Guardant Health, Inc.

Worth knowing

• Paying shareholders without free cash flow. Paid out $45M over the 3 fiscal years to 2025 with -$853M of free cash flow.

  Guardant Health returned $45M in buybacks and dividends over three fiscal years while its free cash flow totalled -$853M. The money came from its cash pile or from borrowing.

• Negative shareholders' equity. Liabilities exceed assets on the balance sheet.

  Guardant Health's liabilities exceed its assets on the balance sheet. Large share buybacks can cause this in healthy companies, but so can accumulated losses; either way, debt-based ratios need care.

• Shareholders being diluted. Shares outstanding up 31% from December 2022 to July 2026.

  Guardant Health had 31% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Guardant Health had 31% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Stock pay outran buybacks. Stock-based pay expense $397M vs $45M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years Guardant Health recorded $397M of stock-based pay expense and spent $45M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Guardant Health recorded $397M of stock-based pay expense and spent $45M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.