Forensic Analysis · Healthcare Providers & Services · as of Nov 9, 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
Distress distance
Clean
Earnings quality
4
Forensic signals
-7.6%
ROE
40.0%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
GeneDx Holdings Corp. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -5.2, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by receivables vs revenue.
What the filings flag
63d DSO
FY2024→FY2025
Receivables 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. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 3 consecutive quarters (Dec 2025 +20, Mar 2026 +20, Jun 2026 +24 days). In the latest of them the receivable balance grew +74% against sales +11%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid. There's no FY2023 figure on file for receivables, so FY2024 has no opening balance to average against — both figures are measured on period-end balances rather than the beginning-plus-ending average, since averaging only the current year would make the move track balance-sheet growth rather than the business.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
-3.5%
FY2025
Return on invested capital.Return on invested capital is -3.5% in the latest fiscal year and rising across FY2023–FY2025 from -54.7%. After-tax operating profit was ($143M) in FY2023 and ($10M) in FY2025, with operating income at -89.2% of revenue in FY2023, -7.6% in FY2024 and -3.1% in FY2025. The capital base behind it grew +14% across FY2023–FY2025, from $261M to $297M, and the return did not fall doing it, so the dollars added over that window earned at least the -54.7% the older base was already earning. $61M of the $297M base at FY2025 is short-term investments (20.6%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so the loss on the operating capital is larger than this rate shows.
+8.5%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +18% over the last 2 years to FY2025 (+8.5%/yr). The count is growing — 24.3M shares in FY2023, 28.6M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~8.5% 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 FY2023 has been diluted ~15%.
8% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 8% of revenue and 226% of free cash flow in FY2025 — about $1.12 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 8.5% a year across FY2023–FY2025, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$427.5M
Revenue Growth YoY+40.0%
Revenue CAGR (2yr)+45.3%
Net Margin-4.9%
Free Cash Flow$14.3M
Return on Equity-7.6%
Debt / Equity0.17x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from GeneDx Holdings Corp.'s actual 10-K/10-Q/8-K filings?