GeneDx Holdings Corp. Q1 FY2025 earnings call

• First quarter revenues exceeded $87 million with third consecutive quarter of profitability.
• Raised guidance for the year to $360 million to $375 million.
• Expanded into new clinical indications in outpatient setting and laid infrastructure in NICU.
• Announced acquisition of Fabric Genomic, a pioneer in AI-powered genomic interpretation.
• Integrating AI across business, focusing on efficiency and scaling interpretation platform.
• GUARDIAN study championing genomic newborn screening, with first mover advantage.
• 25th anniversary, having sequenced 800,000 exomes and genomes.

First quarter 2025 revenues were $87.1 million. Exome and genome revenues grew 62% year-over-year contributing $71.4 million this quarter, accounting for 40% of all tests. Adjusted gross profit from continuing operations in the first quarter was $59.7 million, up 56% year-over-year, translating to an adjusted gross margin of 69% in the first quarter, up from 61% a year ago.

• Raised top line guidance to $360 million to $375 million for full year 2025, inclusive of $3 million to $5 million from acquired Fabric business.
• Reaffirmed expectation of at least 30% growth in exome genome volume and revenues for full year 2025.
• Raised expectation for full year 2025 adjusted gross margin to between 66% and 68%.
• Reaffirmed expectation to maintain profitability each quarter and for the full year of 2025 on an adjusted net income basis.

• Weather impact on volumes in Q1, with one less sales day and severe weather affecting scheduling.
• Uncertainty around Medicaid policy changes and potential cuts.
• Denials in reimbursement, with still a significant portion of claims being administrative or procedural denials.

Q: William Bonello asked about Q1 volume trend and G&A expense.

A: Kevin Feeley responded that there's a historic Q4 to Q1 volume drop, weather affected this year, and G&A expense includes Epic infrastructure costs.

Q: Dan Brennan asked about NICU visibility, pricing, April performance, and newborn screening/pharma revenue.

A: Katherine Stueland and Kevin Feeley responded on NICU integration, pricing trends, April momentum, and newborn screening likely in 2027.

Q: Mark Massaro asked about Fabric Genomics economics, ultraRapid impact, and gross margin.

A: Katherine Stueland and Kevin Feeley discussed Fabric's high margin, ultraRapid mix potential, and gross margin guidance.

Q: Tycho Peterson asked about new indications, ultraRapid mix, gross margin, denial rates, and pharma progress.

A: Kevin Feeley and Katherine Stueland responded on new indications, ultraRapid mix, gross margin guidance, denial rates, and pharma partnerships.

Q: Matt Sykes asked about whole genome vs exome and Medicaid risks.

A: Katherine Stueland and Kevin Feeley talked about whole genome transition and Medicaid policy risks.

Q: Brandon Couillard asked about weather impact recoupment and hereditary cancer.

A: Kevin Feeley responded on weather impact recoupment and hereditary cancer residual contribution.