Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026

GeneDx Holdings Corp. (WGS)

A forensic read on GeneDx Holdings Corp. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

D · Weak — demands caution

Forensic grade

Distress

Financial health

-5.2

Altman Z-score

Clean

Earnings quality

Forensic signals

-27.5%

ROE

$2.1B

Market cap

GeneDx Holdings Corp. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -5.2, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by receivables vs revenue.

What the filings flag

63d DSOReceivables vs revenue. Days sales outstanding moved from 45 to 63 days FY2024→FY2025 (receivables +98% vs revenue +40%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.

-3%Return on invested capital. Return on invested capital is -3% and rising from -232% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.

+59.9%/yrShare-count dilution. Diluted share count changed +180% over the last 3 years to FY2025 (+59.9%/yr). The count is GROWING — existing holders are being diluted. That's ~59.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~180%.

8% of revStock-based comp load. Stock-based compensation ran 8% of revenue and 226% of free cash flow in FY2025 — about $1.12 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.

+18.2%Accruals ratio. Net operating assets grew +18.2% relative to their average in FY2025 — the accrual component of earnings. Accruals are building faster than is comfortable — part of profit sits in receivables, inventory or capitalized costs rather than cash. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -23% of net operating assets.

$174MGoodwill impairments. Took $174M of goodwill writedowns across 1 year(s) (FY2022 ($174M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.

Key fundamentals

Net Margin-4.9%

Debt / Equity0.17x

Free Cash Flow$14.3M

Latest Revenue$427.5M

Return on Equity-6.8%

Revenue Growth YoY+40.0%

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Data from SEC EDGAR public filings · metrics as of Jun 27, 2026. Forensic signals flag probability, not certainty.