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BOSTON and ROLLE, Switzerland, Nov. 4, 2025 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a global leader in AI-driven precision medicine, today reported financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Financial Results
2025 Financial Outlook
"Q3 was an excellent quarter for SOPHiA GENETICS, with revenue growth accelerating for a third consecutive quarter to 23% as new business continues to come online," said Jurgi Camblong, PhD., Chief Executive Officer and Co-founder. "We also demonstrated strong operating leverage as platform scalability and rigorous cost discipline resulted in a year-over-year adjusted EBITDA loss improvement when excluding the impact of elevated Swiss social charges on equity-based compensation."
Camblong added, "Looking ahead, new business momentum remains strong. We signed an impressive cohort of 31 new customers in Q3, with an average contract value of those new signings up 180% year-over-year. We also delivered strong growth in the U.S., drove broad adoption of our Liquid Biopsy offering, and refreshed our momentum with BioPharma customers. Our AI-powered precision medicine platform, SOPHiA DDMTM, perfectly positions us to take advantage of growing market demand and deliver future growth."
Third Quarter 2025 Business Highlights
Expanding usage of SOPHiA DDMTM with existing customers
Landing new SOPHiA DDMTM customers to fuel future growth
Driving strong business growth in the U.S. market
Accelerating growth with new applications
Leveraging SOPHiA DDMTM to deliver value to BioPharma partners
Growing sustainably by maintaining an obsession with operational excellence
Earnings Call and Webcast Information
SOPHiA GENETICS will host a conference call and live webcast to discuss the third quarter 2025 results on Tuesday, November 4, 2025, at 8:00 a.m. (08:00) Eastern Time / 2:00 p.m. (14:00) Central European Time. The call will be webcast live on the SOPHiA GENETICS Investor Relations website, ir.sophiagenetics.com. Additionally, an audio replay of the conference call will be available on the SOPHiA GENETICS website after its completion.
Non-IFRS Financial Measures
Other than with respect to revenue, the Company only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted gross margin (non-IFRS measure) to gross margin (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying amortization of capitalized research & development expenses that are necessary for such reconciliation. In addition, the Company does not provide a reconciliation of forward-looking adjusted operating loss (non-IFRS measure) to operating loss (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying amortization of capitalized research & development expenses and intangible assets, share-based compensation expenses, the non-cash portion of pensions paid in excess of actual contributions, certain transaction costs and litigation expenses that are necessary for such reconciliation.
To provide investors with additional information regarding the company's financial results, SOPHiA GENETICS has disclosed here and elsewhere in this earnings release the following non-IFRS measures:
These non-IFRS measures are key measures used by SOPHiA GENETICS management and board of directors to evaluate its operating performance and generate future operating plans. The exclusion of certain expenses facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable charges. Accordingly, the company believes that these non-IFRS measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors.
These non-IFRS measures have limitations as financial measures, and you should not consider them in isolation or as a substitute for analysis of SOPHiA GENETICS' results as reported under IFRS. Some of these limitations are:
Because of these limitations, you should consider these non-IFRS measures alongside other financial performance measures, including various cash flow metrics, net income and other IFRS results.
The tables below provide the reconciliation of the most comparable IFRS measures to the non-IFRS measures for the periods presented.
Presentation of Constant Currency Revenue
SOPHiA GENETICS operates internationally, and its revenues are generated primarily in the U.S. dollar, the euro and Swiss franc and, to a lesser extent, British pound, Australian dollar, Brazilian real, Turkish lira and Canadian dollar depending on the company's customers' geographic locations. Changes in revenue include the impact of changes in foreign currency exchange rates. We present the non-IFRS financial measure "constant currency revenue" (or similar terms such as constant currency revenue growth) to show changes in revenue without giving effect to period-to-period currency fluctuations. Under IFRS, revenues received in local (non-U.S. dollar) currencies are translated into U.S. dollars at the average monthly exchange rate for the month in which the transaction occurred. When the company uses the term "constant currency", it means that it has translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. The company then calculates the difference between the IFRS revenue and the constant currency revenue to yield the "constant currency impact" for the current period.
The company's management and board of directors use constant currency revenue growth to evaluate growth and generate future operating plans. The exclusion of the impact of exchange rate fluctuations provides comparability across reporting periods and reflects the effects of customer acquisition efforts and land-and-expand strategy. Accordingly, it believes that this non-IFRS measure provides useful information to investors and others in understanding and evaluating revenue growth in the same manner as the management and board of directors. However, this non-IFRS measure has limitations, particularly as the exchange rate effects that are eliminated could constitute a significant element of its revenue and could significantly impact performance and prospects. Because of these limitations, you should consider this non-IFRS measure alongside other financial performance measures, including revenue and revenue growth presented in accordance with IFRS and other IFRS results.
The table below provides the reconciliation of the most comparable IFRS growth measures to the non-IFRS growth measures for the current period.
About SOPHiA GENETICS
SOPHiA GENETICS (Nasdaq: SOPH) is a cloud-native healthcare technology company on a mission to expand access to data-driven medicine by using AI to deliver world-class care to patients with cancer and rare disorders across the globe. It is the creator of SOPHiA DDM™, a platform that analyzes complex genomic and multimodal data and generates real-time, actionable insights for a broad global network of hospital, laboratory, and biopharma institutions. For more information, visit SOPHiAGENETICS.COM and connect with us on LinkedIn.
Forward-Looking Statements
This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding SOPHiA GENETICS future results of operations and financial position, business strategy, products and technology, partnerships and collaborations, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on SOPHiA GENETICS' management's beliefs and assumptions and on information currently available to the company's management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in the company's filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this press release speak only as of its date. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in the company's expectations or any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.
|
SOPHiA GENETICS SA Interim Condensed Consolidated Statements of Loss (Amounts in USD thousands, except per share data) (Unaudited) |
||||||||
|
|
|
|
|
|
||||
|
|
|
Three months ended |
|
Nine months ended |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Revenue |
|
$ 19,462 |
|
$ 15,853 |
|
$ 55,564 |
|
$ 47,440 |
|
Cost of revenue |
|
(6,555) |
|
(5,199) |
|
(18,179) |
|
(15,605) |
|
Gross profit |
|
12,907 |
|
10,654 |
|
37,385 |
|
31,835 |
|
Research and development costs |
|
(8,067) |
|
(7,874) |
|
(25,678) |
|
(25,223) |
|
Selling and marketing costs |
|
(8,670) |
|
(7,306) |
|
(26,238) |
|
(21,515) |
|
General and administrative costs |
|
(13,889) |
|
(10,880) |
|
(37,790) |
|
(34,288) |
|
Other operating (loss) income, net |
|
(143) |
|
43 |
|
(69) |
|
67 |
|
Operating loss |
|
(17,862) |
|
(15,363) |
|
(52,390) |
|
(49,124) |
|
Interest income |
|
622 |
|
855 |
|
1,491 |
|
2,707 |
|
Interest expense |
|
(1,663) |
|
(588) |
|
(2,881) |
|
(1,232) |
|
Fair value adjustments on warrant obligations |
|
(607) |
|
182 |
|
(587) |
|
266 |
|
Foreign exchange (losses) gains, net |
|
131 |
|
(3,394) |
|
(3,546) |
|
655 |
|
Loss before income taxes |
|
(19,379) |
|
(18,308) |
|
(57,913) |
|
(46,728) |
|
Income tax expense |
|
(642) |
|
(130) |
|
(1,907) |
|
(607) |
|
Loss for the period |
|
(20,021) |
|
(18,438) |
|
(59,820) |
|
(47,335) |
|
Attributable to the owners of the parent |
|
(20,021) |
|
(18,438) |
|
(59,820) |
|
(47,335) |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share |
|
$ (0.30) |
|
$ (0.28) |
|
$ (0.89) |
|
$ (0.72) |
|
SOPHiA GENETICS SA Interim Condensed Consolidated Statements of Comprehensive Loss (Amounts in USD thousands) (Unaudited) |
||||||||
|
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|
|
|
|
||||
|
|
|
Three months ended |
|
Nine months ended |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Loss for the period |
|
$ (20,021) |
|
$ (18,438) |
|
$ (59,820) |
|
$ (47,335) |
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
Items that may be reclassified to statement of loss |
|
|
|
|
|
|
|
|
|
Currency translation adjustments |
|
(366) |
|
6,990 |
|
11,230 |
|
(2,149) |
|
Total items that may be reclassified to statement of loss |
|
(366) |
|
6,990 |
|
11,230 |
|
(2,149) |
|
Items that will not be reclassified to statement of loss (net of tax) |
|
|
|
|
|
|
|
|
|
Remeasurement of defined benefit plans |
|
152 |
|
(173) |
|
251 |
|
(231) |
|
Total items that will not be reclassified to statement of loss |
|
152 |
|
(173) |
|
251 |
|
(231) |
|
Other comprehensive (loss) income for the period |
|
$ (214) |
|
$ 6,817 |
|
$ 11,481 |
|
$ (2,380) |
|
Total comprehensive loss for the period |
|
$ (20,235) |
|
$ (11,621) |
|
$ (48,339) |
|
$ (49,715) |
|
Attributable to owners of the parent |
|
$ (20,235) |
|
$ (11,621) |
|
$ (48,339) |
|
$ (49,715) |
|
SOPHiA GENETICS SA Interim Condensed Consolidated Balance Sheets (Amounts in USD thousands) (Unaudited) |
||||
|
|
|
|
|
|
|
|
|
September 30, 2025 |
|
December 31, 2024 |
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ 81,610 |
|
$ 80,226 |
|
Accounts receivable |
|
8,455 |
|
7,436 |
|
Inventory |
|
6,680 |
|
5,868 |
|
Prepaids and other current assets |
|
6,735 |
|
5,875 |
|
Total current assets |
|
103,480 |
|
99,405 |
|
Non-current assets |
|
|
|
|
|
Property and equipment |
|
4,915 |
|
5,209 |
|
Intangible assets |
|
34,681 |
|
28,998 |
|
Right-of-use assets |
|
12,706 |
|
14,168 |
|
Deferred tax assets |
|
1,666 |
|
1,767 |
|
Other non-current assets |
|
6,010 |
|
5,762 |
|
Total non-current assets |
|
59,978 |
|
55,904 |
|
Total assets |
|
$ 163,458 |
|
$ 155,309 |
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
|
$ 6,056 |
|
$ 5,220 |
|
Accrued expenses |
|
16,718 |
|
13,217 |
|
Deferred contract revenue |
|
10,040 |
|
5,732 |
|
Lease liabilities, current portion |
|
2,609 |
|
2,190 |
|
Warrant obligations |
|
1,504 |
|
444 |
|
Total current liabilities |
|
36,927 |
|
26,803 |
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
|
47,581 |
|
13,237 |
|
Lease liabilities, net of current portion |
|
13,183 |
|
14,603 |
|
Defined benefit pension liabilities |
|
4,409 |
|
3,839 |
|
Other non-current liabilities |
|
671 |
|
337 |
|
Total non-current liabilities |
|
65,844 |
|
32,016 |
|
Total liabilities |
|
102,771 |
|
58,819 |
|
Equity |
|
|
|
|
|
Share capital |
|
4,188 |
|
4,188 |
|
Share premium |
|
472,438 |
|
472,244 |
|
Treasury shares |
|
(632) |
|
(702) |
|
Other reserves |
|
84,790 |
|
61,037 |
|
Accumulated deficit |
|
(500,097) |
|
(440,277) |
|
Total equity |
|
60,687 |
|
96,490 |
|
Total liabilities and equity |
|
$ 163,458 |
|
$ 155,309 |
|
SOPHiA GENETICS SA Interim Condensed Consolidated Statements of Cash Flows (Amounts in USD thousands) (Unaudited) |
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|
|
|
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|
|
|
Nine months ended September 30, |
||
|
|
|
2025 |
|
2024 |
|
|
|
|
|
(As Recast)1 |
|
Operating activities |
|
|
|
|
|
Loss before tax |
|
$ (57,913) |
|
$ (46,728) |
|
Adjustments for non-monetary items |
|
|
|
|
|
Depreciation |
|
2,949 |
|
3,439 |
|
Amortization |
|
4,142 |
|
2,870 |
|
Finance expense (income), net |
|
5,009 |
|
(2,333) |
|
Fair value adjustments on warrant obligations |
|
587 |
|
(266) |
|
Expected credit loss allowance increase (reversal) |
|
(7) |
|
(252) |
|
Share-based compensation |
|
12,337 |
|
11,410 |
|
Movements in provisions and pensions |
|
492 |
|
246 |
|
Research tax credit |
|
(752) |
|
(460) |
|
Working capital changes |
|
|
|
|
|
Decrease (increase) in accounts receivable |
|
31 |
|
3,813 |
|
Decrease (increase) in prepaids and other assets |
|
2,060 |
|
(420) |
|
Decrease (increase) in inventory |
|
(165) |
|
48 |
|
Increase (decrease) in accounts payables, accrued expenses, |
|
3,678 |
|
(4,822) |
|
Cash used in operating activities |
|
(27,552) |
|
(33,455) |
|
Income tax paid |
|
(205) |
|
(374) |
|
Net cash flows used in operating activities |
|
(27,757) |
|
(33,829) |
|
Investing activities |
|
|
|
|
|
Purchase of property and equipment |
|
(236) |
|
(187) |
|
Acquisition of intangible assets |
|
(223) |
|
(195) |
|
Capitalized development costs |
|
(5,697) |
|
(5,854) |
|
Purchase of equity investments held at fair value |
|
(493) |
|
— |
|
Interest received |
|
1,482 |
|
2,741 |
|
Net cash flow used in investing activities |
|
(5,167) |
|
(3,495) |
|
Financing activities |
|
|
|
|
|
Proceeds from exercise of share options |
|
199 |
|
370 |
|
Interest paid |
|
(2,805) |
|
(1,133) |
|
Proceeds from borrowings, net of transaction costs |
|
34,563 |
|
13,930 |
|
Payments of principal portion of lease liabilities |
|
(1,395) |
|
(2,142) |
|
Net cash flow provided by financing activities |
|
30,562 |
|
11,025 |
|
Increase (decrease) in cash and cash equivalents |
|
(2,362) |
|
(26,299) |
|
Effect of exchange differences on cash balances |
|
3,746 |
|
(1,165) |
|
Cash and cash equivalents at beginning of the year |
|
80,226 |
|
123,251 |
|
Cash and cash equivalents at end of the period |
|
$ 81,610 |
|
$ 95,787 |
|
|
|
1 Refer to "Note 1—Change in accounting policies—Statement of Cash Flows - Interest Classification", included as Exhibit 99.1 to the Report on Form 6-K to which this report is included as Exhibit 99.3, for details on change in accounting policy. |
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SOPHiA GENETICS SA Reconciliation of IFRS Net Loss to Adjusted EBITDA (Amounts in USD thousands) (Unaudited) |
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|
Three months ended |
|
Nine months ended |
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|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
IFRS loss for the period |
|
$ (20,021) |
|
$ (18,438) |
|
$ (59,820) |
|
$ (47,335) |
|
Exclude the impact of: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
$ 1,022 |
|
$ 1,152 |
|
$ 2,949 |
|
$ 3,439 |
|
Amortization |
|
1,402 |
|
1,061 |
|
4,142 |
|
2,870 |
|
Interest income |
|
(622) |
|
(855) |
|
(1,491) |
|
(2,707) |
|
Interest expense |
|
1,663 |
|
588 |
|
2,881 |
|
1,232 |
|
Fair value adjustments on warrant obligations |
|
607 |
|
(182) |
|
587 |
|
(266) |
|
Foreign exchange losses (gains), net |
|
(131) |
|
3,394 |
|
3,546 |
|
(655) |
|
Income tax expense |
|
642 |
|
130 |
|
1,907 |
|
607 |
|
Share-based compensation expense(1)(5) |
|
4,146 |
|
3,613 |
|
12,337 |
|
11,410 |
|
Non-cash pension expense(2) |
|
87 |
|
106 |
|
262 |
|
279 |
|
Transaction costs(6) |
|
445 |
|
— |
|
445 |
|
— |
|
Litigation expenses(7) |
|
605 |
|
— |
|
605 |
|
— |
|
Adjusted EBITDA |
|
$ (10,154) |
|
$ (9,431) |
|
$ (31,649) |
|
$ (31,126) |
|
SOPHiA GENETICS SA Reconciliation of IFRS Revenue Growth to Constant Currency Revenue Growth (Amounts in USD thousands, except for %) (Unaudited) |
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|
|
|
|
|
||||||||
|
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
|
2025 |
|
2024 |
|
Growth |
|
2025 |
|
2024 |
|
Growth |
|
IFRS revenue |
|
$ 19,462 |
|
$ 15,853 |
|
23 % |
|
$ 55,564 |
|
$ 47,440 |
|
17 % |
|
Current period constant currency impact |
|
(698) |
— |
— |
0 |
|
|
(863) |
0 |
— |
|
|
|
Constant currency revenue |
|
$ 18,764 |
|
$ 15,853 |
|
18 % |
|
$ 54,701 |
|
$ 47,440 |
|
15 % |
|
SOPHiA GENETICS SA Reconciliation of IFRS to Adjusted Gross Profit and Gross Profit Margin (Amounts in USD thousands, except percentages) (Unaudited) |
||||||||
|
|
|
|
|
|
||||
|
|
|
Three months ended |
|
Nine months ended |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Revenue |
|
$ 19,462 |
|
$ 15,853 |
|
$ 55,564 |
|
$ 47,440 |
|
Cost of revenue |
|
(6,555) |
|
(5,199) |
|
(18,179) |
|
(15,605) |
|
Gross profit |
|
$ 12,907 |
|
$ 10,654 |
|
$ 37,385 |
|
$ 31,835 |
|
Amortization of capitalized research and development expenses(3) |
|
1,329 |
|
942 |
|
3,927 |
|
2,463 |
|
Adjusted gross profit |
|
$ 14,236 |
|
$ 11,596 |
|
$ 41,312 |
|
$ 34,298 |
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin |
|
66.3 % |
|
67.2 % |
|
67.3 % |
|
67.1 % |
|
Amortization of capitalized research and development expenses(3) |
|
6.8 % |
|
5.9 % |
|
7.1 % |
|
5.2 % |
|
Adjusted gross profit margin |
|
73.1 % |
|
73.1 % |
|
74.4 % |
|
72.3 % |
|
SOPHiA GENETICS SA Reconciliation of IFRS to Adjusted Operating Loss for the Period (Amounts in USD thousands) (Unaudited) |
||||||||
|
|
|
|
|
|
||||
|
|
|
Three months ended |
|
Nine months ended |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Operating loss |
|
$ (17,862) |
|
$ (15,363) |
|
$ (52,390) |
|
$ (49,124) |
|
Amortization of capitalized research & development expenses(3) |
|
1,329 |
|
942 |
|
3,927 |
|
2,463 |
|
Amortization of intangible assets(4) |
|
73 |
|
119 |
|
215 |
|
407 |
|
Share-based compensation expense(1)(5) |
|
4,146 |
|
3,613 |
|
12,337 |
|
11,411 |
|
Non-cash pension expense(2) |
|
87 |
|
106 |
|
262 |
|
279 |
|
Transaction costs(6) |
|
445 |
|
— |
|
445 |
|
— |
|
Litigation expenses(7) |
|
605 |
|
— |
|
605 |
|
— |
|
Adjusted operating loss |
|
$ (11,176) |
|
$ (10,583) |
|
$ (34,598) |
|
$ (34,564) |
|
Notes to the Reconciliation of IFRS to Adjusted Financial Measures Tables |
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|
|
|
|
(1) |
Share-based compensation expense represents the cost of equity awards issued to our directors, officers, and employees. The fair value of awards is computed at the time the award is granted and is recognized over the vesting period of the award by a charge to the income statement and a corresponding increase in other reserves within equity. These expenses do not have a cash impact but remain a recurring expense for our business and represent an important part of our overall compensation strategy. |
|
(2) |
Non-cash pension expense consists of the amount recognized in excess of actual contributions made to our defined pension plans to match actuarial expenses calculated for IFRS purposes. The difference represents a non-cash expense but remains a recurring expense for our business as we continue to make contributions to our plans for the foreseeable future. |
|
(3) |
Amortization of capitalized research and development expenses consists of software development costs amortized using the straight-line method over an estimated life of five years. These expenses do not have a cash impact but remain a recurring expense generated over the course of our research and development initiatives. |
|
(4) |
Amortization of intangible assets consists of costs related to intangible assets amortized over the course of their useful lives. These expenses do not have a cash impact, but we could continue to generate such expenses through future capital investments. |
|
(5) |
Share-based compensation expense does not include social charges on equity-based compensation of $1.3 million and $(0.7) million for the three months ended September 30, 2025 and 2024, respectively, and $1.3 million and $(0.4) million for the nine months ended September 30, 2025 and 2024, respectively. |
|
(6) |
Transaction costs consists of expenses incurred in connection with the Company's shelf registration statement and the ATM program. |
|
(7) |
Litigation expenses consists of expenses related to the company's defense of lawsuits filed by Guardant Health. |
SOURCE SOPHiA GENETICS
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