Earnings release
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GeneDx Reports Second Quarter 2026 Financial Results August 3, 2026 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 (1) of 70% and adjusted net income (1) 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.--(BUSINESS WIRE)--Aug. 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) (1) 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
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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 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
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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(2) 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
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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(1) $ (0.60) $ 0.01 Diluted (loss) earnings per share(1) $ (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(2) 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 (1) $ 0.38 $ 0.57 Diluted earnings per share (1)$ 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(2) 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
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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 (1) $ (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. GeneDx Holdings Corp. 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(1) 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
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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. GeneDx Holdings Corp. 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 GeneDx Holdings Corp. 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
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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 (1) $ 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260803559557/en/ Investor Relations Contact: Investors@GeneDx.com Media Contact: Press@GeneDx.com Source: GeneDx