GeneDx Holdings Corp.

GeneDx reported second-quarter revenue of $114.4 million, up 11% year over year, and exome/genome revenue of $100.3 million, up 17%. Exome/genome test volume was 30,785, up 32% year over year; total company gross margin was 70%, up from 69% in Q1; and adjusted net income was $0.4 million, an $8.6 million improvement from Q1. Blended average reimbursement was $3,258 per test, roughly flat quarter over quarter. For full-year 2026, management reaffirmed revenue guidance of $475 million to $490 million, at least 30% volume growth, at least 20% exome/genome revenue growth, gross margin of approximately 70%, and profitability. For Q3, the company guided to revenue of $122 million to $124 million, exome/genome revenue of $110 million to $112 million, volume of about 33,200 tests, gross margin of approximately 70%, and adjusted net income of about $2 million.

Katherine Stueland said demand is at record levels and that GeneDx is leaning into a multi-year opportunity as the market transitions from exome to genome. Her tone was confident but focused on execution: she stressed that the company is “underearning” today and must improve payment rates, with collections seen as the single biggest opportunity. She also highlighted that coverage is expanding faster than before, but that the priority now is converting coverage into payment and building toward an industry-standard 70% collection rate.

Kevin Feeley emphasized that Q2 showed strong top-line growth, stable blended reimbursement, and better profitability, while also laying out the mechanics behind the reimbursement gap. He said the blended ARR was $3,258 per test, that genome represented 32% of insurance-based outpatient volume, and that the operational outpatient genome collection rate was about 32%, down from 43% in Q2 2025. He pointed to a significant coverage step-up, with commercial genome coverage at about 87% versus 47% last quarter, and said Q3 collection rates should remain roughly flat before meaningful improvement in Q4 and larger benefits in 2027; he also noted $80 million in operating expenses, completion of the planned $25 million in annual cost actions, and pro forma liquidity of about $188 million after a $50 million debt expansion and Blackstone investment.

Analysts focused heavily on the pace of reimbursement improvement, asking why Q3 would still be flat, when Q4 uplift would show up, and what the longer-term realized-price opportunity could be. Management said improvements will lag operational changes because claims and accruals flow through with delay, with meaningful gains expected to begin in Q4 and more fully in 2027. Questions also centered on the Carelon coverage expansion and Medi-Cal timing; management said Carelon’s expanded coverage is a major opportunity but will not fully hit until later in 2026 and 2027, while Medi-Cal is early and being monitored for MCO follow-through. On mix, management said they are intentionally using exome/reflex as a bridge while preserving customer choice, and that the new general pediatrics channel is showing early traction but is still too early to quantify.