GeneDx Reports Second Quarter 2026 Financial Results

About this update from Genedx Holdings Corp.

GeneDx Holdings Corp. (Nasdaq: WGS), the leader in rare disease diagnosis and improving health through the power of genomic data, today reported its financial results for the second quarter of 2026. “Our team’s unwavering focus and agility drove a strong second quarter. By delivering healthy revenue, volume, and gross margin growth, we successfully navigated our return to profitability,” said Katherine Stueland, CEO of GeneDx. “We are managing the transition to genome testing, making progress on each of our key imperatives — optimizing unit economics, growing utilization, and delivering the best products at unmatched scale — while continuing to extend our industry-leading position in both exome and genome testing to reach as many patients and families as soon as possible.” Second Quarter 2026 Financial Results (Unaudited) (1) Revenue Revenue grew to $114.4 million, an increase of 11% year-over-year. Exome and genome test revenue grew to $100.3 million, an increase of 17% year-over-year. Exome and genome volume Exome and genome test result volume grew to 30,785, an increase of 32% year-over-year. Gross margin Adjusted gross margin of 70% in the second quarter of 2026 is up from 69% in the first quarter of 2026 and compares to 71% in the second quarter of 2025. GAAP gross margin was 68%. Operating expenses Adjusted total operating expenses were $80.3 million, representing 70% of revenue. Total GAAP operating expenses were $95.7 million. Net income Adjusted net income was $0.4 million, up $8.6 million from the first quarter of 2026 and compared to adjusted net income of $16.4 million in the second quarter of 2025. GAAP net loss was $17.7 million. Cash position Cash, cash equivalents, marketable securities and restricted cash was $133.5 million as of June 30, 2026. On August 3, 2026, the Company amended and restated its existing loan agreement with Blackstone, adding an additional $50.0 million term loan facility and increasing the aggregate principal amount available under the facility to $150.0 million. Concurrently, an affiliate of Blackstone agreed to purchase approximately $5.0 million of the Company’s Class A common stock at $61.00 per share in a private placement. Combined with the cash, cash equivalents, marketable securities and restricted cash balance of $133.5 million as of June 30, 2026, the Company’s pro forma cash position following this transaction is approximately $188 million. (1) Adjusted gross margin, adjusted total operating expenses and adjusted net income are non-GAAP financial measures. See appendix for a reconciliation of GAAP to non-GAAP figures presented. GeneDx 2026 Guidance GeneDx has reaffirmed its full year 2026 guidance and has provided guidance for the third quarter of 2026. Management expects GeneDx to deliver: Metric   Full Year 2026 Guidance   Third Quarter 2026 Guidance Revenue   $475 to $490 million   $122 to $124 million Exome and genome volume   At least 30% growth   33,200 tests Exome and genome revenue   At least 20% growth   $110 to $112 million Adjusted gross margin   Approximately 70%   Approximately 70% Adjusted net income   Positive   Approximately $2 million Second Quarter 2026 and Recent Business Highlights Strategic Expansion and Market Leadership Appointed Mark Gardner as President to lead GeneDx’s commercial and operations teams through the next phase of growth, with a focus on strengthening execution, scaling efficiently, and expanding the company’s leadership in genomic medicine. Launched redesigned exome and genome reports to streamline the delivery of genomic insights to non-genetics clinicians as part of a broader suite of customer experience improvements rolling out this summer. Expanded Coverage for Exome and Genome Improved access to exome sequencing in Texas with new Medicaid coverage effective May 1, 2026, building on existing genome sequencing coverage in the state. Received California Medicaid (Medi-Cal) pricing for genome sequencing effective July 1, 2026, with pricing published at 100% of the Medicare rate. Coverage for genome sequencing in California was originally announced as effective November 1, 2025. Secured outpatient genome sequencing coverage from Carelon, the nation’s largest lab benefit manager, opening access to up to 56 million covered lives. The policy is effective June 14, 2026. Expanded the total number of state Medicaid programs covering outpatient exome and/or genome sequencing to 39 following Mississippi Medicaid’s announcement of coverage for both tests effective July 1, 2026. Innovation and Clinical Leadership Contributed to 26 peer-reviewed publications, 41 conference presentations, and 50 abstracts in the first half of 2026, reflecting the depth and breadth of the company’s scientific expertise and its commitment to moving the field forward. Webcast and Conference Call Details GeneDx will host a conference call today, August 3, 2026, at 4:30 p.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/ . Non-GAAP Financial Measures GeneDx believes non-GAAP measures are useful in evaluating its operating performance. GeneDx uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GeneDx believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding certain items such as stock-based compensation expense, depreciation and amortization, restructuring costs, changes in the fair value of financial liabilities, non-core lease costs, and other expenses that the Company believes are not indicative of its ongoing operations. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. 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 expectations for full year and third quarter 2026 revenue, exome and genome revenue and test volumes, adjusted gross margin and adjusted net income. 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) future expansion of insurance coverage for exome and genome testing. 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, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 23, 2026, our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026, filed with the SEC on May 4, 2026, our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026, filed with the SEC on August 3, 2026, 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’s (Nasdaq: WGS) mission is to empower everyone to live their healthiest life through genomics. GeneDx combines unmatched clinical expertise, advanced technology, and the power of GeneDx Infinity™ – the world’s largest rare disease genomic dataset. This unparalleled foundation powers GeneDx’s ExomeDx™ and GenomeDx™ tests – ranked #1 by expert geneticists and granted FDA Breakthrough Device designation – enabling clinicians to deliver precise, fast, and actionable diagnoses. GeneDx Infinity also fuels discovery for biopharma, with the most powerful AI-driven genomic intelligence. A genomics pioneer over the last 25 years, diagnosing more than 4,800 genetic diseases and publishing more than 1,100 research publications, GeneDx is building the network that will drive the future of genomic precision medicine. For more information, visit genedx.com and connect with us on LinkedIn, Facebook, and Instagram. Volume & Revenue   2Q26   1Q26   4Q25   3Q25   2Q25 Volumes                   Whole exome, whole genome   30,785     27,488     27,761     25,702     23,246 Other panels   32,057     27,729     31,281     34,514     34,510 Total   62,842     55,217     59,042     60,216     57,756                     Revenue ($ millions)                   Whole exome, whole genome $ 100.3   $ 90.6   $ 104.0   $ 98.9   $ 86.0 Other panels   11.6     10.7     13.3     14.6     14.1 Data information   2.3     0.8     2.6     1.5     2.0 Software and interpretation services   0.2     0.2     1.1     1.7     0.6 Total $ 114.4   $ 102.3   $ 121.0   $ 116.7   $ 102.7 Unaudited Select Financial Information   Three months ended June 30, 2026   Reported   Depreciation and amortization   Stock-based compensation   Restructuring costs   Change in FV of financial liabilities   Other (2)   Adjusted Diagnostic test revenue $ 111,886     $ —     $ —     $ —     $ —     $ —     $ 111,886   Other revenue   2,554       —       —       —       —       —       2,554   Total revenue   114,440       —       —       —       —       —       114,440   Cost of services   36,202       (1,726 )     (561 )     (47 )     —       —       33,868   Gross profit   78,238       1,726       561       47       —       —       80,572   Gross margin   68.4 %                         70.4 % Research and development   19,656       (271 )     (1,387 )     (1,036 )     —       —       16,962   Selling, general and administrative   76,037       (4,717 )     (4,394 )     (2,212 )     —       (1,353 )     63,361   (Loss) income from operations   (17,455 )     6,714       6,342       3,295       —       1,353       249                               Interest expense, net   (1,185 )     —       —       —       —       1,185       —   Other income (expense), net   382       —       —       —       (220 )     —       162   Income tax benefit   518       —       —       —       —       (518 )     —   Net (loss) income $ (17,740 )   $ 6,714     $ 6,342     $ 3,295     $ (220 )   $ 2,020     $ 411                               Basic (loss) earnings per share (1) $ (0.60 )                       $ 0.01   Diluted (loss) earnings per share (1) $ (0.60 )                       $ 0.01     Three months ended June 30, 2025   Reported   Depreciation and amortization   Stock-based compensation   Restructuring costs   Change in FV of financial liabilities   Other (2)   Adjusted Diagnostic test revenue $ 100,100     $ —     $ —     $ —     $ —     $ —     $ 100,100   Other revenue   2,592       —       —       —       —       —       2,592   Total revenue   102,692       —       —       —       —       —       102,692   Cost of services   31,790       (1,389 )     (193 )     —       —       —       30,208   Gross profit   70,902       1,389       193       —       —       —       72,484   Gross margin   69.0 %                         70.6 % Research and development   15,079       (209 )     (1,422 )     —       —       —       13,448   Selling, general and administrative   46,863       (4,593 )     (6,198 )     (73 )     —       6,937       42,936   Income from operations   8,960       6,191       7,813       73       —       (6,937 )     16,100                               Interest expense, net   (817 )     —       —       —       —       817       —   Other income (expense), net   2,420       —       —       —       (2,181 )     49       288   Income tax benefit   246       —       —       —       —       (246 )     —   Net income $ 10,809     $ 6,191     $ 7,813     $ 73     $ (2,181 )   $ (6,317 )   $ 16,388                               Basic earnings per share (1) $ 0.38                         $ 0.57   Diluted earnings per share (1) $ 0.36                         $ 0.55   (1) Basic and diluted reported loss per share and Basic adjusted earnings per share are calculated based on 29,710,139 weighted average shares outstanding and Diluted adjusted earnings per share are calculated based on 30,144,132 weighted average shares outstanding for the three months ended June 30, 2026. Basic and diluted earnings per share are calculated based on 28,579,704 and 29,753,933 weighted average shares outstanding for the three months ended June 30, 2025, respectively. (2) Other represents interest expense, net, income tax benefit and non-core lease costs for all periods presented. For the three months ended June 30, 2026, Other also includes costs related to legal reserves. For the three months ended June 30, 2025, Other includes transaction costs incurred in connection with the acquisition of Fabric Genomics and a sales-and-use tax refund. Unaudited Select Financial Information   Three months ended March 31, 2026   Reported   Depreciation and amortization   Stock-based compensation   Restructuring costs   Change in FV of financial liabilities   Extinguishment of debt   Other (2)   Adjusted Diagnostic test revenue $ 101,299     $ —     $ —     $ —     $ —     $ —   $ —     $ 101,299   Other revenue   955       —       —       —       —       —     —       955   Total revenue   102,254       —       —       —       —       —     —       102,254   Cost of services   34,043       (1,462 )     (380 )     —       —       —     —       32,201   Gross profit   68,211       1,462       380       —       —       —     —       70,053   Gross margin   66.7 %                             68.5 %                                 Research and development   19,804       (224 )     (1,406 )     (224 )     —       —     —       17,950   Selling, general and administrative   74,591       (5,123 )     (7,210 )     (215 )     —       —     (1,916 )     60,127   Impairment loss   31,287       —       —       —       —       —     (31,287 )     —                                   Loss from operations   (57,471 )     6,809       8,996       439       —       —     33,203       (8,024 )                                 Interest expense, net   (717 )     —       —       —       —       —     717       —   Other (expense) income, net   (4,231 )     —       —       —       (2,540 )     6,565     —       (206 ) Income tax expense   (897 )     —       —       —       —       —     897       —   Net loss $ (63,316 )   $ 6,809     $ 8,996     $ 439     $ (2,540 )   $ 6,565   $ 34,817     $ (8,230 )                                 Basic and diluted loss per share (1) $ (2.16 )                           $ (0.28 ) (1)   Basic and diluted loss per share are calculated based on 29,335,126 weighted average shares outstanding for the three months ended March 31, 2026. (2) For the three months ended March 31, 2026, Other represents interest expense, net, income tax expense and non-core lease costs, costs related to legal reserves, and impairment of goodwill and intangible assets associated with the Fabric Genomics acquisition. GeneDx Holdings Corp. Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts)     June 30, 2026 (Unaudited)   December 31, 2025 Assets:       Current assets:       Cash and cash equivalents $ 60,317     $ 104,997   Marketable securities   72,231       66,285   Accounts receivable   83,610       74,370   Inventory, net   17,820       13,951   Prepaid expenses and other current assets   12,382       8,685   Total current assets   246,360       268,288   Operating lease right-of-use assets   33,535       23,412   Property and equipment, net   54,316       45,693   Goodwill   1,641       13,520   Intangible assets, net   141,350       168,481   Other assets (1)   4,284       4,316   Total assets $ 481,486     $ 523,710   Liabilities and Stockholders’ Equity:       Current liabilities:       Accounts payable and accrued expenses $ 42,091     $ 57,645   Short-term lease liabilities   5,709       4,404   Other current liabilities   26,828       46,859   Total current liabilities   74,628       108,908   Long-term debt, net of current portion   96,836       48,176   Long-term lease liabilities   64,857       56,046   Other liabilities   71       1,641   Deferred taxes   873       757   Total liabilities   237,265       215,528   Stockholders’ Equity:       Preferred stock   —       —   Class A common stock   3       3   Additional paid-in capital   1,698,427       1,680,738   Accumulated deficit   (1,454,551 )     (1,373,495 ) Accumulated other comprehensive income   342       936   Total stockholders’ equity   244,221       308,182   Total liabilities and stockholders’ equity $ 481,486     $ 523,710     (1) Other assets includes $1.0 million of restricted cash as of both June 30, 2026 and December 31, 2025. GeneDx Holdings Corp. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts)     Three months ended June 30,   Six months ended June 30,   2026   2025   2026   2025 Revenue               Diagnostic test revenue $ 111,886     $ 100,100     $ 213,185     $ 185,859   Other revenue   2,554       2,592       3,509       3,948   Total revenue   114,440       102,692       216,694       189,807   Cost of services   36,202       31,790       70,245       60,429   Gross profit   78,238       70,902       146,449       129,378   Research and development   19,656       15,079       39,460       27,656   Selling, general and administrative   76,037       46,863       150,628       97,313   Impairment loss   —       —       31,287       —   (Loss) income from operations   (17,455 )     8,960       (74,926 )     4,409                   Non-operating (expense) income, net               Change in fair value of financial liabilities   220       2,181       2,760       1,081   Interest expense, net   (1,185 )     (817 )     (1,902 )     (1,457 ) Loss on extinguishment of debt   —       —       (6,565 )     —   Other income (expense), net   162       239       (44 )     448   Total non-operating (expense) income, net   (803 )     1,603       (5,751 )     72   (Loss) income before income taxes   (18,258 )     10,563       (80,677 )     4,481   Income tax benefit (expense)   518       246       (379 )     (201 ) Net (loss) income $ (17,740 )   $ 10,809     $ (81,056 )   $ 4,280                   Weighted-average shares outstanding of Class A common stock - Basic   29,710,139       28,579,704       29,523,669       28,365,018   Basic (loss) earnings per share, Class A common stock $ (0.60 )   $ 0.38     $ (2.75 )   $ 0.15   Weighted-average shares outstanding of Class A common stock - Diluted   29,710,139       29,753,933       29,523,669       29,642,555   Diluted (loss) earnings per share, Class A common stock $ (0.60 )   $ 0.36     $ (2.75 )   $ 0.14   GeneDx Holdings Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands)     Six months ended June 30,   2026   2025 Operating activities       Net (loss) income $ (81,056 )   $ 4,280   Adjustments to reconcile net loss to net cash (used in) provided by operating activities:       Depreciation and amortization expense   13,523       11,869   Stock-based compensation expense   15,338       11,796   Change in fair value of financial liabilities   (2,760 )     (1,081 ) Deferred tax expense   379       202   Change in third party payor reserves   (1,022 )     5,014   Loss on extinguishment of debt   6,565       —   Impairment loss   31,287       —   Other   2,157       1,510   Change in operating assets and liabilities:       Accounts receivable   (9,240 )     (9,889 ) Inventory   (3,973 )     (1,404 ) Accounts payable and accrued expenses   (12,566 )     7,199   Other assets and liabilities   (20,021 )     (8,894 ) Net cash (used in) provided by operating activities   (61,389 )     20,602   Investing activities       Acquisition of business, net of cash acquired   —       (33,195 ) Purchases of marketable securities   (29,065 )     (30,770 ) Proceeds from sales of marketable securities   2,272       —   Proceeds from maturities of marketable securities   20,475       26,705   Purchases of property and equipment and development of internal-use software   (16,567 )     (8,498 ) Net cash used in investing activities   (22,885 )     (45,758 ) Financing activities       Proceeds from long term debt, net of issuance costs   96,699       —   Proceeds from offerings, net of issuance costs   —       13,766   Proceeds from issuance of common stock from subscription agreements   476       —   Proceeds from issuance of common stock pursuant to employee stock purchase plan   1,793       1,262   Exercise of stock options   58       800   Repayment of long-term debt, including prepayment penalty - Perceptive   (54,000 )     —   Repayment and principal payments for long-term debt - DECD   (4,447 )     (602 ) Finance lease principal payments   (984 )     (1,162 ) Net cash provided by financing activities   39,595       14,064   Net decrease in cash, cash equivalents and restricted cash   (44,679 )     (11,092 ) Cash, cash equivalents and restricted cash, at beginning of period   105,989       86,202   Cash, cash equivalents and restricted cash, at end of period (1) $ 61,310     $ 75,110           Supplemental disclosures of cash flow information       Cash paid for interest $ 3,813     $ 3,210   Cash paid for taxes $ 2,221     $ 920   Lease liability from obtaining right-of-use asset $ 12,086     $ —   Purchases of property and equipment in accounts payable and accrued expenses $ 3,154     $ 5,752   (1) Cash, cash equivalents and restricted cash as of June 30, 2026 excludes marketable securities of $72.2 million.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260803559557/en/

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