GeneDx Holdings (WGS) shares nosedived 23.06% in pre-market trading on Wednesday, despite reporting better-than-expected first-quarter revenue. The sharp decline suggests investors may be focusing on other aspects of the company's financial performance and outlook.

The genetic testing company announced Q1 2025 revenue of $87.1 million, surpassing the IBES estimate of $79.5 million. However, GeneDx reported a net loss of $6.5 million for the quarter. While the company highlighted an adjusted net income of $7.7 million, the significant difference between GAAP and non-GAAP figures might be raising concerns among investors about the company's path to sustainable profitability.

GeneDx also provided full-year revenue guidance of $360 to $375 million, which appears to be in line with or slightly above the current consensus view of $358.9 million. However, the lack of a clear profitability outlook in the provided information may be contributing to investor unease. The substantial pre-market drop indicates that market participants may be reassessing the company's valuation in light of its current financial position and future prospects, despite the revenue growth.