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

GeneDx shares plunged 43% despite strong Q1 results and raised guidance, drawing a surge in retail investor interest. The drop followed the company's first sequential test volume decline, which it linked to weather disruptions.

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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