10x Genomics Q2 2026 earnings report shows production of 96,000 ounces, revised AISC guidance of $2,000-$2,100, and strong free cash flow of $94 million.
10x Genomics, Inc. Class A Common Stock reported Q2 2026 production of 96,000 ounces of gold equivalent, aligning with expectations but marking a significant decline from prior quarters. The company’s performance reflects ongoing pressures from lower grades and higher operational costs, yet management anticipates a rebound in production for the second half of the year, leading to an upward revision in full-year guidance.
Key Takeaways
- Production reached 96,000 ounces in Q2 2026, a decrease compared to prior quarters but expected to improve in H2.
- All-in sustaining costs (AISC) were elevated at $2,459 per ounce, largely due to lower production, with a revised full-year guidance of $2,000 to $2,100.
- Free cash flow totaled $94 million, reflecting strong cash generation despite elevated costs and profit-sharing payments.
- Safety performance remained strong, with no lost time injuries reported for the fifth consecutive quarter.
- Production guidance for Q3 is projected at 115,000 ounces, with expectations for further improvement in Q4.
Production Challenges and Outlook
Production in Q2 2026 was primarily impacted by mining lower-grade ore, resulting in a total of 96,000 ounces of gold equivalent. This figure is expected to represent the lowest production quarter of the year, as the company anticipates a return to higher-grade areas beginning in Q3 and Q4. In July alone, the company generated over 43,000 ounces, indicating a positive trend moving forward.
| Metric | Q2 2026 | YoY | QoQ |
|---|---|---|---|
| Production (oz) | 96,000 | - | - |
| AISC ($/oz) | $2,459 | - | - |
| Free Cash Flow ($M) | $94 | - | - |
Cost Pressures and AISC Revisions
10x Genomics faced elevated AISC of $2,459 per ounce in Q2 2026, influenced by multiple factors. The company highlighted increased plant reagent costs and a stronger Mexican peso as significant contributors to the rising costs. In response, management has revised its full-year AISC guidance to a range between $2,000 and $2,100 per ounce, up from the previous guidance of $1,750 to $1,850. This adjustment is reflective of both internal operational pressures and external market conditions, particularly the currency exchange rate, where the peso is now averaging 17.5 to 1 against the dollar.
“We expect production and costs to improve through the second half of the year,” said Andrew Snowden, President and CEO. “With the highest cash outflow quarters now behind us, we are well-positioned for strong free cash flow.”
Capital Returns and Financial Flexibility
During Q2, 10x Genomics generated a free cash flow of $94 million, which included $39 million in profit-sharing payments. The company has returned approximately $55 million to shareholders through dividends and share buybacks during the quarter. Management indicated a strong liquidity position, exiting the quarter with no debt and over $500 million in available liquidity, positioning the company well for ongoing capital returns and potential growth investments.
Frequently Asked Questions
Did 10x Genomics, Inc. Class A Common Stock beat earnings estimates in Q2 2026?
Yes, the company reported production of 96,000 ounces of gold equivalent, meeting guidance but reflecting a decrease from prior periods. However, free cash flow of $94 million was robust despite cost pressures.
What is the updated production guidance for 10x Genomics for the second half of 2026?
Management has set a production target of approximately 115,000 ounces for Q3, with expectations for further increases in Q4 as the company returns to higher-grade mining areas.
How did the strengthening Mexican peso affect 10x Genomics' costs in Q2 2026?
The stronger peso has contributed approximately $70 per ounce to AISC, as about 50% of operating costs are peso-denominated. This has necessitated a revision in cost guidance for the year.
What are the main drivers behind the revised AISC guidance for 2026?
The revision to AISC guidance reflects increased costs related to higher plant reagent consumption, currency fluctuations with the peso, and anticipated higher sustaining capital expenditures.
In summary, while Q2 2026 presented challenges for 10x Genomics with lower production and elevated costs, the company’s outlook suggests a recovery in production and an ability to generate strong free cash flow moving forward. Investors will be keenly observing the upcoming quarters as higher grades are expected to positively influence operational performance.
This analysis is based on public earnings call materials and is not investment advice.
