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GeneDx Holdings
(NASDAQ:WGS)
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Rating:52Neutral
Price Target:
$63.00
▼(-30.22% Downside)
Action:Reiterated
Date:10/24/26
The score is held back primarily by weak cash flow (TTM operating and free cash flow negative) and bearish technical momentum (price below key moving averages with negative MACD). Offsetting factors include strong revenue growth and healthy gross margins, plus a constructive earnings outlook with reaffirmed 2026 guidance and a path to profitability—though reimbursement collection rates and execution timing remain key risks.
Positive Factors
Strong Revenue and Volume Growth
Rapid test-volume growth and reaffirmed revenue guidance indicate sustained demand for GeneDx’s exome and genome services. Continued adoption can expand the company’s clinical footprint, improve operating leverage, and support compounding revenue over the next several quarters.
Negative Factors
Negative Cash Generation
Current cash burn reduces financial flexibility even as revenue grows, increasing reliance on available liquidity and successful execution. A sustained reversal from positive 2025 cash flow could constrain investment capacity and make profitability less valuable until cash conversion improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Volume Growth
Rapid test-volume growth and reaffirmed revenue guidance indicate sustained demand for GeneDx’s exome and genome services. Continued adoption can expand the company’s clinical footprint, improve operating leverage, and support compounding revenue over the next several quarters.
Read all positive factors
GeneDx Holdings (WGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.87B
Dividend YieldN/A
Average Volume (3M)849.14K
Price to Earnings (P/E)―
Beta (1Y)0.96
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. Volume858,095
30 Day Avg. Volume849,144
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 Cap1.11
Enterprise Value/Revenue4.57
Enterprise Value/Gross Profit6.69
Enterprise Value/Ebitda-27.14
Forecast
1Y Price Target
$88.50Price Target Upside-1.97% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.1
Revenue Forecast (FY)$482.26M
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 ...
GeneDx Holdings Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 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
Negative
90.28
Price Trends
79.72
Negative
72.63
Negative
72.57
Negative
Market Momentum
-4.98
Positive
40.62
Neutral
28.53
Neutral
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 90.28 is above the 20-day moving average (MA) of 67.51, above the 50-day MA of 79.72, and above the 200-day MA of 72.57, indicating a bearish trend. The MACD of -4.98 indicates Positive momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 28.53 is Neutral, 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 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.04B | 34.92 | 8.64% | ― | 17.28% | 323.64% | |
67 Neutral | $59.22B | -302.07 | -11.73% | ― | 37.82% | 28.02% | |
53 Neutral | $601.64M | -5.26 | -32.59% | 13.45% | -3.16% | 72.02% | |
52 Neutral | $1.87B | -17.24 | -38.72% | ― | 25.42% | -10900.00% | |
52 Neutral | $2.22B | -43.52 | -6.31% | 0.75% | 11.19% | 50.58% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $569.57M | -7.34 | -7.87% | ― | 6.83% | -69.59% |
* Healthcare Sector Average
WGS
GeneDx Holdings
62.74
-74.73
-54.36%
MYGN
Myriad Genetics
6.29
-1.84
-22.63%
VCYT
Veracyte
50.28
14.68
41.24%
NEO
NeoGenomics
17.27
7.35
74.09%
NTRA
Natera
410.82
221.25
116.71%
FLGT
Fulgent Genetics
20.70
-2.73
-11.65%
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.