WGSWWHIGH SIGNALOPPORTUNITY10-K

GeneDx delivered substantially higher revenue and meaningfully improved operating losses in fiscal 2026, while acquiring Fabric Genomics and integrating AI capabilities, marking a pivotal inflection point in the company's growth trajectory.

Revenue grew approximately 40% year-over-year to $427.5M, and the operating loss narrowed meaningfully from -$23.2M to -$13.1M, signaling that the business is approaching operational breakeven while continuing to scale. The acquisition of Fabric Genomics on May 5, 2025, and the explicit integration of AI into the company's genomic platform represent a strategic expansion of competitive moat that could accelerate revenue capture and pricing power. Investors should weigh the compelling top-line momentum and loss reduction against the roughly doubled current liabilities ($54.8M to $108.9M), which warrants monitoring as the company integrates its acquisition and funds continued R&D investment.

Comparing 2026-02-23 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

Revenue grew approximately 40% to $427.5M, accompanied by substantially higher gross profit (from $194.4M to $298.2M), reflecting improved scale and mix in GeneDx's testing business. Accounts receivable roughly doubled to $74.4M in line with revenue growth, though current liabilities also roughly doubled to $108.9M — likely reflecting acquisition-related obligations and expanded operational commitments — and R&D expense grew substantially to $72.0M, consistent with the Fabric Genomics integration and AI development investment. The net loss narrowed from -$52.3M to -$21.0M and stockholders' equity expanded to $308.2M (+25.7%), painting an overall picture of a company scaling toward profitability while deliberately investing in platform differentiation, a profile that carries meaningful upside for long-term investors if execution continues on this trajectory.

FINANCIAL STATEMENT CHANGES
Current Liabilities
Balance Sheet
+98.7%
$54.8M→$108.9M

Current liabilities surged 98.7% — significant near-term obligations; verify ability to meet short-term debt.

Accounts Receivable
Balance Sheet
+97.6%
$37.6M→$74.4M

Receivables surged 97.6% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Net Income
P&L
+59.8%
-$52.3M→-$21.0M

Net income grew 59.8% — bottom-line growth signals improving overall business health.

R&D Expense
P&L
+57.5%
$45.7M→$72.0M

R&D investment increased 57.5% — signals commitment to future product development, though near-term margin impact.

Gross Profit
P&L
+53.4%
$194.4M→$298.2M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Operating Income
P&L
+43.7%
-$23.2M→-$13.1M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Revenue
P&L
+40%
$305.4M→$427.5M

Strong top-line growth of 40% — accelerating demand or successful expansion into new markets.

Current Assets
Balance Sheet
+35.5%
$198.0M→$268.3M

Current assets grew 35.5% — improving short-term liquidity or inventory/receivables build.

Inventory
Balance Sheet
+31%
$10.7M→$14.0M

Inventory surged 31% — growing faster than typical sales pace; potential demand softening or supply chain overcorrection.

Stockholders Equity
Balance Sheet
+25.7%
$245.2M→$308.2M

Equity base grew 25.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-23
PRIOR — 2025-02-20
ADDED
The registrant had outstanding 29,288,739 shares of Class A common stock as of February 17, 2026.
Management's Discussion and Analysis of Financial Condition and Results of Operations 57 Item 7A.
( Fabric Genomics ) and the use of artificial intelligence ( AI ); actions or authorizations by the U.S.
( CMLS ) on July 22, 2021 (the Business Combination ); Fabric Genomics refer to Fabric Genomics, Inc., a Delaware corporation, which we acquired on May 5, 2025 (the Merger ); and we, us and our, the Company and GeneDx refer, as the context requires, to GeneDx Holdings and its consolidated subsidiaries.
Purpose At GeneDx, our mission is to empower everyone to live their healthiest life through genomics.
GeneDx combines clinical expertise, advanced technology, and the proprietary GeneDx Infinity dataset to power the ExomeDx and GenomeDx tests ranked #1 by expert geneticists and granted FDA Breakthrough Device Designation enabling clinicians to deliver precise, fast, and actionable diagnoses.
GeneDx Infinity TM also fuels discovery for biopharma while supporting the network that we believe will drive the future of precision genetic medicine.
We believe that what is best for patients must be embedded in every aspect of our work, and in support of these beliefs, we value equitability, simplicity, and transparency.
25 years later, we have amassed one of the world s largest rare disease datasets, GeneDx Infinity TM , and remain a leader in genomics.
We believe exome and genome testing will become the standard for diagnosing genetic disease, with the potential to transform healthcare from reactive to proactive.
REMOVED
The registrant had outstanding 28,068,274 shares of Class A common stock as of February 14, 2025.
Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 7A.
( CMLS ) on July 22, 2021 (the Business Combination ); and we, us and our, the Company and GeneDx refer, as the context requires, to GeneDx Holdings and its consolidated subsidiaries.
Purpose At GeneDx, we believe that everyone deserves personalized, targeted medical care and that it all begins with a genetic diagnosis.
Fueled by one of the world s largest rare disease data sets, our industry-leading exome and genome tests translate complex genomic data into clinical answers that unlock personalized health plans, accelerate drug discovery, and improve health system efficiencies.
We operate with conviction that what is best for patients must be embedded in every aspect of our work.
In support of these beliefs, we value equitability, simplicity and transparency.
25 years later, we have amassed one of the world s largest rare disease datasets and remain a leader in genomics.
Today, we are powered by our industry-leading genomic interpretation platform, and we believe exome and genome testing will become the standard for diagnosis of genetic disease, with the potential to transform healthcare and improve patients quality of life.
Industry Background Targeted genetic tests and panel testing make up the vast majority of diagnostics tests ordered today.
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