GeneDx Holdings (WGS) AI Stock Analysis

• Market Cap: $4.04B
• Dividend Yield: N/A
• Average Volume (3M): 577.40K
• Price to Earnings (P/E): 2317.2
• Beta (1Y): 1.58
• Revenue Growth: 50.50%
• EPS Growth: N/A
• Country: US
• Employees: 1,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.49
• Shares Outstanding: 28,904,590
• 10 Day Avg. Volume: 780,279
• 30 Day Avg. Volume: 577,400
• PEG Ratio: 0.54
• Price to Book (P/B): 8.43
• Price to Sales (P/S): 6.77
• P/FCF Ratio: -60.81
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 7.61
• Enterprise Value/Gross Profit: 10.93
• Enterprise Value/Ebitda: 96.23
• 1Y Price Target: $155.24
• Price Target Upside: 11.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $149.00 ▲(6.63% Upside)

GeneDx Holdings' overall stock score is driven primarily by its strong financial performance and positive earnings call, which highlight significant revenue growth and improved margins. The technical analysis supports a bullish trend, although caution is advised due to overbought signals. The high P/E ratio suggests overvaluation, which tempers the overall score. The absence of corporate events does not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth of 52% YoY indicates strong demand for GeneDx's services, suggesting robust market expansion and increasing adoption of their genetic testing solutions.

FDA Breakthrough Designation

The FDA breakthrough designation validates GeneDx's technology as a leader in genetic testing, potentially enhancing its competitive position and driving future growth.

Improved Gross Margins

Improved gross margins to 74% reflect effective cost management and pricing strategies, enhancing profitability and financial health over the long term.

Negative Factors

Potential ASP Decline

Potential declines in ASPs could pressure future revenue growth and margins, affecting profitability if not offset by volume increases or cost reductions.

NICU Underpenetration

Significant underpenetration in the NICU market represents a missed opportunity for growth, indicating challenges in market expansion and adoption.

Discontinued Hereditary Cancer Offerings

Discontinuing hereditary cancer offerings may limit product diversity and revenue streams, potentially impacting the company's market position in genetic testing.

GeneDx Holdings Business Overview & Revenue Model

Company Description

GeneDx Holdings (WGS) is a leading genomic services company specializing in providing comprehensive genetic testing solutions for rare and inherited diseases. Operating primarily in the healthcare and biotechnology sectors, GeneDx offers a range of products and services including whole exome sequencing, whole genome sequencing, and targeted gene panels. The company focuses on delivering high-quality genomic data to clinicians and researchers, enabling improved patient care and advancing the understanding of genetic disorders.

How the Company Makes Money

GeneDx generates revenue primarily through the sale of its genetic testing services to healthcare providers, including hospitals, clinics, and genetic counselors. The company's revenue model is based on a fee-for-service structure, where clients pay for each genetic test conducted. Key revenue streams include whole genome sequencing tests, targeted gene panels, and consultation services that accompany the testing. Additionally, GeneDx may benefit from collaborations and partnerships with pharmaceutical companies and research institutions, which can provide funding for research initiatives and expand their testing capabilities. The company also engages in billing insurance providers, which can lead to reimbursement for services rendered, further contributing to its earnings.

GeneDx Holdings Financial Statement Overview

Summary

GeneDx Holdings has shown significant improvement in its income statement metrics over the TTM period. The gross profit margin improved to 69.65%, indicating strong cost management and pricing strategies. The net profit margin turned positive at 0.52%, a notable recovery from previous losses. Revenue growth rate is robust at 11.00%, reflecting successful business expansion. However, EBIT and EBITDA margins remain relatively low at 3.77% and 5.33%, respectively, suggesting room for operational efficiency improvements. The balance sheet is stable with a debt-to-equity ratio of 0.21, indicating conservative leverage. The return on equity (ROE) is modest at 0.78%, reflecting the early stages of profitability. The equity ratio stands at 59.18%, showing a strong equity base relative to total assets. Cash flow metrics show substantial improvement, with a 166.21% increase in free cash flow, indicating improved cash generation capabilities.

Income Statement

GeneDx Holdings has shown significant improvement in its income statement metrics over the TTM period. The gross profit margin improved to 69.65%, indicating strong cost management and pricing strategies. The net profit margin turned positive at 0.52%, a notable recovery from previous losses. Revenue growth rate is robust at 11.00%, reflecting successful business expansion. However, EBIT and EBITDA margins remain relatively low at 3.77% and 5.33%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet of GeneDx Holdings is stable with a debt-to-equity ratio of 0.21, indicating conservative leverage. The return on equity (ROE) is modest at 0.78%, reflecting the early stages of profitability. The equity ratio stands at 59.18%, showing a strong equity base relative to total assets. Overall, the balance sheet reflects a solid financial position with manageable debt levels.

Cash Flow

GeneDx Holdings has demonstrated impressive growth in free cash flow, with a 166.21% increase in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.25, suggesting that cash flow from operations is still catching up with net income. The free cash flow to net income ratio of 0.70 indicates a healthy conversion of profits into cash, although there is room for further improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	402.19M	305.45M	202.57M	234.69M	212.19M	179.32M
Gross Profit	280.11M	194.40M	90.01M	-26.75M	-16.60M	4.03M
EBITDA	31.82M	-1.26M	-136.46M	-398.20M	-220.75M	-227.13M
Net Income	2.08M	-52.29M	-175.77M	-548.98M	-245.39M	-241.34M
Balance Sheet
Total Assets	493.90M	419.38M	473.67M	490.94M	554.09M	251.64M
Cash, Cash Equivalents and Short-Term Investments	155.08M	141.19M	130.15M	123.93M	400.57M	108.13M
Total Debt	61.58M	116.17M	119.77M	77.13M	11.00M	45.02M
Total Liabilities	201.64M	174.13M	245.66M	237.24M	165.99M	581.69M
Stockholders Equity	292.26M	245.25M	228.02M	253.71M	388.10M	-330.05M
Cash Flow
Free Cash Flow	15.47M	-33.99M	-185.86M	-333.48M	-211.22M	-125.10M
Operating Cash Flow	22.08M	-28.50M	-180.15M	-319.15M	-190.43M	-93.13M
Investing Cash Flow	-50.96M	-30.13M	-43.73M	-141.33M	-20.79M	-31.97M
Financing Cash Flow	55.85M	44.16M	186.24M	197.31M	493.73M	129.06M

GeneDx Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WGS, the sentiment is Positive. The current price of 139.73 is above the 20-day moving average (MA) of 130.31, above the 50-day MA of 125.67, and above the 200-day MA of 97.64, indicating a bullish trend. The MACD of 5.13 indicates Negative momentum. The RSI at 66.21 is Neutral, neither overbought nor oversold. The STOCH value of 72.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WGS.

GeneDx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WGS	68 Neutral	$4.04B	2,317.25	0.84%	―	50.50%	―
BTSG	67 Neutral	$5.78B	53.47	4.25%	―	17.23%	―
TXG	60 Neutral	$1.90B	―	-10.12%	―	1.92%	59.18%
CERT	58 Neutral	$1.38B	128.64	1.03%	―	11.47%	―
SOPH	57 Neutral	$316.27M	-4.26	-86.09%	―	13.66%	-2.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVH	49 Neutral	$582.84M	―	-13.63%	―	-16.65%	-71.92%

GeneDx Holdings Corporate Events

Genedx Holdings Corp. Maintains Stable Risk Profile in 2025 Reports

Genedx Holdings Corp. has not reported any significant changes to its risk factors as previously disclosed in their 2024 Form 10-K and subsequent quarterly reports for 2025. These documents, filed with the SEC, continue to outline the company’s risk landscape, indicating stability in their risk profile. This consistency suggests that the company is maintaining its current risk management strategies without introducing new material risks. Investors and stakeholders should refer to these filings for a comprehensive understanding of the company’s risk factors.

GeneDx Reports Strong Q3 2025 Financial Growth

GeneDx Holdings Corp., a leader in genomic insights, focuses on improving health outcomes through advanced genomic testing, particularly in rare disease diagnosis. In its third quarter of 2025, GeneDx reported significant financial growth, with revenues reaching $116.7 million, marking a 52% increase year-over-year. The company also achieved a 65% rise in exome and genome test revenue and expanded its adjusted gross margin to 74%. Notably, GeneDx received FDA Breakthrough Device Designation for its ExomeDx™ and GenomeDx™ tests, highlighting its innovative edge in genomic medicine. Key financial metrics include an adjusted net income of $14.7 million and a robust cash position of $156.1 million. The company also raised its full-year revenue guidance to between $425 and $428 million, reflecting anticipated growth in exome and genome testing. Looking ahead, GeneDx aims to capitalize on its market leadership and continue its expansion in genomic newborn screening and precision medicine, setting the stage for sustained growth and innovation.

GeneDx’s Earnings Call Highlights Robust Growth and Optimism

In its latest earnings call, GeneDx Holdings Corp. showcased a robust performance, marked by significant revenue growth and improved margins. The sentiment was overwhelmingly positive, buoyed by the FDA breakthrough designation, which further validates GeneDx’s cutting-edge technology. Despite some challenges such as potential ASP declines and market underpenetration in NICUs, the overall outlook remains optimistic, with highlights significantly outweighing the lowlights.

GeneDx Holdings Appoints Thomas Fuchs to Board

On September 17, 2025, GeneDx Holdings Corp. appointed Thomas Fuchs as a Class I director, expanding its Board from 7 to 8 members. Dr. Fuchs, who is the SVP and Chief AI Officer at Eli Lilly and Company, brings extensive experience in artificial intelligence and machine learning, which could enhance GeneDx’s strategic direction and operational capabilities.

The most recent analyst rating on (WGS) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on GeneDx Holdings stock, see the WGS Stock Forecast page.

GeneDx Reports Record Revenue and Growth in Q2 2025

GeneDx Holdings Corp. recently held an earnings call that was marked by a largely positive sentiment. The company achieved record revenue and significant growth in exome and genome testing, improved reimbursement rates, and expanded into new markets. Despite facing challenges with new indications and slower adoption in general pediatrics, the overall outlook remains strong with raised revenue guidance and sustained profitability.