📊 GH Key Takeaways
Is Guardant Health, Inc. (GH) a Good Investment?
Guardant Health exhibits severe financial distress with negative stockholders' equity of -181.1M, indicating the company's liabilities exceed assets. Operating performance is critically impaired with -40.2% operating margin, flat YoY revenue growth, and negative free cash flow of -71.2M despite holding 989.3M in cash, signaling unsustainable unit economics. Without demonstrable path to profitability and positive cash generation, the company faces high financial risk despite current liquidity reserves.
Guardant Health shows weak fundamentals: revenue is flat while operating and net losses remain extremely large, with negative operating margin of -44.5% and net margin of -42.4%. Financial health is pressured by negative equity, $1.50B of long-term debt, and deeply negative free cash flow, although the cash balance and strong current ratio provide some near-term liquidity support.
Why Buy Guardant Health, Inc. Stock? GH Key Strengths
- Substantial cash reserves of 989.3M provide near-term runway
- Strong current ratio of 4.68x and quick ratio of 4.39x ensure short-term liquidity needs are met
- Significant insider activity with 40 Form 4 filings in 90 days suggests management engagement
- Strong near-term liquidity with 4.84x current ratio and $378.20M in cash
- Meaningful revenue base of $982.02M provides operating scale to build on
- Diluted EPS improved modestly year over year, suggesting some incremental cost progress
GH Stock Risks: Guardant Health, Inc. Investment Risks
- Negative stockholders equity of -181.1M indicates company liabilities exceed assets by this amount
- Operating cash flow is deeply negative at -65.6M; company cannot fund operations from business
- Revenue flatlined YoY with no growth momentum; coupled with losses, questions fundamental business viability
- Long-term debt of 1.5B cannot be serviced from operations with negative interest coverage of -90.1x
- Free cash flow burn of -71.2M annually will deplete cash reserves in 13+ years if unchanged
- Profitability remains very weak, with large operating and net losses despite nearly $1B in revenue
- Negative stockholders equity indicates a stressed balance sheet and limits financial flexibility
- Negative operating cash flow and free cash flow increase reliance on external funding over time
Key Metrics to Watch
- Path to operating profitability and positive operating cash flow
- Revenue growth acceleration and operating margin expansion
- Stockholders equity restoration to positive territory
- Debt reduction plan and interest coverage improvement
- Revenue growth reacceleration versus continued flat sales
- Operating cash flow burn and progress toward sustained margin improvement
Guardant Health, Inc. (GH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.68x current ratio provides a solid financial cushion.
GH Profit Margin, ROE & Profitability Analysis
GH vs Healthcare Sector: How Guardant Health, Inc. Compares
How Guardant Health, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Guardant Health, Inc. Stock Overvalued? GH Valuation Analysis 2026
Based on fundamental analysis, Guardant Health, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Guardant Health, Inc. Balance Sheet: GH Debt, Cash & Liquidity
GH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Guardant Health, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-4.28 indicates the company is currently unprofitable.
GH Revenue Growth, EPS Growth & YoY Performance
GH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $203.5M | -$95.2M | $-0.77 |
| Q3 2025 | $191.5M | -$92.7M | $-0.74 |
| Q2 2025 | $177.2M | -$99.9M | $-0.80 |
| Q1 2025 | $168.5M | -$95.2M | $-0.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Guardant Health, Inc. Dividends, Buybacks & Capital Allocation
GH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Guardant Health, Inc. (CIK: 0001576280)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GH
What is the AI rating for GH?
Guardant Health, Inc. (GH) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 92% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GH's key strengths?
Claude: Substantial cash reserves of 989.3M provide near-term runway. Strong current ratio of 4.68x and quick ratio of 4.39x ensure short-term liquidity needs are met. ChatGPT: Strong near-term liquidity with 4.84x current ratio and $378.20M in cash. Meaningful revenue base of $982.02M provides operating scale to build on.
What are the risks of investing in GH?
Claude: Negative stockholders equity of -181.1M indicates company liabilities exceed assets by this amount. Operating cash flow is deeply negative at -65.6M; company cannot fund operations from business. ChatGPT: Profitability remains very weak, with large operating and net losses despite nearly $1B in revenue. Negative stockholders equity indicates a stressed balance sheet and limits financial flexibility.
What is GH's revenue and growth?
Guardant Health, Inc. reported revenue of $301.7M.
Does GH pay dividends?
Guardant Health, Inc. does not currently pay dividends.
Where can I find GH SEC filings?
Official SEC filings for Guardant Health, Inc. (CIK: 0001576280) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GH's EPS?
Guardant Health, Inc. has a diluted EPS of $-0.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GH a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Guardant Health, Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GH stock overvalued or undervalued?
Valuation metrics for GH: ROE of N/A (sector avg: 15%), net margin of -37.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GH stock in 2026?
Our dual AI analysis gives Guardant Health, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GH's free cash flow?
Guardant Health, Inc.'s operating cash flow is $-65.6M, with capital expenditures of $5.6M. FCF margin is -23.6%.
How does GH compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -37.2% (avg: 12%), ROE N/A (avg: 15%), current ratio 4.68 (avg: 2).