GeneDx Holdings Corp. has recently released its 10-Q report, detailing its financial performance for the three months ended June 30, 2025. GeneDx is a genomics company headquartered in Stamford, Connecticut, that specializes in providing genetic testing services, particularly in pediatric and rare disease diagnostics, with a focus on whole exome and genome sequencing, as well as data and information services. The company also develops an AI-based platform for NGS analysis, interpretation, and clinical reporting for rare disease, hereditary risk, and cancer testing.
In the 10-Q report, GeneDx discussed the factors affecting its performance, including the number of resulted tests, success in obtaining and maintaining reimbursement, lowering the costs associated with performing tests, increasing adoption of its services by existing and new customers, and investment in platform innovation to support commercial growth.
During the three months ended June 30, 2025, GeneDx resulted 23,102 exome and genome tests, representing 41% of all test results, compared to approximately 18,017 tests in the same period in 2024, which represented 31% of all test results. This increase in test volumes contributed to the company's revenue growth.
The company's total revenue increased by 46% to $102.7 million for the three months ended June 30, 2025, from $70.5 million for the same period in 2024. Diagnostic test revenue, which forms the majority of GeneDx's revenue, increased by 44% to $99.8 million for the three months ended June 30, 2025, from $69.4 million for the same period in 2024. This increase was primarily driven by a 69% rise in whole exome and genome sequencing revenues.
GeneDx also generates revenue from collaboration service agreements with biopharma companies and other third parties, as well as software subscriptions and clinical and consulting services related to rare disease, hereditary risk, and cancer testing. The company's ability to increase this revenue depends on expanding its customer base among hospitals and genomic centers, along with increased adoption of whole genome sequencing and AI-enabled interpretation in clinical workflows.
The cost of services reflects the aggregate costs incurred in performing services, including expenses for reagents and laboratory supplies, compensation expenses for employees, shipping and handling fees, and allocated genetic counseling, facility, and information technology costs. GeneDx expects the cost per test to decrease over the long term due to efficiencies gained from improved utilization of laboratory capacity, automation, and other value engineering initiatives.
Research and development expenses, selling and marketing expenses, and general and administrative expenses have all increased in absolute dollars, reflecting the company's efforts to innovate, expand its commercial sales and marketing, and increase headcount. However, GeneDx expects these expenses to decrease as a percentage of revenue in the long term, as revenue increases.
Today the company's shares have moved 6.36% to a price of $84.91. For the full picture, make sure to review GeneDx's 10-Q report.
