GeneDx Holdings Corp. Class A Common Stock (WGS)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits, generate free cash, and sell at a sensible price. GeneDx has an interesting niche: pediatric and rare disease genetic testing, whole exome and genome sequencing, and an AI platform. Revenue has grown from $202.6M in fiscal 2023, the year ended 2023-12-31, to $305.4M in fiscal 2024 and $427.5M in fiscal 2025. That is real top-line progress. But profits are the problem. The company lost $175.8M in fiscal 2023, $52.3M in fiscal 2024, and $21.0M in fiscal 2025, so the annual loss narrowed. Then in fiscal Q1 2026, the quarter ended 2026-03-31, it lost $63.3M, and in fiscal Q2 2026, the quarter ended 2026-06-30, it lost $17.7M on $114.4M of revenue. Trailing free cash flow is -$75.8M, a -3.9% free cash flow yield, and returns are negative: ROE -40.8% and ROCE -7.9%, per FairStock calculations. The balance sheet has debt-to-equity of 0.69 and an Altman Z-Score of 1.23, which suggests financial risk. The Piotroski F-Score is 4/9. At the close on 2026-10-13, the price was $64.96; that gives a $1.9B market cap, a FairStock P/B of 7.93, and no meaningful P/E because trailing earnings are negative. A beta of 2.01 means the shares are volatile. There may be a moat in rare-disease data and clinical interpretation, but it is not yet visible in profits or cash. I prefer a margin of safety; here the price already assumes a sharp turn to profitability. Until GeneDx proves it can earn money consistently, this remains speculative growth, not a value investment.

In plain English: GeneDx is a healthcare company that does genetic testing, especially for children with rare diseases. The business is growing sales but still loses money and burns cash, and its most recent quarter was unprofitable. At the recent price, the stock looks expensive compared with its current profits and accounting value, so it depends on a big future improvement.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer