NEW YORK – GeneDx reported on Wednesday morning that its first quarter revenues shot up 42 percent year over year, driven by continuing strong demand for whole-genome and whole-exome testing.
Despite the strong revenue growth, the company's stock plummeted following the release of the results.
For the three months ended March 31, the Gaithersburg, Maryland-based diagnostics company, formerly known as Sema4, booked $87.1 million in revenues, compared to $62.4 million a year ago and exceeding the Wall Street consensus estimate of $79.8 million.
"Our team's work surpassed our expectations and delivered a strong first quarter," GeneDx CEO Katherine Stueland told investors in a conference call recapping the company's Q1 earnings results.
Of total revenues, $85.8 million came from diagnostic tests and $1.4 million were other revenues, compared to $61.1 million and $1.3 million in the year-ago quarter. Also, 83 percent of revenues, or $71.4 million, came from whole-exome and whole-genome testing, an increase of 62 percent from $44.0 million in the prior-year quarter. Hereditary cancer testing revenues were $2.2 million, a 60 percent drop from $5.5 million in Q1 2024. Other panel testing generated $12.1 million in revenues during Q1, up 13 percent from $10.7 million in the same period a year ago. Revenues from the legacy Sema4 data information business were $1.4 million, slightly up from $1.3 million in Q1 2024.
During the quarter, GeneDx performed 51,515 tests in total, including 20,562 whole-exome and whole-genome tests, a 24 percent increase year over year compared to 16,592 in Q1 2024. Hereditary cancer testing volume was 2,725, a 60 percent decline from 6,868 in the prior year. The company delivered 28,228 other panel tests, down 11 percent from 31,763 a year ago.
According to CFO Kevin Feeley, the average reimbursement rate for exome and genome testing was approximately $3,400 after all denials for GeneDx, compared to approximately $2,600 in the same quarter last year.
GeneDx's R&D spending in the quarter increased 9 percent year over year to $12.6 million from $11.6 million in 2024, while SG&A costs climbed 28 percent to $50.5 million from $39.5 million.
Net loss for the quarter was $6.5 million, or $.23 per share, compared to a net loss of $20.2 million, or $.78 per share, in Q1 2024. Wall Street analysts, on average, had expected a net profit of $.09 per share. Adjusted net income was $7.7 million, compared to an adjusted net loss of $8.0 million a year earlier. Adjusted EPS for the quarter $.27.
The company ended the quarter with $99.7 million in cash and cash equivalents and $59.5 million in marketable securities.
In April, GeneDx's UltraRapid whole-genome sequencing test, which promises a turnaround time of two days, became "orderable" for patients in neonatal intensive care units, Feeley said. While the company also lays eyes on the newborn screen marker, the company does not anticipate that it will become a contributor to the revenue streams until 2027 timeframe, Stueland said.
"I would keep expectations super modest on newborn screening, until we really start to see some traction," Stueland told investors.
In light of its recent deal to acquire Fabric Genomics, GeneDx updated its full-year 2025 revenue guidance. The company now expects revenues between $360 million and $375 million for the year, compared to the previous guidance of $350 million to $360 million. The new estimate includes $3 million to $5 million in revenues from Fabric Genomics, assuming the acquisition closes in the second quarter. Meanwhile, Feeley said the short-term cash burn from Fabric Genomics to the company is expected to be "a couple million dollars" each quarter.
GeneDx continues to expect whole–exome and whole-genome testing volume and revenues growth of at least 30 percent, unchanged from the previous guidance. The company also reaffirms its expectation to maintain profitability each quarter and for the rest of the year, Feeley said.
In Wednesday afternoon trading on the Nasdaq, GeneDx shares were down 38 percent at $72.16.