SOPH — SOPHiA GENETICS S.A.

SOPHiA GENETICS Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $21.7 million, a 22% increase year-over-year from $17.8 million.
• Adjusted Gross Margin: 75.4%, slightly down from 75.7% in Q1 2025.
• Operating Loss: $17.3 million, compared to a loss of $16 million in the prior year.
• Adjusted EBITDA: Loss of $9.2 million, an improvement from a loss of $9.5 million year-over-year.
• Cash Burn: $19.5 million, up from $11.7 million in Q1 2025, attributed to higher bonuses and lab expansion costs.
• Net Dollar Retention: Increased to 117%, up from 103% in the prior year.
• Core Genomic Customers: 537 institutions, up from 490 a year ago.

2. Strategic Updates and Business Highlights

• Record Analysis Volume: 108,000 genomic analyses performed in Q1, a 16% increase from the previous year.
• Expansion in U.S. Market: Increased momentum in decentralized testing, with partnerships expanding in New York, including Mount Sinai and NYU Langone Health.
• New Applications Growth: Significant adoption of new applications like MSK Impact and MSK Access, with 100 customers signed globally.
• Biopharma Momentum: Positive growth in biopharma revenue, with new contracts signed with major companies like AstraZeneca and Johnson & Johnson.
• Innovation Focus: Plans to expand platform capabilities into multimodal applications and support complex NGS applications.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Reaffirmed at $92 million to $94 million, representing 20% to 22% growth.
• Adjusted EBITDA Loss Guidance: Expected to be between $29 million and $32 million, improved from $41.5 million in 2025.
• Market Positioning: Confidence in approaching adjusted EBITDA breakeven by the end of 2026 and moving to positive adjusted EBITDA in the second half of 2027.

4. Bad News, Challenges, or Points of Concern

• Latin America Performance: Revenue in this region was soft, down over 30%, prompting changes in leadership and strategy to improve performance.
• Operating Expenses: Increased to $32.0 million from $28.2 million, impacted by foreign exchange headwinds and legal expenses related to a patent infringement lawsuit.
• Cash Burn Increase: Higher cash burn due to increased bonuses and investments in lab expansion, raising concerns about cash flow management.

5. Notable Q&A Insights

• Gross Margin Sustainability: Management expressed confidence in maintaining or improving gross margins, citing positive pricing dynamics and scalability of the platform.
• Cost Reduction Actions: Small headcount reductions were made, primarily in G&A functions, to improve efficiency without significantly impacting growth.
• Customer Onboarding Confidence: Management is optimistic about the onboarding of new customers, particularly in the U.S., with expectations for continued growth in the second half of 2026.
• Pharma Business Dynamics: The biopharma segment is expected to accelerate growth, but management remains conservative in their forecasts, focusing on sustainable and recurring revenue models.

Overall, SOPHiA GENETICS demonstrated strong growth in Q1 2026, with significant advancements in genomic analysis and biopharma partnerships, despite challenges in certain regions and rising operational costs. The company remains focused on innovation and sustainable growth as it navigates the evolving landscape of precision medicine.