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23Andme Holding Co (MEHCQ)
:MEHCQ
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23andMe Holding
(MEHCQ)
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Rating:41Neutral
Price Target:―
23andMe Holding's overall stock performance is weak, primarily due to significant financial challenges, including declining revenues and persistent net losses. The technical analysis also suggests a bearish trend with no strong momentum to reverse it. The negative valuation metrics further highlight the company's struggles with profitability. Improvements in financial performance and strategic adjustments to reverse negative trends are critical for enhancing investor confidence.
Positive Factors
Business Model Strength
23andMe's diversified revenue streams, including genetic testing kits, subscriptions, and research partnerships, provide a strong foundation for sustainable growth.
Moderate Gross Profit Margin
A moderate gross profit margin of 49.8% indicates that 23andMe can maintain profitability on sales, supporting long-term financial health.
Manageable Leverage
A moderate debt-to-equity ratio suggests that 23andMe has a manageable level of leverage, which can support financial stability and growth.
Negative Factors
Negative Cash Flow
Ongoing negative cash flow indicates reliance on external financing, which can limit financial flexibility and long-term viability.
Persistent Net Losses
Substantial net losses reflect high operating expenses and pose a risk to financial sustainability, necessitating strategic cost management.
Declining Revenue
The significant decline in revenue highlights challenges in maintaining market share and growth, which could impact long-term competitiveness.
23andMe Holding (MEHCQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)N/A
Price to Earnings (P/E)―
Beta (1Y)N/A
Revenue Growth-12.19%
EPS Growth66.26%
CountryUS
EmployeesN/A
SectorHealthcare
Sector Strength45
IndustryN/A
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. VolumeN/A
30 Day Avg. VolumeN/A
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
23andMe Holding Business Overview & Revenue Model
Company Description23andMe Holding Co. is a consumer genetics and research company that operates in the healthcare sector. It offers direct-to-consumer genetic testing services, providing customers with insights into their ancestry, genetic health risks, and wellness traits. Through its platforms, the company empowers individuals to access, understand, and benefit from the human genome, thereby promoting personalized healthcare and fostering genetic research.
How the Company Makes Money23andMe makes money primarily through the sale of genetic testing kits. Customers purchase these kits to learn about their ancestry, genetic health risks, and other personalized insights. The company also generates revenue by offering subscription services for ongoing access to updated genetic data and insights. Additionally, 23andMe partners with pharmaceutical companies and other research organizations, providing aggregated and anonymized genetic data for research purposes. These partnerships contribute to the company's earnings by supporting drug discovery and other scientific endeavors. Furthermore, 23andMe may engage in licensing agreements related to its proprietary technology and data.
23andMe Holding Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative developments. While there were significant achievements in board reconstitution, subscription service growth, and improved financial metrics, the company faced challenges with revenue decline, discontinuation of therapeutic programs, and financial liquidity concerns.Q2-2025 Updates
Positive Updates
Board Reconstitution and Nasdaq Compliance
23andMe reconstituted its Board of Directors with three new Independent Directors and regained compliance with Nasdaq listing standards.
Significant Progress in Subscription Services
The company more than doubled its recurring revenue percentage from 9% in the prior year quarter to over 21% in Q2.
Launch of Total Health Membership Service
Introduced a comprehensive longevity platform combining advanced exome sequencing, lab tests, and genetics-focused clinician guidance.
New Genetic Studies and Reports
Launched studies on GLP-1 efficacy and genetic reports on emotional eating, along with improvements to ancestry composition and historical matches features.
Improved Financial Metrics
Improved GAAP net loss by 21% and adjusted EBITDA by 26% compared to the same period in the prior year.
Negative Updates
Revenue Decline
Revenue for the quarter was $44 million, a decrease of approximately 12% over the same period in the prior year.
Discontinuation of Therapeutic Programs
23andMe discontinued further development of all therapeutic programs and reduced its workforce by approximately 40%.
Financial Liquidity Concerns
The company issued a going concern disclosure, indicating the need for additional liquidity to fund necessary expenditures and financial commitments.
Company Guidance
During the Q2 2025 earnings call, 23andMe provided significant guidance on their financial and strategic direction. The company reported a revenue of $44 million, representing a 12% decrease from the previous year, primarily due to declines in consumer services and research services revenue. Despite this, they achieved a 21% improvement in GAAP net loss and a 26% improvement in adjusted EBITDA compared to the prior year. The restructuring efforts, including reducing their workforce by approximately 40% and discontinuing therapeutic programs, are expected to result in annualized cost savings of at least $35 million. The company aims to focus on increasing subscription revenue, which grew to represent 21% of total revenue, and exploring collaborations in their database business. Additionally, they are working towards out-licensing their Therapeutics programs to ensure continued development outside of 23andMe. With cash and cash equivalents standing at $127 million, 23andMe is prioritizing financial stability and sustainable growth, including regaining compliance with Nasdaq listing requirements and considering raising additional capital.23andMe Holding Financial Statement Overview
Summary
Income Statement
30
Negative
Balance Sheet
45
Neutral
Cash Flow
35
Negative
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23andMe Holding Technical Analysis
Positive
3.20
Price Trends
3.38
Positive
3.74
Negative
3.17
Positive
Market Momentum
0.06
Negative
60.65
Neutral
88.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEHCQ, the sentiment is Positive. The current price of 3.2 is below the 20-day moving average (MA) of 3.24, below the 50-day MA of 3.38, and above the 200-day MA of 3.17, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.65 is Neutral, neither overbought nor oversold. The STOCH value of 88.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MEHCQ.
23andMe Holding Risk Analysis
23andMe Holding disclosed 72 risk factors in its most recent earnings report. 23andMe Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
23andMe Holding Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $55.35B | 55.14 | 64.63% | ― | 8.39% | 21.44% | |
77 Outperform | $995.74M | 16.35 | 24.11% | ― | 14.46% | ― | |
57 Neutral | $839.58M | -19.62 | -3.80% | ― | 13.60% | 74.64% | |
55 Neutral | $1.51B | -13.10 | -12.99% | ― | 10.10% | -44.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $641.31M | -1.60 | -72.52% | ― | 0.21% | -233.51% | |
41 Neutral | ― | ― | -430.33% | ― | -12.19% | 66.26% |
* Healthcare Sector Average
MEHCQ
23andMe Holding
3.60
0.46
14.65%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.