10x Genomics, Inc. (TXG) Earnings Call Transcript & Summary

Hello, everyone. Thank you for joining us, and welcome to the 10x Genomics Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Cassie Corneau, Head of Investor Relations and Strategic Finance. Please go ahead.

Thank you, and good afternoon, everyone. Earlier today, 10x Genomics released financial results for the second quarter ended June 30, 2026. If you have not received this news release or would like to be added to the company's distribution list, please send an e-mail to investors@10xgenomics.com. 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. I will start with a brief overview of our second quarter performance, then provide an update on Atera and finally, discuss several broader trends that are reshaping biological research and creating new opportunities for our business. Revenue for the second quarter was $151 million. During the quarter, we recognized $1.6 million of license and royalty revenue in connection with our settlement with Takara. Excluding nonrecurring settlement revenue in both this quarter and the prior year period, Q2 revenue was $149 million and grew 3% year-over-year. The story of the quarter was the extraordinary customer response to Atera. We are highly encouraged by the engagement across the research ecosystem and the very strong early order flow. At the same time, our on-market products showed sustained strength. We drove robust growth in Chromium consumable reaction volumes, reflecting expanding usage across a broad range of applications. In Spatial, Xenium utilization continued to perform exceptionally well, reinforcing its position as the leading platform for spatial analysis today. Our launch of Atera is still, by far, the biggest highlight of the year. On our last call, I discussed Atera's core capabilities, many of which were not thought possible within a single platform. It delivers step-change advances across a range of features including throughput, plex and sensitivity. Atera enables spatial whole transcriptome profiling, with single cell sensitivity, at scale. The promise of Spatial has always been that it represents the convergence of molecular, cell and tissue biology. Atera is poised to deliver on that promise to provide researchers with a fundamentally more complete view of biological systems and answers to many questions that were previously out of reach. You may remember that we said initial customer reception exceeded our expectations, which were already very high heading into the launch. Since then, customer enthusiasm has only gotten stronger. This has translated into a strikingly large number of orders in a very short amount of time. The momentum we are seeing is remarkable for a platform that was completely unknown to our customers only a few months ago. We believe customers' enthusiasm should only increase as they learn more about the system and see what it is able to deliver in their hands. Similarly, we are seeing strong demand for Catalyst Research Services, a program for customers to submit their own samples to be run on Atera in our lab. We expect sample processing to begin alongside Atera's commercial availability. Catalyst Research Services is designed to support a range of customer needs, from generating initial pilot datasets, to providing flexible and ongoing access for routine research, to enabling researchers who do not yet have access to an Atera instrument. The strong demand for the service is another encouraging leading indicator for the future of the platform and the breadth of its impact. Our vision for Atera was to build the cornerstone platform that enables scientists to interrogate a full spectrum of research questions with the versatility and scale needed to resolve the complexity of biology. It is gratifying to see that vision start to come to life as customers describe how they plan to use Atera. We're seeing engagement from universities, academic medical centers and biopharma companies pursuing research across nearly every major disease area: from oncology across dozens of tumor types to neurodegeneration, autoimmune and inflammatory disease, cardiometabolic conditions, kidney and transplant biology. The list goes on. That diversity is also evident in the specific research questions being asked. Customers are interested in applying the platform for foundational cell and tissue atlassing, mechanistic studies of how disease actually develops, monitoring response to novel immunotherapies and cell therapies, and for early biomarker and translation work. Just as importantly, customers are planning to integrate Atera into the routine fabric of their research. Researchers within academic medical centers, for instance, are planning to deploy it across the entirety of their translational oncology programs. We're hearing similar conviction from industry, where senior R&D leaders at top biopharmaceutical companies are investing in Atera with the belief that spatial biology will fundamentally change how they approach drug discovery and development. We built Atera as a long-duration, upgradeable platform with capabilities that will continue to expand over time. Atera's extensive roadmap includes workflow automation, base-by-base spatial sequencing and the addition of protein multiomics. With that in mind, during the quarter, we took an important step to enhance our proteomics capabilities with the acquisition of Proteintech Genomics. Proteintech Genomics brings deep expertise and differentiated technologies for measuring proteins in multiomic context. We believe integrating rich proteomic information alongside spatial transcriptomics will further expand the biological questions Atera can address and continue to strengthen the platform. The intensity of the early interest and the spectrum of customer applications are reinforcing our conviction that Atera is poised to transform how we measure and understand biology. When you look back at the history of our industry, every now and again, a new platform comes along that reshapes markets and changes how science is done. This is a very rare, but profoundly exciting occurrence. We built Atera with exactly that ambition and the early signs suggest it is on that trajectory. Turning to Single Cell. I want to highlight a few major trends driving the business. First, our customers are adopting our platforms for larger, more ambitious studies. Over the past several quarters, products like Flex Apex have enabled a new generation of this work, particularly in biopharma and translational research. One way we are supporting this shift is through our recently introduced whole blood workflows that stabilize samples at the point of collection, enabling longitudinal research, distributed sample acquisition and access to archived material. Second, there is a growing interest in additional modalities and multiomics, an area that has always been a strength of our portfolio and a focus of our investments. Last quarter was a particularly great example. We launched a new GEM-X version of our Multiome product, significantly improving researchers' ability to measure epigenetics and gene expression from the same cell. This unlocks new dimensions of biological context and has been met with positive early customer response. Furthermore, our Proteintech Genomics acquisition expands and complements our existing multiomics capabilities. It provides us with the largest single cell protein panels on the market and allows us to offer more complete solutions for customers to measure gene expression and proteins on the same cell. Finally, a significant trend in Single Cell has been an increase in large-scale perturbation experiments to map biological mechanisms and resolve causality. We are finding that Flex Apex is becoming the standard assay for these experiments because of its scalability, robustness and sensitivity. While we see significant Flex Apex adoption across all customer segments, the uptake of Apex in biopharma has been particularly strong, driven by the application of perturbation screening to target identification. The value of these studies is also increasing because of the progress in AI, which helps derive mechanistic insights from the large amounts of data generated by these experiments. As we have discussed before, we believe AI represents a significant and structural tailwind for our business. AI has enormous potential to transform biology and human health but realizing that potential depends on generating vastly more of the right kinds of data. The key bottleneck for AI-driven progress in biology is the same bottleneck we identified when we started the company. Biology is incredibly complex, we understand only a tiny fraction of it, and solving that complexity requires measuring biological systems at massive scale and high resolution. We built single cell and spatial technologies for precisely that purpose, which is why they are now being deployed by so many of our customers to train AI models. In fact, AI, as an influencer of demand, is now becoming pervasive across our customer base. Today, most significant biological data generation efforts are conceived, at least in part, with the goal of training AI models. On the academic side, there are multiple well-known pioneering efforts, such as those led by CZI and the Arc Institute, dedicated to building virtual biology models. But we are also seeing a wider shift, where more of basic scientific research entails training AI models. This shift is driven bottom-up by decisions of individual scientists as well as top-down by philanthropic and government funding priorities, such as those outlined in recent proposals from the White House. A similar shift is also starting to happen in biopharma with a rapid growth in AI-focused investments. Initially, much of the AI work in drug development has focused on the chemistry side of the process, on creating molecular interventions once a target is known. Going forward, we expect increasing investments to be made in modeling biology at the cell and tissue level to unlock new targets and to predict drug response in patients. We believe this is where the biggest bottlenecks are and where there are the greatest opportunities to transform drug development. This work is also precisely what our tools enable and why we anticipate a very large opportunity for our technologies over time. Most pharma companies now have strategic mandates to leverage AI to speed up drug development and increase the probability of success. At the same time, there is a rapidly growing number of biotech companies that seek to transform drug development using AI. More and more of them are focused on building sophisticated virtual models of human biology. The vast majority of the companies building such models are using 10x single cell and spatial technologies. Customers overwhelmingly choose our products because they deliver the highest data quality, the largest scale, the widest biological context and the most powerful multiomics capabilities. It has become increasingly clear in the field that all of these considerations are critical for building high-quality generalizable and useful models. It should be noted that building better models is only a part of the AI story. For years, one of the biggest barriers to broader adoption of single cell and spatial biology has been the bioinformatics expertise required to analyze increasingly rich datasets. Advances in agentic AI are beginning to remove that bottleneck. Researchers who previously required dedicated computational experts are starting to analyze complex datasets through natural language interactions with AI agents. We believe that will make single cell and spatial analysis accessible to a much broader community of scientists while increasing the value of the underlying data. Together, these trends reinforce our conviction that single cell and spatial biology are foundational to the future of basic science and drug discovery research. AI is increasing both the demand for high-quality biological data and the ability of researchers to extract insights from that data. We believe those 2 forces will reinforce one another over the coming years. Now, as we have discussed previously, we envision a significant opportunity to extend our technologies into clinical diagnostics in the future. Realizing that opportunity requires generating robust clinical evidence on large patient cohorts. We are continuing to make progress on our internal efforts to generate such evidence in oncology and in autoimmunity. This quarter we announced new partnerships with the Cleveland Clinic and with Lausanne University Hospital to identify biomarkers of response to therapy across multiple oncology indications. Taken together, this quarter demonstrates the strength of our strategy and continued execution across our business. We advanced a game-changing new platform, sustained strong momentum in our core consumables business and deepened our engagement with customers through high-impact partnerships. We continue to build a stronger company operationally and financially, giving us the flexibility to invest for the long term. Our technologies are at the nexus of some of the most powerful trends transforming biology and medicine. The upcoming years are going to be profoundly exciting, and we are uniquely well positioned for the opportunity ahead. With that, I will turn the call over to Adam.

Thanks, Serge. Unless otherwise noted, all growth rates referenced reflect year-over-year comparisons. Revenue for the second quarter was $151 million. As Serge mentioned, when excluding the $1.6 million allocated to license and royalty revenue, our second quarter revenue was $149.4 million. This represents 3% growth over Q2 2025, when excluding the nonrecurring settlement revenue in both periods. These results reflect continued momentum in the key drivers of our business. Total consumables revenue was up 7%, with growth in both Single Cell and Spatial. Single Cell consumables revenue grew 3%, supported by double-digit growth in reaction volumes given accelerating momentum for Flex Apex. Spatial consumables continued to perform well in the quarter, with revenue up 16%. We saw sequential consumables revenue growth for both Xenium and Visium, though Xenium continues to be the primary driver of Spatial consumables growth. Total instrument revenue declined 47%, with Chromium instrument revenue down 46% and Spatial instrument revenue down 48%, both primarily driven by a lower number of units sold. As anticipated, the decline in Spatial instruments reflects customers moderating purchases of our current Spatial products in anticipation of Atera. Looking at revenue by geography. Excluding the impact of nonrecurring license and royalty revenue in both periods, Americas revenue was up 6%. EMEA revenue grew 15%. APAC revenue was down 19%. As a reminder, APAC benefited from approximately $4 million of temporary pull forward in purchasing activity in China in the prior-year period as customers accelerated orders ahead of potential tariff changes. Turning to the rest of the P&L. Gross margin increased to 74% from 72% the prior year. The increase in gross margin was primarily driven by lower manufacturing costs, which included $2.6 million of tariff refunds as well as lower inventory write-downs, partially offset by a decrease in nonrecurring license and royalty revenue. Excluding the impact of nonrecurring settlement revenue in both periods, gross margins increased to 74% from 67% the prior year. Total operating expenses were $132.1 million for the quarter, as compared to $95 million in the prior year period. The second quarters of 2026 and 2025 included gains on settlements related to patent litigation of $3.4 million and $40.7 million, respectively. Excluding these gains in both periods, operating expenses were approximately flat year-over-year. We ended the quarter with $552 million in cash, cash equivalents and marketable securities, up $105 million year-over-year and up $12 million sequentially. Turning to our outlook for the rest of the year. We are raising our full year outlook and now expect 2026 revenue to be in the range of $610 million to $630 million. Excluding nonrecurring revenue related to patent litigation settlements in both 2026 and 2025, this represents 2% to 5% growth over the full year 2025. The increase to our outlook reflects our performance in the first half, together with the benefit of the $1.6 million of settlement revenue recognized during the quarter. As Serge mentioned, order volume for Atera has been very strong. We previously communicated that we expect to sell approximately 40 Atera instruments this year, weighted mostly toward the fourth quarter. As of the end of the second quarter, booked orders already greatly exceeded that full year number. That said, our shipment outlook of approximately 40 units for the year remains unchanged, as we continue ramping production. Looking at our quarterly cadence, Atera demand is driving the transition dynamics we expected, as customers are moderating purchases of existing Spatial products in anticipation of Atera. We expect this Spatial transition dynamic to continue into the third quarter, resulting in a modest sequential step down for our total revenue from Q2. We then expect a significant step-up in the fourth quarter as Atera shipments ramp and begin to contribute more meaningfully to revenue. Atera alone accounts for the large majority of the Q4 sequential increase implied by the midpoint of our full year guidance, with normal seasonal Q4 strength across the rest of the portfolio closing the remainder of the difference. As we look to the second half, our priorities are unchanged: delivering for our customers, executing with discipline and strengthening our operating profile. That foundation allows us to keep investing across the portfolio and the early enthusiasm we're seeing for Atera reinforces our conviction in that strategy. With that, I will turn the call back to Serge.

Thanks, Adam. Before we open it up for questions, I want to thank the entire 10x team. This has been another good quarter of progress across the business, and none of it is ever an accident. The value we create in the business and the progress we make toward our mission is entirely a function of the hard work and commitment to excellence you demonstrate every day. I'm incredibly proud of what we have accomplished, and even more excited about what we're building for the future. Thank you to everyone at 10x for making the impossible possible. With that, we will now open it up for questions. Operator?

[Operator Instructions] Your first question is from the line of Kyle Mikson from Canaccord.

Congrats on the quarter. A multipart question. First, on instruments. So on Atera, great to hear all the demand and the interest and all that, but maybe like why remain conservative with that expectation for the second half there? Is that primarily just the kind of the manufacturing capacity constraints kind of in the near term? Or maybe just dive into that? And then thinking about a run rate for quarterly placements, is whatever you do in 4Q, is that a good way to think about kind of the jumping off point into 2027, like Q1 and so forth? And secondly, just quickly, Serge, on like AI. I'm getting a lot of questions on kind of like your differentiation. You obviously have a lot of strong push there. But what really sets you apart, 10x apart, to directly benefit from that? And can you talk about any tangible revenue that you've kind of recognized so far?

Thanks, Kyle. So just like to your first question on Atera. So the -- like as we talked about in our prepared remarks, the demand has been extraordinary, and that's not the constraint here, right? The constraint is actually shipping the manufacturing capacity to ship the units in the second half of the year. And we continue to expect to be able to ship 40, which is what we said last -- in the last call, and that still continues to be the case going forward.

Your next question is from the line of Luke Sergott from Barclays.

Just on the 3Q updated guide, you previously thought 3Q would be roughly flat, now that you're talking about a little step down here. Just wanted to know what got pushed out or what changed there? And then secondly, on the -- as you think about the Atera launch and also with -- in conjunction with the Apex Flex, I mean, you got a lot of things going on. So talk about the drivers here outside of Atera instrumentation launch for 4Q. You talked about half of that coming from the Atera launch, but is that going to come from the Apex Flex on single cell Chromium?

Yes. So let me take the first sort of pieces of that, Luke. So I wouldn't say that things have changed. In fact, I'd just remind you that the Q3 that we're talking about here is consistent with what we said in our Q1 call. So we've always known that Q3 from a transition dynamic perspective in Spatial would be the peak transition dynamics. And that's exactly what we're seeing. And part of it is a function of the enthusiasm that we've seen around Atera. So we had originally said back when we gave the original guide, Q1 and then it would be a step down, and then Q2 and Q3 would look similar from a dollars perspective. Now what we're saying is Q3 will look the same kind of as what we've articulated back on the Q1 call. And so we're still anticipating a modest couple of million dollar step down from Q2 to Q3. And that really is just a function of what's happening both on Spatial instruments, but also some -- a bit of Spatial consumables as people are ramping up and getting prepared to their Ateras. One thing I would just clarify in your question as it relates to Q4, if you think about the 40 units that we've committed to get out the door into the hands of customers in RevRec here, and we've talked about sort of where list pricing is, Atera instruments alone gets you most of the way, almost entirely of the way from Q3 to Q4, and that doesn't factor in Atera consumables. So if you sprinkle in a little bit of seasonal, what we would normally have anticipated, and I'm not talking about some expectation of a big budget flush. I'm just saying if you think about our normal Q3, Q4 industry dynamics, that coupled with but most of it coming from the Atera launch with a little bit of that step-up from Q3 to Q4, yes, I think you'll find it's a fairly reasonable step-up from Q3 to Q4.

Your next question is from the line of Tycho Peterson from Jefferies.

Serge, what are you willing to say on manufacturing capacity for next year for Atera? I mean, that's a pretty common question. Obviously, 40 systems this year, but how quickly can you scale up manufacturing, maybe just the next 2 to 3 years? And then how are you thinking about kind of initial pull-through from some of the early adopters? How quickly can they get up to full utilization? And then I've got a follow-up.

Yes. Thanks, Tycho. So look, the team is working really hard to get to the official launch of the platform to start shipping. And like we said, yes, we have 40 that we're planning for this quarter, for Q4 -- for the second half of the year. And as we are kind of moving into next year, we certainly expect to keep kind of building out our capacity. We're building Ateras on the backs of a lot of investments we made over the years into the operational infrastructure and supply chain expertise. And so all of that will be brought to bear as we scale up and move into next year and beyond. So we feel really good about being able to scale up capacity over time to meet the demand as appropriate. So as far as pull-through is concerned, we feel really good about the interest in the platform. It's way too early to talk about precise estimates before we even get instruments out there and people actually start running them. That said, of course, we are focused on kind of engaging customers that are, in particular, eager to use the platform and particularly eager to ramp up sooner rather than later. So we feel good about the potential of utilization here. Just for kind of calibration, max utilization of Atera is somewhere between -- depending on the kinds of assays you run between $1.5 million and $2 million to $3 million or so, depending on the assays, is about 2x that of Xenium. So there's plenty of room for people to make use of these instruments. Again, a little too early to give precise numbers, but feeling quite optimistic about the trajectory at this stage.

Okay. And then a follow-up on Single Cell. I mean, just thinking, next year, the Street's got 4% growth in Chromium consumables. I mean, pricing stabilized. These are big Perturb-seq studies getting underway. Why couldn't it be double digits? Can you just talk a little bit about how you're thinking about the next couple of years for Chromium?

Yes. I mean, look, I think a little early to talk about the next couple of years. We're in the middle of a fairly material transition year right now because of the Flex Apex dynamic. Apex has been -- has had a good momentum so far since launch towards the end of Q4 last year and has been having a really nice growth so far this year. Based on the funnel, we expect the Apex to be even higher percentage of reactions as we go into second half. And kind of our expectation as we proceed through this year is by the end of the year, the large majority of people who would convert to Flex from our kind of existing other products will have converted, which should put us in a good spot for subsequent quarters and years going forward.

Your next question comes from the line of Dan Arias from Stifel.

Serge, maybe a bit of a technical question on Atera. When you guys do your assessments of the platform's sensitivity, what portion of the time are you finding that sensitivity is higher than Xenium? I mean, I'm not trying to geek out here, but I am curious about just the degree to which potential customers are able to appreciate an advantage on performance just in order to get them over the hump on a purchase decision. It seems like it varies depending on where in the transcriptome you look. So I guess I'm just curious about what the overall view would be when you compare the 2 platforms and then how that translates to sales messaging?

Yes. I mean, there's a lot of nuance, obviously, to these kind of comparisons, but the high-level picture is unambiguously like we sort of no real caveats like the Atera sensitivity is substantially higher than Xenium's. Now it's important to be comparing apples-to-apples when it comes to various assays. And certainly, for like the very targeted panels, if you care about specific genes, you can really boost your sensitivity on Xenium. And so -- and you can do that on Atera as well. If you're comparing kind of wider use assays, for example, whole transcriptome on Atera, you're able to get to single cell sensitivity, which with large plex kinds of panels on Xenium is you can't really do that. So very, very high sensitivity. And you remember, with Atera, you can also augment it with additional custom content if you need to boost any genes further. And overall, yes, we feel really, really strong about this platform. There's going to be some comparisons, maybe this is kind of early days of the platform. We specifically released some early datasets out there to give people a flavor of what the platform is able to accomplish. There is still work that's going on in R&D to keep improving the specs of the platform. By and large, even based on the datasets that we have released so far, the feedback from the community has been overwhelmingly positive. It bodes really well for the trajectory of the platform.

Your next question comes from the line of Subbu Nambi from Guggenheim Securities.

This is Thomas on for Subbu. Given there's normally hiccups with the first iteration of any product launch, what feedback are you hearing from customers who might still be on the sidelines? And then how are you thinking about the road map for the rest of this year after the first placements to make this transition smooth for those customers?

Yes. Look, obviously, like I said earlier, a lot of demand for the platform. So this has been really, really great to see from the reactions from customers. Lots of interest, lots of eagerness, very few conversations these days that when I engage with a customer, someone is not trying to lobby to get units earlier rather than later. So that -- from that perspective, from a demand perspective, not really an issue. In terms of product performance, once it's out there in the field, important something -- a really important question, something we take incredibly seriously. Obviously, we have had a lot of experience with product development and with delivering game-changing platforms that work really well to the field. And Atera, in particular, something that we have been working on for a very long time. I talked about that on the last call. We've been talking about that since then. And we do a lot of testing, a lot of buttoning up of all the different elements before we ship our products and particularly true of Atera. And the team has been making tremendous progress. So we feel really good about where things are headed about the product and what -- based on what we're seeing internally as well. And so in many ways, we expect it to be very similar to our previous successful launches. Again, it's not better given all the experience that we have, all the work that has gone in and all the investment that has gone into Atera specifically. And of course, on the road map, we've talked about many elements of that, making big investments going forward as well. There's going to be a lot more coming on the software side, more content, more panels. There's going to be additional capabilities around automation, proteomics, multiomics, base-by-base sequencing. So yes, there is a lot to be said for the platform right out of the gate as we're seeing by the reactions, and there's going to be a lot more to be said over the coming quarters and years as we deliver more capabilities.

Your next question comes from the line of Michael Ryskin from Bank of America.

I want to go back to Chromium and the single cell platform. Chromium consumables are kind of flat effectively quarter-over-quarter just sequentially through the year, and instruments were a little bit on the lighter side. I understand a lot of focus on Spatial and maybe Xenium. But just wanted to dig into more into what you're seeing there. You've got things like the 1 Billion Cell Atlas ongoing. You've got things like Perturb-seq ongoing. And you've been talking about AI-driven drug discovery, which I think should tap to single cell a lot. Just sort of why aren't you seeing a little bit stronger numbers in Chromium? Is it all really tied to Flex? Or is there anything else going on? And maybe if you could just quantify what you're seeing, give us any tangible metrics that we could sort of latch onto for AI-driven demand, just so we could sort of figure out how big it is for you right now in 2Q?

Yes, Mike, thanks for the question. So yes, I mean, on Single Cell, I would say the first order dynamic by far is that sort of transition that I talked about earlier, the rise of Flex Apex and transition of some of the other products to that assay. Again, it's been having -- it's had a really nice pickup, a really nice momentum. We expect that to continue. And as a result of that, yes, the volume growth has been quite consistent and very robust and very encouraging. And a lot of that growth is, in fact, driven -- being driven by kind of emergence of AI applications and also more larger scale experiments that involve larger cohorts and kind of distributed sample collection that Flex is particularly great for. That also has a bit of an influence on instruments in a sense that because of the capability enabled by Flex of having the distributed sample collection and then centralization of processing, that naturally leads to more centralization towards service providers to core labs, to big labs, which kind of reduces the necessity to be placing instruments at every single lab. And also, at this point, we do have a lot of Chromium instruments out there. So accessibility is generally not an issue at all. So yes, so overall, the dynamics around Single Cell are very similar to what we've been describing for the last couple of quarters, and we expect that to continue in the -- over the rest of the year. And I do expect, like I said earlier, all the people -- like a large majority of the people who intend to transition to Apex will have largely done so by the end of the year. And that should put us in a good position to keep driving that sort of robust reaction growth, but also having it be translated into more top line impact as well. As far as AI question is concerned, so again, there's a lot of layers to that. And I think it's really, really important to set context here, which is what I did earlier as well with my prepared remarks. Like I said earlier, and I think there's like a wide sort of recognition of that that AI is now a major structural tailwind for us because what these big AI models need is precisely what we have built over the years. And AI at this point, one way, in one shape or form is becoming pervasive across just about all of our customer segments. At this point, there isn't really a large project out there where AI isn't like either a big driver or at least like an important influencer and even small scale projects, I think in many instances, are performed with an eye towards feeding the data into AI models. And so in some cases, AI is a driver of demand. In some cases, it's an influencer and sometimes an accelerator. And what that means, right, one issue here is that AI can mean a lot of different things, and also the landscape is changing quite fast. And so that's why I went specifically in a bit more detail in explaining how AI, for example, is used potentially in drug -- in the context of drug development for the parts specifically to measure biology. If you think about drug development at the 3 kind of high level stages of drug development, target ID to understand the biology of what targets you go after, the chemistry, the middle part actually making the drug, the molecule and then figuring out which patients to give the drug to. That middle part is chemistry where a lot of current AI sort of investments up to now have been focused. But the big, big opportunity is really around the biology, the target ID and patient selection. And that's where our tools are becoming -- are really, really compelling and are becoming increasingly important. And so there are some parts of our revenue where unambiguously AI revenue is coming from those, like tech-bio companies, some large academic projects. But there's also others where there is a mix, big pharma companies that are -- we know are developing these AI models of biology, but also using our products for other goals. And same thing in academia. And so there's a mix. So right now, at this stage, I'd say it's still very early, but the opportunity is massive. And our products and technologies are particularly well positioned for this opportunity. And as we go forward and as these categories grow, we'll provide more granular color on them and how to think about sort of numbers around them.