GeneDx Reports Third Quarter 2025 Financial Results and Business Highlights
GAITHERSBURG, Md.--( BUSINESS WIRE)--GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic insights, today reported its financial results for the third quarter of 2025.
“GeneDx’s accelerated growth reflects more than business momentum - it’s proof of the profound impact we’re making for families navigating rare disease and the broader transformation underway across healthcare,” said Katherine Stueland, President and CEO of GeneDx. “The FDA’s Breakthrough Device Designation for our ExomeDx™ and GenomeDx™ tests underscores our innovative leadership in delivering faster, more accurate diagnoses when every day matters. Powered by GeneDx Infinity™, we’re helping usher in a new era of proactive, personalized care that begins at birth - advancing precision medicine to improve outcomes and change lives.”
Third Quarter 2025 Financial Results (Unaudited) 1,2
Revenues
Exome and genome volume
Gross margin
Operating expenses
Net Income
Cash position
“The third quarter delivered volume acceleration coupled with gross margin expansion, and we’ve established a powerful scale advantage that sets the stage for profitable growth,” said Kevin Feeley, CFO of GeneDx. “As we capitalize on a rapidly expanding market, we’re investing to unlock sustainable, high growth with attractive margins.”
1.
2.
GeneDx Full Year 2025 Guidance
GeneDx has raised certain elements of its full year 2025 guidance and expects to deliver:
Metric
Previous Guidance
Updated Guidance
Revenue
$400 to $415 million
$425 to $428 million
Growth in exome and genome revenue
48% to 52%
53% to 55%
Growth in exome and genome volume
At least 30%
At least 30%
Adjusted gross margin
68% to 71%
70% to 71%
Adjusted net income
Positive each quarter and for full year
Positive each quarter and for full year
Third Quarter 2025 and Recent Business Highlights
Strategic Expansion and Market Leadership
Innovation & Clinical Leadership
Webcast and Conference Call Details
GeneDx will host a conference call today, October 28, 2025, at 8:30 a.m. Eastern Time. Investors interested in listening to the conference call are required to register online. A live and archived webcast of the event will be available on the “Events” section of the GeneDx investor relations website at https://ir.genedx.com/.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our future performance and our market opportunity, including our expected full year 2025 reported revenue, growth in exome and genome revenue and volume, adjusted gross margin and adjusted net income guidance. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our ability to implement business plans, goals and forecasts, and identify and realize additional opportunities, (ii) the risk of downturns and a changing regulatory landscape in the highly competitive healthcare industry, (iii) the size and growth of the market in which we operate, and (iv) our ability to pursue our new strategic direction. The foregoing list of factors is not exhaustive. A further list and description of risks, uncertainties and other matters can be found in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2025, June 30, 2025 and September 30, 2025, and other documents filed by us from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.
About GeneDx
GeneDx (Nasdaq: WGS) is the global leader in rare disease diagnosis, transforming the way medicine is practiced by making genomics the starting point for health, not the last resort. We bring together unmatched clinical expertise, advanced technology, and the power of GeneDx Infinity™ – the largest rare disease dataset – built over 25 years from millions of genomic tests and deep clinical insights. This unparalleled foundation powers our ExomeDx™ and GenomeDx™ tests, giving clinicians the highest likelihood of delivering a timely, accurate diagnosis. GeneDx is shaping the future of healthcare by moving the standard of care from sick care to proactive healthcare. While our roots are in rare disease diagnosis, our commitment extends beyond – growing with the families we serve – as a trusted partner at every stage of life. For more information, visit genedx.com and connect with us on LinkedIn, Facebook, and Instagram.
Volume & Revenue 1,2
3Q25
2Q25
1Q25
4Q24
3Q24
Volumes
Whole exome, whole genome
25,702
23,246
20,562
20,676
19,262
Hereditary cancer
1,511
2,677
2,725
3,486
4,672
Other panels
33,003
31,833
28,228
30,115
35,095
Total
60,216
57,756
51,515
54,277
59,029
Revenue ($ millions)
Whole exome, whole genome
$
98.9
$
86.0
$
71.4
$
78.8
$
60.0
Hereditary cancer
1.2
1.8
2.2
2.8
3.3
Other panels
13.4
12.3
12.1
12.3
13.8
Data information
1.5
2.0
1.4
1.4
(0.5
)
Software and interpretation services
1.7
0.6
—
—
—
Total
$
116.7
$
102.7
$
87.1
$
95.3
$
76.6
1. Excludes volume and revenue from the exited Legacy Sema4 diagnostic testing business for the third and fourth quarters of 2024.
2. Diagnostic testing volume and revenue amounts for the second quarter of 2025 revised to conform with current period presentation combining GeneDx and Fabric Genomics.
Unaudited Select Financial Information (in thousands)
Three months ended September 30, 2025
Three months ended September 30, 2024
GeneDx
Other 1
Total
GeneDx
Other 1
Total
Revenue
$114,697
$2,046
$116,743
$76,622
$252
$76,874
Adjusted cost of services
30,246
377
30,623
27,370
—
27,370
Adjusted gross profit
$84,451
$1,669
$86,120
$49,252
$252
$49,504
Adjusted gross margin %
73.6%
81.6%
73.8%
64.3%
100.0%
64.4%
1. Other includes revenue and cost of services from the Fabric Genomics operating segment for the three months ended September 30, 2025. For the three months ended September 30, 2024, Other includes revenue from the Legacy Sema4 diagnostic testing business.
Three months ended September 30, 2025
Reported
Depreciation and amortization
Stock-based compensation expense
Restructuring costs
Change in FV of financial liabilities
Other 2
Adjusted
Diagnostic test revenue
$
113,523
$
—
$
—
$
—
$
—
$
—
$
113,523
Other revenue
3,220
—
—
—
—
—
3,220
Total revenue
116,743
—
—
—
—
—
116,743
Cost of services
32,216
(1,374
)
(219
)
—
—
—
30,623
Gross profit
84,527
1,374
219
—
—
—
86,120
Gross margin
72.4
%
73.8
%
Research and development
19,829
(242
)
(1,749
)
196
—
—
18,034
Selling and marketing
23,510
(1,334
)
(1,674
)
(136
)
—
—
20,366
General and administrative
44,439
(3,524
)
(6,944
)
(188
)
—
(974
)
32,809
(Loss) income from operations
(3,251
)
6,474
10,586
128
—
974
14,911
Interest expense, net
(562
)
—
—
—
—
562
—
Other income (expense), net
(3,575
)
—
—
—
3,401
(2
)
(176
)
Income tax expense
(247
)
—
—
—
—
247
—
Net (loss) income
$
(7,635
)
$
6,474
$
10,586
$
128
$
3,401
$
1,781
$
14,735
Basic (loss) earnings per share 1
$
(0.27
)
$
0.51
Diluted (loss) earnings per share 1
$
(0.27
)
$
0.49
Three months ended September 30, 2024
Reported
Depreciation and amortization
Stock-based compensation expense
Restructuring costs
Change in FV of financial liabilities
Other 2
Adjusted
Diagnostic test revenue
$
77,418
$
—
$
—
$
—
$
—
$
—
$
77,418
Other revenue
(544
)
—
—
—
—
—
(544
)
Total revenue
76,874
—
—
—
—
—
76,874
Cost of services
29,045
(1,495
)
(174
)
(6
)
—
—
27,370
Gross profit
47,829
1,495
174
6
—
—
49,504
Gross margin
62.2
%
64.4
%
Research and development
11,665
(222
)
(537
)
—
—
—
10,906
Selling and marketing
17,025
(1,225
)
(394
)
(55
)
—
—
15,351
General and administrative
26,919
(2,987
)
(2,531
)
(308
)
—
—
21,093
(Loss) income from operations
(7,780
)
5,929
3,636
369
—
—
2,154
Interest expense, net
(843
)
—
—
—
—
843
—
Other income (expense), net
264
—
—
—
880
(1,327
)
(183
)
Income tax benefit
47
—
—
—
—
(47
)
—
Net (loss) income
$
(8,312
)
$
5,929
$
3,636
$
369
$
880
$
(531
)
$
1,971
Basic (loss) earnings per share 1
$
(0.31
)
$
0.07
Diluted (loss) earnings per share 1
$
(0.31
)
$
0.07
1. Basic and diluted (loss) earnings per share are calculated based on 28,797,730 and 30,152,510 weighted average shares outstanding for the three months ended September 30, 2025, respectively, and 27,095,986 and 28,836,909 weighted average shares outstanding for the three months ended September 30, 2024, respectively.
2. Other represents interest expense, net, and income tax (expense) benefit for all periods presented. For the three months ended September 30, 2025, Other includes costs related to legal reserves. For the three months ended September 30, 2024, Other includes reserves, net of insurance related to a legal settlement.
GeneDx Holdings Corp.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
September 30, 2025 (Unaudited)
December 31, 2024
Assets:
Current assets:
Cash and cash equivalents
$
95,968
$
85,212
Marketable securities
59,111
55,973
Accounts receivable
60,938
37,629
Inventory, net
10,569
10,650
Prepaid expenses and other current assets
10,997
8,504
Total current assets
237,583
197,968
Operating lease right-of-use assets
24,200
25,613
Property and equipment, net
42,422
32,893
Goodwill
12,798
—
Intangible assets, net
172,585
158,600
Other assets 1
4,314
4,306
Total assets
$
493,902
$
419,380
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable and accrued expenses
$
50,334
$
30,983
Short-term lease liabilities
4,429
3,336
Other current liabilities
32,858
20,498
Total current liabilities
87,621
54,817
Long-term debt, net of current portion
51,579
51,913
Long-term lease liabilities
57,153
60,919
Other liabilities
4,258
5,519
Deferred taxes
1,033
965
Total liabilities
201,644
174,133
Stockholders’ Equity:
Preferred stock
—
—
Class A common stock
2
2
Additional paid-in capital
1,647,083
1,596,889
Accumulated deficit
(1,355,829
)
(1,352,474
)
Accumulated other comprehensive income
1,002
830
Total stockholders’ equity
292,258
245,247
Total liabilities and stockholders’ equity
$
493,902
$
419,380
1. Other assets includes $1.0 million of restricted cash as of both September 30, 2025 and December 31, 2024.
GeneDx Holdings Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)
Three months ended September 30,
Nine months ended September 30,
2025
2024
2025
2024
Revenue
Diagnostic test revenue
$
113,523
$
77,418
$
299,382
$
207,961
Other revenue
3,220
(544
)
7,168
1,849
Total revenue
116,743
76,874
306,550
209,810
Cost of services
32,216
29,045
92,645
81,618
Gross profit
84,527
47,829
213,905
128,192
Research and development
19,829
11,665
47,485
34,134
Selling and marketing
23,510
17,025
61,274
49,695
General and administrative
44,439
26,919
103,988
76,382
Loss (income) from operations
(3,251
)
(7,780
)
1,158
(32,019
)
Non-operating (expenses) income, net
Change in fair value of financial liabilities
(3,401
)
(880
)
(2,320
)
(11,390
)
Interest expense, net
(562
)
(843
)
(2,019
)
(2,334
)
Other (expense) income, net
(174
)
1,144
274
(12,300
)
Total non-operating expense, net
(4,137
)
(579
)
(4,065
)
(26,024
)
Loss before income taxes
(7,388
)
(8,359
)
$
(2,907
)
$
(58,043
)
Income tax (expense) benefit
(247
)
47
(448
)
319
Net loss
$
(7,635
)
$
(8,312
)
$
(3,355
)
$
(57,724
)
Weighted-average shares outstanding of Class A common stock
28,797,730
27,095,986
28,505,657
26,593,877
Basic and diluted loss per share, Class A common stock
$
(0.27
)
$
(0.31
)
$
(0.12
)
$
(2.17
)
GeneDx Holdings Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Nine months ended September 30,
2025
2024
Operating activities
Net loss
$
(3,355
)
$
(57,724
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense
18,343
16,395
Stock-based compensation expense
22,382
6,293
Change in fair value of financial liabilities
2,320
11,390
Deferred tax expense (benefit)
448
(319
)
Provision for excess and obsolete inventory
152
137
Legal reserves
810
12,123
Change in third party payor reserves
8,746
737
Other
2,382
2,639
Change in operating assets and liabilities:
Accounts receivable
(22,799
)
(5,850
)
Inventory
(72
)
(2,131
)
Accounts payable and accrued expenses
5,185
(7,807
)
Other assets and liabilities
1,827
(1,196
)
Net cash provided by (used in) operating activities
36,369
(25,313
)
Investing activities
Acquisition of business, net of cash acquired
(33,195
)
—
Purchases of property and equipment
(14,670
)
(2,441
)
Purchases of marketable securities
(36,535
)
(52,725
)
Proceeds from sales of marketable securities
—
598
Proceeds from maturities of marketable securities
33,955
24,955
Net cash used in investing activities
(50,445
)
(29,613
)
Financing activities
Proceeds from offerings, net of issuance costs
25,568
14,589
Proceeds from issuance of common stock pursuant to employee stock purchase plan
1,262
—
Exercise of stock options
982
247
Long-term debt principal payments
(906
)
(198
)
Finance lease principal payments
(2,074
)
(1,499
)
Net cash provided by financing activities
24,832
13,139
Net increase (decrease) in cash, cash equivalents and restricted cash
10,756
(41,787
)
Cash, cash equivalents and restricted cash, at beginning of period
86,202
100,668
Cash, cash equivalents and restricted cash, at end of period (1)
$
96,958
$
58,881
Supplemental disclosures of cash flow information
Cash paid for interest
$
4,835
$
5,035
Cash paid for taxes
$
1,039
$
910
Stock consideration paid pursuant to exercise of Perceptive warrant
$
—
$
12,586
Purchases of property and equipment in accounts payable and accrued expenses
$
4,472
$
2,612
Assets acquired under capital lease obligations
$
—
$
689
1. Cash, cash equivalents and restricted cash as of September 30, 2025 excludes marketable securities of $59.1 million.