Track market-moving stories before they get noisy

First Trust Indxx Aerospace & Defense ETF (MISL +5.02%) offers a lower-cost entry into established defense industrials, while Tema Space Innovators ETF (NASA +12.87%) provides a larger asset base and a narrower focus on space innovation.

Investors looking for exposure to the sky and beyond may find these two funds provide significantly different paths. While the First Trust fund follows a traditional index of defense firms, the Tema fund employs an active mandate to capture the space economy, including satellite communications, launch systems, and space-based data infrastructure across various geographies.

Snapshot (cost & size)MetricMISLNASAIssuerFirst TrustTemaExpense ratio0.6%0.75%Dividend yield0.3%N/AAUM$804.5 million$2.5 billionThe 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

NYSEMKT: MISLFirst Trust Exchange-Traded Fund - First Trust Indxx Aerospace & Defense ETF

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What's insideThe Tema Space Innovators ETF (NASA +12.87%) focuses on companies engaged in the expanding space economy, with largest positions including Rocket Lab (RKLB +9.42%) at 9.79%, MDA Space (MDA +8.19%) at 6.54%, and AST SpaceMobile (ASTS +11.83%) at 6.49%. It has the flexibility to invest across various market capitalizations and geographies to find innovation.

By comparison, the First Trust Indxx Aerospace & Defense ETF (MISL +5.02%) provides a portfolio of 49 holdings, primarily in industrials (83%) and technology (17%). Its top holdings include Palantir Technologies (PLTR +0.76%) at 9.24%, GE Aerospace (GE +4.36%) at 8.01%, and The Boeing Company (BA +6.04%) at 7.78%. Launched in 2022, the First Trust fund paid $0.16 per share over the trailing 12 months.

For more guidance on ETF investing, check out the full guide at this link.

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What this means for investors Space investing has gone from science fiction to serious financial theme almost overnight. The global space economy is forecast to nearly triple by 2035, driven by falling launch costs, broadband satellite expansion, and the early stages of commercial space exploration. That backdrop has sent investors rushing into space-related funds like NASA and MISL.

NASA just debuted on March 30, 2026 and crossed $2.6 billion in assets within two months. It is the first pure-play space ETF to include direct SpaceX access through a special purpose vehicle, an unprecedented feature that has proven enormously appealing. But space-focused funds can face extreme volatility, and NASA's explosive growth is driven as much by IPO excitement as by investment fundamentals.

By contrast, MISL is a passive, lower-cost fund anchored in established U.S. aerospace and defense companies that have real revenues and long track records. For long-term investors who want aerospace exposure without betting on the outcome of a single IPO, MISL is the more sensible choice. Its holdings generate real revenue today, carry government contracts that provide predictable cash flows, and have survived multiple market cycles. NASA is the fund for investors specifically seeking pre-IPO SpaceX exposure who also understand they are buying into one of the most momentum-driven trades in recent ETF history.

Sara Appino has positions in Palantir Technologies. The Motley Fool has positions in and recommends AST SpaceMobile, Boeing, GE Aerospace, MDA Space, Palantir Technologies, and Rocket Lab. The Motley Fool has a disclosure policy.

MIDLAND, Texas--(BUSINESS WIRE)---- $ASTS #AST--AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced that the launch of the BlueBird 8, 9, and 10 satellites is currently scheduled for Wednesday, June 17, 2026, from Cape Canaveral, Florida, aboard a Falcon 9 rocket. Liftoff is targeted for 2:39 a.m. EDT with ad.

HomeIndustriesTelecommunicationsSpace WatchSpace WatchThe company is developing a space-based broadband cellular network that could rival Elon Musk’s StarlinkLast Updated: June 9, 2026 at 5:55 p.m. ET
First Published: June 9, 2026 at 3:38 p.m. ET

Satellite maker AST SpaceMobile has set a date for its next launch, as getting more satellites into space is the company’s latest step toward developing a cellular broadband service to rival Starlink, a division of Elon Musk’s SpaceX.

AST SpaceMobile ASTS said Tuesday that its BlueBird 8, 9 and 10 satellites are scheduled to be launched into low-Earth orbit as soon as June 17 from Cape Canaveral, Fla, aboard a SpaceX SPCX Falcon 9 rocket. The company had said the launch would take place sometime in mid-June, but has now revealed the specific date.

Key Takeaways AST SpaceMobile's next launch is set for June 17, 2026, from Cape Canaveral on a Falcon 9 rocket.AST SpaceMobile will deploy BlueBird satellites 8 to10 expanding its direct-to-device broadband network.ASTS' next-generation BlueBirds are expected to nearly double speeds from the earlier 98.9 Mbps record. AST SpaceMobile, Inc. (ASTS - Free Report) has announced that its next orbital launch mission is scheduled for June 17, 2026, from Cape Canaveral, FL, on a SpaceX Falcon 9 rocket. The mission will deploy BlueBird satellites 8, 9 and 10, marking another major step in the company's mission to build the world's first space-based cellular broadband network that connects directly to everyday smartphones without special hardware.

AST SpaceMobile's new BlueBird satellites are designed to enhance its space-based communication services, including voice calls, Internet data and video connectivity for commercial and government users. Built on the company's advanced stackable satellite architecture and lightweight carbon composite structures, the satellites can be launched more efficiently, supporting the faster deployment of its direct-to-device broadband network.

The next-generation satellites are expected to deliver nearly twice the data speeds of their predecessors, which recently achieved download speeds of 98.9 Mbps directly to standard smartphones. Equipped with large 2,400-square-foot communication arrays, the satellites are designed to increase network capacity and coverage.

With a broad base of telecom partners and a rapidly expanding satellite constellation, AST SpaceMobile is advancing its vision of global cellular connectivity from space. The upcoming launch represents another important milestone as the company moves closer to providing seamless mobile broadband service worldwide.

How Are Other Competitors Advancing in the Connectivity Arena?AST SpaceMobile faces competition from Globalstar, Inc. (GSAT - Free Report) and Viasat, Inc. (VSAT - Free Report) . Globalstar has strengthened its satellite connectivity services through its low-Earth Orbit satellite network, which provides voice, data and messaging services in areas without traditional mobile coverage. The company continues to expand its direct-to-device offerings for smartphones and other connected devices.

Viasat provides satellite-based Internet and communication services to consumers, businesses and government customers globally. The company is expanding its satellite network to improve coverage and connectivity. Viasat's ongoing investments are helping improve access to reliable communications in remote and underserved regions.

ASTS’ Price Performance, Valuation and EstimatesAST SpaceMobile shares have rallied 143.3% over the past year compared with the industry’s growth of 54.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, AST SpaceMobile trades at a forward price-to-sales ratio of 81.91, well above the industry average of 5.27.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have declined 47% to a loss of $1.47 per share over the past 60 days, while the same for 2027 has decreased to a loss of 38 cents per share.

Image Source: Zacks Investment Research

Key Takeaways Verizon expanded broadband, raised 2026 adjusted EPS guidance and reiterated cash flow guidance.AST SpaceMobile plans a June 17 launch for BlueBird 8, 9 and 10 with higher expected peak data speeds.VZ and ASTS differ in estimates, valuation metrics, price performance and stated execution challenges. Verizon Communications Inc. (VZ - Free Report) and AST SpaceMobile (ASTS - Free Report) are both strengthening their capabilities to expand the reach and accessibility of wireless connectivity. AST SpaceMobile is building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. As one of the leading wireless carriers in the United States, Verizon delivers communication services to a vast customer base across the public sector, small and medium businesses, as well as global enterprises.

Per a report from Precedence Research, the global wireless connectivity market was valued at $134.77 billion in 2026. It is expected to reach $412.84 billion in 2035, with a compound annual growth rate of 13.31%. The broader connectivity market is entering a phase where terrestrial wireless networks and satellite networks are converging rather than competing. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in this broader sector.

The Case for VerizonVerizon’s broadband build continues to broaden its addressable market and create more room to sell converged offers over time. In first-quarter 2026, Verizon delivered 341,000 broadband net additions, including 214,000 fixed wireless access net additions and 127,000 fiber broadband net additions, bringing fixed wireless access and fiber broadband connections to about 16.8 million.

Verizon has launched a company-wide transformation initiative aimed at becoming an AI-first organization. The program emphasizes automation, AI-powered customer interactions, digital sales channels, micro-segmentation, and process simplification to enhance customer experience while improving operational efficiency. Through these initiatives, the company targets approximately $5 billion in operating expense savings and higher long-term profitability. AI integration will serve as a key enabler across its operations.

Moreover, Verizon continues to strengthen its network capabilities through investments in fiber infrastructure, network excellence, and advanced cybersecurity. Its participation in Anthropic's Project Glasswing underscores this strategy, leveraging cutting-edge artificial intelligence to identify complex vulnerabilities and bolster the security and resilience of its critical network infrastructure. The company faces stiff competition in the U.S. telecom market from other industry leaders such as AT&T and T-Mobile. However, its strong focus on innovation and customer retention strategies, such as bundled plan offerings, enables it to gain a competitive edge.

Verizon’s 2026 outlook reflects higher management confidence in earnings delivery, supported by cost actions and a more disciplined promotional stance. Verizon raised 2026 adjusted EPS guidance to $4.95-$4.99 from $4.90-$4.95 expected earlier. The company also reiterated 2026 cash flow from operations guidance of $37.5 billion to $38.0 billion and free cash flow guidance of $21.5 billion or more.

The Case for ASTSUtilizing large phased array antennas, AST SpaceMobile’s technology is backed by approximately 3,900 patents and patent-pending claims. This design aims to deliver worldwide cellular coverage by eradicating dead zones and providing space-based connectivity to areas that lack broadband service.

The company has deployed an initial set of commercial satellites in low Earth orbit, branded BlueBird, and continues to expand its launch campaign. These satellites support non-continuous service and have been used to validate voice and data capabilities directly to unmodified smartphones. BlueBird 6, which features an approximately 2,400 square-foot communications array, remains in orbit and operating as expected.

The company recently announced that BlueBird satellites 8, 9 and 10 are scheduled to launch aboard a Falcon 9 rocket on June 17, 2026. The BlueBird 8, 9 and 10 satellites are expected to deliver nearly double the peak data speeds achieved by the company's initial Block 1 BlueBird satellites, which recently demonstrated download speeds of 98.9 Mbps directly to standard smartphones. The major advancement in throughput will allow the company to effectively support the most demanding applications used by enterprises.

However, AST SpaceMobile operates in a highly competitive mobile satellite services market with high development and launch costs and well-funded incumbents. Competition in direct-to-device satellite communications is increasing rapidly. Existing and new industry leaders like SpaceX’s Starlink, Viasat, Inc. (VSAT - Free Report) are expanding their SATCOM infrastructure. Viasat announced the successful launch and initial signal acquisition of its ViaSat-3 Flight 3 (F3) satellite, completing the company’s next-generation global ViaSat-3 constellation. The satellite is designed to provide more than 1 Tbps of throughput capacity across the Asia-Pacific region. ViaSat-3 F3 features advanced beamforming and flexible bandwidth allocation capabilities, enabling Viasat to dynamically direct capacity toward high-demand commercial, enterprise and defense markets.

AST SpaceMobile relies on third-party launch providers, and any failure, delay, or underperformance could disrupt satellite deployment and push out commercialization timelines. In April 2026, the Block 2 BlueBird 7 satellite was placed into a lower-than-planned orbit, separated and powered on, but was de-orbited because the altitude was too low for sustained operations. Scale and execution risk remain one of the biggest concerns for investors regarding ASTS. The company must successfully coordinate satellite manufacturing, launch schedules, telecom network integration, regulatory approvals and, ultimately, large-scale commercial service activation. Recent events underscore these challenges.

How Do Zacks Estimates Compare for VZ & ASTS?The Zacks Consensus Estimate for Verizon’s 2026 sales and EPS implies year-over-year growth of 3.27% and 5.31%, respectively. The EPS estimate for 2026 have moved northward over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AST SpaceMobile’s 2026 sales implies year-over-year growth of 132.32%, while that for EPS suggests a decline of 9.7%. The EPS estimate has declined over the past 60 days.

Image Source: Zacks Investment Research

Price Performance & Valuation of VZ & ASTSOver the past year, VZ has gained 4.7% compared to ASTS’ growth of 143.2%.

Image Source: Zacks Investment Research

Verizon looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, ASTS’ shares currently trade at 81.91 forward sales, significantly higher than 1.33 for VZ.

Image Source: Zacks Investment Research

VZ or AST SpaceMobile: Which is a Better Pick?VZ carries a Zacks Rank #3 (Hold), while ASTS has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Both companies are taking several initiatives to expand their next-generation connectivity portfolio. ASTS’ growing prowess in the direct-to-device broadband capability is evident from its recent achievements. However, the execution risks of ASTS’s massive and technologically intricate project remain a major concern for investors. Verizon is benefiting from strong wireless subscriber additions. The company reported its first positive first-quarter postpaid phone net additions since 2013. This was possible due to lower churn and improved customer satisfaction. Verizon’s focus on AI integration and improving cybersecurity is a positive factor. Owing to these factors and a better Zacks Rank, Verizon is a better investment option at present.

Issued on behalf of Starfighters Space, Inc.

When the sector's largest company sets its price, every other space stock suddenly has a number to be measured against. That reckoning is happening now.

Baystreet.ca News Commentary 

, /PRNewswire/ -- Markets run on price discovery, and there is no more dramatic example than the moment a long-private giant finally tells the world what it thinks it is worth. As reported, that moment arrives for SpaceX around now, with the company's initial public offering expected to price ahead of its Nasdaq debut. The number it lands on will not just value one company — it will recalibrate how investors value an entire sector, because for the first time the orbital economy will have a public, market-cleared anchor at its center.

That repricing is landing on a sector that public markets have only just begun to formally embrace. Just days ago, the broad-market Russell 3000® Index confirmed it is adding commercial-space names in its 2026 reconstitution — including Starfighters Space, Inc. (NYSE: FJET), effective June 29, 2026 — a structural signal that space has grown large enough to register on the market's broadest screens. The pricing of SpaceX and the indexing of its smaller peers are two halves of the same story: capital is assigning real, public value to space at a pace and scale the sector has never experienced.

Putting a Number on the Untouchable

For most of its life, SpaceX could only be valued through the narrow window of private funding rounds and secondary sales — numbers visible to a select few. Its public offering changes that overnight. Having filed its public S-1 and applied to list on Nasdaq under the ticker SPCX, the company is reported to be pricing its shares around $135, at a valuation measured in the trillions of dollars, with a raise that at the upper end would stand among the largest in the history of public markets. (All figures are as reported and remain subject to final pricing.) Much of the case rests on Starlink, the satellite-broadband arm estimated to drive the majority of company revenue.

The significance for everyone else is the benchmark effect. Once the market sets a public price on the sector's flagship, every other space company is implicitly measured against it — on growth, on margins, on the multiple investors are willing to pay for a slice of the orbital economy. Some names will look cheap by comparison; others expensive. But all of them gain something they lacked before: a reference point. Price discovery at the top cascades down through the whole category.

A Sector Being Valued in Real Time

The clearest evidence that this is a sector-wide repricing, not a one-company event, is how broadly capital has been moving across listed space names — spanning space stations, direct-to-phone satellites, Earth observation, and the advanced manufacturing that makes missions possible. Four names map that breadth.

CONTINUED … Learn more about Starfighters Space, Inc. at: https://usanewsgroup.com/fjet-landing

Voyager Technologies, Inc. (NYSE: VOYG) has become a centerpiece of the 'space has never been hotter' narrative. The defense-and-space company is developing Starlab, a commercial successor to the International Space Station, and recently agreed to acquire lunar-delivery specialist Astrobotic in a deal valued at up to $300 million to deepen its Moon-economy exposure. With analysts raising targets and management raising guidance, Voyager illustrates how quickly the market is re-rating credible space-infrastructure stories.

AST SpaceMobile, Inc. (NASDAQ: ASTS) is pursuing one of the sector's boldest ideas: a satellite network that connects directly to ordinary, unmodified smartphones, in partnership with major carriers. With a North American spectrum settlement and its own pending addition to the Russell 1000® Index, ASTS shows how the market is willing to assign substantial value to space companies attacking enormous terrestrial end-markets — in its case, global mobile connectivity.

Planet Labs PBC (NYSE: PL) operates one of the largest Earth-observation satellite fleets in the world, selling imagery and analytics to agriculture, government, mapping, and defense customers. As a data-and-analytics business built on space hardware, Planet represents the recurring-revenue, information-services layer of the orbital economy — a different and increasingly valued way to monetize space.

Velo3D, Inc. (NASDAQ: VELO) supplies metal additive-manufacturing systems used to build mission-critical components for space, aviation, and defense programs — a reminder that the repricing sweeping the sector reaches the specialized manufacturers behind the hardware, not just the launch and satellite names. After posting first-quarter 2026 revenue up 48% year-over-year and reaching a positive gross-margin inflection, Velo3D represents the production-and-supply-chain layer of the orbital economy. These companies are referenced to illustrate the breadth of the space sector and do not imply any partnership, endorsement, affiliation, or comparable financial performance; they differ widely in size and stage.

Where Starfighters Sits in the Repricing

Starfighters Space brings a model that looks like none of the above. The company operates what it describes as the world's only flight-ready MACH 2+ supersonic aircraft fleet from NASA's Kennedy Space Center, pursuing air-launch — releasing a vehicle from a fast, high-flying aircraft so the launch system inherits altitude and speed, with the runway responsiveness and reusability an aircraft platform implies. As a freshly public, recently indexed company, it is precisely the kind of differentiated niche name that a sector-wide repricing tends to surface, as investors hunt for exposure beyond the obvious giants. CEO Tim Franta framed the Russell inclusion as a milestone reflecting growing awareness of that differentiated platform.

The caution is the same one that applies to any emerging name: Starfighters is early-stage and small-cap, its shares have been volatile, and a benchmark anchor set by a trillion-dollar peer cuts both ways — it can lift sentiment, but it also raises the bar for what investors expect operators to deliver. The opportunity and the scrutiny arrive together.

Why the Timing Is the Whole Story

Sectors do not get repriced on a random Tuesday. They get repriced when a catalyst forces the market to look at an entire category with fresh eyes — and the SpaceX pricing is exactly that kind of forcing event. For years, valuing a space company meant arguing by analogy, because the sector lacked a large, liquid, public reference point. Private marks were stale and selective; public space names were too small or too varied to anchor the category. The pricing of a trillion-dollar flagship removes that excuse. Suddenly there is a live, visible multiple attached to the most scrutinized space business in the world, and every analyst model in the sector has to be re-run against it.

That is why the days around a mega-listing tend to see the sharpest moves across an entire peer group, in both directions. Capital that had been waiting on the sidelines for a credible entry point finds one; capital that had been crowded into a handful of names reallocates as the opportunity set widens. The result is a burst of price discovery that ripples through launch providers, satellite operators, infrastructure suppliers, and niche specialists alike. Investors who understand that dynamic tend to focus less on the giant's first print and more on how the repricing redistributes attention across the names around it.

A Sector Pulled Into the Mainstream

There is also a structural dimension that outlasts any single trading session. Reporting on the SpaceX offering has emphasized an unusually large intended retail allocation — a deliberate effort to put shares in the hands of ordinary investors rather than reserving them almost entirely for institutions. Whether or not those specifics hold at pricing, the signal is meaningful: the sector's flagship is being positioned as a broadly owned, mainstream holding, not a closed institutional club. That ambition, paired with index inclusion sweeping smaller space names into benchmark funds, points to the same destination — space becoming a category that shows up in everyday portfolios, retirement accounts, and index products, not just venture funds and specialist mandates.

For the companies in the sector, mainstream ownership changes the game. It deepens liquidity, broadens the shareholder base, and raises the profile of the entire category — which in turn makes it easier for emerging names to be discovered, researched, and ultimately financed. A rising profile for the sector's giant tends to raise the ceiling for everyone operating credibly beneath it. That is the quiet, compounding benefit of a watershed listing: it does not just value one company; it expands the audience for the whole field.

The Number That Reframes Everything

By the time the week is out, the space sector will have something it has never had: a public, market-set price on its single most important company. That number becomes the gravitational center around which every other valuation in the sector orbits. For investors, the pricing of SpaceX is not the end of the story — it is the moment the whole sector gets a yardstick. And with the broadest U.S. index simultaneously folding space names into trillions in tracked capital, the orbital economy is being measured, valued, and owned by the public market all at once.

CONTINUED … Learn more about Starfighters Space, Inc. at: https://usanewsgroup.com/fjet-landing

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SOURCES:

[1] Starfighters Space, Inc. — "Starfighters Space (NYSE: FJET) Added to Membership of Russell 3000® Index" (Business Wire, June 3, 2026; inclusion effective June 29; CEO Tim Franta quote):
https://finance.yahoo.com/markets/stocks/articles/starfighters-space-nyse-fjet-added-100000658.html

[2] FTSE Russell / Investing.com — 2026 Russell reconstitution detail ($12.2T benchmarked; Russell 3000 up 29% to $75.6T; rank day April 30; SIDU and OPTX also added): https://www.investing.com/news/company-news/starfighters-space-added-to-russell-3000-index-effective-june-29-93CH-4723661

[3] TECHi / Reuters — SpaceX IPO terms (S-1/A June 1; Nasdaq symbol SPCX; reported ~$135/share, pricing targeted June 11, debut June 12; figures as reported, subject to final pricing): https://www.techi.com/spacex-ipo/

[4] Bloomberg — SpaceX record-IPO scale (reported raise up to ~$75B; valuation in the trillions; would rank among the largest offerings ever): https://www.bloomberg.com/graphics/2026-spacex-ipo-stock-market-nasdaq-listings/

[5] CNBC / Benzinga — Voyager Technologies (VOYG) IPO debut, Astrobotic acquisition, Starlab; ASTS spectrum and Russell 1000 addition; sector context: https://www.cnbc.com/quotes/VOYG

[6] Stocktwits — space-sector trading and sentiment coverage into the SpaceX pricing window (ASTS, PL, VOYG and peers): https://stocktwits.com/news-articles/markets/equity/space-stocks-slip-spacex-ipo-buzz-retail-bullish-bear-case/cZ0Sr77ReDq

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This communication is being distributed by Baystreet.ca on behalf of Market IQ Media Group, Inc. ("MIQ"), as a digital media distribution and not as a paid advertisement in the traditional sense. MIQ has been paid a fee for Starfighters Space, Inc. advertising and digital media by Creative Direct Marketing Group ("CDMG"). USA News Group distributes this communication on behalf of MIQ regardless of the brand under which it appears. MIQ does not own any shares of Starfighters Space, Inc. and reserves the right to buy and sell shares of Starfighters Space, Inc. at any time without any further notice. There may be 3rd parties who may have shares of Starfighters Space, Inc. and may liquidate their shares which could have a negative effect on the price of the stock. All material disseminated by MIQ on behalf of Starfighters Space, Inc. has been reviewed and approved by CDMG; this is a digital media distribution.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our publication is not trustworthy unless verified by their own independent research. Comparisons to other companies referenced in this publication are for contextual and illustrative purposes only and do not imply any partnership, endorsement, affiliation, or comparable financial performance. References to third-party companies, indexes, and the SpaceX initial public offering are for context only; MIQ has no relationship with and is not compensated by any of those parties. Forward-looking statements regarding index inclusion, the SpaceX offering, market growth, and company plans are subject to risks and uncertainties, and actual results may differ materially. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Investors watching this debut on June 12 should focus less on the headline and more on what this demand reveals about market structure, competitive positioning, and the ripple effects across publicly traded names.

Retail Gets an Unprecedented Seat at the Table

Starlink Is the Real Asset Underneath the Hype

The Valuation Debate Is Already Splitting Analysts

Publicly Traded Peers Feel the Gravitational Pull

Bottom Line

The SpaceX IPO retail demand number is attention-grabbing. But the investable question is what happens after the opening on June 12. Starlink's profitability provides a credible floor under the story. The AI segment's losses and the 95-times revenue multiple are the ceiling. Retail investors who receive allocations should note that index inclusion rules could create passive fund inflows quickly.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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AST SpaceMobile has scaled manufacturing to over 500,000 square feet and targets production of six fully assembled satellites monthly. Management reaffirmed $150-$200 million 2026 revenue guidance while citing over $1.2 billion in contracted commercial commitments. Blue Origin launch issues increased execution concerns, though Falcon 9 launches for BlueBird 8-10 remain on schedule.

The market is crowding into any stock deemed a winner of the artificial intelligence (AI) revolution. All other stocks are seeing liquidity drained from their share prices if they are unassociated with AI, such as Nu Holdings (NU +4.04%), even though the Latin American digital banking giant is growing like gangbusters and has seen a profit inflection.

Shares of Nu Bank are down about 30% from recent highs. Here are three reasons the stock looks like a screaming bargain for investors right now.

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More Latin American growth The core of Nu's business today is in Brazil, its home market, and Mexico. It operates in Colombia, but that is an inconsequential market for revenue today.

Brazil and Mexico are at two different maturity stages but still have great growth prospects during the next few years. Nu Bank has almost 100 million active customers in Brazil out of a population of 213 million, meaning growth is not going to come from new user acquisition. It is adding new products across its digital banking ecosystem to generate more revenue from each customer. You can see this in the consolidated monthly average revenue per customer, which hit $16 last quarter, up from $3 at the end of 2020.

But in Mexico, Nu Bank still has a long runway to expand its banking service. It has 15 million customers, growing from a standing start a few years ago, compared to Mexico's population of 133 million. It wouldn't be shocking if half the population of Mexico were using a Nu Bank product in one form or another in five to 10 years.

Image source: Getty Images.

A controversial expansion into the U.S. Outside of Brazil, Mexico, and Colombia, Nu's next target is actually the U.S. This was a controversial decision for the bank, as the U.S. is a highly competitive market with the world's biggest banks and many digital disruptors in the same mold as Nu Bank.

Management believes it has an angle worth pursuing in the U.S., though it hasn't yet laid out any specifics. My guess is that it will target lower-income customers, as it has in Brazil and Mexico, with better lending models, and will also focus on the country's growing Latino population. At the same time, Nu will allocate only a small portion of its annual operating budget to the U.S. once it enters the market, which won't weight on its profitability.

If it fails, investors will only see a small, expensive headwind for a few years. But if Nu Bank can expand to millions of customers in the U. S., it has a chance to build a business the same size as its Brazilian segment within the next decade. That is why the company is targeting the country as its fourth market, given its vast economy.

NU Net Income (TTM) data by YCharts.

Underrated efficiency gains What Nu Bank is also underrated for is its ability to operate efficiently at a larger scale. Net income has exploded, up 4,000% during the past five years from close to breakeven to $3.2 billion.

This still underrates the true profit potential for the digital bank. It is spending heavily to market to customers in Mexico and Colombia while spending money to obtain its banking charter in the U.S. Net income grew 41% year over year last quarter, compared to 27% gross profit growth. Expect more of the same in the years ahead, as a similar level of overhead costs is spread around the expanding business.

Right now, Nu Bank has a market cap of about $64 billion. Earnings should keep tracking higher, approaching its current 41% growth rate during the next five years. This could help net income grow from $3.2 billion today to $10 billion in a shorter time than investors think, making the stock a bargain at these prices.

SÃO PAULO--(BUSINESS WIRE)--Nubank today announced the appointment of Rob Livingston as Chief Financial Officer, effective July 13, succeeding Guilherme Lago, who is transitioning to the role of Special Advisor, after five years as CFO and seven years at Nu. Lago will support the transition through August 31, and will remain as a Special Advisor to the Management Team of Nu Holdings and to its Audit and Risk Committee, advising on corporate development and other strategic matters. Livingston wi.

Investing at the crossroads of financial services and technology can be an exciting way to allocate capital. And there might be no two companies grabbing the attention of the investment community quite like Nu Holdings (NU +4.04%) and SoFi Technologies (SOFI +5.04%).

Their share prices have been under pressure in 2026. But these fintech stocks have outperformed the S&P 500 index in the past three years.  For growth investors looking to score huge returns, which of these businesses is the better buy right now?

Image source: The Motley Fool.

Nu Holdings thrives thanks to robust unit economics Nu's growth gets a lot of attention, which isn't surprising. The company's revenue totaled $16.3 billion in 2025. This was up 240% compared to 2022, thanks to a burgeoning customer base. As of March 31, Nu counted 135 million customers, of which 115 million are in Brazil, 15 million are in Mexico, and 5 million are in Colombia. And the business plans to commence operations in the U.S. next year.

Revenue growth has spurred impressive bottom-line performance. Net income surged 41% year over year in Q1 2026. But investors must dig deeper to understand why the business has become so profitable. It comes down to unit economics. Nu generates $15.90 in revenue per active customer, which is significantly higher than the $1 it costs to serve them.

Another factor that is easy to overlook is that Nu doesn't operate any physical bank branches. As a result, it completely avoids the overhead costs associated with it. By running a leaner business model compared to traditional banks, the company can support its bottom line.

Nu's valuation is too hard to ignore. Shares trade 30% below their late January peak (as of May 29). And investors can now buy the stock at a forward price-to-earnings (P/E) ratio of 18.3.

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SoFi Technologies continues to focus on innovation Shares of SoFi have also taken it on the chin. They are 43% off their record, which was set in November last year. Whether it's fears about a possible recession and the impact it could have on the company's financials, disruption from artificial intelligence (AI) displacing knowledge workers, or a March short report calling SoFi's accounting practices into question, investors have had a lot to think about recently.

But now, the valuation has gotten more attractive. This stock can be purchased at a forward P/E multiple of 30.4. This is obviously not as cheap as Nu, but the fundamentals might convince investors to take a closer look.

Like Nu, SoFi is also a fully digital bank and it is focused on the U.S. market, a favorable setup that has propelled earnings in recent years. In 2025, adjusted net income soared 112% compared to 2024. Management projects this figure to rise 72% this year. And between 2025 and 2028, the forecast calls for adjusted earnings per share (EPS) to increase 40% (at the midpoint) on an annualized basis.

SoFi will continue to lean on its ability to innovate, which has become a strength. The business is leveraging AI to improve the personal loan experience, while launching blockchain-based solutions to better serve its users. This will support ongoing success.

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Picking a winner is not easy Nu and SoFi are exciting fintech enterprises that are both operating at a high level, despite what their share prices might suggest. They both present solid opportunities for long-term investors, in my view, so picking a single winner isn't an easy task.

Valuation is a critical variable, however. And since Nu trades at a 40% discount to SoFi, I think it's the better stock to buy.  It will also certainly cater to growth investors. According to analyst estimates, Nu's diluted EPS will grow at a compound annual rate of 35.1% between 2025 and 2028. This creates a wonderful setup to achieve adequate returns.

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Nu Holdings (NU +4.04%), a digital banking provider in Latin America, closed Wednesday at $11.64, down 2.43%. The stock moved lower after another analyst downgraded it, highlighting margin pressure and leadership uncertainty. Investors are watching how the new CFO transition affects profitability trends and future guidance. Trading volume reached 106.4 million shares, about 98% above its three-month average of 53.6 million shares. Nu Holdings IPO'd in 2021 and has grown 13% since going public.

How the markets moved todayThe S&P 500 slipped 0.70% to 7,553, while the Nasdaq Composite fell 0.89% to 26,854. Within digital banking, industry peers Banco Bradesco closed at $3.38 (-3.70%), and Itaú Unibanco finished at $7.59 (-3.44%), underscoring broader weakness across Brazilian financial names.

What this means for investorsNu shares slid 2% today after the stock received another downgrade, this time from Susquehanna. An analyst at the firm flipped their rating on Nu from outperform to neutral while lowering their price target from $18 to $13.

They noted that Nu’s operating margins dropped 760 basis points to 19.2%, and its credit loss provisions rose by 33%, which raises concerns about the company’s expansion efforts -- particularly into Mexico and the U.S.

Further complicating things for Nu, its Brazilian-based CFO stepped down and was replaced by former Visa North America CFO Rob Livingston, prompting Susquehanna to take a wait-and-see approach to how Nu’s push into global banking will unfold.

Trading at just 13 times forward earnings, Nu’s excellent growth is reasonably priced, but the market seems worried about longer-term profitability.

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.

SÃO PAULO--(BUSINESS WIRE)--Nu Holdings Ltd. (NYSE: NU) today announced that its Board of Directors has approved a share repurchase program of up to US$1.0 billion of the Company's Class A ordinary shares, to be conducted over a 12-month period beginning June 4, 2026. The program is the output of a deliberate capital allocation policy. Nu's operations are now generating significant capital, and the Board determined that repurchasing the Company's shares represents an attractive use of that capi.

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