WGS

GeneDx is executing a textbook inflection. FY2025 revenue of $428M grew 40% YoY and the multi-year trajectory is accelerating ($203M→$305M→$428M across FY2023-2025), not maturing. The engine is the deliberate shift toward exome and genome testing: the MD&A discloses 97,271 resulted exome/genome tests in 2025 (43% of all results) versus 74,547 (33%) in 2024 and 49,439 (22%) in 2023. These are the company's highest-value, most-differentiated tests, and the mix shift is showing up directly in economics — gross margin is 69.7% with gross profit up 53% YoY, outpacing revenue. Management is explicit that test volume compounds the genomic database, which in turn drives variant interpretation and stickier long-term patient relationships: a flywheel, not a one-time pop.

The profitability story is the part the headline net loss hides. The GAAP net loss narrowed to -$21.0M from -$52.3M, operating loss is nearly breakeven at -$13.1M (-3.1% margin), and — most important — operating cash flow turned solidly positive at $33.3M (up 217% YoY), comfortably funding the $19.0M of capex. The company is no longer burning to grow. The balance sheet supports the runway: $105M cash, modest debt ($48.2M long-term plus $4.5M current), equity of $308M and a conservative 0.70x liabilities/equity. The -$1.37B accumulated deficit is legacy scar tissue from the SPAC-era write-downs (FY2022 lost $549M), not a description of the current business.