GeneDx beats Q2 revenue guidance, returns to profit early

 

GeneDx beats Q2 revenue guidance, returns to profit early with non-GAAP EPS $0.01 on $114.4M revenue

• Q2 revenue $114.4M grew 11% YoY, above guidance, with exome/genome up 17%.
• Exome/genome test volume hit 30,785, up 32% YoY, a new quarterly record.
• Company returned to profitability early with $0.4M adjusted net income and 70% gross margin.
• Non-GAAP Q2 EPS was $0.01, down 98% year over year.
• Blended average reimbursement rate was $3,258 per test, flat QoQ despite better mix.
• Genome was 32% of outpatient insurance volume, down from ~40% Q1 as reflex exome grew.
• Commercial genome coverage jumped to 87% of lives from 47% last quarter; exome now 98%.
• Outpatient genome collection rate stuck at ~32%, well below ~70% industry target for mature tests.
• Q3 guidance: $122–124M revenue, 33,200 tests, ~$3,300 ARR, ~70% GM, ~$2M adjusted profit.
• Full-year 2026 guidance reaffirmed: $475–490M revenue, ≥30% volume growth, ~70% gross margin, profitable.
• Liquidity strengthened to ~$188M after Blackstone-backed debt expansion; $25M cost program completed.
• Blackstone loan facility expanded to $150M, reinforcing the strengthened liquidity position after recent debt expansion.
• Main concern: Persistently low collection rates and delayed monetization of new coverage improvements.
• Strong quarter, driven by robust test volume growth and earlier-than-expected profitability despite muted ARR.

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