GeneDx (US:WGS)2026-02-23 14:32Financial Data and Key Metrics Changes - In Q4 2025, total revenues reached $121 million, a 27% increase year-over-year, with full-year revenues at $428 million, driven by 54% growth in exome and genome revenues [5][17] - Exome and genome revenues specifically were $104 million in Q4, marking a 32% year-over-year increase, and an organic growth rate of 42% when excluding a one-time payor recovery from the previous year [17][19] - Adjusted net income for Q4 was $4.4 million, with a full-year adjusted net income of $4.8 million, indicating strong leverage in the business model [19] Business Line Data and Key Metrics Changes - The company reported 27,761 exome and genome test results in Q4, showing a consistent acceleration in growth throughout the year, from 24% in Q1 to 34% by Q4 [17][18] - The average reimbursement rate for exome and genome tests was approximately $3,750 in Q4, reflecting a long-term upward trend from $2,500 in 2023 to $3,750 in 2025 [18][19] Market Data and Key Metrics Changes - The company is expanding into new markets, including general pediatrics, NICU, and prenatal diagnostics, with significant potential for growth as clinician adoption remains low in these areas [11][15] - The NICU market is expected to grow significantly, with a target of over 200,000 tests annually, although current utilization remains in the single digits [22][80] Company Strategy and Development Direction - GeneDx aims to solidify its leadership in rare disease diagnostics by leveraging its extensive dataset, GeneDx Infinity, which includes over 2.5 million rare genetic tests [8][9] - The company plans to triple its sales force in 2026 to capture growth opportunities across various markets, including pediatricians and NICU [10][12] - The introduction of a one-minute ordering experience is expected to enhance clinician engagement and drive volume growth [13][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, reaffirming guidance for total revenues in the range of $540 million to $555 million for 2026, with exome and genome volume growth of 33%-35% [24][25] - The company is focused on deliberate investments to accelerate growth, including enhancing customer experience and ramping up R&D efforts [23][24] Other Important Information - The company has received FDA Breakthrough Device Designation, positioning it as a leader in comprehensive genomic solutions [6] - Management highlighted the importance of accuracy and speed in diagnostics, with turnaround times for tests significantly lower than competitors [60][61] Q&A Session Summary Question: Guidance assumptions regarding foundational tests - Management noted that the guidance reflects confidence in reversing recent trends, driven by increased clinician activation and conversion from single gene tests to exome and genome [32][33] Question: Quarterly cadence for volumes and margins - Management indicated that Q1 is typically the lowest point for volume and reimbursement rates, with expectations for a gradual ramp-up throughout the year [35][36] Question: Pricing outlook and reimbursement rates - Management stated that there is currently no pricing baked in for Medi-Cal and emphasized a conservative approach to new outpatient markets regarding reimbursement rates [75][76] Question: Growth drivers and contributions from new markets - NICU is expected to be the primary growth driver, with prenatal diagnostics also showing potential for ramp-up later in the year [80][81]