GeneDx Expects About $12 Million in Adjusted Profit in 2026, Cuts Genome Growth Targets
Key Facts
GeneDx said on Nov. 9 that third-quarter revenue was $123.1 million, up 5% year over year, while revenue from exome and genome tests rose 12% to $110.4 million. The company cut its full-year growth targets for the volume and revenue of those tests, while keeping its annual revenue range unchanged. It raised its 2026 adjusted net income forecast to about $12 million, compared with a previous forecast for positive adjusted income. It also raised its full-year adjusted gross margin forecast to about 71% from about 70%. After the results and growth-target cuts were announced, shares fell 10.2% in after-hours trading on Monday, according to Investing.com coverage attributed to Reuters.
Exome and genome tests produced 32,134 results in the third quarter, up 25% from the same period a year earlier, while sample accession growth rose to 28%. Total revenue was $123.1 million, up 5% year over year, highlighting the difference between growth in the core business and total revenue. Revenue from exome and genome tests rose to $110.4 million, up 12% year over year. The company forecast fourth-quarter revenue of $135 million, including $121 million from exome and genome tests. It also set fourth-quarter volume for those tests at 34,500, with an adjusted gross margin of at least 71%.
Adjusted gross margin was 72% in the third quarter, compared with 70% in the second quarter and 74% in the third quarter of 2025, while gross margin under accounting standards was 70%. For the full year, GeneDx raised its adjusted gross margin estimate to about 71% from about 70%. Adjusted net income was $8.6 million, up $8.2 million from the second quarter, but below the $16.1 million recorded in the third quarter of 2025. Net loss under accounting standards was $12.3 million. The company forecast fourth-quarter adjusted net income of about $12 million, a non-GAAP financial measure.
The company kept its 2026 revenue forecast at a range of $475 million to $490 million, but lowered the minimum target for growth in exome and genome test volume to 28% from 30%. It also cut the minimum growth target for revenue from those tests to 17% from 20%. In its fourth-quarter guidance, it forecast revenue of $135 million, compared with quarterly revenue of $123.1 million in the third quarter. It estimated fourth-quarter revenue from exome and genome tests at $121 million, with volume of 34,500 tests. The guidance thus combines higher full-year adjusted profitability targets with lower growth goals for genomic testing.
Chief Executive Katherine Stueland said the third-quarter results reflect “profitable execution in a growing market,” and that the company is converting rising demand for exome and genome tests into sustainable revenue growth. The company identified its priorities as improving test economics, expanding use and delivering its products at scale. On coverage, GeneDx said the number of state Medicaid programs covering whole-genome sequencing rose to 25 after Arkansas and Utah were added. It also highlighted long-read whole-genome sequencing, an online exome testing option for children, and a company-funded testing program launched with Mirum Pharmaceuticals. It said it presented 27 scientific abstracts at the 2026 annual meeting of the American Society of Human Genetics.
GeneDx had about $171.1 million in cash, cash equivalents, marketable securities and restricted cash on Sept. 30, 2026. As part of its fourth-quarter outlook, the company scheduled a call to discuss results for Nov. 9 at 4:30 p.m. Eastern time. Quarterly guidance includes total revenue of $135 million and revenue of $121 million from exome and genome tests. It also includes 34,500 tests in that category and an adjusted gross margin of at least 71%. The company estimated adjusted net income for the quarter at about $12 million.