Retail Buzz Swirls Around GeneDx As Shares Sink 43% Despite Earnings Beat

Retail investor interest surged Wednesday around GeneDx Holdings Corp after the company’s shares plunged nearly 43% despite strong quarterly results.

The genomic diagnostics company reported first-quarter 2025 revenue of $87.1 million, up 42% year-over-year, driven by a 62% rise in exome and genome test revenue to $71.4 million. The company posted adjusted net income of $7.7 million, compared with a $8.0 million loss a year earlier.

Adjusted gross margin rose to 69% from 61%, while exome/genome test volumes grew 24% to 20,562.

GeneDx raised its full-year revenue guidance to $360 million–$375 million, including $3 million-$5 million from its planned $51 million acquisition of Fabric Genomics.

Despite the strong financials, the stock opened sharply lower and extended losses throughout the day, closing at $66.85 — down from Tuesday’s close of $117.06. 

GeneDx noted a sequential decline in test volumes in Q1, which the company attributed to weather-related disruptions in January and February. 

CEO Katherine Stueland said that volumes would have been slightly higher than Q4 levels “if not for the effects of a brutal January and February,” citing typical seasonal patterns where Q1 is the softest quarter.

Craig-Hallum Capital Group recommended using the post-earnings weakness as a buying opportunity, calling the volume miss “modest” and noting it was the company’s first-ever sequential decline. 

In a research note, the firm said management pointed to significantly worse-than-expected weather and one fewer selling day as key factors. Encouragingly, it added, volumes accelerated in March with momentum continuing into Q2.

Craig-Hallum reiterated a ‘Buy’ rating and $114 price target on the stock, according to The Fly.

The unexpected drop in share price drew attention from individual traders on Stocktwits, where users expressed optimism about a near-term recovery. 

Some pointed to the company’s raised guidance and ongoing profitability as signs that the selloff was overdone, while others anticipated a potential bounce in the stock given broader market strength.

On Stocktwits, 24-hour message volume on GeneDx jumped by 3,229%, with sentiment classified as "extremely bullish."

Shares of GeneDx Holdings Corp have fallen 16.1% so far this year.

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