-- Reported total revenue of $102.3 million with 27% year-over-year growth
in exome and genome revenue
-- Reported exome and genome volume growth of 34% year-over-year
-- Reported adjusted gross margin(1) of 69% and adjusted net loss(1) of
$8.2 million
-- Updating full-year 2026 revenue guidance to $475 to $490 million with
exome and genome volume growth of at least 30%
-- Hosting conference call today at 4:30 p.m. ET
GAITHERSBURG, Md.--(BUSINESS WIRE)--May 04, 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 first quarter of 2026.
"GeneDx delivered 34% year-over-year volume growth in exome and genome testing in the first quarter -- a clear signal that there's sustained, strong demand for our services. While our revenue did not reflect the full potential of what this business is capable of, we are adjusting our outlook and are poised to deliver more than 30% volume growth, 70% gross margin, and profitability on an adjusted basis for the year," said Katherine Stueland, CEO of GeneDx. "Leading a generational shift in medicine requires taking some big swings, learning quickly, and moving with urgency to serve this ever-growing patient population. With expectations reset, we've never been more confident about our ability to deliver profitable growth in service of patients and shareholders."
First Quarter 2026 Financial Results (Unaudited)(1)
Revenue
-- Revenue grew to $102.3 million, an increase of 17% year-over-year.
-- Exome and genome test revenue grew to $90.6 million, an increase of 27%
year-over-year.
Exome and genome volume
-- Exome and genome test result volume grew to 27,488, an increase of 34%
year-over-year.
Gross margin
-- Adjusted gross margin remained flat at 69% in the first quarter of
2026.
-- GAAP gross margin was 67%.
Operating expenses
-- Adjusted total operating expenses were $78.1 million, representing 76%
of revenue.
-- Total GAAP operating expenses were $94.4 million.
Net (loss) income
-- Adjusted net loss was $8.2 million compared to adjusted net income of
$9.2 million in the first quarter of 2025.
-- GAAP net loss was $63.3 million.
Cash position
-- Cash, cash equivalents, marketable securities and restricted cash was
$171.7 million as of March 31, 2026.
(1) Adjusted gross margin, adjusted total operating expenses and adjusted
net (loss) income are non-GAAP financial measures. See appendix for a
reconciliation of GAAP to non-GAAP figures presented.
Updated 2026 Guidance
GeneDx has updated its 2026 guidance. Management now expects GeneDx to deliver:
Full Year 2026 Full Year 2026 Second Quarter of 2026
Metric Previous Guidance Updated Guidance Guidance
---------- -------------------- -------------------- --------------------------
Revenue $540 to $555 million $475 to $490 million $110 to $112 million
Growth in 33% to 35% At least 30% Approximately 30,000 tests
exome and
genome
volume
Growth in 33% to 35% At least 20% Approximately $100 million
exome and
genome
revenue
Adjusted At least 70% Approximately 70% Approximately 70%
gross
margin
Adjusted Positive Positive Adj. net loss of
net approximately $5 million
income
(loss)
First Quarter 2026 and Recent Business Highlights
Strategic Expansion and Market Leadership
-- Announced the landmark SAVES-Kids Study, a real-world data Health
Economics and Outcomes Research (HEOR) study showing an average
healthcare cost savings of up to $80,000 for children with
neurodevelopmental disorders in the 12 months following ExomeDx$(TM)$ and
GenomeDx(TM) testing, regardless of the test result.
-- Launched a reflex product, enabling seamless reflexing to genome
testing when exome testing is non-diagnostic.
-- Partnered with CNBC to launch CNBC Cures, a collaborative,
multi-platform initiative aimed at raising awareness for the rare disease
community and improving outcomes for the 30 million Americans affected
by rare diseases.
-- Launched a sponsored genetic testing program with Zevra Therapeutics to
support patients with suspected Niemann-Pick Disease Type C.
-- Expanded Medicaid coverage in Texas, Maine, and Arkansas, resulting in
approximately 4.9 million Medicaid patients gaining access to exome
testing.
Innovation & Clinical Leadership
-- Added to the company's more than 1,100 publications by showcasing 18
pieces of pioneering research at the American College of Medical Genetics
and Genomics (ACMG) Annual Meeting. The research highlighted the scale
and clinical impact of GeneDx Infinity(TM) -- the largest and most
comprehensive rare disease genomic dataset -- and GeneDx's leadership in
bringing exome and genome testing to the standard of care by leveraging
AI, world-class data and clinical expertise, and expert variant
interpretation and classification.
-- Published results from a benchmarking study in the American Journal of
Human Genetics demonstrating HiFi long-read sequencing was successful in
identifying difficult to detect variants using real-world clinical
samples.
-- Published new SeqFirst study data in the American Journal of Medical
Genetics showing that implementing rapid genome sequencing (rWGS) as a
first-tier test in pediatric and cardiac intensive care units
significantly increases diagnostic rates and reduces time to diagnosis by
50%.
-- Presented "Scaling Rare Disease Discovery with AI: From Genomic Data to
Therapeutic Insights" at the Precision Medicine Worldwide Conference
(PMWC), showcasing how GeneDx partners with biopharma to turn genomic
data into actionable solutions -- accelerating discovery, enabling
clinical trials, and advancing the next era of precision medicine.
Webcast and Conference Call Details
GeneDx will host a conference call today, May 4, 2026, at 4:30 p.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/.
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, non-core lease costs, 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 and second quarter 2026 revenue, exome and genome revenue and test volumes, adjusted gross margin and adjusted net income (loss). 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) recalibrating for building long-term, durable performance. 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, 2025, filed with the U.S. Securities and Exchange Commission (the "SEC") on February 23, 2026, our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026, filed with the SEC on May 4, 2026 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(TM) -- the world's largest rare disease genomic dataset. This unparalleled foundation powers GeneDx's ExomeDx(TM) and GenomeDx(TM) 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 1,100 research publications, GeneDx is building the network that will drive the future of genomic precision medicine. For more information, visit genedx.com and connect with us on LinkedIn, Facebook, and Instagram.
Volume & Revenue
1Q26 4Q25 3Q25 2Q25 1Q25
------ ------ ------ ------ ------
Volumes
Whole exome,
whole genome 27,488 27,761 25,702 23,246 20,562
Hereditary
cancer 108 346 1,511 2,677 2,725
Other panels 27,621 30,935 33,003 31,833 28,228
------ ------ ------ ------ ------
Total 55,217 59,042 60,216 57,756 51,515
====== ====== ====== ====== ======
Revenue ($
millions)
Whole exome,
whole genome $ 90.6 $ 104.0 $ 98.9 $ 86.0 $ 71.4
Hereditary
cancer 0.1 0.2 1.2 1.8 2.2
Other panels 10.6 13.1 13.4 12.3 12.1
Data
information 0.8 2.6 1.5 2.0 1.4
Software and
interpretation
services 0.2 1.1 1.7 0.6 --
------ ------ ------ ------ ------
Total $ 102.3 $ 121.0 $ 116.7 $ 102.7 $ 87.1
====== ====== ====== ====== ======
Unaudited Select Financial Information (in thousands)
Three months ended March 31, Three months ended March
2026 31, 2025
---------------------------- --------------------------
GeneDx Other(1) Total GeneDx Other(1) Total
-------- -------- -------- ------- -------- -------
Revenue $101,496 $758 $102,254 $87,115 $-- $87,115
Adjusted
cost of
services 31,613 588 32,201 27,396 -- 27,396
-------- -------- -------- ------- -------- -------
Adjusted
gross
profit $69,883 $170 $70,053 $59,719 $-- $59,719
Adjusted
gross
margin
% 68.9% 68.5% 68.6% 68.6%
(1) For the three months ended March 31, 2026, Other represents revenues
and cost of services from the Fabric Genomics operating segment. For
the three months ended March 31, 2025, Other represents revenues and
cost of services from the Legacy Sema4 diagnostic testing business.
Three months ended March 31, 2026
----------------------------------------------------------------------------------------------------------------------------
Change in FV
Depreciation and Stock-based Restructuring of financial Extinguishment
Reported amortization compensation costs liabilities of debt Other(2) Adjusted
------------ ---------------- ---------------- ----------------- ------------- --------------- --------- ------------
Diagnostic test
revenue $101,299 $ -- $ -- $ -- $ -- $ -- $ -- $101,299
Other revenue 955 -- -- -- -- -- -- 955
------- ------- --- ------- --- ----- ------ ------ ---- -------------- ------- -------
Total revenue 102,254 -- -- -- -- -- -- 102,254
Cost of
services 34,043 (1,462) (380) -- -- -- -- 32,201
------- ------- ------- ----- ------ ------ ---- -------------- ------- -------
Gross profit 68,211 1,462 380 -- -- -- -- 70,053
Gross margin 66.7% 68.5%
Research and
development 19,804 (224) (1,406) (224) -- -- -- 17,950
Selling,
general and
administrative 74,591 (5,123) (7,210) (215) -- -- (1,916) 60,127
Impairment loss 31,287 -- -- -- -- -- (31,287) --
------- ------- --- ------- --- ----- ------ ------ ---- -------------- ------- -------
Loss from
operations (57,471) 6,809 8,996 439 -- -- 33,203 (8,024)
Interest
expense, net (717) -- -- -- -- -- 717 --
Other (expense)
income, net (4,231) -- -- -- (2,540) 6,565 -- (206)
Income tax
expense (897) -- -- -- -- -- 897 --
------- ------- --- ------- --- ----- ------ ------ ---- -------------- ------- -------
Net loss $(63,316) $ 6,809 $ 8,996 $ 439 $(2,540) $ 6,565 $ 34,817 $ (8,230)
======= ======= === ======= === ===== ====== ====== === ============== ======= =======
Basic and
diluted loss
per share(1) $ (2.16) $ (0.28)
Three months ended March 31, 2025
-------------------------------------------------------------------------------------------------------
Change in FV
Depreciation and Stock-based Restructuring of financial
Reported amortization compensation costs liabilities Other(2) Adjusted
----------- ---------------- ---------------- ----------------- ------------ -------- -----------
Diagnostic test
revenue $85,759 $ -- $ -- $ -- $ -- $85,759
Other revenue 1,356 -- -- -- -- -- 1,356
------ ------- --- ------- --- ----- ------ ----------- ------ ------
Total revenue 87,115 -- -- -- -- -- 87,115
Cost of
services 28,639 (1,075) (168) -- -- -- 27,396
------ ------- ------- ----- ------ ----------- ------ ------
Gross profit 58,476 1,075 168 -- -- -- 59,719
Gross margin 67.1% 68.6%
Research and
development 12,577 (372) (419) (28) -- -- 11,758
Selling,
general and
administrative 50,450 (4,231) (3,396) (530) -- (3,265) 39,028
------ ------- ------- ----- ----- ----------- ------ ------
(Loss) income
from
operations (4,551) 5,678 3,983 558 -- 3,265 8,933
Interest
expense, net (640) -- -- -- -- 640 --
Other (expense)
income, net (891) -- -- -- 1,100 30 239
Income tax
expense (447) -- -- -- -- 447 --
------ ------- --- ------- --- ----- ------ ----------- ------ ------
Net (loss)
income $(6,529) $ 5,678 $ 3,983 $ 558 $ 1,100 $ 4,382 $ 9,172
====== ======= === ======= === ===== ====== =========== ====== ======
Basic (loss)
earnings per
share(1) $ (0.23) $ 0.33
Diluted (loss)
earnings per
share(1) $ (0.23) $ 0.31
(1) Basic and diluted (loss) earnings per share are calculated based on
29,335,126 weighted average shares outstanding for the three months
ended March 31, 2026, and 28,147,948 and 29,440,704 weighted average
shares outstanding for the three months ended March 31, 2025,
respectively.
(2) Other represents interest expense, net, income tax expense and non-core
lease costs for all periods presented. For the three months ended March
31, 2026, Other also includes costs related to legal reserves and
impairment of goodwill and intangible assets associated with the Fabric
Genomics acquisition. For the three months ended March 31, 2025, Other
includes transaction costs incurred in connection with the acquisition
of Fabric Genomics.
GeneDx Holdings Corp.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
March 31, 2026 (Unaudited) December 31, 2025
------------------------------ ---------------------
Assets:
Current assets:
Cash and cash
equivalents $ 93,924 $ 104,997
Marketable
securities 76,761 66,285
Accounts
receivable 76,929 74,370
Inventory, net 12,241 13,951
Prepaid expenses
and other
current assets 10,774 8,685
--- --------------------- --------------
Total current
assets 270,629 268,288
Operating lease
right-of-use
assets 34,653 23,412
Property and
equipment, net 50,125 45,693
Goodwill 1,641 13,520
Intangible assets,
net 144,969 168,481
Other assets(1) 4,284 4,316
--- --------------------- --------------
Total assets $ 506,301 $ 523,710
=== ===================== ==============
Liabilities and
Stockholders'
Equity:
Current liabilities:
Accounts payable
and accrued
expenses $ 46,562 $ 57,645
Short-term lease
liabilities 5,129 4,404
Other current
liabilities 35,948 46,859
--- --------------------- --------------
Total current
liabilities 87,639 108,908
Long-term debt, net
of current portion 96,732 48,176
Long-term lease
liabilities 66,331 56,046
Other liabilities 71 1,641
Deferred taxes 1,404 757
--- --------------------- --------------
Total
liabilities 252,177 215,528
--- --------------------- --------------
Stockholders'
Equity:
Preferred stock -- --
Class A common
stock 3 3
Additional paid-in
capital 1,690,249 1,680,738
Accumulated deficit (1,436,811) (1,373,495)
Accumulated other
comprehensive
income 683 936
--- --------------------- --------------
Total
stockholders'
equity 254,124 308,182
--- --------------------- --------------
Total
liabilities
and
stockholders'
equity $ 506,301 $ 523,710
=== ===================== ==============
(1) Other assets includes $1.0 million of restricted cash as of both March
31, 2026 and December 31, 2025.
GeneDx Holdings Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)
Three months ended March 31,
----------------------------------
2026 2025
------------ -----------
Revenue
Diagnostic test revenue $ 101,299 $ 85,759
Other revenue 955 1,356
------------ -----------
Total revenue 102,254 87,115
------------ -----------
Cost of services 34,043 28,639
------------ -----------
Gross profit 68,211 58,476
------------ -----------
Research and development 19,804 12,577
Selling, general and administrative 74,591 50,450
Impairment loss 31,287 --
------------ -----------
Loss from operations (57,471) (4,551)
------------ -----------
Non-operating (expenses) income,
net
Change in fair value of financial
liabilities 2,540 (1,100)
Interest expense, net (717) (640)
Loss on extinguishment of debt (6,565) --
Other (expense) income, net (206) 209
------------ -----------
Total non-operating expense,
net (4,948) (1,531)
------------ -----------
Loss before income taxes (62,419) (6,082)
Income tax expense (897) (447)
------------ -----------
Net loss $ (63,316) $ (6,529)
============ ===========
Weighted-average shares outstanding
of Class A common stock 29,335,126 28,147,948
Basic and diluted loss per share,
Class A common stock $ (2.16) $ (0.23)
GeneDx Holdings Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Three months ended March 31,
--------------------------------------
2026 2025
----------- ----------
Operating activities
Net loss $ (63,316) $ (6,529)
Adjustments to reconcile net loss
to net cash (used in) provided by
operating activities:
Depreciation and amortization
expense 6,809 5,678
Stock-based compensation expense 8,996 3,983
Change in fair value of
financial liabilities (2,540) 1,100
Deferred tax expense 897 447
Change in third party payor
reserves 1,022 1,395
Loss on extinguishment of debt 6,565 --
Impairment loss 31,287 --
Other 1,034 757
Change in operating assets and
liabilities:
Accounts receivable (2,558) (8,557)
Inventory 1,689 (2,032)
Accounts payable and accrued
expenses (13,168) 10,824
Other assets and liabilities (9,125) 3,116
----------- ----------
Net cash (used in) provided by
operating activities (32,408) 10,182
Investing activities
Purchases of marketable securities (20,177) (17,209)
Proceeds from sales of marketable
securities 875 --
Proceeds from maturities of
marketable securities 8,500 13,930
Purchases of property and equipment
and development of internal-use
software (6,453) (6,129)
----------- ----------
Net cash used in investing
activities (17,255) (9,408)
Financing activities
Proceeds from long term debt, net
of issuance costs 96,998 13,894
Proceeds from issuance of common
stock from subscription agreements 476 --
Exercise of stock options 58 735
Repayment of long-term debt,
including prepayment penalty -
Perceptive (54,000) --
Repayment and principal payments
for long-term debt - DECD (4,447) (300)
Finance lease principal payments (495) (611)
----------- ----------
Net cash provided by financing
activities 38,590 13,718
----------- ----------
Net (decrease) increase in cash,
cash equivalents and restricted
cash (11,073) 14,492
Cash, cash equivalents and
restricted cash, at beginning of
period 105,989 86,202
----------- ----------
Cash, cash equivalents and
restricted cash, at end of period
(1) $ 94,916 $ 100,694
=========== ==========
Supplemental disclosures of cash
flow information
Cash paid for interest $ 1,748 $ 1,600
Cash paid for taxes $ 754 $ 206
Lease liability from obtaining
right-of-use asset $ 12,086 $ --
Purchases of property and equipment
in accounts payable and accrued
expenses $ 5,915 $ 2,197
(1) Cash, cash equivalents and restricted cash as of March 31, 2026
excludes marketable securities of $76.8 million.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260504673812/en/
CONTACT: Investor Relations Contact:
Investors@GeneDx.com
Media Contact:
Press@GeneDx.com
(END) Dow Jones Newswires
May 04, 2026 16:05 ET (20:05 GMT)