Hello, everyone. Thank you for joining us, and Welcome to the 10x Genomics Second Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Cassie Corneau, Head of Investor Relations and Strategic Finance. Please go ahead. Thank you. Good afternoon, everyone. Earlier today, 10x Genomics released financial results for the second quarter ended June 30th, 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 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. 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. 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 Bio. Excluding non-recurring 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're highly encouraged by the engagement across the research ecosystem and the very strong early order flow. At the same time, our own 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, flex, 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're 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're 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 data sets 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 atlasing, mechanistic studies of how disease actually develops, monitoring response to novel immunotherapies and cell therapies, and for early biomarker and translational 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 a belief that spatial biology will fundamentally change how they approach drug discovery and development. We built Atera as a long-duration, upgradable 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 multi-omics. 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 multi-omic 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. 1st, 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're 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. 2nd, there is a growing interest in additional modalities in multi-omics, 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, Proteintech Genomics acquisition expands and complements our existing multi-omics 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're 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're 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. We're 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 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's 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 multi-omics 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 data sets. Advances in agentic AI are beginning to remove that bottleneck. Researchers who previously required dedicated computational experts are starting to analyze complex data sets 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 two forces will reinforce one another over the coming years. 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're 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 the 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're 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 non-recurring 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 non-recurring license and royalty revenue in both periods, Americas revenue was up 6%. EMEA 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 non-recurring license and royalty revenue. Excluding the impact of non-recurring 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 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-$630 million. Excluding non-recurring revenue related to patent litigation settlements in both 2026 and 2025, this represents 2%-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 towards 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 dynamics 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 are seeing for Atera reinforces our conviction in that strategy. With that, I'll 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 towards 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? We will now begin the question and answer session. Your first question is from the line of Kyle Mikson from Canaccord. Your line is now open. Please go ahead. Hey, guys. Thanks for the questions. Congrats on the quarter. Multi-part question. First on instruments. On Atera, great to hear all the demand and the interest and all that, but maybe why remain conservative with that expectation for the second half there? Is that primarily just the manufacturing capacity constraints in the near term, or maybe just dive into that? Thinking about a run rate for quarterly placements, is whatever you do in 4Q, is that a good way to think about the jumping off point into 2027, like Q1 and so forth? Secondly, just quickly, Serge, on AI, getting a lot of questions on your differentiation. You obviously have a lot of strong push there, but what really sets you apart, 10x apart, to benefit from that? Can you talk about any tangible revenue that you've recognized so far? Thanks. Thanks, Kyle. Just to your first question on Atera. 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 shifting the manufacturing capacity to ship the units in the second half of the year. We continue to expect to be able to ship 40, which is what we said 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. Your line is now open. Please go ahead. Great. Thanks for the question, guys. Just on the 3Q updated guide, you previously thought 3Q would be roughly flat. Now you're talking about a little step down here. Just wanted to know what got pushed out or what changed there. Secondly, as you think about the Atera launch and also in conjunction with the Apex Flex, you got a lot of things going on. 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? Let me take the first sort of pieces of that, Luke. I wouldn't say that things have changed. In fact, I would just remind you that the Q3 that we're talking about here is consistent with what we said in our Q1 call. We've always known that Q3, from a transition dynamic perspective in spatial, would be the peak transition dynamics. That's exactly what we're seeing. In part, it's a function of the enthusiasm that we've seen around Atera. We'd originally said back when we gave the original guide, Q1, then it would be a step down, 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'd articulated back on the Q1 call. We're still anticipating a modest couple million dollar step down from Q2 to Q3. That really is just a function of what's happening both on spatial instruments, but also a bit of spatial consumables as people are ramping up and getting prepared to receive 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 rev rec here, we've talked about sort of where list pricing is. Atera instruments alone get you most of the way, almost entirely of the way from Q3 to Q4, and it doesn't factor in Atera consumables. If you sprinkle in a little bit of seasonal, what we would normally have anticipated, 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. 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. Your line is now open. Please go ahead. Hey, thanks. Serge, what are you willing to say on manufacturing capacity for next year for Atera? That's a pretty common question. Obviously 40 systems this year, but how quickly can you scale up manufacturing? Maybe just the next two to three years. 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? I've got a follow-up. Thanks. Yeah, thanks, Tycho. The team is working really hard to get to the official launch of the platform to start shipping. Like we said, yes, we have 40 that we're planning for this quarter, for Q4, for the second half of the year. 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. All of that will be brought to bear as we scale up and move into next year and beyond. We feel really good about being able to scale up capacity over time to meet the demand as appropriate. As far as pull-through is concerned, 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. Yeah, we feel good about the potential of utilization here, just for kind of calibration. Mass utilization of Atera is somewhere between, depending on the kinds of assays you run, between one half million and 2 million, 3 million or so, depending on the assays. It's about 2x out of Xenium. 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, then follow up on single cell. Just thinking, next year the Street's got 4% growth in Chromium consumables. 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? Yeah, look, a little too early to talk about the next couple of years. We're in the middle of a fairly material transition year right now because of this Flex Apex dynamic. Apex has had a good momentum so far since launch towards the end of Q4 last year, it's 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. 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. Your line is now open. Please go ahead. Yeah, hi, guys. Thanks for the questions here. Serge, maybe a bit of a technical question on Atera. When you guys do your assessments of the platform sensitivity, what portion of the time are you finding that sensitivity is higher than Xenium? 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, I guess I'm just curious about what the overall view would be when you compare the two platforms, then how that translates to sales messaging. There's a lot of nuance, obviously, to these kinds of comparisons, but the high-level picture is unambiguously with sort of not real data, 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 the very targeted panels, if you care about specific genes, you can really boost your sensitivity on genes, 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 Flex kinds of panels on Xenium, is you can't really do that. Very high sensitivity, and remember, with Atera, you can also augment it with additional custom content if you need to boost any genes further. Overall, yes, we feel really strong about this platform. There's going to be some comparisons, maybe this is our kind of early days on 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. Okay. Thank you. Yeah. Your next question comes from the line of Subbu Nambi from Guggenheim Securities. Your line is now open. Please go ahead. Hi, guys. This is Thomas on for Subbu. Thanks for taking our question. 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? How are you thinking about the roadmap for the rest of this year after the first placements to make this transition smooth for those customers? Thanks. Yeah. Look, obviously, like I said earlier, a lot of demand for the platform. This has been 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. From that perspective, from demand perspective, not really an issue. In terms of product performance, once it's out there in the field, 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. Atera in particular, something that we have been working on for a very long time. I talked about that in the last call, been talking about that since then. We do a lot of testing, a lot of buttoning up all the different elements, before we ship our products, and particularly true of Atera. The team has been making tremendous progress. We feel really good about where things are headed, about the product and based on what we're seeing internally as well. 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, all the investment that has gone into Atera specifically. On the roadmap, 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 capability around automation, proteomics, multi-omics, base by base sequencing. 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. Your line is now open. Please go ahead. Hey, thanks, guys. I want to go back to Chromium and the single-cell platform. Chromium consumables are kind of flat, effectively quarter-over-quarter, just sequentially throughout the year. Instruments were a little bit on the lighter side. I understand a lot of focus on spatial and maybe Xenium, but just want to dig in some more into what you're seeing there. You've got things like the Billion Cell Atlas ongoing. You've got things like Quaterzi ongoing. You've been talking about AI-driven drug discovery, which I think should tap into single-cell a lot. Just sort of why are you seeing a little bit stronger numbers in Chromium? Is it all really tied to Flex or is there anything else going on? Maybe if you could just quantify what you're seeing, give us any tangible metric 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 Q2. Thanks. Yeah. Mike, thanks for the question. Yeah, on single-cell, I would say the first quarter dynamic by far is that sort of transition that I talked about earlier, the rise of Flex APEX and the transition of some of the other products to that assay. Again, it's had a really nice pickup, a really nice momentum. We expect that to continue. As a result of that, yeah, the volume growth has been quite consistent and very robust and very encouraging. A lot of that growth is in fact being driven by kind of the 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, in fact, 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 to resource providers, to core labs, to big labs, which kind of reduces the necessity to be placing instruments at every single lab. At this point, we do have a lot of Chromium instruments out there, so accessibility is generally not an issue at all. 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 over the rest of the year. I do expect, like I said earlier, all the people or large majority of the people who intend to transition to Apex will have largely done so by the end of the year. 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 the AI question is concerned, again, there's a lot of layers to that, and I think it's 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 a wide sort of recognition about that, AI is now a major structural tailwind for us, and because what these big AI models need is precisely what we have built over the years. AI at this point, 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 either a big driver or at least an important influencer. Even small-scale projects, I think in many instances are performed with an eye toward feeding the data into AI models. In some cases, AI is a driver of demand. In some cases, it's an influencer and sometimes an accelerator. What that means, one issue here is that AI can mean a lot of different things. Also the landscape is changing quite fast. That's why I went specifically in a bit more detail in explaining how AI, for example, is used potentially in the context of drug development, for the parts specifically to measure biology. If you think about drug development, the three kind of high stages of drug development, target ID: To understand the biology of what targets to go after, the chemistry, the middle part, actually making the drug, the molecule, and then figuring out which patients to give the drug to. The middle part is chemistry, where a lot of current AI sort of investment up to now have been focused. The big opportunity is really around the biology, the target ID and patient selection. That's where our tools are really compelling, and are becoming increasingly important. There are some parts of our revenue where unambiguously, AI revenue is coming from those, like tech bio companies, some large academic projects. There's also others where there is a mix. Big pharma companies that we know are developing these AI models of biology, but also using our products for other goals and same thing in academia. There's a mix. Right now at this stage, I'd say still very early, but the opportunity is massive and our products and technologies are particularly well-positioned for this opportunity. As we go forward and as these categories grow, we'll provide more granular color on them and how to think about numbers around them. Serge, the only thing I think I'd just add, just to the point you're making around centralization for Chromium instruments. Obviously, we're focused on driving every part of our business, but I think that distinguishing between demand for instruments versus demand for the platform and driving the volume and the activity that we're doing for Chromium consumables. Again, just for context, if you remember that Chromium instruments is about 2% of sales, which is important context as we're thinking about the total business. Your next question comes from the lines of Matt Larew from William Blair. Your line is now open. Please go ahead. Hi, good afternoon. You referenced a number of the larger projects you're working on with respect to AI and also on the translational side, and in some cases, customers adopting or increasing use of multiple platforms. I'm curious, as you're having these discussions about larger projects, multi-year projects, how important the suite of products that you have and software and analysis tools where there's perhaps some integration or at least familiarity how that kind of ecosystem might be having an effect as customers think about even longer-term projects versus the merits of the platforms on their own. Yeah. A really interesting question. Well, the first order answer I would say is that the platforms by themselves, whether you look at single-cell and spatial, have really strong merits just to stand on their own. I would say, certainly is really appealing in many ways to our customers. If you think about, for example, Flex, Apex, really high sensitivity, incredible scalability, huge robustness. This is actually really important for AI in particular, several points where it works across many different tissue types, many different cell types, many different contexts, and increasingly is becoming critical. If you want to build AI models that are useful, that generalize, you really need to be able to measure lots of different contexts. You can't be measuring the same cell line over and over again, for example. Flex is incredibly great for that. Also, another sort of emerging trend is, maybe it's a little bit of your question, too, here, is multi-omics, being able to measure other modalities. Again, we have unmatched strength along that dimension. Yeah, certainly there is an attractiveness to be able to do training models from a spatial perspective as well as from single-cell. We certainly provide these kinds of solutions to our customers. Also, yes, on the software side, something we haven't talked that much about, but of course, we have invested in software fairly materially from the beginning of the company. In particular, it's becoming important here because the datasets with Apex and with Atera are getting to be very large, especially for training AI models. We have made quite a number of advances specifically to enable people to run larger scale experiments in a straightforward kind of ergonomic manner. All of these pieces together do kind of tie out to provide really compelling solutions for our customers. Certainly much more compelling than any other potential alternatives on the market. Your next question is from the line of Casey Woodring from JP Morgan. Your line is now open. Please go ahead. Hi, this is Jayden on for Casey. Thank you so much for taking my question. I had one just on the broader market trends. Can you unpack what you're seeing across your academic end market? We've been hearing that some academic customers are beginning to receive grant approvals, but that funding has not yet fully flowed through to purchasing activity. Is that consistent with what you're seeing? How much of that are you thinking about the timing for potential improvement in that end market for the rest of the year? Would that be upside to the guide? Thanks. Yeah. Good question, too. It's kind of interesting. Almost feels like Groundhog Day a little bit, because we've been in this kind of tenuous environment for a while now where people are hoping and expecting that things will improve. To some extent, the sentiment and the expectation has been getting somewhat better. I think the story is largely the same as it was last quarter. Improvement in sentiment, but the environment, again, is still tenuous, and the dollars are still not flowing out, at least as far as the spending decisions are concerned. I would say, still seeing various issues that have been at play for a while, where even if you see sort of at the very highest level, the dollars are kind of appearing there in terms of funding, they don't actually impact purchasing because of how these dollars are allocated, for example, because of multi-year funding or there's sort of increased oversights of the review process that kind of puts some sand in the gears and just general shortage of staffing and things like that for grant reviews and order processing that we're hearing, keep hearing from our customers. I would say the environment is roughly similar to what it has been before. Yeah. I would just add to that, in the context of the guide, we're not anticipating things get any better, right? To the extent that there's some improvement, that's just a broader macro comment I would make, is that we're anticipating kind of in the guide that we've raised, that the macro sort of stays the same with what we've been seeing. It's been fairly consistent, and that's the way that we're thinking about our guidance. Your next question is from the line of David Westenberg from Piper Sandler. Your line is now open. Please go ahead. Hi, this is Skye on for Dave. Thanks for taking the question. Could you talk a little bit more about the commercial landscape of Atera and what it might look like going forward? Is it being sold by the existing sales force, or is there a specialized team? Do you anticipate needing to expand the sales count there? Are there any incentives in place to kind of steer Xenium or Visium customer prospects towards Atera? Sorry. Thanks. Yeah. Good question. Commercially, if you remember, almost two years ago now, we did a major restructuring of our sales force, and we specifically created a team focused on CapEx sales. That has actually put us in a really good position now with the arrival of Atera to have a team that's specifically focused on Atera instruments, to introduce them to the market and to drive sales. We are also leveraging the rest of our team to reach out to customers much more broadly and have the teams kind of work in concert to drive Atera into the market. I think your other question was any special incentives to drive customers to Atera? No. Look, first of all, our focus is always to make sure that we satisfy the applications needs that they have and kind of provide them with the right solution in every case. The sales team has been selling all of our solutions. Certainly, the amount of excitement around Atera is there, but it's driven fundamentally by customer demand. Your next question is from the line of Puneet Souda from Leerink. Your line is now open. Please go ahead. Hi, Serge and team. Thanks for taking my questions here. If I could ask on, again, Atera, obviously a really powerful instrument, but just wanted to get a sense of how are you incentivizing the broader labs beyond the top labs and institutes that are already interested in Atera and likely in the first 40 that are likely going to get it? Are you incentivizing them with any discounts? Are there any discounts for the broader labs on Xenium? Just wanted to get that or any change in pricing that you're expecting here in the near term. Then on just given the funding of the capital equipment remains challenging in the current environment. Then on the AI side, it does appear that the biology foundation models or the virtual cell models would require funding in the scale of $100 million or something closer in order to build the data for those models. Can you maybe just elaborate on what are the line of sight to the major large grants or funding sources right now that you see and the timing for those to land into 10X revenue? Thank you. Thanks, Puneet. First of all, there's a bunch of in those questions. First of all, on the Atera. Look, obviously early days, but the demand has been really strong, kind of across the board. Not just sort of your kind of early technology people, but much wider than that. That's really encouraging. For example, Biopharma is, again, early days, but like a disproportionate customer here with Atera. We feel quite good. At this stage about the amount of demand there beyond just the early customers. We haven't had to incentivize customers in any way to get them here and to put in their orders. Very encouraging signs. I would say, on the other side of the business, certainly, like I said in the answer to the previous question, we have the sales team that's selling all of our products right now and very focused on that, especially given that Atera is not yet shipping. Again, we'll always run some programs in different territories, in different regions where our salespeople work with customers to give them the right deals for their budgets and their applications. We're going to continue to do that, but nothing particularly out of the ordinary last quarter or this quarter or going forward. We feel good about the Atera trajectory. No question around that. As far as AI and funding is concerned, I think there's a lot of work at the highest levels happening where I spoke to that, where there's a general reprioritization of funding flows. I think it'll impact a lot of large-scale projects. Anything that has to do with larger-scale science is now having AI as a driver. If you think about it, the fundamental mental model, if you want to understand biology using AI, you have to use single-cell and spatial because they are the only scale technologies to modern biology. Whether that's the biopharma world or the world of academia or various consortia, that's the case. As people put in their priorities, whether it's from governments or from various non-profit organizations, we anticipate that that will ultimately translate into more deployment of single-cell and spatial and ultimately more revenue to us. Your next question is from the line of Dan Brennan from TD Cowen. Your line is now open. Please go ahead. Awesome. Hey, guys. Thank you. Thanks for the questions. Starting on Atera, good to hear the order is already exceeding the 40. Is there any way to help think about the placement opportunity? I know you get asked this, I'm trying to frame it, what it is the next few years and how purely additive to that, to the business of it versus what might take away. Obviously, Xenium going to stop shipping, I'm wondering on your other products as well. I think fundamentally, we talked about Xenium, and we've been quiet over the past quite some amount of time. We've seen really nice growth in Xenium and actually still continue to see it. Xenium has been growing the spatial market quite really robustly, and it's been really exciting. As we look forward to Atera, we expect it to amplify and accelerate that trend and also the early signals we're getting. It is true that, of course, it's going to impact sales of Xenium and certainly starting to moderate that somewhat already and more so going forward and Visium as well. Our expectation is that Atera demand will more than make up for any diminution in the other platforms. I would just add to that, Serge, even after the post Atera launch, both on the consumable side, both Visium and Xenium grew sequentially, grew from the prior quarter. There's a really good momentum happening there, in spatial with the existing products. Your next question comes from the line of Justin owers at Deutsche Bank. Your line is now open. Please go ahead. Hi, good afternoon. I just want to continue in the spirit of the last couple of questions. Can you talk about how you're segmenting the market for Atera versus Xenium and some of the lessons learned from the Xenium launch? Really, how does this new product cycle expand the TAM for spatial? Yeah. Look, we're seeing demand, like I mentioned, from across the board for Atera, really a lot of diversity, both in terms of the kinds of customers, whether it's universities, academic medical centers, biopharma companies, and also from the applications perspective, really broad. We started out with a focus, obviously, on oncology care, but also tons of interest in neuroscience, autoimmune, cardiometabolic, kidney. I mentioned this earlier in my prepared remarks, just every kind of biological system or therapeutic area. Also the kinds of experiments that people are looking to run, they're also really huge for us. You have your sort of foundational tissue atlasing. You have all these mechanistic studies of disease response to drugs like immunotherapy, cell therapies, and kind of all this biomarker translational work as well. Really strong early signs about just really material market expansion. We're even at this stage where we have no focus at all. We're already seeing some new customers coming out and expressing really strong interest in Atera. Our view is ultimately, over time, Atera is the future. Obviously, the instrument has not even shipped yet. Xenium is the best spatial platform right now and will keep being used, as Adam just mentioned, really continues to show really strong growth. As we go forward, we do expect that Atera will take up more and more of the spatial market and also drive material expansion over marketing. Your next question is from the line of Kallum Titchmarsh from Morgan Stanley. Your line is now open. Please go ahead. Hi. This is Jason on for Kallum. Thank you for taking my question. Appreciate the prior guidance on expectations for Atera instrument placements in the back half. I was wondering if you could provide some guidance on how we should think about Atera consumables revenue for 2026. Would similar consumables pull through per instrument as Xenium be a good jumping off point? Thank you. I can start, maybe. I think it's very hard to articulate. I mean, we don't have any units out in the field as of yet. We know what max pull-through could be, and it's 2x from a maximum perspective as compared to Xenium. I think I would also just add, as Serge noted, our intent for a wide variety of reasons is to get the first 40 instruments in the hands because demand is so high, to get the first 40 instruments in the hands of folks that do intend to be running those. In many cases, our service providers that can provide access to those that either don't have the CapEx or weren't one of the first lucky 40 to get their hands on one. I would say that certainly our intent, I don't think anyone wants to get an instrument of that sort of caliber and cost without the consumables to run through them. We are starting to take orders on the consumables side. It's not something we'll quantify at this time. It is embedded into that Q3 to Q4 step-up. Again, just to articulate that, we've been talking about spatial consumables and the momentum there. I just want folks to understand logically, we are still anticipating that we'll have good growth year-over-year from a consumable standpoint in Q3, but there will be a sequential step-down, because as we're starting to have conversations with customers about when they will receive their Atera, some of those are very large Xenium users. Some of them are already planning ahead and won't be running projects, won't be placing an order towards the end of Q3 that they would normally place. We're accounting for that in the guidance that we've given you. Then as you think about that step-up from Q3 to Q4, most of that, as mentioned, is covered by Atera instruments alone. If you think about it, we've said we'll get 40 out the door and the vast majority of those will actually happen in Q4. You've got that. Couple that with consumables that come through and then just normal year-end sort of dynamics. Again, it doesn't take a big sort of year-end flush as we've seen in certain years actually, to bridge yourself from that Q3 number to the Q4 number, if you think about it at the midpoint of our guide. There are no further questions at this time. We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect.