Track market-moving stories before they get noisy

Nu Holdings Ltd. (NU - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned -19.6%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Banks - Foreign industry, which Nu falls in, has gained 1.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Nu is expected to post earnings of $0.20 per share for the current quarter, representing a year-over-year change of +42.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -2%.

For the current fiscal year, the consensus earnings estimate of $0.84 points to a change of +35.5% from the prior year. Over the last 30 days, this estimate has changed -0.7%.

For the next fiscal year, the consensus earnings estimate of $1.15 indicates a change of +37.4% from what Nu is expected to report a year ago. Over the past month, the estimate has changed +1.1%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nu is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Nu , the consensus sales estimate for the current quarter of $5.36 billion indicates a year-over-year change of +46.1%. For the current and next fiscal years, $21.96 billion and $26.98 billion estimates indicate +39.2% and +22.9% changes, respectively.

Last Reported Results and Surprise HistoryNu reported revenues of $4.97 billion in the last reported quarter, representing a year-over-year change of +53%. EPS of $0.19 for the same period compares with $0.12 a year ago.

Compared to the Zacks Consensus Estimate of $4.97 billion, the reported revenues represent a surprise of -0.01%. The EPS surprise was -5%.

Over the last four quarters, Nu surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Nu is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nu . However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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Nu Holdings (NU +4.04%), a digital banking provider in Latin America, closed Thursday at $12.12, up 4.12%. The stock moved higher after the board approved a new $1 billion share repurchase program. Investors are watching how the buyback offsets recent leadership and credit-risk concerns. Trading volume reached 66.9 million shares, nearly 25% above its three-month average of 53.6 million shares. Nu Holdings IPO'd in 2021 and has grown 17% since going public.

How the markets moved todayThe S&P 500 rose 0.41% to 7,585, while the Nasdaq Composite slipped 0.09% to 26,831. Among digital banking peers, Banco Bradesco closed at $3.39 (+0.30%), and Itaú Unibanco finished at $7.64 (+0.66%), lagging Nu Holdings’ buyback-fueled rebound.

What this means for investorsWith Nu’s stock down 28% so far in 2026, I certainly don’t mind seeing management jump in and say they plan to buy back $1 billion in stock over the next year. However, investors need to realize that the scope of the buybacks isn’t massive. Home to a $57 billion market cap, the buybacks would theoretically reduce Nu’s share count by less than 2%. Not bad news, but nothing to overreact to either.

Furthermore, Nu’s shares outstanding have risen by 1% annually over the last three years, so these buybacks might just offset dilution, rather than really lower its share count over time. Trading at just 14 times forward earnings, despite growing members, average revenue per active customer, and net income by 13%, 33%, and 56%, respectively, Nu appears to be reasonably priced, so I support the buyback plans.

Josh Kohn-Lindquist has positions in Nu Holdings. The Motley Fool has positions in and recommends Nu Holdings. The Motley Fool has a disclosure policy.

Key Takeaways NU reached 135M customers in Q1 2026, with Brazil accounting for 85% of the country's adult population.NU posted $5.3B in revenues ( 42% YoY), $1.9B gross profit, and $871M net income, up 41% year over year.NU stock is down 28.5% YTD, and is trading at 12.28 forward P/E vs. the industry's 10.54. Nu Holdings (NU - Free Report) has reached a scale in Latin America that many fintechs can only dream of. In the first quarter of 2026, the company counted 135 million customers across its footprint, with Brazil alone accounting for 85% of the adult population using its platform.

Such breadth is translating into powerful financial performance. Quarterly revenues crossed $5 billion for the first time in the quarter, rising 42% year over year. At the same time, gross profit surged to $1.9 billion, up 27% year over year. While many U.S. fintech peers continue to burn cash, Nu Holdings reported $871 million in net income in the quarter, climbing 41% year over year.

The interplay is clear: rapid customer adoption feeds top-line growth, credit drives gross profit, and disciplined execution ensures bottom-line strength. Brazil is the anchor, but Mexico and Colombia are adding meaningful momentum. Nu Holdings isn’t merely scaling; it’s scaling profitably and at a pace that places it well ahead of many fintech rivals.

By demonstrating that growth and profitability don’t have to be mutually exclusive, NU is carving out a rare position in digital banking: a fintech giant that’s already highly profitable, yet still in the middle of a steep growth curve.

Peer Pressure?While Nu Holdings continues to surge ahead in Latin America, U.S.-based peers like SoFi Technologies (SOFI - Free Report) and Block (XYZ - Free Report) are taking different routes to growth. SoFi is focusing on deepening customer relationships through bundled financial services like lending, investing and banking. Its strategy seems to emphasize lifetime value over rapid user expansion. Meanwhile, Block is sharpening its dual ecosystem approach, serving both individual users through Cash App and small businesses via Square.

While both SoFi and Block are evolving steadily, NU’s pace and scale of customer acquisition in emerging markets underscore a distinct momentum that sets it apart in the global fintech landscape.

NU’s Price Performance, Valuation, EstimatesThe stock has declined 28.5% year to date against the industry’s 5% decline.

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From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 12.28, which is well above the industry’s 10.54. It carries a Value Score of C.

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The Zacks Consensus Estimate for NU’s 2026 earnings has stayed unchanged over the past 30 days.

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NU stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways NU trades near 12x forward earnings despite projected 39% revenue growth and 35.5% EPS growth.Nu Holdings generated 13.4% ROIC and 13.9% ROE while continuing rapid Latin America expansion.NU faces risks from Brazil's high rates and potentially costly U.S. expansion efforts. Shares of Nu Holdings (NU - Free Report) have fallen sharply in recent months, erasing much of the momentum generated during the last year. The stock is down 22% in the past three months and 30.5% in the past six months.

The decline has raised concerns about whether the company’s rapid expansion story is slowing or whether the recent weakness simply reflects broader fears surrounding Brazil’s economic environment.

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Despite the pullback, NU continues to stand out as one of the fastest-growing digital banking platforms globally. The company still combines strong customer acquisition, expanding profitability, and impressive revenue growth with a valuation that remains relatively attractive compared to many high-growth fintech peers.

Let’s analyze the positives and negatives and derive the next move for investors.

NU’s Growth Outlook and Valuation Combination Remain AttractiveOne of the strongest positives surrounding NU is the company’s rare balance between rapid growth and reasonable valuation. Thanks to the recent correction, the stock is trading at roughly 12X forward earnings compared to the industry’s 10.5X, which still appears relatively inexpensive considering analysts expect revenue growth of 39% and EPS growth of 35.5% this year.

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Those growth rates are unusually high for a fintech company that has already achieved substantial scale across Latin America. The stock previously rallied nearly 50% during the second half of 2025 before returning to around the original $12 entry level, creating renewed investor interest. Market sentiment toward NU also remains broadly constructive, with many bullish analysts continuing to view the recent weakness as a temporary valuation reset rather than evidence of a broken long-term business model.

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Strong Returns on Capital Highlight NU’s Operating EfficiencyAnother major positive surrounding NU is its strong capital efficiency, which continues to stand out within the global banking and fintech industry. The company is currently generating a 13.4% return on invested capital and a 13.9% return on equity, reflecting management’s ability to deploy capital efficiently while continuing to scale operations rapidly across Latin America. These figures remain stronger than those produced by many traditional banking institutions, particularly in a high-interest-rate environment. The metrics also suggest that NU is successfully balancing growth and operational discipline as it expands its customer base and product ecosystem. Strong returns on capital often indicate a durable business model capable of generating meaningful shareholder value over the long term, especially when paired with sustained revenue and earnings growth.

Brazil’s High Interest Rates Could Hurt Consumer Credit QualityThe biggest near-term concern facing NU involves the risk of worsening consumer credit conditions in Brazil. The country’s central bank aggressively raised benchmark interest rates from 10.5% in June 2024 to 15.0% earlier this year before only slightly reducing them to 14.5%. That 450-basis-point tightening cycle has significantly increased fears surrounding economic slowdown and consumer financial stress. Investors worry that higher borrowing costs, weaker spending conditions, and rising energy-price uncertainty could eventually trigger a broader deterioration in Brazilian loan books. Although reported delinquency metrics have not yet shown severe damage, analysts remain increasingly cautious because loan stress often appears with a delay after major monetary tightening cycles. Since lending profitability remains central to NU, any meaningful increase in defaults or charge-offs could pressure earnings growth and investor sentiment over the next several quarters.

U.S. Expansion Could Pressure Earnings for YearsAnother significant risk for NU is the possibility of rising expenses tied to its U.S. expansion strategy. The recent appointment of former Visa North America executive Rob Livingston as CFO strongly suggests the company may pursue a much broader push into the American financial-services market. While Livingston’s experience from Visa and Capital One could strengthen execution, concerns remain about the scale of investment spending that may follow. Nu Holdings already spent years funding losses in Mexico and Colombia before those operations improved financially. However, the U.S. market is substantially larger, more competitive, and more expensive to penetrate. Building a scalable American operation would likely require heavy spending on compliance, infrastructure, customer acquisition, and marketing. NU could face several years of weaker reported profitability as management prioritizes long-term expansion over short-term earnings growth.

Pier ViewSoFi Technologies (SOFI - Free Report) remains one of the most relevant peers for Nu Holdings because both companies are attempting to disrupt traditional banking through technology-driven financial ecosystems. Like Nu, SOFI continues focusing on customer acquisition, cross-selling, and digital engagement to expand long-term monetization opportunities. Investors often compare Nu and SOFI because both firms emphasize scalable digital banking models with strong growth potential.

Another important comparison is Inter&Co (INTR - Free Report) , which operates within Brazil’s digital banking sector and faces similar macroeconomic conditions. Like Nu Holdings, INTR benefits from the long-term transition toward mobile-first financial services in Latin America. Investors frequently evaluate Nu against INTR when analyzing loan growth, profitability trends, and customer expansion across the Brazilian fintech landscape.

Hold NU for NowNu Holdings still appears positioned as one of the strongest long-term fintech growth stories in Latin America despite the recent stock weakness. The company continues delivering strong customer growth, resilient lending margins, and expanding monetization opportunities across its ecosystem. At the same time, investors must recognize that rising credit-risk concerns in Brazil and heavier spending tied to international expansion could continue creating volatility over the near term. While the broader long-term business model remains attractive, macroeconomic uncertainty and execution risks may limit upside momentum in the immediate future. Given this balance between strong structural growth drivers and near-term operational pressures, the current setup appears more suitable for a hold approach, with investors closely monitoring future credit trends and profitability execution before becoming more aggressive buyers.

NU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

If your business is not considered a winner from artificial intelligence (AI), then it is likely severely underperforming the market. Consider Nu Holdings (NU +4.04%). The digital banking giant is down 28% this year and 37% from its 52-week high, while the S&P 500 index is up more than 8% in 2026.

This creates a bargain-buying opportunity for Nu Holdings stock if investors plan to hold for five or more years. Here's why shares of Nu Holdings, parent of Nu Bank, look cheap right now, why management agrees, and what returns could look like for the fast-growing bank during the next five years.

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Global expansion plans The core of Nu Bank's business is in Brazil today, where most adults use one of its digital banking products. With increased revenue per customer, the company should see steady growth in its domestic market in the years ahead, with significant profitability.

Where growth will come from is Mexico, Colombia, the U.S,, and potentially other Latin American nations the bank decides to enter. Mexico is its second-largest market in Latin America, with 15 million active customers and nearly $1 billion in annual revenue. Compared to more than $10 billion in revenue from Brazil, there is still a long runway for Nu Bank to expand its bank, credit card, and lending business in Mexico to build it up to the same size as Brazil, which has a similar-sized economy.

Colombia is a smaller market, but it can still drive growth in the years ahead with rapid customer adoption underway. The long-term growth may come from the U.S., where Nu Bank believes it can bring its digital banking product for lower-income customers from Latin America to serve a sub-section of the population in the world's largest economy. After this, it is likely to enter new Latin American markets such as Chile, Argentina, or Peru.

Total revenue was $16 billion during the last 12 months. If Nu Bank can successfully penetrate most of these large markets in North and South America, its revenue will grow into the tens of billions during the next five years.

Image source: Getty Images.

Profit inflection that is only growing Earnings should grow even faster than revenue, illustrated by Nu Bank's improving efficiency ratio during the past few years. An efficiency ratio measures overhead costs versus total interest income and fee revenue. The lower the percent, the more efficiently your bank is run.

Nu Bank's efficiency ratio hit a record low of 17.6% last quarter, which is why net income has grown faster than revenue during the past few years. Total net income has increased 4,000% during the past three years to $3.2 billion, far outpacing the 216% revenue growth.

This means that if Nu Bank's revenue doubles during the next five years, its net income could more than triple to $10 billion, making it one of the most profitable banks in the world.

NU Net Income (TTM) data by YCharts

Returning cash to shareholders Despite this profit inflection, Nu Bank stock has sunk in 2026. Management is going to take advantage of this dislocation through its recently announced $1 billion share repurchase program to reduce shares outstanding and increase earnings per share (EPS).

There may be volatility ahead for Nu Bank due to its ties to Latin American economies, which are historically less stable than the U.S. Of course, there are always risks when making loans to low-income individuals, which powers much of Nu Bank's interest income.

Still, over the long term, Nu Bank has proven it can build a profitable digital bank in Brazil, Mexico, and now in other countries. Net income of $3.2 billion today may grow to $10 billion five years from now if it can keep this superb efficiency ratio. Compared to a market cap of $59 billion, this looks like a low price for investors with the patience to hold for five years or more, meaning the stock should be a multibagger in the years ahead.

Hinge Health (NYSE:HNGE – Get Free Report) and 10x Genomics (NASDAQ:TXG – Get Free Report) are both mid-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability This table compares Hinge Health and 10x Genomics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Hinge Health N/A N/A N/A 10x Genomics -6.77% -6.89% -5.34% Analyst Ratings This is a breakdown of recent ratings and target prices for Hinge Health and 10x Genomics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Hinge Health 1 1 16 1 2.89 10x Genomics 2 10 5 0 2.18 Hinge Health currently has a consensus price target of $56.73, indicating a potential upside of 36.71%. 10x Genomics has a consensus price target of $19.46, indicating a potential downside of 23.22%. Given Hinge Health’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hinge Health is more favorable than 10x Genomics.

Earnings & Valuation This table compares Hinge Health and 10x Genomics”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Hinge Health $587.86 million 5.56 -$528.26 million ($12.81) -3.24 10x Genomics $642.82 million 5.04 -$43.54 million ($0.35) -72.43 10x Genomics has higher revenue and earnings than Hinge Health. 10x Genomics is trading at a lower price-to-earnings ratio than Hinge Health, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership 84.7% of 10x Genomics shares are owned by institutional investors. 9.4% of 10x Genomics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary Hinge Health beats 10x Genomics on 9 of the 14 factors compared between the two stocks.

About Hinge Health (Get Free Report)

Our vision is to build a new health system that transforms outcomes, experience and costs by using technology to scale and automate the delivery of care. Hinge Health leverages software, including AI, to largely automate care for joint and muscle health, delivering an outstanding member experience, improved member outcomes, and cost reductions for our clients. We have designed our platform to address a broad spectrum of MSK care—from acute injury, to chronic pain, to post-surgical rehabilitation. Members receive personalized and largely automated MSK care through our AI-powered motion tracking technology and a proprietary electrical nerve stimulation wearable device, all designed and monitored by our AI-supported care team of licensed physical therapists, physicians, and board-certified health coaches. Our platform can improve pain and function and reduce the need for surgeries, all while driving health equity by allowing members to engage in their exercise therapy sessions from anywhere and embrace movement as a way of life. There is no shortage of new technologies in the healthcare industry, yet the cost of care continues to rise. In other industries, the launch of new technologies has generally improved end-user experiences and lowered costs. In healthcare, however, new technologies have not always been successful in lowering the cost of care or improving clinical outcomes. We believe there are two key reasons for healthcare’s idiosyncratic response to technology: • Automating most aspects of care is difficult because so many healthcare interventions involve unstructured physical tasks. • The current framework for healthcare reimbursement has specific pathways to pay for care, which means new technologies are constrained to deliver within this framework. At Hinge Health, we have taken these challenges head-on. To address the automation of care, we have weaved together AI-enabled capabilities – such as our AI-powered motion tracking technology, TrueMotion, our proprietary FDA-cleared wearable device, Enso, and our AI-supported care team – to deliver scalable and personalized MSK care. According to our estimates based on data from 2024, our platform reduced the number of human care team hours associated with traditional physical therapy by approximately 95%. We have done this while improving our high member satisfaction over time. To address healthcare reimbursement constraints, we developed novel billing methods for our innovative technology by both directly selling to employers while also partnering with health plans, pharmacy benefit managers (“PBMs”), third-party administrators (“TPAs”), and other ecosystem entities to efficiently provide our platform to clients and members. While the MSK market is massive, existing solutions have fallen short as they are often expensive, ineffective, inconvenient to access, and delivered in a one-to-one or few-to-one care setting. Effective MSK care should be engaging, easy to use, and accessible anytime, anywhere. We developed Hinge Health to be simple and accessible, complete, personalized, and scalable. • Simple and accessible: We provide members access to our platform at no direct cost to them and without a copay or deductible. Members can access our broad spectrum of MSK care through a single on-demand app, designed to provide an engaging, seamless, and convenient digital experience whenever and wherever the member chooses. Potential members can complete a simple intake form, download the app, and start exercises soon thereafter. During the year ended December 31, 2024, approximately 64% of members were onboarded on the same day they completed their intake form, and approximately 75% of members were onboarded within the first week. • Complete: Our platform offers a wide range of support with multiple programs across many affected areas to provide a continuum of care from prevention to treatment of acute injury and chronic pain, as well as surgery decision support and post-surgical recovery. We also offer non-addictive and non-invasive pain relief via electrostimulation through our proprietary FDA-cleared wearable device, Enso, that is seamlessly integrated into our platform. • Personalized: Our platform delivers smarter care through AI and machine learning. Our AI model is trained on a large, proprietary MSK data set, and our technology is continuously learning and improving as each new member enrolls and engages with our programs, which creates a positive feedback loop. As of March 31, 2025, we had treated over one million members and our programs had tracked over 74 million activity sessions and 32 million member-reported outcome logs. We focus on personalization to keep members moving: from customized care plans to real-time in-app exercise feedback based on the member’s input and our proprietary motion tracking technology. • Scalable: Our AI-powered motion tracking technology, TrueMotion, allows us to deliver scalable and largely automated care. According to our estimates based on data from 2024, our platform reduced the number of human care team hours associated with traditional physical therapy by approximately 95%. While most of our programs provide members with access to a dedicated care team, our technology automates most aspects of care delivery while allowing our members to progress through their exercise therapy sessions on their own time. We have developed an efficient go-to-market model by working directly with our partners and clients. We seek to be the best solution on the market, the most validated solution on the market, and the easiest to buy. Our clients are primarily self-insured employers and include many of the nation’s leading enterprises across a broad range of industries and sizes. Within this segment, we also serve many public sector self-insured employers, such as state and local city governments and labor unions. In most instances, we partner with clients’ health plans, TPAs, PBMs, or other ecosystem entities to reduce the friction of contracting, procurement, security and IT reviews, onboarding, and billing. We are also in the early stages of expanding to serve health plans’ fully-insured and Medicare Advantage populations and federal insurance plans. As of December 31, 2024, we had approximately 20 million contracted lives across more than 2,250 clients. We had active client agreements with 49% of the Fortune 100 companies and 42% of the Fortune 500 companies, as of December 31, 2024. Despite this progress, our current contracted lives only represent 5% of our total addressable market. We believe that we grow efficiently because of our scalable, repeatable go-to-market model. We sell through our direct sales force and our partners. Once we contract with a client, we are most often the sole digital MSK care provider offered to their contracted lives. Our average contract term is three years. For the term of each contract, we are able to enroll, engage, and re-engage the client’s eligible lives, driving a recurring, repeatable revenue model, which is demonstrated in our net dollar retention of 117% as of December 31, 2024. Our 12-month client retention rate was 98% as of December 31, 2024. Additionally, we have a high level of client satisfaction, as shown by our client net promoter score (“NPS”) of 87 as of October 31, 2024. We also invested early in building our partner network. As of March 31, 2025, we had over 50 partners. Our partners include the five largest national health plans by self-insured lives, and the top three PBMs by market share. As of that date, we had retained 100% of our partners that we chose to work with since inception, excluding partners who were acquired. We have experienced significant growth since our inception, with a recurring revenue business model. As of December 31, 2024, we had over 532,000 members and more than 2,250 clients, compared to approximately 371,000 members and approximately 1,650 clients as of December 31, 2023. Our principal executive offices are located in San Francisco, California.

About 10x Genomics (Get Free Report)

10x Genomics, Inc., a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in the America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium, chromium connect, and chromium controller instruments, microfluidic chips, slides, reagents, and other consumables products. Its single cell solutions runs on its chromium instruments, which include single cell gene expression for measuring gene activity and networks on a cell-by-cell basis; single cell gene expression flex; single cell immune profiling used to study the immune system; single cell Assay for Transposase Accessible Chromati (ATAC) solution to understand the epigenetic state; and single cell multiome ATAC + gene expression which enables simultaneous interrogation of both the RNA and chromatin accessibility, using ATAC in a single cell. The company also provides Visium platform which enables researchers to understand the spatial positions of biological analytes within tissues at high resolution; and Xenium platform for in situ analysis. It serves various academic, government, biopharmaceutical, biotechnology, and other institutions. The company was formerly known as 10X Technologies, Inc. and changed its name to 10x Genomics, Inc. in November 2014. 10x Genomics, Inc. was incorporated in 2012 and is headquartered in Pleasanton, California.

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Key Takeaways 10x Genomics unveiled Atera, a spatial biology platform for whole-transcriptome analysis at scale.Atera removes tradeoffs in scale, sensitivity and coverage, boosting appeal in research and drug discovery.Early adoption and partnerships signal demand, supporting TXG's growth in spatial biology markets. 10x Genomics (TXG - Free Report) recently unveiled Atera, a next-generation in situ spatial biology platform designed to deliver whole-transcriptome analysis with single-cell sensitivity at scale. Unveiled at the American Association for Cancer Research Annual Meeting 2026, the launch highlights TXG’s continued push to advance how researchers study complex biological systems within intact tissue environments.

The new platform aims to overcome long-standing tradeoffs in spatial biology, positioning TXG to tap into growing demand across translational research and drug discovery. Early adoption by leading research institutions and service providers signals strong interest, reinforcing the company’s innovation-driven growth narrative and long-term opportunity in high-throughput spatial analysis.

Likely Trend of TXG Stock Following the NewsShares of TXG have gained 3.3% since the announcement of the launch. In the year-to-date period, shares of the company gained 59.9% against the industry’s 19.1% decline.  The S&P 500 increased 4.2% in the same time frame.

The Atera launch can meaningfully strengthen 10x Genomics’ long-term business by expanding its total addressable market and deepening its moat in spatial biology. By eliminating tradeoffs between scale, sensitivity and gene coverage, Atera positions TXG as a go-to platform for large-scale, high-resolution studies, attracting biopharma, academic and clinical customers. This should drive higher instrument placements, recurring consumables revenue and growing adoption of its cloud-based analysis ecosystem. Over time, stronger integration into drug discovery workflows and large consortium projects could enhance visibility, create sticky customer relationships and support durable revenue growth.

TXG currently has a market capitalization of $3.33 billion.

Image Source: Zacks Investment Research

More on the NewsFrom a technology and infrastructure standpoint, Atera reflects a ground-up redesign of spatial analysis, integrating advances across chemistry, hardware and software to remove longstanding limitations. To complement the platform, TXG is introducing a new cloud-based analysis solution that enables secure data storage, visualization and GPU-accelerated processing, significantly reducing time from raw data to insight.

Researchers can maintain full control over workflows through flexible deployment options, including cloud and on-premise environments. Additionally, the company has launched Catalyst Research Services, allowing customers to directly submit samples for analysis, with flexible access models aimed at broadening adoption as Atera moves into commercial availability.

The platform also builds on 10x Genomics existing spatial biology ecosystem, particularly its Xenium solution, while expanding into large-scale data-driven applications. Bioptimus, a France-based AI biotech company, has partnered with 10x Genomics to develop one of the world’s largest spatial datasets under the STELA initiative to power its M-Optimus platform. The program will initially utilize Xenium, with plans to transition to Atera in 2027 as throughput scales. Management emphasized that Atera’s integrated system design significantly expands the scope of biological questions that can be addressed, positioning it as a key enabler of next-generation research and AI-driven drug discovery.

Adoption momentum is already taking shape among global service providers. Macrogen, along with its U.S. subsidiary Psomagen, has committed to deploying multiple Atera systems, becoming the first global service provider to adopt the platform. This investment reflects increasing demand for high-throughput, uncompromised spatial analysis in biopharma and translational research, positioning Macrogen to support large-scale programs and reinforcing early commercial traction for Atera.

Favorable Industry Prospect for TXGPer a report by Custom Market Insights, the global spatial biology market size is estimated at $1.48 billion in 2026 and is anticipated to reach $7.24 billion by 2035, expanding at a CAGR of 19.2% from 2026 to 2035.

Growth in spatial biology is driven by the rising demand for single-cell and tissue-level insights to better understand complex diseases like cancer. Expanding use in drug discovery, precision medicine and AI-driven research, along with advances in high-throughput sequencing technologies, is accelerating market adoption.

A Recent Development by TXGIn February, 10x Genomics announced that the PharosAI consortium, comprising four leading UK institutions, will leverage its Xenium platform to build one of the world’s most comprehensive multimodal cancer datasets. It will be backed by 18.9 million Euros in UK government funding, along with support from charities and industry partners, to power AI-driven models aimed at enabling earlier diagnosis, precision therapies and faster drug discovery.

TXG’s Zacks Rank & Other Key PicksCurrently, TXG sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , GE HealthCare Technologies (GEHC - Free Report) and Cardinal Health (CAH - Free Report) .

Phibro Animal Health, currently sporting a Zacks Rank #1, reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of 87 cents, which surpassed the Zacks Consensus Estimate by 27.1%. Revenues of $373.9 million beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12% rise. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 20.1%.

GE HealthCare Technologies, currently carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2025 adjusted EPS of $1.44, which surpassed the Zacks Consensus Estimate by 0.7%. Revenues of $5.7 billion beat the Zacks Consensus Estimate by 1.9%.

GEHC has an estimated long-term earnings growth rate of 9.1% compared with the industry’s 12% rise. The company beat earnings estimates in the trailing four quarters, the average surprise being 7.5%.

Cardinal Health, currently carrying a Zacks Rank #2, reported a second-quarter fiscal 2026 adjusted EPS of $2.63, which surpassed the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion beat the Zacks Consensus Estimate by 0.9%.

CAH has an estimated long-term earnings growth rate of 15% compared with the industry’s 9.3% rise. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 9.3%.

, /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, announced today that members of its management team will participate in a fireside chat at the BofA Securities 2026 Healthcare Conference on Wednesday, May 13, at 5:00 p.m. Pacific Time.

Interested parties may access a live webcast of the fireside chat on the "Investors" section of the company's website at: https://investors.10xgenomics.com/. The webcast will be archived and available for replay for at least 30 days after the event.

About 10x Genomics

10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated research solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world's understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn, X, Facebook, Bluesky or YouTube.

Disclosure Information

10x Genomics uses filings with the Securities and Exchange Commission, our website (www.10xgenomics.com), press releases, public conference calls, public webcasts and our social media accounts as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.

Contacts

Investors: [email protected]

Media: [email protected]

SOURCE 10x Genomics, Inc.

, /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the first quarter ended March 31, 2026.

Recent Updates

Revenue was $150.8 million for the first quarter of 2026, representing a 3% decrease over the corresponding period of 2025. Excluding $16.8 million related to one-time license and royalty revenue in the first quarter of 2025, revenue increased 9% over the corresponding period of 2025. Launched Atera, a new platform to redefine how biology is measured and understood. Atera was engineered to deliver spatial whole-transcriptome analysis with single-cell sensitivity at unprecedented scale. The Company expects to start shipping Atera in the second half of 2026. Announced a partnership with Bioptimus, a global AI biotech company, to launch STELA, a multinational spatial data generation initiative to create foundational datasets connecting underlying biology with disease outcomes. The initiative is starting this effort on our Xenium platform and plans to expand to Atera over time. Ended the first quarter of 2026 with cash and cash equivalents and marketable securities of $539.8 million, representing a $112.9 million increase from March 31, 2025. "We had a solid start to the year, with double-digit growth in Single Cell consumables reaction volumes and double-digit growth in Spatial consumables revenue," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "The biggest highlight is our recent launch of Atera, which represents the most significant product introduction in our history. We are extremely encouraged by the extraordinary early customer response."

First Quarter 2026 Financial Results

Revenue was $150.8 million for the first quarter of 2026, a 3% decrease from the corresponding period of 2025. Excluding $16.8 million related to a patent litigation settlement recognized in the first quarter of 2025, revenue increased 9% over the corresponding period of 2025.

Gross margin was 70% for the first quarter of 2026, as compared to 68% for the corresponding prior year period. The increase in gross margin was primarily due to lower warranty costs and lower inventory write-downs, partially offset by a decrease in license and royalty revenue reflecting a non-recurring royalty benefit recognized in the first quarter of 2025.

Operating expenses were $123.2 million for the first quarter of 2026, a 15% decrease from $144.8 million for the corresponding prior year period. The decrease was primarily driven by lower outside legal expenses and personnel expenses, partially offset by a non-recurring gain on settlement of $9.2 million recognized in the first quarter of 2025.

Operating loss was $17.0 million for the first quarter of 2026, as compared to operating loss of $39.3 million for the corresponding prior year period.

Net loss was $13.5 million for the first quarter of 2026, as compared to a net loss of $34.4 million for the corresponding prior year period.

Cash and cash equivalents and marketable securities were $539.8 million as of March 31, 2026.

2026 Financial Guidance 

10x Genomics is maintaining its full year 2026 revenue guidance of $600 million to $625 million. Excluding the non-recurring license and royalty revenue related to patent litigation settlements in 2025, this represents 0% to 4% growth over full year 2025.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the first quarter 2026 financial results, business developments and outlook after market close on Thursday, May 7, 2026 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at http://investors.10xgenomics.com. The webcast will be archived and available for replay at least 45 days after the event.

About 10x Genomics

10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated research solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world's understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn, X, Facebook, Bluesky or YouTube.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "expect," "plan," "outlook," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "see," "estimate," "predict," "potential," "would," "likely," "seek" or "continue" or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.'s products, services, business strategy, collaborations and opportunities and 10x Genomics, Inc.'s financial performance and results of operations, including expectations regarding revenue and guidance. These statements are based on management's current expectations, forecasts, beliefs, estimates, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such statements should not be relied upon as representing 10x Genomics, Inc.'s views as of any date subsequent to the date of this press release. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in 10x Genomics' expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material risks and uncertainties that could affect 10x Genomics, Inc.'s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recently-filed 10-K for the fiscal year ended December 31, 2025 filed on February 12, 2026 and the company's quarterly report on Form 10-Q for the quarter ended March 31, 2026 to be filed with the U.S. Securities and Exchange Commission ("SEC"), and elsewhere in the documents 10x Genomics, Inc. files with the SEC from time to time.

Disclosure Information

10x Genomics uses filings with the Securities and Exchange Commission, its website (www.10xgenomics.com), press releases, public conference calls, public webcasts and its social media accounts as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Contacts

Investors: [email protected]

Media: [email protected]

10x Genomics, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended
March 31,

2026

2025

Products and services revenue

$      149,896

$      137,823

License and royalty revenue

947

17,060

Revenue (1)

150,843

154,883

Cost of products and services revenue (2)

44,665

49,438

Gross profit

106,178

105,445

Operating expenses:

Research and development (2)

56,847

64,245

Selling, general and administrative (2)

66,377

89,728

Gain on settlement

—

(9,200)

Total operating expenses

123,224

144,773

Loss from operations

(17,046)

(39,328)

Other income (expense):

Interest income

5,014

3,686

Other income (expense), net

(815)

2,136

Total other income

4,199

5,822

Loss before provision for income taxes

(12,847)

(33,506)

Provision for income taxes

623

852

Net loss

$      (13,470)

$      (34,358)

Net loss per share, basic and diluted

$         (0.10)

$         (0.28)

Weighted-average shares used to compute net loss per share, basic and diluted

128,291,153

122,606,091

__________________________

(1)

The following table represents total revenue by source for the periods indicated (in thousands). Spatial includes the Company's Visium and Xenium products:

Three Months Ended
March 31,

2026

2025

Instruments

Single Cell

$         5,223

$         5,913

Spatial

6,039

8,902

Total instruments revenue

11,262

14,815

Consumables

Single Cell

88,894

84,109

Spatial

40,907

31,247

Total consumables revenue

129,801

115,356

Services

8,833

7,652

Products and services revenue

149,896

137,823

License and royalty revenue

947

17,060

Total revenue

$      150,843

$      154,883

(1)

The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):

Three Months Ended
March 31,

2026

2025

Americas

United States*

$       76,693

$       86,818

Americas (excluding United States)

3,406

3,752

Total Americas

80,099

90,570

Europe, Middle East and Africa

36,852

31,895

Asia-Pacific

China

15,837

16,883

Asia-Pacific (excluding China)

18,055

15,535

Total Asia-Pacific

33,892

32,418

Total revenue

$      150,843

$      154,883

*

Includes license and royalty revenue.

(2)

Includes stock-based compensation expense as follows:

Three Months Ended
March 31,

(in thousands)

2026

2025

Cost of revenue

$         1,918

$         2,481

Research and development

10,695

14,106

Selling, general and administrative

10,029

14,489

Total stock-based compensation expense

$       22,642

$       31,076

10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

March 31,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$      490,285

$      473,966

Marketable securities

49,563

49,443

Accounts receivable, net

39,031

47,013

Other receivables

17,106

35,480

Inventory

53,487

56,341

Prepaid expenses and other current assets

20,261

22,208

Total current assets

669,733

684,451

Property and equipment, net

220,591

226,711

Operating lease right-of-use assets

58,390

60,450

Goodwill

4,511

4,511

Intangible assets, net

59,910

62,329

Other noncurrent assets

2,624

2,913

Total assets

$    1,015,759

$    1,041,365

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

$       17,425

$       12,733

Accrued compensation and related benefits

21,506

42,500

Accrued expenses and other current liabilities

33,680

39,971

Deferred revenue

24,342

23,902

Operating lease liabilities

11,330

10,985

Contingent consideration, current

5,315

23,363

Total current liabilities

113,598

153,454

Contingent consideration, noncurrent

1,222

1,237

Operating lease liabilities, noncurrent

70,059

73,376

Deferred revenue, noncurrent

10,138

10,501

Other noncurrent liabilities

6,418

6,471

Total liabilities

201,435

245,039

Commitments and contingencies

Stockholders' equity:

Preferred stock

—

—

Common stock

2

2

Additional paid-in capital

2,338,269

2,306,690

Accumulated deficit

(1,524,061)

(1,510,591)

Accumulated other comprehensive income

114

225

Total stockholders' equity

814,324

796,326

Total liabilities and stockholders' equity

$    1,015,759

$    1,041,365

SOURCE 10x Genomics, Inc.

10x Genomics (TXG - Free Report) came out with a quarterly loss of $0.1 per share versus the Zacks Consensus Estimate of a loss of $0.29. This compares to a loss of $0.36 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +65.52%. A quarter ago, it was expected that this life science technology company would post a loss of $0.19 per share when it actually produced a loss of $0.13, delivering a surprise of +31.58%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

10x Genomics, which belongs to the Zacks Medical Info Systems industry, posted revenues of $150.84 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.57%. This compares to year-ago revenues of $154.88 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

10x Genomics shares have added about 39.4% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for 10x Genomics?While 10x Genomics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for 10x Genomics was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.21 on $147.9 million in revenues for the coming quarter and -$0.82 on $611.56 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Info Systems is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Lucid Diagnostics Inc. (LUCD - Free Report) , another stock in the broader Zacks Medical sector, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 15.

This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +68.8%. The consensus EPS estimate for the quarter has been revised 14.3% higher over the last 30 days to the current level.

Lucid Diagnostics Inc.'s revenues are expected to be $1.4 million, up 68.7% from the year-ago quarter.

Key Takeaways TXG beat Q1 estimates with a narrower loss and revenue growth excluding prior-year one-time items.10x Genomics grew consumables revenue 12.5% and expanded gross margin by 220 basis points.TXG maintained 2026 revenue guidance of $600M-$625M and ended Q1 with no debt. 10x Genomics (TXG - Free Report) delivered a loss per share of 10 cents in first-quarter 2026, narrower than the year-earlier loss per share of 36 cents. The figure surpassed the Zacks Consensus Estimate by 65.5%.

TXG's RevenuesTXG registered revenues of $150.8 million in the first quarter of 2026, which decreased about 2.6% year over year. Excluding $16.8 million related to one-time license and royalty revenue in the first quarter of 2025, revenues increased 9% year over year.  However, the figure surpassed the Zacks Consensus Estimate by 3.57%.

TXG’s Business Units in DetailThe company reports revenue under two primary segments: Products and Services and License and royalty revenue. 

Products and Services revenue totaled $149.9 million, up approximately 8.8% year over year. Within this segment, Total instruments revenues totaled $11.3 million, down 23.9% year over year. In contrast, Total consumables revenues were $129.8 million, representing a 12.5% year-over-year increase.

Services revenue totaled $8.8 million, up 15.4% year over year.

Meanwhile, License and royalty revenue was $0.9 million compared with $17.1 million in the prior-year quarter, which included $16.8 million related to one-time license and royalty revenue.

TXG's Geographical DistributionGeographically, 10x Genomics derives revenues from three major regions: the Americas, Europe, the Middle East and Africa (EMEA), and Asia-Pacific. 

In the first quarter of 2026, Total Americas’ revenues were $80.1 million, reflecting a 11.6% year-over-year decline.

EMEA revenues totaled $36.9 million, up approximately 15.5% year over year.

Meanwhile, Total Asia-Pacific revenues were $33.9 million, representing 4.4% year-over-year growth.

TXG's Margin TrendIn the quarter under review, TXG’s gross profit improved 0.7% year over year to $106.2 million. The gross margin expanded 220 basis points (bps) to 70.3%.

Selling, general and administrative expenses fell 26% year over year to $66.4 million. Research and development expenses declined 11.5% year over year to $56.8 million. Total operating expenses of $123.2 million decreased 14.9% year over year.

Total operating loss was $17 million, reflecting an improvement from the prior-year loss of $39.3 million.

TXG’s Financial PositionTXG exited the first quarter of 2026 with cash, cash equivalents and marketable securities of $539.8 million, up from $523.4 million at the end of the fourth quarter of 2025. Importantly, the company ended the quarter with no debt on its balance sheet, underscoring a solid solvency position.

TXG’s 2026 Guidance10x Genomics has maintained its revenue outlook for 2026.

10x Genomics expects 2026 revenues to be in the range of $600 million to $625 million. Excluding the non-recurring license and royalty revenue related to patent litigation settlements in 2026, this represents 0% to 4% growth over 2026.

Our Take10x Genomics exited the first quarter of 2026 with better-than-expected results, wherein both earnings and revenues beat the Zacks Consensus Estimate. While reported revenues declined year over year due to the absence of prior-year one-time license and royalty revenues, underlying business trends remained healthy, with Products and Services revenues rising on continued strength in consumables demand and higher services revenues. Growth across the EMEA and Asia-Pacific regions, expanding gross margin and disciplined cost controls were encouraging. The company also reported a significantly narrower operating loss year over year, supported by lower operating expenses and improving operating leverage.

During the quarter, 10x Genomics continued advancing its spatial biology and single-cell analysis portfolio through strategic innovation initiatives. The launch of Atera, its next-generation spatial whole-transcriptome platform designed to deliver single-cell sensitivity at unprecedented scale, marked a major technology milestone and is expected to support future growth following commercialization in the second half of 2026.

The company also partnered with Bioptimus to launch the STELA initiative, aimed at building foundational spatial datasets linking biology with disease outcomes using the Xenium platform, with planned expansion to Atera over time. Complementing these initiatives, TXG maintained a strong balance sheet with more than $539 million in cash and no debt, providing financial flexibility to support ongoing innovation and commercialization efforts.

TXG’s Zacks Rank and Stocks to ConsiderTXG currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space that are expected to report earnings soon are DexCom, Inc. (DXCM - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Cooper Companies, Inc. (COO - Free Report) .

The Zacks Consensus Estimate for DexCom’s first-quarter 2026 adjusted earnings per share (EPS) is currently pegged at 47 cents. The consensus estimate for revenues is pegged at $1.18 billion. DXCM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DexCom has an estimated long-term growth rate of 20.6%. DXCM’s earnings yield of 4.1% compares favorably with the industry’s negative yield.

Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion.

Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.

Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.

Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.

Torex Gold Resources Inc. (TXG:CA) Q1 2026 Earnings Call Transcript

10x Genomics, Inc. (TXG) Presents at Bank of America Global Healthcare Conference 2026 Transcript

10x Genomics, Inc. (TXG) Shareholder/Analyst Call Prepared Remarks Transcript

Key Takeaways 10x Genomics acquires Proteintech Genomics to expand proteomics and multiomics capabilities.TXG gains 4.8% after the deal, which adds protein-analysis tools compatible with Flex workflows.Proteintech technologies support combined RNA and protein analysis across single-cell platforms. 10x Genomics (TXG - Free Report) recently announced the acquisition of Proteintech Genomics, a division within Proteintech Group that develops high-plex proteomic solutions for single-cell and spatial biology applications. The move expands TXG's capabilities in proteomics and supports its broader strategy of advancing multiomics research through integrated RNA and protein analysis.

Proteintech Genomics brings technologies, including the Human Discovery Panel, an antibody-based single-cell protein panel compatible with 10x Genomics' Flex chemistry workflows. Management believes the acquisition will strengthen its single-cell and spatial biology platforms, while the company expects the transaction to have no meaningful impact on its near-term financial outlook.

Likely Trend of TXG Stock Following the NewsShares of TXG have gained 4.8% since the announcement in yesterday’s trading. In the year-to-date period, shares of the company have gained 87.6% against the industry’s 20.5% decline.  The S&P 500 increased 8.4% in the same time frame.

The acquisition is expected to strengthen TXG's long-term growth prospects by expanding its presence in the rapidly evolving proteomics market and enhancing its multiomics capabilities. By integrating Proteintech Genomics' protein-analysis technologies with its existing single-cell and spatial platforms, TXG can offer researchers a more comprehensive view of cellular biology through combined RNA and protein measurements. The deal also has the potential to increase customer adoption, drive higher consumables usage and improve platform stickiness, while positioning the company to capitalize on emerging opportunities in AI-driven biological modeling and next-generation life sciences research.

TXG currently has a market capitalization of $3.7 billion.

Image Source: Zacks Investment Research

More on the NewsThe acquisition significantly broadens 10x Genomics' proteomics portfolio by adding Proteintech Genomics' differentiated technologies, including the Human Discovery Panel, which the company describes as the largest antibody-based single-cell protein panel.

The panel is designed to support integrated analysis of intracellular proteins, cell-surface proteins and transcriptomic profiles within sequencing-compatible workflows. Importantly, the technology is already compatible with 10x Genomics' Flex chemistry, including the Flex Apex assay, enabling researchers to combine RNA and protein measurements within a unified workflow. Management believes that integrating transcriptomic and proteomic information at the single-cell and spatial levels will play an increasingly important role in advancing biological research and discovery.

The transaction also aligns with 10x Genomics' broader strategy of enabling multimodal biological analysis across its single-cell and spatial platforms. Proteintech Genomics' protein panels were purpose-built for 10x workflows and are already being used by researchers to simultaneously analyze RNA and protein expression. By bringing these capabilities in-house, TXG aims to simplify workflows that currently require multiple vendors and technologies to harmonize RNA and protein data.

The company also sees opportunities to extend these protein-analysis capabilities to its recently launched Atera platform. Researchers across fields such as immunology, oncology, neuroscience and cell biology are increasingly adopting combined transcriptomic and proteomic approaches to gain deeper insights into cellular identity, function and disease mechanisms, making the acquisition a strategic addition to TXG's long-term innovation roadmap.

Favorable Industry Prospect for TXGPer a report by Grand View Research, the global proteomics market size was valued at $38.4 billion in 2025 and is projected to grow beyond $97.7 billion by 2033, at a CAGR of 13.3%.

The market is witnessing significant growth driven by the rising prevalence of chronic and infectious diseases, growing preference for personalized medicine and the increasing demand for rapid & advanced diagnostic solutions in target disease treatment.

Recent Developments by TXGRecently, 10x Genomics exited the first quarter of 2026 on a solid note, with both earnings and revenues surpassing the Zacks Consensus Estimate. While total revenues declined year over year due to the absence of prior-year one-time license and royalty revenues, underlying business performance remained healthy, driven by higher consumables demand, increased services revenues, growth across the EMEA and Asia-Pacific regions, expanding gross margin and disciplined cost management.

The company also significantly narrowed its operating loss year over year. During the quarter, TXG strengthened its innovation pipeline with the launch of Atera, a next-generation spatial whole-transcriptome platform that offers single-cell sensitivity at scale and is expected to support growth following its planned commercialization in the second half of 2026.

TXG’s Zacks Rank & Key PicksCurrently, TXG carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .

Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

BELLEVUE, Wash.--(BUSINESS WIRE)--Savers Value Village, Inc. (the “Company”) today announced that it plans to report its first quarter financial results on May 6, 2026 after market close. On the same day, the Company will host a conference call at 4:30 p.m. ET to discuss its financial results. Investors and analysts who wish to participate in the call are invited to dial +1 800 715 9871 (international callers, please dial +1 646 307 1963) approximately 10 minutes prior to the start of the call.

Savers Value Village (SVV - Free Report) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +14.29%. A quarter ago, it was expected that this retailer of second-hand merchandise would post earnings of $0.16 per share when it actually produced earnings of $0.15, delivering a surprise of -6.25%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Savers Value, which belongs to the Zacks Textile - Apparel industry, posted revenues of $403.2 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.76%. This compares to year-ago revenues of $370.14 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Savers Value shares have lost about 9.6% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Savers Value?While Savers Value has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Savers Value was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $450.72 million in revenues for the coming quarter and $0.48 on $1.77 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, V.F. (VFC - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 20.

This maker of brands such as Vans, North Face and Timberland is expected to post quarterly earnings of $0.00 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

V.F.'s revenues are expected to be $2.13 billion, down 0.7% from the year-ago quarter.

Savers Value Village, Inc. (SVV) Q1 2026 Earnings Call Transcript

Savers Value Village demonstrates strong revenue and cash flow growth, yet trades at a deep discount despite a 31.3% stock price decline. SVV's 2026 outlook includes 25 new store openings, 2.5%–4% comp sales growth, and revenue guidance of $1.76–$1.79 billion. Valuation remains compelling with low to mid single-digit multiples on adjusted operating cash flow and EV/EBITDA.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #SMB--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, and GoDaddy (NYSE: GDDY), global leader in domains and tech for small businesses, today announced a strategic partnership, making LegalZoom the sole legal services provider in the GoDaddy ecosystem. This collaboration underscores both companies' shared mission of empowering small businesses with the tools, technology, and professional support they need to grow and succeed. As part of this.

SHERIDAN, Wyo., April 21, 2026 (GLOBE NEWSWIRE) -- Registered Agents Inc (RAI), the largest registered agent and business formation service in the U.S. announced today it is once again increasing its equity position in LegalZoom, acquiring 55,000 additional shares of its publicly-traded competitor. This marks the company’s third purchase of LegalZoom stock, bringing its overall total to 170,000 shares.

The move reflects RAI’s conviction that LegalZoom has the most brand awareness in the industry and is timed deliberately in the wake of LegalZoom’s widely publicized partnership with GoDaddy.

“While LegalZoom has strong brand recognition in the business formation space, this latest move tells us the company needs a partner's platform to find new customers," said Regina Blunder, Equity Portfolio Manager at RAI. "Publicly available formation data from multiple jurisdictions, including Georgia, Illinois and New Jersey shows LegalZoom currently has an acceptable market share position. The earnings per share are currently horrible, and their cash on hand is concerning relative to their unearned prepaid income position, but we believe the stock price is so low because LegalZoom is the clear leader in Share of Voice, Sentiment, and Brand Mention Volume, over other business formation specialists like ZenBusiness, Bizee, and Northwest Registered Agent.”

“Our investment reflects confidence in the broader direction of the industry,” said Allen Costly, RAI's Director of Mergers and Acquisitions. “As more Americans turn to entrepreneurship, we know companies that balance trust, accessibility and value will be best positioned to capture the next wave of business formations. Or maybe LegalZoom's stock has taken such a beating lately that they'll be an obvious target for a public to private transaction soon, and we'll luck out and get our money back or at least average out of our losses so far.”

RAI believes LegalZoom's Human in the Loop go-forward strategy could truly innovate with AI forward automation in a meaningful way, despite the discrepancy between the company's cash on hand relative to their unearned income, with their new agentic AI registration partnership with GoDaddy to create a cryptographically verifiable ANS.

"You never know," added Blunder, "maybe GoDaddy will beat OpenAi, Anthropic, Facebook, Google, Microsoft, Salesforce, and Cisco in creating trust for AI Agents, and maybe LegalZoom will explode in tech-enabled agentification with the last mile Human in the Loop customer service that everyone still wants: the perfect hybrid of humans and AI. With LegalZoom’s industry leading share of voice, they are uniquely positioned for AI growth... or an acceptable buy out offer from GoDaddy.”

Registered Agents Inc has no plans to seek a controlling interest in LegalZoom and characterizes its shareholding as a passive market investment.

For additional Q1 formation data, please visit: https://www.registeredagentsinc.com/market-share/.

About Registered Agents Inc
Registered Agents Inc is an independently owned tech enabled business services company and the nation’s largest provider of registered agent services, compliance solutions and full identity services. The company helps hundreds of thousands of entrepreneurs every year start their own business and establish a legitimate, professional presence online and in their communities. Because of its extensive internal data, Registered Agents Inc also releases its monthly Business Formation Report using real-time state-level filings, cross-referenced with U.S. Census data, to offer exclusive insights into how the small business economy is performing.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #ai--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, today extended an open offer of free trademark legal services to Taylor Swift, who last week filed three trademark applications with the U.S. Patent and Trademark Office aimed at protecting her voice and likeness from unauthorized AI-generated content — including two never-before-tested "sound marks" registering the spoken phrases "Hey, it's Taylor Swift" and "Hey, it's Taylor." The filin.

Editor’s Note: I’ve been doing this long enough to know what a structural shift looks like.

It doesn’t announce itself. It doesn’t show up in the headlines. It shows up first in the data —pressure building beneath the surface of stocks that everyone assumes are safe.

Right now, I’m seeing that pressure building inside the business models of some of Wall Street’s most widely held software and AI companies.

The math changed before the narrative did at Enron.

It changed before the narrative did at Lehman. At Silicon Valley Bank. At every major blowup I’ve tracked across four decades of building quantitative models.

The stock charts looked fine. But the numbers underneath told a completely different story.

Right now, my models are picking up that same kind of stress again.

Not in the credit markets. Not in the broader economy. But inside the business models of some of the most widely held software and AI stocks on Wall Street; companies that most investors still think are bulletproof.

Most investors aren’t seeing it yet. The stocks still look fine and the narrative is still bullish. But the underlying dynamics are shifting in a big way.

My colleague Thomas Yeung has been tracking this more carefully than anyone I know. In the essay below, Tom explains what is driving this divergence — specifically, a new class of AI that operates without waiting for instructions, and what that means for the companies most investors still consider untouchable.

He also points you to a free presentation from Eric Fry, who has been studying this transition for months. Eric’s conclusion: this isn’t just volatility. It’s the early innings of a major rotation — one that could separate the next generation of big winners from the companies quietly being left behind.

I’d encourage you to read Tom’s essay carefully, and then watch Eric’s full presentation here.

The window to act is still open. But these windows have a habit of closing faster than anyone expects…

Imagine waking up one morning to find your bank account drained… your phone locked… and your passwords no longer work.

At the same time, systems you rely on every day — payments, communications, even parts of the power grid — start to glitch or go dark.

All this with no warning, no explanation, and no obvious point of entry.

Just chaos.

This is what could happen if hackers armed with AI exploited “zero-day” vulnerabilities: hidden flaws in software that no one knows exist and, therefore, has had zero days to fix.

On April 7, Anthropic released a limited version of Claude Mythos, an AI system so capable that the company immediately restricted access to it.

Mythos uncovered zero-day vulnerabilities in every major operating system, including one that had gone undetected for 27 years.

These hidden weaknesses can be exploited to steal data, seize control of computer systems, cripple critical infrastructure, and more.

Anthropic didn’t program Mythos to do this. The hacking capabilities emerged on their own.

As the company explained: “We did not explicitly train Mythos to have these capabilities. Rather, they emerged as a downstream consequence of general improvements in code, reasoning, and autonomy.”

The reaction at the highest levels was immediate. Federal Reserve Chair Jerome Powell and Treasury Secretary Scott Bessent held a closed-door meeting with top bank CEOs to discuss risks to the global financial system. Shares of major cybersecurity firms fell by double digits.

Most investors missed it entirely. The usual noise — Middle East tensions, gas prices, tariffs — drowned out what may be the single most consequential technological development of our generation.

Because Mythos isn’t just a more powerful chatbot.

It’s a signal that AI has crossed a threshold that I’ve been watching for, and writing about, for months now. We’ve moved from AI as a tool that responds to instructions… to AI that can act, adapt, and solve complex problems entirely on its own.

In my work tracking hypergrowth opportunities across decades of market cycles, shifts like this don’t just change the technology landscape. They reshuffle the entire investment landscape with them.

The companies on the right side of this shift could see the kind of explosive, compounding growth that defined the early cloud winners and the best AI infrastructure plays of the last three years.

The companies on the wrong side may not survive it.

Which side your portfolio is on right now matters more than almost anything else.

This Shift Is Already Underway To understand why Mythos matters, you need to understand what’s been building underneath it.

A new kind of AI that doesn’t just respond to prompts… but can execute complex tasks on its own.

A year ago, a Chinese startup called Manus AI introduced a system that could analyze financial transactions, screen job candidates, and navigate complex digital workflows without step-by-step human input. Retired New York Times writer Craig S. Smith called it a “game-changer.”

That forced every major Western AI company to respond. Within months, OpenAI and Anthropic released similar systems capable of handling multistep tasks, managing workflows, and making decisions with minimal oversight.

Then last November came OpenClaw, a free, open-source platform that exploded to 30 million monthly users. At Nvidia Corp.’s (NVDA) GTC conference, CEO Jensen Huang called it “probably the single most important release of software… probably ever.”

These aren’t chatbots. They’re digital workers – handling emails, moving files, managing information, writing code, reviewing contracts… and doing it around the clock without asking for a raise.

I’ve seen this firsthand. With Claude Code, I can now give an AI assistant raw financial data and ask it to build a quantitative model. It runs off by itself to write thousands of lines of code. Then it tests the model… critiques it… asks for more data… and suggests improvements. It’s no longer a robotic mecha-suit that needs a human pilot. It’s the whole machine, replacing entire teams of analysts and coders.

And if I can do that as one analyst, imagine what Anthropic’s 1,500-person engineering team came up with when they used these tools for themselves…

So even if Mythos isn’t the endpoint, it’s a clear step-change in what these systems can do. New generations of AI models typically appear six to 12 months after a major launch, and I wouldn’t be surprised if a “Mythos V2” arrives by December.

Why Your “Safe” AI Stocks May Be the Most Exposed Here’s where things get uncomfortable.

The same technology behind Mythos is now dismantling the business models behind some of Wall Street’s most popular stocks.

On Feb. 4, Anthropic released a legal plug-in for Claude Cowork. The effect on Wall Street was immediate.

Shares of Thomson Reuters Corp. (TRI) gapped down 19%. LexisNexis parent RELX Plc (RELX) dropped 15%. LegalZoom.com Inc. (LZ) crashed 20%. Wall Street has been calling this the “SaaSpocalypse,” a rolling collapse in software-as-a-service (SaaS) stocks that has now spread far beyond legal tech.

Will AI replace customer service platforms?

Real estate brokerages?

Financial services?

Business automation?

That fear isn’t misplaced. For 15 years, the SaaS profit machine worked like this: Build a dashboard, connect it to a database, charge companies $30 to $100 per month per employee to use it. The more workers a client hired, the more money software companies made. No one questioned the 95%-plus gross margins these firms routinely earned.

But agentic AI doesn’t need dashboards. It connects directly to underlying systems, pulls data, updates records, and triggers next steps automatically. When one AI agent can do the work of five junior analysts or paralegals, companies don’t just need fewer employees. They need fewer software licenses.

And if these systems get powered by a model as powerful as Mythos, the pressure on SaaS business models could accelerate very quickly.

Meanwhile, the companies you’d expect to benefit – the pure-play AI names – are trading at valuations that assume perfection.

We saw this movie before during the dot-com hysteria. Many sought-after internet darlings like Cisco Systems Inc. (CSCO), Lucent, and AOL failed to deliver… and so did firms like Borders and Circuit City that were disrupted by the internet era.

So, the question isn’t whether AI is a big deal.

That debate is over.

The question is: As investors, how can we profit?

The Coming AI Reckoning My InvestorPlace colleague Eric Fry believes the big profit opportunities will be in the “Appliers.” These aren’t the firms building AI. They’re the ones using it to transform entire industries.

Think sensors, robotics, industrial systems, and security infrastructure. Companies with hard-to-replicate data edges and real-world integration that can’t be vibe-coded away.

He sees this “AI Reckoning” as a major inflection point. In the coming months, he believes we’re going to see a wealth shift from those holding the wrong stocks to those positioned in AI Applier companies that connect this digital technology to the physical world.

He’s put together a free presentation that goes far deeper than I can here – naming the specific stocks he believes are most at risk, and the ones positioned to capture the upside as this shift accelerates.

The scenario we started with may sound extreme.

But the forces behind it are already here—and they’re beginning to reshape which companies win, and which ones don’t.

If you own any AI-adjacent stocks (and at this point, who doesn’t?), it’s worth seeing what he found – especially before this shift becomes more obvious to the broader market.

Thomas Yeung, CFA

Market Analyst, InvestorPlace

P.S. A lot of investors think the biggest AI gains are already behind us. Eric Fry believes the opposite may be true… but only for a specific group of companies that most people aren’t watching. In his latest presentation, he explains why some of today’s biggest winners could struggle from here, and how a lesser-known group could deliver outsized gains in the next phase of the cycle. It’s worth a look if you haven’t seen it yet.

FAQ What is agentic AI and why does it matter for investors? Agentic AI refers to artificial intelligence systems that can act autonomously — executing complex tasks, making decisions, and solving problems without step-by-step human input. Unlike traditional AI chatbots that respond to prompts, agentic AI operates more like a self-directed digital worker. For investors, it matters because it threatens the business models of widely held SaaS companies while simultaneously creating a new class of winners among companies that deploy it effectively.

What is the “SaaSpocalypse” and which stocks are most at risk? The “SaaSpocalypse” refers to the rolling collapse in software-as-a-service stocks triggered by agentic AI. For 15 years, SaaS companies charged businesses per employee per month to access software dashboards — a model that produced 95%+ gross margins. Agentic AI bypasses those dashboards entirely, connecting directly to underlying systems and automating the work those licenses supported. Companies most at risk are those whose value proposition is access rather than irreplaceable data or deep workflow integration.

What are “AI Appliers” and why does Eric Fry believe they represent the next big opportunity? AI Appliers are companies that use artificial intelligence to transform physical industries — think sensors, robotics, industrial systems, and security infrastructure — rather than companies building the underlying AI models themselves. Eric Fry believes these companies represent the next phase of the AI wealth transfer because they combine hard-to-replicate data advantages with real-world integration that can’t easily be automated away. Many are still under the radar while the market remains fixated on richly valued AI builders.

What is Claude Mythos and what makes it different from previous AI systems? Claude Mythos is an AI system released by Anthropic in April 2025 that was so capable the company immediately restricted access to it. What made it significant wasn’t just its power — it was the fact that it autonomously discovered zero-day cybersecurity vulnerabilities in every major operating system, including one that had gone undetected for 27 years. Anthropic confirmed it never programmed Mythos to do this. The capabilities emerged on their own as a byproduct of advances in reasoning and autonomy — a signal that AI development has crossed an important threshold.

Revenue of $206.8 million, up 13% year-over-year; reflecting continued growth in higher-value subscriptions and contributions from compliance product enhancements Subscription revenue of $130.2 million up 12% year-over-year, driven by growth in differentiated human-in-the-loop service offeringsNet income of $1.1 million and net income margin of 1%Adjusted EBITDA of $36.5 million and Adjusted EBITDA margin of 18%Commitment to shareholder returns; completed $43.5 million of share repurchases in the quarter
Ended the quarter with cash and cash equivalents of $183.2 million, delivered $47.3 million in cash from operating activities and $41.0 million in free cash flow with no debt outstanding as of March 31, 2026
MOUNTAIN VIEW, Calif., May 06, 2026 (GLOBE NEWSWIRE) -- LegalZoom (Nasdaq: LZ), America’s #1 online legal services company, today announced results for its first quarter ended March 31, 2026.

“LegalZoom delivered another strong quarter, clearly illustrating that our strategy is working,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. “In an AI-driven world, we win by getting customers to the finish line, combining technology with real human expertise to complete the last mile.”

Noel Watson, LegalZoom’s Chief Operating Officer and Chief Financial Officer, added, “We delivered strong first quarter results, with 13% revenue growth ahead of expectations. Our performance was driven by momentum in higher-value subscriptions and increased seasonal strength in annual report filings from our enhanced compliance offering. Importantly, our core growth drivers continue to build and will scale through the back half of the year, supporting our increased full-year revenue outlook.”

First Quarter 2026 Highlights

Revenue was $206.8 million for the quarter, up 13% year-over-year. Transaction revenue of $76.6 million increased 15% year-over-year.Subscription revenue of $130.2 million grew 12% year-over-year. Net income was $1.1 million for the quarter, or 1% of revenue, compared to $5.1 million, or 3% of revenue, in the same period in 2025.Adjusted EBITDA was $36.5 million for the quarter, or 18% of revenue, compared to $37.0 million, or 20% of revenue, in the same period in 2025.Non-GAAP net income was $22.1 million for the quarter compared to $23.8 million in the same period in 2025.Cash and cash equivalents were $183.2 million as of March 31, 2026 compared to $203.1 million as of December 31, 2025.Cash flows provided by operating activities were $47.3 million for the quarter ended March 31, 2026 compared to $50.7 million in the same period in 2025.Free cash flow was $41.0 million for the quarter ended March 31, 2026 compared to $41.3 million in the same period in 2025.Basic and diluted net income per share was $0.01 for the quarter compared to a basic and diluted net income per share of $0.03 for the same period in 2025. Basic and diluted Non-GAAP net income per share was $0.13 and $0.12, respectively, for the quarter in 2026 compared to basic and diluted Non-GAAP net income per share of $0.13 for the same period in 2025. Key Business Metrics and Non-GAAP Financial Measures

(Unaudited, in thousands except AOV, ARPU and percentages)

 Three Months Ended
   March 31, % Growth   (Decline)  2026   2025  YOYTotal revenue$206,781  $183,110  13%Transaction revenue$76,623  $66,853  15%Subscription revenue$130,158  $116,257  12%Gross profit$132,253  $116,550  13%Gross margin 64%  64% —%Net Income$1,104  $5,127  (78)%Net income margin 1%  3% (67)%Net Income per share — basic:$0.01  $0.03   Net Income per share — diluted:$0.01  $0.03   Net cash provided by operating activities$47,282  $50,703  (7)%Non-GAAP Financial Measures     Non GAAP net income$22,070  $23,822  (7)%Non GAAP net income per share — basic:$0.13  $0.13   Non GAAP net income per share — diluted:$0.12  $0.13   Adjusted EBITDA$36,462  $37,012  (1)%Adjusted EBITDA margin 18%  20% (10)%Free cash flow$40,974  $41,325  (1)%Key Business Metrics     Transaction units 375   341  10%Business formations 142   131  8%Average order value (AOV)$205  $196  5%Subscription units at period end 1,920   1,924  —%Average revenue per subscription unit (ARPU) at period end$263  $252  4%Certain percentages may not recalculate due to rounding.  Financial Guidance and Outlook

LegalZoom is increasing its revenue outlook and maintaining its Adjusted EBITDA outlook for the full year ending December 31, 2026 as follows:

Revenue is expected to be in the range of $810 million to $830 million, or 8% year-over-year growth at the midpoint. This compares to the Company’s previous revenue outlook in the range of $805 million to $825 million. LegalZoom’s outlook reflects the continued scaling of our higher-value growth initiatives and ongoing momentum from our partner channel through the remainder of the year. Adjusted EBITDA is expected to be in the range of $190 million to $200 million, or 13% year-over-year growth at the midpoint, reflecting improved gross margin, disciplined cost management and AI-driven efficiencies realized in the back-half of the year.
For the second quarter ending June 30, 2026 LegalZoom expects:

Revenue in the range of $203 million to $207 million, or 6% year-over-year growth at the midpoint. Relative to the first quarter, this growth rate reflects a full lapping of the Formation Nation acquisition as well as a reduced volume of annual reports filings due to seasonality. Adjusted EBITDA in the range of $40 million to $42 million, a 5% year-over-year increase at the midpoint.
Webcast and Conference Call Information

A webcast and conference call to discuss first quarter 2026 results is scheduled for today, May 6, 2026, at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Those interested in participating in the conference call are invited to register Here.

A live audio webcast of the event will be available on the LegalZoom Investor Relations website: https://investors.legalzoom.com/. An archived replay of the webcast also will be available shortly after the live event.

Forward-Looking Statements

This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, statements regarding our quarterly and annual guidance.

The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: our dependence on business formations; our dependence on customers expanding the use of our platform, including converting our transactional customers to subscribers and our subscribers renewing their subscriptions with us; the impact of macroeconomic challenges or uncertainty on our business; our ability to sustain our revenue growth rate and remain profitable in the future; our ability to provide high-quality products and services, customer care and customer experience; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers’ expectations; the competitive legal solutions market; our dependence on our brand and reputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; risks and costs associated with complex and evolving laws and regulations; our ability to maintain effective in our internal control over financial reporting; and any factors discussed in the section titled “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2026, as well as any factors in our subsequent filings with the SEC. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.

About Non-GAAP Financial Measures

This press release includes non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income per share and free cash flow. We use these non-GAAP financial measures to better understand and evaluate our core operating performance. We believe that these non-GAAP financial measures provide management and our investors with useful information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We also believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. These non-GAAP measures should not be considered in isolation of, or as a substitute or an alternative to, measures prepared and presented in accordance with GAAP.

We define Adjusted EBITDA as net income adjusted to exclude interest expense, interest income, provision for (benefit from) income taxes, depreciation and amortization, other expense (income), net, stock-based compensation and certain non-recurring income and expenses from time to time. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue.

Adjusted EBITDA is one of the primary performance measures used by our management and our board of directors to understand and evaluate our financial performance and operating trends, including period-to-period comparisons, preparing and approving our annual budget and operational planning. In assessing our performance, we exclude certain expenses that we believe are not comparable period over period or that we believe are not indicative of our underlying operating performance. There are a number of limitations related to the use of Adjusted EBITDA rather than net income, which include that Adjusted EBITDA:

may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure;does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;excludes depreciation and amortization and, although these are non-cash expenses, the assets being depreciated may be replaced in the future;does not reflect changes in, or cash requirements for, our working capital needs;excludes stock-based compensation expense, which has been, and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy; anddoes not reflect certain expenses that we do not consider representative of our underlying operating performance, but that reduce cash available to us. We define Non-GAAP net income as net income adjusted to exclude amortization of acquired intangible assets, stock-based compensation expense and certain non-recurring income and expenses from time to time, net of related income tax impacts. We define net income margin as net loss as a percentage of revenue. We define Non-GAAP net income margin as Non-GAAP net income as a percentage of revenue. We define Non-GAAP net income per share attributable to common stockholders as Non-GAAP net income divided by basic and diluted weighted-average common stock.

Free cash flow is a liquidity measure used by management in evaluating the cash generated by our operations after purchases of property and equipment including capitalized internal-use software. We believe free cash flow provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet, once our business needs and obligations are met. The usefulness of free cash flow as an analytical tool has limitations because it excludes certain items that are settled in cash, does not represent residual cash flow available for discretionary expenses, does not reflect our future contractual commitments, and may be calculated differently by other companies in our industry.

We are not providing a reconciliation for our non-GAAP outlook on a forward-looking basis (including the information under “Financial Guidance and Outlook” above), as we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of LegalZoom’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

LegalZoom

LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or the LegalZoom-owned law firm—we offer the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support.

With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com. 

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LegalZoom.com, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except par values)
     March 31,
2026 December 31,
2025Assets   Current assets:   Cash and cash equivalents$183,152  $203,100 Accounts receivable, net of allowance 24,573   20,589 Prepaid expenses and other current assets 20,551   18,234 Total current assets 228,276   241,923 Property and equipment, net 55,589   58,045 Goodwill 140,705   140,705 Intangible assets, net 16,542   18,152 Operating lease right-of-use assets 14,199   13,414 Deferred income taxes 29,446   31,884 Other assets 7,101   7,399 Total assets$491,858  $511,522 Liabilities and stockholders’ equity    Current liabilities:   Accounts payable$38,126  $27,167 Accrued expenses and other current liabilities 57,373   83,361 Deferred revenue 223,242   203,653 Operating lease liability 4,743   4,338 Total current liabilities 323,484   318,519 Operating lease liability, non-current 10,479   10,025 Deferred revenue 260   277 Other liabilities 10,727   10,819 Total liabilities 344,950   339,640 Commitments and contingencies   Stockholders’ equity:   Preferred stock, $0.001 par value; 100,000 shares authorized at March 31, 2026 and December 31, 2025, none issued or outstanding at March 31, 2026 and December 31, 2025 —   — Common stock, $0.001 par value; 1,000,000 shares authorized; 173,402 shares and 177,624 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 175   179 Additional paid-in capital 1,323,587   1,305,936 Accumulated deficit (1,177,128)  (1,134,414)Accumulated other comprehensive (loss) income 274   181 Total stockholders’ equity 146,908   171,882 Total liabilities and stockholders’ equity$491,858  $511,522          LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
     Three Months Ended
March 31,   2026   2025 Revenue $206,781  $183,110 Cost of revenue  74,528   66,560 Gross profit  132,253   116,550 Operating expenses:    Sales and marketing  78,668   61,378 Technology and development  19,605   21,322 General and administrative  31,216   39,221 Gain on sale of assets held for sale  —   (14,337)Total operating expenses  129,489   107,584 Income from operations  2,764   8,966 Interest expense  (676)  (182)Interest income  1,648   1,483 Other income, net  81   347 Income before income taxes  3,817   10,614 Provision for income taxes  2,713   5,487 Net income $1,104  $5,127 Net income attributable to common stockholders—basic and diluted    Net income per share — basic: $0.01  $0.03 Net income per share — diluted: $0.01  $0.03 Weighted-average shares used to compute net income per share — basic:  174,866   176,829 Weighted-average shares used to compute net income per share — diluted:  177,013   180,616           LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
   Three Months Ended
March 31,  2026   2025 Cash flows from operating activities   Net income$1,104  $5,127 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 11,137   10,406 Amortization of debt issuance costs 47   56 Amortization of right-of-use assets 968   618 Stock-based compensation 21,314   29,756 Gain on sale of assets held for sale —   (14,337)Change in fair value of other equity security —   (302)Loss on disposal of property and equipment —   99 Deferred income taxes 2,438   1,996 Change in fair value of other equity security —   (302)Unrealized foreign exchange loss 143   76 Changes in operating assets and liabilities, net of effects of business combination:   Accounts receivable (3,984)  (9,148)Prepaid expenses and other current assets (2,348)  (2,238)Other assets 412   204 Accounts payable 11,248   5,329 Accrued expenses and other liabilities (13,882)  (3,247)Operating lease liabilities (896)  (536)Income tax payable 7   6 Deferred revenue 19,574   26,838 Net cash provided by operating activities 47,282   50,703 Cash flows from investing activities   Acquisition, net of cash acquired —   (48,123)Purchase of property and equipment (6,308)  (9,378)Proceeds from sale of assets held for sale —   37,051 Net cash used in investing activities (6,308)  (20,450)Cash flows from financing activities   Repayment of capital lease obligations —   (2)Payment of deferred consideration from business acquisition (12,514)  — Repurchase of common stock (43,467)  — Shares surrendered for settlement of minimum statutory tax withholding (4,887)  (5,942)Proceeds from issuance of stock under employee stock plans 16   43,548 Net cash (used in) provided by financing activities (60,852)  37,604 Effect of exchange rate changes on cash and cash equivalents (70)  52 Net (decrease) increase in cash and cash equivalents (19,948)  67,909 Cash and cash equivalents, at beginning of the period 203,100   142,064 Cash and cash equivalents, at end of the period$183,152  $209,973          Adjusted EBITDA and Adjusted EBITDA Margin

The following table presents a reconciliation of net income to Adjusted EBITDA for each of the periods indicated (unaudited):

  Three Months Ended
March 31,   2026   2025   (in thousands, except percentages)Reconciliation of net income to Adjusted EBITDA    Net income $1,104  $5,127 Interest expense  676   182 Interest income  (1,648)  (1,483)Provision for income taxes  2,713   5,487 Depreciation and amortization  11,137   10,406 Other income, net  (81)  (347)Stock-based compensation  21,314   29,756 Transaction-related expenses(1)  604   1,543 Gain on sale of assets held for sale  —   (14,337)Restructuring costs(2)  643   678 Adjusted EBITDA $36,462  $37,012 Net income margin  1%  3%Adjusted EBITDA margin  18%  20% (1)For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.(2)For 2026 and 2025, restructuring costs are related to the reduction of our U.S. headcount.   Non-GAAP Net Income, Non-GAAP Net Income Margin and diluted Non-GAAP Net Income Per Share

The following table presents a reconciliation of net income to Non-GAAP net income for each of the periods indicated (unaudited):

  Three Months Ended
March 31,   2026   2025   (in thousands, except per share amounts)Reconciliation of net income to Non-GAAP net income    Net income $1,104  $5,127 Amortization of acquired intangible assets  1,610   1,647 Stock-based compensation  21,314   29,756 Transaction-related expenses(1)  604   1,543 Restructuring costs(2)  643   678 Gain on sale of assets held for sale  —   (14,337)Income tax effects(3)  (3,205)  (592)Non-GAAP net income  22,070   23,822 Net income margin  1%  3%Non-GAAP net income margin  11%  13%Net income per share — basic $0.01  $0.03 Net income per share — diluted $0.01  $0.03 Non-GAAP net income per share — basic $0.13  $0.13 Non-GAAP net income per share — diluted $0.12  $0.13 Weighted-average shares used to compute net income per share — basic  174,866   176,829 Weighted-average shares used to compute net income per share — diluted  177,013   180,616 Weighted-average shares used to compute Non-GAAP net income per share — basic  174,866   176,829 Weighted-average shares used to compute Non-GAAP net income per share — diluted  177,013   180,616  (1)For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.(2)For 2026 and 2025, restructuring costs are related to the reduction of our U.S. headcount.(3)The estimated income tax effect of the non-GAAP pre-tax adjustments is determined by applying the statutory rate of the originating jurisdiction, if applicable.   The following table shows the computation of basic and diluted Non-GAAP net income per share (unaudited):

  Three Months Ended
March 31,   2026  2025  (in thousands, except per share amounts)Non-GAAP net income and Non-GAAP net income per share:    Non-GAAP net income $22,070 $23,822Reconciliation of denominator for net income per share to Non-GAAP net income per share:    Weighted-average shares used to compute net income per share — basic:  174,866  176,829Effect of potentially dilutive securities:    Options to purchase common stock  36  60RSUs and PSUs  2,111  3,713Employee stock purchase plan  —  14Weighted-average common stock used in computing Non-GAAP net income per share — diluted  177,013  180,616Non-GAAP net income per share — basic $0.13 $0.13Non-GAAP net income per share — diluted $0.12 $0.13        Free Cash Flow

The following table presents a reconciliation of net cash provided by operating activities to free cash flow (unaudited):

  Three Months Ended
March 31,   2026   2025   (in thousands)Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow    Net cash provided by operating activities  47,282   50,703 Purchase of property and equipment  (6,308)  (9,378)Free cash flow $40,974  $41,325 

LegalZoom (LZ - Free Report) reported $206.78 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 12.9%. EPS of $0.12 for the same period compares to $0.13 a year ago.

The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $202.39 million. With the consensus EPS estimate being $0.13, the EPS surprise was -10.45%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how LegalZoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average revenue per subscription unit (ARPU) at period end: $0.26 million versus the three-analyst average estimate of $0.26 million.Subscription units at period end: 1,920 versus the three-analyst average estimate of 1,952.Average order value (AOV): $205.00 compared to the $206.59 average estimate based on three analysts.Transaction units: 375 compared to the 336 average estimate based on three analysts.Business formations: 142 versus 146 estimated by two analysts on average.Revenue- Subscription: $130.16 million versus the three-analyst average estimate of $130.15 million. The reported number represents a year-over-year change of +12%.Revenue- Transaction: $76.62 million versus the three-analyst average estimate of $72.03 million. The reported number represents a year-over-year change of +14.6%.View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned +12% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.