GeneDx Holdings Corp. reported fourth‑quarter 2025 revenue of $121.0 million, up 5.5 % from the $116.7 million earned in Q3 2025 and 27.5 % from the $95.3 million in Q4 2024. Adjusted earnings per share were $0.14, beating the consensus estimate of $0.11 by $0.03 and representing a 27 % increase over the $0.11 estimate. Adjusted gross margin held at 71 %, a 1‑percentage‑point lift from the 70 % margin recorded in the prior year.
Exome and genome testing revenue, the company’s core segment, rose to $104.0 million, a 5.5 % increase from the previous quarter. The growth was driven by higher test volume and pricing power, supported by GeneDx’s AI‑driven interpretation platform and its expanding data moat, which together improve diagnostic yield and enable stronger reimbursement rates.
Adjusted gross margin expansion to 71 % reflects a higher mix of high‑margin services and effective pricing power. In contrast, GAAP net loss for the quarter was $17.7 million, a result of significant investments in the Infinity platform and commercial expansion. The company’s adjusted net income, however, was $16.8 million, up from $14.7 million in Q3 2025, underscoring the impact of non‑GAAP adjustments on profitability.
Management reaffirmed its 2026 outlook, projecting revenue of $540–$555 million, a 33–35 % increase in exome and genome revenue, and an adjusted gross margin of at least 70 %. The guidance signals confidence in continued demand in NICU, general pediatrics, and international markets, and reflects the company’s belief that its data moat and AI platform will sustain growth and margin expansion.
Investor reaction was tempered by the narrow revenue beat and the GAAP net loss, leading to a cautious market stance. Analysts noted that while the earnings beat and strong guidance are positive, the GAAP loss and ongoing investment focus may weigh on short‑term profitability expectations.
Management highlighted continued growth in test volume and pricing power, noting that the company’s data moat and AI‑driven interpretation platform are driving higher diagnostic yield and stronger reimbursement rates. The company also reaffirmed its full‑year 2026 outlook, projecting revenue of $540–$555 million, a 33–35 % increase in exome and genome revenue, and an adjusted gross margin of at least 70 %. These results and guidance signal robust demand for GeneDx’s rare‑disease diagnostics and reinforce confidence in its high‑margin business model.
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