GICS Sector : Healthcare
Guardant Health, Inc., a precision oncology company, provides blood tests, data sets, and analytics in the United States and internationally.The company offers Guardant360, Guardant360 LDT, Guardant360 CDx, and GuardantOMNI liquid biopsy-based tests for advanced stage cancer; and GuardantINFORM, an in-silico research platform that comprise a clinical-genomic liquid biopsy dataset of advanced cancer patients.It is also developing LUNAR-2 test for the early detection of colorectal cancer in asymptomatic individuals eligible; and GuardantConnect, an integrated software-based solution for clinical and biopharmaceutical customers seeking to connect patients tested with the Guardant360 assay with actionable alterations with potentially relevant clinical trials.
Guardant Health reported a strong Q3 2025 with revenue growing 39% year-over-year to $265.2 million, driven by robust performance across its oncology, biopharma, and screening businesses. Oncology revenue increased 31% to $184.4 million, with 74,000 tests reported, representing a 40% year-over-year growth. Non-GAAP gross margin improved to 66% in Q3 2025, driven by reductions in Reveal COGS and strong progress in Shield gross margin. The company reported an adjusted EBITDA loss of $45.5 million, an improvement of $10.7 million compared to the third quarter of 2024. Actual EPS came out at -$0.39, beating estimates of -$0.48.
Publication Date: Nov -03
The growth was driven by strong performance across various products, including Guardant360 Liquid, Tissue, and Reveal, with volumes up more than 30%. Biopharma and data business revenue grew 18% to $54.7 million, with 2 companion diagnostic approvals achieved during the quarter. Shield revenue totaled $24.1 million, generated from 24,000 tests. As noted by Helmy Eltoukhy, Guardant360 has been growing over 30% for 11 years, driven by its application platform and increasing clinical utility.
Non-GAAP operating expenses were $228.8 million, up 22% year-over-year, primarily driven by investments in expanding screening commercial infrastructure and scaling sales and marketing for Shield. Despite the increase in operating expenses, the company's adjusted EBITDA loss improved year-over-year. Free cash flow burn was $45.8 million, improving by $9.5 million year-over-year.
The company raised its full-year 2025 revenue guidance to $965 million to $970 million, representing approximately 31% growth compared to 2024. Oncology revenue is expected to grow approximately 25% year-over-year, driven by stronger-than-expected oncology volumes. Shield revenue guidance was increased to $71 million to $73 million, reflecting higher expected volumes. Management remains confident in its long-term growth prospects and expects to deliver on its plan laid out at the Investor Day.
With a P/S Ratio of 12.8 and an expected revenue growth rate of 26.0% next year, the company's valuation appears to be partially justified by its growth prospects. However, the EV/EBITDA ratio of -33.08 and ROE of 151.86% indicate that the company's profitability and return on equity are still subject to significant losses. Analysts will be watching closely to see if Guardant Health can continue to improve its margins and achieve profitability in the long term.
Guardant Health to Present 14 Abstracts Demonstrating the Power of Multiomic Liquid Biopsy Tests in Predicting Outcomes and Tailoring Treatment for Early and Metastatic Breast Cancer at the 2025 San Antonio Breast Cancer Symposium
Dec -05
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Dec -04
Guardant Health, Inc. (NASDAQ:GH) Given Average Rating of “Moderate Buy” by Brokerages
Dec -01
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Nov -28
Creative Planning Purchases 11,449 Shares of Guardant Health, Inc. $GH
Nov -24
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Nov -19
Guardant Health Announces Launch of Single Namespace Group Uniting Leading Technology, Healthcare and Research Institutions to Set Global Standard for Exabyte-Scale Data Access
Nov -12
Guardant Health Expands Tissue-Free Reveal Test to Include Late-Stage Therapy Response Monitoring
Nov -10
Guardant Health's Precision Oncology Testing growth is driven by increasing adoption of liquid biopsies, rising demand for non-invasive cancer diagnostics, and growing use of biomarkers in personalized medicine. Additionally, expanding reimbursement coverage, strategic partnerships, and investments in R&D are fueling growth, with a 14.0% growth rate.
Guardant Health's Development Services and Other segment growth of 18.0% is driven by increasing demand for its non-invasive genomic testing and analytics services, expansion into new markets, and strategic partnerships with pharmaceutical and biotechnology companies. Additionally, the company's investments in digital health and artificial intelligence are enhancing its service offerings, contributing to the segment's growth.
A comprehensive liquid biopsy test that analyzes circulating tumor DNA (ctDNA) to detect cancer mutations in the blood.
A comprehensive liquid biopsy test that analyzes ctDNA to detect cancer mutations in the blood, with a broader gene panel than Guardant360.
A non-invasive, early cancer detection test that analyzes ctDNA in the blood to detect cancer at an early stage.
A non-invasive, early cancer detection test that analyzes ctDNA in the blood to detect cancer at an early stage, with a focus on multi-cancer detection.
A liquid biopsy test that analyzes ctDNA in the blood to detect cancer mutations, with a focus on companion diagnostics and clinical trials.
Guardant Health, Inc. has a low threat of substitutes due to its unique liquid biopsy technology and strong patent portfolio, making it difficult for competitors to replicate its products.
Guardant Health, Inc. has a medium bargaining power of customers due to the presence of a few large customers, but the company's products are highly specialized and critical to patient care, limiting the customers' bargaining power.
Guardant Health, Inc. has a low bargaining power of suppliers due to its ability to negotiate prices with suppliers and its diversified supply chain, reducing dependence on any single supplier.
Guardant Health, Inc. has a high threat of new entrants due to the growing demand for liquid biopsy and the increasing interest in the field, making it attractive for new companies to enter the market.
Guardant Health, Inc. operates in a competitive market, but its strong brand recognition, patented technology, and established customer base help to mitigate the intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 88.04% |
| Debt Cost | 3.95% |
| Equity Weight | 11.96% |
| Equity Cost | 8.55% |
| WACC | 4.50% |
| Leverage | 736.00% |
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