WGS Stock Forecast & Price Target

GeneDx Holdings Corp demonstrated exceptional growth with a remarkable 65% year-over-year increase in core exome/genome revenue, supported by a 33% rise in testing volumes and a 23% growth in average selling prices, reaching $3,850 per test. The company has raised its 2025 revenue guidance to between $425 million and $428 million, reflecting a solid growth expectation of 39% to 40% year-over-year, after an impressive $12 million beat in Q3'25. Furthermore, the ongoing shift towards exome and genome testing, which constituted 43% of volumes in Q3'25, alongside an anticipated gross margin increase to 70%-71%, underscores a positive outlook for the company's financial performance in the precision medicine sector.

GeneDx Holdings Corp is facing a negative outlook due to a projected cash burn of approximately $2 million per quarter associated with its Whole Genome Sequencing (WGS) efforts, compounded by a high current denial rate of 45% in reimbursement claims despite contracts with about 80% of health plans. The potential failure to maintain a consistent supply of sequencers and materials poses a significant risk to the company's operational results, which could further hinder its ability to capitalize on its genomic testing capabilities. Additionally, any unfavorable changes in reimbursement policies by third-party payers could severely impact GeneDx’s commercial success and overall financial condition.