Core Viewpoint - GeneDx Holdings experienced a significant stock decline of 42.9% following the announcement of its Q1 2025 earnings, despite reporting revenue that exceeded Wall Street expectations [1][3]. Financial Performance - GeneDx reported Q1 revenue of $87.1 million, representing a 42% year-over-year increase, surpassing the consensus estimate of $79.5 million [1]. - The company posted a Q1 net loss of $6.5 million under GAAP, but adjusted net earnings were $7.7 million, equating to $0.27 per share, which exceeded analysts' expectations of $0.09 per share [2]. Investor Concerns - The stock's decline is attributed to a smaller-than-expected revenue beat, as investors were used to larger margins in previous quarters [3]. - Additionally, the test volume for GeneDx declined quarter over quarter for the first time since its IPO in 2020, raising concerns among investors [3]. Future Outlook - GeneDx raised its full-year revenue guidance to a range of $360 million to $375 million, up from the previous range of $350 million to $360 million [4]. - The upper end of the revenue outlook suggests a forward price-to-sales ratio of approximately 5.4, which is higher than the life sciences tools and services industry's forward multiple of around 4.8 [5].