Guardant Health(US:GH)2025-10-29 21:13Revenue 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]