GeneDx cuts genome testing growth target to 28% despite 5% quarterly revenue increase
Key Facts
GeneDx reported revenue of $123.1 million in the third quarter of 2026, up 5% year over year, and lowered its full-year forecasts for exome and genome test volume growth and related revenue, according to a filing with the U.S. Securities and Exchange Commission. The company set test volume growth at at least 28%, compared with a previous forecast of at least 30%, and related revenue growth at at least 17%, down from at least 20%. It kept its fiscal-year revenue forecast between $475 million and $490 million. Reuters reported that the company’s stock fell 10.2% in after-hours trading on Monday, November 9, 2026, following the results and lower growth targets. The reaction put the guidance cuts at the forefront of the market response, despite quarterly revenue growth and the company’s continued forecast of annual revenue within the same range.
Exome and genome testing revenue was $110.4 million in the third quarter, up 12% year over year, according to the company’s statement. The volume of results from those tests reached 32,134, up 25% from the same quarter a year earlier, while sample accessions increased 28%. The figures show results volume growing faster than testing revenue during the period, as the company lowered its full-year volume and revenue targets. Commenting on the results, Chief Executive Catherine Stueland said the quarter reflected “profitable execution in a growing market” and that the company was turning increased demand for exome and genome testing into sustainable revenue growth. She added that rising demand for these tests was central to the company’s performance, according to the statement.
Adjusted gross margin was 72% in the third quarter, up from 70% in the second quarter of 2026, but below the 74% recorded in the third quarter of 2025. GeneDx said adjusted net income was $8.6 million, compared with $16.1 million in the same period a year earlier. It added that adjusted net income increased by $8.2 million from the second quarter of 2026. By contrast, the company recorded a net loss of $12.3 million under generally accepted accounting principles in the third quarter. Adjusted operating expenses were $79.4 million, equal to 65% of revenue, according to the statement.
For the year, GeneDx kept its revenue range at $475 million to $490 million but lowered the minimum growth target for exome and genome test volume from 30% to 28%, and for revenue from those tests from 20% to 17%. In May, the company had cut its 2026 revenue forecast from a range of $540 million to $555 million to $475 million to $490 million, then kept the revised range in its November update. The new update therefore leaves the annual revenue range unchanged while reducing growth targets for the genetic testing business. This follows year-over-year growth in revenue and volume for the business in the third quarter, according to the company’s reported figures. The statement did not say the lower targets were due to slower volume growth.
GeneDx reported a third-quarter loss per share of $0.41 under generally accepted accounting principles, according to its statement, while Reuters coverage via Investing.com reported a loss per share of $0.41 against analysts’ estimate of $0.07. Revenue, meanwhile, was $123.1 million, exceeding the consensus estimate of $122.98 million cited in the same coverage. Revenue therefore came in slightly above the estimate, while earnings per share were below it. Reuters said the stock’s after-hours decline followed the results and the lower growth targets. The comparison provides context for quarterly performance and the trading reaction, alongside the revised annual forecasts.
Cash, cash equivalents, marketable securities and restricted cash totaled $171.1 million as of September 30, 2026, according to GeneDx’s statement. For the fourth quarter, the company forecast revenue of $135 million and exome and genome testing volume of 34,500 tests. It also estimated adjusted net income at about $12 million for the coming period. The earnings release scheduled the company’s results call for the announcement date, November 9, at 4:30 p.m. Eastern time. Fourth-quarter forecasts cover revenue, volume and adjusted net income, while the full-year revenue range remains $475 million to $490 million.