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Sophia Genetics Sa (SOPH)
:SOPH
US Market

SOPHiA GENETICS (SOPH) AI Stock Analysis

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SOPHiA GENETICS

(NASDAQ:SOPH)

Rating:54Neutral
Price Target:
$3.00
▼(-1.32%Downside)
SOPH's overall stock score is driven by its strong earnings call performance, which indicates strategic growth and cost management improvements. However, significant financial performance challenges and weak valuation metrics weigh heavily on the score. Technical analysis provides a neutral outlook, contributing to a moderate overall assessment.
Positive Factors
Business Model
Analyst maintains a positive view on SOPH shares due to the company's differentiated business model, large under-penetrated market, long-term upside drivers, and a solid balance sheet.
Customer Growth
The company signed 28 new customers and implemented 33 new customers, which is a positive leading indicator for growth.
Market Expansion
Management believes revenue re-acceleration will continue as key growth drivers take effect, including new customer additions and US market expansion.
Negative Factors
2024 Challenges
The company faced several headwinds in 2024 resulting in below long-term trend growth, notably from a lower biopharma revenue ramp and disruptions in LATAM.
Revenue Per Analysis
SOPH experienced a 6-7% decline in revenue per analysis, partly due to headwinds with biopharma customers.

SOPHiA GENETICS (SOPH) vs. SPDR S&P 500 ETF (SPY)

SOPHiA GENETICS Business Overview & Revenue Model

Company DescriptionSOPHiA 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 MoneySOPHiA GENETICS generates revenue primarily through subscription fees for its SOPHiA DDM™ platform, which is used by healthcare providers and institutions for the analysis of genomic data. The company offers its platform via a Software-as-a-Service (SaaS) model, where customers pay recurring fees to access the technology. Additionally, SOPHiA GENETICS collaborates with biotechnology and pharmaceutical companies, offering insights and analytics that can support drug development and clinical trials. These strategic partnerships also contribute to its revenue streams, along with potential income from providing data-driven insights and custom analytics solutions.

SOPHiA GENETICS Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -3.18%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
SOPHiA GENETICS demonstrated strong revenue growth and customer expansion, particularly in the U.S. market, alongside successful cost management and strategic partnerships. However, challenges in Latin America and the biopharma segment presented some headwinds.
Q1-2025 Updates
Positive Updates
Revenue Growth
Revenue grew 15% on a constant currency basis and 13% on a reported basis, reaching $17.8 million in Q1 2025 compared to $15.8 million in Q1 2024.
Increased Customer Base
SOPHiA GENETICS added 28 new customers in Q1 2025, increasing the total number of core genomic customers to 490.
U.S. Market Expansion
Revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year. Major expansions were announced at Henry Ford Hospital and Mayo Clinic.
Partnership Expansion with AstraZeneca
SOPHiA GENETICS expanded its partnership with AstraZeneca to deploy MSK-ACCES globally, extending the scope to 30 sponsored institutions.
Improved Gross Margin
Achieved a record 75.7% adjusted gross margin, up 520 basis points year-over-year.
Cost Management Success
Delivered a 24% year-over-year improvement to adjusted EBITDA loss, bringing it down to $9.8 million in Q1 2025.
Technology and Innovation
SOPHiA DDM analyzed over 2 million genomic patient profiles since inception, marking a significant milestone for the platform.
Negative Updates
Latin America Revenue Decline
Latin America experienced a slight decline in volume due to the acquisition of one of the top customers in the region by another lab.
Challenge with Biopharma
Biopharma presented some modest headwinds, with expectations of flat growth in 2025.
Revenue Churn
While 33 new customers were added, some smaller accounts that had not generated revenue over the past 12 months were churned out, maintaining a revenue churn rate of approximately 4%.
Company Guidance
During the SOPHiA GENETICS Q1 2025 earnings call, the company provided guidance that reflects promising growth and strategic advancements. Revenue increased by 15% on a constant currency basis and 13% on a reported basis, highlighting a return to near historical growth levels, with a specific focus on capitalizing on new customer signings and expanding in the U.S. market, where revenue from core genomic customers grew over 30% year-over-year. The company added 28 new customers in Q1 2025, contributing to an increase in platform analysis volume to approximately 93,000, representing an 11% year-over-year growth. SOPHiA GENETICS also achieved a record adjusted gross margin of 75.7%, up 520 basis points year-over-year, and delivered a 24% year-over-year improvement in adjusted EBITDA loss, which stood at $9.8 million for the quarter. The company reaffirmed its full-year revenue guidance for 2025 of $72 million to $76 million, representing 10% to 17% growth on a reported basis, and is optimistic about its path towards adjusted EBITDA breakeven by the end of 2026.

SOPHiA GENETICS Financial Statement Overview

Summary
SOPH's financial performance reveals steady revenue growth and a solid equity ratio, yet it struggles with significant profitability and cash flow challenges. Negative net profit margin and high leverage pose risks despite improvements in gross profit margin and slight enhancements in cash flow.
Income Statement
42
Neutral
The company's gross profit margin has shown improvement, rising from 64.2% in 2021 to 68.1% in TTM (Trailing-Twelve-Months). Although revenue has grown consistently, with a TTM growth rate of 3.1%, the net profit margin remains deeply negative at -98.5%, indicating significant profitability challenges. EBIT and EBITDA margins have also been persistently negative, reflecting operational inefficiencies.
Balance Sheet
55
Neutral
SOPH maintains a healthy equity ratio of 58.4% in TTM, demonstrating a solid capital structure. Despite this, the company faces high leverage with a debt-to-equity ratio of 0.35. Return on equity is highly negative at -77.3%, highlighting substantial losses relative to shareholder investments.
Cash Flow
47
Neutral
Free cash flow is negative but shows a slight improvement, with a TTM growth rate of 10.5%. The operating cash flow to net income ratio is 0.61, indicating that cash outflows are being managed better relative to net losses. However, the financial stability is still challenged by negative cash flows from operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue67.17M65.17M62.37M47.56M40.45M28.40M
Gross Profit45.74M43.94M42.91M31.25M25.22M17.69M
EBITDA-52.30M-51.49M-70.70M-82.67M-70.84M-38.76M
Net Income-66.17M-62.49M-78.98M-87.45M-73.67M-39.34M
Balance Sheet
Total Assets146.72M155.31M206.16M243.84M320.17M132.12M
Cash, Cash Equivalents and Short-Term Investments68.53M80.23M123.25M178.61M265.32M97.34M
Total Debt30.13M30.03M18.60M16.74M13.06M7.25M
Total Liabilities61.11M58.82M54.71M43.71M44.77M31.61M
Stockholders Equity85.61M96.49M151.44M200.13M275.40M100.51M
Cash Flow
Free Cash Flow-45.65M-51.00M-57.80M-80.47M-64.61M-34.93M
Operating Cash Flow-40.24M-42.82M-48.58M-70.09M-57.94M-31.73M
Investing Cash Flow-7.19M-8.18M8.32M41.97M-56.93M-24.32M
Financing Cash Flow11.38M11.59M-2.82M-1.57M237.77M107.05M

SOPHiA GENETICS Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.04
Price Trends
50DMA
3.02
Positive
100DMA
3.18
Negative
200DMA
3.34
Negative
Market Momentum
MACD
0.04
Negative
RSI
49.93
Neutral
STOCH
70.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOPH, the sentiment is Negative. The current price of 3.04 is above the 20-day moving average (MA) of 3.03, above the 50-day MA of 3.02, and below the 200-day MA of 3.34, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 70.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOPH.

SOPHiA GENETICS Risk Analysis

SOPHiA GENETICS disclosed 1 risk factors in its most recent earnings report. SOPHiA GENETICS reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SOPHiA GENETICS Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$242.66M-12.90%20.66%17.97%
WGWGS
65
Neutral
$2.56B38.75-16.61%48.81%72.54%
TXTXG
63
Neutral
$1.62B-22.03%-0.13%42.17%
54
Neutral
$203.17M-60.75%4.66%11.33%
52
Neutral
$135.80M-44.04%2.79%58.22%
51
Neutral
$7.50B0.32-61.87%2.27%17.10%1.59%
$130.79M
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOPH
SOPHiA GENETICS
2.99
-1.61
-35.00%
OPRX
OptimizeRx
13.43
3.46
34.70%
TXG
10x Genomics
13.01
-5.71
-30.50%
AMWL
American Well
8.51
2.28
36.60%
WGS
GeneDx Holdings
89.79
60.88
210.58%
EUDA
EUDA Health Holdings
3.38
-0.38
-10.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025