Cash flow generation has deteriorated significantly, with a free cash flow margin of -38.0% in 2026Q1 and a $23.2M working capital outflow.
| Cash from Operations | -9.31M | 33.28M | -28.5M | -180.15M | -319.15M | -190.43M | -93.13M |
| Operating CF Margin % | - | 7.78% | -9.33% | -88.93% | -135.99% | -89.74% | -51.93% |
| Operating CF Growth % | 374.68% | 216.78% | 84.18% | 43.55% | -67.59% | -104.49% | - |
| Net Income | -77.81M | -21.02M | -52.29M | -175.77M | -548.98M | -245.39M | -241.34M |
| Depreciation & Amortization | 26.36M | 25.22M | 21.95M | 35.83M | 59.31M | 21.81M | 11.73M |
| Stock-Based Compensation | 37.17M | 32.16M | 9.14M | -326K | 41.98M | 219.42M | 120.23M |
| Deferred Taxes | 450K | 0 | -343K | -926K | -49.12M | 0 | 0 |
| Other Non-Cash Items | 46.63M | 12.51M | 17.79M | -721K | 141.53M | -194.35M | 2.4M |
| Working Capital Changes | -42.11M | -15.6M | -24.75M | -38.24M | 36.13M | 8.08M | 13.85M |
| Change in Receivables | -30.23M | -36.23M | -5.42M | 10.26M | 5.53M | 5.54M | -10.61M |
| Change in Inventory | 285K | -3.44M | -2.58M | 975K | 4.6M | -10.62M | -8.98M |
| Change in Payables | 6.92M | 12.1M | -20.46M | -46.95M | 34.46M | 0 | 0 |
| Cash from Investing | -69.36M | -61.52M | -30.13M | -43.73M | -141.33M | -20.79M | -31.97M |
| Capital Expenditures | -19.34M | -19.02M | -5.49M | -5.71M | -14.32M | -9.4M | -24.09M |
| CapEx % of Revenue | 4.37% | 4.45% | 1.8% | 2.82% | 6.1% | 4.43% | 13.44% |
| Acquisitions | -32.86M | -32.86M | 0 | -8.11M | -127M | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | -11.39M | -7.88M |
| Cash from Financing | 72.9M | 48.02M | 44.16M | 186.24M | 197.31M | 493.73M | 129.06M |
| Debt Issued (Net) | -58.03M | -3.66M | -3.23M | 42.95M | -3.29M | -13.47M | 11.73M |
| Equity Issued (Net) | 82.9M | 51.69M | 46.5M | 143M | 197.66M | 442.68M | 117.32M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 48.02M | 0 | 891K | 285K | 2.95M | 64.51M | 0 |
| Net Change in Cash | -5.78M | 19.79M | -14.47M | -37.72M | -263.17M | 282.51M | 3.95M |
| Free Cash Flow | -28.65M | 14.26M | -33.99M | -185.86M | -333.48M | -211.22M | -125.1M |
| FCF Margin % | -6.47% | 3.34% | -11.13% | -91.75% | -142.09% | -99.54% | -69.76% |
| FCF Growth % | -119.09% | 141.96% | 81.71% | 44.27% | -57.88% | -68.84% | - |
| FCF per Share | -0.98 | 0.53 | -1.26 | -7.64 | -32.58 | -64.49 | -22.23 |
| FCF Conversion (FCF/Net Income) | 0.37x | -1.58x | 0.55x | 1.02x | 0.58x | 0.78x | 0.39x |
| Interest Paid | -1.6M | 0 | 6.68M | 3.04M | 1.93M | 2.75M | 1.75M |
| Taxes Paid | -206K | 0 | 1.17M | 1.47M | 1.24M | 349K | 0 |
Regulatory LDT oversight volatility
According to recent financial disclosures, GeneDx's operating cash flow to net income ratio reached 0.51 in 2026Q1, highlighting a persistent inability to translate accounting earnings into tangible liquidity as the company continues to grapple with significant non-cash adjustments and operational inefficiencies.
The divergence between net income and operating cash flow suggests that the company's reported losses are being exacerbated by working capital outflows and non-cash expenses. Investors should monitor whether this disconnect is a structural feature of the current reimbursement cycle or a sign of deteriorating collection efficiency.
As reported in quarterly filings, GeneDx's free cash flow margin plummeted to -38.0% in 2026Q1, marking a sharp reversal from the brief period of positive cash generation observed in mid-2025 and underscoring the fragility of the company's current cash flow trajectory.
The rapid shift from positive to negative free cash flow suggests that the company's operational scale remains insufficient to cover its high fixed-cost base. This volatility warrants further investigation into whether the recent cash burn is driven by temporary investment spikes or a fundamental inability to sustain positive margins.
Based on the provided cash flow statements, GeneDx experienced a significant working capital outflow of $23.2M in 2026Q1, which appears to be a primary driver of the quarter's cash burn and suggests potential friction in the company's accounts receivable collection process.
The erratic nature of working capital changes indicates that the company's cash position is highly sensitive to the timing of payer reimbursements. Such fluctuations may imply that the company lacks the leverage to enforce favorable payment terms with insurance providers, creating ongoing liquidity uncertainty.
Data from recent filings indicates that GeneDx's capital expenditure as a percentage of revenue reached 6.3% in 2026Q1, reflecting a sustained commitment to laboratory infrastructure that continues to weigh heavily on the company's limited cash reserves.
The consistent level of capital intensity suggests that the company must maintain high levels of investment in sequencing technology to remain competitive. This ongoing requirement for capital expenditure may limit the company's ability to reach self-sustaining cash flow in the near term.
Quick answers to the most common questions about buying WGS stock.
GeneDx Holdings Corp. (WGS) generated $33.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GeneDx Holdings Corp. (WGS) generated $14.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
GeneDx Holdings Corp. (WGS) spent $19.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.