GeneDx Reports First Quarter 2025 Financial Results and Business Highlights
Reported first quarter 2025 revenues of $87.1 million with 62% year-over-year growth of exome and genome test revenue
Generated first quarter 2025 adjusted net income(1) of $7.7 million
Announced plans to acquire Fabric Genomics
Raised guidance to deliver between $360 and $375 million in revenue and reaffirmed outlook to deliver exome/genome volume and revenue growth of at least 30% in FY 2025
GeneDx to host conference call today at 8:30 a.m. ET
GAITHERSBURG, Md.--(BUSINESS WIRE)--April 30, 2025--
GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic insights, today reported its financial results for the first quarter of 2025.
"Healthcare is at an inflection point where integrating genomic insights into standard care is becoming essential -- both for better clinical outcomes and for saving the healthcare system valuable dollars," said Katherine Stueland, CEO of GeneDx. "The first quarter exceeded our expectations across all measures, headlined by 62% revenue growth in exome/genome and our third consecutive quarter of profitability, demonstrating the leverage in our business model to drive sustained, profitable growth. We are well positioned to transform genomic testing globally, driving improved outcomes on an even larger scale."
"Our business continued to exceed expectations, with volume growth accelerating throughout the quarter," said Kevin Feeley, CFO of GeneDx. "Looking forward, the combination of continued core momentum, the rolling expansion of new indications in the outpatient setting, and the recent launch of a new ultraRapid genome product are expected to drive incremental volume growth opportunities throughout the remainder of 2025 and beyond."
First Quarter 2025 Financial Results (Unaudited)(1)
Revenues
-- Revenues grew to $87.1 million, an increase of 42% year-over-year
-- Exome and genome test revenue grew to $71.4 million, an increase of 62%
year-over-year
Exome and genome volume
-- Exome and genome test results volume grew to 20,562, an increase of 24%
year-over-year
-- Exome and genome represented 40% of all test results, up from 30% in the
first quarter of 2024
Gross margin
-- Adjusted gross margin was 69%, compared to 61% in the first quarter of
2024
-- Total GAAP gross margin was 67%.
Operating expenses
-- Adjusted total operating expenses were $52.3 million, or 60% of revenues
in the first quarter of 2025, compared to 74% in the first quarter of
2024
-- Total GAAP operating expenses were $63.0 million.
Net Income
-- Adjusted net income was $7.7 million compared to an adjusted net loss of
$8.0 million in the first quarter of 2024
-- GAAP net loss was $6.5 million.
Cash position
-- Cash, cash equivalents, marketable securities and restricted cash was
$160.2 million as of March 31, 2025.
-- Cash flow for the first quarter 2025 included:
-- $4.1 million in cash generated from ordinary operations; and
-- $13.9 million in proceeds, net of fees, from the issuance of
150,000 shares of Class A common stock in connection with sales
pursuant to our "at-the-market" offering.
(1) Adjusted gross margin, adjusted total operating expenses and adjusted net loss are non-GAAP financial measures. See appendix for a reconciliation of GAAP to Non-GAAP figures presented.
GeneDx Full Year 2025 Guidance
GeneDx has updated its full year 2025 guidance. Management expects GeneDx to deliver:
-- Revenues between $360 to $375 million for full year 2025, inclusive of $3
to $5 million in post-close revenue contribution from the planned
acquisition of Fabric Genomics, assuming a second quarter 2025 close
(previous guidance was revenues between $350 to $360 million);
-- Growth in exome/genome volume and revenue of at least 30% (unchanged);
-- Adjusted gross margins between 66%-68% (previous guidance was between
65%-67%); and
-- Profitability with adjusted net income each quarter and for full year
2025 (unchanged).
First Quarter 2025 Business Highlights
Driving sustainable growth and market leadership
-- Announced plans to acquire Fabric Genomics, which will accelerate
GeneDx's entry into a supplemental market of genomic medicine:
decentralized testing with centralized intelligence.
-- Announced ultraRapid Whole Genome Sequencing, offering accelerated,
comprehensive and actionable genomic insights for neonatal and pediatric
patients in the NICU and PICU in as soon as 48 hours.
-- Launched Epic Aura, which seamlessly integrates GeneDx exome and genome
testing into the native ordering and resulting workflows of many of the
largest health systems across the country.
-- Expanded commercial footprint for exome and genome testing with cerebral
palsy $(CP)$ as a new indication, underscoring the importance of improving
access to exome and genome testing for patients with CP to shorten the
diagnostic odyssey and accelerate the path to treatment.
-- Expanded commercial footprint for exome and genome testing with Inborn
Errors of Immunity (IEIs) as a new indication, empowering ordering
clinicians with more accurate and comprehensive genetic insights to
better treat this patient population.
-- Accelerated adoption of exome and genome sequencing coverage by state
Medicaid programs, bringing the total states covering exome or genome
sequencing in the pediatric outpatient setting to 33 (New Mexico
announced April 2025) and the total states covering rapid genome
sequencing in the neonatal intensive care unit (NICU) to 14.
-- Recognized by Fast Company as one of the world's most innovative
companies, honoring GeneDx's innovative approach to accelerating genetic
diagnosis and transforming the future of healthcare by ending the
diagnostic odyssey.
Advancing the field to accelerate market expansion
-- Published data from the Seqfirst-neo study, a pioneering study conducted
in partnership with Seattle Children's and the University of Washington,
revealing that widespread use of rapid genome sequencing (rGS)
demonstrates that at least 60% of level IV NICU infants should be
receiving rGS.
-- Seqfirst-neo is the first study to use exclusion, rather than
inclusion, criteria for which infants should receive genomic
testing in the NICU, setting a new standard of care by enabling
neonatologists to more easily identify patients to receive testing,
and expanding access to patients who previously would not have
been offered testing.
-- 42% of diagnosed infants would have been missed using conventional
NICU protocols (69% of whom were non-white), highlighting the
limitations of current diagnostic approaches and the correlated
inequity of care.
-- Showcased key research and innovation at the 2025 American College of
Medical Genetics (ACMG) Annual Meeting that demonstrated:
-- The relative impact of RNAseq across a large cohort of clinically
diverse patients receiving exome-based testing for rare diseases
was low, and for most patients the key factors in clinically
impactful VUS resolution are providing detailed and accurate
clinical information, trio-based testing, and selecting a
laboratory with an extensive clinical and genomic database.
-- Parental needs during whole genome sequencing (WGS) are
multifaceted and interconnected, with parents' informational,
emotional, and logistical needs all suggesting the importance of
ongoing, empathetic engagement with healthcare providers. Parental
feedback also highlighted the need for peer support from families
with either similar genetic or clinical diagnoses or those
similarly navigating the WGS process, emphasizing the role of
patient advocacy in the diagnostic and treatment journey for
children with developmental disorders.
-- The results of the first 10,000 participants enrolled in the
GUARDIAN study demonstrate the feasibility of screening for a
targeted set of genes in a diverse newborn population with genomic
newborn screening (gNBS). 74.0% of parents consented for their
newborn to participate, highlighting the wide acceptance of more
advanced and modernized newborn screening with gNBS.
-- Announced Multiscore, an advanced AI-powered decision support tool
designed to revolutionize genetic analysis by improving diagnostic
efficiency, streamlining workflows, and enhancing clinical insights.
-- Through the combination of GeneDx's industry leading proprietary
dataset, publicly available data, and the power of AI, Multiscore
enables faster, more accurate identification of genetic conditions,
providing a scalable solution for clinical interpretation embedded
directly within GeneDx's platform, and reducing the time required
for manual review by analysts, ultimately shortening the overall
turnaround time for delivering results.
Webcast and Conference Call Details
GeneDx will host a conference call today, April 30, 2025, at 8:30 a.m. Eastern Time. Investors interested in listening to the conference call are required to register online. A live and archived webcast of the event will be available on the "Events" section of the GeneDx investor relations website at https://ir.genedx.com/.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our future performance and our market opportunity, including our expected full year 2025 reported revenue and volume guidance, adjusted gross margin and our adjusted net income in 2025. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our ability to implement business plans, goals and forecasts, and identify and realize additional opportunities, (ii) the risk of downturns and a changing regulatory landscape in the highly competitive healthcare industry, (iii) the size and growth of the market in which we operate, (iv) our ability to pursue our new strategic direction, and (v) our ability to enhance our artificial intelligence tools that we use in our clinical interpretation platform. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on February 20, 2025 and other documents filed by us from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.
About GeneDx
At GeneDx (Nasdaq: WGS), we believe that everyone deserves personalized, targeted medical care--and that it all begins with a genetic diagnosis. Fueled by one of the world's largest rare disease data sets, our industry-leading exome and genome tests translate complex genomic data into clinical answers that unlock personalized health plans, accelerate drug discovery, and improve health system efficiencies. For more information, please visit genedx.com and connect with us on LinkedIn, Facebook, and Instagram.
Volume & Revenue
1Q25 4Q24 3Q24 2Q24 1Q24
------- ------- -------- ------- -------
Volumes
Whole exome,
whole
genome 20,562 20,676 19,262 18,017 16,592
Hereditary
cancer 2,725 3,486 4,672 5,482 6,868
Other panels 28,228 30,115 35,095 34,204 31,763
------ ------ ------ ------ ------
Total 51,515 54,277 59,029 57,703 55,223
====== ====== ====== ====== ======
Revenue ($
millions)
Whole exome,
whole
genome $ 71.4 $ 78.8 $ 60.0 $ 50.7 $ 44.0
Hereditary
cancer 2.2 2.8 3.3 3.8 5.5
Other panels 12.1 12.3 13.8 13.3 10.7
Data
information 1.4 1.4 (0.5) 1.1 1.3
------ ------ ------ ------ ------
Total $ 87.1 $ 95.3 $ 76.6 $ 68.9 $ 61.5
====== ====== ====== ====== ======
Unaudited Select Financial Information (in thousands)
Three months ended March Three months ended December
31, 2025 31, 2024
-------------------------- ------------------------------
GeneDx Other(1) Total GeneDx Other(1) Total
------- -------- ------- ------- -------- -----------
Revenue $87,115 $-- $87,115 $95,286 $354 $95,640
Adjusted
cost of
services 27,396 -- 27,396 28,384 -- 28,384
------- -------- ------- ------- -------- -----------
Adjusted
gross
profit
(loss) $59,719 $-- $59,719 $66,902 $354 $67,256
Adjusted
gross
margin
% 68.6% 68.6% 70.2% 70.3%
Three months ended March 31, 2024
---------------------------------------
GeneDx Other(1) Total
------------ ------------ -----------
Revenue $61,461 $961 $62,422
Adjusted cost of services 24,099 -- 24,099
------------ ------------ -----------
Adjusted gross profit (loss) $37,362 $961 $38,323
Adjusted gross margin % 60.8% 61.4%
(1) Other represents revenue and costs in 2024 associated with the shut
down Legacy Sema4 diagnostic testing business.
Three months ended March 31, 2025
----------------------------------------------------------------------------------------------------
Stock-based Change in
Depreciation and compensation Restructuring FV of
Reported amortization expense costs warrants Other(1) Adjusted
----------- ---------------- ---------------- ----------------- --------- -------- -----------
Diagnostic test
revenue $85,759 $ -- $ -- $ -- $ -- $ -- $85,759
Other revenue 1,356 -- -- -- -- -- 1,356
------ ------- --- ------ ---- ----- ------ -------- ------ ------
Total revenue 87,115 -- -- -- -- -- 87,115
Cost of
services 28,639 (1,075) (168) -- -- -- 27,396
------ ------- ------ --- ----- ------ -------- ------ ------
Gross profit 58,476 1,075 168 -- -- -- 59,719
Gross margin 67.1% 68.6%
Research and
development 12,577 (372) (419) (28) -- -- 11,758
Selling and
marketing 18,316 (1,225) $(546.SI)$ (16) -- -- 16,529
General and
administrative 32,134 (3,006) (2,850) (514) -- (1,784) 23,980
(Loss) profit
from
operations (4,551) 5,678 3,983 558 -- 1,784 7,452
Interest
expense, net (640) -- -- -- -- 640 --
Other (expense)
income, net (891) -- -- -- 1,100 30 239
Income tax
expense (447) -- -- -- -- 447 --
------ ------- --- ------ ---- ----- ------ -------- ------ ------
Net (loss)
income $(6,529) $ 5,678 $ 3,983 $ 558 $ 1,100 $ 2,901 $ 7,691
====== ======= === ====== ==== ===== ====== ======== ====== ======
Three months ended March 31, 2024
---------------------------------------------------------------------------------------------------------
Stock-based Change in
Depreciation and compensation Restructuring FV of
Reported amortization expense costs warrants Other(1) Adjusted
------------ ---------------- ---------------- ----------------- --------- ------------ -----------
Diagnostic test
revenue $ 61,104 $ -- $ -- $ -- $ -- $61,104
Other revenue 1,318 -- -- -- -- -- 1,318
------- ------- --- ----- ----- ----- ------ -------- ---- ------
Total revenue 62,422 -- -- -- -- -- 62,422
Cost of
services 25,011 (816) (48) (48) -- -- 24,099
------- ------- ----- ---- ----- ----- -------- ---- ------
Gross profit 37,411 816 48 48 -- -- 38,323
Gross margin 59.9% 61.4%
Research and
development 11,567 (196) 187 (103) -- -- 11,455
Selling and
marketing 16,085 (1,225) 20 (400) -- -- 14,480
General and
administrative 23,419 (3,011) 292 (292) -- -- 20,408
Loss from
operations (13,660) 5,248 (451) 843 -- -- (8,020)
Interest
expense, net (597) -- -- -- -- 597 --
Other (expense)
income, net (6,064) -- -- -- 6,101 -- 37
Income tax
benefit 82 -- -- -- -- (82) --
------- ------- --- ----- ----- ----- ------ -------- ---- ------
Net loss $(20,239) $ 5,248 $ (451) $ 843 $ 6,101 $ 515 $(7,983)
======= ======= === ===== ==== ===== ====== ======== ==== ======
Three months ended December 31, 2024
------------------------------------------------------------------------------------------------------
Stock-based Change in
Depreciation and compensation Restructuring FV of
Reported amortization expense costs warrants Other(1) Adjusted
----------- ---------------- ---------------- ----------------- --------- ---------- -----------
Diagnostic test
revenue $94,196 $ -- $ -- $ -- $ -- $ -- $94,196
Other revenue 1,444 -- -- -- -- -- 1,444
------ ------- --- ------ ---- ----- ------ -------- ----- ------
Total revenue 95,640 -- -- -- -- -- 95,640
Cost of
services 29,435 (928) (123) -- -- -- 28,384
------ ------- ------ --- ----- ------ -------- ----- ------
Gross profit 66,205 928 123 -- -- -- 67,256
Gross margin 69.2% 70.3%
Research and
development 11,588 (294) (495) (13) -- -- 10,786
Selling and
marketing 17,676 (1,225) (347) (30) -- -- 16,074
General and
administrative 27,350 (3,111) (1,880) (249) -- -- 22,110
Other, net 785 -- -- -- -- -- 785
Profit from
operations 8,806 5,558 2,845 292 -- -- 17,501
Interest
expense, net (698) -- -- -- -- 698 --
Other (expense)
income, net (2,694) -- -- -- 1,980 666 (48)
Income tax
benefit 24 -- -- -- -- (24) --
------ ------- --- ------ ---- ----- ------ -------- ----- ------
Net income $ 5,438 $ 5,558 $ 2,845 $ 292 $ 1,980 $ 1,340 $17,453
====== ======= === ====== ==== ===== ====== ======== ===== ======
(1) Other represents interest expense, net, income tax (expense) benefit for all periods presented. Other for the three
months ended March 31, 2025, includes transaction costs related to the planned acquisition of Fabric Genomics. Other
for the three months ended December 31, 2024, includes legal costs related to a legal settlement.
GeneDx Holdings Corp.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
March 31, 2025 (Unaudited) December 31, 2024
----------------------------- ---------------------
Assets:
Current assets:
Cash and cash
equivalents $ 99,704 $ 85,212
Marketable
securities 59,456 55,973
Accounts
receivable 45,983 37,426
Inventory, net 12,662 10,650
Prepaid expenses
and other current
assets 8,011 8,707
---- ------------------- --------------
Total current
assets 225,816 197,968
Operating lease
right-of-use assets 24,883 25,613
Property and
equipment, net 36,383 32,893
Intangible assets, net 155,094 158,600
Other assets(1) 4,254 4,306
---- ------------------- --------------
Total assets $ 446,430 $ 419,380
==== =================== ==============
Liabilities and
Stockholders' Equity:
Current liabilities:
Accounts payable
and accrued
expenses $ 41,862 $ 30,044
Short-term lease
liabilities 3,124 3,336
Other current
liabilities 24,555 21,437
---- ------------------- --------------
Total current
liabilities 69,541 54,817
Long-term debt, net of
current portion 51,794 51,913
Long-term lease
liabilities 59,918 60,919
Other liabilities 6,619 5,519
Deferred taxes 1,153 965
---- ------------------- --------------
Total
liabilities 189,025 174,133
---- ------------------- --------------
Stockholders' Equity:
Preferred stock -- --
Class A common
stock 2 2
Additional paid-in
capital 1,615,501 1,596,889
Accumulated deficit (1,359,003) (1,352,474)
Accumulated other
comprehensive income 905 830
---- ------------------- --------------
Total
stockholders'
equity 257,405 245,247
---- ------------------- --------------
Total
liabilities
and
stockholders'
equity $ 446,430 $ 419,380
==== =================== ==============
(1) Other assets includes $990 thousand of restricted cash as of both March
31, 2025 and December 31, 2024.
GeneDx Holdings Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)
Three months ended March 31,
----------------------------------
2025 2024
----------------- ---------------
Revenue
Diagnostic test revenue $ 85,759 $ 61,104
Other revenue 1,356 1,318
------------ -----------
Total revenue 87,115 62,422
------------ -----------
Cost of services 28,639 25,011
------------ -----------
Gross profit 58,476 37,411
------------ -----------
Research and development 12,577 11,567
Selling and marketing 18,316 16,085
General and administrative 32,134 23,419
------------ -----------
Loss from operations (4,551) (13,660)
------------ -----------
Non-operating income (expenses), net
Change in fair value of warrants (1,100) (6,101)
Interest expense, net (640) (597)
Other income, net 209 37
------------ -----------
Total non-operating
expenses, net (1,531) (6,661)
------------ -----------
Loss before income taxes $ (6,082) $ (20,321)
Income tax (expense) benefit (447) 82
------------ -----------
Net loss $ (6,529) $ (20,239)
============ ===========
Weighted average shares outstanding
of Class A common stock 28,147,948 26,062,170
Basic and diluted loss per share,
Class A common stock $ (0.23) $ (0.78)
GeneDx Holdings Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Three months ended March 31,
--------------------------------------
2025 2024
------------------- -----------------
Operating activities
Net loss $ (6,529) $ (20,239)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization
expense 5,678 5,248
Stock-based compensation expense 3,983 (451)
Change in fair value of warrants 1,100 6,101
Deferred tax expense 447 (82)
Change in third party payor
reserves 1,395 (193)
Other 757 886
Change in operating assets and
liabilities:
Accounts receivable (8,557) 4,220
Inventory (2,032) (2,877)
Accounts payable and accrued
expenses 10,824 (4,733)
Other assets and liabilities 3,116 (4,293)
----------- ----------
Net cash provided by (used in)
operating activities 10,182 (16,413)
Investing activities
Purchases of property and equipment (6,129) (443)
Purchases of marketable securities (17,209) (5,167)
Proceeds from sales of marketable
securities -- 598
Proceeds from maturities of
marketable securities 13,930 5,855
----------- ----------
Net cash (used in) provided by
investing activities (9,408) 843
Financing activities
Proceeds from offerings, net of
issuance costs 13,894 --
Exercise of stock options 735 24
Long-term debt principal payments (300) --
Finance lease payoff and principal
payments (611) (462)
----------- ----------
Net cash provided by (used in)
financing activities 13,718 (438)
----------- ----------
Net increase (decrease) in cash,
cash equivalents and restricted
cash 14,492 (16,008)
Cash, cash equivalents and
restricted cash, at beginning of
period 86,202 100,668
----------- ----------
Cash, cash equivalents and
restricted cash, at end of period
(1) $ 100,694 $ 84,660
=========== ==========
Supplemental disclosures of cash
flow information
Cash paid for interest $ 1,600 $ 2,019
Cash paid for taxes $ 206 $ 300
Purchases of property and equipment
in accounts payable and accrued
expenses $ 2,197 $ 36
(1) Cash, cash equivalents and restricted cash at March 31, 2025 excludes
marketable securities of $59.5 million.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250430453841/en/
CONTACT: Investor Relations Contact:
Investors@GeneDx.com
Media Contact:
Press@GeneDx.com
(END) Dow Jones Newswires
April 30, 2025 06:30 ET (10:30 GMT)
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