GeneDx Holdings Corp (WGS) stock surged over 25% in pre-market trading on Tuesday, following the company's robust fourth-quarter 2024 results and upbeat fiscal 2025 revenue guidance.

For the fourth quarter of 2024, GeneDx reported revenue of $95.3 million, significantly exceeding analysts' estimates of $82.23 million. The strong revenue growth was primarily driven by a 101% year-over-year increase in exome and genome test revenue to $78.8 million.

The company's adjusted net income for the quarter stood at $16.8 million, substantially higher than analysts' expectations of $2.9 million. GeneDx's adjusted gross margin expanded to 70%, up from 56% in the prior-year quarter, reflecting the company's operational efficiencies and increasing contribution from higher-margin exome and genome testing.

Looking ahead, GeneDx provided an optimistic revenue guidance for the full year 2025, forecasting revenues in the range of $350 million to $360 million. This guidance exceeds analysts' consensus estimate of $338.8 million and represents growth in exome/genome volume and revenue of at least 30% compared to 2024.

The company's strong performance and robust outlook can be attributed to several factors, including the growing adoption of exome and genome sequencing by state Medicaid programs, the launch of new products like ultraRapid Whole Genome Sequencing, and strategic partnerships to expand its reach and capabilities.