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1. Company Snapshot

1.a. Company Description

GeneDx Holdings Corp.is a patient centered health intelligence company.It engages in transforming healthcare by applying AI and machine learning to multidimensional, longitudinal clinical and genomic data to build dynamic models of human health and defining optimal, individualized health trajectories.


The firm, through its Centrellis health intelligence platform, generates a more complete understanding of disease and wellness and provides science-driven solutions to the most pressing medical needs.The company was founded by Eric Schadt in October 2015 and is headquartered in Stamford, CT.

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1.b. Last Insights on WGS

GeneDx Holdings Corp.'s recent performance is driven by strong Q2 earnings and revenue beat, with record revenues and surging profits. The company raised its 2025 sales outlook, fueling a significant stock jump. Additionally, GeneDx possesses a right combination of ingredients for a likely earnings beat, with an impressive earnings surprise history. Analysts expect a 26.17% upside in the stock, with a consensus price target hinting at a 32.62% upside potential. A golden cross in its 50-day and 200-day moving averages also suggests a good pick for investors from a technical perspective.

1.c. Company Highlights

2. GeneDx Posts Strong Q3 2025 Earnings, Driven by Exome and Genome Test Growth

GeneDx reported third-quarter 2025 revenues of $116.7 million, a 52% increase year-over-year, with $98.9 million from exome and genome tests, up 66% from the same quarter last year. The company achieved an adjusted gross margin of 74%, driven by favorable mix shift, improved reimbursement, and lower COGS. GeneDx generated $14.7 million in adjusted net income and $0.51 of adjusted basic EPS in the third quarter of 2025, beating estimates of $0.28. The actual EPS came out at $0.49.

Publication Date: Oct -31

📋 Highlights
  • Revenue Surge: GeneDx reported Q3 2025 revenues of $116.7M, a 52% YoY increase, with exome/genome tests driving $98.9M (66% growth).
  • Test Volume Acceleration: Delivered 25,702 exome/genome tests in Q3, a 33% quarter-over-quarter growth, with full-year exome/genome growth guided at 53–55%.
  • Gross Margin Expansion: Achieved 74% adjusted gross margin, boosted by favorable reimbursement rates ($3,500+ per test) and lower COGS.
  • Strategic Sales Expansion: Plans to double sales force size to 20+ call points, focusing on pediatric markets and workflow optimization for faster adoption.
  • Liquidity & Guidance: Raised 2025 revenue guidance to $425–428M, with $156M in cash reserves and 80% US market share in clinical exome/genome testing.

Revenue Growth and Margin Expansion

The company's exome and genome tests grew to 25,702, with growth accelerating to 33% in the third quarter. The average reimbursement rate for exome and genome was over $3,500 a test in the third quarter. GeneDx raised its 2025 revenue guidance to $425 million to $428 million, with exome and genome revenue guidance increased to deliver between 53% and 55% growth for full year 2025.

Operational Highlights and Future Plans

GeneDx is leveraging AI tools to harness the power of its data and scale its platform. The company plans to double its sales force size over the coming quarters, with a focus on hiring top talent. GeneDx is also making investments in education, workflow, and sales to expand into the pediatric market, a new segment for the company. As Katherine Stueland emphasized, "each sample represents a family in need of an accurate diagnosis," highlighting the company's focus on urgent and purposeful growth.

Valuation and Growth Expectations

With a P/E Ratio of 1818.0 and an EV/EBITDA of 175.04, GeneDx's valuation suggests high growth expectations. Analysts estimate next year's revenue growth at 23.0%. The company's business model has proven the ability to accrete EPS upwards, and GeneDx expects to make investments to take advantage of the large opportunity ahead.

Regulatory and Policy Developments

GeneDx is making progress in newborn genetic screening, including the Florida Sunshine Genetics Act and the GUARDIAN study. The company expects to drive clinical testing in genetic newborn screening potentially in the first half of 2026 and anticipates the new policies to be a significant revenue driver in 2027 and beyond.

3. NewsRoom

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HALPER SADEH LLC ENCOURAGES IRHYTHM TECHNOLOGIES, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Nov -30

Source: prnewswire.com

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BOSUN Sells All 70K GeneDx Holdings Corp. Shares—Should Investors Follow Suit?

Nov -14

Source: fool.com

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Artificial Intelligence (AI) Stock Scores Vote of Confidence From Asset Manager, According to Recent Filing

Nov -11

Source: fool.com

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GeneDx to Showcase Advancements in Gene-Disease Discovery, Long-Read Sequencing and More at National Society of Genetic Counselors (NSGC) 2025 Annual Meeting

Nov -06

Source: businesswire.com

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Y Intercept Hong Kong Ltd Takes $589,000 Position in GeneDx Holdings Corp. $WGS

Nov -06

Source: defenseworld.net

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GeneDx Holdings Corp. (WGS) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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GeneDx Holdings Corp. (WGS) Q3 Earnings and Revenues Surpass Estimates

Oct -28

Source: zacks.com

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GeneDx Reports Third Quarter 2025 Financial Results and Business Highlights

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.16%)

6. Segments

GeneDx

Expected Growth: 12.0%

GeneDx's 12.0% growth is driven by increasing demand for genetic testing, expansion into new markets, and strategic partnerships. The company's comprehensive testing portfolio, including whole-exome sequencing and non-invasive prenatal testing, addresses growing needs in reproductive health and rare genetic disorders. Additionally, investments in digital health and AI-powered analytics enhance the customer experience and drive business growth.

Legacy Sema4

Expected Growth: 16.0%

Legacy Sema4's 16.0% growth is driven by increasing demand for genetic testing, expansion into new markets, and strategic partnerships. Additionally, advancements in genomic sequencing, growing adoption of precision medicine, and rising healthcare expenditure contribute to its growth momentum.

7. Detailed Products

Genetic Testing

Comprehensive genetic testing services for rare genetic disorders, including whole-exome sequencing, whole-genome sequencing, and gene panels.

Genomic Analysis

Advanced genomic analysis services, including variant interpretation, gene expression analysis, and genomic data integration.

Genetic Counseling

Expert genetic counseling services for individuals and families affected by genetic disorders.

Pharmacogenomics

Personalized medicine services, including pharmacogenomic testing and analysis.

Genomic Data Analytics

Advanced genomic data analytics services, including data integration, visualization, and interpretation.

8. GeneDx Holdings Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

GeneDx Holdings Corp. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of genetic testing and diagnosis.

Bargaining Power Of Customers

GeneDx Holdings Corp. has a diverse customer base, including healthcare providers, patients, and pharmaceutical companies, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

GeneDx Holdings Corp. relies on a few key suppliers for genetic testing equipment and reagents, which gives them some bargaining power, but the company's scale and reputation mitigate this risk.

Threat Of New Entrants

The genetic testing market is rapidly evolving, and new entrants with innovative technologies or business models could potentially disrupt GeneDx Holdings Corp.'s market share.

Intensity Of Rivalry

The genetic testing market is highly competitive, with several established players and new entrants vying for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.95%
Debt Cost 3.95%
Equity Weight 80.05%
Equity Cost 15.18%
WACC 12.94%
Leverage 24.92%

11. Quality Control: GeneDx Holdings Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Accolade

A-Score: 4.6/10

Value: 8.0

Growth: 5.8

Quality: 3.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Schrödinger

A-Score: 3.4/10

Value: 4.6

Growth: 2.8

Quality: 3.9

Yield: 0.0

Momentum: 7.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Teladoc Health

A-Score: 3.4/10

Value: 6.7

Growth: 5.1

Quality: 3.2

Yield: 0.0

Momentum: 3.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
GeneDx

A-Score: 3.4/10

Value: 0.2

Growth: 4.3

Quality: 5.3

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Augmedix

A-Score: 3.2/10

Value: 6.4

Growth: 4.6

Quality: 3.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Simulations Plus

A-Score: 3.0/10

Value: 5.6

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

158.84$

Current Price

158.84$

Potential

-0.00%

Expected Cash-Flows