Revenue growth has decelerated to 17.4% in 2026Q1, while the company continues to grapple with an operating margin of -56.2% due to high fixed-cost overhead.
| Sales/Revenue | 442.68M | 427.54M | 305.45M | 202.57M | 234.69M | 212.19M | 179.32M |
| Revenue Growth % | 34.09% | 39.97% | 50.79% | -13.69% | 10.6% | 18.33% | - |
| Cost of Goods Sold | 140.12M | 129.37M | 111.05M | 112.56M | 261.44M | 228.8M | 175.3M |
| COGS % of Revenue | - | 30.26% | 36.36% | 55.57% | 111.4% | 107.82% | 97.75% |
| Gross Profit | 302.56M | 298.17M | 194.4M | 90.01M | -26.75M | -16.6M | 4.03M |
| Gross Margin % | 68.35% | 69.74% | 63.64% | 44.43% | -11.4% | -7.82% | 2.25% |
| Gross Profit Growth % | - | 53.38% | 115.98% | 436.47% | -61.13% | -512.37% | - |
| Operating Expenses | 336.76M | 311.25M | 217.61M | 270.6M | 640.9M | 429.55M | 246.02M |
| OpEx % of Revenue | - | 72.8% | 71.24% | 133.59% | 273.08% | 202.43% | 137.19% |
| Selling, General & Admin | 263.37M | 239.22M | 168.48M | 194.71M | 338.24M | 318.73M | 163.93M |
| SG&A % of Revenue | - | 55.95% | 55.16% | 96.12% | 144.12% | 150.2% | 91.41% |
| Research & Development | 78.53M | 72.03M | 45.72M | 58.27M | 86.2M | 105.16M | 72.7M |
| R&D % of Revenue | - | 16.85% | 14.97% | 28.76% | 36.73% | 49.56% | 40.54% |
| Other Operating Expenses | -312K | 0 | 3.41M | 17.63M | 216.46M | 5.66M | 9.39M |
| Operating Income | -65.48M | -11.8M | -23.21M | -180.6M | -667.65M | -446.15M | -241.99M |
| Operating Margin % | -14.79% | -2.76% | -7.6% | -89.15% | -284.48% | -210.25% | -134.95% |
| Operating Income Growth % | - | 49.16% | 87.15% | 72.95% | -49.65% | -84.36% | - |
| EBITDA | -45.94M | 13.42M | -1.26M | -146.86M | -608.34M | -424.34M | -230.26M |
| EBITDA Margin % | -10.38% | 3.14% | -0.41% | -72.5% | -259.21% | -199.98% | -128.41% |
| EBITDA Growth % | -654.84% | 1165.24% | 99.14% | 75.86% | -43.36% | -84.29% | - |
| D&A (Non-Cash Add-back) | 19.55M | 25.22M | 21.95M | 33.73M | 59.31M | 21.81M | 11.73M |
| EBIT | -13.16M | -18.6M | -23.21M | -170.19M | -457.51M | -242.56M | -238.87M |
| Net Interest Income | -1.9M | -2.54M | -3.03M | 1.11M | -666K | -2.76M | -1.97M |
| Interest Income | 0 | 0 | 0 | 1.11M | 2.54M | 79K | 506K |
| Interest Expense | 1.18M | 2.54M | 3.03M | 0 | 3.21M | 2.83M | 2.47M |
| Other Income/Expense | -11.99M | -9.34M | -29.42M | 3.9M | 69.62M | 200.76M | 654K |
| Pretax Income | -77.47M | -21.14M | -52.63M | -176.69M | -598.03M | -245.39M | -241.34M |
| Pretax Margin % | -17.5% | -4.94% | -17.23% | -87.23% | -254.81% | -115.64% | -134.58% |
| Income Tax | -1.46M | -116K | -343K | -926K | -49.05M | 0 | 0 |
| Effective Tax Rate % | 1.88% | 0.55% | 0.65% | 0.52% | 8.2% | 0% | 0% |
| Net Income | -77.81M | -21.02M | -52.29M | -175.77M | -548.98M | -245.39M | -241.34M |
| Net Margin % | -17.58% | -4.92% | -17.12% | -86.77% | -233.91% | -115.64% | -134.58% |
| Net Income Growth % | -101.7% | 59.8% | 70.25% | 67.98% | -123.72% | -1.68% | - |
| Net Income (Continuing) | -77.81M | -21.02M | -52.29M | -175.77M | -548.98M | -245.39M | -241.34M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.65 | -0.73 | -1.94 | -7.23 | -53.63 | -74.93 | -146.94 |
| EPS Growth % | -84.72% | 62.37% | 73.17% | 86.52% | 28.43% | 49.01% | - |
| EPS (Basic) | - | -0.73 | -1.94 | -7.23 | -53.63 | -74.93 | -33.16 |
| Diluted Shares Outstanding | 29.34M | 26.89M | 26.89M | 24.31M | 10.24M | 3.28M | 5.63M |
| Basic Shares Outstanding | 29.34M | 26.89M | 26.89M | 24.31M | 10.24M | 3.28M | 5.63M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Regulatory LDT oversight volatility
As reported in the most recent quarterly filings, GeneDx experienced a revenue deceleration to 17.4% year-over-year growth in 2026Q1, a notable departure from the 51.9% peak observed in 2025Q3, suggesting that the initial momentum from the strategic pivot toward high-complexity exome sequencing may be encountering market saturation.
The sharp decline in growth rates suggests that the company's transition to a pure-play clinical genomics model is facing headwinds in maintaining its previous expansion velocity. Investors should monitor whether this deceleration reflects a temporary timing issue in payer reimbursements or a fundamental cooling of demand for high-complexity diagnostic testing.
Based on the provided income statement data, GeneDx has maintained a structural gross margin profile that fluctuated between 59.9% and 72.4% over the last ten quarters, indicating that while the company possesses high-value clinical services, its ability to consistently scale margins remains sensitive to operational cost fluctuations.
The variability in gross margins suggests that the company's laboratory infrastructure is not yet fully optimized for consistent throughput. The recent compression to 66.7% in 2026Q1 warrants further investigation into whether rising reagent costs or shifts in product mix are beginning to erode the profitability of their core diagnostic offerings.
According to the historical income statement, GeneDx's operating expenses, particularly SG&A, have frequently outpaced gross profit growth, as evidenced by the 2026Q1 operating margin of -56.2%, which highlights a persistent inability to achieve the necessary scale to cover its high fixed-cost laboratory and administrative overhead.
The lack of consistent operating leverage suggests that the company's current cost structure is disproportionately heavy relative to its revenue base. Unless management can demonstrate a sustained reduction in SG&A as a percentage of revenue, the path to GAAP profitability appears increasingly dependent on aggressive, potentially unsustainable, volume growth.
Financial disclosures reveal that stock-based compensation has trended upward to $9.0M in 2026Q1, which significantly exacerbates the reported net loss of $63.3M and suggests that the company's path to profitability is being obscured by non-cash expenses that dilute shareholder value without improving the underlying operational cash flow.
The reliance on equity-based incentives during a period of negative net income warrants caution, as it may mask the true cash burn rate of the business. Investors should interpret these figures as a sign that management is prioritizing talent retention over immediate bottom-line discipline, which may prolong the timeline to achieving sustainable positive earnings.
While the company emphasizes its pivot to high-complexity testing, the recent return to significant net losses in 2026Q1 suggests that the turnaround narrative may be fragile, as the business remains highly susceptible to payer reimbursement delays and the potential for increased regulatory compliance costs under new FDA frameworks.
Short-term volatility in net income, which swung from a profit in 2025Q2 to a substantial loss by 2026Q1, indicates that the business model is not yet resilient to operational shocks. The market may be overestimating the company's ability to maintain its current pricing power if larger, more diversified laboratory competitors decide to aggressively enter the exome sequencing space.
Quick answers to the most common questions about buying WGS stock.
For fiscal year 2025, GeneDx Holdings Corp. (WGS) reported total revenue of $427.5M. This represents a 138.4% increase compared to $179.3M in 2020.
GeneDx Holdings Corp. (WGS) reported a net loss of $21.0M for the fiscal year ending 2025.
GeneDx Holdings Corp. (WGS) reported an operating income of $-11.8M, resulting in an operating profit margin of -2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
GeneDx Holdings Corp. (WGS) generated $298.2M in gross profit for the year, representing a gross profit margin of 69.7%. This demonstrates the company's core pricing power and production efficiency.