GeneDx Holdings Corp (NASDAQ:WGS), a leader in genomic diagnostics for rare diseases, reported its fourth quarter and full-year 2025 financial results, delivering a mixed performance against Wall Street expectations. The company's revenue narrowly missed consensus estimates, while its adjusted profitability exceeded forecasts. Following the release, the stock experienced a notable decline in after-hours and pre-market trading, reflecting investor scrutiny of the results and the company's forward-looking guidance.
Earnings Snapshot vs. Estimates
The company's financial performance for the fourth quarter presented a nuanced picture when held against analyst projections.
- Revenue: GeneDx reported Q4 2025 revenue of $121.0 million. This fell slightly short of the analyst consensus estimate of approximately $121.6 million.
- Adjusted Earnings Per Share (EPS): The company posted an adjusted net income of $4.4 million for the quarter, resulting in an adjusted EPS of $0.14. This surpassed the analyst estimate of $0.1125 per share.
For the full year 2025, the company reported total revenue of $427.5 million, representing a 41% year-over-year increase. A significant portion of this growth was driven by the core exome and genome testing business, where revenue surged 54% to $360.3 million.
Market Reaction and Price Action
The market's immediate response to the earnings report was negative. In the trading sessions following the release, GeneDx's stock price declined significantly. This reaction suggests investors may be focusing on the revenue miss and digesting the company's investments for future growth, which pressured near-term profitability on a GAAP basis. The company reported a GAAP net loss of $17.7 million for the quarter, contrasting with its adjusted profit.
The post-earnings sell-off extends a recent period of weakness for the stock, which has seen negative performance over the past month.
Strategic Highlights and 2026 Outlook
Beyond the quarterly numbers, the earnings release emphasized several strategic achievements and provided formal guidance for 2026. Management highlighted the launch of its "GeneDx Infinity" dataset, expansion into general pediatrics and prenatal diagnostics, and progress in securing broader insurance coverage.
For the full year 2026, GeneDx issued the following guidance:
- Revenue: $540 to $555 million.
- Exome & Genome Revenue Growth: 33% to 35%.
- Adjusted Gross Margin: At least 70%.
- Adjusted Net Income: Positive.
This company-provided revenue outlook of $540-$555 million sits above the current analyst consensus estimate for 2026 sales, which stands at approximately $542.85 million. The guidance for continued robust growth in its high-margin core business and a return to adjusted profitability appears to be a key message from management aiming to reassure investors of its long-term trajectory.
Financial Health and Operational Metrics
The report also detailed the company's strengthening operational profile:
- Strong Gross Margin: The adjusted gross margin expanded to 71% for both the fourth quarter and the full year, up from 65% for full-year 2024, indicating improved efficiency.
- Volume Growth: Exome and genome test volume grew 34.3% year-over-year in Q4, demonstrating continued market adoption.
- Solid Cash Position: The company ended the year with $172.3 million in cash, cash equivalents, and marketable securities.
Conclusion
GeneDx's Q4 2025 results underscore a company in transition, balancing significant top-line growth and margin expansion against the costs of scaling its platform and expanding into new markets. While the revenue miss and GAAP loss contributed to negative market sentiment, the outperformance on adjusted EPS and an above-consensus revenue guide for 2026 highlight the underlying operational momentum. The coming quarters will be critical for the company to demonstrate it can execute on its growth initiatives while translating its industry-leading dataset into sustained profitability.
For a detailed look at future quarterly estimates and historical earnings performance for GeneDx, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investing carries risks, including the potential loss of principal.
