Open the filing on EDGARGeneDx Reports Second Quarter 2026 Financial Results
- 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 of 70% and adjusted net income 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., August 3, 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)
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:
| Metric | Full Year 2026 Guidance | Third Quarter 2026 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
Forward-looking statements notice
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™ - the world’s largest rare disease genomic dataset. This unparalleled foundation powers GeneDx’s ExomeDx™ and GenomeDx™ 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 | |
|---|
| Reported | Depreciation and amortization | Stock-based compensation | Restructuring costs | Change in FV of financial liabilities | Other | 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 | $(0.60) | | | | | | $0.01 |
| Diluted (loss) earnings per share | $(0.60) | | | | | | $0.01 |
| Three months ended June 30, 2025 | |
|---|
| Reported | Depreciation and amortization | Stock-based compensation | Restructuring costs | Change in FV of financial liabilities | Other | 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 | $0.38 | | | | | | $0.57 |
| Diluted earnings per share | $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 |
|---|
| Reported | Depreciation and amortization | Stock-based compensation | Restructuring costs | Change in FV of financial liabilities | Extinguishment of debt | Other | 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 | $(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.
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 | 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.
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 | |
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 | $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.
Contacts
Investors@GeneDx.com
Press@GeneDx.com