GeneDx Holdings Corp. Q4 FY2025 earnings call

Katherine stated the fourth quarter was a strong finish to a transformative year. The company operates in a large unmet need market, reaffirmed 2026 full-year guidance. 2026 is a breakout year with INFINITY, the world's largest and most diverse rare disease dataset. Leverages AI tools to enhance impact. Has multiple growth levers like activating new clinicians, increasing utilization, introducing testing to new markets. Expanding into markets like general pediatrics, NICU, prenatal, etc. and investing in business growth-related areas.

Quarterly revenues were $121,000,000, with full-year revenues reaching $428,000,000. Exome and genome revenue grew by 54%. Fourth quarter exome and genome revenues were $104,000,000, an increase of 32% year over year. Full-year total company adjusted gross margin was 71% for both the fourth quarter and full year 2025.

Reaffirmed 2026 total revenues in the range of $540 to $555,000,000, exome and genome volume growth of 33% to 35% with a Q1 baseline of 33% growth. Foundational markets contribute 25%-27% to the growth rate, expansion markets contribute 7%-8%, future markets about 1%. Adjusted gross margin at approximately 70%. Expect adjusted net income positive for the full year and each quarter, with Q1 close to breakeven and adjusted operating margin moving towards double digits by Q4 as investments yield revenue.

Weather can affect patient visits. Payers may auto-deny when new markets and diagnosis codes are presented. There are risks related to new diagnosis codes and physician types in new markets where initial auto-denial may occur.

Q: Subhalaxmi T. Nambi asked about guidance and what drives the assumption in the guide.

A: Kevin Feeley said factors like penetration rates, repetition of converting single gene to exome/genome, etc.

Q: William Bishop Bonello asked about quarterly cadence.

A: Kevin Feeley said Q1 is typically the low point due to deductibles and weather.

Q: Kyle Mikson asked about growth drivers and test performance.

A: Katherine and Kevin Feeley answered about growth drivers and test accuracy and competitiveness.

Q: Daniel Gregory Brennan asked about pricing and new growth drivers contribution.

A: Kevin Feeley answered about pricing conservatism and new growth drivers contribution.

Q: Tycho W. Peterson asked about legislation and pharma.

A: Katherine and Kevin Feeley answered about legislation and pharma conversations.

Q: Mark Anthony Massaro asked about EMR strategy and NICU growth.

A: Katherine answered about EMR strategy and NICU growth with lessons learned.

Q: Brandon Couillard asked about operating margin.

A: Kevin Feeley answered about Q1 being close to breakeven and operating margin building.