10x Genomics, Inc. is an American biotechnology company that designs and manufactures sequencing technologies for use in scientific research, with a focus on product development for single-cell and spatial omics.3 Its shares trade on Nasdaq under the symbol TXG.1Wikipedia text CC BY-SA 4.0
10x Genomics, Inc. is an American biotechnology company that designs and manufactures sequencing technologies for use in scientific research, with a focus on product development for single-cell and spatial omics.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Revenue9101112136$642.8M in 2025+339% since 2018Gross profit9101112136$443.9M in 2025+277% since 2018Operating income9101112136-$61.0M in 2025−45% since 2018Net income9101112136-$43.5M in 2025−61% since 2018
Revenue141516$151.0M in Q2 FY2026−13% since Q2 FY2025Gross profit141516$112.5M in Q2 FY2026−10% since Q2 FY2025Operating income141516-$19.6M in Q2 FY2026Net income141516-$17.9M in Q2 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.6
Period ending
2025-12-31
2024-12-31
2023-12-31
Revenue
$642.8M
$610.8M
$618.7M
Cost of products and services revenue
$198.9M
$196.3M
$209.4M
Gross profit
$443.9M
$414.5M
$409.3M
Research and development
$238.6M
$264.7M
$270.3M
Selling, general and administrative
$316.1M
$344.3M
$343.3M
Gain on settlement
-$49.9M
$0
$0
In-process research and development
$0
$0
$61.0M
Total operating expenses
$504.9M
$609.0M
$674.6M
Loss from operations
-$61.0M
-$194.6M
-$265.3M
Interest income
$20.0M
$18.9M
$16.9M
Interest expense
$0
-$4.0K
-$33.0K
Other income (expense), net
$1.0M
-$2.1M
-$286.0K
Total other income
$21.1M
$16.9M
$16.6M
Loss before provision for income taxes
-$39.9M
-$177.7M
-$248.8M
Provision for income taxes
$3.6M
$4.9M
$6.3M
Net loss
-$43.5M
-$182.6M
-$255.1M
Net loss per share, basic (in dollars per share)
-$0.35
-$1.52
-$2.18
Net loss per share, diluted (in dollars per share)
-$0.35
-$1.52
-$2.18
Weighted-average shares used to compute net loss per share, basic (in shares)
124.7M shares
120.5M shares
117.2M shares
Weighted-average shares used to compute net loss per share, diluted (in shares)
124.7M shares
120.5M shares
117.2M shares
No quarter-by-quarter statement was filed.
Total assets179101112136$1.0B in 2025+738% since 2018Total liabilities179101112136$245.0M in 2025+142% since 2018Shareholders’ equity101112136$796.3M in 2025Cash9101112136$474.0M in 2025+628% since 2018Long-term debt179$0 in 2020
Total assets18151614$1.0B in Q2 FY2026+5% since Q2 FY2025Total liabilities18151614$204.5M in Q2 FY2026−1% since Q2 FY2025Shareholders’ equity141516$825.5M in Q2 FY2026+7% since Q2 FY2025Cash141516$502.5M in Q2 FY2026+26% since Q2 FY2025
Every line of the balance sheet as filed: the last 4 fiscal years (annual) or 4 quarters (quarterly), latest first.6
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$474.0M
$344.1M
Marketable securities
$49.4M
$49.3M
Accounts receivable, net
$47.0M
$87.9M
Inventory
$56.3M
$83.1M
Other receivables
$35.5M
$606.0K
Prepaid expenses and other current assets
$22.2M
$19.4M
Total current assets
$684.5M
$584.4M
Property and equipment, net
$226.7M
$252.6M
Operating lease right-of-use assets
$60.5M
$57.3M
Goodwill
$4.5M
$4.5M
Intangible assets, net
$62.3M
$15.7M
Other noncurrent assets
$2.9M
$4.1M
Total assets
$1.0B
$918.6M
Accounts payable
$12.7M
$12.9M
Accrued compensation and related benefits
$42.5M
$33.6M
Accrued expenses and other current liabilities
$40.0M
$41.2M
Deferred revenue
$23.9M
$20.7M
Operating lease liabilities
$11.0M
$9.3M
Contingent consideration, current
$23.4M
$0
Total current liabilities
$153.5M
$117.6M
Contingent consideration, noncurrent
$1.2M
$0
Operating lease liabilities, noncurrent
$73.4M
$73.3M
Deferred revenue, noncurrent
$10.5M
$12.5M
Other noncurrent liabilities
$6.5M
$5.0M
Total liabilities
$245.0M
$208.5M
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued or outstanding as of December 31, 2025 and 2024
$0
$0
Common stock, $0.00001 par value; 1,100,000,000 shares authorized (Class A 1,000,000,000, Class B 100,000,000); 127,691,329 (Class A 117,612,457, Class B 10,078,872) and 122,291,837 (Class A 108,235,004, Class B 14,056,833) shares issued and outstanding as of December 31, 2025 and 2024, respectively
$2.0K
$2.0K
Additional paid-in capital
$2.3B
$2.2B
Accumulated deficit
-$1.5B
-$1.5B
Accumulated other comprehensive income (loss)
$225.0K
-$493.0K
Total stockholders equity
$796.3M
$710.1M
$741.0M
$805.7M
Total liabilities and stockholders equity
$1.0B
$918.6M
Preferred stock, par value (in dollars per share)
$0.00
$0.00
Preferred stock, shares authorized (in shares)
100.0M shares
100.0M shares
Preferred stock, shares issued (in shares)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in dollars per share)
$0.00
$0.00
Common stock, shares authorized (in shares)
1.1B shares
1.1B shares
Common stock, shares issued (in shares)
127.7M shares
122.3M shares
Common stock, shares outstanding (in shares)
127.7M shares
122.3M shares
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$474.0M
$344.1M
Marketable securities
$49.4M
$49.3M
Accounts receivable, net
$47.0M
$87.9M
Inventory
$56.3M
$83.1M
Other receivables
$35.5M
$606.0K
Prepaid expenses and other current assets
$22.2M
$19.4M
Total current assets
$684.5M
$584.4M
Property and equipment, net
$226.7M
$252.6M
Operating lease right-of-use assets
$60.5M
$57.3M
Goodwill
$4.5M
$4.5M
Intangible assets, net
$62.3M
$15.7M
Other noncurrent assets
$2.9M
$4.1M
Total assets
$1.0B
$918.6M
Accounts payable
$12.7M
$12.9M
Accrued compensation and related benefits
$42.5M
$33.6M
Accrued expenses and other current liabilities
$40.0M
$41.2M
Deferred revenue
$23.9M
$20.7M
Operating lease liabilities
$11.0M
$9.3M
Contingent consideration, current
$23.4M
$0
Total current liabilities
$153.5M
$117.6M
Contingent consideration, noncurrent
$1.2M
$0
Operating lease liabilities, noncurrent
$73.4M
$73.3M
Deferred revenue, noncurrent
$10.5M
$12.5M
Other noncurrent liabilities
$6.5M
$5.0M
Total liabilities
$245.0M
$208.5M
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued or outstanding as of December 31, 2025 and 2024
$0
$0
Common stock, $0.00001 par value; 1,100,000,000 shares authorized (Class A 1,000,000,000, Class B 100,000,000); 127,691,329 (Class A 117,612,457, Class B 10,078,872) and 122,291,837 (Class A 108,235,004, Class B 14,056,833) shares issued and outstanding as of December 31, 2025 and 2024, respectively
$2.0K
$2.0K
Additional paid-in capital
$2.3B
$2.2B
Accumulated deficit
-$1.5B
-$1.5B
Accumulated other comprehensive income (loss)
$225.0K
-$493.0K
Total stockholders equity
$796.3M
$710.1M
$741.0M
$805.7M
Total liabilities and stockholders equity
$1.0B
$918.6M
Preferred stock, par value (in dollars per share)
$0.00
$0.00
Preferred stock, shares authorized (in shares)
100.0M shares
100.0M shares
Preferred stock, shares issued (in shares)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in dollars per share)
$0.00
$0.00
Common stock, shares authorized (in shares)
1.1B shares
1.1B shares
Common stock, shares issued (in shares)
127.7M shares
122.3M shares
Common stock, shares outstanding (in shares)
127.7M shares
122.3M shares
Cash from operations9101112136$136.1M in 2025Capital spending9101112136$5.9M in 2025−6% since 2018Free cash flow9101112136$130.1M in 2025
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.6
Period ending
2025-12-31
2024-12-31
2023-12-31
Net loss
-$43.5M
-$182.6M
-$255.1M
Stock-based compensation expense
$109.1M
$140.7M
$166.9M
Depreciation and amortization
$36.2M
$35.9M
$35.5M
Asset and lease impairment charges
$814.0K
$3.1M
$9.8M
ROU assets impairment due to restructuring
$1.3M
$0
$0
Amortization of right-of-use assets
$7.6M
$7.8M
$8.1M
Fair value adjustments on contingent consideration
$1.4M
$0
$0
Realized loss on marketable securities
$0
$3.0K
$1.7M
Other
-$1.8M
$523.0K
$427.0K
Accounts receivable
$41.3M
$27.0M
-$10.6M
Other receivables
-$34.9M
$0
$0
Inventory
$28.0M
-$9.8M
$7.9M
Prepaid expenses and other current assets
-$2.3M
-$1.9M
-$2.4M
Other noncurrent assets
$689.0K
-$1.1M
-$678.0K
Accounts payable
-$2.1M
-$3.4M
-$6.0M
Accrued compensation and other related benefits
$7.6M
$3.7M
-$2.6M
Deferred revenue
$746.0K
$11.2M
$10.9M
Accrued expenses and other current liabilities
-$5.2M
-$12.7M
$28.3M
Operating lease liability
-$10.3M
-$12.5M
-$8.7M
Other noncurrent liabilities
$1.4M
$776.0K
$1.3M
Net cash provided by (used in) operating activities
$136.1M
$6.7M
-$15.2M
Proceeds from maturities of marketable securities
$125.2M
$25.8M
$82.8M
Proceeds from sales of marketable securities
$0
$3.9M
$100.2M
Purchase of marketable securities
-$123.4M
-$48.9M
$0
Asset acquisition, net
-$9.3M
$0
$0
Purchases of property and equipment
-$5.9M
-$12.4M
-$48.6M
Purchase of intangible assets
$0
-$1.0M
-$923.0K
Net cash (used in) provided by investing activities
-$13.4M
-$32.6M
$133.5M
Issuance of common stock from exercise of stock options and employee stock purchase plan purchases
$6.8M
$10.9M
$19.5M
Payments on technology license financing arrangement
$0
$0
-$5.8M
Net cash provided by financing activities
$6.8M
$10.9M
$13.7M
Effect of exchange rate changes on cash and cash equivalents
$484.0K
-$164.0K
-$33.0K
Net increase (decrease) in cash and cash equivalents
$129.9M
-$15.2M
$131.9M
Cash paid for interest
$0
$0
$436.0K
Cash paid for taxes
$2.4M
$5.6M
$4.9M
Purchases of property and equipment included in accounts payable, accrued expenses and other current liabilities
$215.0K
$1.4M
$3.3M
Right-of-use assets obtained in exchange for new operating lease liabilities
10X Genomics sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.
Major holders of 10X Genomics
ARK Investment Management LLC Filed SCHEDULE 13G/A on 10X Genomics, latest Oct 7, 2026 (5 filings since Aug 12, 2024)
PRICE T ROWE ASSOCIATES INC /MD/ Filed SCHEDULE 13G on 10X Genomics, latest Sep 8, 2026
VANGUARD CAPITAL MANAGEMENT LLC Filed SCHEDULE 13G on 10X Genomics, latest Apr 29, 2026
VANGUARD GROUP INC Filed SCHEDULE 13G/A on 10X Genomics, latest Mar 25, 2026 (7 filings since Feb 9, 2022)
FMR LLC Filed SCHEDULE 13G/A on 10X Genomics, latest Mar 6, 2026 (12 filings since Dec 10, 2021)
Amova Asset Management Americas, Inc. Filed SCHEDULE 13G/A on 10X Genomics, latest Nov 13, 2025 (4 filings since Nov 8, 2024)
Sumitomo Mitsui Trust GroupFiled SCHEDULE 13G/A on 10X Genomics, latest Oct 27, 2025 (4 filings since Nov 5, 2024)
MILLENNIUM MANAGEMENT LLC Filed SCHEDULE 13G/A on 10X Genomics, latest Aug 12, 2025 (2 filings since Apr 4, 2025)
BAILLIE GIFFORD & CO Filed SC 13G/A on 10X Genomics, latest Jun 7, 2024 (4 filings since Jan 18, 2022)
Morgan StanleyFiled SC 13G/A on 10X Genomics, latest Dec 8, 2023 (5 filings since Feb 9, 2022)
Venrock Associates VI, L.P. Filed SC 13G/A on 10X Genomics, latest Feb 14, 2023 (2 filings since Feb 14, 2022)
10X GenomicsPleasanton, California, United States
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What 10X Genomics reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Our global corporate headquarters, research and development facilities, and manufacturing and distribution centers are located in Pleasanton, California, where we own approximately 148,000 square feet of space and lease approximately 300,000 square feet of space under leases expiring between September 2029 and June 2033, as well as a manufacturing and distribution center in Singapore and a manufacturing center in Taiwan. Including the Pleasanton leases, we lease approximately 431,000 square feet globally. We believe that our current and planned facilities are sufficient to meet our ongoing needs and that, if we require additional space, we will be able to obtain additional facilities on commercially reasonable terms.
10x Genomics was founded in 2012 by Serge Saxonov, Ben Hindson and Kevin Ness to create advanced testing equipment for use in cellular biology. Prior to starting the company, Saxonov was the founding architect, and director of research and development at 23andMe. Ness left 10x Genomics in December 2016 and in 2018, Justin McAnear, Tesla's former finance chief joined the company as CFO.
In August 2018, the company announced its first acquisition, Epinomics, a biotechnology company focused on the development of new techniques for epigenetics research. Four months later, 10x Genomics acquired Spatial Transcriptomics, a biotechnology company working in the field of spatial genomics. In November 2018, 10x Genomics announced expansion plans including opening a manufacturing facility in Pleasanton, California in early 2019.
10x Genomics announced its initial public offering on September 12, 2019, raising $390M. The company had revenues of $3.32 million in 2015, $27.48 million in 2016, $71.18 million in 2017, $145 million in 2018, and $618.7 million in 2023.
Saxonov, Hindson, and Ness worked together at Quantalife prior to its acquisition by Bio-Rad in 2011 and left in 2012 to launch 10x Genomics. In 2014 an arbitration dispute was brought against the three cofounders by Bio-Rad, claiming they had breached obligations they allegedly owed to Bio-Rad after it acquired Quantalife. In 2015 an arbitrator determined that the founders of 10x Genomics had not breached their obligation to Bio-Rad when they left the company and denied its claims.
In November 2018, a Delaware jury found that 10x Genomics infringed on several University of Chicago patents that were exclusively licensed to Bio-Rad. 10x Genomics were ordered to pay $24 million in damages to Bio-Rad and a 15% royalty on sales. 10x Genomics appealed the verdict but the decision was upheld in August 2020. In July 2021, Bio-Rad and 10x Genomics settled all outstanding lawsuits brought in American federal as well as international courts for an undisclosed amount and the rights for the companies to license each other's patents for single-cell analysis.
392 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 38 major events, 208 insider forms, 53 large holders, 73 other. The latest 20:
134 open-market trades by officers, directors and large owners since October 2021: 3 buys and 131 sales. Grants, option exercises and gifts are left out.
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
Class A common stock, par value $0.00001 per share
TXG
The Nasdaq Stock Market LLC
From the cover page of the 10-K filed Feb 13, 2026 (Section 12(b) of the Exchange Act).19
Risk factors and legal proceedings
The risks 10X Genomics names in Item 1A of its 10-K filed Feb 13, 2026: 72 risks under these headings, as written.19
Our operating results have in the past fluctuated significantly and may continue to fluctuate significantly in the future, which makes our future operating results difficult to predict and could cause our operating results to fall below expectations or any guidance we may provide.
Our business is significantly dependent on researchers and institutions which rely heavily on U.S. academic and government funding, including NIH grants, and any delays, reductions, modification of the terms or cancellations of such funding, or other changes to the budgets, budget cycles, seasonal or other spending patterns or the operations of our customers or the institutions that fund them, could adversely affect our sales and financial performance.
Our industry is highly competitive. If we fail to compete effectively, our business and operating results will suffer.
Price reductions, discounting or future price changes may negatively impact our financial results if we are unable to achieve offsetting benefits.
We may not be able to develop new products or new versions of existing products, enhance the capabilities of our existing products to keep pace with rapidly changing technology and customer requirements or successfully manage the transition to new product offerings, any of which could have a material adverse effect on our business and operating results.
Our failure to effectively manage product transitions or accurately forecast customer demand could result in excess or obsolete inventory and resulting charges.
Our business currently depends significantly on research and development spending by research institutions, a reduction in which could limit demand for our products and materially and adversely affect our business and operating results.
If we are unable to successfully execute our strategy to enter the clinical and diagnostic markets, our business and growth prospects could be materially and adversely affected.
Trade tariffs, import restrictions, export restrictions, Chinese regulations or other trade barriers may materially harm our business.
Our future success is dependent upon our ability to increase penetration in our existing customer segments.
Our past or future efforts to maintain and increase the effectiveness of our commercial organization may not succeed.
The size of the market for our solutions may be smaller than estimated and new opportunities may not develop as quickly as we expect, or at all, limiting our ability to successfully sell our solutions.
The other 60 risks
We have incurred significant losses since inception, we expect to incur losses in the future and we may not be able to generate sufficient revenue to achieve and maintain cash flows from operating activities in excess of our capital investment requirements or profitability.
Our products generate large-scale complex data which requires advanced analytics to interpret.
We may be unable to consistently manufacture our instruments and consumables to the necessary specifications or in quantities necessary to meet demand at an acceptable cost or at an acceptable performance level.
Our instruments, consumables and related components are specialized, complex and difficult to manufacture. We could experience production problems that impact our ability to manufacture and ship our instruments, consumables and related components, which would materially and adversely affect our business, financial condition and results of operations.
Undetected errors or defects in our solutions could harm our reputation and decrease market acceptance of our solutions.
We are significantly dependent upon revenue generated from the sale of our Chromium solutions, and in particular our Universal Gene Expression and Flex solutions.
Doing business internationally creates operational and financial risks for our business.
Our business in China subjects us to unique commercial, operational, competitive and regulatory risks.
We and our customers are dependent on single source and sole source suppliers for some of the equipment, components and materials used in our products and in conjunction with our products and the loss of any of these suppliers could harm our business.
Certain disruptions in supply of, and changes in the competitive environment for, raw materials integral to the manufacturing of our products may adversely affect our profitability.
Our limited operating history and fluctuations in revenue make it difficult to evaluate our future prospects and the risks and challenges we may encounter.
If we do not sustain or successfully manage our growth and anticipated growth, our business and prospects will be harmed.
If our existing and new products or new versions of existing products fail to achieve and sustain sufficient scientific acceptance, we will not generate expected revenue and our prospects may be harmed.
Our results of operations could be materially adversely affected by fluctuations in currency exchange rates.
We depend on our key personnel and other highly qualified personnel, and if we are unable to recruit, train, retain and ensure the health and safety of our personnel, we may not achieve our goals.
If our facilities or our third-party manufacturers’ facilities become unavailable or inoperable, our research and development programs could be adversely impacted and manufacturing of our instruments and consumables could be interrupted.
We rely exclusively on commercial carriers to transport our products, including perishable consumables, to our customers in a timely and cost-efficient manner and if delivery of our products is disrupted, our business will be harmed.
Costs or other factors related to our facilities and real estate could adversely impact our business.
If we fail to offer high-quality customer service, our business and reputation could suffer.
Investments and acquisitions could disrupt our business, cause dilution to our stockholders and otherwise harm our business.
Seasonality may cause fluctuations in our revenue and results of operations.
Our reliance on distributors for sales of our products in certain geographies outside of the United States could limit or prevent us from selling our products and impact our revenue.
Uncertain economic or social conditions may adversely impact demand for our products or cause our customers, vendors and suppliers to suffer financial hardship, which could adversely impact our business.
Inflationary pressures, and changes in foreign currency exchange rates, interest rates and market value of our investments, including marketable securities, could have a significant effect on results.
AI and machine learning technologies may expose us to significant risks, including development and deployment challenges, regulatory uncertainties, competition for investor research and potential hard-to-predict changes to our business, which could adversely affect our business, results of operations and financial condition.
If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.
The illegal distribution and sale by third parties of stolen, counterfeit or unfit versions of our products could have a negative impact on our reputation and business.
The investment of marketable securities is subject to risks which may cause losses and affect the liquidity of these investments.
Indebtedness may impair our financial and operating flexibility.
Risks related to our regulatory environment and taxation
Our products could become subject to more onerous regulation by the FDA or other regulatory agencies in the future, which could increase our costs and delay or prevent commercialization of our products, thereby materially and adversely affecting our business, financial condition, results of operations and prospects.
Our products, if used for the diagnosis of disease or in other clinical settings, would likely be subject to government regulation, and the regulatory approval and maintenance process for such products may be expensive, time-consuming and uncertain both in timing and in outcome. Since our strategy includes our potential participation in clinical markets, we will be increasingly exposed to these risks.
Newly developed Laboratory Development Tests (LDTs) may be subject to new regulatory clearance or approval, and could result in adverse impacts to our business, financial condition, or results of operations.
We are subject to risks related to taxation in multiple jurisdictions and changes in tax laws or regulations that are applied adversely to us or our customers may have a material adverse effect on our business, cash flow, financial condition or results of operations.
Our ability to use net operating losses to offset future taxable income may be subject to certain limitations.
Ethical, legal, privacy and social concerns or governmental restrictions surrounding the use of the genomic and multiomic information and gene editing could reduce demand for our products.
Risks related to our intellectual property, information technology and data security
Our success will depend on our ability to obtain, maintain and protect our intellectual property rights.
If we cannot successfully enforce our intellectual property rights, the commercial value of our products and technologies will be adversely affected and our competitive position may be harmed.
We may be subject to claims challenging the inventorship or ownership of our patents and other intellectual property rights.
We depend on certain intellectual property rights that are licensed to us. We may be unsuccessful in licensing or acquiring intellectual property rights from third parties that may be necessary to develop, manufacture and/or commercialize our current and/or future products or technologies.
If we fail to execute invention assignment agreements with our employees and contractors involved in the development of intellectual property rights or are unable to protect the confidentiality of our trade secrets, the value of our products and technologies and our business and competitive position could be harmed.
We may be subject to claims that we or our employees have misappropriated the intellectual property rights of a third party, including trade secrets or know-how, or are in breach of non-competition or non-solicitation agreements with our competitors.
Obtaining and maintaining patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.
Changes in patent law or the organizational changes to the USPTO could diminish the value of our patents in general, thereby impairing our ability to protect our current and future products, services or technologies, and could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our current or future patents.
Intellectual property rights do not necessarily address all potential threats to our competitive advantage.
If our trademarks and trade names are not adequately protected, we may not be able to build name recognition in our markets of interest and our competitive position may be harmed.
Our solutions contain third-party open source software components and failure to comply with the terms of the underlying open source software licenses could restrict our ability to sell our products.
We collect, process, store, share, disclose and use personal information and other data, which subjects us to governmental regulations and other legal obligations related to privacy and security, and our actual or perceived failure to comply with such obligations could harm our business.
If we or our critical third-party providers experience a significant disruption in our information technology systems or breaches of data security, our business could be adversely affected.
We rely on on-premise, co-located and third-party data centers and platforms to host our website and other online services, as well as for research and development purposes and any interruptions of service or failures may impair and harm our business.
We are subject to certain manufacturing restrictions related to licensed intellectual property rights that were developed with the financial assistance of United States government grants.
Risks related to litigation and our intellectual property
We may become a party to intellectual property litigation or administrative proceedings that could be expensive, time-consuming, unsuccessful, and could interfere with our ability to develop, manufacture and commercialize our products or technologies.
We are involved in lawsuits to protect, enforce or defend our patents and other intellectual property rights, which are expensive, time consuming and could ultimately be unsuccessful.
Risks related to ownership of our Class A common stock
Sales of a substantial number of shares of our Class A common stock by our existing stockholders could cause the price of our Class A common stock to decline.
The multi-class structure of our common stock has the effect of concentrating voting control with those stockholders who held our capital stock prior to the completion of our IPO, including our co-founders, and may depress the trading price of our Class A common stock.
Delaware law and provisions in our amended and restated certificate of incorporation and amended and restated bylaws might discourage, delay or prevent a change in control of our company or changes in our management and, therefore, depress the trading price of our Class A common stock.
Our amended and restated bylaws designate a state or federal court located within the State of Delaware as the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers or employees.
General risk factors
We may fail to meet our publicly announced guidance or other expectations about our business, which could cause our stock price to decline.
The market price of our Class A common stock may be volatile, which could result in substantial losses for investors.
Securities analysts may not publish favorable research or reports about our business or may publish no information at all, which could cause our stock price or trading volume to decline.
We have incurred and will continue to incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to compliance initiatives and corporate governance practices, including maintaining an effective system of internal controls over financial reporting.
Legal proceedings
See Note 7, Commitments and Contingencies, to the consolidated financial statements included in Item 8 of Part II of this Annual Report on Form 10-K for information regarding certain legal proceedings in which we are involved.
We are regularly subject to lawsuits, claims, arbitration proceedings, administrative actions and other legal and regulatory proceedings involving intellectual property disputes, commercial disputes, competition and other matters, and we may become subject to additional types of lawsuits, claims, arbitration proceedings, administrative actions, government investigations and legal and regulatory proceedings in the future and as our business grows, including proceedings related to product liability or our acquisitions, securities issuances or our business practices, including public disclosures about our business. Our success depends in part on our non-infringement of the patents or proprietary rights of third parties. In the past, third parties have asserted and may in the future assert that we are employing their proprietary technology without authorization. We have been involved in multiple patent litigation matters and other proceedings in the past and we expect that given the litigious history of our industry and the high profile of operating as a public company, third parties may claim that our products infringe their intellectual property rights. We have also initiated litigation to defend our technology including technology developed through our significant investments in research and development. It is our general policy not to out-license our patents but to protect our sole right to own and practice them. There are inherent uncertainties in these legal matters, some of which are beyond management’s control, making the ultimate outcomes difficult to predict.
