SOPH

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8 a.m. ET Head of Strategy - Kellen Sanger Chief Executive Officer - Ross Muken Chief Financial Officer - George Cardoza Joelle Good morning. My name is Joelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the SOPHiA GENETICS Second Quarter 2026 Earnings Conference Call. [Operator Instructions] This call is being recorded on Tuesday, August 4, 2026. I would now like to turn the conference over to Kellen Sanger, SOPHiA GENETICS Head of Strategy. You may begin. Kellen Sanger Thank you, and good morning, everyone. Welcome to the SOPHiA GENETICS Second Quarter 2026 Earnings Conference Call. Joining me today to discuss the results are Ross Muken, our Chief Executive Officer; and George Cardoza, our Chief Financial Officer. I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward-looking statements. Additional information regarding these risks, uncertainties and factors that could cause results to differ appears in the press release issued by SOPHiA GENETICS today and in the documents and reports filed by SOPHiA GENETICS from time to time with the Securities and Exchange Commission. During this call, we will make -- we will present both IFRS and non-IFRS financial measures. A reconciliation of IFRS to non-IFRS measures is included in today's earnings press release, which is available on our website. With that, I'll now turn the call over to Ross. Ross Muken Thanks, Kellen, and good morning, everyone. Today is my first earnings call as CEO. So before we jump into the quarter, let me tell you about where we are as a company and where we're going. Since SOPHiA was founded in 2011, the mission has not changed. Jurgi started SOPHiA with a dream to use genomic and clinical data to improve patient outcomes across the world. Today, the destination is just as clear. We intend to become the AI platform for precision medicine, the connected intelligence layer that makes every clinical decision smarter than the one before it. What has changed over the past decade is how close we are to the destination and how clear the path forward has become. Our business today is healthier than ever. Revenue is accelerating, the network is built, the platform thesis is proven, and customer trust, which we have earned across more than 1,000 institutions in 75 countries is a moat that cannot be bought or replicated. This is a company built on a proven foundation with a large market ahead of it and everything it needs to operate at scale that it has not yet reached. My job is to deliver that scale for patients who deserve better outcomes, for shareholders who trusted in this platform's long-term potential, and for a team that has spent years earning the right to win. The plan for getting there was laid out in the founding strategy. Phase 1 was to build. We spent a decade building a network and AI platform driving widespread adoption and delivering value to clinicians and patients along every step of the way. Phase 2 is to leverage. To leverage our network and its data to power biopharma partnerships, build real-world evidence, and bring clinical intelligence closer to the point of care. This is how SOPHiA DDM becomes the AI platform for precision medicine. As we look ahead, 4 interconnected pillars will fuel our future growth. First, we will continue to scale genomic diagnostics globally, landing new customers and expanding within existing accounts to build the network that powers everything we do. Second, we will evolve our genomic applications into regulated companion diagnostics and software as a medical device to get us closer to the patient, collect even more data, and further extend our network. Third, we will use companion diagnostics and multimodal software as a medical device to evolve our genomic data stream into a true real-world evidence data layer that connects clinical, genomic, and other multimodal data and creates a strategic asset for biopharma and clinicians broadly. And last, we will leverage our data and AI to pioneer clinical intelligence and create tools like digital twins that power decisions across the full clinical picture. In other words, we are past the existential questions. Is the thesis right? Can the network be built? We have answered both. Now we execute. With that, let me update on what we delivered in the second quarter and how we are setting the tone for expected future performance. Revenue grew 27% year-over-year in Q2, and analysis volume was up 22%. We demonstrated strong operating leverage in the quarter as adjusted EBITDA loss improved 27% year-over-year, dropping 60% of our revenue growth down to the bottom line. We continue to push to scale genomic diagnostics globally by performing a record 115,000 patient analyses in Q2, while also fueling future growth with new wins. We landed 24 new customers in the second quarter alone and expanded nicely across existing accounts with net dollar retention of 117%, 1,000 basis points versus last year. The primary drivers behind our performance in the second quarter was growth in the U.S. and in liquid biopsy. In Q2, we delivered 64% year-over-year revenue growth in the U.S. market. This performance was driven by 60% volume growth as many U.S. customers began to come online. The growth has been especially impressive given the increasingly large base in the U.S. To continue fueling this growth, we landed several new customers in the quarter. We signed the Children's Hospital of Philadelphia, the first pediatric hospital in America and a global leader in pediatric oncology. Together, we are developing a new liquid biopsy test optimized for pediatric cancers. I couldn't be more excited for this partnership, and I'm looking forward to working together to help young cancer patients. This signing, as well as other recent momentum in the U.S., is part of a broader trend. In the past 12 months, we have seen an inflection in demand in the U.S. market. As reimbursement rates become more established and denial rates improve, hospitals and labs are waking up to the benefits of launching their own testing capabilities. Central U.S. labs have proven that testing is immensely profitable and that genomic data has significant value. Now U.S. hospitals and labs are making in-house testing part of their core strategy, and those who adopt SOPHiA are seeing significant benefits. The second key growth driver in Q2 was liquid biopsy, where we delivered 80% year-over-year revenue growth. We also signed major new customers in the quarter, including AZ Delta Roeselare, one of the largest hospitals in Belgium, Poly Clinical Reunite Hospital at the University of Foggia in Italy, and Sultan Qaboos Cancer Center in Oman. In total, we've now signed 80 liquid biopsy customers globally, more than half of which are still yet to begin generating revenue, giving us substantial runway to support future growth. As our genomics footprint continues to expand and our network becomes larger, many players in the space have come to recognize the value of our unique global reach and the data being streamed through our platform. AstraZeneca, in particular, has been a key partner of SOPHiA for the past several years. They have contracted us to build AI models for patient selection and trial design, partnered with us to access real-world evidence from our network, and sponsored the deployments of our tests globally. Today, I'm thrilled to announce the latest collaboration between SOPHiA and AZ. This morning, we announced the launch of not one but 2 companion diagnostic programs with AstraZeneca, the first CDx wins in SOPHiA's history. I'm excited now to share a bit of information about each program. For the first CDx program, we will develop our solid tumor application into a decentralized companion diagnostic. The second CDx program will leverage our hematological oncology application to support a therapy for patients with blood cancer. These 2 CDx programs represent the value of our global network and decentralized model as well as our ability to get even closer to the patient and increasingly regulated products. These programs will not only provide a meaningful revenue accelerator for years to come, but they will also provide a foundation to collect even more data about the patient, build real-world evidence assets and develop new and unique clinical intelligence tools. And with these two wins, we are just getting started. Beyond biopharma, we also announced a significant evolution of one of our closest clinical partnerships in Q2. In the spirit of pioneering clinical intelligence, Memorial Sloan Kettering and SOPHiA announced the signing of an MOU to form a joint venture. The JV will combine MSK clinical expertise, testing footprint and unmatched multimodal data assets with SOPHiA's AI platform to accelerate the new generation of precision oncology. Specifically, we will aim to build an AI lab of the future in New York City with infrastructure to develop and launch new applications, support biopharma and build new multimodal clinical intelligence tools. We couldn't be more excited about this partnership, and I look forward to keeping you updated as we move to a definitive agreement in the coming months. To conclude, Q2 was an outstanding quarter. Revenue growth continues to accelerate, and we continue making great progress towards profitability. The market is reshaping itself around intelligence, and we are perfectly positioned to accelerate this movement. As a result, we are raising our full year revenue guidance to $94 million to $96 million or 22% to 24% growth. This reflects our confidence in both our execution and the opportunity ahead. In addition, we also reaffirm our commitment to profitable growth. As stated previously, we expect to be approaching adjusted EBITDA breakeven by the end of this year and crossing over to positive adjusted EBITDA in the second half of 2027. In June, we closed an oversubscribed public offering that raised approximately $57.5 million in gross proceeds. This fundraising brings our cash and cash equivalents to $107.7 million at the end of Q2. We believe our current capital is now sufficient to fund our growth plans and will enable us to control our own destiny going forward. With that, I'll turn the call over to George, who will discuss the results in more detail. George Cardoza Thank you, Ross. As mentioned, Q2 results were strong and our outlook remains positive. Revenue and volume growth accelerated once again as our momentum continues to build. Total revenue for Q2 was $23.3 million compared to $18.3 million in the second quarter of 2025, representing year-over-year growth of 27%. Platform analysis volume was a record 115,000 analysis in Q2, representing year-over-year growth of 22%. From a regional perspective, we delivered strong growth across geographies. North America and specifically the U.S. market continued to be a primary growth driver. As Ross highlighted, U.S. volume grew 60% in Q2 and U.S. revenue grew 64%. Asia Pacific outperformed as well with 27% volume growth and 31% revenue growth. EMEA was also strong and volume growth was roughly in line with the company average. And Latin America picked up a few recent wins, which we will begin to come online. From an application standpoint, HemOnc, rare diseases and liquid biopsy all outperformed. HemOnc volumes were up 34% year-over-year in Q2 and rare disorders were up 35%. Solid tumor testing grew slightly above the company average as well, largely driven by new applications like our CGP test and MSK Impact Flex. Outside of the core genomics business, biopharma contributed nicely to overall growth as recently signed projects continue to deliver, including the major deals announced with AstraZeneca at the beginning of the year. As we've previously stated, biopharma is now an accelerator to our growth rate, and we believe it will continue to be that in future years. Core genomic customers were 542 as of June 30, up from 490 in the prior year period. In the first half of 2026, we implemented 40 new customers who have now entered routine usage. Credit to the team for continuing to manage the recent influx of new customer signings. Despite the strong bookings, pipeline remains strong and healthy. Both clinical and biopharma businesses carry net new business pipelines of over $100 million as the number of large opportunities continues to expand. We believe the market is moving in our direction, and we are excited to continue capitalizing on our opportunity. On the expand side, we continue to grow nicely within existing customers as they add more and more applications. Our net dollar retention for the quarter was 117%, up 1,000 basis points from 107% in the prior year period. In addition, annualized revenue churn remained world-class at less than 1% in Q2 2026, demonstrating the stickiness of our platform once customers join. Gross profit was $15.1 million compared to $12.3 million in the prior year period, representing growth of 23%. Gross margin was 64.6% compared with 67% for the second quarter of 2025. The increase in our pharma business and in other services income led to a slight margin decrease in Q2, which I'll talk more about in just a few minutes. Adjusted gross profit was $16.8 million, an increase of 23% compared to the prior year period. Adjusted gross margin was 72.1% compared to 74.4% in the second quarter of 2025. The decline in gross margin was primarily due to an increase in our biopharma business and our services business. Our biopharma business typically has lower margins at the start of projects, and this quarter, it depressed our gross margins by 0.8%. On the clinical side, we also saw an uptick in our services revenue in Q2 as we help clients set up robotics and efficient NGS workflows in their labs. In this case, we had more R&D resources than usual working on customer implementations. This moves dollars from the R&D line up to the COGS line as they are linked to revenue and we charge for the implementations. These services typically come at smaller margins than our standard analysis margins. Total operating expenses for Q2 were $35.1 million compared to $30.8 million in the prior year period. Some specific items temporarily impacted reported operating expenses and are worth calling out directly as they do not reflect the company's underlying operating performance and have been removed in order to get to the adjusted EBITDA numbers. First, we mentioned during our last earnings call that we executed a series of targeted cost actions in April. These actions will drive material savings in the second half of 2026 and future years. But in Q2, we will be absorbing a restructuring cost of approximately $1.25 million related to terminations and severance. Second, as previously disclosed, Guardant Health filed patent infringement claims against us in the United Kingdom and at the Unified Patent Court in Paris last year. We incurred approximately $1.1 million in related net legal expenses during Q2, which is reflected as a litigation adjustment in our adjusted EBITDA reconciliation. In January, the UPC rejected Guardant's request for provisional measures and ordered them to pay us $700,000 in interim costs. $500,000 of which we received in Q1 and $200,000 of which we received in Q2. On July 2, the UPC Court of Appeals in Paris issued its final decision, rejecting Guardant's appeal in full. The court confirmed that there will be no injunction and that we can continue to commercialize the MSK access test without restriction. Guardant has been ordered to pay us a further $100,000 in interim costs. We remain confident in our position, both on non-infringement and on the validity of Guardant's patents, and the U.K. proceedings remain ongoing. None these one-off items, we did invest in sales and marketing during the quarter, specifically adding a few headcount in North America to support the strong U.S. growth. You should expect us to make small additions in this team slightly throughout the year to invest in the substantial opportunities we have in the U.S. market. Adjusted operating expenses, our OpEx, excluding items in the adjusted EBITDA table, was $25.6 million in Q2, exactly flat compared to last year. Operating loss for the second quarter was $20.1 million compared to $18.5 million in the prior year period. The figure, of course, includes the litigation and the restructuring cost impacts. Adjusted EBITDA was a loss of $8.8 million compared to the prior year loss of $12 million, improving 27% year-over-year. As Ross mentioned, we are proud of the team for this achievement. During the quarter, we had year-over-year revenue growth of $5 million and improved adjusted EBITDA by $3.2 million. In other words, we dropped more than 60% of each incremental revenue dollar down to the bottom line. Dropping down this much revenue growth to the bottom line by holding expenses relatively flat is especially impressive in the face of our accelerating revenue growth. Lastly, total cash burn, which we define as the change in cash and cash equivalents, excluding cash received from borrowings and stock sales as well as FX impacts was $12.9 million compared to $11.9 million in the prior year period. This year-over-year increase includes 2 expected dynamics. First, cash costs related to the restructuring reserve we took based on cost reduction actions in the second quarter of 2026, including severance and separation costs. And the second reason was the net legal costs related to the Guardant Health lawsuits. In the quarter, we executed an oversubscribed public follow-on offering that raised approximately $57.5 million in gross proceeds, bringing our cash and cash equivalents to $107.7 million at the end of Q2 2026. This raise will enable us to continue investing in our future growth and allow us to control our own destiny going forward. We remain confident in our path to profitability and expect to be approaching adjusted EBITDA breakeven by the end of this year and fully crossing over to positive adjusted EBITDA in the second half of 2027. I'll now turn to our 2026 outlook. Given the strength of our performance in the first half of 2026, SOPHiA GENETICS is raising our full year revenue guidance for 2026 from $92 million to $94 million to $94 million to $96 million, representing 22% to 24% year-over-year growth. A few notes on second half revenue. As a reminder, our business is typically seasonally stronger in Q4. The CDx deals announced today will impact growth primarily in 2027 as the programs reflect multiyear agreements with tiered milestones. Beyond revenue, we are reaffirming our full year adjusted EBITDA loss guidance of $29 million to $32 million compared to $41.5 million in fiscal year 2025. As previously mentioned, we took a series of cost actions and have realized the benefits of adopting AI across our teams. These actions reinforce our conviction to grow revenue without increasing headcount. They also give us confidence that we will be able to continue holding the line on operating expenses and reach our profitability guidance. With that, I would like to turn the call back over to Ross for the closing remarks before we take your questions. Ross? Ross Muken Thank you, George. To summarize, Q2 was an excellent quarter. We continue to accelerate revenue growth, improve our bottom line and fuel future growth with strong new business momentum across clinical and biopharma. The SOPHiA mission remains strong, and I couldn't be more excited to lead the company in its next phase of growth. Thank you to our employees, our partners and our shareholders for the trust you've placed in this next chapter. With that, operator, please open the line for questions. Unknown Analyst This is Ricky on for Subbu. Congrats on the quarter, guys. So 64% revenue growth and 60% volume growth in the U.S. is really impressive. Could you provide some additional color on where you're seeing the most growth here, maybe which types of customers? And how much of this is from existing SOPHiA DDM applications and how much of it is from MSK applications? Ross Muken Thank you, Ricky. So in terms of the U.S. market, we're incredibly excited about the trends that we're currently seeing. And really, I would say the strength is across the board. And we're seeing, I would say, again, a bias, particularly with sort of what's happening with falling sequencing costs and firming reimbursement rates. We're seeing entities of all sizes really shift their thinking and look at in-house testing as kind of a very viable option. I would say in the immediate term, where we're seeing the most demand is really, I would say, in 2 product lines. So one, it's in exomes, where we're seeing our enhanced exome product really, I would say, drive great demand relative to a combined offering for rare disease, but also enabling customers to do hereditary cancer testing, pharmacogenomic testing and carrier screening. So, it's really a unique product in the market and one where we're seeing really good demand across the board. I would say the other product for us that's been a strain for some time that we continue to build on is more on the Hem side. And so we're seeing that in many of the traditional areas of myeloid, et cetera, but also increasingly in CLL and AML, MRD. And so we're incredibly excited as well around what we're seeing in blood cancer. But frankly, across the board now, we're also seeing early signs, to your point on MSK that there's an increased interest in liquid biopsy testing being brought in-house. And then solid tumor testing as well has been done for some time. But I think moving more to the CGP side of things is also a trend. So again, it's really quite broad-based, and we expect the U.S. market to remain a real growth driver for us for the foreseeable future. Unknown Analyst That's really helpful. And then in the U.S. and also maybe more broadly, how has the cross-selling of applications been trending so far year-to-date? Is there anything you could share maybe on the average applications used per customer? Ross Muken It's a good question. So I would say this year, relative to last year, we've been much more focused on the expand than we have the land, right? You see that a bit in the new logo numbers, and it's been intentional. And so we focused on the land side on larger accounts. And sometimes, to your point, that will come with a multi-application land. So we've certainly seen that trend, and that's helped our ACVs in general for the land side. But I would say really on the expand side, there remains massive potential. So we today are a little bit over 2.5 applications per customer, right, of the, I would say, double digits that folks can adopt. And so there's huge room for us, hence why we focus on the NDR for us to continue to upsell even within our existing base. And so we're seeing really nice, I would say, new examples where people are combining both liquid and solid testing, so MSK ACCESS with MSK IMPACT on the land. We're seeing on the expand side people go from hematological malignancies into solid tumor with us. We're seeing folks that were doing hereditary cancer move into rare disease and other areas. And so there's really some natural places where we can have a multi-app land and/or expand. And so I would expect this to continue to be a really nice trend for us. And again, if we think about our penetration, to the point I made earlier, in terms of 2.5 applications per user, again, we can grow within our existing base at a very high rate for the foreseeable future. And so that's really nice in terms of having a recurring revenue business. And it's also, I would say, quite good as you're trying to sort of minimize your incremental spend. This is one of the secret sauces of how we've been able to also keep our operating expenses at bay while continuing to accelerate the growth rate. Unknown Analyst This is Megan on for Mark. Thank you for taking our question. Our first one has to do with headcount. You touched on it a bit on the call, but I was just hoping we could double-click a bit there. So with almost $110 million in pro forma cash, does that change how you're thinking about adding commercial and implementation resources around the U.S. and maybe also ex U.S.? Ross Muken Sure. So maybe I'll start with some high-level comments, and then I'll let George give a few specifics on the operating expense side. So I'd say broadly, we've been able to keep FTE count relatively flat. And that's really a testament, again, to the hard work of the SOPHiA team as we've been able to increase our productivity across the organization. Kelly as well has been very focused on us becoming more AI-native. And so he and a number of other individuals in the organization are finding ways for us to use some of these more advanced models and other tools to allow us to be more productive as well. So I would say, overall, really pleased around our ability to absorb the growth with very minimal headcount additions. To your point on the commercial side, and particularly in the U.S. at the moment, with the growth being elevated and the opportunities that we're seeing, we are investing in that portion of the sales force. And so you're seeing us selectively add headcount there in a number of key geographies as well as covering a few customer bases that historically we have not touched, like community oncology. So I would expect that to continue. You've also seen us globally make select investments. So, we entered Japan. We're continuing to invest in that market. We see it becoming one of the biggest opportunities for SOPHiA over the next few years. We've invested a bit in the U.K. We've seen great growth actually in Austria and Belgium and have put some feet there as well. And then Germany would be the other big area. So I would say, overall, we've been very targeted with the investments we'made, and we expect high returns on those investments. And so again, a lot of that is in order to continue the acceleration of revenue growth that we've been exhibiting. And then the last part would be also on the pharma side where we had today two tremendous wins. And these are really, for SOPHiA, I would say, landmark contracts and ones that will bring other business. And so there as well, you should expect a modest amount of investment to continue that trajectory. George, do you want to give maybe a bit more comment on the operating expense side? George Cardoza Yes. No, I mean, I'll echo what Ross said though on AI. And I do think it is helping us in areas improve productivity across the board, and we've looked at a lot of areas in terms of where we're even targeting things like customer implementations and our plans going forward, which, again, is important for us. We work very hard to be disciplined on the OpEx side. And you can rest assured we're going to continue to be so on that front. Relative -- obviously, our cash balance now is very strong with over 9 figures in the bank, which is a nice position to have. And certainly, we feel we're now in a good position to control our own destiny and there are great growth opportunities, and we're at 27% growth, but certainly aiming even higher in 2027 and 2028. So, we're optimistic about where this company can go. And as the growth opportunities and the high-ROI opportunities come before us, we're going to take action now, especially now that our balance sheet is strong. John Wilkin Another good quarter. I'm wondering if you could give a little more detail on this Lab of the Future with MSK. It sounds like it's essentially an R&D center to fuel AI-related precision medicine initiatives. But any additional detail you can give there, including if there's any financial impact over the next year or so? Ross Muken Thanks, John, for the question. Obviously, this is a really exciting development for SOPHiA. We've been incredibly pleased with the progress we've made with MSK, bringing both the IMPACT and ACCESS solutions now to north of 100 accounts globally. And so this is really, I would say, a game changer for us, and it's been, I think, a fantastic partnership as well for MSK. So obviously, as we look at the landscape and particularly what's developing in the U.S. market, and we look at what our pharma customers are asking of us, we want to remain highly innovative. And so you should expect this to be a center where new product development and new tools and new ways of practicing oncology -- and bringing that concept of collective intelligence to the patient, to the clinician -- become a reality. At the moment, we're still working through the definitive agreement. So I don't want to share too much in terms of our expectations for both the financial contribution and sort of long-term aspects. So John, unfortunately, you're going to have to wait a bit for us to kind of finish some of the points. But I would say for us, this is really a groundbreaking again, kind of concept and one I think that others will see and likely want to follow suit. Again, the U.S. market right now is really looking to transform itself. You see the tremendous value that's been created by the central laboratories. And I think particularly in oncology, but also in rare disease, this is becoming an area for hospitals where this can be really strategic. And so again, I think this is an expression of that and willing again of a large academic medical center at the top in the world to want to put capital behind it. So again, stay tuned, but we're incredibly excited about what this can become. John Wilkin And then on the pharma side, one, just wondering if there's any more detail you can give around the 2 new deals that were signed, including if you're able to quantify just the order of magnitude deal size. And then within Q2, if you're able to parse out at all with U.S. growth accelerating to 64%, obviously, very impressive. If you're able to parse out how much of that is coming from pharma versus some of these large new customer wins that you guys have talked about coming online. Ross Muken Sure. So first, in terms of the CDx deals that we announced today, this is obviously a really important, I would say, development for SOPHiA, not just financially in terms of how it will contribute in '27 and beyond. But frankly, moving into kind of regulated assets and being able to demonstrate that we can go through a regulatory process in three or four geographies around the world, the main ones for pharma. This is a real, I would say, milestone for us. And so we're incredibly excited about what we're embarking on here. We really think for the CDx market broadly, this approach of a global CDx that's truly, I would say, compatible across China, Japan, Europe and Asia -- sorry, the U.S. is really, I would say, differentiated. And so we would expect this to allow us to kind of build on what we can do with other pharmas as well over time. Now in terms of sizing, I think you guys have a pretty good sense of what a typical CDx relationship would look like on a multiyear basis. Obviously, it's a material amount of revenue. There are sort of milestone and other components to it as it develops. But certainly, these are quite sizable wins. They will be impactful for us in '27. And I would say as they start to contribute and play out in '27, we will update you accordingly. As George mentioned, there will be only a modest amount of contribution in the second half from both of these contracts. And so you should expect a bigger portion of this to drive growth in '27, '28 and beyond. Now, going back to kind of the U.S. business, the volume growth there was 60%, right? So you can see that the U.S. clinical revenue was also incredibly strong, right? So, I would say, overall, we're super pleased on how that has kind of played out. And we expect the U.S. again to be a major driver for us in the second half and beyond. Now in terms of some of the new accounts, those are starting to come online. You'll see a little bit of that in some of the pressure on our gross margins as we're bringing on some new business. But I would say, over time, obviously, that will scale up. But certainly, the majority of the contracted revenue that will come from some of those large new contracts in the U.S. will still contribute or as yet to contribute materially this quarter and will contribute to some of that second half step-up as well as our continued momentum into '27. I don't know, George, if you want to add anything on the growth cadence. George Cardoza Yes. No. I mean, obviously, the pharma revenue, we're very pleased to win these big contracts. And I think pharma is extremely well positioned for what we're expecting in 2027 and even 2028. So, I think our projections have been significantly derisked based on these wins. But also the pipeline is strong. So, we're very pleased about that as well. So, these contracts are primarily going to be out in '27 and '28. But certainly, I think the contribution here continues to gain. And our pharma business really now is an accelerator of our growth, and I think it's going to be -- it's going to continue to turbocharge it in the future years. We really think the pharma business has got rocket type potential in terms of what we can build here. So, we couldn't be more excited about what we're doing on the pharma front. Swayampakula Ramakanth This is RK from H.C. Wainwright. A couple of questions. The first one on the AstraZeneca deals that you announced this morning -- or this is regulated CDx infrastructure that you have been building both with Myriad here in the U.S. and A.D.A.M in Japan, are those the intended submission and deployment to [indiscernible] for this? Or is this going to be a separate build? And part two of that question is the assays and know-how that you develop for AstraZeneca, could you utilize that beyond AstraZeneca? Ross Muken That's a great series of questions. So obviously, as you mentioned, we have fantastic partners that have helped us certainly become more established in the CDx market. And as you know today, we don't have a core lab business, right? We enable our partners. We don't operate the service ourselves. And so, as you think about CDx, it really sort of depends on the market, and that will really very much determine the model. So, in one of the cases, we're incredibly excited to have Myriad as our partner taking an asset through FDA. And so certainly, I think that partnership will continue to bear fruit and has been one where we've already made significant strides, and I think we've worked incredibly well together. As you mentioned, A.D.A.M will become critical for Japan and the launch there. Now as you think about the European market, this remains still a decentralized or kitted market. And so there, we are taking the lead and can do so with our own capabilities. And so very much it sort of depends on the geography. But certainly, this was the motivation of why we had the partners. Now we can also deploy in other labs or other CRO. So we didn't announce all the specifics, but you should assume that given our model, we could work with any player that could serve pharma at scale in a clinical trial setting. And then be able to then turn that assay or capability into a regulated CDx that we can deploy through a various number of models commercially post launch across the large network that we have. So certainly, again, I think this is very differentiated versus what the traditional players do and solves a major challenge pharma has had as that business continues to globalize. Now in terms of what we announced today and its applicability more broadly, certainly, we are hopeful and optimistic that the products we are bringing to can be replicated across other pharmas. And actually, as we started to share confidentially some of the progress we have made with pharma at ASCO, this is something that really came out as a higher interest. So we see already opportunities in the funnel around both of these indications. And we think, again, this is really a validation event for our business to compete against the largest labs you look at in the world with our sort of differentiated model. And so I'm quite, as George said, optimistic that this will help turbocharge our pharma business and bring other pharma to the table for these types of capabilities. So certainly, we're in a place where I feel quite confident. Swayampakula Ramakanth And the second question is on the financials. The adjusted gross margin that was announced this morning was 72.1%, down both sequentially and year-over-year. Last quarter, the guidance was that the full year gross margin should actually expand beyond 2025. So what needs to happen in the second half for things to reverse from here to get to that point? Ross Muken So good question, obviously, and the gross margin did come down sequentially. I would say, ultimately, if we take a step back from when we came public, we've been incredibly proud of the work we've done on the gross margin line, and that showed over 1,000 basis points of expansion over time. So I think we've shown the ability to really drive the business toward profitability under a number of levers. Now I think if you step back, and I'll let George comment on the specifics, I think you have a couple of things here in play. At the moment. So one, you are seeing some elevation, I would say, in cloud and AI compute costs. And particularly as we launch in new regions of the world, that tends to be a bit dilutive to margins. So that's one piece. And then I would say as well, just the sheer number of new business starts and sort of new account starts, particularly as well on the pharma side, you typically have as well a cadence there where you have to mature into the margin. So George, I don't know if you want to give some specifics. George Cardoza Yes. No, if you think about our pharma business, typically, our costs are a little bit higher at the start of projects. So we saw a little bit of that in Q2 on the pharma business. Our margins were depressed a bit because we had some projects that we're launching, and our costs do tend to be a little bit higher in the early stages of projects. Ross mentioned our hosting costs. And it's important to realize, too, when you look at our cost -- we do have to build a framework. So there is sort of a framework, if you would, that we have to build in terms of establishing a cloud, whether it's in the Netherlands or in the United Arab Emirates. And there is sort of a fixed cost component of that. And obviously, as new clients come on, you grow into that, and that piece doesn't change, if you would. So, I think we had a few things in the second quarter that worked against us. But obviously, Q1 was very strong. We said that was probably a little on the strong side. Q2 came down a bit. And certainly, we're going to be working on this in Q3 and Q4 as things balance out. Our long-term guidance certainly has been over time, we expect gross margins to improve gradually, and that's still what we're continuing to work towards. Kyle Boucher This is Kyle on for Dan. Just wanted to ask a quick one on the updated guidance. You raised your guide by a bit more than the magnitude of the beat, which I think sort of implies second-half growth is pretty similar to the first half if you sort of average it out. So just wondering what some of the puts and takes are of the drivers, maybe of upside in the back half, just given -- it sounds like you have a lot of momentum across a number of different areas of the business. I guess how should we just conceptualize that relative to what the back half implies? Ross Muken Thanks, Kyle. Obviously, we're really pleased with our first half performance, and we tried to express that in the increase. And obviously, now the lower end of the range is actually above our prior high end of the range, right? So I think ultimately, for us, this was an expression of great confidence in the continuation of the trends you've seen from the first half. Now I think as you look towards the second half, we still have obviously quite a bit of business coming online. We also have pharma that continues to ramp. So I would say, overall, we're working hard to continue to accelerate the growth rate and as well try to balance that against kind of the cost commitments we've made, right? So I feel as if what we've expressed is quite optimistic and again, consistent with the accelerating trend you've seen. Now I would say we have tended to remain conservative with how we guide. And so you should assume this is the posture that we continue to exhibit as we kind of communicate with the Street. But George, do you want to give some specifics? George Cardoza Yes. No. I mean, obviously, the last few years, I think we've established a pattern of beating our guidance. And certainly, that's something we take very seriously. So I think we're confident that we can achieve these targets. And we feel that the momentum in the business is building. So I think these are responsible. I think they're reasonably conservative, but I think this is something that we're going to work to achieve. And again, we're positioning the business for a great 2027 and 2028, and we're really managing this business for the long term. And I would just add maybe with some of the larger contracts coming on, right, timing is critical. And so again, just going to the point of conservatism, we tend to be quite, I would say, conservative with our expectation of when new business starts happening. And so to the degree that they would happen sooner, that typically is where you would see us be able to provide upside to the guided levels. Kyle Boucher And maybe just one more on customer implementations. I guess where do you stand right now in terms of implementations? What does the backlog look like? I know you guys have added quite a number of new logos every quarter. But I guess just sort of what does that backlog look like? And how have you been working through that backlog? Ross Muken So fortunately, Kyle, despite -- and this is a number I look at every month- despite great efforts on behalf of the cans across the business focused on bringing customers into routine and getting them live, where we've done a very good job, we continue to also have really good bookings. And so as we've accelerated backlog conversion, actually bookings remain elevated. And so despite our best efforts, we continue to sustain a pretty significant backlog that's coming online. So again, the good news in that is, obviously, it gives us a high degree of future revenue visibility for the next several quarters. But certainly, we like to shave off, and we've been doing so, implementation time. Now one of the points I mentioned earlier, Kellen is incredibly focused on our conversion to being a more AI native business, partnering with our people organization and others. And so I think implementation is probably ripe for AI-based assistance. And we do think over the next, call it, 24 months, that's an area where we can continue to make improvement. I will say though, and again, it's always a balance because remember, again, we're trying to basically drop down a super high level of growth to the bottom line. And so to do so, you're a bit more capital constrained than when you add headcount. And so just remember, certainly, we could accelerate that backlog probably a bit more, but at what expense. And so I think ultimately, we're trying to thread that needle and deliver both top and bottom line growth that's quite appealing and within our commitments. And so I think that's really the sort of balance at the moment and where we are. But generally, I would say we are carrying a very healthy level of backlog now as well, given today's signatures in the pharma business. And so, think about this as giving us a high degree of confidence on kind of the future growth. I don't know, George, if you want to add anything? George Cardoza We added people last year to the implementation team, and they've done a really good job. The vast, vast majority of the time, we're waiting on the clients, obviously, to do validations to resolve things like IT firewall issues and the like. But our implementation team really has improved, and they've done a really good job. And as Ross said, I think the problem has been the bookings you see coming on, and they've been very, very strong. So I guess it's a good problem to have, if you would, but I think our -- we call it our MaxCare team-- they've actually done a very good job in terms of turning these around and getting to the point where the customers aren't waiting on us. We're really waiting on the customers. And we try to nudge them along gently, but obviously, there's a balance there in terms of how much you can do. But certainly, I think when you start looking at some of the things we potentially could do with AI, there are exciting opportunities here. But our backlog is strong, and our pipelines are strong. So, this is just something that we're going to have to continue to work with as we try to work to accelerate this. Ross Muken Thank you so much for joining us today. Obviously, my first call as CEO. So it's an exciting one for us, and it's really great that we were able to have such fantastic results in that context. I want to thank all of the great SOPHiAns who helped contribute to this really strong outcome, and also thank our patients and our customers who continue to exhibit trust in us. We look forward to engaging with many of you on the investor side in the upcoming conferences in September. So thank you, everybody. Have a good rest of your day. Joelle Ladies and gentlemen, this concludes the conference call for today. We thank you for participating and ask that you please disconnect your lines. 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BOSTON and ROLLE, Switzerland, Aug. 4, 2026 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a global leader in AI-driven precision medicine, today reported financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Revenue was $23.3 million, up 27% year-over-year Gross margin was 64.6% on a reported basis and 72.1% on an adjusted basis, compared to 67.0% reported and 74.4% adjusted in the prior year period Net loss was $22.4 million, flat year-over-year; Adjusted EBITDA loss was $8.8 million, improving 27% year-over-year The company is raising 2026 revenue guidance to a range of $94 million to $96 million, representing 22% to 24% year-over-year growth. This compares to the prior range of $92 million to $94 million "We delivered an outstanding second quarter, growing revenue 27% year-over-year, while also improving adjusted EBITDA loss by 27%," said Ross Muken, Chief Executive Officer of SOPHiA GENETICS. "Strong revenue performance was driven by 60% volume growth in the U.S., 70% volume growth in Liquid Biopsy, and accelerating growth in BioPharma. BioPharma growth is well-positioned to continue into 2027, as today we announce the signing of two companion diagnostic programs with AstraZeneca, the first ever in SOPHiA GENETICS's history." Muken added, "As I step into the role of CEO, my focus will be on converting our world-class AI platform, a hard-won global network, and a decade of scientific credibility into accelerating, profitable growth for years to come. To achieve these goals, we strengthened our balance sheet with an oversubscribed $57.5 million public offering in Q2, providing sufficient capital to reach our business objectives and invest in long-term growth." Business Highlights Expanding with existing customers Performed a record 115,000 analyses on SOPHiA DDM™, representing 22% year-over-year volume growth Delivered strong analysis volume in North America with 60% year-over-year growth in the U.S. Expanded our footprint with existing customers as Net Dollar Retention increased to 117% in Q2 2026, up from 107% in Q2 2025 Reached 542 core genomics customers as of June 30, 2026, up from 490 customers a year ago Landing new customers to fuel future growth Signed 24 new core genomic customers in Q2 2026, which are expected to begin generating revenue over the next twelve months Continued to sign premier healthcare institutions across the globe, including Nova Scotia Health Authority for HemOnc; DB Diagnósticos, Brazil's leading laboratory-support network, for Rare Disorders; and IPO Lisboa, the main cancer center for southern Portugal, for Hereditary Cancer Accelerating growth in the U.S. market Delivered 64% year-over-year revenue growth in the U.S. in Q2 2026 and 60% volume growth Completed new customer go-lives for Geisinger Health System in Pennsylvania for Pharmacogenomics, University of Illinois at Chicago for HemOnc, and NYU Langone Health for Solid Tumors Signed a strategic collaboration with Children's Hospital of Philadelphia (CHOP), the nation's first pediatric hospital and a global leader in pediatric oncology, to develop and launch a next-generation liquid biopsy application specifically designed for pediatric cancers Scaling growth with new applications Delivered 80% year-over-year revenue growth in Liquid Biopsy in Q2 2026 Reached a total of 80 customers across 30+ countries signed-to-adopt the Liquid Biopsy application MSK-ACCESS® powered with SOPHiA DDM™, with more than half still yet-to-complete implementation Signed major new customers to MSK-ACCESS® in Q2, including AZ Delta Roeselare, one of the largest hospitals in Belgium; Policlinico Riuniti Hospital at the University of Foggia in Italy; and Sultan Qaboos Cancer Center in Oman Signed major new customers to the Solid Tumor application MSK-IMPACT® powered with SOPHiA DDM™, including Lifera Omics in Saudi Arabia; CHU Lyon Sud of Hospices Civils de Lyon in France; and Bioma Genetics in Brazil Developing partnerships to fuel growth Signed a Memorandum of Understanding (MOU) with Memorial Sloan Kettering Cancer Center (MSK) to establish a joint venture combining MSK's clinical expertise with SOPHiA GENETICS's AI-native platform to accelerate the next generation of precision oncology The envisioned joint venture aims to build an 'AI Lab of the Future' with infrastructure to develop and launch new applications, support BioPharma partners, and build new multimodal clinical intelligence tools Building BioPharma partnerships Signed a new, multi-year agreement with AstraZeneca to launch two companion diagnostic (CDx) programs: (1) a decentralized Solid Tumor CDx, and (2) a Hematological Oncology test for patients with blood cancer Delivered strong growth from BioPharma partners in Q2 2026 as recently signed projects with AstraZeneca, Kartos, and others begin to generate revenue Driving operational excellence Remained laser-focused on operational excellence and improved adjusted EBITDA loss by 27% year-over-year to $8.8 million Executed an oversubscribed public offering that raised approximately $57.5 million in gross proceeds, bringing cash and cash equivalents to $107.7 million at the end of Q2 2026; The company expects it now has sufficient capital resources to fund its growth objectives Executed targeted cost actions in Q2, modestly reducing headcount and operating spend as AI-driven productivity improvements enabled us to streamline workflows while maintaining investment in key growth areas Reaffirmed commitment to profitable growth and the expectation of approaching adjusted EBITDA breakeven by the end of 2026 and crossing over to positive adjusted EBITDA in the second half of 2027 2026 Financial Outlook Based on information as of today, SOPHiA GENETICS expects: Full year revenue between $94 million and $96 million, representing approximately 22% to 24% year-over-year growth. This compares to the prior range of $92 million to $94 million Adjusted EBITDA loss between $29 million and $32 million, compared to $41.5 million in FY 2025 Earnings Call and Webcast Information SOPHiA GENETICS will host a conference call and live webcast to discuss the second quarter 2026 results on Tuesday, August 4, 2026, 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 EBITDA (non-IFRS measure) to loss for the period (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying depreciation expense, amortization of capitalized research & development expenses and intangible assets, interest income, interest expense, fair value adjustments on warrants, income taxes, foreign exchange gains or losses, share-based compensation expenses, social charges on share-based compensation, the non-cash portion of pensions paid in excess of actual contributions, certain transaction costs, litigation expenses and restructuring costs 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: Adjusted gross profit, which the company calculates as revenue minus cost of revenue adjusted to exclude amortization of capitalized research and development expenses; Adjusted gross profit margin, which the company calculates as adjusted gross profit as a percentage of revenue; Adjusted EBITDA, which the company calculates as loss for the period before depreciation, amortization, interest income, interest expense, fair value adjustments on warrant obligations, foreign exchange (losses) gains, net, income tax (expense) benefit, share-based compensation expense, social charges on share-based compensation, non-cash pension expenses, certain transaction costs, litigation expenses and restructuring costs. 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: These non-IFRS measures exclude the impact of depreciation. Although depreciation is a non-cash charge, the assets being depreciated may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures; These non-IFRS measures exclude the impact of interest expense. Interest expense will continue to be for the foreseeable future a recurring expense based on the company's financial liabilities; These non-IFRS measures exclude the impact of interest income. Interest income will continue to be for the foreseeable future recurring income based on the company's financial assets; These non-IFRS measures exclude the impact of income taxes. Income taxes will continue to be for the foreseeable future a recurring expense incurred in the various jurisdictions in which the company operates; These non-IFRS measures exclude the impact of foreign exchange gains (losses),net. Foreign exchange gains and losses will continue to be for the foreseeable future a recurring expense incurred as the company participates in transactions outside of the company's functional currency; These non-IFRS measures exclude the impact of fair value adjustments of warrant obligations. Fair value adjustments on warrant obligations will continue to be for the foreseeable future a recurring expense incurred as the company has outstanding warrant obligations; These non-IFRS measures exclude the impact of amortization of capitalized research and development expenses and intangible assets. Amortization of these assets will continue to be for the foreseeable future a recurring expense incurred as the Company continues to invest in developing revenue-generating products through research and development. Although amortization is a non-cash charge, the assets being amortized may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures; These non-IFRS measures exclude the impact of share-based compensation expenses. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in the company's business and an important part of its compensation strategy; These non-IFRS measures exclude the impact of social charges related to share-based compensation. These social charges have been, and will continue to be for the foreseeable future, a recurring expense in the company's business; These non-IFRS measures exclude the impact of the non-cash portion of pensions paid in excess of actual contributions to match actuarial expenses. Pension expenses have been, and will continue to be for the foreseeable future, a recurring expense in the business; These non-IFRS measures exclude the impact of certain capital markets transaction costs. These costs may occur from time to time in the future as needed to complete the transactions; These non-IFRS measures exclude the impact of litigation expenses related to the company's defense of lawsuits filed by Guardant Health. These expenses are expected to continue for the duration of the litigation and may increase in future periods; These non-IFRS measures exclude the costs associated with restructuring, which consists of compensation paid to employees during their garden leave period, severance, and any other amounts legally owed to the employees resulting from their termination as part of a planned workforce reduction, which we undertook to optimize our operations. Additionally, it includes any legal fees incurred as part of the restructuring process. While such actions are not planned going forward as part of our regular operations, we expect such expenses could still be incurred from time to time based on corporate needs; and Other companies, including companies in the company's industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures. 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 an AI-native healthcare technology company on a mission to transform patient care by expanding access to data-driven medicine globally. It is the creator of SOPHiA DDM™, an AI platform that analyzes complex genomic and multimodal data to generate real-time, real-world 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. 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Interested in SOPHiA GENETICS SA? Here are five stocks we like better. Q2 revenue rose 27% to $23.3 million, while patient analyses reached a record 115,000 and the adjusted EBITDA loss narrowed to $8.8 million. U.S. revenue grew 64%, and liquid biopsy revenue increased 80% year over year. SOPHiA GENETICS expanded its customer base and signed its first two companion diagnostic programs with AstraZeneca. The multiyear agreements are expected to contribute meaningfully from 2027 onward, while a proposed AI-focused joint venture with Memorial Sloan Kettering remains under development. The company raised its 2026 revenue outlook to $94 million-$96 million and maintained its adjusted EBITDA loss guidance of $29 million-$32 million. Management expects to approach adjusted EBITDA breakeven by year-end 2026 and achieve positive adjusted EBITDA in the second half of 2027. SOPHiA GENETICS (NASDAQ:SOPH) reported second-quarter revenue growth of 27% and raised its full-year revenue outlook, as the precision medicine software company cited accelerating U.S. adoption, liquid biopsy momentum and new biopharma agreements. Revenue for the second quarter totaled $23.3 million, up from $18.3 million a year earlier. Platform analysis volume reached a record 115,000 patient analyses, an increase of 22% from the prior-year period. The company reported an adjusted EBITDA loss of $8.8 million, compared with a loss of $12 million in the second quarter of 2025. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Revenue is accelerating, the network is built, the platform thesis is proven,” CEO Ross Muken said on his first earnings call since taking the role. Muken said the company’s focus is now on executing its growth strategy and scaling its platform for precision medicine. The U.S. was a primary contributor to second-quarter growth. U.S. revenue increased 64% year over year, while U.S. volume rose 60%, driven in part by customers beginning to come online, according to management. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Muken said demand in the U.S. is broad-based as hospitals and laboratories increasingly consider in-house genomic testing capabilities. He pointed to particular demand for the company’s enhanced exome offering and hematological oncology applications, while also citing early interest in in-house liquid biopsy and comprehensive genomic profiling testing. The company signed Children’s Hospital of Philadelphia during the quarter and said the organizations are developing a liquid biopsy test designed for pediatric cancers. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Liquid biopsy revenue grew 80% year over year during the quarter. SOPHiA GENETICS added customers including AZ Delta Roeselare in Belgium, Policlinico Riuniti Hospital at the University of Foggia in Italy, and Sultan Qaboos Cancer Center in Oman. The company has now signed 80 liquid biopsy customers globally, with more than half not yet generating revenue, Muken said. Chief Financial Officer George Cardoza said Asia-Pacific volume grew 27% and revenue increased 31% during the quarter. Hematological oncology volumes increased 34%, while rare-disease volumes rose 35%. Solid tumor testing also grew slightly faster than the company average, supported by newer applications including its CGP test and MSK-IMPACT Flex. Core genomic customers totaled 542 as of June 30, compared with 490 a year earlier. The company implemented 40 new customers during the first half that have entered routine usage. Net dollar retention rose to 117% from 107% in the year-earlier period, while annualized revenue churn was less than 1%. Muken said SOPHiA GENETICS has slightly more than 2.5 applications per customer on average, leaving room to expand adoption within existing accounts. He cited customer adoption across liquid biopsy, solid tumor testing, hematological malignancies, hereditary cancer and rare disease applications. The company also announced two companion diagnostic, or CDx, programs with AstraZeneca, its first such wins. One program will develop SOPHiA GENETICS’ solid tumor application into a decentralized companion diagnostic, while the other will use its hematological oncology application to support a blood cancer therapy. Management said the agreements are multiyear arrangements with tiered milestones and are expected to affect growth primarily in 2027 and beyond, with only modest second-half 2026 contribution. Muken said the programs could also support future real-world evidence assets and clinical intelligence tools. Separately, SOPHiA GENETICS and Memorial Sloan Kettering announced a memorandum of understanding to form a joint venture aimed at creating an “AI lab of the future” in New York City. The proposed venture would combine Memorial Sloan Kettering’s clinical expertise, testing footprint and multimodal data with SOPHiA GENETICS’ AI platform. Management said it is still working toward a definitive agreement and did not provide financial details. Gross profit was $15.1 million, up 23% from a year earlier, while gross margin declined to 64.6% from 67%. Adjusted gross margin was 72.1%, compared with 74.4% in the prior-year quarter. Cardoza attributed the margin decline primarily to a greater contribution from biopharma and services revenue. Biopharma projects generally have higher costs at the start, while customer implementation services, including robotics and next-generation sequencing workflow support, carry lower margins than the company’s standard analysis business. Total operating expenses were $35.1 million, up from $30.8 million a year earlier. The company recorded about $1.25 million in restructuring costs related to terminations and severance following cost actions taken in April. It also incurred approximately $1.1 million in net legal expenses related to patent litigation filed by Guardant Health. Cardoza said the Unified Patent Court Court of Appeals in Paris rejected Guardant’s appeal on July 2, confirming there would be no injunction and that SOPHiA GENETICS could continue commercializing the MSK-ACCESS test without restriction. U.K. proceedings remain ongoing, according to the company. SOPHiA GENETICS raised its 2026 revenue guidance to a range of $94 million to $96 million, representing expected growth of 22% to 24%. The prior outlook was $92 million to $94 million. The company reaffirmed its full-year adjusted EBITDA loss guidance of $29 million to $32 million, compared with an adjusted EBITDA loss of $41.5 million in 2025. Management expects to approach adjusted EBITDA breakeven by the end of 2026 and reach positive adjusted EBITDA in the second half of 2027. In June, the company completed an oversubscribed public offering that raised approximately $57.5 million in gross proceeds. Cash and cash equivalents were $107.7 million at the end of the second quarter. Management said the capital position is sufficient to support its growth plans while it continues targeted hiring in commercial roles, particularly in the U.S. SOPHiA GENETICS SA is a data-driven medicine company founded in 2011 and headquartered in La Tène, Switzerland. The firm develops and operates a cloud-native software platform designed to standardize and analyze complex genomic and radiomic data. Its core offering, the SOPHiA DDM™ platform, leverages artificial intelligence and machine learning algorithms to help healthcare institutions, laboratories and biopharmaceutical partners derive actionable insights from next-generation sequencing and medical imaging datasets. The SOPHiA DDM™ platform supports a range of clinical applications, including oncology, hereditary diseases and rare genetic disorders. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SOPHiA GENETICS Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: Total revenue for Q2 was $23.3 million, up 27% year-over-year from $18.3 million. U.S. Revenue: U.S. revenue grew 64% year-over-year in Q2. Liquid Biopsy Revenue: Liquid biopsy revenue grew 80% year-over-year in Q2. Asia-Pacific Revenue: Asia-Pacific revenue grew 31% year-over-year. Gross Profit: Gross profit was $15.1 million, up 23% from $12.3 million in the prior-year period. Gross Margin: Gross margin was 64.6%, compared with 67% in Q2 2025. Adjusted Gross Profit: Adjusted gross profit was $16.8 million, an increase of 23% year-over-year. Adjusted Gross Margin: Adjusted gross margin was 72.1%, compared to 74.4% in Q2 2025. Operating Expenses: Total operating expenses were $35.1 million, compared to $30.8 million in the prior-year period. Adjusted operating expenses were $25.6 million, flat year-over-year. Operating Loss: Operating loss was $20.1 million, compared to $18.5 million in the prior-year period. Adjusted EBITDA: Adjusted EBITDA loss was $8.8 million, improving 27% year-over-year from a loss of $12 million. Cash and Cash Equivalents: Cash and cash equivalents were $107.7 million at the end of Q2. Cash Burn: Total cash burn was $12.9 million, compared to $11.9 million in the prior-year period. Analysis Volume: Platform analysis volume was a record 115,000 analyses in Q2, up 22% year-over-year. U.S. volume grew 60%. Net Dollar Retention: Net dollar retention was 117%, up 1,000 basis points from 107% in the prior-year period. Customer Count: Core genomic customers were 542 as of June 30th, up from 490 in the prior-year period. Full-Year Revenue Guidance: Raised full-year 2026 revenue guidance to $94 million to $96 million, representing 22% to 24% growth. Full-Year Adjusted EBITDA Guidance: Reaffirmed full-year adjusted EBITDA loss guidance of $29 million to $32 million. Warning! GuruFocus has detected 6 Warning Signs with SOPH. Is SOPH fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 27% year-over-year in Q2, with U.S. revenue up 64% and liquid biopsy revenue up 80%. Record 115,000 patient analyses in Q2, with 24 new customers and net dollar retention of 117%. Announced two companion diagnostic programs with AstraZeneca, a significant milestone for future revenue. Signed an MOU with Memorial Sloan Kettering to form a joint venture for AI-driven precision oncology. Raised full-year revenue guidance to $94-$96 million (22-24% growth) and improved adjusted EBITDA loss by 27% year-over-year. Closed an oversubscribed public offering, raising $57.5 million, bringing cash to $107.7 million to fund growth. Adjusted gross margin declined to 72.1% from 74.4% in Q2 2025, due to lower-margin biopharma and services revenue. Operating expenses increased to $35.1 million, impacted by $1.25 million in restructuring costs and $1.1 million in litigation expenses. Cash burn increased to $12.9 million in Q2, up from $11.9 million, due to restructuring and legal costs. The company still expects to approach adjusted EBITDA breakeven only by end of 2026, with positive EBITDA not until second-half 2027. Gross margin pressure is expected to continue in the near term due to new customer implementations and pharma project launches. The CDX deals with AstraZeneca will have minimal revenue contribution in 2026, with most impact deferred to 2027 and beyond. Q: Can you provide additional color on the impressive 64% revenue growth and 60% volume growth in the U.S., including which types of customers are driving this and how much is from existing applications versus MSK applications?A: Ross Muken (CEO) stated that the strength is broad-based, driven by falling sequencing costs and firming reimbursement rates, which are leading entities of all sizes to consider in-house testing. The most immediate demand is in two product lines: enhanced exomes for rare disease, hereditary cancer, pharmacogenomic testing, and carrier screening, and the heme side for blood cancers like myeloid, CLL, and AML/MRD. There are also early signs of increased interest in bringing liquid biopsy testing in-house, with the U.S. market expected to remain a major growth driver. Q: Can you provide more detail on the two new companion diagnostic (CDX) programs with AstraZeneca, including the order of magnitude of deal size and how they will impact growth?A: Ross Muken (CEO) described the CDX deals as a landmark development for Sophia, moving into regulated assets and demonstrating the ability to navigate regulatory processes globally. The deals are material, multi-year agreements with tiered milestones, and will primarily impact growth in 2027 and beyond, with only a modest contribution in the second half of 2026. George Cardoza (CFO) added that these wins significantly de-risk projections for 2027 and 2028, and the pharma business has "rocket-type potential." Q: With nearly $110 million in pro forma cash, does this change how you're thinking about adding commercial and implementation resources, particularly in the U.S. and ex-U.S.?A: Ross Muken (CEO) noted that the company has kept FTE count relatively flat by increasing productivity and becoming more AI-native. However, they are making selective investments in the U.S. sales force, including covering new areas like community oncology, and in key global markets like Japan, the U.K., Austria, Belgium, and Germany. George Cardoza (CFO) added that the strong cash balance allows them to control their own destiny and invest in high-ROI opportunities to aim for even higher growth in 2027 and 2028. Q: Can you give more detail on the "lab of the future" joint venture with Memorial Sloan Kettering (MSK), including any financial impact over the next year?A: Ross Muken (CEO) explained that the JV is a groundbreaking development to build an AI lab of the future in New York City, combining MSK's clinical expertise and multimodal data with Sophia's AI platform. It will focus on new product development, supporting biopharma, and building new clinical intelligence tools. As the definitive agreement is still being worked through, he did not share financial expectations but emphasized it is a strategic move that others will likely want to follow. Q: Regarding the AstraZeneca CDX deals, are the regulated CDX infrastructures you've built with partners like Myriad and in Japan the intended submission and deployment vehicles, and can the know-how be used beyond AstraZeneca?A: Ross Muken (CEO) clarified that the model depends on the market. For example, Myriad is a partner for an FDA submission, and Japan will be critical for launches there, while the European market remains decentralized, where Sophia can take the lead. The model allows them to work with any player that can serve pharma at scale. The products and capabilities are replicable across other pharma companies, and they are already seeing opportunities in the funnel, making this a validation event for their differentiated business model. Q: The adjusted gross margin was down sequentially and year-over-year. What needs to happen in the second half to reverse this trend and expand margins?A: Ross Muken (CEO) attributed the decline to elevated cloud and AI compute costs, particularly when launching in new regions, and the high number of new business starts, especially on the pharma side, which typically have lower margins at the start. George Cardoza (CFO) added that hosting costs include a fixed framework component for establishing clouds in new regions, which they grow into as clients come on. They expect margins to balance out in Q3 and Q4 and continue to work towards long-term gradual gross margin improvement. Q: You raised guidance by more than the magnitude of the beat, which implies similar second-half growth. What are the puts and takes for potential upside in the back half?A: Ross Muken (CEO) stated the raise reflects confidence in the continuation of first-half trends, with a lot of business coming online and pharma continuing to ramp. He noted the company tends to remain conservative with guidance, especially regarding the timing of larger contracts, so if new business starts sooner than expected, that is where upside could occur. George Cardoza (CFO) added that they have a pattern of meeting guidance and are managing the business for the long-term, positioning for a great 2027 and 2028. Q: Where do you stand on customer implementations, and what does the backlog look like given the number of new logos added?A: Ross Muken (CEO) said that despite great efforts to bring customers into routine use, bookings remain elevated, sustaining a significant backlog that provides high future revenue visibility. He mentioned that implementations are an area ripe for AI-based assistance to improve over the next 24 months, but they are balancing this against the goal of dropping a high level of growth to the bottom line. George Cardoza (CFO) added that the implementation team has improved, and often they are waiting on clients for validations and IT issues, calling the strong backlog a "good problem to have." Q: How has the cross-selling of applications been trending, and can you share the average applications used per customer?A: Ross Muken (CEO) said the company has been more focused on expanding within existing accounts than landing new ones, which has helped net dollar retention. They are currently at a little over 2.5 applications per customer out of a double-digit portfolio, leaving massive room for upselling. He cited examples of customers combining liquid and solid testing (MSK Access with MSK Impact) and moving from hematological malignancies to solid tumors, which supports high recurring revenue growth with minimal incremental spend. Q: Can you parse out how much of the U.S. growth is coming from pharma versus large new customer wins coming online?A: Ross Muken (CEO) highlighted that U.S. clinical volume growth was 60%, indicating the clinical revenue was incredibly strong. He noted For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Shareholders adopt all proposals, co-founder Dr. Jurgi Camblong elected as Executive Chairman of the Board, Ross Muken elected as new member of the Board ahead of his appointment as CEO effective July 1, 2026 ROLLE, Switzerland, June 22, 2026 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a global leader in Ai-driven precision medicine, today announced that its 2026 Annual General Meeting of shareholders adopted all proposals on the agenda, electing Dr. Jurgi Camblong as the Executive Chairman of the Board of Directors with 99.79% of the votes, and Ross Muken as a member of the Board of Directors for the first time with 99.88% of the votes. Mr. Muken will assume the role of Chief Executive Officer, effective July 1, 2026. The appointments mark an important milestone in SOPHiA GENETICS' continued evolution as it advances its mission to transform healthcare through Ai-enabled, data-driven medicine. All proposals presented to the AGM were approved by the shareholders. "Co-founding SOPHiA GENETICS and serving as CEO over the past 15 years has been one of the greatest privileges of my professional life," said Jurgi Camblong, co-founder and newly elected Chairman of the Board of Directors of SOPHiA GENETICS. "What makes me proud is not only how far we have come, but the extraordinary people, partners, and customers who have helped shape our mission along the way. As we enter our next chapter, I am energized to work alongside Ross as he assumes the role of CEO, and to focus on my own contribution on the long-term strategic, scientific, and technological direction of the Company." "SOPHiA GENETICS is entering one of the most exciting moments in its history, with strong commercial momentum and growing demand for Ai-powered, data-driven medicine," said Ross Muken, newly elected Board member and incoming Chief Executive Officer of SOPHiA GENETICS, effective July 1, 2026. "What gives me the greatest confidence is the strength of our mission, our differentiated technology, and most importantly, our people. As we enter this next chapter, I am incredibly energized by the opportunity ahead and confident in our ability to continue scaling our impact globally while delivering meaningful innovation for patients, providers, and biopharma partners." In addition to Dr. Camblong, the following directors standing for re-election were re-elected to the Board of Directors for a term of office of one year, expiring at the conclusion of the 2027 Annual General Meeting: Troy Cox Tomer Berkovitz Jean-Michel Cosséry Kathy Hibbs Didier Hirsch Vincent Ossipow The following persons standing for election were elected to the Board of Directors for a term of office of one year for the first time: Ross Muken The following members of the Board of Directors were re-elected as members of the Compensation Committee for a term of office of one year: Kathy Hibbs Jean-Michel Cosséry Vincent Ossipow Following the meeting, the Board of Directors re-appointed Kathy Hibbs as Chair of the Compensation Committee. Compensation Votes Shareholders approved the maximum aggregate compensation of the Board of Directors for the period from the 2026 Annual General Meeting to the 2027 Annual General Meeting, the maximum aggregate fixed compensation of the Executive Committee for the financial year 2027, and the maximum aggregate variable compensation of the Executive Committee for the financial year 2026, in each case as proposed by the Board. Amendment to the Articles of Association Shareholders approved the proposed amendment to Article 4b of the Articles of Association, giving effect to the annual share replenishment under the Company's 2021 Equity Incentive Plan to align the Articles of Association with the share replenishment described in the Plan, which was already authorized at the time of the Company's initial public offering. The resolution was approved by the two-thirds majority of shares represented at the meeting as required under Swiss law. Annual Report, ESG Impact Summary, Appropriation of Result and Discharge Shareholders approved the 2025 Management Report, the Annual Financial Statements and the Consolidated Financial Statements for the financial year 2025, acknowledged the Auditors' Reports, approved the appropriation of the 2025 financial result (carry-forward of the net loss), and granted discharge to the members of the Board of Directors and the Executive Committee for the 2025 financial year. On a consultative basis, shareholders also approved the 2025 ESG Impact Summary (Sustainability Report). Auditors and Independent Proxy The meeting re-elected PricewaterhouseCoopers SA as external auditors for the 2026 financial year and PHC Notaires as independent proxy until the conclusion of the 2027 ordinary Annual General Meeting. Governance In view of Dr. Camblong's election as Executive Chairman, the Board introduced a Lead Independent Director role, rotating annually among the Chairs of its independent Board committees. The Board will also hold standing executive sessions of its independent directors at each meeting. Together with an independent majority on the Board and fully independent committees, these arrangements give SOPHiA GENETICS a clear, robust governance framework for its next chapter. About SOPHiA GENETICS SOPHiA GENETICS (Nasdaq: SOPH) is an Ai-native healthcare technology company on a mission to transform patient care by expanding access to data-driven medicine globally. It is the creator of SOPHiA DDM™, an Ai platform that analyzes complex genomic and multimodal data to generate real-time, real-world 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 forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's leadership transition and governance arrangements, its strategic, scientific and technological direction, anticipated commercial momentum and demand for its solutions, and its ability to scale its impact and deliver innovation for patients, providers and biopharma partners. Forward-looking statements are generally identified by words such as "will", "expect", "believe", "confident", "energized", "continue", "anticipate", "intend" and similar expressions. These statements reflect management's current expectations and assumptions and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially, including those described under "Risk Factors" in the Company's most recent Annual Report on Form 20-F and in subsequent reports furnished to or filed with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to update them except as required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/sophia-genetics-publishes-results-of-the-2026-annual-general-meeting-302806355.html

Q1 revenue of $21.7M (+22% YoY) with record platform usage — ~108,000 genomic analyses in the quarter (including >40,000 patients in March) and a growing core customer base of 537 with net dollar retention of 117%. Commercial momentum driven by rising U.S. decentralized testing and faster adoption of newer applications — 100 customers signed for MSK-IMPACT/MSK-ACCESS (with ~3,000 liquid biopsy analyses in Q1, +100% YoY) and early biopharma deals with names like AstraZeneca and Johnson & Johnson. Solid unit economics and a clear path to profitability: adjusted gross margin ~75.4%, operating loss $17.3M and cash of $65.4M (plus a $25M expanded credit facility), while management reaffirmed 2026 revenue guidance of $92–$94M and expects to approach adjusted EBITDA breakeven by end-2026 and turn positive in H2 2027. Interested in SOPHiA GENETICS SA? Here are five stocks we like better. SOPHiA GENETICS (NASDAQ:SOPH) reported first-quarter 2026 revenue of $21.7 million, up 22% from $17.8 million in the prior-year period, as demand increased for its SOPHiA DDM analytics platform and the company expanded its installed base of clinical customers and applications. Co-founder and CEO Dr. Jurgi Camblong said the company “delivered revenue growth of 22% year-over-year” and completed a record 108,000 genomic analyses during the quarter. He said SOPHiA also set a monthly record in March with “more than 40,000 patients analyzed in a single month.” → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Chief Financial Officer George Cardoza said platform analysis volume was approximately 108,000 in Q1, up from 93,000 in the first quarter of 2025, representing 16% growth. Cardoza noted that year-over-year revenue growth “would have been slightly stronger” absent a one-time customer true-up benefit in the prior-year quarter. The company ended the quarter with 537 core genomic customers as of March 31, up from 490 a year earlier. Cardoza said annualized revenue churn remained “less than 1% in Q1,” while net dollar retention rose to 117% from 103% in the prior-year period. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches President Ross Muken described three themes for the quarter, starting with increased U.S. momentum tied to growing acceptance of decentralized testing. Muken said that over the last 12 months, demand for decentralized testing has “materially increased in the U.S.” as reimbursement rates become more established and denial rates improve. In the quarter, SOPHiA announced an expanded partnership with Mount Sinai, which Muken said is using SOPHiA DDM “to bring hemato-oncology and solid tumor testing to the New York market.” He added that Mount Sinai joins other New York-area SOPHiA partners, including NYU Langone Health and Memorial Sloan Kettering Cancer Center. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries The second theme was adoption of newer applications such as MSK-IMPACT and MSK-ACCESS. Muken said that less than two years after decentralizing and deploying those tests globally, SOPHiA has “already reached a total of 100 customers worldwide” signed to adopt the applications, with about half currently implementing the platform and expected to start generating revenue over the next 12 months. Among customers who have completed implementation, the company recorded 3,000 liquid biopsy analyses in Q1, which Muken said was up more than 100% year-over-year. Muken also pointed to an “expand engine” driven by existing customers adding new applications. He said SOPHiA signed “many notable expand deals” in the quarter, including three in Europe each valued at over $1 million in annual contract value. The third theme, according to Muken, was increased momentum with biopharma. He said biopharma revenue growth was positive and contributed modestly to overall growth as recent contracts began generating revenue. Muken said the company has signed contracts in the last six months with “major biopharmas such as AstraZeneca and Johnson & Johnson,” as well as “biotechs like Cartos and others.” He also said partnerships with Myriad Genetics in the U.S. and A.D.A.M. Innovations in Japan are progressing as SOPHiA builds infrastructure for a hybrid global companion diagnostics (CDx) offering. Camblong said SOPHiA achieved an adjusted gross margin of 75.4%, which he described as evidence of the scalability of its analytics platform. Cardoza reported gross margin of 68.0% compared to 68.7% a year ago, while adjusted gross margin was 75.4% compared to 75.7% in the prior-year period. In response to a question on margin durability, Muken said the company has spent “quite a lot of effort modernizing the platform” over the past 24 months, adding that he believes “there’s a lot more scalability left, even as we bring on more complex solutions that require a lot more compute.” Cardoza said the company’s full-year guidance still assumes “modest improvement in gross margins,” while noting that pharma revenue can be “lumpy” on the margin line. Total operating expenses were $32.0 million, up from $28.2 million in the prior-year period. Cardoza highlighted several items impacting expenses, including foreign exchange. He said the strengthening Swiss Franc created “a pure translation effect,” noting it strengthened about 14% against the U.S. dollar from Q1 2025 to Q1 2026, increasing dollar-translated costs for Swiss payroll and facilities. Cardoza also discussed legal expenses tied to Guardant Health patent litigation, which he said relates to allegations that SOPHiA’s MSK-ACCESS application infringes Guardant patents. He said SOPHiA incurred approximately $1.4 million in related legal expenses in Q1, while the Unified Patent Court rejected Guardant’s request for provisional measures and ordered Guardant to pay interim costs totaling $700,000. Cardoza said $500,000 was received in mid-March and another $200,000 in mid-April, resulting in a net litigation impact on Q1 operating expenses of about $700,000. Operating loss was $17.3 million compared with $16.0 million a year ago. Adjusted EBITDA loss was $9.2 million, compared with a $9.5 million loss in the prior-year period. Cardoza said cash burn was $19.5 million, up from $11.7 million in the prior-year quarter, driven primarily by higher annual bonus and commission payouts paid in March following a strong 2025, investment in a new lab at the company’s Swiss headquarters, and litigation-related payments for costs incurred in early 2025. SOPHiA ended Q1 with $65.4 million in cash and cash equivalents as of March 31, including $14.5 million in ATM proceeds received during the quarter. Cardoza also said the company expanded its credit facility with Perceptive Advisors in January, increasing total available liquidity by $25 million. Management reaffirmed full-year 2026 revenue guidance of $92 million to $94 million, representing 20% to 22% reported growth, and reiterated expectations that growth will be “mostly back-half weighted” as customers signed in 2025 come online and as MSK-ACCESS, MSK-IMPACT Flex, and enhanced exome ramp into routine usage. The company also reaffirmed full-year adjusted EBITDA loss guidance of $29 million to $32 million, compared to $41.5 million in 2025. Cardoza said SOPHiA expects to approach adjusted EBITDA breakeven by the end of 2026 and to reach positive adjusted EBITDA in the second half of 2027. He added that the company is monitoring the conflict in the Middle East for potential effects on shipping and customer activity, but said it has not materially impacted results so far and the company does not believe it will have a material impact this year. Camblong said the quarter was his final earnings call as CEO ahead of his planned transition to Executive Chair in June. He said the company took “a series of targeted cost actions” that “modestly reduced head count and non-labor spend,” largely in support and operations functions, and described early results from internal AI productivity tools as “overwhelmingly positive.” In the Q&A, Muken characterized the cost actions as “quite small” and said they were primarily in G&A functions where efficiency improved, with some redeployment toward commercial efforts in the U.S. He also said the company is focused on reducing time to revenue through implementation improvements, adding that the pacing of some large customer implementations has picked up. Closing the call, Camblong said SOPHiA’s platform has impacted “40,000 patients per month and 2.5 million patients since inception,” and reiterated confidence in the company’s long-term trajectory as it continues to scale its network and data-driven offerings. SOPHiA GENETICS SA is a data-driven medicine company founded in 2011 and headquartered in La Tène, Switzerland. The firm develops and operates a cloud-native software platform designed to standardize and analyze complex genomic and radiomic data. Its core offering, the SOPHiA DDM™ platform, leverages artificial intelligence and machine learning algorithms to help healthcare institutions, laboratories and biopharmaceutical partners derive actionable insights from next-generation sequencing and medical imaging datasets. The SOPHiA DDM™ platform supports a range of clinical applications, including oncology, hereditary diseases and rare genetic disorders. The article "SOPHiA GENETICS Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Tuesday, May 5, 2026 at 8 a.m. ET Chief Executive Officer — Jurgi Camblong Chief Financial Officer — George Cardoza Chief Executive Officer (Incoming), Chief Business Officer — Ross Muken Operator Jurgi Camblong: Thanks, Ken, and good morning, everyone. I'm pleased to report that SOPHiA is off to a strong start in 2026. In the first quarter, we delivered revenue growth of 22% year-over-year. We also performed a record 108,000 genomic analysis as demand for SOPHiA DDM accelerates across the globe. In addition to processing more data volume than ever, we also achieved adjusted gross margin of 75.4%, demonstrating the unique scalability of our hyper-efficient analytics platform. Ross and George will walk you through the commercial and financial details in a few minutes. But first, let me step back and frame why this quarter matters strategically. The precision medicine landscape is at an inflection point. Sequencing costs are declining, data per patient is exploding, and AI is becoming essential for delivering the highest standard of care. As a result, hospitals and labs around the world are increasingly looking to scale their genomics testing capabilities. With the right partners, turnaround times become faster, economics become profitable and data generated becomes invaluable for performing research and making discoveries. SOPHiA DDM was built for this moment. Our platform streamlines testing and allows any institution anywhere in the world to quickly scale their own world-class precision medicine capabilities. SOPHiA DDM provides customers with not just a tool, but an AI native service that delivers workflow outcomes, generating highly accurate insights and faster speeds while also unlocking profitable economics for institutions. But that's not all. SOPHiA DDM also makes patient care more intelligent by breaking data silos and allowing clinicians to tap into a collective intelligence of the smartest minds in health care. As hospitals use SOPHiA DDM to generate insights and treat patients, they also contribute a stream of data and knowledge back into the platform. As more data flows through the platform, our algorithms become smarter. This in turn enables boost and clinicians to get better insights, building trust along the way. Deeper trust, smarter insights and better outcomes ultimately accelerates new platform adoption, creating a virtuous loop with compounding growth effects. As of Q1, this adoption loop has enabled us to connect 537 institutions across the globe who use SOPHiA DDM every day for genomic analysis. In the quarter, this institution uploaded real-time real-world genomic data for 108,000 patients. And in March, we set a new company record with more than 40,000 patients analyzed in a single month. This diverse real-time real-world data stream includes patient data from 75 countries worldwide, creating breadth and globe exposure and is unmatched in our space. Over the past 2 years, our rich diverse data set, which includes nearly 2.5 million genomic profiles since inception has enabled us to build some of the most sophisticated AI in health care. New applications in liquid biopsy, solid tumor, MRD for AML and enhanced exams are impressing our users with their accuracy, flexibility and AI-powered insights. And the good news is we're just getting started. Our top innovation priorities going forward will focus on deepening clinical relationships and getting closer to the patients. To accomplish this, we will expand platform capabilities to new areas as the market evolves. This includes supporting larger, more complex NGS applications like all transcriptome and methylation, tracking patients longitudinally with MRD, mastering data compute at scale, optimizing the end-to-end workflow and developing increasingly regulated products. It also includes expanding capabilities beyond genomics into multimodal to support clinical decision-making and accelerate the future of data-driven medicine. Our planned innovations are also designed to resonate with biopharma. Throughout the year, we will invest in evolving our data sets into durable commercial assets for real-world evidence. In addition, we are working hard to create a global decentralized companion diagnostics offering that brings life-saving therapies to patients across our network. In short, our unique positioning and data set are enabling us to build for the future. We have been a technology company since day 1, building real AI to solve the world's most difficult biological challenges. The market is coming to us, and I couldn't be more confident in our ability to deliver products for future growth. As we continue to invest in the future, we also must remain committed to growing in a sustainable way. Across the organization, our teams are hyper focused on continuous improvement, efficiency and operational excellence. We benefit from a young, agile and tech-centric workforce that has been quick to adopt and deploy emerging productivity tools, including the new AI technologies in the market. Early results from our internal rollout of these AI tools has been overwhelmingly positive. In Q1, we materialized the benefits of recent efficiency gains and took a series of targeted cost actions, which modestly reduced headcount and nonlabor spend across the business. These actions, which mostly focused on support and operations functions have allowed us to invest even more in high-growth areas while also ensuring that we meet our profitability commitments going forward. As the year continues, we will look forward to updating you on our progress in showcasing the impressive operating leverage that is inmates to our business model. In closing, Q1 was a strong quarter for SOPHiA. The market is reshaping itself around intelligence, and we are perfectly positioned to accelerate this movement. Our network is compounding and our data is unmatched. We continue to scale and our path to profitability is becoming increasingly clear. As I close out my final earnings call as CEO before I transition to Executive Chair in June, I'm happy to transition leadership of a business that is in excellent shape to a capable leader who will propel SOPHiA to its next stage of growth. With that, I will now turn the call over to Ross, who will provide a more detailed update on the business and growth drivers for the year. Ross Muken: Thanks, Jurgi. I certainly share your excitement about the business. And today, I'm pleased to share an update on our progress to start the year. In the first quarter, 3 major themes defined the quarter. First, the U.S. business continues to gain momentum. Decentralized testing has always been a widely accepted characteristic of the European and global market. However, in the last 12 months, demand for decentralized testing has materially increased in the U.S. as reimbursement rates become more established and denial rates improve, hospitals and labs are waking up to the benefits of scaling their own testing capabilities. Central labs have proven that testing is profitable and that genomic data has significant value. Now U.S. hospitals and labs are making testing part of their core strategy, and those who move are seeing significant benefits. In the first quarter, we announced an expanded partnership with Mount Sinai, one of the leading academic health systems in the U.S. who is using SOPHiA DDM to bring haemato-oncology and solid tumor testing to the New York market. They joined a growing number of New York area institutions to partner with SOPHia, including NYU Langone Health and Memorial Sloan Kettering Cancer Center. As more institutions adopt SOPHiA DDM, the cost of not having our platform becomes real. Regional density causes patients, providers and even payers to push testing volumes towards sites which offer the best insights at the lowest cost with the fastest turnaround times. We're proud to work with our partners to bring these positive structural changes to the New York testing market and welcome a decentralization revolution to the New York City area. The second key theme for the quarter was continued growth of new applications such as the MSK Impact and MSK Access test. In Q1, less than 2 years after decentralizing and deploying these tests globally, we have already reached a total of 100 customers worldwide who have signed on to adopt the applications. A few of these include prestigious Q1 signings such as Master UMC, a leading Dutch academic medical center, Hospitalia Niguarda, one of Italy's leading hospitals in Milan and Rural University Bulcum in Germany. These customers, along with half of the 100 signed accounts are currently implementing SOPHiA PBM, which means they should begin generating revenue over the next 12 months. Among those who have completed implementation, we are pleased to record 3,000 liquid biopsy analysis in Q1, up more than 100% year-over-year. We look forward to this number continuing to grow as more customers finish their implementation, and start using the sophisticated high SP application. New applications such as liquid biopsy and enhanced exomes help our sales team expand within accounts. As a reminder, we landed a large amount of new customers in 2025 with 124 new signings throughout the year. As we turn to 2026, a major focus will be expanding across these customers by encouraging them to adopt additional applications. I'm proud to say that our expand engine is off to a strong start in the first quarter. Net dollar retention, or in other words, same-store growth increased to 117%, up from 103% in the prior year period. Moreover, forward-looking indicators show no signs of stopping. In Q1, we signed many notable expand deals, including 3 in Europe that were each valued at over $1 million in annual contract value. This serves as another impressive proof point for the virtuous loop fueling our platform's growth. It also shows that hospitals are excited to consolidate their data strategies with trusted partners in a market where winner take most dynamics are forming. The final theme for the quarter was substantial increased momentum with biopharma. In the first quarter, biopharma revenue growth was positive and contributed modestly to overall growth as some of the recent new contracts we signed began to generate revenue. We continue to make progress with a growing number of biopharma partners and momentum is strong. Coming out of AACR and World CD and CDx Summit Europe 2026, it is clear that biopharma customers are looking to develop comprehensive AI investment strategies with trusted partners. It is also clear that every biopharma company we speak to recognizes that SOPHiA provides differentiated value across the drug continuum. They recognize that our diagnostic network is unmatched in global reach and that the data streaming through our platform has incredible value. They also appreciate our deep AI expertise in the field of biology. Our offering is continuing to resonate as one of the only companies in this space that could support a drug across its entire life cycle from companion diagnostics to post-launch monitoring with real-world evidence to patient selection and trial design. In the last 6 months, increasing momentum has materialized in the recent signing of contracts with major biopharma such as AstraZeneca and Johnson & Johnson as well as biotechs like Kartos and others. Moreover, our partnerships with Myriad Genetics in the U.S. and added innovations in Japan continue to progress as we work on building out the infrastructure for a hybrid global CDx offering. We look forward to updating you more on these items over the coming weeks and months. Looking ahead to the remainder of 2026, our pipeline across clinical and biopharma remains strong and healthy even after strong bookings conversion. Deal size continues to grow and the number of opportunities in our pipeline above $1 million are becoming even more numerous. The market is moving in our direction, and we are excited to continue capitalizing on our opportunity. With that, I will now turn it over to George, who will provide a more detailed look at our financial results and the outlook for 2026. George Cardoza: Thank you, Ross. As Jurgi and Ross highlighted, Q1 results were strong and our outlook remains positive. Total revenue for the first quarter was $21.7 million compared to $17.8 million for the first quarter of 2025, representing year-over-year growth of 22% I will note that year-over-year revenue growth would have been slightly stronger if not for a onetime benefit in the prior year period from a customer true-up. Platform analysis volume was approximately 108,000 in Q1 compared to 93,000 in the first quarter of 2025, representing solid growth of 16%. From a regional perspective, U.S. volumes continue to expand at healthy levels, growing 28% year-over-year in Q1. APAC also outperformed with 31% volume growth. In EMEA, revenue grew 30% year-over-year, impressively above the company average, mostly driven by great performance in the U.K., Belgium and Switzerland. In Latin America, revenue remains soft, and we have made changes there to turn around our performance. From an application standpoint, Hem/Onc revenue grew 24% year-over-year. Rare and inherited growth also picked up in the quarter with volumes growing over 20% as our enhanced exome product begins to come online. As Ross mentioned, liquid biopsy, which carries a higher ASP, continues to ramp and contribute to our revenue growth as well with more growth expected for the second half of the year. Core genomic customers were 537 as of March 31, up from 490 in the prior year period. Annualized revenue churn remained world-class at less than 1% in Q1. As Ross mentioned, net dollar retention for the quarter was 117%, up from 103% in the prior year period. Gross profit was $14.7 million compared to $12.2 million in the prior year period, representing growth of 21%. Gross margin was 68.0% compared to 68.7% for the first quarter of 2025. Adjusted gross profit was $16.4 million, an increase of 22% compared to adjusted gross profit of $13.4 million in the prior year period. Adjusted gross margin was 75.4% compared to 75.7% for the first quarter of 2025. Total operating expenses for Q1 were $32.0 million compared to $28.2 million in the prior year period. Some specific items temporarily impacted reported operating expenses and are worth calling out directly as they do not reflect the company's underlying operating performance. First, foreign exchange headwinds continue to negatively impact reported results, primarily due to the strengthening of the Swiss franc. The Swiss franc strengthened approximately 14% against the U.S. dollar from Q1 2025 to Q1 2026, meaningfully increasing the dollar translated costs of our Swiss payroll and facilities. This is a pure translation effect as our underlying cost structure in local currency remains disciplined. Second, as previously disclosed, Guardant Health filed patent infringement claims against us in the United Kingdom and at the Unified Patent Court in Paris during Q3 last year, alleging that our MSK access application infringes their patents. We incurred approximately $1.4 million in related legal expenses during Q1, which is reflected as a litigation adjustment in our adjusted EBITDA reconciliation. Importantly, in January, the UPC rejected Guardant's request for provisional measures and ordered them to pay us $700,000 in interim costs, $500,000 of which we received in mid-March and an additional $200,000, which we received in mid-April. Net of this recovery, litigation impact on Q1 operating expenses was approximately $700,000. Operating loss for the first quarter was $17.3 million compared to $16 million in the prior year period. Adjusted EBITDA was a loss of $9.2 million compared to the prior year loss of $9.5 million. Lastly, cash burn, which we define as the change in cash and cash equivalents, excluding cash received from borrowings and stock sales as well as FX impacts, was $19.5 million compared to $11.7 million in the prior year period. This year-over-year increase reflects 2 expected dynamics. First, coming off a strong 2025, annual bonus and commission payouts were meaningfully higher than the prior year, and these were paid in March. Secondly, we also invested in the build-out of a new lab at our Swiss headquarters with increased capacity to support revenue growth for years to come. This impacted our cash burn by approximately $1 million in the quarter. Third, we continue to vigorously defend ourselves against the patent infringement lawsuit filed by Guardant Health, and we paid several bills for expenses incurred in the first quarter of 2025. The $500,000 from Gardens in Q1 and the additional $200,000 received in April only cover a portion of our total litigation costs. We ended Q1 with cash and cash equivalents of $65.4 million as of March 31, which includes $14.5 million in ATM proceeds received in the first quarter of 2026. In January, as previously disclosed, we also expanded our credit facility with Perceptive Advisors, increasing total available liquidity by $25 million. We remain confident in our current capital position with respect to the achievement of our long-term goals. I'll now turn to the 2026 outlook. Given the promising revenue growth in Q1, SOPHiA GENETICS is reaffirming our full year revenue guidance for 2026 of $92 million to $94 million, representing 20% to 22% growth on a reported basis. We still expect 2026 growth to be mostly back half weighted as new business signed in 2025 comes online in the second half of the year and as more MSK ACES, MSK IM PACFLEX and enhanced exome business ramps up to routine usage. We also expect that exchange rates will remain volatile due to macro uncertainties, which may have an impact to reported results. Beyond revenue, we are also reaffirming our full year adjusted EBITDA loss guidance of $29 million to $32 million compared to $41.5 million in full year 2025. As demonstrated this quarter, we continue to make targeted investments in our platform to further optimize cloud compute and storage costs and expect gross margins to slightly expand beyond 2025 levels. As a global company, we are monitoring the ongoing conflict in the Middle East closely, particularly with respect to shipping and customer activity in the region. So far, the conflict has not materially impacted our results, and we do not believe it will have a material impact this year. In Q1, as Jurgi mentioned, we took a series of cost actions and realized benefits of adopting AI across our teams. These actions reinforce our conviction to grow revenue without increasing headcount. They also give us confidence that we will be able to continue holding the line on operating expenses in local currencies and reach our profitability guidance. All said, we continue to believe that we are on track to be approaching adjusted EBITDA breakeven by the end of 2026 and crossing over to positive adjusted EBITDA in the second half of 2027. With that, I would like to turn the call back over to Jurgi for closing remarks before we take your questions. Jurgi Camblong: Thank you, George. As I wrap up my last earnings call as CEO of SOPHiA GENETICS I feel confident as ever in our long-term trajectory. Forward-looking indicators remain strong across the business. We continue to see a steady stream of customer signings across new and existing customers. Biopharma interest is growing and our pipeline is expanding across regions and applications. At the same time, we continue to be laser-focused on optimizing costs and delivering sustainable growth. Thank you to the SOPHiA team, customers, partners and investors for your continued trust and partnership. 15 years ago, we had an ambitious vision to transform health care through data and AI. Today, we operate the most widely used AI-driven platform in precision medicine, impacting 40,000 patients per month and 2.5 million patients since inception. I'm so proud of what our team has accomplished over the past 15 years, and I know we are just getting started. Operator, you may now open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Mark Massaro from BTIG. Mark Massaro: Congrats on the quarter. Jurgi, I appreciate the network that you've built globally to decentralize this testing and look forward to working with you as you move to the Executive Chairman role. Sure thing. Yes. So moving into my question, I guess, the adjusted gross margin of 75% was certainly a key highlight of this print. Can you just give us a sense, guys, for your degree of confidence to maintain or how do you think about this gross margin profile going forward? I know that you are planning to onboard some higher mix applications. So is this something that you think you can build on here? Or were there some onetime items that might be lumpy on the gross margin line? Jurgi Camblong: Ross? Ross Muken: So Mark, we've really spent quite a lot of effort modernizing the platform over the past 24 months as we've talked about our Gen 2 transition, and I think you're seeing the benefits of that. And I think there's a lot more scalability left even as we bring on more complex solutions that require a lot more compute. And so in general, I'm super happy with how the team has executed here. I think fundamentally as well, we're seeing positive pricing dynamics in our environment. So you have both the mix of trade up to more complex solutions as well as more value realized for solutions like ours as a percentage of total cost of diagnostic or as a percentage of revenue. So I think on both of those parameters, this is quite constructive for us. And so I'll let George comment on what's contemplated going forward. But for me, I still think there's some room to go, but certainly, we're very pleased with how we've executed. George Cardoza: Yes. No, Mark, as Ross said, I mean, we're very pleased with the performance of our tech team, and we were pleased with where gross margin came in for the quarter. We do have some pharma business. And if anything could be lumpy on the margin side, it would probably be more of the pharma business. Our full year guidance was modest improvement in gross margins, and we're still holding to that. But certainly, we were pleased with where Q1 came in. Mark Massaro: Okay. Great. And it looks like you guys took some cost reduction actions in the month of April. It looks like it's a small action, but can you just speak to which regions were impacted? Anything in the U.S. that was material? And how should we think about that in terms of headcount? Ross Muken: So a couple of things, Mark. So one, the action was quite small, right? So it was a very modest change to the cost structure. We are an organization very focused on continuing improvement. We've also seen some gains in parts of the business from -- and so we wanted to be able to drop some of that down and then reinvest other parts. So I would say, in general, again, this was quite isolated and generally, I would say, in the G&A functions where we gained efficiency. And so this was our ability to show that, obviously, we're an organization very committed to our profitability targets. And also as a software and AI business, we're one that could not only obviously deploy games to our customers, but also utilize some of that on our own operations, which will help us again, as we scale as growth continues to reaccelerate here. George? George Cardoza: Yes. No. And again, we've -- in our guidance for the year, we said EBITDA -- adjusted EBITDA of $29 million to $32 million. And this was an important part is maintaining that cost discipline across the organization. And like Ross said, that's just part of what we're doing and making sure that we continue to have that discipline going forward. And as mentioned, Mark, regionally, most of it was G&A. So I would say probably a bit more concentrated in the Swift operations. But honestly, no real geographic bias to it. And actually, the U.S. is where some of the headcount redeployment, particularly on the commercial side will go. It will be modest. And that's because we're seeing really great characteristics in that business and really are confident in our ability to continue to grow market share in the territory. Mark Massaro: Great. And maybe just my last question. You alluded to the fact that you signed a lot of new customers in 2025, many of which are planning to turn on to the DDM platform in the second half. I just wanted to get a sense for -- obviously, you did reaffirm the revenue guidance, but I just want to get a sense for whether or not you believe that you're tracking to initiating the go-lives for many of these customers and wanted to test your degree of confidence on these folks coming on to the platform. Ross Muken: So Mark, we came in ahead of our plan in the first quarter. So we're very happy with our performance. You know we're conservative. And so given it's early in the year, despite we're really pleased with the signals and we remain extremely confident in sort of the customer onboarding and progression. We want to make sure that we're well set up for the year. So I would say stay tuned. But ultimately, we're feeling very good around delivering on our commitments and ideally, obviously outperforming. I would say, overall, on the onboarding side, I'm really pleased with our implementation team on our tech side and our bioinformatics group as well as in services. We've seen the pacing of some of the large customers pick up. We have quite a number of them coming online, including some that came on late in March, which helped with that record month that you saw. and helped us have a record quarter. And so my expectation is that we will -- that cadence will continue to improve. Again, a lot of the AI and other initiatives we have are focused on speeding up that time to revenue. And so again, as George talks about the back half ramp, a good portion of that is highly visible and is obviously tied somewhat to some of those customers, particularly some of the large U.S. ones coming online, and we remain super confident on our ability to execute on that. And ideally, if they ramp consistent with what we've seen historically, that may provide some cushion for upside as we tend to initially guide fairly conservatively for the on-ramp of new business. So again, a lot to look forward to on our side as that growth ideally continues to move in a favorable direction. Operator: Your next question comes from the line of Dan Brennan from TD Cowen. Kyle Boucher: This is Kyle on for Dan. I wanted to jump into your net dollar retention, which accelerated again this quarter to 117%. Can you just discuss some of the drivers a little bit more? I mean is this more driven by customers expanding into multiple applications on DDM? Or is it more a mix of the uptake of higher ASP tests like MSK ACES that's driving that performance? Ross Muken: Thanks, Kyle. Obviously, we're happy to see that metric get back to, I would say, really high-quality standard among software businesses. So we're quite pleased with the organic growth. As you mentioned, it's coming from a mix, right? So we were very intentional this year versus the last 2 years of really focusing on the expand -- and so that obviously will benefit the NBR line. And ideally, this will continue into next year. This is a very high ROI acceleration as well as it carries with it very little incremental cost. And so it helps as we think about our shift to EBITDA profitability. I would also say, and you can see it by the strong EMEA results, the underlying growth in our industry, I think, has become healthier. You see it in one of the large equipment vendors numbers relative to clinical consumable growth. But I think overall, customers are healthy. New technologies are coming online. For us, that would be things like liquid biopsy or exomes. And in general, pricing remains, as I mentioned, favorable. So I think the component of all of that with incredibly low churn all of that comes together to give us confidence that the improvement in sort of that organic underlying growth rate will sustain. Kyle Boucher: Got it. And then maybe just on your Latin America business. You noted it was soft in the first quarter. I think in your 6-K, it said it was down over 30%, but I believe you had a really tough comp there year-over-year. Can you just dig into some of the trends that you're seeing in Latin America and just expand upon that a bit? Ross Muken: Yes. So thank you for the question. Obviously, we've been disappointed in that region, albeit it's a small one, but it's strategically important for the last number of quarters. So we did make a change there in leadership. I was actually just there myself very recently as was our CSO in Brazil and Colombia and Argentina, all 3 critical countries. I would say Brazil at the moment is where some of that softness is kind of isolated. And so we've got some ideas and thoughts of how we're going to reaccelerate the territory. I would say I'm quite optimistic on Mexico and Colombia and to a lesser degree, Argentina. But I think overall, we expect the region to return to growth. We think we're going to make the necessary changes there, and we think the portfolio is also well positioned. It's also a region that's highly pharma sensitive. And so sometimes as well, it's dependent on where pharma pipelines are, and there are a few key new drugs coming online that will be highly relevant for Latin America. And so we would expect that as well to drive an increase in testing in some of the geographies. And so overall, I would say we're cautiously optimistic, but certainly, we've taken actions to ensure that we get back on track in this strategic territory. Operator: Your next question comes from the line of Bill Bonello from Craig-Hallum. William Bonello: A couple of questions here. First of all, I want to follow up on one of the questions that Mark asked just about implementation time. But more specifically to MSK ACES. I'm just curious what you're seeing these days in terms of sort of typical onboarding time once a customer has said that they want to adopt MSK Access? And then what you're kind of seeing as a typical ramp once they're up and running the test? Ross Muken: Bill, it's a great question. Thank you. So obviously, as you know, MSK Access is incredibly important to us. We're really proud of the 100 accounts that have come online, if you just put that in context. the world didn't really have liquid biopsy testing outside of the United States. And so we're really pleased to see it adopted at this great rate. And we're also really proud to have great pharma partners in that journey that have helped us in that adoption rate. And so I would say, overall, I wish I could tell you that there's a pattern on some of the adoption. I would say several accounts have come online and oncologists have really, I would say, understood how to utilize the technology, and we've seen volumes ramp. I think others take more education. And so again, there's varying degrees of sophistication and understanding on different sort of cancer types dependent on where we look around the world. But at the moment, about half of the accounts are online. I would say they're all ramping. We continue to believe this will be a very material part of the incremental growth. And so overall, I would say we're pleased. But certainly, you start to see some of that impact the revenue line, but I would say more is to come over the next several quarters and into 2027. And so far, it's hitting our internal expectations, but we'd obviously like to see that inflect more materially. And we think we, again, better doctor education or oncologist education in some of the territories. And then if you see some of what's going to be presented at ASCO as well as at ESMO, our expectation is all of this will help drive with that utilization to much higher levels over time. But it's been pretty broadly adopted, right? And so you should expect to see different adoption curves in each of the different nations. William Bonello: That's helpful. And then just a follow-up on the pharma side. And you touched on this just slightly in your response to that question. It's great to see the recovery there. It does seem like typically pharma revenue might capture a lower multiple just because it's not seen -- it is seen as potentially less recurring. Could you maybe talk to us about how you think about the pharma business vis-a-vis the clinical business? In other words, how does pharma drive clinical if it does? Ross Muken: Bill, it's another great question. So -- and it ties, frankly, into your first question because a product like MSK ACES, which is really a platform for pharma, does have a fantastic flywheel between biopharma and clinical usage, as you alluded to. So I would say, overall, we're very pleased finally with where our pharma business is performing. We've now gotten back into the green, and we're starting to see some nice momentum where I think over the next several quarters, you'll see that acceleration play out in the total revenue performance. So certainly, quite a different picture than where we were 24 months ago. As you know, we made some tough decisions in that business, and we really refocused and we're seeing the benefits now of that play out in the numbers. And so I would say, again, one of the key things we've strategically decided to do is less kind of large one-off project type business that doesn't yield strategic and/or recurring revenue benefits. So we're much more confident that the type of business we're bringing online is recurring, can be repeated and can be scaled. And as you think about, again, some of the types of CDx projects even that we do, much of that is done with the intent of not only being able to serve pharma through the CTA and CDx portion, but obviously, on the clinical side thereafter. And the idea that you can have one harmonized global solution in all markets, right? Think about that in liquid biopsy that doesn't require large bridging studies that doesn't require some hybrid mix of 7 or 10 laboratories around the world solving for a geographic or a global picture. I think it's a super compelling offering. And it's also different in that for us, we're already embedded in so many of these accounts. And so once we flip the switch from some of the pharma work into the clinical market, it's the same solution, right? And we can start relatively quickly serving customers in that market post approval for a drug. So I think for us, again, that flywheel is hypercritical. We're really happy with the progress pharma has made. And I would say, overall, you can hear from us our confidence is up. Again, we're not declaring victory. We're just starting to show kind of the right level of performance here, but it's certainly materially better than where we were even 12 months ago. Operator: Your next question comes from the line of Subu Nambi from Guggenheim Securities. Subhalaxmi Nambi: This is Ricky on for Subu. So in the slides, you have the average price per analysis ranging from $100 to $500. And for the first quarter, just some back of the envelope math here, it comes in around $195 per sample analysis -- per analysis. So what is your expectation for the ASP trend through the remainder of the year? And what are you assuming for this in guidance? Jurgi Camblong: George? George Cardoza: Yes. If we exclude the pharma business and just look at the clinical business, our price sequentially was up $2. So as Ross said, we're building in terms of selling more higher-value tests. So our expectation is to continue to see that lift as the quarters go on during the year. And we continue to see the access clients, the 100 clients that we booked ramp up. So we're optimistic about ASP. Now there's a balance there because, obviously, we are expecting growth now in our Latin America business and some emerging markets like India and Turkey. But still, in terms of modeling, we do expect the ASP to have lift in it for the remaining quarters of the year. Subhalaxmi Nambi: Got it. That's helpful. And a lot has been asked on biopharma, but maybe just a slightly different approach of the question. You mentioned how this is a modest positive contributor to growth in the quarter, and there was lots of positive color on signings and outlook. But did the quarter turn out the way you expected? Or was it above your expectations? And did it change what you're expecting for the remainder of the year? Ross Muken: Yes. So as I mentioned before, we're quite conservative, Ricky. So despite the fact that pharma performed quite well, and I would say we're optimistic for continued sequential improvement and a step-up in the second half of the year as well. We did not change our expectation in the guide. I'll let George give some color. But I think just fundamentally there, since we're early in that reacceleration, we want to remain conservative. But what we're trying to convey is if we look at the picture in terms of -- and even for myself, I was at two large conferences during the quarter. If we look at the level of interactions we're having with pharma and what we're discussing and the comprehensive nature of that, if we look at the RFPs we're responding to, if we're looking at what's in the pipeline and what's late stage and then what we've now executed on over the last several quarters in terms of new pharma customers as well as new contracts with our existing customers. It's a much better mix than what we've seen in the past, both across, frankly, diagnostics and data. And we haven't talked about data or our evidence generation business in a while, but we're actually seeing as well there subtle improvements. And so I think overall, what we're trying to kind of point to is our increased confidence that, that will improve, but we remain conservative, right, George, in terms of how we factor that into the forecast. George Cardoza: Yes. We're very pleased with the performance of the Pharma business. As Ross said, I mean, it's really been building momentum. It's tangible. We can see it. And again, I think in 2026, it's going to be an accelerator, but it's really going to be an accelerator in 2027 and beyond as that business just continues to build and build. Operator: There are no further questions. Please continue. Jurgi Camblong: Well, thank you so much for joining us today and for joining us and me in a journey of 15 years. I'm very happy to basically let the driving seats to a fantastic leader who sits next to me here in Switzerland today, surrounded by a very talented team and with a technology that is better than ever to be able to capture even more opportunities in the market. So I'm very, very pleased with what we have achieved, and please continue following us. As you will see, we will continue to transform precision medicine over the next years. Thank you. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect. 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Management attributes the 22% revenue growth to a global shift toward decentralized testing, particularly in the U.S. where established reimbursement rates and improved denial rates are incentivizing hospitals to scale in-house genomics. The record 108,000 genomic analyses performed in Q1 reflects an accelerating 'adoption loop' where increased data volume improves AI algorithm accuracy, fostering deeper institutional trust and further platform expansion. Operational efficiency gains were driven by the internal deployment of AI productivity tools and targeted cost actions in support functions, allowing for reinvestment into high-growth commercial areas. Strategic positioning is shifting toward 'winner-take-most' dynamics as hospitals consolidate data strategies with trusted partners to achieve faster turnaround times and profitable economics. The biopharma segment is transitioning from one-off projects to recurring, scalable contracts focused on the entire drug life cycle, from companion diagnostics to post-launch real-world evidence. Management highlighted that regional density in markets like New York is creating a competitive necessity for institutions to adopt the platform to avoid losing testing volume to sites that offer better insights at lower costs and faster turnaround times. Full-year 2026 revenue guidance of $92 million to $94 million assumes a back-half weighted ramp as new business signed in 2025 completes implementation and reaches routine usage. The company expects to reach adjusted EBITDA breakeven by the end of 2026 and achieve positive adjusted EBITDA in the second half of 2027 through sustained cost discipline and revenue scaling. Innovation priorities are focused on deepening clinical relationships by expanding into complex applications like whole transcriptome, methylation, and longitudinal MRD tracking. Management anticipates gross margins will slightly expand beyond 2025 levels, supported by optimized cloud compute costs and a shift toward higher-value applications like liquid biopsy. The transition of CEO Jurgi Camblong to Executive Chair in June is framed as a handoff of a business in 'excellent shape' to established leadership focused on the next stage of growth. Foreign exchange headwinds, specifically the 14% strengthening of the Swiss franc against the U.S. dollar, significantly increased the translated cost of Swiss payroll and facilities. Ongoing patent litigation with Guardant Health resulted in $1.4 million in legal expenses, partially offset by a $700,000 interim cost recovery ordered by the Unified Patent Court. A $1 million investment in a new lab at the Swiss headquarters impacted Q1 cash burn but is intended to support long-term revenue growth capacity. Softness in the Latin American market, particularly Brazil, led to leadership changes and a strategic pivot to reaccelerate growth in the region. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management expressed confidence in maintaining high margins due to the 'Gen 2' platform modernization which optimized compute costs even for complex solutions. Positive pricing dynamics and a mix shift toward higher-value diagnostic solutions are expected to provide further room for margin expansion, though biopharma revenue can be 'lumpy'. Approximately half of the 100 signed MSK Access accounts are currently online and ramping, with the remainder expected to generate revenue over the next 12 months. Adoption curves vary by region based on oncologist education and local sophistication, but management expects a material incremental growth contribution through 2027. Growth was driven by a deliberate 'expand' strategy focusing on existing customers adopting additional applications like liquid biopsy and enhanced exomes. The high retention rate is characterized as high-ROI acceleration because it carries minimal incremental cost compared to new customer acquisition. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

BOSTON and ROLLE, Switzerland, May 5, 2026 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a global leader in Ai-driven precision medicine, today reported financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial Results Revenue was $21.7 million, up 22% year-over-year Gross margin was 68.0% on a reported basis and 75.4% on an adjusted basis, compared to 68.7% reported and 75.7% adjusted in the prior year period IFRS net loss was $19.3 million, an increase of 11% year-over-year; Adjusted EBITDA loss was $9.2 million, improving 3% year-over-year "We started 2026 strong, delivering 22% year-over-year revenue growth and a record 108,000 genomic analyses on SOPHiA DDMTM," said Jurgi Camblong, PhD., Chief Executive Officer and Co-Founder of SOPHiA GENETICS. "Demand for our platform continues to grow, as U.S. hospitals and laboratories increasingly look to launch Ai-powered precision medicine capabilities, and customers across the globe continue to show strong interest in new applications such as Liquid Biopsy and Enhanced Exomes." Camblong added, "Looking ahead, new business momentum remains strong. Exciting new applications, continued U.S. expansion, and rising interest from BioPharma provide major catalysts for future growth. Accelerating growth, in combination with our strong gross margin performance and persistent focus on operational excellence, position us well to deliver meaningful operating leverage as the year progresses." Business Highlights Expanding with existing customers Performed a record 108,000 analyses on SOPHiA DDMTM, representing 16% year-over-year volume growth Delivered strong analysis volume growth in the U.S. and Asia Pacific (APAC) with 28% and 31% year-over-year growth, respectively; Europe and Middle East (EMEA) revenue was up 30% in the period Expanded our footprint with existing customers as Net Dollar Retention increased to 117% in Q1 2026, up from 103% in Q1 2025 Signed three notable expansion deals in EMEA, each valued over $1 million per year, as existing customers continue to add new applications, in addition to continued expand momentum in the U.S. Reached 537 core genomics customers as of March 31, 2026, up from 490 customers a year ago Landing new customers to fuel future growth Signed 18 new core genomic customers in Q1 2026, which are expected to begin generating revenue over the next twelve months Continued to sign premier healthcare institutions across the globe, including CHU Bordeaux's Haut Lévêque Hospital, one of France's major university hospitals, for HemOnc; Maastricht UMC, a leading Dutch academic medical center, for MSK-ACCESS® powered with SOPHiA DDMTM; and Christian Medical College, one of India's most prestigious medical institutions, for HemOnc Accelerating growth in the U.S. market Achieved 28% year-over-year U.S. analysis volume growth in Q1 2026 Announced an expanded partnership with Mount Sinai Health System, one of the leading academic health systems in the U.S., which is adopting SOPHiA DDMTM for HemOnc and Solid Tumor testing; Mount Sinai joins a growing network of New York-area partners, including NYU Langone Health and Memorial Sloan Kettering Cancer Center Signed Protean BioDiagnostics, a Florida-based cancer diagnostics company, which is adopting SOPHiA DDMTM for Solid Tumor testing Scaling growth with new applications Reached a total of 100 customers across 30+ countries signed-to-adopt the Liquid Biopsy application MSK-ACCESS® or the Solid Tumor application MSK-IMPACT®, less than two years after launch Performed nearly 3,000 Liquid Biopsy analyses in Q1 2026, up 100%+ year-over-year, as customers implement the application and begin to ramp usage Signed major new customers to the Liquid Biopsy application MSK-ACCESS® powered with SOPHiA DDMTM, including Ospedale Niguarda, one of Italy's leading hospitals in Milan; Ruhr University Bochum in Germany; and King Abdullah International Medical Center in Saudi Arabia Building BioPharma partnerships Continued to build momentum with BioPharma partners around evidence generation, sponsored deployment projects, and commercialization and co-development of future companion diagnostic (CDx) offerings Delivered positive BioPharma revenue growth in Q1, modestly accretive to the company's overall growth rate, as several recently signed new projects begin generating revenue Driving operational excellence Achieved a 75.4% adjusted gross margin in Q1 2026 by continuing to optimize compute costs and leverage the scale of the cloud-native SOPHiA DDMTM platform Executed targeted cost actions in April, modestly reducing headcount and operating spend as Ai-driven productivity improvements enabled us to streamline workflows while maintaining investment in key growth areas Reaffirmed commitment to profitable growth, expecting to approach adjusted EBITDA breakeven by the end of 2026 and cross over to positive adjusted EBITDA in the second half of 2027 2026 Financial Outlook Based on information as of today, SOPHiA GENETICS is reaffirming the following guidance: Full year revenue between $92 million and $94 million, representing approximately 20% to 22% year-over-year growth compared to FY 2025 Adjusted EBITDA loss between $29 million and $32 million, compared to $41.5 million in FY 2025 Earnings Call and Webcast Information SOPHiA GENETICS will host a conference call and live webcast to discuss the first quarter 2026 results on Tuesday, May 5, 2026, 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 EBITDA (non-IFRS measure) to loss for the period (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying depreciation expense, amortization of capitalized research & development expenses and intangible assets, interest income, interest expense, fair value adjustments on warrants, income taxes, foreign exchange gains or losses, share-based compensation expenses, social charges on share-based compensation, 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: Adjusted gross profit, which the company calculates as revenue minus cost of revenue adjusted to exclude amortization of capitalized research and development expenses; Adjusted gross profit margin, which the company calculates as adjusted gross profit as a percentage of revenue; Adjusted EBITDA, which the company calculates as loss for the period before depreciation, amortization, interest income, interest expense, fair value adjustments on warrant obligations, foreign exchange (losses) gains, net, income tax (expense) benefit, share-based compensation expense, social charges on share-based compensation, non-cash pension expenses, certain transaction costs and litigation expenses. 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: These non-IFRS measures exclude the impact of depreciation. Although depreciation is a non-cash charge, the assets being depreciated may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures; These non-IFRS measures exclude the impact of interest expense. Interest expense will continue to be for the foreseeable future a recurring expense based on the company's financial liabilities; These non-IFRS measures exclude the impact of interest income. Interest income will continue to be for the foreseeable future recurring income based on the company's financial assets; These non-IFRS measures exclude the impact of income taxes. Income taxes will continue to be for the foreseeable future a recurring expense incurred in the various jurisdictions in which the company operates; These non-IFRS measures exclude the impact of foreign exchange gains (losses),net. Foreign exchange gains and losses will continue to be for the foreseeable future a recurring expense incurred as the company participates in transactions outside of the company's functional currency; These non-IFRS measures exclude the impact of fair value adjustments of warrant obligations. Fair value adjustments on warrant obligations will continue to be for the foreseeable future a recurring expense incurred as the company has outstanding warrant obligations; These non-IFRS measures exclude the impact of amortization of capitalized research and development expenses and intangible assets. Amortization of these assets will continue to be for the foreseeable future a recurring expense incurred as the Company continues to invest in developing revenue-generating products through research and development. Although amortization is a non-cash charge, the assets being amortized may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures; These non-IFRS measures exclude the impact of share-based compensation expenses. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in the company's business and an important part of its compensation strategy; These non-IFRS measures exclude the impact of social charges related to share-based compensation. These social charges have been, and will continue to be for the foreseeable future, a recurring expense in the company's business; These non-IFRS measures exclude the impact of the non-cash portion of pensions paid in excess of actual contributions to match actuarial expenses. Pension expenses have been, and will continue to be for the foreseeable future, a recurring expense in the business; These non-IFRS measures exclude the impact of certain capital markets transaction costs. These costs may occur from time to time in the future as needed to complete the transactions; These non-IFRS measures exclude the impact of litigation expenses related to the company's defense of lawsuits filed by Guardant Health. These expenses are expected to continue for the duration of the litigation and may increase in future periods;and Other companies, including companies in the company's industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures. 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 an Ai-native healthcare technology company on a mission to transform patient care by expanding access to data-driven medicine globally. It is the creator of SOPHiA DDM™, an Ai platform that analyzes complex genomic and multimodal data to generate real-time, real-world 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. Notes to the Reconciliation of IFRS to Adjusted Financial Measures Tables View original content to download multimedia:https://www.prnewswire.com/news-releases/sophia-genetics-reports-first-quarter-2026-results-302761826.html