GeneDx Holdings (WGS)
NASDAQ:WGS
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GeneDx Holdings
(NASDAQ:WGS)
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Rating:62Neutral
Price Target:
$90.00
▲(34.43% Upside)
Action:ReiteratedDate:03/02/26
The score is driven by a strong operational/financial turnaround (margin expansion and positive cash generation) and upbeat 2026 guidance from the latest earnings call, but is held back by a sharply bearish technical setup (price below all key moving averages with weak momentum) and limited valuation support given ongoing GAAP losses (negative P/E).
Positive Factors
Margin & Cash Flow Improvement
Sustained ~70% adjusted gross margins and positive operating/ free cash flow reflect improved unit economics and scalable testing operations. This durable cash generation reduces reliance on external financing, funds reinvestment in commercial expansion, and supports margin sustainability over multiple quarters.
Negative Factors
GAAP Profitability & EBIT
GAAP losses and negative EBIT mean full accounting profitability hasn't completed, limiting retained earnings and investor flexibility. Persistent small GAAP losses can constrain conservative lenders, impair long-term ROE normalization, and leave less buffer versus reimbursement or operational shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin & Cash Flow Improvement
Sustained ~70% adjusted gross margins and positive operating/ free cash flow reflect improved unit economics and scalable testing operations. This durable cash generation reduces reliance on external financing, funds reinvestment in commercial expansion, and supports margin sustainability over multiple quarters.
Read all positive factors
GeneDx Holdings (WGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.96B
Dividend YieldN/A
Average Volume (3M)727.62K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth50.50%
EPS GrowthN/A
CountryUS
Employees1,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding29,288,738
10 Day Avg. Volume639,723
30 Day Avg. Volume727,622
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 Cap0.94
Enterprise Value/Revenue4.31
Enterprise Value/Gross Profit6.30
Enterprise Value/Ebitda278.27
Forecast
1Y Price Target
$154.13Price Target Upside130.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.79
Revenue Forecast (FY)$550.26M
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 related genomic interpretation that are ordered by clinicians for patients. Revenue is generated when tests are performed and reported, with payment typically coming f...
GeneDx Holdings Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: sizable revenue and margin expansion in 2025, meaningful exome/genome ARR improvement, positive adjusted net income, a large proprietary dataset (INFINITY), an FDA Breakthrough Designation, and an explicit plan and guidance for 2026 with continued investments to scale. The principal risks are near-term seasonality and weather, reimbursement and denial uncertainty in new outpatient markets, short-term mix and genome cost pressures, and heavy front-loaded commercial investments that compress near-term operating results. Overall, the positives (robust growth, margin expansion, profitable adjusted results, strategic assets and clear growth plan) materially outweigh the execution and policy risks called out.Positive Updates
Strong Revenue Growth
Q4 revenue of $121,000,000 and full-year 2025 revenue of $428,000,000. Management cites exome and genome revenue growth (CEO stated 54% for the year) and CFO reported total company revenue up 27% year-over-year.
Negative Updates
Short-term Seasonality and Weather Disruption
Q1 seasonality (deductible resets) and January storms cost a full operating day of volume; management expects Q1 to be the weakest quarter with ~5% lower collection rates vs Q4 and Q1 volumes potentially down ~300–400 tests sequentially (CFO cited baseline Q1 volume guidance anchored at 33% year-over-year).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Q4 revenue of $121,000,000 and full-year 2025 revenue of $428,000,000. Management cites exome and genome revenue growth (CEO stated 54% for the year) and CFO reported total company revenue up 27% year-over-year.
Read all positive updates
Company Guidance
GeneDx reaffirmed full‑year 2026 guidance of $540–$555 million in total revenues and exome & genome volume growth of 33%–35% (with a baseline 33% for Q1), which they say would equate to roughly +32,000 tests versus fiscal 2025; Q4 revenue was $121.0M and FY2025 revenue $428.0M, with Q4 exome/genome revenue of $104.0M (+32% YoY; organic exome/genome growth 42% excl. a $6.8M one‑time payer recovery), Q4 exome/genome volume of 27,761 and sequential volume acceleration through 2025 (Q1 +24% → Q2 +29% → Q3 +33% → Q4 +34%); ARR for exome/genome was ~$3,750 in Q4 (vs $3,000 in 2024 and $2,500 in 2023); total company adjusted gross margin was 71% (FY2023 45%, FY2024 65%), exome/genome gross margin in the 80s, and adjusted net income was $4.4M in Q4 and $4.8M for FY2025; for 2026 they expect ~70% adjusted gross margin, adjusted net income positive each quarter (Q1 near breakeven) and operating margin building toward double digits by Q4, with growth contributions of ~25%–27% from foundational markets, ~7%–8% from expansion markets and ~1% from future markets, while materially scaling commercial coverage (adding roughly 100 new sales reps, dedicated teams such as a 50‑person pediatrics force, ~10 NICU reps, ~10 prenatal reps and ~5 international reps) and leveraging INFINITY ( >2.5M rare tests, >1.0M exomes/genomes, >8.0M phenotypic data points, >60% with parental data, >50% non‑European).GeneDx Holdings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
73
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 427.54M | 305.45M | 202.57M | 234.69M | 212.19M |
| Gross Profit | 298.17M | 194.40M | 90.01M | -26.75M | -16.60M |
| EBITDA | 6.63M | -1.26M | -136.46M | -398.20M | -220.75M |
| Net Income | -21.02M | -52.29M | -175.77M | -548.98M | -245.39M |
Balance Sheet | |||||
| Total Assets | 570.19M | 419.38M | 418.76M | 545.26M | 554.09M |
| Cash, Cash Equivalents and Short-Term Investments | 171.28M | 141.19M | 130.15M | 137.40M | 400.57M |
| Total Debt | 151.95M | 116.17M | 119.77M | 77.13M | 32.85M |
| Total Liabilities | 262.01M | 174.13M | 190.74M | 291.56M | 165.99M |
| Stockholders Equity | 308.18M | 245.25M | 228.02M | 253.71M | 388.10M |
Cash Flow | |||||
| Free Cash Flow | 14.26M | -33.99M | -185.86M | -333.48M | -211.22M |
| Operating Cash Flow | 33.28M | -28.50M | -180.15M | -319.15M | -190.43M |
| Investing Cash Flow | -61.52M | -30.13M | -43.73M | -141.33M | -20.79M |
| Financing Cash Flow | 48.02M | 44.16M | 186.24M | 197.31M | 493.73M |
GeneDx Holdings Technical Analysis
Negative
66.95
Price Trends
87.84
Negative
115.20
Negative
111.08
Negative
Market Momentum
-5.98
Positive
34.39
Neutral
7.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WGS, the sentiment is Negative. The current price of 66.95 is below the 20-day moving average (MA) of 77.89, below the 50-day MA of 87.84, and below the 200-day MA of 111.08, indicating a bearish trend. The MACD of -5.98 indicates Positive momentum. The RSI at 34.39 is Neutral, neither overbought nor oversold. The STOCH value of 7.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $8.67B | 39.79 | 10.71% | ― | 17.23% | ― | |
62 Neutral | $1.96B | -166.38 | -7.41% | ― | 50.50% | ― | |
61 Neutral | $970.75M | -885.94 | -0.15% | ― | 11.47% | ― | |
55 Neutral | $2.67B | -46.73 | -5.69% | ― | 1.92% | 59.18% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $338.28M | -3.99 | -116.98% | ― | 13.66% | -2.65% | |
45 Neutral | $253.42M | -0.85 | -69.22% | ― | -16.65% | -71.92% |
* Healthcare Sector Average
WGS
GeneDx Holdings
66.95
-27.39
-29.03%
EVH
Evolent Health
2.38
-7.25
-75.29%
TXG
10x Genomics
20.91
11.50
122.21%
CERT
Certara
6.10
-4.02
-39.72%
SOPH
SOPHiA GENETICS
4.72
1.04
28.26%
BTSG
BrightSpring Health Services, Inc.
44.82
26.41
143.45%
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...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
GeneDx Reports Strong 2025 Results and 2026 Growth Outlook
Positive
Jan 12, 2026
On January 12, 2026, GeneDx reported preliminary, unaudited 2025 results showing revenues of about $427 million, up 41% year over year, driven by approximately $360 million in exome and genome revenue, which rose 54%, and test volumes that grew mo...
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.