Free cash flow remains deeply negative at -23.6% of revenue, reflecting the substantial capital requirements needed to sustain operations while the OCF/NI ratio remains volatile at 0.59.
| Cash from Operations | -175.41M | -184.76M | -239.86M | -324.98M | -309.46M | -209.02M | -103.93M | -47.13M | -72.19M | -72.23M | -36.71M |
| Operating CF Margin % | - | -18.81% | -32.46% | -57.63% | -68.84% | -55.94% | -36.25% | -21.99% | -79.64% | -144.93% | -145.39% |
| Operating CF Growth % | 140% | 22.97% | 26.19% | -5.01% | -48.06% | -101.12% | -120.49% | 34.7% | 0.07% | -96.77% | - |
| Net Income | -433.19M | -416.28M | -436.37M | -479.45M | -654.59M | -384.77M | -246.28M | -67.85M | -84.26M | -83.22M | -46.14M |
| Depreciation & Amortization | 38.94M | 39.74M | 42.39M | 42.88M | 35.96M | 22.27M | 16.07M | 11.41M | 7.14M | 5.21M | 3.69M |
| Stock-Based Compensation | 132.88M | 166.22M | 140.41M | 90.76M | 94.69M | 151.45M | 144.11M | 16.95M | 6.85M | 3.67M | 1.97M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.6M | 0 | 0 | 0 |
| Other Non-Cash Items | 100.33M | 15.78M | 74.58M | -33.01M | 152.91M | 42.5M | 29.84M | 2.25M | -782K | 7.1M | 1.31M |
| Working Capital Changes | -14.36M | 9.78M | -60.86M | 53.84M | 61.56M | -40.47M | -47.66M | -8.3M | -1.13M | -4.99M | 2.45M |
| Change in Receivables | -21.12M | -28.18M | -21.39M | 8.38M | 375K | -44.35M | -5.46M | -7.39M | -22.9M | -9.29M | -2.79M |
| Change in Inventory | -6.59M | -14.79M | -9.13M | -10.35M | -20.93M | -7.96M | -7.54M | -6.04M | -1.85M | -4.52M | -351K |
| Change in Payables | 46.06M | 52.75M | -2.82M | 0 | 60.33M | 8.64M | -7.86M | 4.34M | 5.05M | 1.25M | 2.15M |
| Cash from Investing | -230.65M | -627.2M | -261.31M | 840.25M | 149.82M | -63.16M | -617.09M | -317.57M | -153.03M | -170.42M | 26.2M |
| Capital Expenditures | -49.43M | -48.31M | -35.09M | -20.49M | -77.46M | -75.03M | -36.17M | -18.72M | -20.2M | -6.68M | -1.77M |
| CapEx % of Revenue | 4.58% | 4.92% | 4.75% | 3.63% | 17.23% | 20.08% | 12.62% | 8.73% | 22.29% | 13.4% | 6.99% |
| Acquisitions | -58.99M | -58.99M | 0 | 0 | 0 | 0 | 0 | -7.33M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | -17.89M | -2.57M | 0 | -2.3M | 0 |
| Cash from Financing | 704.12M | 671.13M | -996K | 477.38M | -189.09M | -66.82M | 1.41B | 367.3M | 293.16M | 281.66M | 39.84M |
| Debt Issued (Net) | 372.84M | 0 | 0 | 0 | -71K | -146K | 1.13B | -438K | -443K | -26.09M | -375K |
| Equity Issued (Net) | 368.05M | 101.46M | 14.84M | 493.12M | 0 | 0 | 355.73M | 350.43M | 253.83M | 306.98M | 39.95M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 13.59M | 0 | 0 | 0 | 0 | 0 | 0 | -172K | -7.22M | -100K |
| Other Financing | -36.77M | 569.68M | -15.83M | -15.74M | -189.02M | -66.68M | -78M | 17.31M | 39.77M | 765K | 266K |
| Net Change in Cash | 295.88M | -140.34M | -503.93M | 991.74M | -350.34M | -340.69M | 689.75M | 2.68M | 67.95M | 39.01M | 29.33M |
| Free Cash Flow | -224.83M | -233.07M | -274.94M | -345.46M | -386.92M | -284.05M | -157.99M | -68.42M | -92.39M | -81.22M | -38.48M |
| FCF Margin % | -20.81% | -23.73% | -37.2% | -61.26% | -86.07% | -76.02% | -55.1% | -31.92% | -101.93% | -162.95% | -152.39% |
| FCF Growth % | 26.25% | 15.23% | 20.41% | 10.72% | -36.22% | -79.8% | -130.91% | 25.94% | -13.75% | -111.09% | - |
| FCF per Share | -1.71 | -1.86 | -2.24 | -3.08 | -3.79 | -2.80 | -1.62 | -0.76 | -1.09 | -1.15 | -2.91 |
| FCF Conversion (FCF/Net Income) | 0.52x | 0.44x | 0.55x | 0.68x | 0.47x | 0.52x | 0.41x | 0.62x | 0.85x | 0.87x | 0.80x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.18M | 1.25M | 1.34M | 2.24M |
| Taxes Paid | 0 | 0 | 1.01M | 1.97M | 1.33M | 393K | 331K | 298K | 102K | 26K | 14K |
High Cash Burn Rate
As reported in financial statements, Guardant Health consistently exhibits a significant divergence between net losses and operating cash flow, with the OCF/NI ratio fluctuating between 0.11 and 0.92 over the last ten quarters, highlighting the heavy reliance on non-cash adjustments to mitigate reported accounting losses.
The persistent gap between net income and operating cash flow suggests that the company's accounting losses are partially mitigated by non-cash charges, yet the underlying business remains cash-consumptive. Investors should monitor whether this conversion ratio stabilizes as the company attempts to scale its screening business, as current figures indicate that operational cash generation remains insufficient to cover the core cost structure.
Based on the provided quarterly data, Guardant Health's free cash flow margins remain deeply negative, reaching a low of -55.9% in 2024Q2, which underscores the substantial capital requirements necessary to support the ongoing development and commercialization of the Shield screening platform and other diagnostic initiatives.
The trajectory of free cash flow indicates that the company is currently in a high-intensity investment phase where cash outflows consistently outpace inflows. This trend suggests that the path to positive free cash flow is contingent upon achieving significant scale in the screening market, which remains an unproven variable in the current competitive landscape.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $64.2M inflow in 2023Q4 to a $53.7M outflow in 2024Q2, reflecting the inherent complexities in managing receivables and inventory during a period of rapid commercial expansion and shifting reimbursement cycles.
The volatility in working capital suggests that the company faces challenges in aligning cash collections with its aggressive revenue growth targets. Such fluctuations may indicate potential friction in the reimbursement process or inventory build-ups that warrant further investigation to determine if they represent temporary timing differences or structural inefficiencies.
As disclosed in quarterly financial statements, Guardant Health utilizes significant stock-based compensation, peaking at $49.8M in 2024Q3, which effectively masks the true cash-burn rate required to maintain its specialized workforce and laboratory operations, thereby complicating the assessment of the company's underlying operational efficiency.
The reliance on stock-based compensation as a primary tool for talent retention suggests that the company's cash flow statement may present a more favorable picture of operational health than the underlying cash burn would otherwise imply. Analysts should adjust for these non-cash expenses to better understand the actual capital intensity required to sustain the business model.
Quick answers to the most common questions about buying GH stock.
Guardant Health, Inc. (GH) generated $-184.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Guardant Health, Inc. (GH) reported negative free cash flow of $233.1M in 2025, indicating capital requirements exceeded cash from operations.
Guardant Health, Inc. (GH) spent $48.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Guardant Health, Inc. (GH) spent $13.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.