GeneDx Holdings Corp. (NASDAQ:WGS) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse GeneDx Holdings Corp.'s (NASDAQ:WGS) business as it appears the company may be on the cusp of a considerable accomplishment. GeneDx Holdings Corp., a genomics company, provides genetic testing services. The US$2.3b market-cap company posted a loss in its most recent financial year of US$52m and a latest trailing-twelve-month loss of US$39m shrinking the gap between loss and breakeven. The most pressing concern for investors is GeneDx Holdings' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 8 of the American Healthcare analysts is that GeneDx Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$21m in 2026. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 61% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of GeneDx Holdings' upcoming projects, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for GeneDx Holdings

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 20% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of GeneDx Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at GeneDx Holdings, take a look at GeneDx Holdings' company page on Simply Wall St. We've also compiled a list of important aspects you should look at:

1. Valuation: What is GeneDx Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether GeneDx Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on GeneDx Holdings’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.