. 10,900,065, 11,168,355 and 11,427,856 (the “Asserted Parse Patents”). On February 13, 2025 the parties filed a stipulation agreeing that Scale Bio’s High Throughput Assay and methods of using such assays do not infringe the Asserted Parse Patents, and dismissing such claims. In October 2025, the Court entered summary judgment that the 752 patent is invalid. The Company disagrees with this decision and plans to appeal. In November 2025, the Court entered summary judgment that the accused Scale Bio products do not infringe the Asserted Parse Patents. Additional summary judgment motions are pending and a trial date has not been set. Curio In December 2023, the Company filed suit against Curio Bioscience, Inc. (“Curio”) in the U.S. District Court for the District of Delaware alleging that the Curio Seeker Spatial Mapping Kit and associated products and services infringe U.S. Patent Nos. 10,480,022, 10,662,468, 11,001,879, 11,549,138 and 11,761,030. Trial is scheduled for May 2026. In December 2023, the Company filed a request for a preliminary injunction in the Dusseldorf Local Division of the UPC alleging that the Curio Seeker Spatial Mapping Kit and associated products and services infringe EP Patent No. 2697391 (the “EP 391 patent”). In April 2024, the UPC granted the Company’s request and issued a preliminary injunction requiring Curio to stop offering, marketing, using or possessing these Curio Seeker products and services in Germany, France and Sweden. Curio did not appeal the preliminary injunction. On March 25, 2024, the Company filed a main request in the Dusseldorf Local Division of the UPC alleging that the Curio Seeker Spatial Mapping Kit and associated products and services infringe the EP 391 patent. In June 2025, the UPC found that Curio infringes one of the patent’s claims and issued a permanent injunction ordering Curio to cease and desist from selling the Seeker products in Germany, France and Sweden. Illumina In October 2025, the Company filed two lawsuits against Illumina, Inc. (“Illumina”) in the United States District Court for the District of Delaware. In the first suit, the Company alleges Illumina’s announced spatial technology program infringe U.S. Patent Nos. 11,008,607, 11.549,138, 12,234,505 and 12,297,487. In the second suit, the Company alleges Illumina’s single cell kits and workflow infringe U.S. Patent Nos. 11,692,214, 11,932,902, 12,275,993, 12,305,239 and 12,416,192. Illumina filed its answers in December 2025 and an amended answer in the single cell suit in February 2026. No case schedule has been set. 8. Capital Stock The Company’s Amended and Restated Certificate of Incorporation authorizes it to issue 1,200,000,000 shares of capital stock consisting of 1,000,000,000 shares of Class A common stock, 100,000,000 shares of Class B common stock, and 100,000,000 shares of preferred stock. 102 Table of Contents Common Stock The following table represents the number of shares of Class B common stock converted to shares of Class A common stock upon the election of the holders of such shares during the years: Year Ended December 31, 2025 2024 2023 Class B common stock converted to Class A common stock 3,977,961 — 4,610,422 The Company’s Class A common stock and Class B common stock have a par value of $ 0.00001 per share. Each share of Class B common stock has the right to ten votes and each share of Class A common stock has the right to one vote per share. All other rights and privileges of Class A and Class B common stock are equivalent. Class B common shares are convertible to Class A common shares at any time upon written notification and all Class B common shares will convert upon the date specified by vote or written consent of the holders of a majority of the then outstanding Class B common stock, voting together as a single class. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. 9. Equity Incentive Plans Amended and Restated 2012 Stock Plan Following the adoption of the 2019 Omnibus Incentive Plan in September 2019, any awards outstanding under the Amended and Restated 2012 Stock Plan (“2012 Plan”) continue to be governed by their existing terms but no further awards may be granted under the 2012 Plan. As of December 31, 2025, the number of shares of Class A common stock issuable under the 2012 Plan, which includes shares issuable upon the exercise of outstanding awards, was 1,295,245 . 2019 Omnibus Incentive Plan The 2019 Omnibus Incentive Plan (“2019 Plan”) allows for the issuance of incentive stock options, non-statutory stock options (“NSOs”) or restricted shares. Incentive stock options may be granted only to the Company’s employees (including officers and directors who are also considered employees). NSOs and restricted shares may be granted to the Company’s employees and service providers. As of December 31, 2025, the number of shares of Class A common stock available for issuance under the 2019 Plan was 10,092,793 shares issuable in connection with outstanding awards and 21,857,245 shares reserved for issuance in connection with grants of future awards. The number of shares of Class A common stock reserved for issuance under the 2019 Plan at the time the 2019 Plan was adopted in 2019 was 11,000,000 . The 2019 Plan provides that the total number of shares of the Company’s Class A common stock that may be issued under the 2019 Plan, including options authorized and options outstanding, is 11,000,000 (such share limit as increased from time to time, the “Absolute Share Limit”). However, the Absolute Share Limit shall be increased on the first day of each calendar year commencing on January 1, 2021 and ending on January 1, 2029 in an amount equal to the lesser of (i) 5 % of the total number of shares of common stock outstanding on the last day of the immediately preceding fiscal year and (ii) such number of shares of the Company’s Class A common stock as determined by the Company’s board of directors. However, if on January 1 of a calendar year, the Company’s board of directors has not either confirmed the 5 % increase described in clause (i) or approved a lesser number of shares of the Company’s Class A common stock for such calendar year, then the Company’s board of directors will be deemed to have waived the automatic increase, and no such increase will occur for such calendar year. Of the Absolute Share Limit, no more than 11,000,000 shares of Class A common stock may be issued in the aggregate pursuant to the exercise of incentive stock options granted under the 2019 Plan. Options issued under the 2019 Plan have a contractual term of 10 years. The exercise price of an incentive stock option and NSO shall not be less than 100 % of the fair market value of the shares on the date of grant. 103 Table of Contents Stock Options A summary of the Company’s stock option activity under the 2012 and 2019 Plans is as follows: Outstanding Options Weighted- Average Exercise Price Weighted- Average Remaining Term (Years) Aggregate Intrinsic Value Balance as of December 31, 2024 4,594,582 $ 45.37 5.4 $ 13,834,082 Exercised ( 478,085 ) 2.83 Forfeited ( 555,200 ) 61.62 Balance as of December 31, 2025 3,561,297 $ 48.55 4.6 $ 10,337,526 Vested and exercisable as of December 31, 2025 3,253,508 $ 49.02 4.4 $ 10,337,526 The Company did not grant stock options during the years ended December 31, 2025 and 2024. The weighted-average grant date fair value of options granted during the year ended December 31, 2023 was $ 33.67 per share. The total intrinsic value of stock options exercised was $ 4.4 million, $ 12.3 million and $ 78.0 million during the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025, the total unrecognized stock-based compensation related to stock options was $ 4.9 million, which will be recognized over a weighted-average period of approximately one year . The fair value of each employee option granted in 2023 was estimated on the date of grant using the Black-Scholes option pricing model and the following assumptions for the periods indicated: Year Ended December 31, 2023 Expected volatility 70 % – 71 % Risk-free interest rate 3.7 % – 4.6 % Expected term 5.3 – 6.1 years Expected dividend — % Restricted Stock Units Restricted stock units (“RSUs”) activity for the year ended December 31, 2025 is as follows: Restricted Stock Units Weighted-Average Grant Date Fair Value (per share) Balance as of December 31, 2024 6,493,387 $ 35.55 Granted 6,184,585 10.65 Vested ( 3,117,074 ) 30.68 Forfeited ( 1,734,157 ) 27.12 Outstanding as of December 31, 2025 7,826,741 $ 19.68 As of December 31, 2025, the total unrecognized stock-based compensation related to RSUs was $ 118.0 million, which will be recognized over a weighted-average period of approximately two years . Performance Stock Awards In March 2025, the Company granted 561,603 PSUs (“2025 PSUs”) under the 2019 Plan to certain members of management which are subject to the achievement of certain performance conditions established by the Company’s Compensation Committee of the Board of Directors as described below: i. 50 % of target 2025 PSUs earned will be based on the Company’s compound annual growth rate (“CAGR”) of the Company’s revenue over a two-year performance period from January 1, 2025 to December 31, 2026. Holders may earn from 0 % to 200 % of the target amount of shares and earned 2025 PSUs will then be subject to service-based vesting; and 104 Table of Contents ii. 50 % of target 2025 PSUs earned will be based on the relative Total Shareholder Return (“TSR”) of the Company’s Class A common stock as compared to the TSR of the members of the Russell 3000 Medical Equipment and Services Sector Index over a three-year performance period from January 1, 2025 to December 31, 2027. Depending on the results relative to the TSR market condition, the holders may earn from 0 % to 200 % of the target amount of shares which will vest at the end of the performance period. The 2025 PSUs will be forfeited if the performance or market conditions are not achieved at the end of the relative performance periods as described above. The vesting of the 2025 PSUs can also be triggered upon certain change in control events or in the event of death or disability. The weighted-average grant date fair values of the 2025 PSUs relating to CAGR and TSR components were $ 10.76 and $ 13.94 per share, respectively. Stock-based compensation expense recognized for the 2025 PSUs relating to TSR components was $ 1.0 million for the year ended December 31, 2025. The vesting of the CAGR components of the 2025 PSUs was deemed not probable of vesting as of December 31, 2025, which resulted in no stock-based compensation expense recognized for the year ended December 31, 2025. The Company estimated the fair values of the shares granted under the TSR component of the 2025 PSUs using a Monte Carlo simulation model with the following assumptions: Year Ended December 31, 2025 Expected volatility 67 % Risk-free interest rate 4.0 % Expected dividend yield — % In March 2024, the Company granted 219,168 PSUs (“2024 PSUs”) under the 2019 Plan to certain members of management which are subject to the achievement of certain performance conditions established by the Company’s Compensation Committee of the Board of Directors as described below: i. 50 % of target 2024 PSUs earned were based on the Company’s CAGR of the Company’s revenue over a two-year performance period from January 1, 2024 to December 31, 2025. Holders could have earned from 0 % to 175 % of the target amount of shares and earned 2024 PSUs would have then been subject to service-based vesting; and ii. 50 % of target 2024 PSUs earned will be based on the relative TSR of the Company’s common stock as compared to the TSR of the members of the Russell 3000 Medical Equipment and Services Sector Index over a three-year performance period from January 1, 2024 to December 31, 2026. Depending on the results relative to the TSR market condition, the holders may earn from 0 % to 200 % of the target amount of shares which will vest at the end of the performance period. The 2024 PSUs were or will be forfeited if the performance or market conditions were or are not achieved at the end of the relative performance periods as described above. The Company did not achieve the revenue CAGR performance condition over the two-year performance period; accordingly, the PSUs subject to this performance condition were forfeited as of December 31, 2025. The vesting of the 2024 PSUs subject to the relative TSR condition can also be triggered upon certain change in control events or in the event of death or disability. The weighted-average grant date fair values of the 2024 PSUs relating to CAGR and TSR components were $ 37.43 and $ 44.80 per share respectively. Stock-based compensation expense recognized for the 2024 PSUs relating to TSR components was $ 1.3 million for each of the years ended December 31, 2025 and 2024. The vesting of the CAGR component for the 2024 PSUs was deemed not probable of vesting as of December 31, 2025 and December 31, 2024, which resulted in no stock-based compensation expense recognized for the years ended December 31, 2025 and 2024. The Company estimated the fair values of the shares granted under the TSR component of the 2024 PSUs using a Monte Carlo simulation model with the following assumptions: Year Ended December 31, 2024 Expected volatility 66 % Risk-free interest rate 4.5 % Expected dividend yield — % In March 2023, the Company granted 172,842 PSAs (“2023 PSAs”) under the 2019 Plan to certain members of management, which are subject to the achievement of certain escalating stock price thresholds established by the Company's Compensation Committee of the Board of Directors. 105 Table of Contents The 2023 PSAs each vest in equal installments upon the achievement of escalating stock price thresholds of $ 72.14 , $ 96.19 and $ 120.24 , respectively, calculated based on the volume-weighted average price per share of the Company’s Class A common stock over the immediately trailing 20 trading day period for each respective threshold. The escalating stock price thresholds can be met any time prior to the fifth anniversary of the date of grant. The vesting of the 2023 PSAs can also be triggered upon certain change in control events and achievement of certain change in control price thresholds, or in the event of death or disability. The weighted-average grant date fair value of the 2023 PSAs was $ 43.13 . Stock-based compensation expense recognized for the 2023 PSAs was $ 1.7 million and $ 5.1 million for the years ended December 31, 2024 and 2023, respectively. The Company estimated the fair values of shares granted under the 2023 PSAs using a Monte Carlo simulation model with the following assumptions: Year Ended December 31, 2023 Expected volatility 71 % Risk-free interest rate 3.7 % Expected dividend — % In September 2022, the Company granted 709,025 PSAs (“2022 PSAs”) including RSUs and a performance stock option under the 2019 Plan to certain members of management, which are subject to the achievement of certain stock price thresholds established by the Company’s Compensation Committee of the Board of Directors. Stock-based compensation expense recognized for the 2022 PSAs was $ 2.4 million and $ 10.0 million for the years ended December 31, 2024 and 2023, respectively. 2019 Employee Stock Purchase Plan In July 2019, the Company’s board of directors adopted the 10x Genomics, Inc. 2019 Employee Stock Purchase Plan (the “ESPP”), which was subsequently approved by the Company’s stockholders. The ESPP went into effect on September 11, 2019. Subject to any limitations contained therein, the ESPP allows eligible employees to contribute, through payroll deductions, up to 15 % of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. The ESPP generally provides for consecutive 6-month offering periods. During the years ended December 31, 2025, 2024 and 2023, 708,628 , 385,967 , and 217,537 shares of Class A common stock, respectively, were issued under the ESPP. The ESPP provides that the maximum number of shares of the Company’s Class A common stock made available for sale thereunder will be 4,909,589 , which number will be automatically increased on the first day of each calendar year commencing on January 1, 2021 and ending on January 1, 2029 in an amount equal to the lesser of (i) 1 % of the total number of shares of common stock outstanding on the last day of the immediately preceding fiscal year and (ii) such number of shares of the Company’s Class A common stock as determined by the Company’s board of directors. However, if on January 1 of a calendar year the Company’s board of directors has not either confirmed the 1 % described in clause (i) or approved a lesser number of shares of the Company’s Class A common stock for such calendar year, the Company’s board of directors will be deemed to have waived the automatic increase and no such increase will occur for such calendar year. The maximum number of shares available under the ESPP (and any share limitations thereunder, as applicable) will automatically be adjusted upon certain changes to the Company’s capital structure. As of December 31, 2025, there were 3,223,673 shares available for issuance under the ESPP. For the years ended December 31, 2025, 2024, and 2023 the weighted average grant date fair values of options granted under the ESPP, using the Black-Scholes option pricing model, were $ 4.07 , $ 6.42 , and $ 16.91 respectively. The following assumptions were used in estimating the fair values of shares under the ESPP: Year Ended December 31, 2025 2024 2023 Expected volatility 67 % – 75 % 49 % – 80 % 49 % – 58 % Risk-free interest rate 3.80 % – 4.30 % 4.44 % – 5.4 % 5.24 % – 5.41 % Expected term (in years) 0.5 0.5 0.5 Expected dividend — % — % — % As of December 31, 2025, the total unrecognized stock-based compensation related to the ESPP was $ 1.0 million, which will be recognized over a weighted-average period of approximately 0.4 years. 106 Table of Contents Stock-based Compensation The Company recorded stock-based compensation expense in the consolidated statement of operations for the periods presented as follows (in thousands): Year Ended December 31, 2025 2024 2023 Cost of revenue $ 8,497 $ 8,348 $ 7,068 Research and development 49,568 66,315 72,804 Selling, general and administrative 50,739 66,086 87,078 Total stock-based compensation expense $ 108,804 $ 140,749 $ 166,950 10. Employee Benefit Plans The Company has made available to all full-time United States employees a 401(k) retirement savings plan. Under this plan, employee and employer contributions and accumulated plan earnings qualify for favorable tax treatment under Section 401(k) of the Internal Revenue Code. The Company matches 100 % of the first 3 % of the employee's eligible compensation, up to a maximum of two thousand dollars annually per employee. The Company contributed $ 1.9 million, $ 1.9 million, and $ 1.8 million for the years ended December 31, 2025, 2024, and 2023 respectively. 11. Net Loss Per Share The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect: Year Ended December 31, 2025 2024 2023 Restricted stock units 7,826,741 6,493,387 5,334,134 Stock options to purchase common stock 3,561,297 4,594,582 5,946,786 Shares committed under ESPP 59,520 124,652 48,302 Total 11,447,558 11,212,621 11,329,222 107 Table of Contents Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. None.