Guardant Health’s second quarter results reflected robust demand across its core oncology and screening businesses, yet the market responded negatively. Management highlighted the rapid adoption of Guardant360 Liquid and Reveal, and emphasized the expansion of its biopharma partnerships. Co-CEO Helmy Eltoukhy attributed volume growth to the “steady cadence of new app introductions” and improvements in test capabilities, while Chief Financial Officer Michael Bell noted a significant turnaround in gross margins for Reveal and Shield products, driven by operational efficiencies and reimbursement improvements. Despite these tailwinds, the company’s continued operating losses and reinvestment strategy appeared to weigh on investor sentiment.
Is now the time to buy GH? Find out in our full research report (it’s free).
Guardant Health (GH) Q2 CY2025 Highlights:
- Revenue: $232.1 million vs analyst estimates of $211.1 million (30.9% year-on-year growth, 10% beat)
- Adjusted EPS: -$0.44 vs analyst estimates of -$0.51 (14.5% beat)
- Adjusted EBITDA: -$51.89 million vs analyst estimates of -$68.5 million (-22.4% margin, 24.2% beat)
- The company lifted its revenue guidance for the full year to $920 million at the midpoint from $885 million, a 4% increase
- Operating Margin: -45.9%, up from -56.8% in the same quarter last year
- Sales Volumes rose 28.7% year on year (13.6% in the same quarter last year)
- Market Capitalization: $6.87 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Guardant Health’s Q2 Earnings Call
- Mark Anthony Massaro (BTIG) asked about the impact of new clinical data and publications on Guardant360 Liquid’s growth. Co-CEO Helmy Eltoukhy noted minimal near-term impact from the SERENA-6 trial but emphasized long-term growth potential as new applications are adopted.
- Puneet Souda (Leerink) questioned what is driving Shield’s commercial performance and prospects for Shield V2 data. Co-CEO AmirAli Talasaz cited strong sales force productivity and growing physician awareness as key drivers, while Bell clarified that ASP improvements were largely due to Medicare rate increases.
- Tycho W. Peterson (Jefferies) inquired about the steps needed to market Shield as a multi-cancer test and potential regulatory risks. Talasaz explained that Shield is operationally ready and the company is monitoring regulatory developments, particularly around USPSTF panel changes.
- Patrick Bernard Donnelly (Citi) asked about the company’s commitment to reinvest gross margin gains versus pursuing near-term profitability. CFO Michael Bell reiterated the strategy to reinvest in commercial build-out and expressed confidence in achieving breakeven in the coming years.
- Eve Burstein (Bernstein Research) sought color on private payer negotiations for Shield and the sustainability of current ASP levels. Talasaz said the company is not relying on major commercial coverage in the short term and expects ASP trends to depend on payer mix.
Catalysts in Upcoming Quarters
Looking forward, our analysts will be closely monitoring (1) the pace of Shield’s commercial adoption and the effectiveness of the expanded sales force, (2) progress in securing additional national guideline endorsements and broader payer coverage for Shield and Reveal, and (3) the pipeline of new product launches and regulatory milestones, including Shield V2 and multi-cancer early detection. Continued improvements in operating leverage and cost management will also be key areas of focus as Guardant Health executes its growth strategy.
Guardant Health currently trades at $54.10, up from $45.23 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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