Sophia Genetics Earnings Call: Growth Surges, Losses Linger

Sophia Genetics Sa ((SOPH)) has held its Q4 earnings call. Read on for the main highlights of the call.

Sophia Genetics’ latest earnings call painted a picture of a company gaining commercial traction while still wrestling with profitability. Management highlighted accelerating revenue growth, rapid customer additions, rising platform usage and improving unit economics, but also acknowledged ongoing operating losses, FX-driven cost inflation and legal overhangs that investors must watch closely.

Revenue Re-acceleration and 2026 Outlook

Sophia Genetics reported 2025 revenue of $77.3 million, up 19% year over year, with Q4 revenue growing 22% to $21.7 million. Management projected 2026 revenue between $92 million and $94 million, implying a further acceleration to 20%–22% growth as recent wins begin to scale.

Platform Usage and Data Volumes Surge

Platform analysis volume exceeded 105,000 analyses in Q4, up 16% versus a year earlier, and topped 391,000 for 2025, roughly 11% growth on 2024. The platform processed nearly one petabyte of genomic data last year, almost double the throughput seen two years ago, underscoring rising utilization.

Record Customer Wins and Bigger Contract Sizes

The company signed a record 124 new customers in 2025 and successfully implemented 102 of them, including 29 in the fourth quarter alone. Total customers reached 993 worldwide, and the average contract value of new deals jumped 120% year over year, signaling deeper and higher-value engagements.

Strategic Deals Accelerate Enterprise Adoption

Sophia landed two of the largest integrated U.S. health systems, which plan to use SOPHiA DDM for up to 60,000 patients annually, and added marquee clients such as NYU Langone. In biopharma, it renewed and expanded agreements with AstraZeneca and closed a new global commercial deal with a top-five pharmaceutical company.

MSK-ACCESS and MSK-IMPACT Gain Traction

The MSK-ACCESS liquid biopsy product reached 70 signed customers across 29 countries, with about half already fully implemented. MSK-IMPACT and its Flex variant continued to gain adoption, with 21 customers signed and growing clinical interest in liquid biopsy solutions to complement existing testing.

Margins Improve Despite Higher Volumes

Adjusted gross margin expanded 140 basis points to 74.2% in 2025, up from 72.8% in 2024, even as data volumes rose materially. Management credited cloud and compute optimization along with lower scrap costs, demonstrating the scalability of the platform’s economics as usage rises.

Customer Satisfaction and Expansion Remain Strong

Sophia reported a net promoter score of 67 and customer satisfaction above 97%, alongside annualized revenue churn below 1%. Net dollar retention improved to 115% from 104% last year, showing that existing customers are expanding their spend meaningfully on the platform.

Capital Raises Bolster Liquidity

The company raised $15.5 million in net proceeds via an at-the-market program at an average price of $5.12 per share and expanded its credit facility with Perceptive Advisors by $25 million. Year-end cash and equivalents stood at $70.3 million, excluding an additional $14.4 million raised via the ATM in early 2026.

Technology Upgrades Enhance Platform Capacity

A new-generation SOPHiA DDM, already adopted by roughly one-third of customers, delivers about ten times more capacity per run and enables whole-genome analysis in under six hours. This step-change in throughput can double weekly data capacity without hurting margins, supporting wins with larger and more demanding clients.

Digital Twins and Partnerships Expand the Moat

Sophia launched SOPHiA DDM Digital Twins and began onboarding the first lung cancer users, expanding its capabilities into simulation and predictive insights. A new collaboration with MD Anderson to co-develop whole-transcriptome tests positions the company for multimodal AI-driven growth in oncology and precision medicine.

Persistent Operating Losses and EBITDA Deficit

Despite growth, profitability remains distant, with a 2025 operating loss of $70.9 million compared with $66.6 million a year earlier. Adjusted EBITDA loss widened slightly to $41.5 million for the year, and Q4 adjusted EBITDA loss was $9.9 million versus $9.1 million in the prior-year quarter.

Operating Expenses and FX Headwinds Weigh on Results

Total operating expenses rose to $123 million in 2025 from $110.5 million in 2024, partly due to a roughly 14% appreciation in the Swiss franc. The stronger currency inflated reported payroll and rent when translated into U.S. dollars, masking some underlying cost discipline in local terms.

Legal and One-Off Costs Add Noise

Patent litigation with Guardant Health generated legal expenses of about $1.8 million, while the ATM program added around $450,000 in costs in the fourth quarter. Although Sophia received a favorable provisional cost order in one venue, management stressed that legal proceedings still represent a material uncertainty.

Reported Gross Margins Face Near-Term Pressure

Q4 reported gross margin declined slightly to 67.7% from 68.2% a year earlier, while Q4 adjusted gross margin slipped 30 basis points to 73.9%. Management attributed the quarterly pressure to product mix and FX impacts, stressing that full-year adjusted gross margin still improved meaningfully.

Biopharma Revenues Remain Lumpy and Long-Cycle

The biopharma business showed a stronger pipeline and new deals, including expanded work with AstraZeneca, but revenue remains hard to predict. Management indicated that more visible and sustainable biopharma contribution is likely to materialize only from late 2026 into 2027, reflecting long sales and execution cycles.

Comparability Issues from Prior-Year Revenue Timing

Reported growth in certain regions and quarters was distorted by a large one-time vendor payment recognized in Q4 2024. This prior-year spike created tougher year-over-year comparisons that obscured some of the underlying momentum in the business in the latest period.

Cash Burn and Efficiency Efforts

Total cash burn in 2025 was $50.4 million, a 6% improvement year over year, while Q4 cash burn of $12.3 million improved 4% versus the prior year. The company is implementing cost and headcount optimizations to tighten spending and drive better operating leverage as revenues scale.

Seasonality and Back-Half Growth Risks

Management expects 2026 growth to be weighted toward the second half as large customer implementations, including the U.S. health systems, ramp into full usage. This increases near-term concentration risk, as any delays in onboarding or scaling these accounts could pressure reported growth in the first half.

Forward Guidance and Path Toward Profitability

For 2026, Sophia guided to $92 million–$94 million in revenue and an adjusted EBITDA loss of $29 million–$32 million, implying a sizeable improvement from 2025. The company aims to modestly expand adjusted gross margin via cloud efficiencies, hold operating expenses flat in local currency, and approach adjusted EBITDA breakeven by late 2026 with positive territory targeted for 2027.

Sophia Genetics’ earnings call framed a company scaling quickly with a differentiated genomic and AI platform, yet still operating firmly in investment mode. Investors will need to balance solid growth, rising customer quality and improving margins against ongoing losses, FX and legal headwinds, and execution risk around large, back-half-weighted implementations in 2026.