GeneDx Reports Third Quarter 2025 Financial Results and Business Highlights

About this update from Genedx Holdings Corp.

Reported third quarter 2025 revenues of $116.7 million with 65% year-over-year growth in exome and genome test revenue Accelerated exome and genome volume growth to 33% year-over-year Expanded adjusted gross margin to 74% and generated adjusted net income1 of $14.7 million for the third quarter 2025 Raised guidance to deliver between $425 and $428 million in revenue with between 53% to 55% full year growth in exome and genome revenue Granted FDA Breakthrough Device Designation for GeneDx ExomeDx™ and GenomeDx™ Leading the nation in genomic newborn screening (gNBS) as the sole commercial testing provider for new gNBS programs, including the NIH BEACONS initiative and Sunshine Genetics Network Hosting 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 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 Revenues grew to $116.7 million , an increase of 52% year-over-year. Exome and genome test revenue grew to $98.9 million , an increase of 65% year-over-year. Exome and genome volume Exome and genome test results volume grew to 25,702, an increase of 33% year-over-year. Exome and genome represented 43% of all tests, up from 33% in the third quarter of 2024. Gross margin Adjusted gross margin expanded to 74%, up from 64% in the third quarter of 2024. GAAP gross margin was 72%. Operating expenses Adjusted total operating expenses were $71.2 million , representing 61% of revenue in the third quarter of 2025, compared to 62% of revenue in the third quarter of 2024. GAAP operating expenses were $87.8 million . Net Income Adjusted net income was $14.7 million compared to $2.0 million in the third quarter of 2024. GAAP net loss was $7.6 million . Cash position Cash, cash equivalents, marketable securities and restricted cash was $156.1 million as of September 30, 2025 . Cash flow for the third quarter 2025 primarily included: $8.8 million in free cash flow generated; and $11.8 million in proceeds, net of fees, from the issuance of 101,367 shares of Class A common stock in connection with sales pursuant to our “at-the-market” offering. “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. Adjusted gross margin, adjusted total operating expenses and adjusted net income/(loss) are non-GAAP financial measures. See appendix for a reconciliation of GAAP to non-GAAP figures presented. 2. Revenue and adjusted gross margin growth rates in the comparative 2024 period exclude revenue and costs of sales from the exited Legacy Sema4 diagnostic testing business. 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 Introduced GeneDx Infinity™ , the largest rare disease dataset, which serves as the foundation for rare disease insights and powers GeneDx's ExomeDx™ and GenomeDx™. Exhibited at the American Academy of Pediatrics (AAP) Annual Meeting, educating pediatricians about the updated AAP guidance recommending exome and genome sequencing as first-tier tests for children with global developmental delay or intellectual disability. Expanded coverage of whole genome sequencing with California Medicaid ( Medi-Cal ), opening access to testing in the nation’s most populous state and bringing the number of states covering exome or genome testing in the outpatient setting to 36. Announced the Autism Partnership Program in partnership with Jaguar Gene Therapy, expanding access to exome and genome testing for patients suspected of having SHANK3-related autism spectrum disorder (ASD) and Phelan-McDermid syndrome - the leading single-gene cause of ASD. Appointed Lisa Gurry as Chief Business Officer and Dr. Mimi Lee as Chief Precision Medicine Officer to accelerate precision medicine across policymakers, health systems, biopharmaceutical companies, advocacy groups, and payers to help more families with the power of data, AI, and clinical expertise. Appointed Dr. Thomas Fuchs , MD, PhD , to the board of directors, contributing his background at the intersection of AI and human health to support GeneDx’s business and mission. Innovation & Clinical Leadership Granted FDA Breakthrough Device Designation for GeneDx ExomeDx™ and GenomeDx™ associated with causes of life-threatening diseases or genetic disorders to aid in diagnosis of symptomatic patients, underscoring GeneDx’s leadership in genomic medicine and critical role in delivering fast, accurate answers for patients with rare diseases. Expanded leadership in genomic newborn screening through participation in key programs, including: Announced participation in the nation’s first multi-state genomic newborn screening initiative, BEACONS ( Building Evidence and Collaboration for GenOmics in Nationwide Newborn Screening) , which was launched with a $14.4 million NIH award to enroll up to 30,000 newborns in as many as 10 states over the next three years. Announced a partnership with Florida’s Sunshine Genetics Network to launch the nation’s first state-backed genomic newborn screening program and offer whole genome sequencing for newborns at select academic medical centers and hospitals, providing families and clinicians the opportunity for early detection and diagnosis of rare diseases. Added to the company’s 1,000+ publications and growing by showcasing pioneering research at the American Society of Human Genetics (ASHG) Annual Meeting including: AI and machine learning approaches in rare disease diagnosis: In a study of over 250,000 exome and genome trios, GeneDx’s machine learning approach addresses challenges of identifying de novo variants with high accuracy and throughput, enabling greater efficiency and scalability. The genetic causes of autism: In a study of over 62,000 individuals affected with autism, researchers highlight a core set of over 250 genes associated with autism and found moderate genetic correlations between autism and schizophrenia, epilepsy, and bipolar disorder. Genomic newborn screening (gNBS): Updated results from the GUARDIAN study reports data from 15,000 newborns and demonstrates high enrollment rates, positive parental experiences, and meaningful follow-up outcomes – reinforcing the value of gNBS in accelerating time to diagnosis. Clinical validation for long read sequencing: Long-read sequencing approaches demonstrate strong potential to improve clinical diagnostics, accurately detecting repeat expansions and resolving difficult-to-sequence regions. Showcased leadership in genomic newborn screening at the International Consortium of Newborn Sequencing (ICoNS) , with data presented on GeneDx’s more than 22,000 newborns sequenced. 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 Other1 Total GeneDx Other1 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 Other2 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 share1 $ (0.27 ) $ 0.51 Diluted (loss) earnings per share1 $ (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 Other2 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 share1 $ (0.31 ) $ 0.07 Diluted (loss) earnings per share1 $ (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 assets1 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 . View source version on businesswire.com : https://www.businesswire.com/news/home/20251028636848/en/ Investor Relations: [email protected] Media: [email protected] Source: GeneDx

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