GeneDx (WGS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenues reached $121M, with full-year revenues at $427.5M–$428M, driven by 54% exome and genome revenue growth and strong test volume expansion.

• Leadership in rare disease genomics reinforced by FDA Breakthrough Device designation, the largest rare disease dataset (Infinity), and broad adoption among geneticists and pediatric specialists.

• Strategic expansion into new markets (general pediatrics, NICU, prenatal, adult specialists, international) with a nearly tripled sales force for 2026.

• Continued investment in AI, proprietary tools, and acquisition of Fabric Genomics to enhance diagnostic yield and efficiency.

• Reaffirmed 2026 guidance, expecting a breakout year with compounding growth across multiple markets.

Financial highlights

• Q4 2025 total revenues up 27%–32% year-over-year; exome/genome revenues up 32% year-over-year.

• Full year 2025 revenue was $427.5M–$428M, up 41%–54% year-over-year (58% excluding a 2024 one-time benefit).

• Adjusted gross margin reached 71% for Q4 and full year 2025, up from 65% in 2024.

• Adjusted net income was $4.4M for Q4 and $41.8M for the full year.

• Cash on hand at year-end 2025 was $172M.

Outlook and guidance

• 2026 revenue guidance: $540M–$555M; exome/genome volume growth of 33%–35%.

• Adjusted gross margin expected at ~70% for 2026; adjusted net income positive for the full year and each quarter.

• Foundational markets expected to contribute 25%–27% to growth; expansion markets 7%–8%; future markets ~1%.

• Q1 2026 projected near breakeven due to seasonality and investment ramp; double-digit operating margin targeted by Q4.

• Conservative assumptions for new market ramp, reimbursement, and Medicaid expansion; upside possible if adoption accelerates.