One-glance verdict
Overvalued
$8.28 our estimate vs market $101.10
Wall Street consensus: $90.44 (991.7% higher than our fair-value estimate)
1120% above our estimate, beyond the bull case
Fundamentals snapshot
GeneDx Holdings Corp.
WGS · NMS · Healthcare · Diagnostics & Research
Current price
$101.10
52-week range
$32.21 - $170.87
Market cap
$3.02B
Balance sheet
Distressed
-4.08x Concerning
Net debt $34.85M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 6.3% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -40.8% last year — the company lost money on shareholders' equity.
What this company does
GeneDx Holdings Corp.
GeneDx is a health company that provides genetic testing to help doctors diagnose rare diseases, particularly in children. It makes money primarily by performing highly detailed DNA analysis (called whole genome and exome sequencing) to uncover the root cause of complex health problems. This is important because getting an accurate diagnosis helps families and physicians create the most effective treatment plans for difficult conditions.
How the company got here
GeneDx was started in 2000 by two scientists who wanted to help families with rare genetic diseases get diagnoses when few testing options existed. After being owned by larger laboratory companies for many years, it was acquired in 2022 by a company called Sema4. The following year, the combined company decided to focus entirely on GeneDx's expertise in rare disease testing. It was renamed GeneDx Holdings Corp., centering the entire business on using genetic information to solve difficult medical cases.
What it actually does
GeneDx provides advanced genetic testing services that doctors order to diagnose rare and inherited diseases, especially in children. This is different from at-home DNA kits; these are comprehensive clinical tests that analyze a person's entire genetic code, known as whole genome sequencing, or all of their protein-coding genes, called whole exome sequencing. The company's goal is to analyze a patient's complex genetic data and provide a clear answer to their doctor. This diagnosis can help guide medical care, end a long search for answers, and help families make more informed decisions.
Genomic Testing
This is the company's main business and makes up the vast majority of its revenue (the money it brings in before expenses are paid). Hospitals, medical centers, and specialist doctors pay GeneDx to process and analyze patient samples, like blood. The key products are highly detailed tests, called ExomeDx and GenomeDx, that look for genetic variations that could explain a patient's condition. This is especially used in neonatal intensive care units (NICUs) and for children with developmental delays or other complex health issues.
Data & Biopharma Partnerships
Over two decades, GeneDx has built a massive database of genetic information from the tests it has performed, which it calls GeneDx Infinity. The company makes money by selling access to this anonymous data to biopharmaceutical partners (companies that discover and make new medicines). These partners use the data to speed up their research and development of new drugs for rare diseases. This creates a second, smaller stream of revenue from the same testing work.
AI-Powered Interpretation Services
Through its subsidiary (a company it owns) called Fabric Genomics, GeneDx offers its artificial intelligence technology to other laboratories and hospitals. Instead of sending a sample to GeneDx for testing, a hospital can perform the genetic sequencing itself and then use Fabric's software to analyze and interpret the complex data. This creates a flexible way for GeneDx to make money from its expertise without having to physically process every test in its own lab. This is a small but growing part of the business, aimed at expanding the company's reach globally.
What management is betting on now
The company's main strategy is to make its comprehensive genetic tests a standard, early step in diagnosing children with suspected rare diseases, rather than a last resort. To do this, they are working to get wider insurance coverage and encourage more general pediatricians, not just specialists, to use their tests. Management is also focused on using its huge GeneDx Infinity dataset and AI to improve diagnoses and support partnerships with drug companies. A key priority is to grow the business profitably by increasing the number of tests performed and improving the collection rate (the percentage of bills that insurance companies and others actually pay).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-5.04M
FY2024 Q4
$-6.23M
FY2025 Q1
$4.05M
FY2025 Q2
$8.05M
FY2025 Q3
$9.60M
FY2025 Q4
$-7.44M
FY2026 Q1
$-38.86M
FY2026 Q2
$-39.09M
Revenue
$114.44M
Net income
$-17.74M
Diluted EPS
-0.60
Operating cash flow
$-28.98M
Free cash flow
$-39.09M
Fetching…
Sources
Revenue
$102.25M
Net income
$-63.32M
Diluted EPS
-2.16
Operating cash flow
$-32.41M
Free cash flow
$-38.86M
Fetching…
Sources
Revenue
$120.99M
Net income
$-17.67M
Diluted EPS
-0.59
Operating cash flow
$-3.09M
Free cash flow
$-7.44M
Fetching…
Sources
Revenue
$116.74M
Net income
$-7.63M
Diluted EPS
-0.27
Operating cash flow
$15.77M
Free cash flow
$9.60M
Fetching…
Sources
Revenue
$102.69M
Net income
$10.81M
Diluted EPS
0.36
Operating cash flow
$10.42M
Free cash flow
$8.05M
Fetching…
Sources
Revenue
$87.11M
Net income
$-6.53M
Diluted EPS
-0.23
Operating cash flow
$10.18M
Free cash flow
$4.05M
Fetching…
Sources
Revenue
$95.64M
Net income
$5.44M
Diluted EPS
0.25
Operating cash flow
$-3.18M
Free cash flow
$-6.23M
Fetching…
Sources
Revenue
$76.87M
Net income
$-8.31M
Diluted EPS
-0.31
Operating cash flow
$-4.39M
Free cash flow
$-5.04M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.28 vs current price $101.10
Wall Street consensus is the average analyst price target: $90.44 (991.7% higher than our fair-value estimate).
Our most-likely fair value is $8.28 a share — about 91.8% below today's price of $101.10, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $34.9M. Interest coverage -4.1x.
Net debt
$34.85M
Interest coverage
-4.08x
GeneDx Holdings Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
WGS
BASELINE
GeneDx Holdings Corp.
Total debt $167.40M Interest coverage -4.08x This is the baseline the peer rows are being compared against.
Total debt $40.11M Interest coverage 78,282.00x This peer still has a real interest-payment cushion, while WGS does not.
Total debt $448.37M Interest coverage -23.48x Neither company has much profit cushion over interest right now.
Total debt $38.00M Interest coverage -429.55x Neither company has much profit cushion over interest right now.
Total debt $9.60M Interest coverage -1,214.61x Neither company has much profit cushion over interest right now.
Total debt $210.50M Interest coverage -6.46x Neither company has much profit cushion over interest right now.
What you should know
The case for and against WGS
2 Rewards
1 Risk
Rewards
-
Revenue grew 6.3% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -40.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
86.50x
P/B
12.34x
P/S
6.63x
EV/EBITDA
-90.52x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
69.4%
Operating margin
-15.2%
Net margin
-23.4%
ROE
-40.8%
ROA
-7.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
3.30x
Quick ratio
2.90x
Total debt
$167.40M
Total cash
$132.55M
Growth
How the business has been compounding
Revenue TTM
$454.43M
Revenue 5Y CAGR
19.1%
EPS TTM
-3.63
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-48.71M
Free CF TTM
$14.26M
FCF margin
3.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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