Core Insights - Guardant Health, Inc. has announced a strategic partnership with PathGroup to expand the reach of its FDA-approved Shield blood test [1] Group 1 - The partnership will enable the Shield test to be available in over 250 hospitals and health systems [1] - More than 15,000 PathGroup-affiliated physicians across 25 states will be involved in the distribution of the Shield test [1]

Summary of Guardant Health (GH) FY Conference Call - August 13, 2025 Company Overview - **Company**: Guardant Health - **Industry**: Oncology diagnostics, specializing in liquid and tissue-based testing for cancer screening, therapy selection, and minimal residual disease (MRD) monitoring [2][3] Key Financial Highlights - **Clinical Volumes**: 30% year-over-year growth in oncology clinical volumes [3] - **Overall Revenue**: 31% year-over-year increase in total revenue [3] - **Average Selling Price (ASP)**: Tissue ASP increased from approximately $1,700 to $2,000, three years ahead of schedule [4][5] - **Gross Margin for Shield**: Achieved a gross margin of 48% in Q2, with a target cost per test of around $200 to potentially increase margins above 60% [15][17] Product Performance - **Tissue Testing**: Introduction of RNA features in tissue tests, contributing to ASP improvements and reimbursement from Medicare [6][7] - **Shield Product**: Expected to generate over $50 million in revenue with approximately 70,000 tests for the year; strong market pull and adoption exceeding internal expectations [11][12] - **Cost Reduction**: Significant reduction in cost per test for Shield from over $1,000 to below $500, with ongoing efforts to further decrease costs [14][15] Market Dynamics - **Colorectal Cancer (CRC) Screening**: Approximately 50 million people in the U.S. are unscreened; Guardant Health aims to convert a significant portion of this population through convenient blood tests [37][38] - **Market Share Potential**: The blood-based CRC screening market is substantial, with a doubling of screening rates observed when Shield tests are included in screening options [38][39] Future Developments - **Expansion Plans**: Plans to hire 250 sales representatives for Shield, increasing from a previous target of 200, with a long-term goal of 600-700 reps [19][20] - **Multi-Cancer Detection**: Shield is expected to evolve into a multi-cancer detection test, expanding beyond CRC to at least 10 different cancer types [24][36] - **Investor Day**: Upcoming Investor Day in late September 2025, anticipated to reveal new financial targets and updates on product performance [57][62] Competitive Landscape - **Market Position**: Guardant Health is positioned as a leader in the liquid biopsy market, with competitors showing lower sensitivity in their tests compared to Shield [34][35] - **Regulatory Engagement**: Positive discussions with ACS stakeholders regarding guideline inclusion for Shield, expected by the end of the year [40][46] Additional Insights - **AI Integration**: Guardant Health is leveraging AI in its applications, with a large dataset to enhance diagnostic capabilities [55][56] - **MRD Business Growth**: The Reveal MRD test is experiencing rapid growth, with significant demand in breast cancer monitoring [47][50] This summary encapsulates the key points discussed during the conference call, highlighting Guardant Health's strong performance, market opportunities, and future growth strategies.

Core Viewpoint - Gamehost Inc. reported positive financial results for the second quarter of 2025, with increases in operating revenue, EBITDA, and earnings per share, alongside a regular dividend declaration for shareholders [1][2][8]. Financial Performance - Operating revenue for the quarter increased by 2.3% to $20,771,100 compared to $20,303,500 in 2024 [2][6]. - EBITDA rose by 6.2% to $8,489,800 from $7,991,200 in the previous year [2][8]. - Earnings per share for the quarter were $0.25, up from $0.23 in 2024, reflecting a 12.6% increase [2][8]. Segment Performance - The hotel segment experienced double-digit growth, compensating for weaknesses in table holds during the quarter [2]. - Food and beverage sales also showed respectable growth, contributing positively to overall revenue [2]. Shareholder Returns - The company repurchased 198,100 common shares for a total of $2,194,200 and paid dividends amounting to $3,128,500 during the quarter [4]. - A monthly cash dividend of $0.05 per common share was declared for August 2025, equating to an annualized rate of $0.60 per share [8]. Market Context - Despite initial concerns regarding the impact of USA tariff proclamations, Alberta consumers continued to spend positively, favoring Canadian-made or local products [5]. - Federal and provincial governments are actively working to reduce interprovincial trade barriers, which may stimulate long-term investment decisions beneficial to Alberta [5].

Core Insights - Guardant Health reported Q2 2025 GAAP revenue of $232.1 million, surpassing analyst expectations of $211.5 million, and a Non-GAAP loss per share of ($0.44), better than the anticipated loss of ($0.73) per share, indicating strong growth momentum [1][2] Financial Performance - Revenue growth accelerated to 31% year over year, driven by increased customer adoption and higher reimbursement rates [5] - Non-GAAP gross margin improved to 66%, up from 60% a year earlier, reflecting better reimbursement and cost reductions [10] - Free cash flow improved to negative $65.9 million from negative $99.1 million in Q2 2024, attributed to timing differences in bonus payouts [11] Business Overview - Guardant Health specializes in blood- and tissue-based cancer tests for therapy selection, disease monitoring, and early screening, with flagship products including Guardant360, Guardant Reveal, and Shield [3] - The company focuses on innovation in oncology diagnostics, regulatory approvals, strategic partnerships, geographic expansion, and improving reimbursement landscapes [4] Segment Performance - Oncology segment revenue rose 22% to $158.7 million, with test volumes increasing by 30% year over year to nearly 64,000 [5] - Shield, the blood-based screening test for colorectal cancer, generated $14.8 million in revenue, with test volumes growing by 78% from the previous quarter [6] - The biopharma and data segment revenue reached $56.0 million, up 28% year over year, benefiting from increased research collaborations [7] Strategic Developments - Eleven new Smart Liquid Biopsy applications for Guardant360 were launched, enhancing clinical utility [8] - Shield received FDA Breakthrough Device Designation and was included in updated U.S. guidelines, supporting broader adoption [14] Outlook - Full-year 2025 revenue guidance was raised to $915–$925 million, reflecting strong momentum, with projected revenue growth of 24–25% year over year [15] - Gross margin targets increased to 63–64% for non-GAAP margin, with operating expenses expected to rise to $840–$850 million [16] - Free cash flow burn is projected at $225–$235 million, with expectations for the core business to reach free cash flow breakeven by Q4 2025 [16]

Core Insights - Guardant Health reported a revenue of $232.09 million for the quarter ended June 2025, reflecting a 31% increase year-over-year and surpassing the Zacks Consensus Estimate of $211.43 million by 9.77% [1] - The company’s EPS was -$0.44, an improvement from -$0.48 in the same quarter last year, with an EPS surprise of 15.38% against the consensus estimate of -$0.52 [1] Revenue Breakdown - Oncology revenue reached $158.69 million, exceeding the three-analyst average estimate of $153.38 million [4] - Licensing and other revenue was $2.57 million, surpassing the average estimate of $1.81 million from three analysts [4] - Screening revenue amounted to $14.81 million, significantly higher than the three-analyst average estimate of $8.31 million [4] - Biopharma and data revenue totaled $56.02 million, exceeding the average estimate of $48.06 million from three analysts [4] Stock Performance - Over the past month, shares of Guardant Health have declined by 14.6%, while the Zacks S&P 500 composite increased by 3.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Guardant Health (GH) came out with a quarterly loss of $0.44 per share versus the Zacks Consensus Estimate of a loss of $0.52. This compares to a loss of $0.48 per share a year ago. These figures are adjusted for non- recurring items. While Guardant Health has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earning ...

Financial Data and Key Metrics Changes - Q2 revenue grew 31% year over year to $232,100,000, driven by strong performance across oncology, biopharma, and screening businesses [8][28] - Non-GAAP gross profit increased by $47,000,000 or 44% year over year, with a non-GAAP gross margin of 66%, up from 60% in 2024 [35] - Adjusted EBITDA loss improved to $51,900,000 for Q2 2025, compared to a loss of $61,900,000 in Q2 2024 [37] Business Line Data and Key Metrics Changes - Oncology revenue increased 22% to $158,700,000, with volumes growing 30% year over year to approximately 64,000 tests [29][30] - Biopharma revenue reached a record $56,000,000, growing 28% year over year [32] - Shield testing revenue totaled $15,000,000 in Q2, driven by approximately 16,000 tests [20][33] Market Data and Key Metrics Changes - Guardant360 Liquid saw over 20% year-over-year volume growth for the fourth consecutive quarter [30] - Guardant360 tissue achieved an average selling price (ASP) of approximately $2,000, reaching the 2028 target three years ahead of schedule [31] - Shield ASP increased to over $900 in Q2, up from approximately $600 in Q1 [34][54] Company Strategy and Development Direction - The company is focused on expanding its commercial infrastructure, expecting to surpass 250 sales reps by year-end to support growth [21] - Shield is positioned as a multi-cancer detection platform, with ongoing efforts to broaden its impact across various cancer types [25][26] - The company aims to achieve cash flow breakeven by 2028, with a commitment to reducing cash burn each year [41][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the oncology business's durable growth, supported by CGP penetration and favorable ASP dynamics [18] - The company raised its full-year 2025 revenue guidance to $915,000,000 to $925,000,000, representing growth of approximately 24% to 25% compared to 2024 [39] - Management remains optimistic about the potential for Shield and its inclusion in national screening guidelines [23][81] Other Important Information - The company is actively working on the Shield V2 program, with ongoing developments and no specific timeline committed for data release [52][86] - The National Comprehensive Cancer Network (NCCN) updated its CRC screening guidelines to include Shield, enhancing its market position [23][24] Q&A Session Summary Question: Did you see any benefit from the New England Journal publication in Q2? - Management noted that the impact from the publication was minimal, with most growth attributed to product market fit and ongoing demand [46] Question: What is driving Shield's impressive growth? - Management highlighted strong demand from physicians, increased sales rep productivity, and the recent NCCN guideline update as key drivers [51][52] Question: Can you provide insights on the growth of Guardant360? - Management indicated broad-based growth, with increased utilization and significant share gains in the market [59][60] Question: What are the next steps for Shield to be marketed as an MSEAD test? - Management confirmed that Shield is operationally ready for patient testing and is not waiting for additional pivotal study readouts [66][67] Question: How confident is management about Reveal Medicare reimbursement? - Management expressed high confidence based on previous experiences and the speed of past approvals [78][80] Question: What is the timeline for Shield V2 data? - Management stated that the program is active, with ongoing work, but no specific timeline for data release was provided [86]

Financial Data and Key Metrics Changes - In Q2 2025, total revenue grew 31% year over year to $232.1 million, driven by strong performance across oncology, biopharma, and screening business lines [6][27][30] - Non-GAAP gross profit increased by $47 million or 44% year over year, with a non-GAAP gross margin of 66%, up from 60% in 2024 [34] - Adjusted EBITDA loss improved to $51.9 million, a $10 million improvement compared to Q2 2024 [36] Business Line Data and Key Metrics Changes - Oncology revenue increased 22% to $158.7 million, with volumes growing 30% year over year to approximately 64,000 tests [28][29] - Biopharma revenue reached a record $56 million, growing 28% year over year [30] - Screening revenue from Shield totaled $14.8 million, driven by approximately 16,000 tests [31] Market Data and Key Metrics Changes - Guardant360 Liquid ASP was in the range of $3,000 to $3,100, while Guardant360 Tissue ASP reached approximately $2,000, achieving the 2028 target three years ahead of schedule [29] - Shield ASP increased to over $900 in Q2, up from approximately $600 in Q1, driven by improved Medicare reimbursement rates [32][52] Company Strategy and Development Direction - The company is focused on expanding its oncology business through product innovation and commercial execution, particularly with Guardant360 Liquid and REVEAL [4][17] - Shield is positioned as a multi-cancer detection platform, with ongoing efforts to broaden its impact across various cancer types [24][25] - The company plans to reinvest incremental gross profit from Shield back into sales and marketing to accelerate commercial infrastructure [33][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow breakeven by 2028, with a commitment to reducing cash burn each year [39][90] - The company raised its full-year 2025 revenue guidance to a range of $915 million to $925 million, reflecting stronger than expected performance [37] - Management highlighted the positive reception of new product features and the potential for significant growth in the liquid biopsy market [45][59] Other Important Information - The company is actively working on the Shield V2 program, with expectations for data release and potential FDA approval by year-end [96][97] - The NCCN updated its CRC screening guidelines to include Shield, which is expected to enhance commercial coverage and patient access [21][21] Q&A Session Summary Question: Did the New England Journal publication benefit Guardant360 Liquid in Q2? - Management noted that while growth was strong, any impact from the publication was minimal, with significant growth expected upon drug approval [42][44] Question: What is driving Shield's impressive growth? - Management attributed the growth to strong market demand, increased sales rep productivity, and the recent NCCN guideline inclusion [47][49] Question: What are the next steps for Shield to be marketed as an MSEAD test? - Management confirmed that Shield is operationally ready for patient testing and is not waiting for additional studies to broaden access [62][64] Question: How confident is management about Reveal Medicare reimbursement? - Management expressed high confidence based on previous experiences with Medicare coverage processes [76][78] Question: What is the timeline for Shield V2 data? - Management indicated that while there may be slight delays, significant work is ongoing, and they are not rushed to meet the timeline [96][97]

PART I [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Guardant Health's unaudited financial statements for H1 2025 show a 26% revenue increase, a narrowed net loss, and a widening stockholders' deficit [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$1.33 billion** as of June 30, 2025, with liabilities slightly up and stockholders' deficit widening to **$305.5 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $629,143 | $525,540 | | Short-term marketable debt securities | $0 | $314,438 | | Total current assets | $883,432 | $1,055,114 | | Total Assets | $1,331,999 | $1,485,609 | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $238,430 | $225,583 | | Convertible senior notes, net | $1,115,526 | $1,142,547 | | Total Liabilities | $1,637,474 | $1,625,256 | | Total Stockholders' Deficit | $(305,475) | $(139,647) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue grew **31%** to **$232.1 million** with a net loss of **$99.9 million**, while H1 2025 revenue increased **26%** to **$435.6 million** with a narrowed net loss Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $232,088 | $177,235 | $435,559 | $345,726 | | Loss from operations | $(106,413) | $(100,618) | $(217,454) | $(200,301) | | Net loss | $(99,899) | $(102,628) | $(195,058) | $(217,613) | | Net loss per share | $(0.80) | $(0.84) | $(1.57) | $(1.78) | - Operating expenses increased across all categories, with sales and marketing showing the largest percentage increase (**46% YoY** for the quarter) to support the Shield product launch[15](index=15&type=chunk)[199](index=199&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to **$123.0 million** for H1 2025, with investing activities providing **$292.2 million**, resulting in a **$105.7 million** increase in total cash Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(122,974) | $(124,286) | | Net cash provided by investing activities | $292,215 | $22,989 | | Net cash (used in) provided by financing activities | $(65,226) | $4,824 | | Net increase (decrease) in cash | $105,725 | $(98,448) | - Financing activities in H1 2025 included a **$45.0 million** repurchase of treasury stock and **$12.3 million** in debt issuance costs, which were not present in H1 2024[28](index=28&type=chunk)[229](index=229&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the FDA approval and launch of the Shield blood test, a **$659.3 million** note exchange yielding a **$13.7 million** gain, and ongoing significant legal proceedings - The Shield blood test for colorectal cancer screening received FDA approval in **July 2024**, became commercially available in **August 2024**, and was included in NCCN screening guidelines in **June 2025**[32](index=32&type=chunk) Revenue Disaggregation (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Oncology | $158,685 | $130,269 | $309,244 | $256,017 | | Biopharma and data | $56,020 | $43,933 | $101,396 | $81,520 | | Screening | $14,814 | $0 | $20,491 | $0 | | Licensing and other | $2,569 | $3,033 | $4,428 | $8,189 | | **Total revenue** | **$232,088** | **$177,235** | **$435,559** | **$345,726** | - In February 2025, the company exchanged **$659.3 million** of its 2027 Notes for **$600.0 million** of new 1.25% Convertible Senior Notes due 2031, recognizing a **$13.7 million** gain on extinguishment[99](index=99&type=chunk) - A jury awarded the company **$292.5 million** (affirmed at **$287.0 million**) in its false advertising lawsuit against Natera. The company is also defending against patent infringement claims from TwinStrand, Tempus, and CSHL[122](index=122&type=chunk)[123](index=123&type=chunk)[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial performance, noting a **31%** revenue increase to **$232.1 million**, rising operating expenses, a **$99.9 million** net loss, and sufficient liquidity for over 12 months [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 total revenue increased **31%** to **$232.1 million**, driven by growth across all segments, while operating expenses rose **22%**, and H1 2025 net loss narrowed due to a debt extinguishment gain Quarterly Revenue Comparison (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Oncology | $158,685 | $130,269 | $28,416 | 22% | | Biopharma and data | $56,020 | $43,933 | $12,087 | 28% | | Screening | $14,814 | $0 | $14,814 | N/A | | **Total revenue** | **$232,088** | **$177,235** | **$54,853** | **31%** | - Oncology test volume increased to approximately **64,000** in Q2 2025 from **49,400** in Q2 2024[194](index=194&type=chunk) Quarterly Operating Expense Comparison (in thousands) | Expense Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of revenue | $81,205 | $72,421 | $8,784 | 12% | | Research and development | $87,449 | $83,102 | $4,347 | 5% | | Sales and marketing | $119,588 | $81,867 | $37,721 | 46% | | General and administrative | $50,259 | $40,463 | $9,796 | 24% | - Other income (expense), net, was a **$7.8 million** income for H1 2025, primarily due to a **$13.7 million** gain on debt extinguishment, compared to a **$44.3 million** expense in H1 2024 which was driven by unrealized losses on an equity investment[217](index=217&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held **$735.5 million** in cash, with management deeming it sufficient for over 12 months of operations despite a **$2.8 billion** accumulated deficit - The company has an accumulated deficit of **$2.8 billion** as of June 30, 2025[219](index=219&type=chunk) - Cash, cash equivalents and restricted cash totaled **$735.5 million** as of June 30, 2025[220](index=220&type=chunk) - In August 2024, the company established an at-the-market (ATM) offering program to sell up to **$400.0 million** of common stock, but no shares have been sold as of June 30, 2025[223](index=223&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate changes on its **$735.5 million** portfolio and foreign currency fluctuations, though management deems their impact immaterial - Primary market risks are interest rate risk on its **$735.5 million** cash and investment portfolio and foreign currency risk from international expansion[235](index=235&type=chunk)[236](index=236&type=chunk) - A hypothetical **100 basis point** change in interest rates would have an immaterial impact on the fair value of investments[235](index=235&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The Co-CEOs and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[237](index=237&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[238](index=238&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference detailed legal proceedings from Note 8, including ongoing patent litigation and a significant false advertising verdict - Information regarding legal proceedings is incorporated by reference from Note 8 to the condensed consolidated financial statements[240](index=240&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the company's previously disclosed risk factors during Q2 2025, with investors referred to the Annual Report on Form 10-K - There were no material changes to the company's previously disclosed risk factors during the second quarter of fiscal 2025[241](index=241&type=chunk) [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[246](index=246&type=chunk)

Financial Performance - Total revenue for Q2 2025 reached $232.1 million, a 31% increase compared to $177.2 million in Q2 2024[7, 40] - Oncology revenue grew by 22% year-over-year, reaching $158.7 million in Q2 2025, up from $130.3 million in Q2 2024[10, 40] - Biopharma & Data revenue experienced a 28% year-over-year growth, totaling $56 million in Q2 2025 compared to $44 million in Q2 2024[7, 29, 40] - Screening revenue for Q2 2025 was $14.8 million[7, 32, 40] - The company is raising revenue guidance for the full year 2025 to $915 million - $925 million, representing a 24%-25% year-over-year growth[48] Oncology Business - Oncology volume grew by 30% year-over-year[10] - Guardant360 Tissue ASP increased to approximately $2,000, achieving the company's 2028 target ahead of schedule[12] - Reveal identified that 63% of patients with detectable ctDNA experienced recurrence within three years, compared to 15% of those without detectable ctDNA[25] Screening Business - Shield's Q2 2025 revenue reached $15 million[32] - Shield volume in Q2 2025 was 16,000[32] - Shield non-GAAP gross margin improved significantly, reaching 48% in Q1 2025 and 18% in Q4 2024, and 2% in Q2 2025[42]