GeneDx Reports Q4 and 2024 Financial Results, Provides 2025 Guidance
GeneDx Holdings Corp. (Nasdaq: WGS), a leader in genomic testing for improved health outcomes, reported its financial results for the fourth quarter and full year of 2024. The company highlighted its growth in both revenue and the expansion of its genomic testing services, marking a strong finish to a transformative year.
Katherine Stueland, President and CEO of GeneDx, reflected on the progress, noting that the company had made significant strides in helping families by providing earlier disease diagnoses with their advanced exome and genome testing. She emphasized the importance of diagnosing conditions earlier to save healthcare costs and enhance patient outcomes. Looking ahead, GeneDx plans to extend its testing services to a broader patient population, including in outpatient pediatric settings, the NICU, adult conditions, and, eventually, newborn screening programs.
Fourth Quarter and Full Year 2024 Financial Results
For the fourth quarter of 2024, GeneDx reported revenue of $95.3 million, a 64% increase compared to the same period last year and a 24% sequential growth. Total company GAAP revenues reached $95.6 million. Exome and genome test revenues also grew significantly, reaching $78.8 million, marking a 101% year-over-year increase and 31% sequential growth. These impressive numbers reflect the company’s expanding influence in the genetic testing market.
For the full year 2024, GeneDx posted revenues of $302.3 million, a 56% increase compared to 2023. Total GAAP company revenues were $305.5 million. Exome and genome test revenues surged to $233.5 million, growing by 88% year-over-year. This revenue boost was driven by increased adoption of genomic testing as a diagnostic tool.
Exome and Genome Testing Volume
GeneDx also saw a significant rise in the volume of exome and genome tests performed. In the fourth quarter of 2024, the company processed 20,676 tests, a 32% increase compared to the previous year and a 7% increase from the third quarter. These tests represented 38% of all test results in the fourth quarter, up from 27% in Q4 2023. For the full year, GeneDx performed 74,547 exome and genome tests, a 51% increase from the previous year, with these tests making up 33% of the total test volume.
Gross Margin Performance
GeneDx saw a significant improvement in its gross margin. In Q4 2024, the adjusted gross margin expanded to 70%, up from 56% in Q4 2023, and up from 64% in Q3 2024. The company’s GAAP gross margin for the quarter was 69%, with exome and genome testing margins exceeding 70%. For the full year 2024, the adjusted gross margin increased to 65%, up from 45% in 2023, reflecting the company’s ability to scale its operations while maintaining efficiency.
Operating Expenses and Net Income
In the fourth quarter of 2024, GeneDx reported adjusted operating expenses of $49.0 million, a modest 1% increase compared to the previous year. Total GAAP operating expenses for the quarter were $56.6 million. For the full year, adjusted operating expenses decreased by 14% year-over-year to $185.9 million, while GAAP operating expenses were $214.2 million.
The company posted a GAAP net income of $5.4 million for Q4 2024, an improvement from the previous year. However, for the full year, GeneDx experienced a GAAP net loss of $52.3 million, primarily due to increased investments in its growth initiatives.
Cash Flow and Position
GeneDx ended 2024 with a strong cash position, reporting $142.2 million in cash, cash equivalents, marketable securities, and restricted cash as of December 31, 2024. The company generated $12.4 million in cash from operations during Q4, which includes $6.8 million in discrete receipts related to a multi-year appeal recovery. Additionally, GeneDx raised $31.9 million from the issuance of Class A common stock through an at-the-market offering.
Guidance for Full Year 2025
Looking ahead, GeneDx is optimistic about its future growth. The company projects revenues for 2025 to be between $350 million and $360 million, with exome and genome volume and revenue expected to grow by at least 30%. The company anticipates adjusted gross margins to be between 65% and 67% and expects to achieve profitability with adjusted net income in each quarter of 2025.
Business Highlights
GeneDx continues to lead the market in genomic testing with several key initiatives. The company has amassed a dataset of over 750,000 clinical exomes and genomes, complemented by over 6 million phenotypic data points. The company’s testing services have also been adopted by more state Medicaid programs, expanding access to exome and genome sequencing, especially in the pediatric and neonatal intensive care unit (NICU) settings.
Notable recent developments include the launch of ultraRapid Whole Genome Sequencing, which provides rapid genomic insights for NICU and pediatric patients, and the launch of Epic Aura3, which integrates GeneDx’s testing into the workflows of major health systems.
GeneDx is also advancing its presence in newborn screening, with over 17,000 infants screened through the GUARDIAN and Early Check research studies. The company’s continued research and partnerships in genetic data analysis and drug development are driving further innovation in the field.
