Guardant Health’s first quarter results were shaped by strong growth in both its oncology and screening businesses, with management crediting product upgrades and increasing test volumes as key drivers. Co-CEO Helmy Eltoukhy pointed to “some of the strongest growth we’ve seen in a number of years” for Guardant360, following recent enhancements to its liquid biopsy platform, while the Reveal test contributed additional volume gains. Management also highlighted operational improvements and reimbursement wins that helped both Reveal and Shield turn gross margin positive.
Is now the time to buy GH? Find out in our full research report (it’s free).
Guardant Health (GH) Q1 CY2025 Highlights:
- Revenue: $203.5 million vs analyst estimates of $190.3 million (20.8% year-on-year growth, 6.9% beat)
- Adjusted EPS: -$0.49 vs analyst estimates of -$0.59 (17% beat)
- Adjusted EBITDA: -$58.54 million vs analyst estimates of -$78.16 million (-28.8% margin, 25.1% beat)
- The company lifted its revenue guidance for the full year to $885 million at the midpoint from $855 million, a 3.5% increase
- Operating Margin: -54.6%, up from -59.2% in the same quarter last year
- Sales Volumes rose 28.1% year on year (19.9% in the same quarter last year)
- Market Capitalization: $6.30 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 Guardant Health’s Q1 Earnings Call
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Mark Massaro (BTIG) asked how management prioritized drivers behind oncology volume acceleration. Co-CEO Helmy Eltoukhy highlighted the impact of the smart liquid biopsy upgrade, increased product-market fit for Guardant360, and synergies with the newly launched tissue product.
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Tycho Peterson (Jefferies) inquired about assumptions for Guardant360 and tissue test pricing in guidance. CFO Michael Bell explained that the company assumes steady Guardant360 ASPs around $3,000 to $3,100 and tissue rates near current Medicare levels, with some room for future improvement.
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Bill Bonello (Craig-Hallum) questioned the impact of lower tissue requirements for Guardant360 Tissue. Eltoukhy said the upgrade enables more actionable results from limited samples and positions the product to take share from existing tissue providers without cannibalizing liquid biopsy volumes.
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Subbu Nambi (Guggenheim Partners) asked about upside and downside drivers for Shield volume guidance. Co-CEO AmirAli Talasaz cited potential boosts from commercial rep productivity, ACS guideline inclusion, and the Abu Dhabi contract, while noting that rep hiring timing could impact results.
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Rachel Vatnsdal (JPMorgan) pressed for detail on the expected quarterly Shield volume ramp. Talasaz indicated growth will be weighted toward the second half of the year as new sales reps reach full productivity, consistent with historical industry patterns.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will focus on (1) the adoption trajectory and margin performance of Shield as new sales reps ramp productivity, (2) evidence of continued volume and market share gains in the oncology segment, especially for Guardant360 and Reveal, and (3) progress in securing additional payer coverage and clinical guideline endorsements for Shield and Reveal. The pace of new product launches and biopharma partnerships will also be important to monitor.
Guardant Health currently trades at $51.40, up from $47.17 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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