GeneDx Shares Crater After Q1 Revenue Comes In Below Expectations
The genomic testing firm lowered its full-year 2026 revenue outlook to $475 million to $490 million from a prior range of $540 million to $555 million.
GeneDx shares tanked 50 percent in Tuesday morning trading after the genomic testing company said it was slashing its full-year 2026 revenue guidance.
The Gaithersburg, Maryland-based genomic testing firm reported Q1 2026 revenue of $102.3 million, up from $87.1 million in Q1 2025, but $12 million below its own expectations.
“Approximately $5.5 million was due to a lower-than-expected blended average reimbursement rate for exome and genome” testing, CEO Katherine Stueland said on a conference call with investors following the release of results. “And second, approximately $6.5 million was due to softer-than-expected performance from our noncore business lines.”
GeneDx cut its full-year 2026 revenue outlook to $475 million to $490 million from a prior range of $540 million to $555 million, and trimmed its exome and genome volume growth target to at least 30 percent from a prior range of 33 to 35 percent.
Exome and genome test revenue rose 27 percent to $90.6 million from $71.4 million a year ago, on volume growth of 34 percent year over year to 27,488 tests from 20,562. Other panels revenue was $10.6 million, down from $12.1 million a year ago.
The company’s net loss for the quarter was $63.3 million, or $2.16 per share, compared to a loss of $6.5 million, or $.23 per share, in Q1 2025. Adjusted net loss was $8.2 million, compared to adjusted net income of $9.2 million a year ago.
GeneDx took a $31.3 million impairment charge during the quarter, related to goodwill and intangible assets associated with its Fabric Genomics acquisition.
GeneDx’s R&D expenses rose 57 percent to $19.8 million from $12.6 million in Q1 2025. SG&A expenses increased 48 percent to $74.6 million from $50.5 million a year ago.
As of March 31, GeneDx had $93.9 million in cash and cash equivalents, $76.8 million in marketable securities, and $1.0 million in restricted cash.
For the second quarter, GeneDx guided revenue of $110 million to $112 million, with approximately 30,000 exome and genome tests and approximately $100 million in exome and genome revenue.