Guardant Health(US:GH)2025-07-30 20:08Overview and Key Highlights Guardant Health reported strong Q2 2025 results with 31% revenue growth, raising full-year guidance and achieving key operational milestones - The company raised its 2025 revenue guidance to a range of $915 million to $925 million, representing 24% to 25% annual growth1 - Co-CEO Helmy Eltoukhy highlighted that Guardant360 Liquid's year-over-year growth accelerated for the fourth consecutive quarter, bolstered by the introduction of 11 new Smart Liquid Biopsy applications3 - Co-CEO AmirAli Talasaz noted that the Shield screening test showed strong demand, with volume, revenue, and gross profit exceeding expectations in its third full quarter post-launch3 - Significant operational milestones include the Shield test's inclusion in NCCN colorectal cancer screening guidelines and the Shield Multi-Cancer Detection (MCD) test receiving FDA Breakthrough Device Designation5 Q2 2025 Financial Performance Q2 2025 saw 31% revenue growth to $232.1 million, improved gross margins, and reduced net losses, with better free cash flow Q2 2025 Key Financial Metrics (vs. Q2 2024) | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $232.1M | $177.2M | +31% | | Gross Profit (GAAP) | $150.9M | $104.8M | +44% | | Gross Margin (GAAP) | 65% | 59% | +6 p.p. | | Non-GAAP Gross Margin | 66% | 60% | +6 p.p. | | Net Loss (GAAP) | $(99.9)M | $(102.6)M | Improved | | Net Loss per Share (GAAP) | $(0.80) | $(0.84) | Improved | | Non-GAAP Net Loss | $(55.0)M | $(58.5)M | Improved | | Adjusted EBITDA | $(51.9)M | $(61.9)M | Improved | | Free Cash Flow | $(65.9)M | $(99.1)M | Improved | - Operating expenses increased to $257.3 million from $205.4 million year-over-year, primarily due to commercial team expansion and marketing activities for the Shield product launch8 - As of June 30, 2025, the company had cash, cash equivalents, and restricted cash totaling $735.5 million11 Business Segment Performance All business segments showed strong Q2 2025 growth, with Oncology revenue up 22%, Screening generating $14.8 million, and Biopharma & Data up 28% Q2 2025 Revenue by Segment (vs. Q2 2024) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | YoY Growth | | :--- | :--- | :--- | :--- | | Oncology | $158.7M | $130.3M | +22% | | Screening | $14.8M | $0 | N/A | | Biopharma & Data | $56.0M | $43.9M | +28% | | Licensing and other | $2.6M | $3.0M | -13% | | Total Revenue | $232.1M | $177.2M | +31% | - Oncology test volume (Guardant360 Liquid & Tissue, Reveal, Response) grew 30% over the prior year period, reaching approximately 64,000 tests45 - The Screening segment, in its third full quarter of commercial launch, generated $14.8 million from approximately 16,000 Shield tests45 Updated 2025 Full-Year Guidance Guardant Health significantly raised its full-year 2025 revenue guidance to $915-$925 million and improved non-GAAP gross margin forecasts Full-Year 2025 Guidance Update | Metric | New 2025 Guidance | Prior 2025 Guidance | | :--- | :--- | :--- | | Total Revenue | $915M - $925M | $880M - $890M | | Non-GAAP Gross Margin | 63% - 64% | 62% - 63% | | Non-GAAP OpEx | $840M - $850M | $830M - $840M | | Free Cash Flow Burn | $225M - $235M | Unchanged | Full-Year 2025 Revenue Guidance by Segment | Segment | New 2025 Guidance | Prior 2025 Guidance | | :--- | :--- | :--- | | Oncology Revenue Growth | ~20% | ~18% | | Screening Revenue | $55M - $60M | $40M - $45M | | Biopharma & Data Growth | Mid-teens | Low double-digits | - The company continues to expect the business, excluding the Screening segment, to achieve free cash flow breakeven in the fourth quarter of 202512 Financial Statements and Reconciliations This section presents unaudited Q2 2025 financial statements, including statements of operations, balance sheets, and GAAP to non-GAAP reconciliations Condensed Consolidated Statements of Operations Q2 2025 statements show revenue of $232.1 million, an operating loss of $106.4 million, and a net loss of $99.9 million Condensed Consolidated Statements of Operations (in thousands) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $232,088 | $177,235 | | Cost of revenue | $81,205 | $72,421 | | Loss from operations | $(106,413) | $(100,618) | | Net loss | $(99,899) | $(102,628) | | Net loss per share | $(0.80) | $(0.84) | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $1.33 billion, with $629.1 million in cash and $1.64 billion in total liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $629,143 | $525,540 | | Total Assets | $1,331,999 | $1,485,609 | | Total Liabilities | $1,637,474 | $1,625,256 | | Total Stockholders' Deficit | $(305,475) | $(139,647) | Supplemental Revenue Information This section details Q2 2025 revenue by source, with Oncology contributing $158.7 million and Screening $14.8 million Revenue by Source - Three Months Ended June 30 (in thousands) | Source | 2025 | 2024 | | :--- | :--- | :--- | | Oncology | $158,685 | $130,269 | | Biopharma and data | $56,020 | $43,933 | | Screening | $14,814 | — | | Licensing and other | $2,569 | $3,033 | | Total revenue | $232,088 | $177,235 | Reconciliation of GAAP to Non-GAAP Measures This section reconciles GAAP net loss to non-GAAP net loss and Adjusted EBITDA, adjusting for non-cash items Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (Q2, in thousands) | Description | 2025 | 2024 | | :--- | :--- | :--- | | GAAP net loss | $(99,899) | $(102,628) | | Stock-based compensation | $43,602 | $27,725 | | Unrealized losses on securities | — | $15,485 | | Other adjustments | $1,293 | $962 | | Non-GAAP net loss | $(55,004) | $(58,456) | Reconciliation of GAAP Net Loss to Adjusted EBITDA (Q2, in thousands) | Description | 2025 | 2024 | | :--- | :--- | :--- | | GAAP net loss | $(99,899) | $(102,628) | | Adjustments (Net Interest, Taxes, D&A, etc.) | $48,007 | $40,768 | | Adjusted EBITDA | $(51,892) | $(61,860) |