Genedx Holdings Corp. ((WGS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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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.
Revenue Surge
GeneDx reported an impressive revenue surge for the third quarter of 2025, reaching $116.7 million. This marks a substantial 52% increase year-over-year, underscoring the company’s strong market position and growth trajectory.
FDA Breakthrough Device Designation
The FDA’s breakthrough device designation for GeneDx’s ExomeDx and GenomeDx tests is a significant milestone. This recognition positions the company’s technology as a gold standard in genetic testing, reinforcing its potential to transform lives.
Strong Genetic Testing Growth
GeneDx experienced a remarkable 66% increase in exome and genome revenue compared to the same quarter last year. The company reported 25,702 exome and genome tests, with growth accelerating from 24% in Q1 to 33% in Q3, highlighting the increasing demand for its genetic testing services.
Improved Gross Margins
The company successfully expanded its total adjusted gross margin to 74%, attributed to a favorable mix shift, improved reimbursement rates, and lower costs of goods sold (COGS). This improvement reflects GeneDx’s operational efficiency and strategic pricing.
Raising Revenue Guidance
GeneDx raised its 2025 revenue guidance to between $425 million and $428 million, anticipating exome and genome revenue growth between 53% and 55% for the full year. This optimistic forecast reflects the company’s confidence in its continued growth and market expansion.
Potential ASP Decline
Despite the positive outlook, GeneDx anticipates a potential decline in average selling prices (ASPs) in Q4. This is due to initial lower payment rates in new call points and indication expansions, which may impact short-term revenue.
NICU Underpenetration
The earnings call highlighted a significant underpenetration in the NICU market, with fewer than 5% of NICU patients currently receiving genetic testing. This presents a substantial growth opportunity for GeneDx as it seeks to expand its market reach.
Discontinued Hereditary Cancer Offerings
GeneDx announced the discontinuation of its hereditary cancer offerings, which generated $1.2 million in Q3 2025 and $3.3 million in Q3 2024. This strategic decision allows the company to focus on its core genetic testing services.
Forward-Looking Guidance
Looking ahead, GeneDx has updated its 2025 guidance, raising its revenue forecast to between $425 million and $428 million. The company expects a 53% to 55% growth in exome and genome revenue, reaffirming its commitment to at least 30% volume growth for the year. With plans to expand its NICU market and integrate more Epic Aura systems, GeneDx is poised for continued success.
In summary, GeneDx’s latest earnings call paints a picture of a company on the rise, with strong revenue growth, improved margins, and strategic advancements in genetic testing. While challenges such as ASP declines and NICU underpenetration exist, the overall sentiment is positive, with the company well-positioned for future growth.