GeneDx Holdings Shares Fall 49 Percent After Q1 Earnings Miss

GeneDx Holdings Corp. 42, or 49 percent, on May 5, 2025, after the company reported first-quarter 2026 results that missed prior expectations and reduced its full-year 2026 guidance. The stock decline reduced the company's market capitalization by more than $900 million in a single trading day.

Berman, a national shareholder rights law firm, stated it has opened an investigation into whether GeneDx may have violated federal securities laws. The firm is inviting investors who incurred significant losses to contact it regarding potential claims.

GeneDx operates a clinical diagnostics business focused on rare and ultra-rare disease testing, with whole genome sequencing and whole exome sequencing tests listed as primary growth drivers. The company generates revenue mainly from billing insurance providers, health systems, and patients for ordering these genomic tests.