Core Insights - Guardant Health reported a revenue of $265.2 million for the quarter ended September 2025, reflecting a year-over-year increase of 38.5% [1] - The earnings per share (EPS) was -$0.39, an improvement from -$0.45 in the same quarter last year, with an EPS surprise of +18.75% compared to the consensus estimate of -$0.48 [1] - The revenue exceeded the Zacks Consensus Estimate of $234.58 million by 13.05% [1] Financial Performance Metrics - Total oncology tests performed reached 74,000, surpassing the average estimate of 66,824 by three analysts [4] - Revenue from oncology was $184.4 million, exceeding the average estimate of $164.62 million from four analysts [4] - Revenue from biopharma and data was $54.73 million, compared to the average estimate of $48.38 million [4] - Revenue from screening was $24.11 million, significantly higher than the estimated $16.31 million [4] - Revenue from licensing and other sources was $1.95 million, slightly below the average estimate of $2.35 million [4] Stock Performance - Guardant Health's shares have returned +11.4% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Guardant Health reported a quarterly loss of $0.39 per share, better than the Zacks Consensus Estimate of a loss of $0.48, and improved from a loss of $0.45 per share a year ago, resulting in an earnings surprise of +18.75% [1] - The company achieved revenues of $265.2 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 13.05% and showing a significant increase from $191.48 million in the same quarter last year [2] - Guardant Health's stock has increased by approximately 127.8% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] Financial Performance - Over the last four quarters, Guardant Health has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.46 on revenues of $251.41 million, and for the current fiscal year, it is -$1.84 on revenues of $921.37 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Guardant Health belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Guardant Health (NasdaqGS:GH) Q3 2025 Earnings Call October 29, 2025 04:30 PM ET Company ParticipantsDan Arias - Managing DirectorDerek Bertocci - CFOAmirAli Talasaz - co-CEOPatrick Donnelly - Managing Director of Equity ResearchHelmy Eltoukhy - co-CEOBradley Bowers - Equity Research Senior AssociateLuke Sergott - Director of Healthcare Equity ResearchMike Bell - CFOCasey Woodring - VP of Equity ResearchConference Call ParticipantsDaniel Brennan - Senior Equity Research AnalystDoug Schenkel - Managing Direc ...

Guardant Health (NasdaqGS:GH) Q3 2025 Earnings Call October 29, 2025 04:30 PM ET Speaker2Good afternoon. Thank you for attending the Guardant Health Q3 2025 earnings call. My name is Cameron, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. During the Q&A session, we ask that you please limit yours ...

Revenue Performance - Revenue for the three months ended September 30, 2025, was $265,196,000, representing a 38.5% increase from $191,476,000 in the same period of 2024[15] - Total revenue for the three months ended September 30, 2025, was $265.2 million, a 38.5% increase from $191.5 million in the same period of 2024[157] - Revenue from the United States was $249.4 million, representing a 38.4% increase compared to $180.1 million in the same period last year[158] - International revenue increased to $15.8 million in Q3 2025, up 38.5% from $11.4 million in Q3 2024[158] - For the nine months ended September 30, 2025, total revenue was $700.8 million, a 30.4% increase from $537.2 million in the same period of 2024[158] Net Loss and Financial Improvement - Net loss for the three months ended September 30, 2025, was $92,725,000, compared to a net loss of $107,754,000 for the same period in 2024, indicating an improvement of 14.5%[15] - The company reported a loss from operations of $98,989,000 for the three months ended September 30, 2025, compared to a loss of $117,328,000 for the same period in 2024, showing a 15.5% improvement[15] - For the nine months ended September 30, 2025, the net loss was $287.8 million, a decrease from a net loss of $325.4 million for the same period in 2024, representing a 11.5% improvement[27] Assets and Liabilities - Total current assets decreased to $828,885,000 as of September 30, 2025, down from $1,055,114,000 as of December 31, 2024, a decline of 21.4%[13] - Total liabilities increased slightly to $1,631,259,000 as of September 30, 2025, compared to $1,625,256,000 as of December 31, 2024[13] - Total stockholders' deficit increased to $354,473,000 as of September 30, 2025, from $139,647,000 as of December 31, 2024[13] - Cash and cash equivalents increased to $580,013,000 as of September 30, 2025, from $525,540,000 as of December 31, 2024, an increase of 10.3%[13] - Total cash, cash equivalents, and restricted cash at the end of September 2025 was $689.5 million, compared to $688.4 million at the end of September 2024, showing a slight increase[27] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $265,927,000, up from $254,210,000 in the same period of 2024, reflecting a 4.3% increase[15] - Research and development expenses for the three months ended September 30, 2025, were $75.8 million, up from $68.4 million in 2024, reflecting a 6.5% increase[157] Stock-Based Compensation - The company reported stock-based compensation of $123.0 million for the nine months ended September 30, 2025, up from $104.0 million in the same period of 2024, indicating a 18.3% increase[27] - For the three months ended September 30, 2025, total stock-based compensation expense was $42.8 million, a decrease of 14% from $49.8 million in the same period of 2024[140] - Stock-based compensation recorded for performance stock units (PSUs) was $4.9 million for the three months ended September 30, 2025, down from $22.7 million in 2024[138] - Future stock-based compensation for unvested restricted stock units as of September 30, 2025, was $192.8 million, expected to be recognized over 2.0 years[135] Legal and Regulatory Matters - In October 2023, the District Court dismissed with prejudice TwinStrand's infringement claims related to certain patents[119] - The jury awarded TwinStrand Biosciences and the University of Washington $83.4 million in damages, representing a 6% royalty on past sales due to willful patent infringement[120] - The Company filed a patent infringement suit against Tempus AI, Inc., seeking an injunction and compensatory damages for alleged infringement of five patents[121] - The Company was awarded $292.5 million in a lawsuit against Natera for false advertising, including $175.5 million in punitive damages[124] Future Obligations and Commitments - The Company has future principal contractual obligations for operating lease commitments totaling $245.7 million as of September 30, 2025[115] - The weighted-average remaining lease term was 6.9 years as of September 30, 2025[115] Financial Instruments and Debt - The 2027 Notes, with a principal amount of $1.15 billion, will mature on November 15, 2027, and do not bear interest[93] - The 2031 Notes, issued in February 2025, bear interest at a rate of 1.25% per annum and will mature on February 15, 2031[100] - The Company recognized total interest expenses of $943,000 for the three months ended September 30, 2025, and $2.7 million for the nine months ended September 30, 2025[107] - The effective interest rate for the 2031 Notes was 0.4% for the three months ended September 30, 2025[107] Customer and Revenue Concentration - Revenue from significant customers, including Customer B, represented 29% of total revenue for the three months ended September 30, 2025[43] - The Company has not experienced any material losses related to accounts receivable from individual customers or groups of customers[42]

Financial Performance - Total revenue increased to $265.2 million, a 39% increase compared to $191.5 million in Q3 2024 [8, 43] - Oncology revenue grew to $184.4 million, a 31% year-over-year increase from $141.2 million in Q3 2024 [8, 10, 43] - Biopharma & Data revenue reached $54.7 million, an 18% year-over-year increase from $46.5 million in Q3 2024 [8, 28, 43] - Screening revenue was $24.1 million compared to $1.0 million in Q3 2024 [8, 43] - The company is raising revenue guidance for the full year 2025 to $965 million - $970 million, representing approximately 31% year-over-year growth [48] Oncology Business - Oncology volume grew by 40% year-over-year, driven by strong performance across all products [10, 17] - Guardant360 volume growth exceeded 30% year-over-year [17] Screening Business (Shield) - Shield revenue reached $24 million in Q3 2025 [33] - Shield volume increased to 24,000 in Q3 2025 [33] - The company expects 80,000 - 82,000 Shield volume for the full year [48] Biopharma & Data - Two new CDx approvals were obtained in Q3, bringing the total to 23 approvals for Guardant360 CDx [29, 30] Gross Margin - Non-GAAP gross margin increased to 66% in Q3 2025, up from 63% in Q3 2024 [45, 46]

Revenue Performance - Revenue for Q3 2025 was $265.2 million, a 39% increase from $191.5 million in Q3 2024[4] - Total revenue for Q3 2025 reached $265.196 million, a 38.6% increase from $191.476 million in Q3 2024[28] - Oncology revenue grew 31% to $184.4 million, driven by a 40% increase in test volume[4][6] - Oncology revenue for Q3 2025 was $184.402 million, up 30.6% from $141.197 million in Q3 2024[28] - Screening revenue reached $24.1 million, primarily from approximately 24,000 Shield tests[4][6] - Biopharma and Data revenue increased by 18% to $54.7 million, attributed to milestone achievements[4][6] - Biopharma and data revenue increased to $54.731 million in Q3 2025, compared to $46.547 million in Q3 2024, reflecting a growth of 17.5%[28] Profitability and Margins - Gross profit was $171.6 million, with a gross margin of 65%, up from 61% in the prior year[5][6] - Non-GAAP gross margin for Q3 2025 was 66%, compared to 63% in Q3 2024[7][6] - Net loss for Q3 2025 was $92.7 million, an improvement from a net loss of $107.8 million in Q3 2024[9] - GAAP net loss for Q3 2025 was $92.725 million, an improvement from a net loss of $107.754 million in Q3 2024[31] - Non-GAAP net loss per share for Q3 2025 was $0.39, compared to $0.45 in Q3 2024[31] Cash Flow and Financial Position - Free cash flow for Q3 2025 was $(45.8) million, compared to $(55.3) million in the same period last year[11] - Free cash flow for Q3 2025 was $(45.763) million, a decrease from $(55.258) million in Q3 2024[35] - Cash and cash equivalents increased to $580.013 million as of September 30, 2025, up from $525.540 million at the end of 2024[26] - Total assets decreased to $1,276.786 million as of September 30, 2025, down from $1,485.609 million at the end of 2024[26] - Total liabilities slightly increased to $1,631.259 million as of September 30, 2025, compared to $1,625.256 million at the end of 2024[26] - Total stockholders' deficit widened to $(354.473) million as of September 30, 2025, compared to $(139.647) million at the end of 2024[26] Guidance and Future Outlook - The company raised its 2025 revenue guidance to $965 to $970 million, reflecting a year-over-year growth of approximately 31%[1][12] - Operating expenses for Q3 2025 were $270.6 million, up from $234.3 million in the prior year, mainly due to commercial team expansion[8]

Core Insights - Guardant Health and Zephyr AI have formed a strategic partnership aimed at enhancing biopharmaceutical innovation through the integration of multimodal molecular data and AI/ML technology [1] Company Overview - Guardant Health is recognized as a leading precision oncology company, focusing on advanced cancer detection and treatment [1] - Zephyr AI specializes in precision medicine, utilizing artificial intelligence to expedite drug development processes [1] Partnership Details - The collaboration will leverage the unique capabilities of both companies to provide novel, scalable, and actionable insights [1] - The partnership is expected to drive advancements in biopharmaceutical innovation by combining resources and expertise from both organizations [1]

Core Insights - Guardant Health, Inc. is set to present data on the importance of blood-based testing in enhancing cancer screening adherence at the ACG 2025 Annual Meeting [1] Company Overview - Guardant Health is recognized as a leading precision oncology company [1] Event Details - The presentation will take place during the American College of Gastroenterology (ACG) 2025 Annual Meeting in Phoenix, Arizona, from October 24 to October 29, 2025 [1]

Group 1 - Guardant Health is recognized as a leading player in colon cancer screening, utilizing an alternative to traditional colonoscopy methods [1][4] - The company's stock has recently broken out of a cup base, indicating strong market interest and potential for growth [2][4] - Guardant Health's stock has experienced a significant rally, increasing by 31% over the past month [1][4] Group 2 - The company ranks No. 34 on the IBD 50 list, highlighting its prominence among growth stocks [1] - Guardant Health has achieved a Relative Strength Rating (RS Rating) of 92, showcasing its strong performance relative to other stocks [4] - The stock is currently in focus as it approaches a buy point, indicating potential investment opportunities [4]