GeneDx (NASDAQ:WGS) Releases Earnings Results, Misses Estimates By $0.22 EPS

GeneDx (NASDAQ:WGS) issued its quarterly earnings data on Monday. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.22), FiscalAI reports. The business had revenue of $102.25 million for the quarter, compared to analysts’ expectations of $112.46 million. GeneDx had a negative net margin of 4.92% and a positive return on equity of 14.73%.

Here are the key takeaways from GeneDx’s conference call:

• In Q1 GeneDx reported exome/genome test volume up 34% year?over?year (27,488 tests) with exome/genome revenue of $90.6M and adjusted gross margin near 69%, signaling robust clinical demand and market leadership.
• Total Q1 revenue came in about $12M below expectations, and management reduced full?year 2026 revenue guidance by ~12% to $475M–$490M, though it still expects ?30% exome/genome volume growth and adjusted profitability for the year.
• A key driver of the miss was softer non?core performance (~$6.5M) and a strategic repositioning of Fabric—resulting in a non?cash goodwill/intangible impairment of roughly $31.3M as Fabric is refocused toward international markets.
• Management highlighted durable competitive advantages — the GeneDx Infinity data asset (2.5M patients, >1M exomes/genomes, ~8M phenotypic profiles), a new reflex product, and targeted revenue?cycle and automation investments — as levers to improve ARR and genome unit economics over time.
• To align with revised expectations the company trimmed ~$25M of planned OpEx (mainly slowing future hiring/marketing), and outlined four priorities: improve blended ARR, accelerate market access/revenue cycle, optimize genome COGS, and enhance forecasting, while treating biopharma/data revenue as upside due to longer sales cycles.

GeneDx Price Performance

Shares of NASDAQ:WGS traded up $2.55 during midday trading on Monday, reaching $67.93. 2,847,018 shares of the company were exchanged, compared to its average volume of 749,786. The stock has a market cap of $1.99 billion, a PE ratio of -90.57 and a beta of 2.06. The business’s fifty day moving average is $71.45 and its two-hundred day moving average is $107.17. GeneDx has a one year low of $55.17 and a one year high of $170.87. The company has a current ratio of 2.46, a quick ratio of 2.34 and a debt-to-equity ratio of 0.16.

Analyst Upgrades and Downgrades

WGS has been the topic of a number of analyst reports. Jefferies Financial Group set a $150.00 target price on shares of GeneDx in a research note on Monday, February 23rd. BTIG Research cut their price target on GeneDx from $200.00 to $170.00 and set a “buy” rating for the company in a research note on Tuesday, February 24th. Guggenheim lowered their price objective on GeneDx from $170.00 to $100.00 and set a “buy” rating on the stock in a research report on Monday, March 30th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of GeneDx in a research note on Wednesday, January 21st. Finally, Wells Fargo & Company upgraded GeneDx from an “equal weight” rating to an “overweight” rating and set a $155.00 target price for the company in a research report on Monday, February 9th. Six investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $134.17.

Insider Activity at GeneDx

In other GeneDx news, CFO Kevin Feeley sold 392 shares of the business’s stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $65.19, for a total value of $25,554.48. Following the sale, the chief financial officer owned 34,942 shares in the company, valued at $2,277,868.98. The trade was a 1.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Katherine Stueland sold 2,172 shares of the business’s stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $65.19, for a total transaction of $141,592.68. Following the completion of the sale, the chief executive officer owned 93,216 shares in the company, valued at approximately $6,076,751.04. The trade was a 2.28% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 109,989 shares of company stock worth $7,888,023 in the last quarter. 29.60% of the stock is owned by company insiders.

Institutional Trading of GeneDx

Hedge funds have recently bought and sold shares of the stock. Regal Partners Ltd lifted its stake in GeneDx by 180.0% in the 4th quarter. Regal Partners Ltd now owns 7,000 shares of the company’s stock worth $910,000 after purchasing an additional 4,500 shares in the last quarter. Entropy Technologies LP purchased a new stake in GeneDx in the 4th quarter worth $832,000. Osaic Holdings Inc. lifted its stake in GeneDx by 54.2% in the 2nd quarter. Osaic Holdings Inc. now owns 8,835 shares of the company’s stock worth $816,000 after purchasing an additional 3,106 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in GeneDx by 11.5% in the 3rd quarter. BNP Paribas Financial Markets now owns 6,518 shares of the company’s stock worth $702,000 after purchasing an additional 673 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in GeneDx by 6.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,641 shares of the company’s stock worth $677,000 after purchasing an additional 453 shares in the last quarter. Hedge funds and other institutional investors own 61.72% of the company’s stock.

About GeneDx

GeneDx is a clinical diagnostics company specializing in comprehensive genetic and genomic testing for rare and inherited disorders. The company offers a broad portfolio of assays, including targeted gene panels, whole exome sequencing, whole genome sequencing and chromosomal microarray analysis. GeneDx’s laboratory services support the diagnosis of a wide range of conditions—from rare pediatric diseases and hereditary cancer syndromes to neuromuscular and metabolic disorders—by providing clinicians with detailed variant interpretation and reporting.

Founded in 2000 and based in Gaithersburg, Maryland, GeneDx was established with the aim of accelerating the translation of genomic discoveries into clinical care.