Genedx Holdings Corp.NASDAQ: WGS

GeneDx Reports First Quarter 2025 Financial Results and Business Highlights

· Issued by GeneDx Holdings Corp. via Business Wire
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Reported first quarter 2025 revenues of $87.1 million with 62% year-over-year growth of exome and genome test revenue

Generated first quarter 2025 adjusted net income1 of $7.7 million

Announced plans to acquire Fabric Genomics

Raised guidance to deliver between $360 and $375 million in revenue and reaffirmed outlook to deliver exome/genome volume and revenue growth of at least 30% in FY 2025

GeneDx to host conference call today at 8:30 a.m. ET

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 first quarter of 2025.

“Healthcare is at an inflection point where integrating genomic insights into standard care is becoming essential – both for better clinical outcomes and for saving the healthcare system valuable dollars,” said Katherine Stueland, CEO of GeneDx. “The first quarter exceeded our expectations across all measures, headlined by 62% revenue growth in exome/genome and our third consecutive quarter of profitability, demonstrating the leverage in our business model to drive sustained, profitable growth. We are well positioned to transform genomic testing globally, driving improved outcomes on an even larger scale.”

“Our business continued to exceed expectations, with volume growth accelerating throughout the quarter,” said Kevin Feeley, CFO of GeneDx. “Looking forward, the combination of continued core momentum, the rolling expansion of new indications in the outpatient setting, and the recent launch of a new ultraRapid genome product are expected to drive incremental volume growth opportunities throughout the remainder of 2025 and beyond.”

First Quarter 2025 Financial Results (Unaudited)1

Revenues

  • Revenues grew to $87.1 million, an increase of 42% year-over-year
  • Exome and genome test revenue grew to $71.4 million, an increase of 62% year-over-year

Exome and genome volume

  • Exome and genome test results volume grew to 20,562, an increase of 24% year-over-year
  • Exome and genome represented 40% of all test results, up from 30% in the first quarter of 2024

Gross margin

  • Adjusted gross margin was 69%, compared to 61% in the first quarter of 2024
    • Total GAAP gross margin was 67%.

Operating expenses

  • Adjusted total operating expenses were $52.3 million, or 60% of revenues in the first quarter of 2025, compared to 74% in the first quarter of 2024
    • Total GAAP operating expenses were $63.0 million.

Net Income

  • Adjusted net income was $7.7 million compared to an adjusted net loss of $8.0 million in the first quarter of 2024
    • GAAP net loss was $6.5 million.

Cash position

  • Cash, cash equivalents, marketable securities and restricted cash was $160.2 million as of March 31, 2025.
  • Cash flow for the first quarter 2025 included:
    • $4.1 million in cash generated from ordinary operations; and
    • $13.9 million in proceeds, net of fees, from the issuance of 150,000 shares of Class A common stock in connection with sales pursuant to our “at-the-market” offering.

(1) Adjusted gross margin, adjusted total operating expenses and adjusted net loss are non-GAAP financial measures. See appendix for a reconciliation of GAAP to Non-GAAP figures presented.

GeneDx Full Year 2025 Guidance

GeneDx has updated its full year 2025 guidance. Management expects GeneDx to deliver:

  • Revenues between $360 to $375 million for full year 2025, inclusive of $3 to $5 million in post-close revenue contribution from the planned acquisition of Fabric Genomics, assuming a second quarter 2025 close (previous guidance was revenues between $350 to $360 million);
  • Growth in exome/genome volume and revenue of at least 30% (unchanged);
  • Adjusted gross margins between 66%-68% (previous guidance was between 65%-67%); and
  • Profitability with adjusted net income each quarter and for full year 2025 (unchanged).

First Quarter 2025 Business Highlights

Driving sustainable growth and market leadership

Advancing the field to accelerate market expansion

  • Published data from the Seqfirst-neo study, a pioneering study conducted in partnership with Seattle Children’s and the University of Washington, revealing that widespread use of rapid genome sequencing (rGS) demonstrates that at least 60% of level IV NICU infants should be receiving rGS.
    • Seqfirst-neo is the first study to use exclusion, rather than inclusion, criteria for which infants should receive genomic testing in the NICU, setting a new standard of care by enabling neonatologists to more easily identify patients to receive testing, and expanding access to patients who previously would not have been offered testing.
    • 42% of diagnosed infants would have been missed using conventional NICU protocols (69% of whom were non-white), highlighting the limitations of current diagnostic approaches and the correlated inequity of care.
  • Showcased key research and innovation at the 2025 American College of Medical Genetics (ACMG) Annual Meeting that demonstrated:
    • The relative impact of RNAseq across a large cohort of clinically diverse patients receiving exome-based testing for rare diseases was low, and for most patients the key factors in clinically impactful VUS resolution are providing detailed and accurate clinical information, trio-based testing, and selecting a laboratory with an extensive clinical and genomic database.
    • Parental needs during whole genome sequencing (WGS) are multifaceted and interconnected, with parents’ informational, emotional, and logistical needs all suggesting the importance of ongoing, empathetic engagement with healthcare providers. Parental feedback also highlighted the need for peer support from families with either similar genetic or clinical diagnoses or those similarly navigating the WGS process, emphasizing the role of patient advocacy in the diagnostic and treatment journey for children with developmental disorders.
    • The results of the first 10,000 participants enrolled in the GUARDIAN study demonstrate the feasibility of screening for a targeted set of genes in a diverse newborn population with genomic newborn screening (gNBS). 74.0% of parents consented for their newborn to participate, highlighting the wide acceptance of more advanced and modernized newborn screening with gNBS.
  • Announced Multiscore, an advanced AI-powered decision support tool designed to revolutionize genetic analysis by improving diagnostic efficiency, streamlining workflows, and enhancing clinical insights.
    • Through the combination of GeneDx’s industry leading proprietary dataset, publicly available data, and the power of AI, Multiscore enables faster, more accurate identification of genetic conditions, providing a scalable solution for clinical interpretation embedded directly within GeneDx’s platform, and reducing the time required for manual review by analysts, ultimately shortening the overall turnaround time for delivering results.

Webcast and Conference Call Details

GeneDx will host a conference call today, April 30, 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 certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our future performance and our market opportunity, including our expected full year 2025 reported revenue and volume guidance, adjusted gross margin and our adjusted net income in 2025. 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, (iv) our ability to pursue our new strategic direction, and (v) our ability to enhance our artificial intelligence tools that we use in our clinical interpretation platform. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 20, 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

At GeneDx (Nasdaq: WGS), we believe that everyone deserves personalized, targeted medical care—and that it all begins with a genetic diagnosis. Fueled by one of the world’s largest rare disease data sets, our industry-leading exome and genome tests translate complex genomic data into clinical answers that unlock personalized health plans, accelerate drug discovery, and improve health system efficiencies. For more information, please visit genedx.com and connect with us on LinkedIn, Facebook, and Instagram.

Volume & Revenue

 

1Q25

4Q24

3Q24

2Q24

1Q24

Volumes

Whole exome, whole genome

20,562

20,676

19,262

18,017

16,592

Hereditary cancer

2,725

3,486

4,672

5,482

6,868

Other panels

28,228

30,115

35,095

34,204

31,763

Total

51,515

54,277

59,029

57,703

55,223

Revenue ($ millions)

Whole exome, whole genome

$

71.4

$

78.8

$

60.0

$

50.7

$

44.0

Hereditary cancer

2.2

2.8

3.3

3.8

5.5

Other panels

12.1

12.3

13.8

13.3

10.7

Data information

1.4

1.4

(0.5

)

1.1

1.3

Total

$

87.1

$

95.3

$

76.6

$

68.9

$

61.5

Unaudited Select Financial Information (in thousands)

 

Three months ended March 31, 2025

Three months ended December 31, 2024

GeneDx

Other1

Total

GeneDx

Other1

Total

Revenue

$87,115

$—

$87,115

$95,286

$354

$95,640

Adjusted cost of services

27,396

—

27,396

28,384

—

28,384

Adjusted gross profit (loss)

$59,719

$—

$59,719

$66,902

$354

$67,256

Adjusted gross margin %

68.6%

68.6%

70.2%

70.3%

Three months ended March 31, 2024

GeneDx

Other1

Total

Revenue

$61,461

$961

$62,422

Adjusted cost of services

24,099

—

24,099

Adjusted gross profit (loss)

$37,362

$961

$38,323

Adjusted gross margin %

60.8%

61.4%

 

(1) Other represents revenue and costs in 2024 associated with the shut down Legacy Sema4 diagnostic testing business.

Three months ended March 31, 2025

Reported

Depreciation and amortization

Stock-based compensation expense

Restructuring costs

Change in FV of warrants

Other1

Adjusted

Diagnostic test revenue

$

85,759

$

—

$

—

$

—

$

—

$

—

$

85,759

Other revenue

1,356

—

—

—

—

—

1,356

Total revenue

87,115

—

—

—

—

—

87,115

Cost of services

28,639

(1,075

)

(168

)

—

—

—

27,396

Gross profit

58,476

1,075

168

—

—

—

59,719

Gross margin

67.1

%

68.6

%

Research and development

12,577

(372

)

(419

)

(28

)

—

—

11,758

Selling and marketing

18,316

(1,225

)

(546

)

(16

)

—

—

16,529

General and administrative

32,134

(3,006

)

(2,850

)

(514

)

—

(1,784

)

23,980

(Loss) profit from operations

(4,551

)

5,678

3,983

558

—

1,784

7,452

Interest expense, net

(640

)

—

—

—

—

640

—

Other (expense) income, net

(891

)

—

—

—

1,100

30

239

Income tax expense

(447

)

—

—

—

—

447

—

Net (loss) income

$

(6,529

)

$

5,678

$

3,983

$

558

$

1,100

$

2,901

$

7,691

Three months ended March 31, 2024

Reported

Depreciation and amortization

Stock-based compensation expense

Restructuring costs

Change in FV of warrants

Other1

Adjusted

Diagnostic test revenue

$

61,104

$

—

$

—

$

—

$

—

$

61,104

Other revenue

1,318

—

—

—

—

—

1,318

Total revenue

62,422

—

—

—

—

—

62,422

Cost of services

25,011

(816

)

(48

)

(48

)

—

—

24,099

Gross profit

37,411

816

48

48

—

—

38,323

Gross margin

59.9

%

61.4

%

Research and development

11,567

(196

)

187

(103

)

—

—

11,455

Selling and marketing

16,085

(1,225

)

20

(400

)

—

—

14,480

General and administrative

23,419

(3,011

)

292

(292

)

—

—

20,408

Loss from operations

(13,660

)

5,248

(451

)

843

—

—

(8,020

)

Interest expense, net

(597

)

—

—

—

—

597

—

Other (expense) income, net

(6,064

)

—

—

—

6,101

—

37

Income tax benefit

82

—

—

—

—

(82

)

—

Net loss

$

(20,239

)

$

5,248

$

(451

)

$

843

$

6,101

$

515

$

(7,983

)

Three months ended December 31, 2024

Reported

Depreciation and amortization

Stock-based compensation expense

Restructuring costs

Change in FV of warrants

Other1

Adjusted

Diagnostic test revenue

$

94,196

$

—

$

—

$

—

$

—

$

—

$

94,196

Other revenue

1,444

—

—

—

—

—

1,444

Total revenue

95,640

—

—

—

—

—

95,640

Cost of services

29,435

(928

)

(123

)

—

—

—

28,384

Gross profit

66,205

928

123

—

—

—

67,256

Gross margin

69.2

%

70.3

%

Research and development

11,588

(294

)

(495

)

(13

)

—

—

10,786

Selling and marketing

17,676

(1,225

)

(347

)

(30

)

—

—

16,074

General and administrative

27,350

(3,111

)

(1,880

)

(249

)

—

—

22,110

Other, net

785

—

—

—

—

—

785

Profit from operations

8,806

5,558

2,845

292

—

—

17,501

Interest expense, net

(698

)

—

—

—

—

698

—

Other (expense) income, net

(2,694

)

—

—

—

1,980

666

(48

)

Income tax benefit

24

—

—

—

—

(24

)

—

Net income

$

5,438

$

5,558

$

2,845

$

292

$

1,980

$

1,340

$

17,453

 

(1) Other represents interest expense, net, income tax (expense) benefit for all periods presented. Other for the three months ended March 31, 2025, includes transaction costs related to the planned acquisition of Fabric Genomics. Other for the three months ended December 31, 2024, includes legal costs related to a legal settlement.

GeneDx Holdings Corp.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

 

March 31, 2025 (Unaudited)

December 31, 2024

Assets:

Current assets:

Cash and cash equivalents

$

99,704

$

85,212

Marketable securities

59,456

55,973

Accounts receivable

45,983

37,426

Inventory, net

12,662

10,650

Prepaid expenses and other current assets

8,011

8,707

Total current assets

225,816

197,968

Operating lease right-of-use assets

24,883

25,613

Property and equipment, net

36,383

32,893

Intangible assets, net

155,094

158,600

Other assets1

4,254

4,306

Total assets

$

446,430

$

419,380

Liabilities and Stockholders’ Equity:

Current liabilities:

Accounts payable and accrued expenses

$

41,862

$

30,044

Short-term lease liabilities

3,124

3,336

Other current liabilities

24,555

21,437

Total current liabilities

69,541

54,817

Long-term debt, net of current portion

51,794

51,913

Long-term lease liabilities

59,918

60,919

Other liabilities

6,619

5,519

Deferred taxes

1,153

965

Total liabilities

189,025

174,133

Stockholders’ Equity:

Preferred stock

—

—

Class A common stock

2

2

Additional paid-in capital

1,615,501

1,596,889

Accumulated deficit

(1,359,003

)

(1,352,474

)

Accumulated other comprehensive income

905

830

Total stockholders’ equity

257,405

245,247

Total liabilities and stockholders’ equity

$

446,430

$

419,380

 

(1) Other assets includes $990 thousand of restricted cash as of both March 31, 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 March 31,

2025

2024

Revenue

Diagnostic test revenue

$

85,759

$

61,104

Other revenue

1,356

1,318

Total revenue

87,115

62,422

Cost of services

28,639

25,011

Gross profit

58,476

37,411

Research and development

12,577

11,567

Selling and marketing

18,316

16,085

General and administrative

32,134

23,419

Loss from operations

(4,551

)

(13,660

)

Non-operating income (expenses), net

Change in fair value of warrants

(1,100

)

(6,101

)

Interest expense, net

(640

)

(597

)

Other income, net

209

37

Total non-operating expenses, net

(1,531

)

(6,661

)

Loss before income taxes

$

(6,082

)

$

(20,321

)

Income tax (expense) benefit

(447

)

82

Net loss

$

(6,529

)

$

(20,239

)

Weighted average shares outstanding of Class A common stock

28,147,948

26,062,170

Basic and diluted loss per share, Class A common stock

$

(0.23

)

$

(0.78

)

GeneDx Holdings Corp.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

Three months ended March 31,

2025

2024

Operating activities

Net loss

$

(6,529

)

$

(20,239

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization expense

5,678

5,248

Stock-based compensation expense

3,983

(451

)

Change in fair value of warrants

1,100

6,101

Deferred tax expense

447

(82

)

Change in third party payor reserves

1,395

(193

)

Other

757

886

Change in operating assets and liabilities:

Accounts receivable

(8,557

)

4,220

Inventory

(2,032

)

(2,877

)

Accounts payable and accrued expenses

10,824

(4,733

)

Other assets and liabilities

3,116

(4,293

)

Net cash provided by (used in) operating activities

10,182

(16,413

)

Investing activities

Purchases of property and equipment

(6,129

)

(443

)

Purchases of marketable securities

(17,209

)

(5,167

)

Proceeds from sales of marketable securities

—

598

Proceeds from maturities of marketable securities

13,930

5,855

Net cash (used in) provided by investing activities

(9,408

)

843

Financing activities

Proceeds from offerings, net of issuance costs

13,894

—

Exercise of stock options

735

24

Long-term debt principal payments

(300

)

—

Finance lease payoff and principal payments

(611

)

(462

)

Net cash provided by (used in) financing activities

13,718

(438

)

Net increase (decrease) in cash, cash equivalents and restricted cash

14,492

(16,008

)

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)

$

100,694

$

84,660

Supplemental disclosures of cash flow information

Cash paid for interest

$

1,600

$

2,019

Cash paid for taxes

$

206

$

300

Purchases of property and equipment in accounts payable and accrued expenses

$

2,197

$

36

 

(1) Cash, cash equivalents and restricted cash at March 31, 2025 excludes marketable securities of $59.5 million.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250430453841/en/

Investor Relations Contact: Investors@GeneDx.com

Media Contact: Press@GeneDx.com

Source: GeneDx