Palantir shares slip by 7% despite posting record revenue in third quarter
GAITHERSBURG, Md. - On Tuesday, GeneDx Holdings Corp. (NASDAQ:WGS) reported third-quarter revenue that exceeded analyst expectations and raised its full-year outlook, despite missing earnings estimates.
The genomic testing company’s shares surged 13.15% in pre-market trading after the results.
The company posted revenue of $116.7 million for the third quarter, significantly beating the consensus estimate of $104.33 million and representing a 52% increase YoY. This growth was primarily driven by a 65% jump in exome and genome test revenue, which reached $98.9 million. However, GeneDx reported a loss of $0.27 per share, falling short of analysts’ expectations for earnings of $0.41 per share.
Exome and genome testing volume grew 33% YoY to 25,702 tests, accounting for 43% of all tests performed during the quarter, up from 33% in the same period last year. The company also expanded its adjusted gross margin to 74%, a substantial improvement from 64% in the third quarter of 2024.
"GeneDx’s accelerated growth reflects more than business momentum - it’s proof of the profound impact we’re making for families navigating rare disease and the broader transformation underway across healthcare," said Katherine Stueland, President and CEO of GeneDx.
Based on the strong performance, GeneDx raised its full-year 2025 revenue guidance to between $425 million and $428 million, up from its previous forecast of $400 million to $415 million and above the consensus estimate of $411.7 million. The company now expects exome and genome revenue growth of 53% to 55%, compared to its earlier projection of 48% to 52%.
The company also announced it received FDA Breakthrough Device Designation for its ExomeDx and GenomeDx tests, which are used to diagnose causes of life-threatening diseases or genetic disorders in symptomatic patients.
"As we capitalize on a rapidly expanding market, we’re investing to unlock sustainable, high growth with attractive margins," said Kevin Feeley, CFO of GeneDx.
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