Guardant Health Reports Third Quarter 2025 Financial Results and Increases 2025 Revenue Guidance
PALO ALTO, Calif.--( BUSINESS WIRE)--Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, today reported financial results for the quarter ended September 30, 2025.
Third Quarter 2025 Financial Highlights
For the three-month period ended September 30, 2025, as compared to the same period of 2024:
Recent Operating Highlights
“This was an exceptional quarter for Guardant with broad-based growth across our business,” said Helmy Eltoukhy, co-founder and co-CEO. “Oncology volumes grew 40% year-over-year, driven by very strong performance across all products, including the fifth consecutive quarter of accelerating Guardant360 Liquid volume growth. Notably, this quarter we crossed over $1 billion in annualized revenue. This sets us up well to deliver on the long-term plan we presented at our Investor Day last month.”
“We made incredible progress in Screening in the third quarter. It has been very rewarding to see Shield take off and hear story after story of patients positively impacted by this pioneering test. To support the growing demand, we have accelerated our commercial infrastructure build out and established strategic collaborations with Quest Diagnostics and PathGroup to help rapidly broaden access to Shield throughout the country,” said AmirAli Talasaz, co-founder and co-CEO. “Beyond CRC screening, I’m pleased to share that we have now expanded Shield to include multi-cancer detection nationwide through our clinical data initiative, bringing this important innovation to a broader population.”
Third Quarter 2025 Financial Results
Revenue was $265.2 million for the third quarter of 2025, a 39% increase from $191.5 million for the corresponding prior year period. Oncology revenue grew 31% to $184.4 million for the third quarter of 2025, from $141.2 million for the corresponding prior year period, driven primarily by an increase in Oncology test volume (Guardant360 Liquid, Tissue, and Reveal), which grew 40% over the prior year period. Screening revenue was $24.1 million for the third quarter of 2025, primarily generated from approximately 24,000 Shield tests. Biopharma and Data revenue grew 18% to $54.7 million for the third quarter of 2025, from $46.5 million for the corresponding prior year period, driven primarily by the achievement of certain milestones of our service agreements. Licensing and other revenue was $2.0 million for the third quarter of 2025, compared to $2.7 million for the corresponding prior year period.
Gross profit, or total revenue less cost of revenue, was $171.6 million for the third quarter of 2025, an increase of $54.6 million from $117.0 million for the corresponding prior year period. Gross margin, or gross profit divided by total revenue, was 65%, as compared to 61% for the corresponding prior year period.
Non-GAAP gross profit was $174.3 million for the third quarter of 2025, an increase of $53.3 million or 44%, from $121.1 million for the corresponding prior year period. Non-GAAP gross margin was 66% for the third quarter of 2025, as compared to 63% for the corresponding prior year period.
Operating expenses were $270.6 million for the third quarter of 2025, as compared to $234.3 million for the corresponding prior year period. Non-GAAP operating expenses were $228.9 million for the third quarter of 2025, as compared to $187.3 million for the corresponding prior year period. The year-over-year increase in both operating expenses and non-GAAP operating expenses was primarily related to commercial team expansion and marketing activities to support the Shield product launch and existing product growth.
Net loss was $92.7 million for the third quarter of 2025, as compared to $107.8 million for the corresponding prior year period. Net loss per share was $0.74 for the third quarter of 2025, as compared to $0.88 for the corresponding prior year period.
Non-GAAP net loss was $48.3 million for the third quarter of 2025, as compared to $55.0 million for the corresponding prior year period. Non-GAAP net loss per share was $0.39 for the third quarter of 2025, as compared to $0.45 for the corresponding prior year period.
Adjusted EBITDA loss was $45.5 million for the third quarter of 2025, as compared to a $56.2 million loss for the corresponding prior year period.
Free cash flow for the third quarter of 2025 was $(45.8) million, as compared to $(55.3) million for the corresponding prior year period. Cash, cash equivalents, and restricted cash were $689.5 million as of September 30, 2025.
2025 Guidance
Guardant Health now expects full year 2025 revenue to be in the range of $965 to $970 million, representing growth of approximately 31% compared to full year 2024. This compares to the prior range of $915 to $925 million, representing annual growth of 24% to 25%.
Within this revenue range:
Guardant Health now expects full year 2025 non-GAAP gross margin to be in the range of 64% to 65%, an improvement compared to prior expectations of 63% to 64%. Guardant Health now expects total non-GAAP operating expenses to be in the range of $865 to $875 million, an increase compared to the prior range of $840 to $850 million due to the continued investment in commercial team expansion and marketing activities to support the Shield product launch and existing product growth. Guardant Health continues to expect free cash flow burn to be in the range of $225 to $235 million, an improvement compared to $275 million for the full year 2024.
Webcast Information
Guardant Health will host a conference call to discuss the third quarter 2025 financial results after market close on Wednesday, October 29, 2025 at 1:30 pm Pacific Time / 4:30 pm Eastern Time. A webcast of the conference call can be accessed at http://investors.guardanthealth.com. The webcast will be archived and available for replay for at least 90 days after the event.
Non-GAAP Measures
Guardant Health has presented in this release certain financial information in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and also on a non-GAAP basis, including non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP research and development expense, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share, basic and diluted, adjusted EBITDA, and free cash flow.
We define our non-GAAP measures as the applicable GAAP measure adjusted for the impacts of stock-based compensation and related employer payroll tax payments, contingent consideration, amortization of intangible assets, unrealized and realized losses on marketable equity securities, impairment of non-marketable equity securities, gain on extinguishment of convertible notes, and other non-recurring items.
Adjusted EBITDA is defined as net loss adjusted for interest income; interest expense; other income (expense), net; provision for income taxes; depreciation and amortization expense; stock-based compensation expense and related employer payroll tax payments; contingent consideration; and other non-recurring items. Free cash flow is defined as net cash used in operating activities in the period less purchases of property and equipment in the period.
We believe that the exclusion of certain income and expenses in calculating these non-GAAP financial measures can provide a useful measure for investors when comparing our period-to-period core operating results, and when comparing those same results to that published by our peers. We exclude certain items because we believe that these income and expenses do not reflect expected future operating performance. Additionally, certain items are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. We use these non-GAAP financial measures to evaluate ongoing operations, for internal planning and forecasting purposes, and to manage our business.
These non-GAAP financial measures are not intended to be considered in isolation from, as substitute for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. There are limitations inherent in non-GAAP financial measures because they exclude charges and credits that are required to be included in a GAAP presentation, and do not present the full measure of our recorded costs against its revenue. In addition, our definition of the non-GAAP financial measures may differ from non-GAAP measures used by other companies.
About Guardant Health
Guardant Health is a leading precision oncology company focused on guarding wellness and giving every person more time free from cancer. Founded in 2012, Guardant is transforming patient care and accelerating new cancer therapies by providing critical insights into what drives disease through its advanced blood and tissue tests, real-world data and AI analytics. Guardant tests help improve outcomes across all stages of care, including screening to find cancer early, monitoring for recurrence in early-stage cancer, and treatment selection for patients with advanced cancer. For more information, visit guardanthealth.com and follow the company on LinkedIn, X (Twitter) and Facebook.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding the potential utilities, values, benefits and advantages of Guardant Health’s liquid biopsy tests or assays, which involve risks and uncertainties that could cause the actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and actual outcomes and results could differ materially from these statements due to a number of factors. These and additional risks and uncertainties that could affect Guardant Health’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the year ended December 31, 2024, and in its other reports filed with or furnished to the Securities and Exchange Commission thereafter. The forward-looking statements in this press release are based on information available to Guardant Health as of the date hereof, and Guardant Health disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Guardant Health’s views as of any date subsequent to the date of this press release.
Guardant Health, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Revenue
$
265,196
$
191,476
$
700,755
$
537,202
Costs and operating expenses:
Cost of revenue
93,587
74,489
249,515
212,206
Research and development expense
89,957
87,306
265,927
254,210
Sales and marketing expense
127,375
97,880
351,279
260,172
General and administrative expense
53,266
49,129
150,477
128,243
Total costs and operating expenses
364,185
308,804
1,017,198
854,831
Loss from operations
(98,989
)
(117,328
)
(316,443
)
(317,629
)
Interest income
7,391
13,257
24,063
42,038
Interest expense
(943
)
(646
)
(2,717
)
(1,936
)
Other income (expense), net
(48
)
(3,007
)
7,778
(47,272
)
Loss before provision for income taxes
(92,589
)
(107,724
)
(287,319
)
(324,799
)
Provision for income taxes
136
30
464
568
Net loss
$
(92,725
)
$
(107,754
)
$
(287,783
)
$
(325,367
)
Net loss per share, basic and diluted
$
(0.74
)
$
(0.88
)
$
(2.32
)
$
(2.66
)
Weighted-average shares used in computing net loss per share, basic and diluted
124,807
123,051
124,268
122,406
Guardant Health, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except share and per share data)
September 30, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
580,013
$
525,540
Short-term marketable debt securities
—
314,438
Accounts receivable, net
115,585
110,253
Inventory, net
90,489
71,083
Prepaid expenses and other current assets, net
42,798
33,800
Total current assets
828,885
1,055,114
Restricted cash
109,502
104,215
Property and equipment, net
124,609
136,813
Right-of-use assets, net
163,550
142,265
Intangible assets, net
5,477
6,760
Goodwill
3,290
3,290
Other assets, net
41,473
37,152
Total Assets
$
1,276,786
$
1,485,609
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable
$
20,142
$
38,551
Accrued compensation
98,209
83,219
Accrued expenses
71,707
68,345
Deferred revenue
46,861
35,468
Total current liabilities
236,919
225,583
Convertible senior notes, net, principal amount of $1,090,660 and $1,150,000 as of September 30, 2025 and December 31, 2024, respectively
1,114,594
1,142,547
Long-term operating lease liabilities
185,387
164,292
Other long-term liabilities
94,359
92,834
Total Liabilities
1,631,259
1,625,256
Stockholders’ deficit:
Common stock, par value of $0.00001 per share; 350,000,000 shares authorized; 125,982,066 and 123,994,006 shares issued as of September 30, 2025 and December 31, 2024; and 125,005,715 and 123,994,006 shares outstanding as of September 30, 2025 and December 31, 2024, respectively
1
1
Treasury stock, at cost, 976,351 shares as of September 30, 2025
(45,010
)
—
Additional paid-in capital
2,560,814
2,443,788
Accumulated other comprehensive loss
(4,260
)
(5,201
)
Accumulated deficit
(2,866,018
)
(2,578,235
)
Total Stockholders’ Deficit
(354,473
)
(139,647
)
Total Liabilities and Stockholders’ Deficit
$
1,276,786
$
1,485,609
Guardant Health, Inc.
Supplemental Revenue Information
(unaudited)
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Oncology
$
184,402
$
141,197
$
493,646
$
397,214
Biopharma and data
54,731
46,547
156,127
128,067
Screening
24,112
1,003
44,603
1,003
Licensing and other
1,951
2,729
6,379
10,918
Total revenue
$
265,196
$
191,476
$
700,755
$
537,202
Reconciliation of Selected GAAP Measures to Non-GAAP Measures
(unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
GAAP cost of revenue
$
93,587
$
74,489
$
249,515
$
212,206
Amortization of intangible assets
(151
)
(151
)
(449
)
(717
)
Stock-based compensation expense and related employer payroll tax payments
(2,564
)
(3,917
)
(7,713
)
(7,501
)
Non-GAAP cost of revenue
$
90,872
$
70,421
$
241,353
$
203,988
GAAP gross profit
$
171,609
$
116,987
$
451,240
$
324,996
Amortization of intangible assets
151
151
449
717
Stock-based compensation expense and related employer payroll tax payments
2,564
3,917
7,713
7,501
Non-GAAP gross profit
$
174,324
$
121,055
$
459,402
$
333,214
GAAP research and development expense
$
89,957
$
87,306
$
265,927
$
254,210
Stock-based compensation expense and related employer payroll tax payments
(13,750
)
(18,750
)
(41,095
)
(38,815
)
Contingent consideration
(417
)
(190
)
(1,598
)
(675
)
Non-GAAP research and development expense
$
75,790
$
68,366
$
223,234
$
214,720
GAAP sales and marketing expense
$
127,375
$
97,880
$
351,279
$
260,172
Stock-based compensation expense and related employer payroll tax payments
(11,451
)
(13,287
)
(33,396
)
(27,874
)
Non-GAAP sales and marketing expense
$
115,924
$
84,593
$
317,883
$
232,298
GAAP general and administrative expense
$
53,266
$
49,129
$
150,477
$
128,243
Amortization of intangible assets
(236
)
(340
)
(834
)
(1,011
)
Stock-based compensation expense and related employer payroll tax payments
(15,779
)
(14,068
)
(44,182
)
(30,891
)
Contingent consideration
(115
)
(340
)
(835
)
(760
)
Non-recurring other operating expense
—
—
(2,000
)
—
Non-GAAP general and administrative expense
$
37,136
$
34,381
$
102,626
$
95,581
GAAP loss from operations
$
(98,989
)
$
(117,328
)
$
(316,443
)
$
(317,629
)
Amortization of intangible assets
387
491
1,283
1,728
Stock-based compensation expense and related employer payroll tax payments
43,544
50,022
126,386
105,081
Contingent consideration
532
530
2,433
1,435
Non-recurring other operating expense
—
—
2,000
—
Non-GAAP loss from operations
$
(54,526
)
$
(66,285
)
$
(184,341
)
$
(209,385
)
GAAP net loss
$
(92,725
)
$
(107,754
)
$
(287,783
)
$
(325,367
)
Amortization of intangible assets
387
491
1,283
1,728
Stock-based compensation expense and related employer payroll tax payments
43,544
50,022
126,386
105,081
Contingent consideration
532
530
2,433
1,435
Non-recurring other operating expense
—
—
2,000
—
Unrealized and realized losses on marketable equity securities
—
1,686
—
47,225
Impairment of non-marketable equity securities
—
—
5,000
—
Gain on extinguishment of convertible notes
—
—
(13,672
)
—
Non-GAAP net loss
$
(48,262
)
$
(55,025
)
$
(164,353
)
$
(169,898
)
GAAP net loss per share, basic and diluted
$
(0.74
)
$
(0.88
)
$
(2.32
)
$
(2.66
)
Non-GAAP net loss per share, basic and diluted
$
(0.39
)
$
(0.45
)
$
(1.32
)
$
(1.39
)
Weighted-average shares used in computing GAAP and Non-GAAP net loss per share, basic and diluted
124,807
123,051
124,268
122,406
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(unaudited)
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
GAAP net loss
$
(92,725
)
$
(107,754
)
$
(287,783
)
$
(325,367
)
Interest income
(7,391
)
(13,257
)
(24,063
)
(42,038
)
Interest expense
943
646
2,717
1,936
Other expense (income), net
48
3,007
(7,778
)
47,272
Provision for income taxes
136
30
464
568
Depreciation and amortization
9,408
10,598
29,686
31,933
Stock-based compensation expense and related employer payroll tax payments
43,544
50,022
126,386
105,081
Contingent consideration
532
530
2,433
1,435
Non-recurring other operating expense
—
—
2,000
—
Adjusted EBITDA
$
(45,505
)
$
(56,178
)
$
(155,938
)
$
(179,180
)
Reconciliation of Free Cash Flow to Net Cash Used in Operating Activities
(unaudited)
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Net cash used in operating activities
$
(35,413
)
$
(51,059
)
$
(158,387
)
$
(175,345
)
Purchases of property and equipment
(10,350
)
(4,199
)
(20,458
)
(16,210
)
Free cash flow
$
(45,763
)
$
(55,258
)
$
(178,845
)
$
(191,555
)