WGSWW — GeneDx Holdings Corp.

Summary of GeneDx Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: $114.4 million, up 11% year-over-year.
• Exome and Genome Revenue: $100.3 million, up 17%.
• Volume of Tests: 30,785 tests conducted, representing a 32% increase year-over-year.
• Gross Margin: 70%, an increase from 69% in Q1 2026.
• Adjusted Net Income: $0.4 million, marking a return to profitability one quarter earlier than expected.
• Blended Average Reimbursement Rate: $3,258 per test, flat quarter-over-quarter.

2. Strategic Updates and Business Highlights

• GeneDx achieved a record number of exome and genome tests and emphasized the increasing demand for genomic testing.
• The company is focused on three strategic imperatives: optimizing unit economics, increasing utilization of exome and genome tests, and delivering products at scale while managing capital responsibly.
• Significant progress was noted in payer coverage, with Carelon expanding commercial genome coverage from 47% to 87% in one quarter.
• The company is enhancing revenue cycle management (RCM) and commercial operations to improve payment rates and operational efficiency.
• New leadership, including Mark Gardner, is expected to strengthen operational capabilities and drive growth.

3. Forward Guidance and Outlook

• Full-Year Revenue Guidance: Reaffirmed at $475 million to $490 million.
• Expected Volume Growth: At least 30% for exome and genome tests.
• Q3 Revenue Guidance: Anticipated between $122 million and $124 million, with exome and genome revenue of $110 million to $112 million.
• Blended Average Reimbursement Rate for Q3: Projected at approximately $3,300 per test.
• Profitability: Expected to maintain profitability with approximately $2 million in adjusted net income for Q3.

4. Bad News, Challenges, or Points of Concern

• Collection Rates: The operational underlying outpatient genome collection rate remains low at approximately 32%, with expectations for flat performance in Q3 before improvements in Q4.
• Payer Coverage Variability: While coverage is improving, not all policies are equal, and administrative barriers remain a challenge.
• Operational Lag: There is a natural lag between operational improvements and their impact on revenue recognition, which could affect short-term revenue growth.
• Competitive Pressures: The transition from exome to genome testing presents competitive challenges, and while GeneDx maintains a strong market share, the landscape is evolving.

5. Notable Q&A Insights

• Pacing of Collection Rates: Management indicated that collection rates are expected to remain flat in Q3, with meaningful improvements anticipated in Q4 2026 and into 2027.
• Mix Management: The company is actively managing the product mix between exome and genome tests, with a focus on optimizing reimbursement rates.
• Emerging Markets: There is growing engagement in the general pediatrics market, with early signs of adoption and increased orders, which could contribute to future growth.
• Operational Improvements: New processes and technology investments are being implemented to enhance revenue cycle management and improve collection rates.
• Long-Term Vision: GeneDx's leadership emphasized confidence in the long-term potential of genomic testing, with expectations that collection rates could eventually reach industry standards of around 70%.

Overall, GeneDx demonstrated solid growth in Q2 2026, reaffirmed its guidance for the year, and is taking strategic steps to address operational challenges while capitalizing on the growing demand for genomic testing.