GeneDx (NASDAQ:WGS) Announces Earnings Results

GeneDx (NASDAQ:WGS) announced its earnings results on Monday. The company reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.21, FiscalAI reports. The business had revenue of $123.10 million during the quarter, compared to the consensus estimate of $122.93 million. GeneDx had a negative net margin of 24.10% and a positive return on equity of 1.93%. During the same period in the prior year, the firm earned ($0.27) earnings per share.

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

• GeneDx reported Q3 revenue of $123.1 million, 72% adjusted gross margin and $8.6 million in adjusted net income. It raised full-year adjusted gross margin guidance to about 71% and adjusted net income guidance to at least $12 million, while reaffirming revenue guidance of $475 million–$490 million, now expected at the low end.
• The company adjusted its full-year exome and genome volume growth outlook to at least 28% and revenue growth to at least 17%, citing new requirements to collect payer documentation before testing. Accessions grew 28% year over year versus 25% growth in reported test volume; management said most of the gap reflects delays, though some orders may be canceled.
• Revenue-cycle improvements lifted the outpatient genome collection rate to 36% from 32% in Q2, while the blended average reimbursement rate rose 5% sequentially to $3,436. GeneDx said most denials it analyzed were administrative or procedural, and it expects further gains as it implements new processes and technology.
• Demand grew across the company’s markets, and management said its GenPeds sales team is already paying for itself and could become its largest single customer segment by volume in 2027. The biopharma and data business also grew for a second consecutive quarter, adding Mirum Pharmaceuticals and Beren Therapeutics as sponsored-testing partners.
• GeneDx expects PAMA changes to create a mid-single-digit headwind to total revenue in 2027, with about 45% of revenue exposed. Management expects revenue-cycle improvements to more than offset that pressure, but did not provide 2027 guidance.

GeneDx Price Performance

Shares of WGS opened at $54.83 on Wednesday. The firm has a market cap of $1.64 billion, a price-to-earnings ratio of -14.51 and a beta of 2.00. The stock has a 50 day moving average of $75.82 and a 200-day moving average of $70.91. The company has a current ratio of 3.30, a quick ratio of 3.06 and a debt-to-equity ratio of 0.40. GeneDx has a 52 week low of $32.21 and a 52 week high of $170.87.

Insider Buying and Selling at GeneDx

In other GeneDx news, CEO Katherine Stueland sold 10,501 shares of GeneDx stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $97.61, for a total value of $1,025,002.61. Following the completion of the transaction, the chief executive officer owned 115,476 shares of the company’s stock, valued at $11,271,612.36. The trade was a 8.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Feeley sold 3,728 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $97.61, for a total transaction of $363,890.08. Following the sale, the chief financial officer owned 44,945 shares of the company’s stock, valued at approximately $4,387,081.45. The trade was a 7.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 19,206 shares of company stock worth $1,808,056 over the last 90 days. 25.17% of the stock is currently owned by company insiders.

Key GeneDx News

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: GeneDx reported third-quarter revenue of $123.1 million, slightly above estimates, and earnings of $0.28 per share versus the $0.07 consensus. Zacks report
• Neutral Sentiment: The company reiterated its full-year 2026 outlook, including revenue guidance of $475 million to $490 million, a range that brackets analysts’ $481.1 million estimate.
• Negative Sentiment: Testing volume disappointed: GeneDx reported 32,134 exome and genome results, up 25%, and lowered its 2026 growth target for those tests to at least 28%. The slowdown raised concerns about growth momentum. The Motley Fool article
• Negative Sentiment: GeneDx’s fourth-quarter outlook reportedly fell short of consensus, adding to investor concerns even though third-quarter results beat estimates. Seeking Alpha article
• Negative Sentiment: Put-option trading surged to 6,604 contracts—about 255% above its typical daily volume—suggesting elevated demand for downside protection or bearish positioning. Schaeffers Research article

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. BTIG Research restated a “buy” rating and set a $85.00 price objective (down from $90.00) on shares of GeneDx in a research note on Tuesday. Guggenheim lifted their price target on shares of GeneDx from $74.00 to $83.00 and gave the stock a “buy” rating in a research note on Thursday, October 1st. Zacks Research cut shares of GeneDx from a “strong-buy” rating to a “hold” rating in a report on Friday, October 9th. Wall Street Zen raised shares of GeneDx from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of GeneDx in a research report on Monday, November 2nd. Seven 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 stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $90.14.

GeneDx Company Profile

GeneDx is a genomic testing company focused on helping clinicians diagnose rare and inherited conditions. Its services include whole exome and whole genome sequencing, along with other genetic tests and clinical interpretation of results. The company’s testing is used by healthcare providers to support diagnosis and care decisions, particularly for patients with suspected rare genetic disorders. GeneDx also offers testing related to hereditary cancer risk. Founded in 2000 by researchers with experience at the National Institutes of Health, GeneDx has developed its business around applying genomic information in clinical care.