GeneDx (WGS) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2025 was $87.115 million, a 39.7% increase from$ 62.422 million in Q1 2024[15] - Diagnostic test revenue reached $85.759 million, up 40.4% from$ 61.104 million year-over-year[15] - Gross profit for Q1 2025 was $58.476 million, compared to$ 37.411 million in Q1 2024, reflecting a gross margin improvement[15] - The net loss for Q1 2025 was $6.529 million, significantly reduced from a net loss of$ 20.239 million in Q1 2024[15] - Revenue from patients with third-party insurance was $68.059 million for the three months ended March 31, 2025, up from$ 43.839 million in the same period of 2024, reflecting a growth of about 55.2%[39] - Revenue for the GeneDx segment was $87.1 million for the three months ended March 31, 2025, an increase from$ 62.4 million in the same period of 2024, reflecting a growth of approximately 39.6%[109] - For the three months ended March 31, 2025, the net loss attributable to common stockholders was $6.5 million, compared to a net loss of$ 20.2 million for the same period in 2024, resulting in a basic and diluted loss per share of $0.23, down from$ 0.78[104] Assets and Liabilities - Cash and cash equivalents increased to $99.704 million as of March 31, 2025, up from$ 85.212 million at the end of 2024[14] - Total assets grew to $446.430 million, an increase from$ 419.380 million at the end of 2024[14] - The company recorded a total financial liability of $4.619 million as of March 31, 2025, compared to$ 3.519 million as of December 31, 2024, indicating an increase of approximately 31.4%[47] - The Company reported total liabilities of $41.9 million as of March 31, 2025, compared to$ 30.0 million as of December 31, 2024, reflecting an increase of approximately 39.6%[106] Operational Performance - The company reported a loss from operations of $4.551 million for Q1 2025, an improvement from a loss of$ 13.660 million in Q1 2024[15] - Research and development expenses were $12.577 million, compared to$ 11.567 million in the same period last year[15] - The company has established liabilities of $14.0 million and$ 12.6 million for potential recoupments of payments as of March 31, 2025, and December 31, 2024, respectively[46] Strategic Initiatives - The company plans to pursue a new strategic direction and expects to scale to profitability[12] - GeneDx is in the process of acquiring Fabric Genomics, which is expected to enhance its service offerings[12] - The Company entered into a merger agreement to acquire Fabric Genomics for approximately $33.0 million in cash, with potential milestone payments totaling up to$ 18.0 million based on revenue performance[112] Stock and Compensation - Stock-based compensation expense for the three months ended March 31, 2025, totaled $3,983 million, compared to a reversal of$ 451 million in the same period of 2024[86] - The Company granted 460,439 restricted stock units during the three months ended March 31, 2025, with a weighted-average grant-date fair value of $94.22[95] - Unrecognized stock-based compensation expense related to the Company's restricted stock units was$ 48.0 million as of March 31, 2025[97] Debt and Financing - The Company entered into the Perceptive Term Loan Facility on October 27, 2023, with an initial tranche of $50 million funded and an additional tranche of$ 25 million available until December 31, 2024[68] - The Perceptive Term Loan Facility has a maturity date of October 27, 2028, with an interest rate of Term SOFR plus an applicable margin of 7.5%[70] - The Company made principal payments totaling $0.3 million during the three months ended March 31, 2025, with an outstanding loan balance of$ 5.5 million from the DECD Loan Agreement[77] Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2025, was (1.2)%, compared to 0.4% for the same period in 2024, primarily due to changes in valuation allowances related to deferred tax assets[102] - The company plans to adopt ASU 2023-09 regarding income tax disclosures in its Annual Report for the year ended December 31, 2025, without expecting a material impact on its consolidated financial statements[36] - The company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements, which requires additional disclosures about specific expense categories[38]