GeneDx (US:WGS)2025-10-28 10:52Revenue Growth - Total revenue for the three months ended September 30, 2025, was $116.743 million, a 52% increase from $76.874 million in the same period of 2024[15] - Diagnostic test revenue reached $113.523 million for the three months ended September 30, 2025, compared to $77.418 million in the prior year, reflecting a 46% year-over-year growth[15] - Pro forma revenues for the three months ended September 30, 2025, were $116.7 million, compared to $78.1 million for the same period in 2024, indicating a significant increase[52] - Total diagnostic test revenue for the nine months ended September 30, 2025, was $299.382 million, a significant increase from $207.961 million in the same period of 2024, representing a growth of approximately 44%[55] - Revenue from patients with third-party insurance reached $244.183 million for the nine months ended September 30, 2025, compared to $155.434 million in 2024, marking an increase of about 57%[55] - The GeneDx operating segment generated $303.596 million in revenue for the nine months ended September 30, 2025, compared to $207.007 million for the same period in 2024, a growth of 46.6%[128] Profitability and Loss - Gross profit for the nine months ended September 30, 2025, was $213.905 million, up from $128.192 million in the same period of 2024, indicating a significant increase in profitability[15] - The company reported a net loss of $7.635 million for the three months ended September 30, 2025, compared to a net loss of $8.312 million in the same period of 2024[15] - For the three months ended September 30, 2025, the net loss was $7,635 thousand, compared to a net loss of $3,355 thousand for the same period in 2024[18] - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $7.635 million, compared to a loss of $8.312 million in the same period of 2024[121] - The basic and diluted loss per share for the three months ended September 30, 2025, was $(0.27), an improvement from $(0.31) in the same period of 2024[121] Expenses - Research and development expenses for the three months ended September 30, 2025, were $19.829 million, up from $11.665 million in the same period of 2024, representing a 70% increase[15] - Selling and marketing expenses increased to $23.510 million for the three months ended September 30, 2025, compared to $17.025 million in the prior year, a rise of 38%[15] - Stock-based compensation expense for the nine months ended September 30, 2025, was $22,382 thousand, significantly higher than $6,293 thousand for the same period in 2024[21] - Stock-based compensation expense for the three months ended September 30, 2025, totaled $10.586 million, a significant increase from $3.636 million in the same period of 2024[102] Assets and Liabilities - Total assets increased to $493.902 million as of September 30, 2025, up from $419.380 million at the end of 2024, showing a growth of approximately 17.7%[14] - Cash and cash equivalents rose to $95.968 million as of September 30, 2025, compared to $85.212 million at the end of 2024, reflecting a 12.6% increase[14] - The company’s accumulated deficit stood at $1.355829 billion as of September 30, 2025, slightly increasing from $1.352474 billion at the end of 2024[14] - The total stockholders' equity increased to $292,258 thousand as of September 30, 2025, up from $277,133 thousand at June 30, 2025[18] - Total liabilities increased from $20.498 million as of December 31, 2024, to $32.858 million as of September 30, 2025, representing a rise of 60.5%[124] Acquisitions and Strategic Direction - The company acquired Fabric Genomics on May 5, 2025, enhancing its capabilities in genomics[24] - The Company completed the acquisition of Fabric Genomics for approximately $33.5 million, enhancing its AI capabilities in Next Generation Sequencing analysis[44] - The Company incurred $1.4 million in transaction costs related to the acquisition during the nine months ended September 30, 2025[49] - The company plans to pursue a new strategic direction, which includes exiting certain business segments to improve gross margins[12] Financial Instruments and Market Conditions - The fair value of financial assets as of September 30, 2025, totaled $126.572 million, with money market funds accounting for $67.713 million and U.S. treasury bonds for $26.860 million[61] - The Company entered into a Credit Agreement on October 27, 2023, providing a senior secured delayed draw term loan facility of up to $75.0 million, with an initial tranche of $50.0 million funded[73][84] - The Perceptive Term Loan Facility has a maturity date of October 27, 2028, with an interest-only period and principal due at maturity, net proceeds from the initial tranche were approximately $48.8 million[85][86] - A 100-basis point change in interest rates is not expected to have a material effect on the fair market value of the Company’s cash, cash equivalents, and restricted cash[199] Stock and Equity - The Company issued common stock in an ATM offering, net of issuance costs, totaling $11,802 thousand for the three months ended September 30, 2025[18] - The total fair value of restricted stock units vested during the nine months ended September 30, 2025, was $8.5 million[113] - The number of Class A common stock reserved for future issuance under the 2021 Equity Incentive Plan increased by 1,400,827 shares in January 2025[104] - The Company issued 22,674 shares of Class A common stock under the 2021 Employee Stock Purchase Plan during the nine months ended September 30, 2025[116] - The total number of shares of Class A common stock reserved for future issuance under the 2021 Employee Stock Purchase Plan as of September 30, 2025, was 827,322 shares[116]