GeneDx Q2 Earnings Call Highlights

GeneDx NASDAQ: WGS reported second-quarter revenue of $114.4 million, above its prior guidance, as exome and genome testing volume reached a quarterly record of more than 30,000 tests. The company also returned to adjusted profitability one quarter earlier than previously expected, while maintaining its full-year 2026 outlook. Chief Executive Officer Katherine Stueland said demand for the company’s rare-disease genetic testing services “has never been higher,” but emphasized that improving reimbursement remains GeneDx’s largest opportunity. The company is focusing on optimizing unit economics, expanding utilization of exome and genome testing, and delivering products at scale while managing capital. “We are under-earning on our potential,” Stueland said, adding that GeneDx aims to improve collections as payer coverage expands and internal revenue-cycle processes mature. Volume Growth Outpaced Revenue Growth GeneDx resulted 30,785 exome and genome tests during the quarter, a 32% increase from a year earlier. Exome and genome revenue rose 17% to $100.3 million, while total revenue increased 11% year over year. Chief Financial Officer Kevin Feeley said the difference between volume and revenue growth reflected a larger share of genome testing, which currently has lower contracted reimbursement rates than exome testing. Genome represented 32% of insurance-based outpatient volume in the second quarter, down from nearly 40% in the first quarter but up from 15% in 2025. The company said it has seen monthly mix gains back toward exome and its reflex offering, under which a test can begin as an exome and be expanded to a genome if additional information is needed. Stueland said approximately 80% of patients with genetic disease can be diagnosed through an exome test, while reflex testing provides a pathway to genome analysis when needed. Feeley said reflex volume exceeded genome volume on a single-month basis in July for the first time since the product launched in February. GeneDx expects genome mix to hover around 30%, or slightly below that level, during the second half of 2026. Reimbursement and Coverage Remain Central Focus GeneDx reported a blended average reimbursement rate of $3,258 per test in the second quarter, roughly flat sequentially and in line with company expectations. Feeley said the company views that level as its reimbursement baseline for the remainder of the year. The company is targeting improvements through product mix management, broader payer coverage and stronger collection processes. President Mark Gardner, who joined GeneDx in June, said the company is working on four operational levers: managing exome-versus-genome mix, expanding payer coverage, developing payer-specific...