GeneDx Holdings (WGS) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: N/A
• Average Volume (3M): 721.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• 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): 0.14
• Shares Outstanding: 29,288,738
• 10 Day Avg. Volume: 706,400
• 30 Day Avg. Volume: 721,977
• PEG Ratio: 2.67
• Price to Book (P/B): 11.35
• Price to Sales (P/S): 8.18
• P/FCF Ratio: 245.23
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 5.08
• Enterprise Value/Gross Profit: 7.42
• Enterprise Value/Ebitda: 327.98
• 1Y Price Target: $154.29
• Price Target Upside: 93.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.58
• Revenue Forecast (FY): $538.81M

• Rating: 62 Neutral
• Price Target: $84.00 ▲(5.38% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 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

High & improving gross margins

Sustained adjusted gross margins near 70% and much higher margins in the core exome/genome portfolio imply durable unit economics and pricing power. High margins support reinvestment, cover commercial expansion and underpin long-term free-cash-flow generation as volumes scale.

Proprietary INFINITY dataset

A massive, diverse rare‑disease dataset creates persistent competitive advantages: it improves diagnostic yield, trains proprietary AI, accelerates clinical validation, and raises switching costs for customers, supporting differentiated product performance and longer-term market share.

Improved cash generation & balance sheet

Transition to positive OCF and FCF with moderate leverage increases financial flexibility to fund commercial scale-up without dilutive capital. A healthier cash profile and manageable debt enable sustained investment in sales, R&D and product rollout over the next several quarters.

Negative Factors

GAAP profitability not fully normalized

Despite adjusted profitability, lingering GAAP losses and slightly negative EBIT limit return metrics and signal remaining structural costs. This constrains surplus capital allocation, may restrict certain strategic moves, and leaves outcomes sensitive to execution on operating leverage.

Reimbursement and Medicaid execution risk

Long‑running payer uncertainty and state Medicaid implementation variability can materially reduce realized revenue and ARR per test. Persistent denial risk or slow Medicaid rollouts would depress cash receipts and raise commercial costs, making growth outcomes contingent on payer execution.

Heavy front‑loaded investments & long conversion cycles

Substantial upfront hiring and market buildout compress near‑term margins and require extended payback periods. Long clinician adoption timelines (18–24 months) mean revenue from these investments may lag, raising execution risk and sensitivity to sales productivity over multiple quarters.

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 and defining optimal, individualized health trajectories. The firm, through its Centrellis health intelligence platform, generates a more complete understanding of disease and wellness and provides science-driven solutions to the most pressing medical needs. The company was founded by Eric Schadt in October 2015 and is headquartered in Stamford, CT.

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

Clear financial inflection: strong margin expansion (~70% gross margin in TTM) and sharply narrowed losses (TTM net loss -$21M), with a return to positive operating cash flow ($33M) and positive free cash flow ($14M). Balance sheet leverage is moderate (debt-to-equity ~0.39). Score is capped because GAAP profitability/EBIT remains slightly negative and TTM free-cash-flow growth is negative.

Income Statement

The income statement shows a strong multi-year turnaround with sharp improvement in profitability and accelerating scale. Revenue rose to $428M in TTM (Trailing-Twelve-Months) (up 6.3%), while gross margin expanded to ~70% (vs. ~64% in 2024 and deeply negative in 2021–2022). Losses have narrowed materially (net loss improved from -$523M in 2022 to -$52M in 2024 to -$21M in TTM). However, the company remains unprofitable and operating results are still slightly negative (EBIT is below zero in TTM), which keeps the score from being higher.

Balance Sheet

The balance sheet looks reasonably healthy with moderate leverage and improving capital structure. Total debt is $60M in TTM (Trailing-Twelve-Months) against $308M of equity (debt-to-equity ~0.39), improved from ~0.47 in 2024 and far better than the highly leveraged 2020 position. Total assets have also grown to $524M. The main weakness is that returns on equity are still low and only slightly positive in TTM, reflecting that profitability has not fully normalized yet.

Cash Flow

Cash flow quality has improved meaningfully, shifting from sustained cash burn (negative operating and free cash flow through 2024) to positive generation in TTM (Trailing-Twelve-Months). Operating cash flow is $33M and free cash flow is $14M in TTM, signaling better underlying economics and execution. A watch item is that free cash flow declined year-over-year (FCF growth is negative in TTM), suggesting some near-term reinvestment or working-capital volatility even as the overall direction has improved.

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

• Technical Analysis Sentiment: Negative
• Last Price: 79.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 79.71 is below the 20-day moving average (MA) of 88.30, below the 50-day MA of 108.21, and below the 200-day MA of 110.31, indicating a bearish trend. The MACD of -7.49 indicates Negative momentum. The RSI at 34.02 is Neutral, neither overbought nor oversold. The STOCH value of 13.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WGS.

GeneDx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTSG	69 Neutral	$8.05B	47.42	4.25%	―	17.23%	―
WGS	62 Neutral	$2.17B	-100.00	-7.60%	―	50.50%	―
CERT	61 Neutral	$1.12B	-684.47	-0.15%	―	11.47%	―
TXG	55 Neutral	$2.96B	-66.19	-5.78%	―	1.92%	59.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SOPH	51 Neutral	$313.45M	-4.14	-86.09%	―	13.66%	-2.65%
EVH	46 Neutral	$399.67M	-0.70	-75.47%	―	-16.65%	-71.92%

GeneDx Holdings Corporate Events

GeneDx Secures New $100 Million Term Loan Facility

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 interest rate based on Term SOFR plus 4.50% with a 1.50% floor and matures five years from closing, was used to fully repay the existing term loan and is also earmarked for balance sheet optimization and general corporate purposes.

The facility is secured by a first lien on substantially all assets of GeneDx and its guarantor subsidiaries, includes mandatory prepayment triggers tied to change of control, additional indebtedness and certain asset sales, and features a $50 million minimum liquidity covenant. The agreement’s covenants and default provisions underscore lender protections while providing GeneDx with financial flexibility to manage its capital structure and operating obligations, with any continuing event of default allowing lenders to accelerate all outstanding amounts.

The most recent analyst rating on (WGS) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on GeneDx Holdings stock, see the WGS Stock Forecast page.

GeneDx Reports Strong 2025 Results and 2026 Growth Outlook

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 more than 30% to 97,271. Fourth quarter 2025 revenues were approximately $121 million, with exome and genome revenues of about $104 million and volume growth accelerating to 34.3%, while GAAP and adjusted gross margins held at about 70% and 71%, respectively, and year-end cash and investments totaled roughly $172 million. Management also issued 2026 guidance calling for revenue between $540 million and $555 million, exome and genome revenue and volume growth of 33% to 35%, adjusted gross margin of at least 70%, and positive adjusted net income, underscoring expectations of continued high growth and improving profitability. Alongside these figures, GeneDx highlighted strategic moves in 2025, including launching its GeneDx Infinity rare disease dataset, expanding into general pediatrics, prenatal diagnostics, and ultra-rapid sequencing, securing broader Medicaid coverage, completing leadership appointments, acquiring Fabric Genomics, and gaining FDA Breakthrough Device designation for key exome and genome tests, all of which reinforce its positioning as a leading player in genomic medicine and newborn screening.

The most recent analyst rating on (WGS) stock is a Buy with a $165.00 price target. To see the full list of analyst forecasts on GeneDx Holdings stock, see the WGS Stock Forecast page.