GeneDx (NASDAQ:WGS) Posts Quarterly Earnings Results, Misses Expectations By $0.22 EPS

GeneDx (NASDAQ:WGS) posted its quarterly earnings data on Monday. The company reported ($0.28) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.22), FiscalAI reports. The company had revenue of $102.25 million for the quarter, compared to analyst estimates of $112.46 million. GeneDx had a negative net margin of 17.58% and a positive return on equity of 8.85%. During the same period in the previous year, the business earned ($0.23) EPS.

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 Stock Performance

NASDAQ WGS opened at $34.51 on Wednesday. The business’s 50-day moving average price is $70.50 and its 200 day moving average price is $106.59. The company has a current ratio of 2.46, a quick ratio of 2.34 and a debt-to-equity ratio of 0.16. GeneDx has a twelve month low of $32.84 and a twelve month high of $170.87. The company has a market capitalization of $1.01 billion, a PE ratio of -12.88 and a beta of 2.06.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Zacks Research lowered shares of GeneDx from a “strong-buy” rating to a “hold” rating in a report on Friday, April 24th. Jefferies Financial Group set a $150.00 price target on shares of GeneDx in a research note on Monday, February 23rd. Wells Fargo & Company reissued an “overweight” rating and issued a $75.00 price objective (down from $155.00) on shares of GeneDx in a research report on Tuesday. Piper Sandler reissued an “overweight” rating and set a $130.00 price objective (down from $160.00) on shares of GeneDx in a research note on Tuesday, February 24th. Finally, BTIG Research decreased their target price on shares of GeneDx from $170.00 to $90.00 and set a “buy” rating on the stock in a research report on Tuesday. Seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $96.43.

Insider Activity

In related news, CFO Kevin Feeley sold 6,187 shares of the business’s stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $78.61, for a total value of $486,360.07. Following the completion of the sale, the chief financial officer directly owned 18,674 shares in the company, valued at approximately $1,467,963.14. The trade was a 24.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Keith A. Meister purchased 140,026 shares of the company’s stock in a transaction that occurred on Thursday, March 5th. The shares were bought at an average cost of $81.19 per share, with a total value of $11,368,710.94. Following the transaction, the director directly owned 3,228,150 shares of the company’s stock, valued at $262,093,498.50. The trade was a 4.53% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders sold a total of 104,028 shares of company stock valued at $7,377,165 in the last 90 days. 29.60% of the stock is currently owned by insiders.

Institutional Trading of GeneDx

Several institutional investors have recently made changes to their positions in the stock. Kestra Advisory Services LLC acquired a new stake in shares of GeneDx during the 4th quarter worth $27,000. Quarry LP grew its position in GeneDx by 248.8% during the third quarter. Quarry LP now owns 293 shares of the company’s stock valued at $32,000 after acquiring an additional 209 shares during the period. Greenline Wealth Management LLC purchased a new stake in GeneDx during the fourth quarter valued at about $33,000. Empowered Funds LLC acquired a new stake in GeneDx during the fourth quarter worth about $73,000. Finally, Van ECK Associates Corp acquired a new stake in GeneDx during the fourth quarter worth about $161,000. 61.72% of the stock is owned by hedge funds and other institutional investors.

More GeneDx News

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: Q1 operational highlight — GeneDx reported 34% year‑over‑year volume growth in exome and genome testing, showing demand resilience in core testing services that could support recovery if margins and volumes normalize. GeneDx Reports First Quarter 2026 Financial Results and Updates Full-Year Outlook
• Positive Sentiment: Some sell‑side firms kept “Buy” ratings even after lowering targets (Guggenheim, BTIG), indicating continued upside potential in analysts’ long‑term view despite the near‑term reset. Analyst Price Target Changes (Benzinga)
• Neutral Sentiment: Full Q1 earnings call materials and transcript are available for investors who want the management commentary and guidance detail. Earnings Call Transcript
• Negative Sentiment: Earnings and revenue miss — Q1 EPS was a ($0.28) loss vs. consensus (~($0.06)), and revenue came in about $102.3M vs. estimates near $112–114M — the miss is the proximate cause of the selloff. GeneDx Q1 results (MarketBeat)
• Negative Sentiment: Guidance cut and lower volume outlook — Management trimmed FY‑2026 revenue guidance to $475–$490M (vs. ~ $549M consensus) and warned of lower test volume for the year, a direct hit to the bull case and a major driver of the after‑hours decline. WGS stock slumps after-hours as firm predicts lower test volume for year
• Negative Sentiment: Profitability and cash concerns — Q1 showed a large operating and net loss, steep year‑over‑year deterioration in operating cash flow, and rising liabilities, heightening short‑term financial risk. QuiverQuant Q1 financial highlights
• Negative Sentiment: Multiple securities‑fraud/shareholder investigations announced — Several law firms (Block & Leviton, Frank R. Cruz, Ademi LLP, Johnson Fistel) have opened probes into the company’s disclosures, adding legal overhang and uncertainty. Block & Leviton investigation (GlobeNewswire)
• Negative Sentiment: Insider selling noted — recent disclosures show insider stock sales (including a CFO sale report), which investors often view unfavorably amid a weak quarter and guidance cut. Insider Selling: CFO Sells (American Banking News)
• Negative Sentiment: Market reaction — analysts and market coverage characterize the results as an “alarming” sales miss that triggered the large drop in trading and elevated volume, reflecting a swift re‑pricing of risk. The ‘Alarming’ Results That Caused GeneDx Stock To Plummet (Investors.com)

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.