SOPH — SOPHiA GENETICS S.A.

SOPHiA GENETICS Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $23.3 million, up 27% year-over-year from $18.3 million in Q2 2025.
• Analysis Volume: 115,000 patient analyses, a 22% increase year-over-year.
• U.S. Revenue Growth: 64% year-over-year, with volume growth of 60%.
• Net Dollar Retention: 117%, up from 107% in the prior year.
• Adjusted EBITDA Loss: $8.8 million, improved by 27% year-over-year from a loss of $12 million.
• Gross Margin: 64.6%, down from 67% year-over-year; adjusted gross margin at 72.1%, down from 74.4%.
• Operating Expenses: $35.1 million, up from $30.8 million in Q2 2025.
• Cash Position: $107.7 million in cash and cash equivalents after raising $57.5 million in a public offering.

2. Strategic Updates and Business Highlights

• CEO Transition: Ross Muken emphasized the company's mission to become the AI platform for precision medicine.
• Growth Strategy: Focus on scaling genomic diagnostics, evolving applications into regulated companion diagnostics, and leveraging data for clinical intelligence.
• New Partnerships: Significant collaborations with AstraZeneca for two companion diagnostic programs, marking a milestone for SOPHiA.
• Joint Venture: Formation of a joint venture with Memorial Sloan Kettering to develop AI-driven oncology solutions.
• Customer Acquisition: 24 new customers added in Q2, including notable institutions like the Children's Hospital of Philadelphia.

3. Forward Guidance and Outlook

• Revenue Guidance: Raised to $94 million - $96 million for FY 2026, reflecting 22% - 24% growth.
• Adjusted EBITDA Guidance: Expected loss of $29 million - $32 million for FY 2026, an improvement from $41.5 million in FY 2025.
• Profitability Target: Approaching adjusted EBITDA breakeven by the end of 2026, with expectations of positive adjusted EBITDA in H2 2027.

4. Bad News, Challenges, or Points of Concern

• Gross Margin Decline: Adjusted gross margin decreased due to increased costs in the biopharma segment and new customer implementations.
• Operating Expenses: Increased operating expenses due to restructuring costs and legal expenses related to ongoing litigation with Guardant Health.
• Implementation Backlog: Despite strong bookings, there is a significant backlog in customer implementations, primarily due to client-side delays.

5. Notable Q&A Insights

• U.S. Market Growth: Growth is broad-based across various customer types, with strong demand for exome and hematological oncology products.
• Cross-Selling Applications: Average applications per customer are currently over 2.5, indicating significant room for upselling.
• Headcount Management: The company is selectively adding sales and implementation resources to support growth without significantly increasing overall headcount.
• Customer Implementation Dynamics: The backlog remains strong, with most delays attributed to client-side issues rather than SOPHiA's capabilities.
• Pharma Contracts: New contracts with AstraZeneca are expected to significantly contribute to revenue starting in 2027, with a modest impact in the second half of 2026.

This summary encapsulates SOPHiA GENETICS' performance and strategic direction during Q2 2026, highlighting both achievements and challenges as the company aims for sustained growth in the precision medicine landscape.