GeneDx (WGS) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 revenue of $114.4 million, up 11% year-over-year, with exome and genome revenue at $100.3 million, up 17% year-over-year, driven by a 32% increase in test volumes and robust demand across core and expansion markets.

• Adjusted gross margin reached 70%, and adjusted net income was $0.4 million, marking a return to profitability on an adjusted basis, though GAAP net loss was $17.7 million due to higher operating expenses and a $31.3 million impairment charge.

• Maintained leadership in rare disease diagnosis, leveraging advanced analytics and the largest rare disease dataset, with continued expansion into pediatrics, NICU, prenatal, and adult specialists.

• Expanded Medicaid and commercial coverage for exome and genome sequencing in multiple states and with major benefit managers, including Carelon.

• Focused on optimizing unit economics, growing utilization, and delivering leading products at scale.

Financial highlights

• Q2 2026 revenue was $114.4 million (11% YoY growth); exome/genome revenue was $100.3 million (17% YoY growth); exome/genome test volume was 30,785 (32% YoY growth).

• Adjusted gross margin was 70% (up from 69% in Q1 2026, down from 71% in Q2 2025); GAAP gross margin was 68%.

• Adjusted net income was $0.4 million (up $8.6 million sequentially, down from $16.4 million YoY); GAAP net loss was $17.7 million.

• Cash, equivalents, and restricted cash were $133.5 million as of June 30, 2026; pro forma cash post-financing was ~$188 million.

• Blended average reimbursement rate was $3,258 per test, flat quarter-over-quarter.

Outlook and guidance

• Reaffirmed full-year 2026 revenue guidance of $475–$490 million, with at least 30% exome/genome volume growth and at least 20% revenue growth.

• Q3 2026 guidance: revenue $122–$124 million, exome/genome revenue $110–$112 million, volume 33,200, adjusted net income ~$2 million, and gross margin ~70%.

• Meaningful improvements in collection rates expected in Q4 2026, with most significant uplift in 2027.