Guardant Health 2025 Q2 Earnings Mixed Results as Net Loss Narrows

Guardant Health reported a 31% revenue increase for Q2 2025, reaching $232.1 million, exceeding expectations. The company adjusted its 2025 revenue guidance upward to between $915 and $925 million. Despite narrowing its net loss to $99.9 million from $102.6 million in Q2 2024, Guardant Health continues to face financial challenges. The raised guidance underscores the company's optimism in its product offerings, particularly Guardant360 Liquid and Shield.

Revenue

Guardant Health achieved a total revenue of $232.09 million in Q2 2025, marking a 30.9% increase from the previous year. The oncology segment led this growth, generating $158.69 million, followed by biopharma and data, contributing $56.02 million. Screening revenue amounted to $14.81 million, while licensing and other segments added $2.57 million, culminating in the overall revenue figure.

Earnings/Net Income

Guardant Health reduced its losses, reporting a net loss of $99.90 million in Q2 2025, a modest improvement from $102.63 million a year earlier. The earnings per share loss narrowed to $0.80 from $0.84, reflecting ongoing financial challenges with slight progress.

Price Action

The stock price of Guardant Health rose by 3.74% during the latest trading day, decreased by 0.57% over the past week, and fell 11.15% month-to-date.

Post-Earnings Price Action Review

Guardant Health's strategy of purchasing shares after revenue increases and holding them for 30 days resulted in significant underperformance. The strategy's compound annual growth rate was -12.15%, with an excess return of -135.06%, far below the benchmark return of 87.61%. It also experienced a high maximum drawdown of 66.63% and a Sharpe ratio of -0.18, highlighting the risk and losses involved. This performance indicates that the strategy is not favorable compared to market benchmarks and comes with considerable volatility and potential for loss.

CEO Commentary

"Q2 was another exceptional quarter for Guardant and we were able to increase our 2025 revenue guidance yet again," stated Helmy Eltoukhy, co-founder and co-CEO. He emphasized strong performance from Guardant360 Liquid, showcasing year-over-year growth for the fourth consecutive quarter. AmirAli Talasaz, co-founder and co-CEO, noted Shield's robust demand, surpassing expectations in volume, revenue, and gross profit, while advancing its multi-cancer detection capabilities.

Guidance

Guardant Health raised its 2025 revenue guidance to between $915 and $925 million, predicting 24% to 25% growth. The company expects strong demand for its products, particularly Guardant360 Liquid and Shield, to drive future revenue growth. Management remains optimistic about developing Smart Liquid Biopsy applications and expanding Shield as a multi-cancer detection test.

Additional News

Recently, Guardant Health was embroiled in a significant legal battle, resulting in a $287 million judgment against Natera for false advertising, including $176 million in punitive damages. This legal victory provides a substantial financial boost, offsetting operational losses and bolstering liquidity. Additionally, the company proactively managed its debt by exchanging $659 million of 2027 convertible notes for new 2031 notes, extending its maturity profile and improving financial flexibility. Guardant Health's Shield multi-cancer detection test received Breakthrough Device designation from the FDA, which could expedite its market access and development.