Revenue growth of 21% broadly driven by strong performance across oncology, screening, and biopharma & data

Raises 2025 revenue guidance to $880 to $890 million, representing growth of 19% to 20%

PALO ALTO, Calif., April 30, 2025--(BUSINESS WIRE)--Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, today reported financial results for the quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

For the three-month period ended March 31, 2025, as compared to the same period of 2024:

Reported total revenue of $203.5 million, an increase of 21%, driven by:

Oncology revenue of $150.6 million, an increase of 20%, and approximately 59,000 oncology tests, an increase of 25% Screening revenue of $5.7 million, and approximately 9,000 Shield screening tests Biopharma & Data revenue of $45.4 million, an increase of 21% Increased Guardant360 ASP to a new range of $3,000 to $3,100 per test Achieved positive gross margins for both Guardant Reveal and Shield

Recent Operating Highlights

Received ADLT status from CMS for Shield, increasing the Medicare pricing to $1,495 Received first Shield payor coverage for average-risk individuals age 45 and older from the VA Community Care Network, representing over 9 million beneficiaries Presented Shield multi-cancer data across ten cancer types at AACR 2025, demonstrating 60% overall sensitivity, 98.5% specificity, and 89% accuracy for cancer site of origin prediction Launched upgraded Guardant360 Tissue, representing the first broad multiomic tissue CGP test to incorporate DNA, RNA, AI-powered PD-L1, and genome-wide methylation Announced a multi-year global collaboration with Pfizer to support development and commercialization of new cancer therapies utilizing the Infinity smart liquid biopsy platform Announced first publication of Reveal breast cancer data in Clinical Cancer Research demonstrating 83% sensitivity and 99.5% specificity for triple-negative breast cancer patients

"We started the year with very strong momentum across our portfolio, fueled by ground-breaking product upgrades and new tests introduced in 2024 which leverage our smart liquid biopsy platform," said Helmy Eltoukhy, co-founder and co-CEO. "Earlier this week, we were excited to launch our upgraded Guardant360 Tissue, a first-of-its-kind multiomic CGP product with expanded genomic and epigenomic breadth that complements our industry-leading Guardant360 liquid products. We are also very pleased to achieve positive gross margins for both Reveal and Shield in the first quarter due to significant reductions in testing costs."

Story Continues

"We were pleased by the robust traction for Shield during the first quarter and are excited by the positive impact we are having on patient lives," said AmirAli Talasaz, co-founder and co-CEO. "We meaningfully raised our full year screening revenue guidance given our increased expectations for both salesforce productivity and ASP now that Shield has received ADLT status. In addition, we were excited to share strong data for Shield multi-cancer in partnership with the National Cancer Institute, which we believe establishes Guardant as a leader in the field of multi-cancer detection."

First Quarter 2025 Financial Results

Revenue was $203.5 million for the first quarter of 2025, a 21% increase from $168.5 million for the corresponding prior year period. Oncology revenue grew 20% to $150.6 million for the first quarter of 2025, from $125.7 million for the corresponding prior year period, driven primarily by an increase in oncology test volume, which grew 25% over the prior year period. The increase in oncology revenue was also attributable to an increase in reimbursement for our Guardant360 and Reveal tests, partially offset by a reduction in revenue related to performance obligations satisfied in prior periods. Screening revenue was $5.7 million for the first quarter of 2025, generated from approximately 9,000 Shield screening tests. Biopharma and data revenue grew 21% to $45.4 million for the first quarter of 2025, from $37.6 million for the corresponding prior year period, driven primarily by an increase in tests performed for biopharmaceutical customers. Licensing and other revenue was $1.9 million for the first quarter of 2025, compared to $5.2 million for the corresponding prior year period.

Gross profit, or total revenue less cost of revenue, was $128.7 million for the first quarter of 2025, an increase of $25.6 million from $103.2 million for the corresponding prior year period. Gross margin, or gross profit divided by total revenue, was 63%, as compared to 61% for the corresponding prior year period.

Non-GAAP gross profit was $131.3 million for the first quarter of 2025, an increase of $26.0 million, from $105.3 million for the corresponding prior year period. Non-GAAP gross margin was 65% for the first quarter of 2025, as compared to 63% for the corresponding prior year period.

Operating expenses were $239.8 million for the first quarter of 2025, as compared to $202.9 million for the corresponding prior year period. The year-over-year increase in operating expenses was primarily related to commercial team expansion and marketing activities to support existing products and the Shield product launch, as well as an increase in stock-based compensation expense. Non-GAAP operating expenses were $199.6 million for the first quarter of 2025, as compared to $176.5 million for the corresponding prior year period. The year-over-year increase in non-GAAP operating expenses was primarily related to commercial team expansion and marketing activities to support existing products and the Shield product launch.

Net loss was $95.2 million for the first quarter of 2025, as compared to $115.0 million for the corresponding prior year period. Net loss per share was $0.77 for the first quarter of 2025, as compared to $0.94 for the corresponding prior year period.

Non-GAAP net loss was $61.1 million for the first quarter of 2025, as compared to $56.4 million for the corresponding prior year period. Non-GAAP net loss per share was $0.49 for the first quarter of 2025, as compared to $0.46 for the corresponding prior year period.

Adjusted EBITDA loss was $58.5 million for the first quarter of 2025, as compared to a $61.1 million loss for the corresponding prior year period.

Free cash flow for the first quarter of 2025 was $(67.1) million, as compared to $(37.2) million for the corresponding prior year period. The year-over-year difference was due to a change in timing of the payout of the company’s annual bonus, which was made in the first quarter of 2025 and in the second quarter of 2024.

Cash, cash equivalents, and restricted cash were $803.9 million as of March 31, 2025.

2025 Guidance

Guardant Health now expects full year 2025 revenue to be in the range of $880 to $890 million, representing growth of 19% to 20% compared to full year 2024. This compares to the prior range of $850 to $860 million, representing growth of 15% to 16%.

Within this revenue range:

Oncology revenue is now expected to grow approximately 18% year over year in 2025, compared to prior guidance of approximately 15% year over year growth. Oncology volume is now expected to accelerate to greater than 25% growth in 2025 compared to 20% growth in 2024. Screening revenue is now expected to be in the range of $40 to $45 million, driven by Shield volume of 52,000 to 58,000 tests. This compares to the prior range of $25 to $30 million, driven by Shield volume of 45,000 to 50,000 tests. Guardant Health continues to expect biopharma & data revenue growth to be in the low double-digit range.

Guardant Health continues to expect full year 2025 non-GAAP gross margin to be in the range of 62% to 63%, compared to 62% in 2024. Guardant Health now expects total non-GAAP operating expenses to be in the range of $830 to $840 million, an increase compared to the prior range of $815 to $825 million due to the reinvestment of incremental Screening gross profit to accelerate the Screening commercial infrastructure build out. 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. This includes approximately $200 million of screening net cash burn. Guardant Health continues to expect the remainder of the business excluding screening to reach free cash flow breakeven in the fourth quarter of 2025.

Webcast Information

Guardant Health will host a conference call to discuss the first quarter 2025 financial results after market close on Wednesday, April 30, 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 gains and 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 March 31, 2025    2024   Revenue $ 203,471   $ 168,491  Costs and operating expenses:  Cost of revenue  74,723    65,296  Research and development expense  88,521    83,802  Sales and marketing expense  104,316    80,425  General and administrative expense  46,952    38,651  Total costs and operating expenses  314,512    268,174  Loss from operations  (111,041 )   (99,683 ) Interest income  9,112    14,868  Interest expense  (791 )   (645 ) Other income (expense), net  7,851    (29,120 ) Loss before provision for income taxes  (94,869 )   (114,580 ) Provision for income taxes  290    405  Net loss $ (95,159 )  $ (114,985 ) Net loss per share, basic and diluted $ (0.77 )  $ (0.94 ) Weighted-average shares used in computing net loss per share, basic and diluted  123,871    121,712

Guardant Health, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share and per share data)  March 31, 2025  December 31, 2024 ASSETS  Current assets:  Cash and cash equivalents $ 698,572   $ 525,540  Short-term marketable debt securities  —    314,438  Accounts receivable, net  115,426    110,253  Inventory, net  77,256    71,083  Prepaid expenses and other current assets, net  35,772    33,800  Total current assets  927,026    1,055,114  Restricted cash  105,281    104,215  Property and equipment, net  129,294    136,813  Right-of-use assets, net  140,500    142,265  Intangible assets, net  6,280    6,760  Goodwill  3,290    3,290  Other assets, net  32,555    37,152  Total Assets $ 1,344,226   $ 1,485,609  LIABILITIES AND STOCKHOLDERS’ DEFICIT  Current liabilities:  Accounts payable $ 49,770   $ 38,551  Accrued compensation  63,678    83,219  Accrued expenses  76,003    68,345  Deferred revenue  36,302    35,468  Total current liabilities  225,753    225,583  Convertible senior notes, net, principal amount of $1,090,660 and $1,150,000 as of March 31, 2025 and December 31, 2024, respectively  1,116,339    1,142,547  Long-term operating lease liabilities  160,378    164,292  Other long-term liabilities  92,545    92,834  Total Liabilities  1,595,015    1,625,256  Stockholders’ deficit:  Common stock, par value of $0.00001 per share; 350,000,000 shares authorized; 124,623,517 and 123,994,006 shares issued as of March 31, 2025 and December 31, 2024; and 123,647,166 and 123,994,006 shares outstanding as of March 31, 2025 and December 31, 2024, respectively  1    1  Treasury stock, at cost, 976,351 shares as of March 31, 2025  (45,010 )   —  Additional paid-in capital  2,472,272    2,443,788  Accumulated other comprehensive loss  (4,658 )   (5,201 ) Accumulated deficit  (2,673,394 )   (2,578,235 ) Total Stockholders’ Deficit  (250,789 )   (139,647 ) Total Liabilities and Stockholders’ Deficit $ 1,344,226   $ 1,485,609

Guardant Health, Inc. Supplemental Revenue Information (unaudited) (in thousands)  Three Months Ended March 31, 2025    2024   Oncology  $ 150,559   $ 125,748  Biopharma and data   45,376    37,587  Screening   5,677    —  Licensing and other   1,859    5,156  Total revenue  $ 203,471   $ 168,491

Reconciliation of Selected GAAP Measures to Non-GAAP Measures (unaudited) (in thousands, except per share data)  Three Months Ended March 31, 2025    2024   GAAP cost of revenue $ 74,723   $ 65,296  Amortization of intangible assets  (148 )   (349 ) Stock-based compensation expense and related employer payroll tax payments  (2,390 )   (1,777 ) Non-GAAP cost of revenue $ 72,185   $ 63,170   GAAP gross profit $ 128,748   $ 103,195  Amortization of intangible assets  148    349  Stock-based compensation expense and related employer payroll tax payments  2,390    1,777  Non-GAAP gross profit $ 131,286   $ 105,321   GAAP research and development expense $ 88,521   $ 83,802  Stock-based compensation expense and related employer payroll tax payments  (13,090 )   (10,064 ) Contingent consideration  (534 )   (375 ) Non-GAAP research and development expense $ 74,897   $ 73,363   GAAP sales and marketing expense $ 104,316   $ 80,425  Stock-based compensation expense and related employer payroll tax payments  (10,189 )   (7,329 ) Non-GAAP sales and marketing expense $ 94,127   $ 73,096   GAAP general and administrative expense $ 46,952   $ 38,651  Amortization of intangible assets  (332 )   (336 ) Stock-based compensation expense and related employer payroll tax payments  (13,571 )   (8,164 ) Contingent consideration  (490 )   (120 ) Non-recurring other operating expense  (2,000 )   —  Non-GAAP general and administrative expense $ 30,559   $ 30,031   GAAP loss from operations $ (111,041 )  $ (99,683 ) Amortization of intangible assets  480    685  Stock-based compensation expense and related employer payroll tax payments  39,240    27,334  Contingent consideration  1,024    495  Non-recurring other operating expense  2,000    —  Non-GAAP loss from operations $ (68,297 )  $ (71,169 )  GAAP net loss $ (95,159 )  $ (114,985 ) Amortization of intangible assets  480    685  Stock-based compensation expense and related employer payroll tax payments  39,240    27,334  Contingent consideration  1,024    495  Non-recurring other operating expense  2,000    —  Unrealized losses on marketable equity securities  —    30,054  Impairment of non-marketable equity securities and other related assets  5,000    —  Gain on extinguishment of convertible notes  (13,672 )   —  Non-GAAP net loss $ (61,087 )  $ (56,417 )  GAAP net loss per share, basic and diluted $ (0.77 )  $ (0.94 ) Non-GAAP net loss per share, basic and diluted $ (0.49 )  $ (0.46 ) Weighted-average shares used in computing GAAP and Non-GAAP net loss per share, basic and diluted  123,871    121,712

Reconciliation of GAAP Net Loss to Adjusted EBITDA (unaudited) (in thousands)  Three Months Ended March 31, 2025    2024   GAAP net loss $ (95,159 )  $ (114,985 ) Interest income  (9,112 )   (14,868 ) Interest expense  791    645  Other expense (income), net  (7,851 )   29,120  Provision for income taxes  290    405  Depreciation and amortization  10,236    10,712  Stock-based compensation expense and related employer payroll tax payments  39,240    27,334  Contingent consideration  1,024    495  Non-recurring other operating expense  2,000    —  Adjusted EBITDA $ (58,541 )  $ (61,142 )

Reconciliation of Free Cash Flow to Net Cash Used in Operating Activities (unaudited) (in thousands)  Three Months Ended March 31, 2025    2024   Net cash used in operating activities $ (62,689 )  $ (30,284 ) Purchases of property and equipment  (4,459 )   (6,934 ) Free cash flow $ (67,148 )  $ (37,218 )

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