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GeneDx Holdings (WGS)
NASDAQ:WGS
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GeneDx Holdings
(NASDAQ:WGS)
Rating:60Neutral
Price Target:
$82.00
▲(4.67%Upside)
Positive Factors
Financial Performance
March rebounded strongly and exceeded management expectations, with April tracking in line with expectations and a seasonally stronger Q2 anticipated.
Market Opportunity
New guidelines from the AAP now recommend exome/genome as a first-line test for kids with development delay & intellectual disability, opening a big opportunity for WGS to access general pediatricians.
Product Innovation
The ultra-rapid genome was launched in April, offering a fast turnaround time and competitive pricing, which may help take volumes from smaller competitors.
Negative Factors
Competitive Threat
Growing competitive threats are challenging GeneDx's market position, despite claims of a strong moat based on their database and diagnostic yields.
Insider Activity
Recent insider selling by the CEO and CFO has raised concerns about the optics of selling during a period of poor performance.
Stock Performance
While Q1 exome/genome revenue grew 62% Y/Y, the stock sold off by >50% due to perceived sequential slowdown.
GeneDx Holdings (WGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.22B
Dividend YieldN/A
Average Volume (3M)854.77K
Price to Earnings (P/E)38.8
Beta (1Y)1.47
Revenue Growth48.81%
EPS Growth72.54%
CountryUS
Employees1,000
SectorHealthcare
Sector Strength40
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding28,533,203
10 Day Avg. Volume751,593
30 Day Avg. Volume854,770
Financial Highlights & Ratios
PEG Ratio-2.15
Price to Book (P/B)8.91
Price to Sales (P/S)0.00
P/FCF Ratio-177.71
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit11.12
Enterprise Value/Ebitda-12.38
Forecast
1Y Price Target
$101.00Price Target Upside28.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
GeneDx Holdings Business Overview & Revenue Model
Company DescriptionGeneDx 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 MoneyGeneDx Holdings generates revenue through a diversified model primarily centered around its genetic testing services. The company charges fees for its sequencing services, which are utilized by hospitals, clinics, and research institutions. Its revenue streams include payments from healthcare providers who order genetic tests for their patients, as well as research collaborations with pharmaceutical companies and academic institutions. Additionally, GeneDx may receive funding from partnerships aimed at developing new genomic technologies and solutions. The company benefits from the growing demand for precision medicine, which drives the need for accurate and comprehensive genetic testing, further contributing to its financial performance.
GeneDx Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -33.03%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, profitability, and strategic advancements like the Fabric Genomics acquisition. However, challenges such as weather impacts on volumes and increased G&A expenses were noted. The company's positive momentum and strategic initiatives outweigh these challenges.Q1-2025 Updates
Positive Updates
Strong First Quarter Revenue and Profitability
GeneDx reported first-quarter revenues exceeding $87 million and achieved its third consecutive quarter of profitability. Exome and genome revenues grew 62% year-over-year.
Raising Full-Year Revenue Guidance
The company raised its full-year 2025 revenue guidance to $360 million to $375 million, reflecting confidence in continued momentum and market leadership.
Significant Growth in Exome and Genome Testing
Volumes from flagship products increased by 24% year-over-year, contributing $71.4 million in revenue. The company expects at least 30% growth in exome genome volume and revenues for full year 2025.
Successful Launch of Ultra Rapid Genome Sequencing
GeneDx launched an ultra rapid genome sequencing product with a 48-hour turnaround time, enhancing its service offering in the NICU.
Positive Reimbursement Trends
Average reimbursement rate for exome and genome tests increased to approximately $3,400, up from $2,600 in the same quarter last year.
Strategic Acquisition of Fabric Genomics
GeneDx announced plans to acquire Fabric Genomics to enhance its AI-powered genomic interpretation capabilities and expand into international markets.
Negative Updates
Weather Impact on Test Volumes
Adverse weather conditions in January and February affected test volumes, resulting in a sequential decline in volumes from Q4 to Q1.
Challenges in Expanding NICU Market
Despite the launch of the ultra rapid genome sequencing product, the NICU market remains untapped with less than 5% of babies receiving genetic tests.
Increase in G&A Expenses
General and administrative expenses increased, partly due to Epic integration costs and general support costs for the company's growth.
Company Guidance
During the GeneDx First Quarter 2025 Earnings Conference Call, the company shared several key metrics and updates. GeneDx reported first-quarter revenues of $87.1 million, with exome and genome revenues growing 62% year-over-year to $71.4 million. The company raised its full-year 2025 revenue guidance to between $360 million and $375 million, reflecting strong momentum, particularly in exome and genome testing, which accounted for 40% of all tests conducted in the quarter. GeneDx also highlighted its strategic acquisition of Fabric Genomics, which is expected to contribute $3 million to $5 million in revenue and expand the company's capabilities in AI-powered genomic interpretation. The average reimbursement rate for exome and genome testing rose to approximately $3,400 from $2,600 in the previous year, driven by reduced denials and positive beats on past estimates. The company maintained a strong gross margin of 69%, up from 61% a year ago, and achieved its third consecutive quarter of profitability with an adjusted net income of $7.7 million. GeneDx emphasized its ongoing efforts to expand into new clinical indications and its commitment to driving better clinical outcomes while reducing healthcare costs.GeneDx Holdings Financial Statement Overview
Summary
GeneDx Holdings shows revenue growth but remains unprofitable, with negative EBIT and net income margins. The balance sheet is stable with low leverage, but cash flow is negative, indicating financial vulnerabilities.Income Statement
GeneDx Holdings has shown a positive revenue growth trend, with a TTM revenue increase to $330.1 million compared to $305.5 million in the previous year. Despite this growth, the company remains unprofitable, as evidenced by negative EBIT and net income margins. The gross profit margin improved to 63.9% TTM, signaling better cost management. However, persistent net losses and negative EBIT margins indicate ongoing operational challenges.55
Neutral
Balance Sheet
The balance sheet shows a stable equity position with stockholders' equity at $257.4 million. The debt-to-equity ratio improved to 0.24 TTM, reflecting a manageable leverage level. Moreover, the equity ratio of 57.7% indicates a strong capital structure. However, the company has struggled with profitability, as seen from the negative return on equity, which poses a risk to financial stability if losses continue.60
Neutral
Cash Flow
GeneDx Holdings reports negative free cash flow and operating cash flow, reflecting cash management challenges. Despite a significant improvement in free cash flow growth from the previous year, the company still faces hurdles in generating positive cash flow. The operating cash flow to net income ratio improved slightly TTM, yet remains negative, underscoring ongoing operational inefficiencies.50
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 305.45M | 202.57M | 234.69M | 212.19M | 179.32M |
| Gross Profit | 194.40M | 60.62M | -26.75M | -16.60M | 4.03M |
| EBITDA | -23.21M | -136.46M | -398.20M | -219.19M | -224.73M |
| Net Income | -52.29M | -175.77M | -548.98M | -245.39M | -246.44M |
Balance Sheet | |||||
| Total Assets | 419.38M | 473.67M | 490.94M | 554.09M | 251.64M |
| Cash, Cash Equivalents and Short-Term Investments | 141.19M | 130.15M | 123.93M | 400.57M | 108.13M |
| Total Debt | 116.17M | 119.77M | 72.38M | 32.85M | 45.02M |
| Total Liabilities | 174.13M | 245.66M | 237.24M | 165.99M | 581.69M |
| Stockholders Equity | 245.25M | 228.02M | 253.71M | 388.10M | -330.05M |
Cash Flow | |||||
| Free Cash Flow | -33.99M | -185.86M | -333.48M | -211.22M | -125.10M |
| Operating Cash Flow | -28.50M | -180.15M | -319.15M | -190.43M | -93.13M |
| Investing Cash Flow | -30.13M | -43.73M | -141.33M | -20.79M | -31.97M |
| Financing Cash Flow | 44.16M | 186.24M | 197.31M | 493.73M | 129.06M |
GeneDx Holdings Technical Analysis
Negative
78.34
Price Trends
74.83
Positive
83.65
Negative
78.64
Negative
Market Momentum
0.78
Positive
45.70
Neutral
9.22
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 78.34 is below the 20-day moving average (MA) of 85.89, above the 50-day MA of 74.83, and below the 200-day MA of 78.64, indicating a neutral trend. The MACD of 0.78 indicates Positive momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 9.22 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 74 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
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.89B | 38.83 | 10.11% | ― | 9.47% | -7.81% | |
68 Neutral | $1.67B | 63.93 | 4.43% | ― | 4.35% | ― | |
60 Neutral | $2.22B | 38.75 | -16.61% | ― | 48.81% | 72.54% | |
59 Neutral | $561.94M | ― | -86.36% | ― | -3.04% | -152.59% | |
59 Neutral | $248.61M | ― | -60.75% | ― | 4.66% | 11.33% | |
55 Neutral | $1.57B | ― | -43.33% | ― | 22.29% | -32.89% | |
52 Neutral | $7.37B | -0.04 | -63.81% | 2.59% | 16.40% | <0.01% |
* Healthcare Sector Average
Performance Comparison
WGS
GeneDx Holdings
78.34
45.82
140.90%
PGNY
Progyny
22.94
-4.48
-16.34%
SDGR
Schrodinger
22.82
-0.39
-1.68%
GDRX
GoodRx Holdings
4.75
-4.18
-46.81%
SOPH
SOPHiA GENETICS
3.49
-1.25
-26.37%
DH
Definitive Healthcare Corp
3.99
-1.73
-30.24%
GeneDx Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
GeneDx Holdings Approves Key Proposals at Annual Meeting
Neutral
Jun 18, 2025
On June 18, 2025, GeneDx Holdings Corp. held its Annual Meeting of Stockholders, where key proposals were voted on and approved. The stockholders elected two Class I directors, Eli D. Casdin and Joshua Ruch, to serve three-year terms, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
The most recent analyst rating on (WGS) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on GeneDx Holdings stock, see the WGS Stock Forecast page.
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.