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Should Strong Q3 Revenue, EPS Miss and New Support Shift GeneDx Holdings’ (WGS) Risk‑Reward Profile?

Simply Wall St · 2d ago
  • Recently, GeneDx Holdings reported Q3 2025 results showing revenue ahead of forecasts but a shortfall on earnings per share, while its CFO Kevin Feeley sold a small number of shares and exercised options.
  • At the same time, ARK Invest increased its position in GeneDx and several analysts upgraded their views, highlighting growing confidence in the company’s role in precision genomics testing.
  • Next, we’ll explore how ARK’s additional buying and analyst upgrades may influence GeneDx’s longer-term investment narrative and risk-reward balance.

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GeneDx Holdings Investment Narrative Recap

To own GeneDx, you need to believe that whole exome and genome testing will keep moving toward frontline use in pediatrics and newborn care, and that GeneDx can convert that shift into profitable growth despite reimbursement and cost pressures. The Q3 2025 revenue beat and raised full year guidance support the near term growth catalyst, while the EPS miss and insider selling look less material than the ongoing risk around reimbursement and higher operating expenses.

The most relevant update here is ARK Invest adding 23,724 GeneDx shares across its innovation and genomics ETFs, shortly after the company raised its 2025 revenue guidance. That incremental buying sits alongside analyst upgrades that point to growing confidence in GeneDx’s role in precision testing, but it does not remove the execution risk tied to expanding into broader pediatric and NICU markets and managing spend on sales, product and data infrastructure.

Yet while interest is growing, investors should be aware of how tighter payer policies or slower pediatric adoption could...

Read the full narrative on GeneDx Holdings (it's free!)

GeneDx Holdings' narrative projects $618.3 million revenue and $117.1 million earnings by 2028. This requires 19.5% yearly revenue growth and roughly an $115.7 million earnings increase from $1.4 million today.

Uncover how GeneDx Holdings' forecasts yield a $158.44 fair value, in line with its current price.

Exploring Other Perspectives

WGS Community Fair Values as at Dec 2025
WGS Community Fair Values as at Dec 2025

Eight Simply Wall St Community fair value estimates for GeneDx span roughly US$18 to US$253 per share, showing how differently private investors view its potential. Against that wide range, the key question many are weighing is whether growth in whole exome and genome testing can offset risks around reimbursement pressure and rising operating costs over time.

Explore 8 other fair value estimates on GeneDx Holdings - why the stock might be worth as much as 59% more than the current price!

Build Your Own GeneDx Holdings Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.