Genetic testing firm GeneDx beats Q2 adjusted EPS estimates, raises full-year guidance

Overview

• GeneDx Q2 2025 revenue rises 49% yr/yr to $102.7 mln

• Adjusted EPS beats analyst expectations, per LSEG data

• Co raises full-year revenue guidance to $400-$415 mln

Outlook

• GeneDx raises 2025 revenue guidance to $400-$415 mln

• Company expects 48%-52% growth in exome and genome revenue

• GeneDx anticipates 68%-71% adjusted gross margin for 2025

• Company sees positive adjusted net income each quarter in 2025

Result Drivers

• EXOME AND GENOME TESTING - Revenue from exome and genome tests grew 69% yr/yr, driven by increased adoption in pediatrics

• GROSS MARGIN EXPANSION - Adjusted gross margin improved to 71%, reflecting operational efficiencies

• AAP RECOMMENDATION - American Academy of Pediatrics' recommendation for exome and genome testing as first-tier tests boosted demand

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for GeneDx Holdings Corp is $110.00, about 22.8% above its July 28 closing price of $84.91

• The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 75 three months ago

Press Release: ID:nBw427l5Ja