Guardant Health Q2 2025 slides: revenue up 31%, raises full-year guidance

Published 30/07/2025, 22:20
Guardant Health Q2 2025 slides: revenue up 31%, raises full-year guidance

Guardant Health Inc (NASDAQ:GH) shares rose 4.32% on Wednesday after the company presented strong second-quarter results showing accelerating growth across all business segments and raised its full-year guidance. The cancer diagnostics company reported total revenue of $232.1 million for Q2 2025, representing a 31% year-over-year increase.

Quarterly Performance Highlights

Guardant Health demonstrated robust performance across its three main business segments: Oncology, Biopharma & Data, and Screening. Total (EPA:TTEF) revenue reached $232.1 million in Q2 2025, compared to $177 million in the same period last year, marking a 31% increase.

As shown in the following chart of quarterly revenue distribution:

The company’s core Oncology business generated $158.7 million in revenue, up 22% year-over-year, while Biopharma & Data revenue grew 28% to $56 million. The most dramatic growth came from the Screening segment, which increased nearly five-fold from $3 million in Q2 2024 to $14.8 million in Q2 2025, driven by the rapid adoption of the Shield colorectal cancer screening test.

Oncology Business Growth

Guardant Health’s oncology business showed strong momentum, with test volumes increasing 30% year-over-year to 64,000 tests in Q2 2025, compared to 49,000 tests in Q2 2024.

The following chart illustrates this growth in both revenue and volume:

The company highlighted several achievements in its oncology segment, including the fourth consecutive quarter of accelerating Guardant360 Liquid year-over-year volume growth and the introduction of 11 new Smart Liquid Biopsy applications. Additionally, Guardant Health launched an upgraded Guardant360 Tissue test with an increased average selling price of approximately $2,000.

A significant development was the submission of Reveal breast cancer data package to MolDx for Medicare reimbursement consideration. The company reported impressive clinical results for this application:

The company also presented data from the RADIOHEAD study, demonstrating Reveal’s strong performance in immuno-oncology monitoring:

Shield Screening Progress

One of the most notable aspects of Guardant Health’s Q2 performance was the accelerating adoption of its Shield colorectal cancer screening test. Shield volume reached 16,000 tests in Q2 2025, up from 9,000 in Q1 2025 and 6,000 in Q4 2024, showing sequential growth.

The following chart demonstrates this rapid adoption trajectory:

A key milestone for Shield was its inclusion in the National Comprehensive Cancer Network (NCCN) colorectal cancer screening guidelines, providing important validation for the blood-based screening approach:

Perhaps most impressive was the dramatic improvement in Shield’s gross margin, which increased from just 2% in Q4 2024 to 48% in Q2 2025, driven by improvements in both average selling price and cost of goods sold:

Biopharma Business Performance

Guardant Health’s biopharma business also delivered strong results, with revenue increasing 28% year-over-year to $56 million, marking a record quarter for this segment. The company announced two new companion diagnostic deals signed in Q2.

The following chart shows the biopharma revenue growth:

Financial Analysis and Outlook

Guardant Health’s overall financial performance showed significant improvement, with detailed revenue growth across all segments:

Based on the strong Q2 results, the company raised its full-year 2025 revenue guidance to $915-925 million, up from the previous guidance of $880-890 million provided after Q1 results. The company now expects oncology revenue to grow approximately 20% year-over-year (up from 18% previously) and has significantly increased its screening revenue guidance to $55-60 million (up from $40-45 million).

Despite the strong revenue growth, Guardant Health continues to operate at a loss, with an adjusted EBITDA of $(51.9) million and free cash flow of $(65.9) million for Q2 2025. The company’s cash and investments stood at $735 million as of June 30, 2025, down from $944 million at the end of 2024, reflecting ongoing investments in growth initiatives.

Forward-Looking Statements

Guardant Health outlined several key catalysts for the remainder of 2025, including continued expansion of its oncology portfolio with new applications, strategic biopharma partnerships, and further development of its multi-cancer detection platform.

The company announced it will hold an Investor Day on September 24, 2025, in New York, where it will likely provide more details on its long-term strategy and financial outlook.

The Q2 2025 results mark a significant improvement from Q1, when the stock fell 4.76% in after-hours trading despite beating earnings expectations. The current quarter’s strong performance across all segments, particularly the accelerating adoption of Shield and improved gross margins, appears to have renewed investor confidence, as evidenced by the 4.32% stock price increase on the day of the earnings presentation.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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