GeneDx Holdings Corp.

What they do

GeneDx offers exome and genome sequencing tests, including ExomeDx and GenomeDx, primarily for patients with rare and ultra-rare genetic disorders. Tests are ordered by clinicians and distributed through a direct sales force and laboratory distribution partners, with results delivered to healthcare providers. The company also uses its GeneDx Infinity dataset for variant interpretation and to support biopharma discovery. It acquired Fabric Genomics in May 2025 and had 25 years of operating history as of the 2025 10-K.

Revenue drivers

• Exome and genome testing — The primary revenue source: $100.3 million of $114.4 million total Q2 2026 revenue, or 88%, from 30,785 resulted exome and genome tests. Revenue is recognized when tests are resulted and billed to third-party payors, commercial and Medicaid.
• Targeted and panel testing — The remaining revenue, roughly $14.1 million in Q2 2026 based on the $114.4 million total less $100.3 million exome/genome. The 10-K states targeted and panel tests remain a meaningful portion of diagnostic tests ordered today, but exome/genome made up 49% of all test results in Q2 2026.
• Biopharma data and discovery — GeneDx states that GeneDx Infinity fuels discovery for biopharma, but no separate revenue figure for this activity is disclosed in the provided excerpts.

Recent performance

Q2 2026 revenue was $114.4 million, up 11% year-over-year, with exome and genome revenue of $100.3 million, up 17%. Exome and genome test volume grew 32% year-over-year to 30,785 tests, representing 49% of all test results versus 40% a year earlier. GAAP gross margin was 68% and adjusted gross margin was 70%, down from 71% in Q2 2025. GAAP net loss was $17.7 million, while adjusted net income was $0.4 million, up $8.6 million from Q1 2026 but below the $16.4 million adjusted net income in Q2 2025. Cash, equivalents, marketable securities and restricted cash totaled $133.5 million at June 30, 2026, and annual revenue has grown from $202.6 million in 2023 to $305.4 million in 2024 to $427.5 million in 2025.

Strategy

Management is focused on three stated imperatives: optimizing unit economics, growing utilization, and delivering products at scale, while transitioning the business to genome testing. Recent actions include acquiring Fabric Genomics in May 2025 to support genomic interpretation and AI use, launching redesigned exome and genome reports aimed at non-genetics clinicians, and expanding payor coverage. On August 3, 2026 the company amended and restated its Blackstone loan agreement, adding $50.0 million and increasing the facility to $150.0 million, while an affiliate of Blackstone agreed to buy about $5.0 million of Class A stock at $61.00 per share. The company also appointed Mark Gardner as President to lead commercial and operations teams.

Risks

• Reimbursement and payor coverage — The 10-K and 10-Q state that commercial success depends on third-party payors covering tests adequately, and payors may deny, recoup, or retroactively adjust payments for tests they contend were improperly billed or not medically necessary.
• Test volume and demand scaling — The 10-K risk summary states the company must scale infrastructure in advance of demand, and failure to sustain sufficient demand would negatively affect the business and its ability to maintain profitability.
• Competition and innovation — The 10-K states the company faces intense competition and may not remain competitive if it does not continue to innovate and provide useful products and services to providers, patients, and partners.
• AI use and related liability — The 10-K lists risks that challenges in properly managing the use of artificial intelligence could result in reputational harm, competitive harm, legal liability, and adversely affect results of operations.

Outlook

Management reaffirmed full year 2026 revenue guidance of $475 to $490 million with exome and genome volume growth of at least 30% and exome and genome revenue growth of at least 20%. For Q3 2026, guidance is revenue of $122 to $124 million, exome and genome volume of 33,200 tests, exome and genome revenue of $110 to $112 million, adjusted gross margin of approximately 70%, and adjusted net income of approximately $2 million. Full year 2026 adjusted gross margin guidance is approximately 70% and adjusted net income is expected to be positive. The company said its pro forma cash position after the August 2026 Blackstone amendment is approximately $188 million.