Thank you, and good afternoon, everyone. Earlier today, 10x Genomics released financial results for the first quarter ended March 31st, 2026.

If you have not received this news release or would like to be added to the company's distribution list, please send an email to [email protected]. An archived webcast of this call will be available on the Investor tab of the company's website, 10xgenomics.com, for at least 45 days following this call.

Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward-looking statements.

Additional information regarding these risks, uncertainties, and factors that could cause results to differ appears in the press release 10x Genomics issued today and in the documents and reports filed by 10x Genomics from time to time with the Securities and Exchange Commission. 10x Genomics disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise.

Joining the call today are Serge Saxonov, our CEO and Co-Founder, and Adam Taich, our Chief Financial Officer. We will host a question-and-answer session after our prepared remarks.

We ask analysts to please keep to one question so that we may accommodate everyone in the queue. With that, I will now turn the call over to Serge.

Thanks, Cassie, and good afternoon, everyone. We had a really nice start to the year, with solid sales momentum, a step-change advance in our product roadmap, and strong execution across the business.

Revenue for the first quarter was $151 million, representing 9% growth over Q1 2025 when excluding the non-recurring settlement revenue in the prior year period. In single cell, we again saw double-digit growth in consumable reaction volumes, driven by Flex APEX.

As we have expected and as we have been seeing over the past several quarters, our new products with more accessible pricing have been unlocking new waves of single cell demand. Similarly, in spatial, we again delivered double-digit growth in consumables revenue, which was driven by Xenium momentum.

Spatial biology remains in the very early stages of adoption, and the vast majority of the opportunity is still untapped. The biggest highlight since our last call is, without a question, the launch of our new instrument platform, Aterra.

Aterra represents the most significant product introduction in our history. Among many other benefits, it enables, for the first time, spatial whole transcriptome analysis with single cell sensitivity at scale.

We believe Aterra is poised to redefine how biology is measured and understood. We went into the launch expecting a very strong response from researchers and the broader scientific community, and what we have heard so far has been extraordinary.

Before I talk about what Aterra is and what it does, I want to spend a moment on why we built it. The central challenge of biology is that it's very complex.

It is complex in just about every system, in just about every sample. Biological systems comprise massive numbers of molecules and cells interacting with each other in a bewildering diversity of ways.

Addressing this complexity requires tools that can measure biology at large scale and high resolution. Historically, technologies available to researchers have lacked the necessary scale and resolution.

Furthermore, the toolset of biology has been very fragmented. We have used one set of technologies for analyzing tissues, another for measuring cells, and yet another for working with molecules.

That's not how biology works. It works by specific cells expressing specific molecules in specific locations within tissue.

That has always been the promise of spatial biology. It represents the convergence of the different tools for analyzing biological systems.

It entails measuring molecules, cells, and tissues together, preserving the full context at massive scale and incredibly high resolution. However, until now, despite many advances, spatial biology has been fundamentally constrained by limitations of existing technologies.

Researchers have been forced into frustrating tradeoffs between the critical attributes they care about, across throughput, specificity, sensitivity, scale, performance. To gain in one area, they had to compromise in others.

We built Aterra to address all of these tradeoffs and to unlock the full potential of spatial biology. Aterra is the product of a long-held conviction about where biology needed to go, and years of deliberate work to get there.

It is poised to become the large-scale discovery engine, whether for basic research, AI-driven science, or translational applications. We believe that now spatial will increasingly become the default approach for analyzing biological samples.

It is important to appreciate that Aterra brings together a set of capabilities that until recently were not even thought possible for a single platform. It delivers very high levels of plex, including whole transcriptome, at sensitivity comparable to Flex APEX, the gold standard for single cell analysis.

Enabled by refined probe chemistry, it delivers high specificity and data quality, a non-negotiable for researchers and their collaborators to be able to trust the data. Aterra delivers a step change in throughput, with a single instrument capable of processing up to 800 whole transcriptome 1-centimeter-squared samples per year, or more than 3,000 if using the targeted Aterra Select panels.

This increase in throughput now enables large cohort studies at a pace and scale that were not previously feasible. Equally important is the user experience.

Aterra builds on the proven Xenium workflow, which is already highly robust, widely adopted, and well-regarded by our customers. Aterra runs on standard, off-the-shelf glass slides, which makes the platform inherently scalable across labs and experiments, and enables distributed sample collection.

Using standard slides also allows customers to access archived samples from biobanks and other repositories. In addition, Aterra uses a universal sample preparation approach that works across tissue types, supporting different sample types on the same slide to provide extra flexibility and scalability.

We have also developed powerful computational and software tools so that customers can effectively work with the data. To handle spatial biology at this unprecedented scale, the most computationally intensive part of the workflow, image processing, is performed directly on the instrument, driven by high-performance onboard GPUs and optimized algorithms.

Data is processed efficiently at the source and translated into actionable biology in real time. From there, customers have the flexibility to use their own on-premise infrastructure or leverage our 10x Cloud platform for analysis and collaboration, ensuring that Aterra is not just generating more data, but also making that data easy to use.

We built Aterra to be a long-duration, upgradeable platform, and we intend to continue delivering new capabilities over the years ahead. The roadmap on the platform includes workflow automation designed to enable true sample-in, data-out capability, protein multiomics, in situ sequencing for spatial mutation and variant detection, and continued development of our 10x Cloud platform for multi-sample analysis and collaboration.

As I mentioned, the early customer response has been extraordinary. We had high expectations coming into this launch, and the reception has exceeded even those expectations.

One customer told us that this was the largest technology leap they've seen in their career. Another called Aterra's capabilities the holy grail.

Others, to convey their enthusiasm, have used the kind of language that would not be appropriate for me to repeat in this forum. This enthusiasm is translating directly into demand, as we take pre-orders ahead of initial shipments expected in the second half of 2026.

Even in a challenging capital equipment environment, customer conversations have immediately centered on how to incorporate Aterra into their research programs, not whether to buy it. In many cases, the discussion starts from the assumption that this is a must-have platform and quickly moves to multi-year programs, large cohort studies, and the scale of insight generation that is now within reach.

Aterra fundamentally expands our addressable market across three high-growth segments: in discovery research, initiatives like the Human Cell Atlas can now map entire organs and tissues at unprecedented scale and speed; in translational research, clinical cohorts can be comprehensively characterized to understand patient response patterns, something our collaborators are already validating, as shown by Carl June at AACR; and critically, large AI models represent an entirely new market where Aterra's billion-cell-per-year capability enables creation of virtual models at a new level of scale and sophistication. Each segment unlocks distinct applications while reinforcing our position as the essential platform for spatial biology.

As we have been saying for some time, we believe AI represents a significant and structural tailwind for our business. The potential to transform our understanding of biology is enormous, but progress depends critically on generating vastly more of the right kinds of data.

From the beginning, we have built our platforms precisely for that purpose. Products like Flex APEX and now Aterra exemplify this imperative, and are seeing intense interest from customers building AI models of biology.

The partnerships we have announced over the past year reflect and reinforce these trends, including the Chan Zuckerberg Initiative on the Billion Cells Project, the Arc Institute around the Virtual Cell Challenge, and Xaira Therapeutics to build the largest perturbation dataset ever reported. Just last month, we announced a partnership with Bioptimus, an AI-focused biotech company.

Bioptimus is building Stella, a global initiative aiming to profile up to 100,000 patient tissue specimens across three continents. The goal is to build the data backbone for a world model of biology.

The initiative is starting this effort on our Xenium platform and plans to expand to Aterra over time. Just last week, the Chan Zuckerberg Biohub announced its new $500 million virtual biology initiative.

The goal of the effort is to build AI models that can accurately simulate cells and tissues in silico. This initiative is an incredibly ambitious undertaking that would not have been conceivable even a few years ago.

Now, because of progress in AI and in technologies for measuring biology, there is a path to that vision. There's increasing evidence that scaling laws apply in biology, just like they do in other domains.

What we now need is many orders of magnitude more data, specifically of molecules, cells, and tissues across vast numbers of contexts. This initiative is galvanizing the broader scientific ecosystem with an aligned view that this direction is the next grand challenge for advancing science and medicine, analogous to the Human Genome Project and its role in catalyzing the genomics era.

Taken together, these programs are exactly the type of large, multi-year initiatives our single cell and spatial platforms are built to enable. AI is poised to fundamentally reshape how science is done, and large-scale, high-quality biological data sits at the center of that transformation.

As AI models improve, we expect an exponential increase in the demand for the kind of data our technologies produce. This reinforces our conviction in the importance of what we're building and the vast size of the opportunity ahead.

Building on another theme that has become increasingly prominent in our business, we're seeing growing interest in translational applications across both academia and biopharma. Customers are increasingly focused on identifying human-relevant drug targets, and critically, biomarkers of response for therapies that only work in subsets of patients.

There's now a growing body of evidence supporting the value of single cell and spatial approaches in uncovering these signals. At the same time, our recent product advances have made these technologies far more practical to deploy in translational settings.

In single cell, Flex APEX has been a game changer for large-scale translational studies because of strong performance on FFPE samples, streamlined workflows, and a cost profile that enables large cohorts. In spatial, Xenium has proven to be a robust and powerful platform for extracting meaningful insights from clinical samples.

Aterra is now poised to extend that momentum by enabling much larger studies with significantly more information content per sample. While our technologies are relevant across the drug development continuum, a particularly large opportunity lies in later-stage translational settings, where biomarker strategies are essential to understand patient response and potential toxicity.

This is where our solutions can meaningfully improve the probability of success, and where we are increasingly focused. Over time, these trends also reinforce the potential for single cell and spatial in diagnostics applications.

To realize that potential, the critical next step is the generation of robust clinical evidence on large patient cohorts. As we have discussed previously, we're pursuing two parallel paths: one, we're continuing to support our customers in their studies and will partner with them to enable clinical deployment in the future; and two, we're advancing our own internal efforts to generate clinical evidence for specific, high-value applications.

We're making progress in the two previously announced areas of tissue-based spatial profiling for oncology and blood-based single cell monitoring in autoimmune disease. Stepping back, this quarter has been emblematic of the great work by the whole 10x team.

We launched a game-changing new platform, saw continued sales momentum, and engaged in powerful partnerships with our customers to drive the future of research and healthcare, all while maintaining laser focus on tight execution. This progress continues to reinforce our strategy and puts us in a great position for the opportunities ahead.

With that, I will turn the call over to Adam.

Thanks, Serge. Before walking through the detailed financials, I want to reflect on the last 12 months.

A year ago on our Q1 call, we were operating in a highly uncertain macro environment after drastic changes to government research funding that led us to withdraw our full-year guidance. Since then, and despite persistent challenges in the macro environment, we have consistently executed, improved our operating profile, and have grown our cash balance by over $100 million.

The business is in a meaningfully stronger position today. With that, I will now walk through our first quarter 2026 financial results in more detail.

Unless otherwise noted, all growth rates referenced reflect year-over-year comparisons. We had a solid start to 2026.

Revenue for the first quarter was $150.8 million. Excluding the impact of non-recurring settlement revenue in the prior year period, revenue for the first quarter was up 9% year-over-year.

This reflects continued momentum in the key drivers of our business, as well as some benefit from orders received late in the fourth quarter that shipped in early January. Total consumables revenue was up 13%, with growth in both single cell and spatial.

Single cell consumables revenue was up 6%, supported by double-digit growth in reaction volumes, and Flex continued to be the most popular assay by volume in the quarter. Spatial consumables continued to perform well in the quarter, with revenue up 31%, driven by Xenium consumables.

Total instrument revenue declined 24%, with Chromium instrument revenue down 12% and spatial instrument revenue down 32%. Looking at revenue by geography, excluding the impact of license and royalty revenue in the first quarter of 2025, Americas revenue was up 9%.

EMEA and APAC grew 16% and 5%, respectively. Turning to the rest of the P&L, gross margin was 70% for the first quarter of 2026, as compared to 68% for the prior year period.

The increase was primarily driven by lower warranty costs and lower inventory write-downs, partially offset by a decrease in license and royalty revenue. Total operating expenses decreased 15% in the quarter, primarily driven by lower outside legal expenses and lower personnel costs.

As a reminder, Q1 2025 included a one-time gain on settlement related to patent litigation. Excluding this impact in the prior year period, operating expenses decreased 20%.

We ended the quarter with $540 million in cash, cash equivalents, and marketable securities, up $113 million year-over-year and up $16 million sequentially. Turning to our outlook for the rest of the year, we are maintaining our full-year outlook and expect 2026 revenue to be in the range of $600 million to $625 million.

Excluding upfront revenue related to patent litigation settlements in 2025, this represents 0% to 4% growth over the full year 2025. At the midpoint, our outlook remains consistent with what we provided in February, including double-digit growth in both single cell consumables reactions and spatial consumables revenue.

We built our initial outlook with the Aterra launch in mind, reflecting our expectation that some customers may delay additional purchases of our current spatial products in anticipation of Aterra. Looking at our quarterly cadence, as previously discussed, first quarter revenue represents a higher proportion of our expected full-year revenue, driven in part by orders received late in the fourth quarter of 2025 that shipped in January.

We expect second quarter revenue to step down sequentially from Q1, reflecting lower spatial sales as customers wait for Aterra to start shipping. We anticipate the third quarter to be broadly similar to the second quarter.

In the fourth quarter, we expect Aterra shipments to begin contributing meaningfully to revenue, though initial production capacity for Aterra will be limited in 2026 as we ramp production. Looking ahead, we remain focused on customer success, disciplined execution, and strengthening our financial position, which support continued investment in innovation across our portfolio.

With that, I'll turn the call back to Serge.

Thanks, Adam. Before we open it up for questions, I want to pick up on Adam's earlier remarks and reflect on how much difference a year makes.

While our internal conviction never wavered, the external circumstances a year ago put incredible pressure on the 10x team. Yet, we executed with relentless discipline, met every challenge, and significantly improved our operating profile, all while launching multiple critical products, including Flex APEX to change the world of single cell, and now Aterra, the biggest product introduction in our history.

To the 10x team, I could not be more proud or thankful for how you responded and what you have delivered. Thank you.

Thank you for everything that you do. With that, we will now open it up for questions.

Operator?

Hey, guys. Thank you for taking the question.

Maybe on Aterra, Serge, a lot of color there, appreciate it. Can you just talk about the early conversations in terms of the funnel, what end customer you're seeing the highest reception or interest level from?

Then secondly, also on Aterra, just how we should think about the launch timing, what that impact is on the portfolio. It sounds like you guys are preparing for some customers to delay other spatial purchases in 2Q and 3Q.

Would love just a little more color on how you're thinking about that. Thank you, guys.

Thanks, Patrick. Thanks for the question.

Like I said earlier in my prepared remarks, really, really excited about Aterra. We had really high expectations going into the launch, and it's been incredibly gratifying to see the response from customers, which I would say even probably exceeded our really high expectations.

As far as how that translates into demand and pre-orders, well, that has been really, really encouraging, really strong, and the interest is coming from everywhere. I can't actually point to any particular area of the market or any particular area of our customers that are not expressing interest in this.

Our efforts is on customers who can quickly scale, sort demand for others like service providers, and generally evangelize that platform for the future. That's how we're approaching the market, and the signal, again, has been just so resounding.

It's been really, really, really fun to see it. Now, as far as sort of the second part of your question, obviously, Aterra is a really compelling product.

We've known that for a long time. We've been anticipating and planning for this launch for a long time.

We also very much anticipated there were going to be some changes to ordering dynamics from our customers, and overall, it's all going really very much in accordance with our expectations. Again, we have lots of experience with past product launches and new kind of versions of things and new capabilities, and so we've been prepared.

Of course, there's going to be a fact on customer order patterns. Naturally, customers adjust their thinking about future projects and such in light of Aterra, which puts some pressure on some of our spatial business, like we talked about earlier.

All of that is incorporated into our guide. At the same time while people have started to contemplate for the future with Aterra, right now, our customers are running their experiments because they have established workflows, they have ongoing studies, they have grants, budgets.

They're really used to the workflows. They really like the data.

Remember, these products, our spatial products, are leading in the industry. There is a lot of really great resonance with them among our customers.

Also, realistically, if people are just now deciding whether to go forward with Aterra, they probably won't be getting their instruments until well into 2027, right, most of them. The fact is that existing products, existing spatial products, continue on a robust pace, consistent with our expectations.

Feel really really good about that, and I think all of that information has been incorporated into our guide pretty pretty well.

Hey, good afternoon, everyone. Serge, you called out one of the new TAMs around AI.

I think last quarter, you mentioned that was a relatively low percentage of revenue, but you reference today a number of new initiatives you're involved in, both on the single cell and spatial side. As you've had those discussions and gotten some sense for how customers are going to be building out their plans, what's your sense for what ultimately that TAM could look like, and how it might grow over time?

Thank you.

Matt, that is a really good, a really important question. I would say, a couple of things, just going back to what I said back in prepared remarks, we fundamentally believe and are seeing that AI is a structural tailwind to our business.

If you think about what is happening now with the progress in AI, it's sort of this emergence of increasingly large models that are increasingly powerful in being able to make predictions and inferences, and what they all universally need is large amounts of data across many different kinds of contexts, and specifically the right kinds of data, too, right? For biology, measuring the right biology, and as I said earlier, the right biology is all around molecules, cells, and tissues, and being able to measure them at a large scale and at high quality is imperative.

That's precisely what we have built. In fact, that is the central premise of the mission of the company.

It's a really exciting moment right now for us, the emergence of these kinds of models and the emergence of the AI capabilities, because it just resonates so strongly with our mission and with our strategy from day one of the company. Now as to the question of how that translates into revenue and what is the TAM here, the fact is it's already, when you look at our customers and how AI is used and what it is driving, it's actually really pervasive at this point across our customer segments and across applications.

I don't think at this stage there isn't a large project where AI isn't a big driver of, or if not the biggest driver of that project. When I look at even smaller-scale experiments, in many instances, they are performed with an eye toward feeding the data into AI models and scaling up down the road as well.

When we look at our business, fundamentally, kind of this AI wave and progress is really lifting all of it, all across. I think, and that's for really good fundamental first principles reasons.

We do see it as a structural accelerant across our product line and across our application set, and in many ways, that's by design.

Hi, this is Madeline Mollman on for Doug. Gross margin in the quarter I think came in a little better than we in the Street were expecting.

As we think about the full year, are you anticipating any impact to gross margin from increased inflationary pressures related to memory or petroleum-based plastics? Then thinking about Aterra ramping up as the year goes on, should there be any dilution to margins from the Aterra launch?

Hey, Madeline. Adam here.

Thanks for the question. We're absolutely monitoring costs closely, the couple that you mentioned, but other input costs that have inflationary pressure.

The team's managing that quite well. We're still anticipating margins for the year to be in the mid-60s.

To your question on Aterra specifically, as that launch, we mentioned that we'd start shipping units in the second half, that'll be heavily weighted towards Q4. As has been sort of typical in our portfolio, the instrument margins will come at margins that are less than that of our sort of standard portfolio.

I'd anticipate, as that starts to move in, particularly in Q4, we start to see a little bit of margin pressure, but still feel highly confident we'll end up in that mid-60s for the full year.

Hey, guys. I was just wondering if you could provide, I guess, a bit more detail on spatial instrument revenue this year.

How material is the Q1 to Q2 sequential decline? How many Aterra instruments do you ultimately expect to place in Q4?

Then, I guess, as a follow-up, how many placements do you think production will be able to support in 2027 as you ramp production?

Sure. We are, as I mentioned in the prepared remarks, we're anticipating a step-down from Q1 to Qs 2 and 3.

We'll continue to sell Xenium, but it'll be at a lower rate than what we saw last year, and particularly over the next two quarters. We certainly built that into the guidance.

I think as Serge just mentioned earlier, so that's certainly part of the plan that we have. As it relates to total number of Aterra, we're ramping up production right now.

Anticipate between Qs 3 and 4, we'll sell approximately 40 units, and those will be mostly weighted towards Q4. Again, that's all sort of factored into the guidance range that we've provided.

Great. Thanks for the question.

I just want to talk about the pricing strategy and the positioning there with Aterra versus Xenium and the rest of the spatial portfolio. I understand you're calling it the biggest launch in the history of the company.

You guys did a pretty good job on single cell, but now as you look towards spatial, is this where you kind of look like, all right, we're just going to launch Aterra and then cannibalize or essentially put all the other platforms and applications and customers on the one box, or are you trying to segment the market here because it seems like there's quite a bit of risk of cannibalization versus Xenium?

Luke, thanks for the question. There's a lot of questions embedded in that one question.

I will say that, yes, me saying that this is the biggest, most significant launch in our history has been intentional, and I am very keenly aware of our history and the success we have had with single cell and Chromium. For sure, I do think this is a fundamentally, like I said, a platform to change how we measure biology, and will fundamentally redefine many aspects of science.

I feel very very excited about it, and for really fundamental first principles reasons. As far as kind of where this is headed, like I say, if we look at the kind of the short-term impacts, we have planned for those really, really carefully, and all of those dynamics are incorporated into the guide quite carefully, and so we feel really confident about that.

Then we feel really, really good about kind of as we look into next year and what Aterra kind of opens up. The way that we see it is that Aterra is poised to kind of really break open a lot of markets, a lot of opportunities, a lot of customer samples, and a lot of new customers.

You can think about kind of all the different constraints that have kept existing spatial users from running more, or that have kept other people on the sidelines from entering spatial. We have intentionally built Aterra to really remove all those constraints, to address all of them.

If you think about just kind of from a perspective of technical enablers, just to kind of list a few, like the whole transcriptome capability really addresses the constraints that were there because of customization, which limited applications, limited tissue types. Now people can sort of go forth with no worries that it's going to work across all these different areas.

Throughput was another huge huge constraint, has been in the past, where people have had to pick a few samples at a time from, if they have a clinical trial, a large cohort, could only run a few. Now they can do kind of the full cohort, the full large study they have always wanted to do.

Now also with the off-the-shelf slide capability, now you have access to all these archived samples, all these biobanks that just multiply by a large amount the availability of samples that are available. This is all consistent with the feedback we are now hearing from customers.

It's just fundamental, huge expansion of the TAM and potential for these platforms. In our thinking, as far as the question of pricing has been consistent with that, to enable these kind of very large expansion of the opportunity that we're seeing ahead of us, whether it's basic discovery, translational research, or all of these AI-driven applications.

Like I said earlier, people really like our existing products, Xenium, Visium, really, really powerful products and capabilities. For the foreseeable future, we expect them to be really, really robustly used.

Kind of as we go forth, kind of further out, there's going to be more and more applications that will migrate toward Aterra, more customers and more samples as well. That's going to be an amazingly great thing for us.

Hey, good afternoon. This is Kyle on for Dan.

Thank you for taking my question. I wanted to ask on your OpEx.

OpEx was down quite materially year-over-year and Q-over-Q, and I know you mentioned it a few times or a little bit more detail on the call prepared remarks. Can you just talk about sort of where the jumping-off point is for OpEx going forward, just given SG&A and R&D were down quite a bit year-over-year?

Sure, Kyle. I think as you're aware, we've really been trying to manage our costs in a super-disciplined way.

As you noted, we are on a good trajectory here. Keep in mind last year had the one-time gain on settlement.

Excluding that, OpEx is down 20% year-on-year. We're still anticipating, and giving ourselves some flexibility as it relates to continuing to invest in the business, and anticipate that OpEx year-on-year will be roughly flat.

Hey, guys. Thanks for the questions.

First, could you talk about the spatial instruments in the quarter? It seemed a little bit weaker than what we had, and I thought I heard you had a benefit in January or something like that.

Just talk about how we should think about that line going forward, especially with potential market freezing and things like that. Then secondly, Adam, on the guidance for 2Q, are you talking about a mid-single-digit decline quarter-over-quarter, or more like a low single digit?

Thanks.

Sure. Let me take the second part of your question first.

Thinking about a a low single-digit decline QoQ is really the way that we're thinking about Q2, and then fairly similar is what we would anticipate for Q3, then with the balance, getting us there on the guide in Q4. I think really what the the way to think about spatial instruments for for Q1, is really there was fairly significant anticipation regarding what we were going to announce in April.

As you may recall, we did, a campaign at AGBT, and certainly word started to spread. As you can also imagine, we were working with some of the early access customers, under NDA just to make sure we were going sort of down the right track, but they're customers that would have been adding either a new Xenium or to their Xenium fleet, that ultimately, have decided in Q1, we'll decide to wait for Aterra.

The second thing I would just note, we don't see the macro backdrop being any, meaningfully different for CapEx, than where it's been. I'd be remiss if I didn't say it's still fairly constrained.

The predominant, rationale around sort of Q1 and where we came in on spatial instruments is really just around the anticipation of the product launch. Then I would just, echo what Serge just said, earlier in the call.

The enthusiasm around Aterra is extremely high. What we're finding is even in a constrained capital environment, customers are finding CapEx.

We've got, orders, and folks are this is the type of launch where folks go and find money. I'd also just add that the timing, we were thoughtful and tried to work, around the timing of our launch just to ensure that it's built in to budgets, whether that's, for for customers that, have a year-end, sort of from fall, customers that need to get this into grant submissions, and then certainly we want to make sure that our customers are well-positioned as they start to think here as we move through the year, as they start to think about their 2027 budgets, we wanted to make sure that they were earmarking funds for Aterra.

Hi, this is Anandhika on for Mike. Thank you for taking our question.

On Aterra manufacturing capacity, you noted the initial demand would be limited in 20, production would be limited in 2026. What are the primary bottlenecks to scaling the output from here, and how quickly do you think you can ramp toward meeting that level of demand you're seeing?

Thank you.

The question is around just scaling up the production of instruments. The fact is, this is a really sophisticated instrument, as you can imagine, and we want to be very smart and measured around how we build it and how we test it.

We are very, very careful with these kinds of launches, and like Adam said, we feel good about what we can do in 2026, and we're going to keep ramping production as we exit the year into the next year.

Hey, guys. This is Thomas on for Subbu.

Thanks for taking our question. A lot of focus on spatial, maybe one on single cell here.

Can you just share any color on what pricing headwind you may have experienced, if any, in the quarter from APEX, and then what you're anticipating for the second quarter? Thank you.

I would say the general trend has been similar to what we saw in Q4 as far as sort of the mix and the pricing dynamics around Flex APEX. I would point out that it's still very early here in terms of the launch.

We only have a partial Q4 for the launch and then the Q1, just a bit over one quarter. Far, very happy with the progress, really, really great feedback from customers, and really large scaling up of volumes of the product.

Overall, feel good about single cell and kind of how it's proceeding. Again, still early time in the launch, but all in all, really, really strong trajectory.

Hi, this is Sam Martin on for Justin Bowers and Deutsche Bank. I just want to ask a couple of quick questions around the Visium platform.

I think last quarter, you mentioned Xenium had become the spatial platform of choice, and now with the launch of Aterra, another launch and, I guess, upgrade really within spatial realm. I just want to kind of get your updated thoughts on, A, customer demand for Visium year-to-date with the launch of Visium HD really just over 2 years ago, and then your thoughts on really the future of the Visium platform and whether or not you still think it has a space in your portfolio.

Thank you.

Good question. As I've been saying now for the past several quarters, there's clearly a trend in the market toward kind of imaging-based readout, and in particular toward Xenium.

It's been huge resonance within sort of spatial circles of the Xenium platform, and with the launch of Aterra, we obviously kind of anticipate that trend to get reinforced going forward. That said, certainly Visium has its place as well.

There's many customers who absolutely love the platform and running it very robustly, very consistently across very large numbers of samples. We expect that it's going to have its place.

It's going to continue to have its place. It's a great assay for many applications and well-regarded by many of our customers.

Of course, we'll continue to support it, and we'll ensure customer success.

Hi, Serge. Thanks for taking my questions here.

I don't know if this was already covered, but just trying to think about the Aterra launch, does it have any impact on the decline or maybe an acceleration in decline in the Visium usage? If you could talk about if there is anything else that you can do to sort of mitigate that or address that before the launch.

Wondering if there is a desire from customers to pull the launch forward a bit to address their high level of interest in the instrument here.

A few different kind of questions here. I think as far as Visium is concerned, there's going to be some effect, right?

It's a spatial platform, and I kind of said earlier, there has been a trend of converting toward Xenium, and I think that sort of trend is going to continue with arrival of Aterra. There is definitely a place for Visium.

Customers really like the data. They're going to keep running it.

While the launch of Aterra is going to put pressure on both spatial platforms, it's going to put pressure on Visium too, that is all incorporated into our guide. I think we have a lot of experience with different product launches, and one thing that's important to appreciate that I think sometimes people kind of underestimate is the amount of kind of built-in stickiness that exists with products, right?

People have ongoing projects, they've got their workflows, they have the data that they're used to, that they really like. That's what we're seeing in the field, kind of robust, continued use of these products and these capabilities.

As far as kind of Aterra and the demand for it, certainly people are very, very interested, and the team is working really, really hard to deliver the instrument to the world as fast as possible. We're being very deliberate, very rigorous, and really excited to get it out there.

Trust me, working as hard as they can to get it done quickly.

Hi, guys. This is Priya on for Tycho.

Thanks for taking our question here today. Just wanted to hit on the clinical adoption and scaling there.

You mentioned that Aterra can analyze up to 3,000 core biopsies per year. I guess, what is the specific feedback from biopharma partners regarding the platform's readiness for integration into large-scale Phase 2 and Phase 3 clinical trials?

Thank you.

Good question. When I talked about the number of samples that the platform can process, I specifically referred to 1-centimeter-squared areas, and in fact, it's possible to put more samples onto if you need to, like if you're doing tissue microarrays and things like that.

There's additional scaling that depending on your format of your biopsies and what you're interested in measuring, that's possible there. The platform does enable really, really massive scaling, and the conversations with biopharma have been very encouraging, as both APEX and Aterra have been very resonant, both by virtue of opening up translational applications, the sample types, and the scaling, all are very enabling.

Yes, we do feel like this is going to be a big driver, especially as we kind of think about next year and beyond.

This is Paul on for Dan. Thanks for the questions.

There's been some messaging of Aterra as providing sensitivity at the level of single cell sequencing. Obviously, there will still be lots of use cases for single cell, but on the margin, do you expect any Flex volumes over time to potentially move to Aterra?

Just kind of on that same idea, you mentioned in your prepared remarks that the double-digit Chromium reaction volume growth was driven by Flex APEX. Just wondering if reaction volume is growing at what kind of level excluding Flex

APEX. As far as the sort of single cell is relative to Aterra kind of question, it's a reasonable question to ask, but not something that we're expecting to be an issue in the near term, nor is it anything that we're hearing from customers at this stage.

If you think about just kind of configuration of the products and the capabilities, what you get from them, the pricing, the workflows, everything is sufficiently different. We do expect that in the long run, there's going to be really massive experiments with single cell that will be possible with Aterra that have not been previously possible before, but we see that as the future, and we're certainly not seeing any effect on the single cell business at this stage or in the near term.

In terms of reaction growth, yeah, we're seeing it across multiples of our applications. Also, since this was the last question, just before we hand off, wanted to kind of finish with a couple closing thoughts, and just personally how excited am I about the setup we have for 2027 and beyond.

If you look at it through the product lens, 2027 will be the first full year of Aterra, really the year of Aterra. Then if you look at Flex APEX, by that point it will gain widespread adoption, and pricing on the single cell side will stabilize, and so the growth in volume will naturally then translate into growth in revenue.

Then when you look at it through the market lens, we expect this exponential increase in AI-driven research and all the AI-influenced science that's going to be happening out there, and then the scaling of translational cohorts is really set to kick in as we look to next year. Then from the macro perspective, at the very least, we will have good compares, and to the extent that the conditions improve, we should see an acceleration to all the other trends.