GeneDx Holdings (WGS) opened Q1 2026 with recent quarterly revenue of US$120.99 million in Q4 2025 and a basic EPS loss of US$0.61, alongside trailing 12 month revenue of US$427.54 million and a basic EPS loss of US$0.73. Over the last year, revenue has moved from US$95.64 million in Q4 2024 to US$120.99 million in Q4 2025, while quarterly EPS has swung between a profit of US$0.38 in Q2 2025 and losses of up to US$0.61. This sets up an earnings story that investors may review in terms of how quickly margins change from here.

See our full analysis for GeneDx Holdings.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the widely followed narratives about GeneDx Holdings and where those stories might need a reset.

Losses widen again to US$17.7 million

• Q4 2025 net income excluding extra items was a loss of US$17.7 million, compared with a loss of US$7.6 million in Q3 2025 and a profit of US$10.8 million in Q2 2025, highlighting how quickly profitability has been swinging across recent quarters.
• What bulls highlight as a path to stronger profitability, with forecasts for earnings to grow about 67.7% per year and for margins to move from a trailing loss of US$21.0 million to a forecast profit of US$58.6 million by around 2029, sits alongside this recent pattern of quarterly earnings flipping between profit and loss.
  • Supporters of the bullish narrative point to the five year annual loss reduction rate of 36.4% and forecast 18.9% annual revenue growth as signals that these swings could settle into sustained profitability over time.
  • At the same time, the latest trailing 12 month figures still show a basic EPS loss of US$0.73 and net income loss of US$21.0 million, which keeps the bullish case highly dependent on those forward looking revenue and margin assumptions playing out.

Bulls argue that these sharp quarterly swings are the short term price of building a larger genomic platform that could eventually support higher, more stable earnings, and the full bullish case sets out how that story is expected to play out in detail. 🐂 GeneDx Holdings Bull Case

Premium 2.4x P/S despite trailing losses

• GeneDx is trading on a P/S ratio of 2.4x compared with about 1.2x for both peers and the wider US healthcare industry, even though trailing 12 month net income excluding extra items is a loss of US$21.0 million on US$427.5 million of revenue.
• Bears focus on this premium P/S multiple alongside the current loss making status to argue that the stock already prices in strong growth, and that the gap between the current share price of US$34.51 and the cited DCF fair value of about US$185.90 may be hard to reconcile with the recent move back into losses.
  • Critics point out that, while the DCF fair value sits well above the current price, the company is still unprofitable on a trailing basis, so any setback to the revenue or margin outlook could matter more when the valuation is already above peer sales multiples.
  • The same bears also flag that a premium P/S ratio leaves less room for error if forecast revenue growth of 18.9% per year or the expectation of becoming profitable within three years does not materialise as assumed.

Skeptics warn that paying a premium sales multiple for a business that is still loss making on a trailing basis demands extra care, and the full bear case lays out how competitive, regulatory, and reimbursement pressures could keep that risk in focus. 🐻 GeneDx Holdings Bear Case

Revenue scale up to US$427.5 million LTM

• On a trailing 12 month basis, total revenue reached US$427.5 million by Q4 2025, compared with US$305.5 million at Q4 2024 and US$267.2 million at Q3 2024, while the trailing basic EPS moved from a loss of US$3.16 at Q3 2024 to a smaller loss of US$0.73 by Q4 2025.
• The consensus narrative ties this higher revenue base and shrinking trailing per share loss to expectations for revenue to grow 25.1% annually and margins to shift from about a 4.9% loss today to a 7.0% margin in three years, yet the data also shows that the company stayed unprofitable over the last year even as revenue expanded.
  • On one hand, the move from a trailing net income loss of US$83.5 million at Q3 2024 to a loss of US$21.0 million by Q4 2025 supports the idea that the business is working through loss making stages while building scale.
  • On the other hand, the return to a quarterly loss of US$17.7 million in Q4 2025 after a profit of US$10.8 million in Q2 2025 shows that the road to the forecast US$58.6 million of earnings by around 2029 is not yet reflected in a smooth earnings trend.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for GeneDx Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of bullish expectations and fresh losses makes the story around GeneDx Holdings quite divided. Treat this as a starting point and test the numbers yourself before leaning one way or the other, and see the 3 key rewards and 2 important warning signs

See What Else Is Out There

GeneDx Holdings is still loss making with profit and loss flipping between quarters, while the stock trades on a premium 2.4x P/S multiple.

If you are concerned about paying up for a company that has yet to deliver consistent profitability, compare that risk profile with 72 resilient stocks with low risk scores to quickly find steadier options that may better match your comfort level.

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.