SOPH — SOPHiA GENETICS S.A.

SOPHiA GENETICS S.A. Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 2025 Revenue: $21.7 million, up 22% year-over-year from $17.7 million in Q4 2024.
• Full Year 2025 Revenue: $77.3 million, representing a 19% increase from 2024.
• Gross Profit (Q4): $14.7 million, with a gross margin of 67.7%.
• Adjusted Gross Profit (Q4): $16 million, adjusted gross margin at 73.9%.
• Operating Loss (Q4): $18.5 million, compared to $17.4 million in Q4 2024.
• Total Cash Burn for 2025: $50.4 million, improving 6% year-over-year.
• Annualized Revenue Churn: Less than 1%, with net dollar retention increasing to 115%.

2. Strategic Updates and Business Highlights

• Customer Growth: Signed 124 new customers in 2025, with an average contract value up 120% year-over-year.
• Platform Enhancements: Launched a new generation of SOPHiA DDM, increasing processing capacity by 10 times and reducing whole genome analysis time to under 6 hours.
• Major Partnerships: Collaborated with MD Anderson for co-development of a whole transcriptome test and signed two large U.S. healthcare systems for genomic testing.
• Market Expansion: Strong growth in EMEA (22% in Q4) and North America (45% in Q4), with significant contributions from Belgium, Germany, and Asia Pacific.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Expected to be between $92 million and $94 million, representing 20%-22% growth.
• Adjusted EBITDA Loss for 2026: Projected between $29 million and $32 million, an improvement from $41.5 million in 2025.
• Growth Drivers: Focus on U.S. market expansion, liquid biopsy applications, and biopharma partnerships expected to drive revenue growth.

4. Bad News, Challenges, or Points of Concern

• Operating Loss: Continued operating losses, with a total of $70.9 million for 2025, raising concerns about profitability.
• Foreign Exchange Impact: Adverse foreign exchange movements increased operating expenses, particularly due to the strengthening Swiss franc.
• Litigation Costs: Ongoing patent infringement claims from Guardant Health resulted in legal expenses of approximately $1.8 million.
• Market Competition: Increased competition from other laboratories in the U.S. market, which could pressure market share and pricing.

5. Notable Q&A Insights

• Growth Drivers: Management emphasized that the ramping of MSK-ACCESS and other applications will significantly contribute to revenue in 2026.
• Customer Implementation: The company has improved its customer onboarding process, completing over 100 implementations in 2025, which is expected to enhance revenue generation.
• Sales Strategy: Plans to expand the U.S. sales team incrementally, focusing on high-impact hires to support growth without significantly increasing costs.
• Biopharma Partnerships: Management noted a renewed interest from biopharma companies, with expectations for increased contributions to revenue, although the ramp-up period for these contracts can be lengthy.

Overall, SOPHiA GENETICS S.A. demonstrated strong growth in customer acquisition and revenue, but challenges remain in achieving profitability and managing competitive pressures. The company is optimistic about its future growth trajectory, driven by strategic initiatives and expanding partnerships.