-- Reported second quarter 2026 revenue of $114.4 million, including
$100.3 million in exome and genome revenue
-- Reported exome and genome volume growth of 32% year-over-year
-- Reported adjusted gross margin(1) of 70% and adjusted net income(1) of
$0.4 million
-- Reiterating full year 2026 revenue guidance of $475 to $490 million
with exome and genome volume growth of at least 30%
-- Hosting conference call today at 4:30 p.m. ET
GAITHERSBURG, Md.--(BUSINESS WIRE)--August 03, 2026--
GeneDx Holdings Corp. (Nasdaq: WGS), the leader in rare disease diagnosis and improving health through the power of genomic data, today reported its financial results for the second quarter of 2026.
"Our team's unwavering focus and agility drove a strong second quarter. By delivering healthy revenue, volume, and gross margin growth, we successfully navigated our return to profitability," said Katherine Stueland, CEO of GeneDx. "We are managing the transition to genome testing, making progress on each of our key imperatives -- optimizing unit economics, growing utilization, and delivering the best products at unmatched scale -- while continuing to extend our industry-leading position in both exome and genome testing to reach as many patients and families as soon as possible."
Second Quarter 2026 Financial Results (Unaudited)(1)
Revenue
-- Revenue grew to $114.4 million, an increase of 11% year-over-year.
-- Exome and genome test revenue grew to $100.3 million, an increase of
17% year-over-year.
Exome and genome volume
-- Exome and genome test result volume grew to 30,785, an increase of 32%
year-over-year.
Gross margin
-- Adjusted gross margin of 70% in the second quarter of 2026 is up from
69% in the first quarter of 2026 and compares to 71% in the second
quarter of 2025.
-- GAAP gross margin was 68%.
Operating expenses
-- Adjusted total operating expenses were $80.3 million, representing 70%
of revenue.
-- Total GAAP operating expenses were $95.7 million.
Net income
-- Adjusted net income was $0.4 million, up $8.6 million from the first
quarter of 2026 and compared to adjusted net income of $16.4 million in
the second quarter of 2025.
-- GAAP net loss was $17.7 million.
Cash position
-- Cash, cash equivalents, marketable securities and restricted cash was
$133.5 million as of June 30, 2026.
-- On August 3, 2026, the Company amended and restated its existing loan
agreement with Blackstone, adding an additional $50.0 million term loan
facility and increasing the aggregate principal amount available under
the facility to $150.0 million. Concurrently, an affiliate of Blackstone
agreed to purchase approximately $5.0 million of the Company's Class A
common stock at $61.00 per share in a private placement.
-- Combined with the cash, cash equivalents, marketable securities
and restricted cash balance of $133.5 million as of June 30, 2026,
the Company's pro forma cash position following this transaction
is approximately $188 million.
(1) Adjusted gross margin, adjusted total operating expenses and adjusted
net income are non-GAAP financial measures. See appendix for a
reconciliation of GAAP to non-GAAP figures presented.
GeneDx 2026 Guidance
GeneDx has reaffirmed its full year 2026 guidance and has provided guidance for the third quarter of 2026. Management expects GeneDx to deliver:
Full Year 2026 Third Quarter 2026
Metric Guidance Guidance
----------------------- ---------------------- ------------------------
Revenue $475 to $490 million $122 to $124 million
Exome and genome volume At least 30% growth 33,200 tests
Exome and genome revenue At least 20% growth $110 to $112 million
Adjusted gross margin Approximately 70% Approximately 70%
Adjusted net income Positive Approximately $2 million
Second Quarter 2026 and Recent Business Highlights
Strategic Expansion and Market Leadership
-- Appointed Mark Gardner as President to lead GeneDx's commercial and
operations teams through the next phase of growth, with a focus on
strengthening execution, scaling efficiently, and expanding the company's
leadership in genomic medicine.
-- Launched redesigned exome and genome reports to streamline the delivery
of genomic insights to non-genetics clinicians as part of a broader suite
of customer experience improvements rolling out this summer.
Expanded Coverage for Exome and Genome
-- Improved access to exome sequencing in Texas with new Medicaid coverage
effective May 1, 2026, building on existing genome sequencing coverage in
the state.
-- Received California Medicaid (Medi-Cal) pricing for genome sequencing
effective July 1, 2026, with pricing published at 100% of the Medicare
rate. Coverage for genome sequencing in California was originally
announced as effective November 1, 2025.
-- Secured outpatient genome sequencing coverage from Carelon, the
nation's largest lab benefit manager, opening access to up to 56 million
covered lives. The policy is effective June 14, 2026.
-- Expanded the total number of state Medicaid programs covering
outpatient exome and/or genome sequencing to 39 following Mississippi
Medicaid's announcement of coverage for both tests effective July 1,
2026.
Innovation and Clinical Leadership
-- Contributed to 26 peer-reviewed publications, 41 conference
presentations, and 50 abstracts in the first half of 2026, reflecting the
depth and breadth of the company's scientific expertise and its
commitment to moving the field forward.
Webcast and Conference Call Details
GeneDx will host a conference call today, August 3, 2026, at 4:30 p.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/.
Non-GAAP Financial Measures
GeneDx believes non-GAAP measures are useful in evaluating its operating performance. GeneDx uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GeneDx believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding certain items such as stock-based compensation expense, depreciation and amortization, restructuring costs, changes in the fair value of financial liabilities, non-core lease costs, and other expenses that the Company believes are not indicative of its ongoing operations. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our future performance and our market opportunity, including our expectations for full year and third quarter 2026 revenue, exome and genome revenue and test volumes, adjusted gross margin and adjusted net income. 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, and (iv) future expansion of insurance coverage for exome and genome testing. 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, 2025, filed with the U.S. Securities and Exchange Commission (the "SEC") on February 23, 2026, our
Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026, filed with the SEC on May 4, 2026, our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026, filed with the SEC on August 3, 2026, 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
GeneDx's (Nasdaq: WGS) mission is to empower everyone to live their healthiest life through genomics. GeneDx combines unmatched clinical expertise, advanced technology, and the power of GeneDx Infinity$(TM)$ -- the world's largest rare disease genomic dataset. This unparalleled foundation powers GeneDx's ExomeDx(TM) and GenomeDx(TM) tests -- ranked #1 by expert geneticists and granted FDA Breakthrough Device designation -- enabling clinicians to deliver precise, fast, and actionable diagnoses. GeneDx Infinity also fuels discovery for biopharma, with the most powerful AI-driven genomic intelligence. A genomics pioneer over the last 25 years, diagnosing more than 4,800 genetic diseases and publishing more than 1,100 research publications, GeneDx is building the network that will drive the future of genomic precision medicine. For more information, visit genedx.com and connect with us on LinkedIn, Facebook, and Instagram.
Volume & Revenue
2Q26 1Q26 4Q25 3Q25 2Q25
------- ------- ------- ------- -------
Volumes
Whole exome,
whole genome 30,785 27,488 27,761 25,702 23,246
Other panels 32,057 27,729 31,281 34,514 34,510
------ ------ ------ ------ ------
Total 62,842 55,217 59,042 60,216 57,756
====== ====== ====== ====== ======
Revenue ($
millions)
Whole exome,
whole genome $ 100.3 $ 90.6 $ 104.0 $ 98.9 $ 86.0
Other panels 11.6 10.7 13.3 14.6 14.1
Data
information 2.3 0.8 2.6 1.5 2.0
Software and
interpretation
services 0.2 0.2 1.1 1.7 0.6
------ ------ ------ ------ ------
Total $ 114.4 $ 102.3 $ 121.0 $ 116.7 $ 102.7
====== ====== ====== ====== ======
Unaudited Select Financial Information
Three months ended June 30, 2026
----------------------------------------------------------------------------------------------------------
Change in FV
Depreciation and Stock-based Restructuring of financial
Reported amortization compensation costs liabilities Other(2) Adjusted
------------ ---------------- ---------------- ----------------- ------------- -------- ------------
Diagnostic test
revenue $111,886 $ -- $ -- $ -- $ -- $ -- $111,886
Other revenue 2,554 -- -- -- -- -- 2,554
------- ------- --- ------- --- ------- ---- ---- ------ ------ -------
Total revenue 114,440 -- -- -- -- -- 114,440
Cost of
services 36,202 (1,726) (561) (47) -- -- 33,868
------- ------- ------- ------- --- ---- ------ ------ -------
Gross profit 78,238 1,726 561 47 -- -- 80,572
Gross margin 68.4% 70.4%
Research and
development 19,656 (271) (1,387) (1,036) -- -- 16,962
Selling,
general and
administrative 76,037 (4,717) (4,394) (2,212) -- (1,353) 63,361
------- ------- ------- ------- --- ---- ------ ------ -------
(Loss) income
from
operations (17,455) 6,714 6,342 3,295 -- 1,353 249
Interest
expense, net (1,185) -- -- -- -- 1,185 --
Other income
(expense),
net 382 -- -- -- (220) -- 162
Income tax
benefit 518 -- -- -- -- (518) --
------- ------- --- ------- --- ------- ---- ---- ------ ------ -------
Net (loss)
income $(17,740) $ 6,714 $ 6,342 $ 3,295 $(220) $ 2,020 $ 411
======= ======= === ======= === ======= ==== ==== ===== ====== =======
Basic (loss)
earnings per
share(1) $ (0.60) $ 0.01
Diluted (loss)
earnings per
share(1) $ (0.60) $ 0.01
Three months ended June 30, 2025
------------------------------------------------------------------------------------------------------------
Change in FV of
Depreciation and Stock-based Restructuring financial
Reported amortization compensation costs liabilities Other(2) Adjusted
------------ ---------------- ---------------- ----------------- --------------- -------- ------------
Diagnostic test
revenue $100,100 $ -- $ -- $ -- $ -- $ -- $100,100
Other revenue 2,592 -- -- -- -- -- 2,592
------- ------- --- ------- --- --- ----- ----- ------- ------ -------
Total revenue 102,692 -- -- -- -- -- 102,692
Cost of
services 31,790 (1,389) (193) -- -- -- 30,208
------- ------- ------- --- ----- ----- ------- ------ -------
Gross profit 70,902 1,389 193 -- -- -- 72,484
Gross margin 69.0% 70.6%
Research and
development 15,079 (209) (1,422) -- -- -- 13,448
Selling,
general and
administrative 46,863 (4,593) (6,198) (73) -- 6,937 42,936
------- ------- ------- --- ----- ---- ------- ------ -------
Income from
operations 8,960 6,191 7,813 73 -- (6,937) 16,100
Interest
expense, net (817) -- -- -- -- 817 --
Other income
(expense),
net 2,420 -- -- -- (2,181) 49 288
Income tax
benefit 246 -- -- -- -- (246) --
------- ------- --- ------- --- --- ----- ----- ------- ------ -------
Net income $ 10,809 $ 6,191 $ 7,813 $ 73 $ (2,181) $(6,317) $ 16,388
======= ======= === ======= === === ===== ===== ======= ====== =======
Basic earnings
per share(1) $ 0.38 $ 0.57
Diluted
earnings per
share(1) $ 0.36 $ 0.55
(1) Basic and diluted reported loss per share and Basic adjusted
earnings per share are calculated based on 29,710,139 weighted
average shares outstanding and Diluted adjusted earnings per share
are calculated based on 30,144,132 weighted average shares
outstanding for the three months ended June 30, 2026. Basic and
diluted earnings per share are calculated based on 28,579,704 and
29,753,933 weighted average shares outstanding for the three months
ended June 30, 2025, respectively.
(2) Other represents interest expense, net, income tax benefit and
non-core lease costs for all periods presented. For the three
months ended June 30, 2026, Other also includes costs related to
legal reserves. For the three months ended June 30, 2025, Other
includes transaction costs incurred in connection with the
acquisition of Fabric Genomics and a sales-and-use tax refund.
Unaudited Select Financial Information
Three months ended March 31, 2026
-----------------------------------------------------------------------------------------------------------------------------
Change in FV
Depreciation and Stock-based Restructuring of financial Extinguishment
Reported amortization compensation costs liabilities of debt Other(2) Adjusted
------------ ---------------- ---------------- ----------------- ------------- ---------------- --------- ------------
Diagnostic test
revenue $101,299 $ -- $ -- $ -- $ -- $ -- $ -- $101,299
Other revenue 955 -- -- -- -- -- -- 955
------- ------- --- ------- --- ----- ------ ------ ---- ------------ ------- -------
Total revenue 102,254 -- -- -- -- -- -- 102,254
Cost of
services 34,043 (1,462) (380) -- -- -- -- 32,201
------- ------- ------- ----- ------ ------ ---- ------------ ------- -------
Gross profit 68,211 1,462 380 -- -- -- -- 70,053
Gross margin 66.7% 68.5%
Research and
development 19,804 (224) (1,406) (224) -- -- -- 17,950
Selling,
general and
administrative 74,591 (5,123) (7,210) (215) -- -- (1,916) 60,127
Impairment loss 31,287 -- -- -- -- -- (31,287) --
Loss from
operations (57,471) 6,809 8,996 439 -- -- 33,203 (8,024)
Interest
expense, net (717) -- -- -- -- -- 717 --
Other (expense)
income, net (4,231) -- -- -- (2,540) 6,565 -- (206)
Income tax
expense (897) -- -- -- -- -- 897 --
------- ------- --- ------- --- ----- ------ ------ ---- ------------ ------- -------
Net loss $(63,316) $ 6,809 $ 8,996 $ 439 $(2,540) $ 6,565 $ 34,817 $ (8,230)
======= ======= === ======= === ===== ====== ====== === ============ ======= =======
Basic and
diluted loss
per share(1) $ (2.16) $ (0.28)
(1) Basic and diluted loss per share are calculated based on 29,335,126
weighted average shares outstanding for the three months ended
March 31, 2026.
(2) For the three months ended March 31, 2026, Other represents
interest expense, net, income tax expense and non-core lease costs,
costs related to legal reserves, and impairment of goodwill and
intangible assets associated with the Fabric Genomics acquisition.
GeneDx Holdings Corp.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
June 30, 2026 (Unaudited) December 31, 2025
--------------------------- ---------------------
Assets:
Current assets:
Cash and cash
equivalents $ 60,317 $ 104,997
Marketable
securities 72,231 66,285
Accounts receivable 83,610 74,370
Inventory, net 17,820 13,951
Prepaid expenses
and other current
assets 12,382 8,685
---------------------- --------------
Total current
assets 246,360 268,288
Operating lease
right-of-use assets 33,535 23,412
Property and
equipment, net 54,316 45,693
Goodwill 1,641 13,520
Intangible assets, net 141,350 168,481
Other assets(1) 4,284 4,316
---------------------- --------------
Total assets $ 481,486 $ 523,710
====================== ==============
Liabilities and
Stockholders' Equity:
Current liabilities:
Accounts payable
and accrued
expenses $ 42,091 $ 57,645
Short-term lease
liabilities 5,709 4,404
Other current
liabilities 26,828 46,859
---------------------- --------------
Total current
liabilities 74,628 108,908
Long-term debt, net of
current portion 96,836 48,176
Long-term lease
liabilities 64,857 56,046
Other liabilities 71 1,641
Deferred taxes 873 757
---------------------- --------------
Total
liabilities 237,265 215,528
---------------------- --------------
Stockholders' Equity:
Preferred stock -- --
Class A common
stock 3 3
Additional paid-in
capital 1,698,427 1,680,738
Accumulated deficit (1,454,551) (1,373,495)
Accumulated other
comprehensive income 342 936
---------------------- --------------
Total
stockholders'
equity 244,221 308,182
---------------------- --------------
Total
liabilities and
stockholders'
equity $ 481,486 $ 523,710
====================== ==============
(1) Other assets includes $1.0 million of restricted cash as of both June
30, 2026 and December 31, 2025.
GeneDx Holdings Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)
Three months ended June
30, Six months ended June 30,
-------------------------- ----------------------------
2026 2025 2026 2025
------------ ------------ ------------ --------------
Revenue
Diagnostic test
revenue $ 111,886 $ 100,100 $ 213,185 $ 185,859
Other revenue 2,554 2,592 3,509 3,948
---------- ---------- ---------- ----------
Total revenue 114,440 102,692 216,694 189,807
---------- ---------- ---------- ----------
Cost of services 36,202 31,790 70,245 60,429
---------- ---------- ---------- ----------
Gross profit 78,238 70,902 146,449 129,378
---------- ---------- ---------- ----------
Research and
development 19,656 15,079 39,460 27,656
Selling, general and
administrative 76,037 46,863 150,628 97,313
Impairment loss -- -- 31,287 --
---------- ---------- ---------- ----------
(Loss) income
from
operations (17,455) 8,960 (74,926) 4,409
---------- ---------- ---------- ----------
Non-operating
(expense) income,
net
Change in fair value
of financial
liabilities 220 2,181 2,760 1,081
Interest expense,
net (1,185) (817) (1,902) (1,457)
Loss on
extinguishment
of debt -- -- (6,565) --
Other income
(expense), net 162 239 (44) 448
---------- ---------- ---------- ----------
Total
non-operating
(expense)
income, net (803) 1,603 (5,751) 72
---------- ---------- ---------- ----------
(Loss) income before
income taxes (18,258) 10,563 (80,677) 4,481
Income tax benefit
(expense) 518 246 (379) (201)
---------- ---------- ---------- ----------
Net (loss) income $ (17,740) $ 10,809 $ (81,056) $ 4,280
========== ========== ========== ==========
Weighted-average
shares outstanding
of Class A common
stock - Basic 29,710,139 28,579,704 29,523,669 28,365,018
Basic (loss)
earnings per share,
Class A common
stock $ (0.60) $ 0.38 $ (2.75) $ 0.15
Weighted-average
shares outstanding
of Class A common
stock - Diluted 29,710,139 29,753,933 29,523,669 29,642,555
Diluted (loss)
earnings per share,
Class A common
stock $ (0.60) $ 0.36 $ (2.75) $ 0.14
GeneDx Holdings Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Six months ended June 30,
---------------------------------
2026 2025
------------------ -------------
Operating activities
Net (loss) income $ (81,056) $ 4,280
Adjustments to reconcile net loss to
net cash (used in) provided by
operating activities:
Depreciation and amortization
expense 13,523 11,869
Stock-based compensation expense 15,338 11,796
Change in fair value of financial
liabilities (2,760) (1,081)
Deferred tax expense 379 202
Change in third party payor reserves (1,022) 5,014
Loss on extinguishment of debt 6,565 --
Impairment loss 31,287 --
Other 2,157 1,510
Change in operating assets and
liabilities:
Accounts receivable (9,240) (9,889)
Inventory (3,973) (1,404)
Accounts payable and accrued
expenses (12,566) 7,199
Other assets and liabilities (20,021) (8,894)
---------- ---------
Net cash (used in) provided by
operating activities (61,389) 20,602
Investing activities
Acquisition of business, net of cash
acquired -- (33,195)
Purchases of marketable securities (29,065) (30,770)
Proceeds from sales of marketable
securities 2,272 --
Proceeds from maturities of marketable
securities 20,475 26,705
Purchases of property and equipment and
development of internal-use software (16,567) (8,498)
---------- ---------
Net cash used in investing activities (22,885) (45,758)
Financing activities
Proceeds from long term debt, net of
issuance costs 96,699 --
Proceeds from offerings, net of
issuance costs -- 13,766
Proceeds from issuance of common stock
from subscription agreements 476 --
Proceeds from issuance of common stock
pursuant to employee stock purchase
plan 1,793 1,262
Exercise of stock options 58 800
Repayment of long-term debt, including
prepayment penalty - Perceptive (54,000) --
Repayment and principal payments for
long-term debt - DECD (4,447) (602)
Finance lease principal payments (984) (1,162)
---------- ---------
Net cash provided by financing
activities 39,595 14,064
---------- ---------
Net decrease in cash, cash equivalents
and restricted cash (44,679) (11,092)
Cash, cash equivalents and restricted
cash, at beginning of period 105,989 86,202
---------- ---------
Cash, cash equivalents and restricted
cash, at end of period (1) $ 61,310 $ 75,110
========== =========
Supplemental disclosures of cash flow
information
Cash paid for interest $ 3,813 $ 3,210
Cash paid for taxes $ 2,221 $ 920
Lease liability from obtaining
right-of-use asset $ 12,086 $ --
Purchases of property and equipment in
accounts payable and accrued expenses $ 3,154 $ 5,752
(1) Cash, cash equivalents and restricted cash as of June 30, 2026
excludes marketable securities of $72.2 million.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260803559557/en/
CONTACT: Investor Relations Contact:
Investors@GeneDx.com
Media Contact:
Press@GeneDx.com
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