GeneDx Holdings Corp. reported first‑quarter 2026 revenue of $102.3 million, up 17% year‑over‑year, driven by a 34% increase in exome and genome testing volume to 27,488 tests and $90.6 million in revenue from that segment. Adjusted gross margin held steady at 69%, flat against the same period in 2025, indicating that the company’s core pricing and cost structure remain resilient despite headwinds in other areas.
The company posted an adjusted net loss of $8.2 million for the quarter, a reversal from an adjusted net income of $9.2 million in Q1 2025. Adjusted earnings per share were –$0.28, missing the consensus estimate of –$0.06 by $0.22, a miss of roughly 366% relative to expectations.
GeneDx lowered its full‑year revenue guidance to $475‑$490 million from the previously forecast $540‑$555 million, a reduction of about 12%. The company also revised its adjusted net income guidance to a positive range, reflecting the impact of a lower blended average reimbursement rate of approximately $3,300 and softer performance in non‑core business lines. Management cited a mix shift toward genome testing and a lower parental sample mix as additional contributors to the lower average reimbursement rate.
In a statement, CEO Katherine Stueland noted that the company remains confident in delivering more than 30% volume growth, a 70% gross margin, and profitability on an adjusted basis for the year. CFO Kevin Feeley added that GeneDx is cutting $25 million of planned operating expenses for the year, a reduction in future planned increases rather than a cut to current run‑rate spend.
Investors reacted negatively, citing the guidance cut and earnings miss as key concerns. The market’s response underscores the importance of the company’s ability to translate strong volume growth into sustainable profitability amid reimbursement pressures and non‑core business challenges.
Overall, GeneDx’s Q1 results highlight a continued demand for its core testing services but also reveal pricing and mix challenges that are prompting a more conservative outlook. The company’s focus on cost discipline and strategic adjustments will be closely watched as it seeks to regain the growth momentum seen in 2025.
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