How fast is the company's core business growing, and what drove the Q4 acceleration?

Total revenue grew 39% in Q4 2025 and 33% for the full year. Oncology test volume grew 38% in Q4 (34% for the year), and Shield screening added roughly 38,000 tests in Q4 versus about 6,400 a year earlier. Oncology revenue growth (30% in Q4) trailed volume growth, reflecting pricing and mix, but the Shield ramp was the largest incremental driver of the quarter.

What does 2026 guidance imply for growth and profitability?

Management expects 2026 revenue of $1.25 to $1.28 billion, or 27% to 30% growth, with Oncology growing 25% to 27% on roughly 30% volume growth and Screening revenue reaching $162 to $174 million. Non-GAAP gross margin is guided to 64% to 65%, slightly below 2025's 66%, while operating expenses are expected to rise 14% to 16%. Free cash flow burn is projected to narrow to $185 to $195 million from $233 million.

Is the company's balance sheet sufficient to fund continued cash burn?

At December 31, 2025, the company held about $1.3 billion in cash, cash equivalents, restricted cash and marketable debt securities. This followed a November 2025 equity offering (net proceeds of $327.3 million) and $402.5 million of 0% convertible notes due 2033. Against a 2026 free cash flow burn guided at $185 to $195 million, the liquidity position appears ample near term, though total convertible notes of about $1.5 billion on the balance sheet are a longer-term consideration.

What were the key strategic and commercial developments in the quarter?

Highlights include a strategic collaboration with Merck for companion diagnostics and therapy commercialization, the first Guardant360 CDx companion diagnostic approval in colorectal cancer, expanded Guardant Reveal monitoring, TRICARE coverage for Shield with no copay for average-risk individuals aged 45 and older, first enterprise health system integrations for Shield, and the acquisition of MetaSight Diagnostics for $59.0 million upfront plus up to $90.0 million in contingent consideration.

What is driving the increase in operating expenses, and does it affect profitability?

Operating expenses rose on commercial team expansion and marketing to support the Shield launch and existing products, plus higher stock-based compensation and IT infrastructure costs. Q4 non-GAAP operating expenses were $260.0 million versus $214.7 million a year earlier. Despite this, non-GAAP net loss narrowed to $(63.8) million in Q4 from $(77.3) million, and full-year non-GAAP loss from operations improved to $(258.9) million from $(297.7) million, showing operating leverage from revenue growth. GAAP net loss for Q4 widened to $(128.5) million, partly due to a $13.6 million impairment of non-marketable equity securities and $18.3 million of other expense.

GH 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.

Guardant Health (GH) reported strong fourth quarter and full year 2025 results, with total revenue of $281.3 million^a in Q4 (up 39% year-over-year) and $982.0 million for the full year (up 33%).

Growth was led by Oncology, where test volume rose 38% in Q4 and 34% for the year, and by the rapid ramp of Shield, the company's blood-based colorectal cancer screening test, which generated $35.1 million^b in Q4 screening revenue from roughly 38,000 tests versus 6,400 a year earlier. Non-GAAP gross margin expanded to 66% for both the quarter and the full year, and free cash flow burn narrowed to $(233) million in 2025 from $(275) million in 2024. Net loss improved to $(416.3) million for the year from $(436.4) million, and non-GAAP net loss narrowed to $(228.1) million.

Management guided 2026 total revenue to $1.25 to $1.28 billion^c, implying 27% to 30% growth. The outlook calls for Oncology revenue growth of 25% to 27% with approximately 30% volume growth, Biopharma & Data growth in the low double digits, and Screening revenue of $162 to $174 million on 210,000 to 225,000 tests. Non-GAAP gross margin is guided to 64% to 65%, non-GAAP operating expenses to $1.03 to $1.05 billion (up 14% to 16%), and free cash flow burn to $185 to $195 million, an improvement from 2025.

The company ended 2025 with about $1.3 billion^d in cash, cash equivalents, restricted cash and marketable debt securities, after a November 2025 follow-on offering (net proceeds of $327.3 million) and $402.5 million of 0% convertible notes due 2033. Total convertible notes on the balance sheet rose to $1.5 billion, which is a point investors will want to track alongside the path to free cash flow breakeven.

The release also highlights strategic progress: a Merck collaboration for companion diagnostics, first Guardant360 CDx companion diagnostic approval in colorectal cancer, expanded tissue-free Guardant Reveal monitoring, TRICARE coverage for Shield, early health system integrations, and the acquisition of MetaSight Diagnostics for $59.0 million upfront plus up to $90.0 million in contingent consideration. Note that the 2026 free cash flow guidance text refers to "2025" in its wording, which appears to be a typographical error for 2026.

02—Key points

Key Highlights

Q4 2025 total revenue rose 39% year-over-year to $281.3 million, with Oncology up 30% to $189.9 million and Oncology test volume up 38% to about 79,000 tests.
Shield screening revenue reached $35.1 million in Q4 2025 from about 38,000 tests, versus $4.1 million and 6,400 tests a year earlier, and full-year screening revenue was $79.7 million.
Non-GAAP gross margin expanded to 66% for Q4 and full year 2025, up from 63% and 62% respectively in the prior-year periods.
Free cash flow burn improved to $(233.1) million in 2025 from $(274.9) million in 2024, and Q4 free cash flow was $(54.2) million versus $(83.4) million a year earlier.
2026 guidance calls for total revenue of $1.25 to $1.28 billion (27% to 30% growth), non-GAAP gross margin of 64% to 65%, and free cash flow burn of $185 to $195 million.
Non-GAAP operating expenses are guided to $1.03 to $1.05 billion in 2026, a 14% to 16% increase, while Screening revenue is expected at $162 to $174 million on 210,000 to 225,000 tests.
Balance sheet: about $1.3 billion in cash and marketable securities at year-end 2025, supported by a $327.3 million net equity raise and $402.5 million of new 0% convertible notes due 2033, with total convertible notes of $1.5 billion.

03—Questions

Frequently Asked Questions

How fast is the company's core business growing, and what drove the Q4 acceleration?
Total revenue grew 39% in Q4 2025 and 33% for the full year. Oncology test volume grew 38% in Q4 (34% for the year), and Shield screening added roughly 38,000 tests in Q4 versus about 6,400 a year earlier. Oncology revenue growth (30% in Q4) trailed volume growth, reflecting pricing and mix, but the Shield ramp was the largest incremental driver of the quarter.
What does 2026 guidance imply for growth and profitability?
Management expects 2026 revenue of $1.25 to $1.28 billion, or 27% to 30% growth, with Oncology growing 25% to 27% on roughly 30% volume growth and Screening revenue reaching $162 to $174 million. Non-GAAP gross margin is guided to 64% to 65%, slightly below 2025's 66%, while operating expenses are expected to rise 14% to 16%. Free cash flow burn is projected to narrow to $185 to $195 million from $233 million.
Is the company's balance sheet sufficient to fund continued cash burn?
At December 31, 2025, the company held about $1.3 billion in cash, cash equivalents, restricted cash and marketable debt securities. This followed a November 2025 equity offering (net proceeds of $327.3 million) and $402.5 million of 0% convertible notes due 2033. Against a 2026 free cash flow burn guided at $185 to $195 million, the liquidity position appears ample near term, though total convertible notes of about $1.5 billion on the balance sheet are a longer-term consideration.
What were the key strategic and commercial developments in the quarter?
Highlights include a strategic collaboration with Merck for companion diagnostics and therapy commercialization, the first Guardant360 CDx companion diagnostic approval in colorectal cancer, expanded Guardant Reveal monitoring, TRICARE coverage for Shield with no copay for average-risk individuals aged 45 and older, first enterprise health system integrations for Shield, and the acquisition of MetaSight Diagnostics for $59.0 million upfront plus up to $90.0 million in contingent consideration.
What is driving the increase in operating expenses, and does it affect profitability?
Operating expenses rose on commercial team expansion and marketing to support the Shield launch and existing products, plus higher stock-based compensation and IT infrastructure costs. Q4 non-GAAP operating expenses were $260.0 million versus $214.7 million a year earlier. Despite this, non-GAAP net loss narrowed to $(63.8) million in Q4 from $(77.3) million, and full-year non-GAAP loss from operations improved to $(258.9) million from $(297.7) million, showing operating leverage from revenue growth. GAAP net loss for Q4 widened to $(128.5) million, partly due to a $13.6 million impairment of non-marketable equity securities and $18.3 million of other expense.

04—Continue

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