10-QPeriod: Q1 FY2025

Guardant Health, Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 30, 2025For Securities:GH

Summary

Guardant Health, Inc. reported a notable increase in revenue for the first quarter of 2025, up 21% year-over-year to $203.5 million. This growth was primarily driven by strong performance in its Oncology and Biopharma and data segments, reflecting increased test volumes and improved reimbursement for key tests like Guardant360 CDx and Guardant Reveal. The company also saw the initial revenue contribution from its Shield screening test, a positive development for its early cancer detection strategy. Despite the revenue growth, the company continued to incur significant operating losses, with a net loss of $95.2 million for the quarter. This was partly due to increased investments in research and development and a substantial rise in sales and marketing expenses, particularly related to expanding its commercial team and supporting new product launches like Shield. The company's cash position remains strong at over $800 million, providing runway for continued investment. Investors will be closely watching the company's progress in commercializing its screening tests and managing its expenses to achieve profitability.

Financial Highlights

55 data points
Beta

Revenue

$203.47M

63.3% Gross Margin

Net Income

-$95.16M

-46.8% Net Margin

EPS (Diluted)

$-0.77

Total Assets

$1.34B

Cash & Equivalents

$698.57M

Free Cash Flow

-$67.15M

Financial Statements
Beta
Revenue$203.47M
Cost of Revenue$74.72M
Gross Profit$128.75M
R&D Expenses$88.52M
Operating Expenses$314.51M
Operating Income-$111.04M
Interest Expense$791K
Net Income-$95.16M
EPS (Basic)$-0.77
EPS (Diluted)$-0.77
Shares Outstanding (Basic)123.87M
Shares Outstanding (Diluted)123.87M

Key Highlights

  • 1Revenue increased by 21% to $203.5 million in Q1 2025, driven by growth in Oncology and Biopharma segments.
  • 2Significant increase in sales and marketing expenses (up 30%) to support commercial team expansion and product launches.
  • 3Net loss for the quarter was $95.2 million, a slight improvement from $115.0 million in the prior year period.
  • 4Screening revenue, primarily from the Shield test, generated $5.7 million in the quarter.
  • 5Cash, cash equivalents, and restricted cash stood at $803.9 million as of March 31, 2025.
  • 6The company completed a note exchange, retiring $659.3 million of 2027 Notes for $600.0 million of new 2031 Notes, resulting in a $13.7 million gain on extinguishment.
  • 7An impairment of $5.0 million was recorded for one non-marketable equity security investment.

Frequently Asked Questions

Guardant Health reported a 21% increase in total revenue, reaching $203.5 million for the three months ended March 31, 2025, compared to $168.5 million in the same period of 2024. This growth was mainly attributed to higher test volumes in the Oncology and Biopharma and data segments, along with improved reimbursement rates for key tests.

While revenue grew, operating expenses also increased. Cost of revenue rose 14% to $74.7 million, research and development expenses increased 6% to $88.5 million, and sales and marketing expenses saw a significant 30% jump to $104.3 million, reflecting investments in commercial expansion and product launches. General and administrative expenses also increased by 21% to $47.0 million. These higher expenses contributed to a net loss of $95.2 million for the quarter, although this is an improvement from the $115.0 million net loss in the prior year period.

Guardant Health maintains a strong liquidity position, with cash, cash equivalents, and restricted cash totaling $803.9 million as of March 31, 2025. The company believes this is sufficient to meet its operating requirements for more than the next 12 months.

In February 2025, the company completed a note exchange, retiring $659.3 million of its 2027 Convertible Senior Notes in exchange for $600.0 million of new 1.25% Convertible Senior Notes due 2031. This transaction resulted in a $13.7 million gain on extinguishment. Regarding legal matters, a jury verdict in November 2023 favored TwinStrand Biosciences, resulting in an $83.4 million damages award against Guardant Health, which the company is contesting. Separately, Guardant Health won a $292.5 million jury award against Natera in May 2024 for false advertising, though post-trial briefings are ongoing.