GeneDx Reports First Quarter 2025 Financial Results and Business Highlights

Reported first quarter 2025 revenues of $87.1 million with 62% year-over-year growth of exome and genome test revenue

Generated first quarter 2025 adjusted net income(1) of $7.7 million

Announced plans to acquire Fabric Genomics

Raised guidance to deliver between $360 and $375 million in revenue and reaffirmed outlook to deliver exome/genome volume and revenue growth of at least 30% in FY 2025

GeneDx to host conference call today at 8:30 a.m. ET

GAITHERSBURG, Md.--(BUSINESS WIRE)--April 30, 2025-- 

GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic insights, today reported its financial results for the first quarter of 2025.

"Healthcare is at an inflection point where integrating genomic insights into standard care is becoming essential -- both for better clinical outcomes and for saving the healthcare system valuable dollars," said Katherine Stueland, CEO of GeneDx. "The first quarter exceeded our expectations across all measures, headlined by 62% revenue growth in exome/genome and our third consecutive quarter of profitability, demonstrating the leverage in our business model to drive sustained, profitable growth. We are well positioned to transform genomic testing globally, driving improved outcomes on an even larger scale."

"Our business continued to exceed expectations, with volume growth accelerating throughout the quarter," said Kevin Feeley, CFO of GeneDx. "Looking forward, the combination of continued core momentum, the rolling expansion of new indications in the outpatient setting, and the recent launch of a new ultraRapid genome product are expected to drive incremental volume growth opportunities throughout the remainder of 2025 and beyond."

First Quarter 2025 Financial Results (Unaudited)(1)

Revenues

   -- Revenues grew to $87.1 million, an increase of 42% year-over-year 
 
   -- Exome and genome test revenue grew to $71.4 million, an increase of 62% 
      year-over-year 

Exome and genome volume

   -- Exome and genome test results volume grew to 20,562, an increase of 24% 
      year-over-year 
 
   -- Exome and genome represented 40% of all test results, up from 30% in the 
      first quarter of 2024 

Gross margin

   -- Adjusted gross margin was 69%, compared to 61% in the first quarter of 
      2024 
 
          -- Total GAAP gross margin was 67%. 

Operating expenses

   -- Adjusted total operating expenses were $52.3 million, or 60% of revenues 
      in the first quarter of 2025, compared to 74% in the first quarter of 
      2024 
 
          -- Total GAAP operating expenses were $63.0 million. 

Net Income

   -- Adjusted net income was $7.7 million compared to an adjusted net loss of 
      $8.0 million in the first quarter of 2024 
 
          -- GAAP net loss was $6.5 million. 

Cash position

   -- Cash, cash equivalents, marketable securities and restricted cash was 
      $160.2 million as of March 31, 2025. 
 
   -- Cash flow for the first quarter 2025 included: 
 
          -- $4.1 million in cash generated from ordinary operations; and 
 
          -- $13.9 million in proceeds, net of fees, from the issuance of 
             150,000 shares of Class A common stock in connection with sales 
             pursuant to our "at-the-market" offering. 

(1) Adjusted gross margin, adjusted total operating expenses and adjusted net loss are non-GAAP financial measures. See appendix for a reconciliation of GAAP to Non-GAAP figures presented.

GeneDx Full Year 2025 Guidance

GeneDx has updated its full year 2025 guidance. Management expects GeneDx to deliver:

   -- Revenues between $360 to $375 million for full year 2025, inclusive of $3 
      to $5 million in post-close revenue contribution from the planned 
      acquisition of Fabric Genomics, assuming a second quarter 2025 close 
      (previous guidance was revenues between $350 to $360 million); 
 
   -- Growth in exome/genome volume and revenue of at least 30% (unchanged); 
 
   -- Adjusted gross margins between 66%-68% (previous guidance was between 
      65%-67%); and 
 
   -- Profitability with adjusted net income each quarter and for full year 
      2025 (unchanged). 

First Quarter 2025 Business Highlights

Driving sustainable growth and market leadership

   -- Announced plans to acquire Fabric Genomics, which will accelerate 
      GeneDx's entry into a supplemental market of genomic medicine: 
      decentralized testing with centralized intelligence. 
 
   -- Announced ultraRapid Whole Genome Sequencing, offering accelerated, 
      comprehensive and actionable genomic insights for neonatal and pediatric 
      patients in the NICU and PICU in as soon as 48 hours. 
 
   -- Launched Epic Aura, which seamlessly integrates GeneDx exome and genome 
      testing into the native ordering and resulting workflows of many of the 
      largest health systems across the country. 
 
   -- Expanded commercial footprint for exome and genome testing with cerebral 
      palsy $(CP)$ as a new indication, underscoring the importance of improving 
      access to exome and genome testing for patients with CP to shorten the 
      diagnostic odyssey and accelerate the path to treatment. 
 
   -- Expanded commercial footprint for exome and genome testing with Inborn 
      Errors of Immunity (IEIs) as a new indication, empowering ordering 
      clinicians with more accurate and comprehensive genetic insights to 
      better treat this patient population. 
 
   -- Accelerated adoption of exome and genome sequencing coverage by state 
      Medicaid programs, bringing the total states covering exome or genome 
      sequencing in the pediatric outpatient setting to 33 (New Mexico 
      announced April 2025) and the total states covering rapid genome 
      sequencing in the neonatal intensive care unit (NICU) to 14. 
 
   -- Recognized by Fast Company as one of the world's most innovative 
      companies, honoring GeneDx's innovative approach to accelerating genetic 
      diagnosis and transforming the future of healthcare by ending the 
      diagnostic odyssey. 

Advancing the field to accelerate market expansion

   -- Published data from the Seqfirst-neo study, a pioneering study conducted 
      in partnership with Seattle Children's and the University of Washington, 
      revealing that widespread use of rapid genome sequencing (rGS) 
      demonstrates that at least 60% of level IV NICU infants should be 
      receiving rGS. 
 
          -- Seqfirst-neo is the first study to use exclusion, rather than 
             inclusion, criteria for which infants should receive genomic 
             testing in the NICU, setting a new standard of care by enabling 
             neonatologists to more easily identify patients to receive testing, 
             and expanding access to patients who previously would not have 
             been offered testing. 
 
          -- 42% of diagnosed infants would have been missed using conventional 
             NICU protocols (69% of whom were non-white), highlighting the 
             limitations of current diagnostic approaches and the correlated 
             inequity of care. 
 
   -- Showcased key research and innovation at the 2025 American College of 
      Medical Genetics (ACMG) Annual Meeting that demonstrated: 
 
          -- The relative impact of RNAseq across a large cohort of clinically 
             diverse patients receiving exome-based testing for rare diseases 
             was low, and for most patients the key factors in clinically 
             impactful VUS resolution are providing detailed and accurate 
             clinical information, trio-based testing, and selecting a 
             laboratory with an extensive clinical and genomic database. 
 
          -- Parental needs during whole genome sequencing (WGS) are 
             multifaceted and interconnected, with parents' informational, 
             emotional, and logistical needs all suggesting the importance of 
             ongoing, empathetic engagement with healthcare providers. Parental 
             feedback also highlighted the need for peer support from families 
             with either similar genetic or clinical diagnoses or those 
             similarly navigating the WGS process, emphasizing the role of 
             patient advocacy in the diagnostic and treatment journey for 
             children with developmental disorders. 
 
          -- The results of the first 10,000 participants enrolled in the 
             GUARDIAN study demonstrate the feasibility of screening for a 
             targeted set of genes in a diverse newborn population with genomic 
             newborn screening (gNBS). 74.0% of parents consented for their 
             newborn to participate, highlighting the wide acceptance of more 
             advanced and modernized newborn screening with gNBS. 
 
   -- Announced Multiscore, an advanced AI-powered decision support tool 
      designed to revolutionize genetic analysis by improving diagnostic 
      efficiency, streamlining workflows, and enhancing clinical insights. 
 
          -- Through the combination of GeneDx's industry leading proprietary 
             dataset, publicly available data, and the power of AI, Multiscore 
             enables faster, more accurate identification of genetic conditions, 
             providing a scalable solution for clinical interpretation embedded 
             directly within GeneDx's platform, and reducing the time required 
             for manual review by analysts, ultimately shortening the overall 
             turnaround time for delivering results. 

Webcast and Conference Call Details

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April 30, 2025 06:30 ET (10:30 GMT)