GeneDx (WGS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $102.3 million, up 17% year-over-year, driven by a 34% increase in exome and genome test volumes, with exome and genome revenue at $90.6 million, up 27% year-over-year.

• Adjusted gross margin was 69%, and adjusted net loss was $8.2 million; GAAP net loss widened to $63.3 million due to $31.3 million in non-cash impairment charges and higher operating expenses.

• Revenue fell short of expectations due to lower blended average reimbursement rate (ARR) and underperformance in non-core segments.

• Cash, cash equivalents, marketable securities, and restricted cash totaled $171.7 million as of March 31, 2026.

• Full-year 2026 revenue guidance was lowered to $475–$490 million, reflecting a 12% reduction at the midpoint.

Financial highlights

• Exome and genome test volumes grew to 27,488 in Q1 2026, up from 20,562 in Q1 2025.

• Blended ARR was approximately $3,300, about $200 below expectations, mainly due to product mix shifts and lower parental sample mix.

• Adjusted gross profit was $69.9 million, with an adjusted gross margin of 68.9%.

• Adjusted total operating expenses were $78.1 million (76% of revenue); GAAP operating expenses were $94.4 million.

• Basic and diluted loss per share was $(2.16), compared to $(0.23) in Q1 2025.

Outlook and guidance

• Full-year 2026 revenue guidance was revised down to $475–$490 million from $540–$555 million, with exome and genome volume growth expected at least 30%.

• Q2 2026 revenue guidance is $110–$112 million, with exome and genome revenue of ~$100 million and adjusted net loss of ~$5 million.

• Adjusted gross margin is projected to be around 70% for the year, with positive adjusted net income targeted.

• Guidance is now based on more conservative, line-of-sight assumptions, especially for new markets.

• Profitability expected on an adjusted basis for the full year, with a return to profitability in Q3.