How Long Can GeneDx Keep Burning Cash?
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GeneDx (WGS) sells exome and genome tests to geneticists and pediatric specialists. The cash remaining after running the business and paying for buildings and equipment was negative in three of the last four quarters. GeneDx burned $39.1 million during fiscal Q2 2026, which ended June 30. Take a guess: at that pace, how many quarters would GeneDx’s cash cover?
How Fast Is GeneDx Burning Cash?
GeneDx burned cash equal to 34.2% of its sales in fiscal Q2 2026. A year earlier, the company brought in more cash than it spent during the same quarter, leaving a surplus equal to 7.8% of sales.
| Fiscal quarter | Sales | Cash the business brought in | Cash left after spending on buildings and equipment |
|---|---|---|---|
| Q1 FY2025 (ended 2025-03-31) | $87.1 million | $10.2 million | $4.05 million |
| Q2 FY2025 (ended 2025-06-30) | $103 million | $10.4 million | $8.05 million |
| Q3 FY2025 (ended 2025-09-30) | $117 million | $15.8 million | $9.60 million |
| Q4 FY2025 (ended 2025-12-31) | $121 million | -$3.09 million | -$7.44 million |
| Q1 FY2026 (ended 2026-03-31) | $102 million | -$32.4 million | -$38.9 million |
| Q2 FY2026 (ended 2026-06-30) | $114 million | -$29.0 million | -$39.1 million |
Each row is one fiscal quarter. A negative figure is cash going out. The last column is free cash flow.
The burn is growing. GeneDx burned cash over the four quarters ending in June 2026, after roughly breaking even over the prior four quarters. The company last brought in cash during the quarter ended September 2025. Management said the second quarter would be the high point of the year for cash use, partly because of heavier equipment spending as it expanded its sequencing fleet. It expects the fourth quarter to return to generating cash, a forecast rather than a result. Yet running the business consumed cash even before accounting for equipment purchases in both quarters of 2026.
How Long Would GeneDx’s Cash Last?
GeneDx held $133 million in cash and short-term investments on June 30, 2026. If the company raised nothing and maintained its four-quarter average burn pace, that cash would last about seven quarters. At the fiscal Q2 2026 rate alone, the cash would cover a little over three quarters. Management said after the quarter ended that GeneDx expanded its existing debt facility by $50 million, which is not in that cash. Its debt stood at $167 million on June 30, an amount surpassing the cash it holds. Measured in years, this cash buys less than a year of operations at the latest pace, and a little under two years at the four-quarter average.
Who Has Paid For The Burn So Far?
Between June 2024 and June 2026, GeneDx’s share count rose 11.6%, meaning each existing share now represents a smaller piece of the company. Most of that rise came in the year to June 2025, before the burn began; the count rose about 4% in the latest year.
Debt expanded to $167 million in June 2026 from $117 million in June 2024. All of that increase occurred over the past year, rising from $114 million in June 2025. GeneDx therefore appears to have financed the latest year’s burn mostly with borrowed money.
What Has To Change At GeneDx
Management points to collections. On the fiscal Q2 2026 call, management said about 32% of claims for its outpatient genome tests were being paid, adding that it is confident it can raise that collection rate to the industry standard of 70%. The company also expects strong sustained cash generation by 2027, which is also still a forecast. Sales grew 11.4% in fiscal Q2 2026, compared with 45.6% in fiscal Q2 2025. When GeneDx next reports on or around October 26, 2026, the number to watch is the cash it burns each quarter, $39.1 million in fiscal Q2 2026.
How To Act On WGS?
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