GeneDx Holdings Corp. (WGS) AI Stock Analysis

NASDAQ: WGSAI research summary: business, growth, valuation, analysts, bull and bear case.

WGS AI stock analysis summary

AI Research

GeneDx Holdings Corp. (WGS) is a healthcare diagnostics company specializing in genetic testing and AI-driven health intelligence solutions. The company increased revenue from $202.6M in FY2023 to $427.5M in FY2025, generating positive free cash flow of $14.3M in FY2025. However, trailing twelve month net margins remained negative at -23.4%, and the stock declined 46.3% over the past year.

Market cap
$1.90B
Revenue (TTM)
$454.4M
P/E
—
fwd 63.3x
1Y return
-46.3%
S&P 500 16.8%
Avg. target
$93.50
47.0% vs last close

Bull case

  • Revenue expanded 40.0% in FY2025 to $427.5M as gross margin reached 69.7%.
  • The company produced positive operating cash flow of $33.3M and free cash flow of $14.3M in FY2025.
  • Analyst consensus price targets stand at $93.50, implying 47.0% upside over the $63.61 share price.

Bear case

  • Trailing twelve month performance remains unprofitable with a net profit margin of -23.4% and an EPS of -$3.63.
  • Short interest represents 36.1% of the public float, while the stock has fallen 51.1% year-to-date.
  • Significant historical dilution occurred, reflected in a 306.0% five-year increase in share count.

What GeneDx does

GeneDx Holdings Corp. operates as a health information company focused on disease diagnosis, treatment, and prevention through genomic and data-driven solutions. Its flagship platform, Centrellis, applies AI-driven health intelligence to assist biopharmaceutical companies across the drug discovery, clinical development, and commercialization process. The company also offers Sema4 Signal for precision oncology care and provides advanced sequencing and specialized genetic testing services. These testing capabilities include carrier screening, noninvasive prenatal testing, newborn screening, hereditary cancer testing, and COVID-19 testing solutions.

Growth and profitability

GeneDx increased revenue from $212.2M in FY2021 to $427.5M in FY2025, representing a 5-year revenue compound annual growth rate of 19.0%. Annual revenue grew 50.8% in FY2024 and 40.0% in FY2025. Gross margin expanded from -7.8% in FY2021 to 69.7% in FY2025, while operating margin narrowed from -210.3% to -2.8% over the same period. Annual net income improved from -$245.4M in FY2021 to -$21.0M in FY2025, with EPS rising to $1.40. Over the trailing twelve months, revenue reached $454.4M with an operating margin of -15.2% and EPS of -$3.63. For the latest quarter ended June 30, 2026, quarterly revenue grew 11.4% year-over-year.

WGS income statement →

Balance sheet and cash flow

As of June 30, 2026, GeneDx held $132.5M in cash and short-term investments against total debt of $167.4M, resulting in net debt of $34.9M. Total assets stood at $481.5M compared to shareholders' equity of $244.2M, with a current ratio of 3.30 and a debt-to-equity ratio of 0.69. Operating cash flow improved to $33.3M in FY2025 from -$28.5M in FY2024. Free cash flow was $14.3M in FY2025 after capital expenditures of $19.0M. Share count increased 306.0% over the five-year period.

WGS balance sheet →

Valuation and performance

At a share price of $63.61, GeneDx has a market capitalization of $1.90B and an enterprise value of $2.58B. The stock trades at a forward P/E of 63.3x, above the 17.3x median of its US-listed Healthcare peers. Its price-to-sales multiple of 4.2x compares to the peer median of 4.1x, while its EV-to-EBITDA ratio of 161.2x exceeds the peer median of 12.0x. Over the past year, the stock fell 46.3%, while the S&P 500 benchmark gained 16.8%. Over five years, the stock dropped 75.3% against an 83.0% gain for the S&P 500.

WGS key metrics →

What analysts expect

Wall Street coverage includes 7 Strong Buy ratings, 1 Buy rating, and no Hold or Sell recommendations. The mean price target is $93.50, which is 47.0% above the last closing price of $63.61. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $481.8M and EPS of $0.13. For the following fiscal year, seven analysts project revenue of $599.0M and EPS of $1.20. GeneDx beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 27, 2026.

WGS forecast and price target →

Key risks and what to watch

  • Net debt stood at $34.9M as of June 30, 2026, with total debt of $167.4M exceeding cash of $132.5M.
  • The stock carries elevated market sensitivity, evidenced by a beta of 1.97.
  • Valuation multiples remain elevated, including an EV-to-EBITDA of 161.2x compared to the peer median of 12.0x.
  • Current fiscal year EPS is projected to decrease 90.6% to $0.13.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this WGS AI stock analysis

This page is an AI-written research summary of GeneDx Holdings Corp. (WGS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: WGS income statement, WGS balance sheet, WGS key metrics, WGS analyst forecast, WGS chart. See the WGS stock overview for the latest quote and news.

WGS AI stock analysis FAQ

What is GeneDx Holdings Corp.'s ticker and exchange?

GeneDx Holdings Corp. trades under the ticker WGS on the NASDAQ exchange.

Does GeneDx pay a dividend?

GeneDx does not pay a dividend.

When is GeneDx's next earnings report?

The company is scheduled to report earnings on October 27, 2026.

What is GeneDx's revenue and earnings outlook for FY2026?

For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $481.8M and EPS of $0.13.

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