SOPHiA GENETICS SA: Positive Earnings Call Highlights

Sophia Genetics Sa ((SOPH)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for SOPHiA GENETICS SA painted a predominantly positive picture, with the company showcasing significant revenue growth and a record number of new customer signings. The landmark partnership with AstraZeneca was a highlight, although challenges such as BioPharma revenue headwinds and increased operating expenses were acknowledged.

Revenue Growth

SOPHiA GENETICS reported a 16% year-over-year increase in total revenue. Excluding the BioPharma sector, the revenue growth exceeded 20%, indicating a return to near historical growth levels. This demonstrates the company’s robust performance outside of the BioPharma challenges.

New Customer Signings

The company achieved a record by signing 35 new customers in the second quarter, bringing the total to 63 new customers in 2025. Additionally, 18 new customers were implemented during this period, showcasing SOPHiA’s expanding customer base.

U.S. Market Expansion

In the U.S. market, excluding BioPharma, SOPHiA GENETICS experienced a revenue growth of over 19% year-over-year. Significant new customer signings included prestigious institutions like UC Irvine and the University of Alabama, Birmingham.

Global Adoption of MSK-ACCESS

The global reach of MSK-ACCESS was evident with 11 new customer signings, bringing the total to 50 customers worldwide. This highlights the growing acceptance and adoption of SOPHiA’s solutions globally.

Partnership with AstraZeneca

SOPHiA GENETICS signed its largest contract to date with AstraZeneca, focusing on AI-powered predictive models for breast cancer treatment. This partnership marks a significant milestone in the company’s history.

Improved Cash Burn and Gross Margin

The company reported a decrease in cash burn to $8.7 million, a 35% improvement year-over-year. Additionally, the adjusted gross margin improved to 74.4%, up 120 basis points from the previous year.

BioPharma Revenue Headwinds

Despite the overall positive outlook, BioPharma continued to present modest headwinds, impacting the overall revenue growth. This remains a challenge for SOPHiA GENETICS.

Operating Loss and Expenses

The operating loss for the quarter was $18.5 million, with an adjusted operating loss increasing by 27% year-over-year. This increase was driven by higher sales and marketing expenses and foreign exchange impacts.

Latin America Revenue Softness

The company continued to experience revenue softness in Latin America, despite recent bookings. This indicates ongoing challenges in this region.

Forward-Looking Guidance

Looking ahead, SOPHiA GENETICS anticipates continued momentum with a strong pipeline, as evidenced by the average contract value of new business increasing over 100% year-on-year. The company remains optimistic about its growth prospects, particularly with the landmark AstraZeneca contract and expanding customer base.

In conclusion, the earnings call for SOPHiA GENETICS SA reflected a positive sentiment with significant achievements in revenue growth and new partnerships. While challenges such as BioPharma revenue headwinds and increased expenses persist, the company’s strategic initiatives and forward-looking guidance suggest a promising future.