GeneDx's Q2 2025: Unpacking Contradictions in Revenue Metrics, Medicaid Impact, and NICU Expansion

Denial rate and payment rates improvement, newborn screening revenue timeline, NICU expansion and Epic integration impact, Medicaid impact and state coverage, and denial and payment rates improvement are the key contradictions discussed in GeneDx's latest 2025Q2 earnings call.



Revenue and Volume Growth:
- GeneDx reported record revenue of $102.7 million for Q2 2025, a 49% year-over-year increase, with $85.9 million from exome and genome, up 69% from the same quarter last year.
- The growth was driven by strong performance in the core business and strategic expansion into new indications and markets like cerebral palsy and the NICU.

Improved Reimbursement Rates and Revenue Cycle Management:
- Exome and genome average reimbursement rate increased to over $3,700 per test, up from approximately $3,400 last quarter.
- This improvement is attributed to better documentation compliance and increased state Medicaid coverage, now up to 35 states covering exome and genome on an outpatient basis.

Epic Aura Integrations and NICU Market Development:
- GeneDx has integrated with 3 health systems using Epic Aura, with plans to have 12 hospitals on board by year-end, performing thousands of tests.
- The NICU market represents a significant opportunity, with only 5% of infants currently receiving genetic tests, and GeneDx is positioned to scale through enterprise sales and seamless testing delivery.

Pediatric Market Expansion:
- GeneDx is focused on expanding into the general pediatrics market, with plans to engage pediatricians through AAP meetings and continuing medical education to increase adoption of exome and genome testing.
- The company aims to capture a significant share of the 600,000 children who could benefit from testing, starting with the 25,000 pediatricians diagnosing patients with intellectual disabilities.