We feel now is a pretty good time to analyse GeneDx Holdings Corp.'s (NASDAQ:WGS) business as it appears the company may be on the cusp of a considerable accomplishment. GeneDx Holdings Corp., a genomics company, provides personalized and actionable health insights to inform diagnosis, direct treatment, and improve drug discovery. The US$2.1b market-cap company’s loss lessened since it announced a US$176m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$83m, as it approaches breakeven. The most pressing concern for investors is GeneDx Holdings' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for GeneDx Holdings

Consensus from 6 of the American Healthcare analysts is that GeneDx Holdings is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$15m in 2026. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 94%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of GeneDx Holdings' upcoming projects, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 25% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of GeneDx Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – GeneDx Holdings' company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Historical Track Record: What has GeneDx Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on GeneDx Holdings' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.