Shares of GeneDx Holdings (WGS) plummeted 6.63% in Tuesday's pre-market trading session, despite the company reporting better-than-expected third-quarter results and raising its full-year guidance. The sharp decline appears to be primarily driven by the company's announcement of a mixed shelf offering and an additional $100 million stock offering.

GeneDx reported third-quarter adjusted earnings of $0.49 per share, surpassing analysts' expectations of $0.42. Revenue for the quarter came in at $116.7 million, also beating the consensus estimate of $104.67 million. The company raised its full-year 2025 revenue guidance to between $425 million and $428 million, up from its previous range of $400 million to $415 million.

However, investors seemed to focus on the company's filing for a mixed shelf offering with an undisclosed size, as well as an additional offering of Class A common stock of up to $100 million. This potential dilution of existing shareholders' stakes appears to be the primary factor behind the stock's significant decline, overshadowing the positive quarterly results and improved outlook. The market's reaction highlights investors' concerns about the potential impact of the new stock offerings on the company's share value in the near term.