GeneDx Holdings (WGS)
NASDAQ:WGS
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GeneDx Holdings
(NASDAQ:WGS)
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Rating:49Neutral
Price Target:
$41.00
▼(-37.84% Downside)
Action:ReiteratedDate:05/09/26
The score is held back primarily by weak profitability and a renewed return to cash burn, despite strong revenue growth and improved gross margins. Technicals are also notably bearish with the stock far below major moving averages. Earnings-call updates were mixed—good volume/margin momentum and cost actions, but a meaningful guidance cut and execution/mix issues—while the new term loan modestly supports liquidity but adds secured obligations.
Positive Factors
Revenue growth & gross margin
Sustained top-line expansion paired with a roughly 68–70% adjusted gross margin signals durable unit economics for sequencing-based tests. High per-test gross margins create operating leverage as volume scales, supporting a credible path to sustained profitability if revenue-cycle execution and targeted OpEx cuts persist.
Negative Factors
Negative profitability & cash flow
Despite revenue gains, the company remains loss-making and cash negative on a TTM basis. The reversal from positive OCF in 2025 to negative cash flow increases reliance on external liquidity or sustained OpEx reductions, raising funding risk and potentially constraining growth investments until adjusted profitability is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & gross margin
Sustained top-line expansion paired with a roughly 68–70% adjusted gross margin signals durable unit economics for sequencing-based tests. High per-test gross margins create operating leverage as volume scales, supporting a credible path to sustained profitability if revenue-cycle execution and targeted OpEx cuts persist.
Read all positive factors
GeneDx Holdings (WGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.21B
Dividend YieldN/A
Average Volume (3M)666.82K
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth34.09%
EPS Growth-84.19%
CountryUS
Employees1,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-2.66
Shares Outstanding29,688,026
10 Day Avg. Volume649,621
30 Day Avg. Volume666,818
Financial Highlights & Ratios
PEG Ratio2.67
Price to Book (P/B)11.35
Price to Sales (P/S)8.18
P/FCF Ratio245.23
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit4.25
Enterprise Value/Ebitda-102.40
Forecast
1Y Price Target
$91.25Price Target Upside38.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.13
Revenue Forecast (FY)$487.66M
GeneDx Holdings Business Overview & Revenue Model
Company Description
GeneDx Holdings Corp. is a patient centered health intelligence company. It engages in transforming healthcare by applying AI and machine learning to multidimensional, longitudinal clinical and genomic data to build dynamic models of human health ...
How the Company Makes Money
GeneDx primarily makes money by providing clinical genetic testing services and associated interpretation/reporting to healthcare providers and institutions. Revenue is generated on a per-test (or per-order) basis when a patient sample is processe...
GeneDx Holdings Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong operational momentum (34% volume growth, 27% exome/genome revenue growth, healthy ~69% adjusted gross margin, large proprietary dataset, new commercial products and expanded sales coverage) tempered by near-term execution and mix challenges (approximately $12M revenue shortfall in Q1 driven by lower blended ARR and $6.5M non-core misses), a significant Fabric impairment (~$31.3M), and a 12% reduction to prior full-year revenue expectations. Management laid out concrete remediation actions — tighter channel/revenue-cycle management, cost recalibration ($25M OpEx reduction), and focused commercial execution — and provided updated guidance that emphasizes line-of-sight growth and a pathway back to adjusted profitability in 2026, with further ARR improvement expected over multiple quarters as payer coverage and collections improve.Positive Updates
Robust Volume Growth
Test result volume grew 34% year-over-year to 27,488 tests in Q1, demonstrating strong demand across foundational and expansion markets.
Negative Updates
Q1 Revenue Shortfall vs. Expectations
Total Q1 revenue was $102.3 million and management noted total revenue was approximately $12 million lower than expectations, driven by lower-than-expected blended ARR and non-core business shortfalls.
Read all updates
Q1-2026 Updates
Positive
Negative
Robust Volume Growth
Test result volume grew 34% year-over-year to 27,488 tests in Q1, demonstrating strong demand across foundational and expansion markets.
Read all positive updates
Company Guidance
GeneDx narrowed full‑year guidance to $475–$490M (a 12% / ~$65M midpoint reduction), calling for exome/genome volume growth of at least 30% (~126,400 tests), exome/genome revenue growth of at least 20%, adjusted gross margin of ~70% and adjusted profitability for FY2026. For Q2 they guide total revenue of $110–$112M, exome/genome revenue of ≈$100M on ~30,000 tests, ~70% adjusted gross margin and an adjusted net loss of about $5M (with a return to adjusted profitability expected in Q3). Management used Q1 as the reset point — Q1 results were $102.3M total revenue ($90.6M exome/genome, +27%), 27,488 tests (+34%), blended ARR ≈$3,300, adjusted gross margin 69% and an adjusted net loss of $8.2M — and cited drivers of the revision including an estimated $36M impact from blended ARR (≈$200 below expectations and a ~200bps parental‑sample mix headwind), ~$11M from slower expansion market timing, ~$18M from non‑core lines (Fabric, biopharma, other testing), a $2.5M Fabric miss and ~$31.3M non‑cash impairment, and a $25M OpEx reduction to sharpen execution. They also noted product mix metrics informing the guide: outpatient genome was ~40% of volume (≈45% including NICU), exome outpatient ARR ≈$4,000 vs. outpatient genome ARR ≈$2,000, and roughly half of Q1 tests were single‑gene/multi‑gene panels.GeneDx Holdings Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
60
Neutral
Cash Flow
43
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 442.68M | 427.54M | 305.45M | 202.57M | 234.69M | 212.19M |
| Gross Profit | 302.56M | 298.17M | 194.40M | 90.01M | -26.75M | -16.60M |
| EBITDA | -12.55M | 6.63M | -1.26M | -136.46M | -398.20M | -220.75M |
| Net Income | -77.81M | -21.02M | -52.29M | -175.77M | -548.98M | -245.39M |
Balance Sheet | ||||||
| Total Assets | 506.30M | 570.19M | 419.38M | 418.76M | 545.26M | 554.09M |
| Cash, Cash Equivalents and Short-Term Investments | 170.69M | 171.28M | 141.19M | 130.15M | 137.40M | 400.57M |
| Total Debt | 168.19M | 151.95M | 116.17M | 119.77M | 77.13M | 32.85M |
| Total Liabilities | 252.18M | 262.01M | 174.13M | 190.74M | 291.56M | 165.99M |
| Stockholders Equity | 254.12M | 308.18M | 245.25M | 228.02M | 253.71M | 388.10M |
Cash Flow | ||||||
| Free Cash Flow | -28.65M | 14.26M | -33.99M | -185.86M | -333.48M | -211.22M |
| Operating Cash Flow | -9.31M | 33.28M | -28.50M | -180.15M | -319.15M | -190.43M |
| Investing Cash Flow | -69.36M | -61.52M | -30.13M | -43.73M | -141.33M | -20.79M |
| Financing Cash Flow | 72.90M | 48.02M | 44.16M | 186.24M | 197.31M | 493.73M |
GeneDx Holdings Technical Analysis
Neutral
65.96
Price Trends
76.13
Negative
103.77
Negative
110.03
Negative
Market Momentum
-3.51
Negative
45.17
Neutral
59.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WGS, the sentiment is Neutral. The current price of 65.96 is above the 20-day moving average (MA) of 64.85, below the 50-day MA of 76.13, and below the 200-day MA of 110.03, indicating a neutral trend. The MACD of -3.51 indicates Negative momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 59.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WGS.
GeneDx Holdings Risk Analysis
GeneDx Holdings disclosed 71 risk factors in its most recent earnings report. GeneDx Holdings 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
GeneDx Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $10.63B | 14.66 | 16.71% | ― | 17.97% | 290.87% | |
64 Neutral | $967.48M | -59.93 | -0.15% | ― | 8.75% | 86.34% | |
56 Neutral | $2.79B | -50.55 | -2.86% | ― | 2.26% | 86.67% | |
54 Neutral | $369.09M | -4.56 | -116.98% | ― | 20.85% | -18.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $470.17M | -2.40 | -77.89% | ― | -21.26% | -290.08% | |
49 Neutral | $1.21B | -7.44 | -27.50% | ― | 34.09% | -84.19% |
* Healthcare Sector Average
WGS
GeneDx Holdings
40.77
-18.23
-30.90%
EVH
Evolent Health
4.18
-5.13
-55.10%
TXG
10x Genomics
21.60
12.11
127.61%
CERT
Certara
6.31
-5.82
-47.98%
SOPH
SOPHiA GENETICS
5.15
1.97
61.95%
BTSG
BrightSpring Health Services, Inc.
54.83
32.48
145.32%
GeneDx Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
GeneDx Secures New $100 Million Term Loan Facility
Positive
Mar 2, 2026
On February 27, 2026, GeneDx Holdings Corp. entered into a new $100 million term loan agreement with affiliates of Blackstone and other lenders, replacing its prior credit facility dated October 27, 2023. The funding, which carries a floating inte...
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.