Guardant Health, Inc. Liquidation Value

Guardant Health's liquidation posture as of March 31, 2026 is deeply negative, consistent with prior periods. MFFAIS reports a cash liquidation value of approximately negative $979M, liquid liquidation value of negative $842M, and operating liquidation value of negative $758M. Under a wind-down lens, total assets of $1.92B are subject to material haircuts while total liabilities of $2.10B remain at face value, producing negative equity recovery of approximately negative $181M at book — and materially worse on a haircut basis.

The dominant liability is $1.50B in convertible senior notes (noncurrent, face value). These notes are the single largest recovery impediment; under liquidation they extinguish at face with no offset from any going-concern premium embedded in the conversion feature. The company carries two tranches: 1.25% notes due 2031 and 0.00% notes due 2033, both issued within the last 18 months. The 0.00% notes issued November 2025 represent a structural change from the prior filing (the 10-K for year-end December 31, 2025, which is the PRIOR_FILING_BODY provided), as GH substantially built out its convertible debt stack in late 2024 through early 2026 via exchange transactions and new issuances.

On the asset side, liquid assets are the primary recovery source. Cash and equivalents of $989M receive a 100% haircut rate; marketable securities of $1.12B (mostly commercial paper and US Treasuries, amortized cost $1.12B, minimal unrealized loss of $16K) are near par. Combined, the liquid book approximates $1.10B in restricted and unrestricted cash plus $113M in current-classified AFS securities and $1.00B in noncurrent AFS securities — total investable assets supporting approximately $1.20B in stated liquidity. These assets drive the relatively less negative liquid liquidation value versus the operating or cash-only scenarios. AR of $137M receives a 90-95% haircut, inventory of $84M receives a 60% haircut (material write-down risk given lab consumables and reagent profile), and PP&E of $150M net (gross $355M, accumulated depreciation $205M) receives a 50-70% recovery — laboratory buildout with substantial leasehold improvements that command lower secondary-market bids. Goodwill of $77M and intangibles net of $26M ($4.7M finite-lived plus $20.8M indefinite-lived, likely in-process technology and trade names) carry zero recovery under the lens.

Operating lease liabilities total $201M ($28M current, $173M noncurrent) against undiscounted payments of $231M; these obligations survive wind-down. OtherLiabilitiesNoncurrent of $128M — which the filing identifies as primarily contingent consideration related to acquisition earnouts and ASC 842 deferred tenant improvement liabilities — also remain at face. The accumulated deficit is $3.11B, up from prior periods, reflecting ongoing operating losses ($112M net loss in Q1 2026 vs. $95M in Q1 2025). The filing discusses the $5B in potential ADLT revenue adjustments and complex variable consideration estimation for Shield revenue in MD&A, but does not separately tag reimbursement contingency reserves in XBRL — any prospective clawback or downward revision to variable consideration would impair AR recovery. The company's deferred revenue of $57M ($48M current, $9M noncurrent) is a face-value liability under liquidation and is not an asset offset.