Guardant Health (GH) Q2 Revenue Up 31%

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]