SOPHiA GENETICS (SOPH) AI Stock Analysis

• Market Cap: $355.48M
• Dividend Yield: N/A
• Average Volume (3M): 100.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 13.66%
• EPS Growth: -2.65%
• Country: US
• Employees: 423
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.28
• Shares Outstanding: 71,668,700
• 10 Day Avg. Volume: 137,858
• 30 Day Avg. Volume: 100,949
• PEG Ratio: -0.17
• Price to Book (P/B): 6.69
• Price to Sales (P/S): 4.08
• P/FCF Ratio: -8.17
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.45
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: -5.25
• 1Y Price Target: $7.00
• Price Target Upside: 41.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.9
• Revenue Forecast (FY): $88.65M

• Rating: 48 Neutral
• Price Target: $5.00 ▲(0.81% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by persistent large losses, ongoing cash burn, and a weaker 2025 balance sheet with higher leverage. Offsetting these are constructive earnings-call signals—20%–22% revenue growth guidance, improving adjusted EBITDA trajectory, and strong customer/retention metrics—while technical indicators remain broadly weak despite near-oversold readings.

Positive Factors

Platform scale & volume growth

Sustained growth in analysis volume demonstrates a growing, habitual usage base and strengthens network effects: more data enhances benchmarking and AI models, driving defensibility and recurring per-sample revenue over the medium term as labs and hospitals standardize on the platform.

Customer wins and retention

Broad new-account acquisition, higher average contract values, and documented high retention (NDR expansion) indicate durable commercial momentum: enterprise and clinical adoption creates predictable recurring usage, larger account upsell potential, and a more stable revenue base over 2–6 months.

Technology & product leadership

Material platform performance gains, faster whole-genome throughput, and new multimodal products (Digital Twins) plus a research tie-up with MD Anderson create structural advantages: they lower per-sample cost, enable large-system deployments, and expand addressable use cases over time.

Negative Factors

Rising leverage and weaker equity

Material increase in leverage and a sharply reduced equity cushion weaken financial flexibility. Higher debt relative to equity increases refinancing and covenant risk, limiting the firm's ability to absorb setbacks or fund lumpy customer implementations without additional external financing.

Persistent cash burn

Ongoing negative operating and free cash flows indicate the business still consumes material cash to fund growth. Even with improvement versus prior year, continued burn pressures liquidity and implies reliance on financing or dilution unless adjusted EBITDA narrows as guided.

Long, lumpy sales and implementation risk

Revenue concentration from large system rollouts and long biopharma cycles creates execution risk: delays in implementations or slower-than-expected ramping can push revenue and margin improvement out, making near-term guidance and cash-flow trajectories vulnerable to timing.

SOPHiA GENETICS Business Overview & Revenue Model

Company Description

SOPHiA GENETICS SA operates as a healthcare technology company. The company offers SOPHiA DDM platform, a cloud-based software-as-a-service platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, products, and services are used by hospital, laboratory, and biopharma worldwide. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Saint-Sulpice, Switzerland.

How the Company Makes Money

SOPHiA GENETICS primarily makes money by selling access to its SOPHiA DDM cloud software platform and related analytics applications to healthcare providers (e.g., clinical labs and hospitals) and life sciences customers (e.g., biopharma). Revenue is generally generated through (1) software and platform usage arrangements—commonly structured as subscription and/or usage-based fees tied to the volume of analyses performed on the platform (e.g., per-sample/per-case analysis), and (2) services and other revenue associated with implementation, support, and potentially professional services linked to deploying and operating the platform for customers. The company’s model benefits from network effects as more institutions contribute and analyze data on the platform, improving benchmarking and decision-support outputs, which can help drive recurring usage. Significant factors that can contribute to earnings include partnerships and integrations across the NGS ecosystem (e.g., relationships with sequencing and diagnostic workflow participants) that help distribution and adoption of SOPHiA’s analytics in clinical and research settings; specific partner names or commercial terms: null.

SOPHiA GENETICS Financial Statement Overview

Summary

Strong top-line growth and solid gross margins, but the financial profile is dominated by very large operating losses and ongoing negative free cash flow. Balance-sheet flexibility weakened in 2025 as debt rose and equity declined sharply.

Income Statement

Revenue has grown over time (from $28.4M in 2020 to $77.3M in 2025), and gross margin remains solid (~62% in 2025). However, profitability is a major weakness: 2025 operating results remain deeply negative (EBIT about -$70.9M; net loss about -$79.0M) with net margin around -102%, showing the cost structure is still far ahead of the current revenue base. The 2025 revenue growth rate also re-accelerated versus 2024, but losses did not meaningfully narrow.

Balance Sheet

Leverage has risen materially: total debt increased to ~$63.0M in 2025 from ~$30.0M in 2024, and debt relative to equity moved to ~1.34x (from ~0.31x). Equity also declined sharply (to ~$47.1M in 2025 from ~$96.5M in 2024), reflecting ongoing losses and reducing balance-sheet cushion. Total assets were relatively stable (~$163.5M in 2025), but negative returns on equity remain a key concern.

Cash Flow

Cash generation remains weak with continued cash burn: 2025 operating cash flow was about -$38.0M and free cash flow about -$38.6M. There is some year-over-year improvement versus 2024 (free cash flow was about -$51.0M in 2024), but 2025 free cash flow declined versus 2024 on a growth-rate basis, suggesting volatility in the burn profile. Free cash flow roughly tracks the net loss (about 1.02x of net loss in 2025), indicating losses are not purely non-cash and still pressure liquidity over time.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	77.27M	65.17M	62.37M	47.56M	40.45M
Gross Profit	47.81M	43.94M	42.91M	31.25M	25.22M
EBITDA	-61.40M	-50.76M	-69.57M	-81.38M	-69.24M
Net Income	-79.00M	-62.49M	-78.98M	-87.45M	-73.67M
Balance Sheet
Total Assets	163.46M	155.31M	206.16M	243.84M	320.17M
Cash, Cash Equivalents and Short-Term Investments	70.29M	80.23M	123.25M	178.61M	265.32M
Total Debt	63.02M	30.03M	18.60M	16.74M	13.06M
Total Liabilities	116.31M	58.82M	54.71M	43.71M	44.77M
Stockholders Equity	47.15M	96.49M	151.44M	200.13M	275.40M
Cash Flow
Free Cash Flow	-38.59M	-51.00M	-57.80M	-80.47M	-64.61M
Operating Cash Flow	-38.01M	-42.82M	-48.58M	-70.09M	-57.94M
Investing Cash Flow	-10.51M	-8.18M	8.32M	41.97M	-56.93M
Financing Cash Flow	34.13M	11.59M	-2.82M	-1.57M	237.77M

SOPHiA GENETICS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOPH, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.58, above the 50-day MA of 4.88, and above the 200-day MA of 4.13, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 79.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOPH.

SOPHiA GENETICS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMDA	67 Neutral	$796.08M	-72.16	-7.10%	―	50.51%	50.92%
WGS	62 Neutral	$2.05B	-166.38	-7.41%	―	50.50%	―
SDGR	52 Neutral	$887.38M	10.10	-29.47%	―	32.90%	1.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SOPH	48 Neutral	$355.48M	-3.99	-116.98%	―	13.66%	-2.65%
DH	48 Neutral	$161.38M	-2.20	-47.69%	―	-5.30%	46.01%
ZCMD	43 Neutral	$5.92M	-8.07	-8.26%	―	-24.64%	92.19%

SOPHiA GENETICS Corporate Events

SOPHiA GENETICS Posts Strong 2025 Growth and Reaffirms 2026 Outlook

On March 3, 2026, SOPHiA GENETICS reported that fourth-quarter 2025 revenue rose 22% year over year to $21.7 million, while full-year 2025 revenue grew 19% to $77.3 million, with adjusted gross margin improving to 74.2% despite higher data volumes. The company’s IFRS net loss widened to $79.0 million for 2025 and adjusted EBITDA loss to $41.5 million, but management highlighted growing platform scale, record 391,000+ analyses, 528 core genomics customers, and stronger U.S. and liquid biopsy traction as key drivers toward improved operating leverage.

The company signed a record 124 new core genomics customers in 2025, secured two large U.S. integrated health systems expected to add about 60,000 analyses annually starting in the second half of 2026, and expanded collaborations with major cancer centers and biopharma partners. Supported by a higher-margin, cloud-native model, new credit capacity and ATM proceeds, SOPHiA GENETICS reaffirmed its 2026 outlook for 20–22% revenue growth to $92–94 million and a reduced adjusted EBITDA loss of $29–32 million, signaling a path toward breakeven by end-2026 and positive adjusted EBITDA in the second half of 2027.

The most recent analyst rating on (SOPH) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on SOPHiA GENETICS stock, see the SOPH Stock Forecast page.

SOPHiA GENETICS Expands Perceptive Credit Facility With New $25 Million Term Loan Capacity and Additional Warrants

On January 23, 2026, SOPHiA GENETICS SA amended its existing credit agreement with Perceptive Credit Holdings IV, LP, securing an additional $25 million in term loan commitments split into two $12.5 million tranches: a Tranche C loan that can be drawn under customary conditions and a Tranche D loan that becomes available once trailing 12‑month revenue exceeds $85 million, with both tranches carrying Term SOFR plus 6.25% interest and maturing in 2029. In connection with the amendment, the company also amended and restated a warrant certificate to grant Perceptive the immediate right to purchase 75,000 additional ordinary shares, plus further rights to acquire 100,000 shares upon any draw of the Tranche C loan and another 100,000 shares upon any draw of the Tranche D loan, reinforcing the existing lien structure under its Swiss security documents; the move provides SOPHiA GENETICS with contingent growth capital while introducing potential future equity dilution for shareholders as the warrants become exercisable over a 10‑year period.

The most recent analyst rating on (SOPH) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on SOPHiA GENETICS stock, see the SOPH Stock Forecast page.

SOPHiA GENETICS Announces CEO Transition and Strong Preliminary 2025 Results

On January 12, 2026, SOPHiA GENETICS announced a planned leadership transition, promoting President Ross Muken to Chief Executive Officer effective July 1, 2026, succeeding co-founder and current CEO Dr. Jurgi Camblong, who is expected to move into the role of Executive Chairman of the Board following the company’s June 2026 annual general meeting. The company also released preliminary, unaudited financial figures for the fourth quarter and full year ended December 31, 2025, indicating at least $21 million in quarterly revenue, up about 20% year over year, and approximately $77 million in annual revenue, up about 18%, alongside record activity on its SOPHiA DDM platform with more than 391,000 analyses performed in 2025; these estimates underscore continued growth in usage and revenue but remain subject to adjustment as year-end closing and audit procedures are completed.

The most recent analyst rating on (SOPH) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on SOPHiA GENETICS stock, see the SOPH Stock Forecast page.

SOPHiA GENETICS Posts Strong 2025 Preliminary Results and Sets CEO Transition for 2026

On January 12, 2026, SOPHiA GENETICS reported strong preliminary, unaudited results for 2025, with full-year revenue of about $77 million, up roughly 18% year-on-year, and more than 391,000 analyses performed on its SOPHiA DDM™ platform, including over 105,000 analyses and at least $21 million in revenue in the fourth quarter alone. The company signaled continued momentum by issuing 2026 revenue guidance of $92–94 million, implying 20–22% growth, alongside an expected adjusted EBITDA loss of $29–32 million, and outlined a significant leadership transition: President Ross Muken, a key architect of its commercial transformation since joining as CFO in 2021, will become CEO on July 1, 2026, while co-founder and current CEO Jurgi Camblong will move to the role of Executive Chairman, with long-time executive Kevin Puylaert stepping up as Chief Sales Officer in January 2026, underscoring a planned succession aimed at sustaining growth and strengthening the company’s position in AI-powered precision medicine.

The most recent analyst rating on (SOPH) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on SOPHiA GENETICS stock, see the SOPH Stock Forecast page.