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GeneDx Holdings
(NASDAQ:WGS)
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Rating:60Neutral
Price Target:
$91.00
▲(0.80% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily held back by volatile fundamentals—especially the recent swing back to negative operating and free cash flow—despite strong revenue growth and healthy gross margins. Earnings call commentary supports a better forward outlook with reaffirmed profitability guidance and major payer coverage gains, but near-term reimbursement/collection and genome unit-cost execution risks remain. Technically, momentum is improving in the short term, though the longer-term trend remains pressured, and valuation is constrained by negative earnings (negative P/E) with no dividend support.
Positive Factors
Strong test and revenue growth
Rapid test-volume and exome/genome revenue growth indicate expanding adoption of GeneDx’s clinical offerings. Sustained demand can improve laboratory scale, strengthen provider relationships and support operating leverage as reimbursement execution improves.
Negative Factors
Negative cash generation
The reversal from positive 2025 cash flow to substantial TTM cash burn raises funding and execution risk. Continued investment or delayed reimbursement could require additional capital before operating improvements translate into consistently self-funded growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong test and revenue growth
Rapid test-volume and exome/genome revenue growth indicate expanding adoption of GeneDx’s clinical offerings. Sustained demand can improve laboratory scale, strengthen provider relationships and support operating leverage as reimbursement execution improves.
Read all positive factors
GeneDx Holdings (WGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.53B
Dividend YieldN/A
Average Volume (3M)728.95K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth25.42%
EPS Growth-10900.00%
CountryUS
Employees1,300
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-3.64
Shares Outstanding29,822,540
10 Day Avg. Volume498,210
30 Day Avg. Volume728,945
Financial Highlights & Ratios
PEG Ratio2.86
Price to Book (P/B)11.35
Price to Sales (P/S)8.18
P/FCF Ratio245.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$82.86Price Target Upside-8.22% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.08
Revenue Forecast (FY)$481.93M
GeneDx Holdings Business Overview & Revenue Model
Company Description
GeneDx Holdings Corp., a genomics company, provides genetic testing services. The company primarily offers pediatric and rare disease diagnostics with a focus on whole exome and genome sequencing, as well as data and information services. It also ...
How the Company Makes Money
GeneDx primarily makes money by performing clinical genetic tests and billing for those tests and associated professional services. Its key revenue stream is test service revenue generated when healthcare providers order GeneDx’s assays (e.g., seq...
GeneDx Holdings Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call reflects a cautiously optimistic outlook: strong operational performance (record test volumes, revenue growth, return to profitability, margin improvement, and major payer coverage wins) provides clear highlights, while significant near‑term challenges remain around low outpatient collection rates, higher genome unit costs, and timing lags for revenue realization. Management presented a concrete multi‑pronged plan (RCM, payer workflows, technology, commercial investments) and reinforced guidance, expecting meaningful RCM and revenue uplift beginning in Q4 2026 and more substantially in 2027.Positive Updates
Record Quarterly Test Volume and Strong Volume Growth
Delivered a record >30,000 exome and genome tests in Q2 (30,785), representing 32% year‑over‑year volume growth.
Negative Updates
Low Outpatient Genome Collection Rate
Underlying outpatient genome collection (percentage of claims paid) at ~32% in Q2, flat QoQ but down from 43% in Q2 2025 (−11 percentage points), producing significant under‑earning versus potential.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Test Volume and Strong Volume Growth
Delivered a record >30,000 exome and genome tests in Q2 (30,785), representing 32% year‑over‑year volume growth.
Read all positive updates
Company Guidance
GeneDx reaffirmed full‑year 2026 guidance of $475–$490M in revenue with exome/genome volume growth of at least 30%, exome/genome revenue growth of at least 20%, gross margin of ~70% and profitability for the year; Q3 guidance is $122–$124M total revenue ($110–$112M exome/genome) on ~33,200 tests with a blended ARR of ≈$3,300/test, ~70% gross margin and ~ $2M adjusted net income. This follows Q2 results of $114.4M total revenue ($100.3M exome/genome), 30,785 exome/genome tests (+32% YoY), blended ARR $3,258/test, 70% gross margin and $0.4M adjusted net income. Management said genomes were 32% of insurance outpatient volume in Q2 (down from ~40% in Q1; up from 15% in 2025) and expects H2 genome mix around ~30% (or slightly lower) as reflex and exome mix grows (reflex volumes exceeded genomes in July). Key coverage/RCM metrics to monitor: outpatient genome collection rate ~32% (flat Q1, down from 43% in Q2 2025), ~67% of outpatient genome volume submitted to payers with active positive policies (up from 46% last quarter and 38% YoY), commercial exome coverage ~98% (from ~90% in Q1) and commercial genome coverage ~87% (from 47% last quarter, driven by Carelon); 39 states now cover exome/genome on Medicaid (Mississippi effective July 1). The company completed $25M of cost actions, reported ~ $80M operating expenses in Q2, expanded its debt facility by $50M and received an equity investment to bring pro forma liquidity to ~ $188M; it expects Q3 collection rates roughly flat, meaningful improvement in Q4 and the largest ARR/collection uplift in 2027, with genome COGS ~2x exome today, cost per test flat in H2 2026 and step improvements in 2027.GeneDx Holdings Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 454.43M | 427.54M | 305.45M | 202.57M | 234.69M | 212.19M |
| Gross Profit | 309.90M | 298.17M | 194.40M | 90.01M | -26.75M | -16.60M |
| EBITDA | -76.43M | 6.63M | -27.64M | -136.46M | -398.20M | -220.75M |
| Net Income | -106.36M | -21.02M | -52.29M | -175.77M | -548.98M | -245.39M |
Balance Sheet | ||||||
| Total Assets | 481.49M | 570.19M | 419.38M | 418.76M | 545.26M | 554.09M |
| Cash, Cash Equivalents and Short-Term Investments | 132.55M | 171.28M | 141.19M | 130.15M | 137.40M | 400.57M |
| Total Debt | 167.40M | 151.95M | 116.17M | 119.77M | 77.13M | 32.85M |
| Total Liabilities | 237.26M | 262.01M | 174.13M | 190.74M | 291.56M | 165.99M |
| Stockholders Equity | 244.22M | 308.18M | 245.25M | 228.02M | 253.71M | 388.10M |
Cash Flow | ||||||
| Free Cash Flow | -75.80M | 14.26M | -33.99M | -185.86M | -333.48M | -211.22M |
| Operating Cash Flow | -48.71M | 33.28M | -28.50M | -180.15M | -319.15M | -190.43M |
| Investing Cash Flow | -38.64M | -61.52M | -30.13M | -43.73M | -141.33M | -20.79M |
| Financing Cash Flow | 73.56M | 48.02M | 44.16M | 186.24M | 197.31M | 493.73M |
GeneDx Holdings Technical Analysis
Positive
90.28
Price Trends
71.66
Positive
63.18
Positive
85.45
Negative
Market Momentum
4.97
Positive
60.59
Neutral
54.46
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 90.28 is above the 20-day moving average (MA) of 81.34, above the 50-day MA of 71.66, and above the 200-day MA of 85.45, indicating a neutral trend. The MACD of 4.97 indicates Positive momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 54.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.26B | -18.27 | -6.66% | ― | 0.66% | -134.07% | |
66 Neutral | $8.14B | -101.66 | -9.33% | ― | -4.28% | 15.82% | |
64 Neutral | $11.56B | 41.37 | 15.23% | ― | 19.91% | 350.11% | |
60 Neutral | $2.53B | -23.30 | -38.72% | ― | 25.42% | -10900.00% | |
59 Neutral | $704.72M | -7.33 | -136.71% | ― | 23.65% | -4.80% | |
52 Neutral | $508.77M | -0.95 | -99.16% | ― | -4.50% | -184.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
WGS
GeneDx Holdings
84.81
-42.41
-33.34%
EVH
Evolent Health
4.28
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TXG
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59.98
46.64
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CERT
Certara
8.10
-2.40
-22.86%
SOPH
SOPHiA GENETICS
8.43
5.00
145.63%
BTSG
BrightSpring Health Services, Inc.
59.16
35.08
145.68%
GeneDx Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
GeneDx Shareholders Back Director, Auditor and Pay Plans
Positive
Jun 23, 2026
GeneDx Holdings held its Annual Meeting of Stockholders on June 18, 2026, where investors voted on board composition, auditor appointment and executive pay matters. Shareholders elected Katherine Stueland as a Class II director to a three-year ter...
Business Operations and StrategyExecutive/Board Changes
GeneDx Appoints Mark Gardner as New Company President
Positive
Jun 16, 2026
On June 16, 2026, GeneDx Holdings announced it had appointed Mark Gardner as president, effective June 15, 2026, tasking the former Quest Diagnostics executive with leading its commercial and lab operations. Gardner, who brings nearly three decade...
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.