10-Q · May 4, 2026
GeneDx reported Q1 2026 financial results with total revenue of $102.3 million, representing a 17% increase year-over-year. However, the company faced a significant net loss of $63.3 million, leading to an EPS of…
Earnings analysis · 10-Q
WGS earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
GeneDx delivered Q2 revenue of $114.440 million, up 11% year over year and above the supplied $110.749 million consensus, led by 32% exome/genome volume growth to 30,785 tests. Gross margin was relatively resilient at…
Read full summary
GeneDx delivered Q2 revenue of $114.440 million, up 11% year over year and above the supplied $110.749 million consensus, led by 32% exome/genome volume growth to 30,785 tests. Gross margin was relatively resilient at 68.4%, but SG&A growth of 62% drove a $17.455 million operating loss and GAAP EPS loss of $0.60 versus $0.36 of earnings a year ago. Cash generation deteriorated materially, with $61.389 million of six-month operating cash outflow, although the company reported $132.5 million of liquidity and subsequently expanded debt capacity to $150.0 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.6
What stood out
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Revenue grew 11% and exceeded $114 million
Q2 revenue increased $11.748 million, or 11%, year over year to $114.440 million; it also increased from $102 million in Q1 2026. Diagnostic test revenue rose $11.786 million, or 12%, to $111.886 million.
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Exome/genome adoption accelerated
Whole-exome/genome test volume grew 32% year over year to 30,785 resulted tests, representing 49% of all test results versus 40% a year earlier. Whole-exome/genome revenue increased 17%.
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Gross profit expanded despite modest YoY margin dip
Gross profit rose $7.336 million, or 10%, to $78.238 million. GAAP gross margin was 68.4%, down 60 basis points from 69.0% a year ago but up from 66.7% in Q1 2026; adjusted gross margin was 70.4%.
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Sequential EPS improved, but GAAP loss persists
GAAP diluted EPS was a loss of $0.60, versus earnings of $0.36 in Q2 2025, but improved from a $2.16 loss in Q1 2026. Adjusted net income was $0.411 million, compared with $16.388 million a year earlier.
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Liquidity bolstered by expanded financing
Liquidity included $132.5 million of cash, cash equivalents and available-for-sale securities at June 30, 2026. The company subsequently expanded its Blackstone term-loan facility from $100.0 million to $150.0 million and expects approximately $5.0 million from a private placement.
What to watch
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Commercial investment drove operating loss
Operating performance swung to a $17.455 million operating loss from $8.960 million of operating income a year earlier, as SG&A rose $29.174 million, or 62%, to $76.037 million. The prior-year period also benefited from an $8.4 million one-time sales-and-use tax refund.
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Cash burn and capex increased materially
Operating cash flow reversed to a $61.389 million outflow for the first six months of 2026 from $20.602 million of inflow a year earlier. Property/equipment and internal-use software spending was $16.6 million, equal to about 7.7% of six-month revenue of $216.694 million.
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Reimbursement pressure offsets volume growth
Diagnostic growth was partly offset by a 12% decline in average reimbursement rates in Q2, while other revenue declined to $2.554 million from $2.592 million. Reimbursement and payor collection outcomes remain material to revenue conversion.
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New securities litigation and share-price risk
A risk-factor update cites two putative securities class actions filed on June 4, 2026 and July 28, 2026, covering purchasers between April 16, 2025 and May 4, 2026. Such litigation may require substantial payments and divert management resources.
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Revenue-related IT control weakness remains
Disclosure controls were ineffective at June 30, 2026 because a previously identified IT general-controls material weakness had not been fully remediated. The issue relates to segregation of duties for a single IT system supporting aspects of revenue processes.
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Higher variable-rate debt and liquidity covenant
The amended debt facility totals $150.0 million, with the incremental $50.0 million tranche priced at Term SOFR plus 5.50% and subject to a $75.0 million minimum-liquidity covenant. This adds variable-rate financing and covenant exposure while six-month net loss was $81.056 million.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance; management states that cash, cash equivalents and available-for-sale securities of $132.5 million are sufficient for at least twelve months from the filing date.
Earlier filings 4
10-K · February 23, 2026
GeneDx (WGS) presents a growth-focused genomic diagnostics business anchored by its GeneDx Infinity™ dataset and the May 5, 2025 acquisition of Fabric Genomics. 2025 showed material revenue and margin expansion…
10-Q · October 28, 2025
Q3 2025 results show strong top-line growth and margin expansion following the Fabric Genomics acquisition: revenue rose to $116,743,000 (Q3 2024: $76,874,000) and gross margin expanded to 72.4% (Q3 2024: 62.2%).…
10-Q · July 29, 2025
GeneDx reported a strong quarter: revenue of $102,692,000 (up from $70,514,000 a year ago) and diluted EPS of $0.36 (vs. $(1.10) a year ago). Gross margin expanded to 69.0% and operating income turned positive at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.