We came across a bullish thesis on GeneDx Holdings Corp. on Danny’s Substack by Danny Green. In this article, we will summarize the bulls’ thesis on WGS. GeneDx Holdings Corp.'s share was trading at $92.04 as of February 18th. WGS’s trailing and forward P/E were 819.55 and 77.52 respectively according to Yahoo Finance. create jobs 51/Shutterstock.com GeneDx is emerging as a high-growth genomics diagnostics company with a differentiated clinical dataset and proprietary interpretation IP that supports str ...

Core Insights - GeneDx reported strong financial results for Q4 and full year 2025, with a reaffirmed revenue guidance for 2026 of $540 to $555 million, indicating a growth of 33-35% in exome and genome revenue [1][2] Financial Performance - Q4 2025 revenues reached $121.0 million, a 27% increase year-over-year, with exome and genome test revenue growing to $104.0 million, up 32% year-over-year [1][3] - Full year 2025 revenues totaled $427.5 million, reflecting a 41% increase year-over-year, while exome and genome test revenue grew to $360.3 million, a 54% increase year-over-year [1][3] - Adjusted gross margin for Q4 2025 was 71%, up from 70% in Q4 2024, and for the full year 2025, it also expanded to 71% from 65% in 2024 [1][3] Operational Highlights - Exome and genome tests accounted for 47% of all test results in Q4 2025, up from 38% in Q4 2024, with a total test result volume of 27,761, marking a 34.3% year-over-year increase [1][3] - The company is expanding into general pediatrics, which is seen as a significant growth opportunity, following updated guidance from the American Academy of Pediatrics recommending genomic sequencing for children with developmental delays [1][2] Strategic Initiatives - GeneDx is advancing its leadership in genomic newborn screening, having sequenced over 22,000 newborns through the GUARDIAN study and partnering with Florida's Sunshine Genetics Network for whole genome sequencing [1][2] - The company is participating in the BEACONS initiative, which aims to enroll up to 30,000 newborns in genomic screening across multiple states, supported by a $14.4 million NIH award [2]

Core Insights - GeneDx's GUARDIAN study has been recognized in JAMA's annual Research of the Year Roundup, highlighting its significant contributions to genomic newborn screening [1][2][3] Group 1: Study Recognition and Impact - The GUARDIAN study demonstrates the effectiveness of genomic newborn screening in identifying serious childhood conditions more comprehensively than traditional methods [2][3] - The study's findings indicate that early diagnosis through genomic screening can lead to timely interventions, improving clinical outcomes for conditions such as long QT syndrome, Wilson disease, and severe combined immunodeficiency (SCID) [2][4] Group 2: Study Scale and Goals - GUARDIAN is one of the largest genomic newborn screening studies globally, with over 20,000 newborns screened and a long-term goal of enrolling 100,000 newborns [4][10] - The study aims to evaluate the feasibility, clinical impact, and equity of implementing genomic screening alongside existing public health newborn screening programs [4][10] Group 3: Clinical and Economic Benefits - The study reports a 72% parental consent rate, indicating strong family interest in genomic screening, and a 3.7% screen-positive rate, with 92% of screen-positive newborns receiving a confirmed diagnosis for conditions not included in traditional screening [6][7] - Earlier genetic diagnosis can significantly reduce the time and costs associated with reaching an accurate diagnosis, which often takes five years or more [6][7] Group 4: Technological Advancements - Next-generation sequencing technologies, including whole genome sequencing, are expected to enhance the diagnostic yield for pediatric genetic diseases and improve outcomes in genomic newborn screening [8]

Core Insights - GeneDx Holdings Corp. reported strong financial results for Q3 2025, highlighting significant growth in revenue and test volumes, alongside improved gross margins [2][4][7]. Financial Performance - Revenues reached $116.7 million, marking a 52% increase year-over-year [8]. - Exome and genome test revenue grew to $98.9 million, reflecting a 65% year-over-year increase [8]. - Adjusted gross margin expanded to 74%, up from 64% in Q3 2024, while GAAP gross margin was reported at 72% [4][8]. - Adjusted net income for Q3 2025 was $14.7 million, compared to $2.0 million in the same quarter of 2024 [5][8]. Operational Highlights - The volume of exome and genome tests increased to 25,702, a 33% year-over-year growth [8]. - Exome and genome tests accounted for 43% of all tests performed, up from 33% in Q3 2024 [8]. - Adjusted total operating expenses were $71.2 million, representing 61% of revenue, a slight decrease from 62% in Q3 2024 [8]. Strategic Developments - GeneDx received FDA Breakthrough Device Designation for its ExomeDx™ and GenomeDx™ tests, emphasizing its innovative leadership in genomic diagnostics [3][7]. - The company is leading in genomic newborn screening, being the sole commercial testing provider for new programs, including the NIH BEACONS initiative [7][13]. - GeneDx introduced GeneDx Infinity™, the largest rare disease dataset, enhancing its capabilities in rare disease insights [13][15]. Guidance and Future Outlook - GeneDx raised its full-year 2025 revenue guidance to between $425 million and $428 million, with expected growth in exome and genome revenue between 53% to 55% [7][9]. - The company anticipates continued volume growth of at least 30% for exome and genome tests [9].

Core Insights - GeneDx Holdings Corp. reported strong financial results for Q3 2025, highlighting significant growth in genomic testing and improved profitability metrics [2][7][8] - The company received FDA Breakthrough Device Designation for its ExomeDx™ and GenomeDx™ tests, emphasizing its leadership in genomic medicine [3][7][24] Financial Performance - Revenues reached $116.7 million, representing a 52% year-over-year increase [8] - Exome and genome test revenue grew to $98.9 million, a 65% increase year-over-year [8] - Adjusted gross margin expanded to 74%, up from 64% in Q3 2024, while GAAP gross margin was reported at 72% [4][8] - Adjusted net income for Q3 2025 was $14.7 million, compared to $2.0 million in Q3 2024, while GAAP net loss was $7.6 million [5][8] Operational Highlights - The volume of exome and genome tests increased by 33% year-over-year, totaling 25,702 tests [8] - Adjusted total operating expenses were $71.2 million, representing 61% of revenue, a slight decrease from 62% in Q3 2024 [8] - The company ended the quarter with a cash position of $156.1 million, including $8.8 million in free cash flow generated [8] Strategic Initiatives - GeneDx raised its full-year 2025 revenue guidance to between $425 million and $428 million, with expected growth in exome and genome revenue between 53% to 55% [7][9] - The company is leading genomic newborn screening initiatives, including participation in the NIH BEACONS initiative and a partnership with Florida's Sunshine Genetics Network [13] - GeneDx introduced GeneDx Infinity™, the largest rare disease dataset, enhancing its genomic testing capabilities [13][15] Market Position - GeneDx is positioned as a leader in genomic newborn screening, being the sole commercial testing provider for new programs [7][13] - The company is actively expanding its market presence and investing in sustainable growth with attractive margins [6][7]