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 income¹ 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

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 31, 2025			Three months ended December 31, 2024
	GeneDx	Other¹	Total	GeneDx	Other¹	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	Other¹	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
	Reported			Depreciation and amortization			Stock-based compensation expense			Restructuring costs			Change in FV of warrants		Other¹			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	)		(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
	Reported			Depreciation and amortization			Stock-based compensation expense			Restructuring costs			Change in FV of warrants		Other¹			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
	Reported			Depreciation and amortization			Stock-based compensation expense			Restructuring costs			Change in FV of warrants		Other¹			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 assets¹		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.

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Contacts

Investor Relations Contact:

Investors@GeneDx.com

Media Contact:

Press@GeneDx.com