Full Press Release Details
GAITHERSBURG, Md.--(BUSINESS WIRE)--Insert the "Software and interpretation services" row in the Volume & Revenue(1)table.
The updated release reads:
GeneDx Reports Fourth Quarter and Full Year 2025 Financial Results and Reaffirms Guidance for Full Year 2026
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 fourth quarter and full year of 2025.
“The unmet need for early, accurate genomic diagnosis is enormous, and families are waiting far too long for answers. GeneDx is uniquely positioned to deliver for patients, clinicians, and partners — and our results demonstrate that. Our team is executing at the highest level, our platform continues to scale, and GeneDx InfinityTMgives us a compounding data advantage that strengthens with every test we run,” said Katherine Stueland, President and CEO of GeneDx. “The business has never been in a better position for continued growth and success. As we enter 2026, we will layer new growth drivers onto an already powerful foundation — expanding into large, underpenetrated markets where patients are waiting for a diagnosis that GeneDx can provide today.”
Fourth Quarter and Full Year 2025 Financial Results (Unaudited)1,2
Revenues
Fourth quarter 2025:
Full year 2025:
Exome and genome volume
Fourth quarter 2025:
Full year 2025:
Gross margin
Fourth quarter 2025:
Full year 2025:
Operating expenses
Fourth quarter 2025:
Full year 2025:
Net income (loss)
Fourth quarter 2025:
Full year 2025:
Full year and fourth quarter 2024 revenues, gross margin and net income, all on both a GAAP and adjusted basis, includes $6.8 million of discrete benefit in connection with a multi-year appeal recovery from a single third-party payor. The fourth quarter 2024 benefit was composed of $5.8 million to exome genome revenues and $1.0 million to other test lines.
Cash position
| (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 2026 Guidance
For full year 2026 management expects GeneDx to deliver:
| Metric | Guidance |
| Revenue | $540 to $555 million |
| Growth in exome and genome revenue | 33% to 35% |
| Growth in exome and genome volume | 33% to 35% |
| Adjusted gross margin | At least 70% |
| Adjusted net income | Positive |
Business Highlights
Strategic Expansion & Market Leadership
Innovation & Clinical Leadership
Webcast and Conference Call Details
GeneDx will host a conference call today, February 23, 2026, 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 athttps://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, 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 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) our ability to pursue our new strategic direction. 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, 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’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 1,000 research publications, GeneDx is building the network that will drive the future of genomic precision medicine. For more information, visitgenedx.comand connect with us onLinkedIn,Facebook, and Instagram.
Volume & Revenue(1)
| 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q24 | 2025 YTD | 2024 YTD | ||||||||||||||
| Volumes | ||||||||||||||||||||
| Whole exome, whole genome | 27,761 | 25,702 | 23,246 | 20,562 | 20,676 | 97,271 | 74,547 | |||||||||||||
| Hereditary cancer | 346 | 1,511 | 2,677 | 2,725 | 3,486 | 7,259 | 20,508 | |||||||||||||
| Other panels | 30,935 | 33,003 | 31,833 | 28,228 | 30,115 | 123,999 | 131,177 | |||||||||||||
| Total | 59,042 | 60,216 | 57,756 | 51,515 | 54,277 | 228,529 | 226,232 | |||||||||||||
| Revenue ($ millions) | ||||||||||||||||||||
| Whole exome, whole genome | $ | 104.0 | $ | 98.9 | $ | 86.0 | $ | 71.4 | $ | 78.8 | $ | 360.3 | $ | 233.5 | ||||||
| Hereditary cancer | 0.2 | 1.2 | 1.8 | 2.2 | 2.8 | 5.4 | 15.4 | |||||||||||||
| Other panels | 13.1 | 13.4 | 12.3 | 12.1 | 12.3 | 50.9 | 50.1 | |||||||||||||
| Data information | 2.6 | 1.5 | 2.0 | 1.4 | 1.4 | 7.5 | 3.3 | |||||||||||||
| Software and interpretation services | 1.1 | 1.7 | 0.6 | — | — | 3.4 | — | |||||||||||||
| Total | $ | 121.0 | $ | 116.7 | $ | 102.7 | $ | 87.1 | $ | 95.3 | $ | 427.5 | $ | 302.3 |
| (1) | Excludes volume and revenue from the exited Legacy Sema4 diagnostic testing business for the fourth quarter and full year 2024. |
Unaudited Select Financial Information (in thousands)
| Three months ended December 31, 2025 | Three months ended December 31, 2024 | ||||||||||
| GeneDx | Other(1) | Total | GeneDx | Other(1) | Total | ||||||
| Revenue | $119,492 | $1,497 | $120,989 | $95,286 | $354 | $95,640 | |||||
| Adjusted cost of services | 34,494 | 480 | 34,974 | 28,384 | — | 28,384 | |||||
| Adjusted gross profit (loss) | $84,998 | $1,017 | $86,015 | $66,902 | $354 | $67,256 | |||||
| Adjusted gross margin % | 71.1% | 71.1% | 70.2% | 70.3% |
| Year ended December 31, 2025 | Year ended December 31, 2024 | ||||||||||
| GeneDx | Other(1) | Total | GeneDx | Other(1) | Total | ||||||
| Revenue | $423,088 | $4,451 | $427,539 | $302,293 | $3,157 | $305,450 | |||||
| Adjusted cost of services | 122,100 | 1,101 | 123,201 | 106,376 | 145 | 106,521 | |||||
| Adjusted gross profit (loss) | $300,988 | $3,350 | $304,338 | $195,917 | $3,012 | $198,929 | |||||
| Adjusted gross margin % | 71.1% | 71.2% | 64.8% | 65.1% |
| (1) | For the three months and year ended December 31, 2025, Other includes revenue and cost of services from the Fabric Genomics operating segment. For the three months and year ended December 31, 2024, Other includes revenue from the Legacy Sema4 diagnostic testing business. |
| For the three months ended December 31, 2025 | |||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Other(2) | Adjusted | |||||||||||||||||||||
| Diagnostic test revenue | $ | 117,286 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 117,286 | |||||||||||||
| Other revenue | 3,703 | — | — | — | — | — | 3,703 | ||||||||||||||||||||
| Total revenue | 120,989 | — | — | — | — | — | 120,989 | ||||||||||||||||||||
| Cost of services | 36,721 | (1,531 | ) | (211 | ) | (5 | ) | — | — | 34,974 | |||||||||||||||||
| Gross profit | 84,268 | 1,531 | 211 | 5 | — | — | 86,015 | ||||||||||||||||||||
| Gross margin | 69.6 | % | 71.1 | % | |||||||||||||||||||||||
| Research and development | 24,541 | (358 | ) | (1,776 | ) | (151 | ) | — | — | 22,256 | |||||||||||||||||
| Selling and marketing | 27,131 | (1,333 | ) | (1,521 | ) | (140 | ) | — | — | 24,137 | |||||||||||||||||
| General and administrative | 46,831 | (3,659 | ) | (6,272 | ) | (220 | ) | — | (1,297 | ) | 35,383 | ||||||||||||||||
| (Loss) income from operations | (14,235 | ) | 6,881 | 9,780 | 516 | — | 1,297 | 4,239 | |||||||||||||||||||
| Interest expense, net | (520 | ) | — | — | — | — | 520 | — | |||||||||||||||||||
| Other (expense) income, net | (3,475 | ) | — | — | — | (1,116 | ) | 4,752 | 161 | ||||||||||||||||||
| Income tax benefit | 564 | — | — | — | — | (564 | ) | — | |||||||||||||||||||
| Net (loss) income | $ | (17,666 | ) | $ | 6,881 | $ | 9,780 | $ | 516 | $ | (1,116 | ) | $ | 6,005 | $ | 4,400 | |||||||||||
| Basic (loss) earnings per share(1) | $ | (0.61 | ) | $ | 0.15 | ||||||||||||||||||||||
| Diluted (loss) earnings per share(1) | $ | (0.61 | ) | $ | 0.14 |
| For the three months ended December 31, 2024 | ||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Other(2) | 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 | 28,135 | (3,111 | ) | (1,880 | ) | (249 | ) | — | — | 22,895 | ||||||||||||||||
| Income 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 | ||||||||||||
| Basic earnings per share(1) | $ | 0.20 | $ | 0.63 | ||||||||||||||||||||||
| Diluted earnings per share(1) | $ | 0.18 | $ | 0.59 |
| (1) | Basic and diluted (loss) earnings per share are calculated based on 29,045,526 and 30,365,730 weighted-average shares outstanding for the three months ended December 31, 2025, respectively, and 27,776,757 and 29,595,716 weighted-average shares outstanding for the three months ended December 31, 2024, respectively. | |
| (2) | Other represents interest expense, net, and income tax benefit for all periods presented. For the three months ended December 31, 2025, Other includes legal costs and a reserve for a certain litigation matter. For the three months ended December 31, 2024, Other includes legal costs related to a legal settlement. |
| For the year ended December 31, 2025 | ||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Other(2) | Adjusted | ||||||||||||||||||||
| Diagnostic test revenue | $ | 416,668 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 416,668 | ||||||||||||
| Other revenue | 10,871 | — | — | — | — | — | 10,871 | |||||||||||||||||||
| Total revenue | 427,539 | — | — | — | — | — | 427,539 | |||||||||||||||||||
| Cost of services | 129,366 | (5,369 | ) | (791 | ) | (5 | ) | — | — | 123,201 | ||||||||||||||||
| Gross profit | 298,173 | 5,369 | 791 | 5 | — | — | 304,338 | |||||||||||||||||||
| Gross margin | 69.7 | % | 71.2 | % | ||||||||||||||||||||||
| Research and development | 72,026 | (1,181 | ) | (5,366 | ) | 17 | — | — | 65,496 | |||||||||||||||||
| Selling and marketing | 88,405 | (5,190 | ) | (5,009 | ) | (292 | ) | — | — | 77,914 | ||||||||||||||||
| General and administrative | 150,819 | (13,484 | ) | (20,996 | ) | (995 | ) | — | 4,287 | 119,631 | ||||||||||||||||
| (Loss) income from operations | (13,077 | ) | 25,224 | 32,162 | 1,275 | — | (4,287 | ) | 41,297 | |||||||||||||||||
| Interest expense, net | (2,539 | ) | — | — | — | — | 2,539 | — | ||||||||||||||||||
| Other (expense) income, net | (5,521 | ) | — | — | — | 1,204 | 4,829 | 512 | ||||||||||||||||||
| Income tax benefit | 116 | — | — | — | — | (116 | ) | — | ||||||||||||||||||
| Net (loss) income | $ | (21,021 | ) | $ | 25,224 | $ | 32,162 | $ | 1,275 | $ | 1,204 | $ | 2,965 | $ | 41,809 | |||||||||||
| Basic (loss) earnings per share(1) | $ | (0.73 | ) | $ | 1.46 | |||||||||||||||||||||
| Diluted (loss) earnings per share(1) | $ | (0.73 | ) | $ | 1.40 |
| For the year ended December 31, 2024 | ||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Other(2) | Adjusted | ||||||||||||||||||||
| Diagnostic test revenue | $ | 302,157 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 302,157 | ||||||||||||
| Other revenue | 3,293 | — | — | — | — | — | 3,293 | |||||||||||||||||||
| Total revenue | 305,450 | — | — | — | — | — | 305,450 | |||||||||||||||||||
| Cost of services | 111,053 | (4,047 | ) | (431 | ) | (54 | ) | — | — | 106,521 | ||||||||||||||||
| Gross profit | 194,397 | 4,047 | 431 | 54 | — | — | 198,929 | |||||||||||||||||||
| Gross margin | 63.6 | % | 65.1 | % | ||||||||||||||||||||||
| Research and development | 45,722 | (923 | ) | (1,192 | ) | (151 | ) | — | — | 43,456 | ||||||||||||||||
| Selling and marketing | 67,371 | (4,900 | ) | (1,089 | ) | (548 | ) | — | — | 60,834 | ||||||||||||||||
| General and administrative | 104,517 | (12,083 | ) | (6,426 | ) | (999 | ) | — | — | 85,009 | ||||||||||||||||
| (Loss) income from operations | (23,213 | ) | 21,953 | 9,138 | 1,752 | — | — | 9,630 | ||||||||||||||||||
| Interest expense, net | (3,032 | ) | — | — | — | — | 3,032 | — | ||||||||||||||||||
| Other (expense) income, net | (26,384 | ) | — | — | — | 13,370 | 12,789 | (225 | ) | |||||||||||||||||
| Income tax benefit | 343 | — | — | — | — | (343 | ) | — | ||||||||||||||||||
| Net (loss) income | $ | (52,286 | ) | $ | 21,953 | $ | 9,138 | $ | 1,752 | $ | 13,370 | $ | 15,478 | $ | 9,405 | |||||||||||
| Basic (loss) earnings per share(1) | $ | (1.94 | ) | $ | 0.35 | |||||||||||||||||||||
| Diluted (loss) earnings per share(1) | $ | (1.94 | ) | $ | 0.34 |