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SOPHiA GENETICS (SOPH)
NASDAQ:SOPH
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SOPHiA GENETICS
(NASDAQ:SOPH)
Rating:51Neutral
Price Target:
$3.50
▲(6.71% Upside)
Positive Factors
Customer Growth
Momentum appears to be building as volume grew with 33 new core genomics customers implemented.
Market Expansion
US market expansion continues, where revenue and volumes grew over 30%, indicating strong market penetration.
Negative Factors
Financial Performance
Sophia turned in a relatively challenging 2024 as they drove 4% revenue growth while growing their volumes by 11%, which implies a 6-7% decline in revenue per analysis, which declined in part due to headwinds with biopharma customers.
Revenue 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.
SOPHiA GENETICS (SOPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$209.85M
Dividend YieldN/A
Average Volume (3M)74.23K
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth7.31%
EPS Growth-7.49%
CountryUS
Employees423
SectorHealthcare
Sector Strength43
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.33
Shares Outstanding66,831,070
10 Day Avg. Volume149,517
30 Day Avg. Volume74,235
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)2.10
Price to Sales (P/S)3.11
P/FCF Ratio-3.98
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit3.76
Enterprise Value/Ebitda-3.06
Forecast
1Y Price Target
$6.10Price Target Upside85.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
SOPHiA GENETICS Business Overview & Revenue Model
Company DescriptionSOPHiA GENETICS (SOPH) is a health technology company that leverages data-driven medicine to enhance and expedite the analysis of genomic and radiomic data. The company operates within the biotechnology and healthcare sectors, providing a cloud-based software platform that enables healthcare institutions to analyze complex medical data to deliver insights that can improve patient outcomes. SOPHiA GENETICS' core product, the SOPHiA DDM™ platform, is designed to facilitate the interpretation of genomic data, thereby supporting various applications in oncology, rare diseases, and other health conditions.
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:Aug 05, 2025
(Q2-2025)
| % Change Since: -0.61%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive outlook with significant revenue growth, a record number of new customer signings, and the landmark AstraZeneca partnership. However, challenges persist with BioPharma revenue headwinds and increased operating expenses.Q2-2025 Updates
Positive Updates
Revenue Growth
Total revenue grew 16% year-over-year. Excluding BioPharma, revenue grew over 20%, signaling a return to near historical growth levels.
New Customer Signings
A record 35 new customers were signed in Q2, bringing the total to 63 new customers in 2025. Implemented 18 new customers in Q2.
U.S. Market Expansion
U.S. revenue, excluding BioPharma, grew more than 19% year-over-year, with significant new customer signings including UC Irvine and the University of Alabama, Birmingham.
Global Adoption of MSK-ACCESS
Signed 11 new customers for MSK-ACCESS, bringing the total number to 50 customers globally.
Partnership with AstraZeneca
Signed the largest contract in SOPHiA GENETICS' history with AstraZeneca, focusing on AI-powered predictive models for breast cancer treatment.
Improved Cash Burn and Gross Margin
Cash burn decreased to $8.7 million, a 35% year-over-year improvement. Adjusted gross margin improved to 74.4%, up 120 basis points year-over-year.
Negative Updates
BioPharma Revenue Headwinds
BioPharma continued to present modest headwinds, impacting overall revenue growth.
Operating Loss and Expenses
Operating loss for the quarter was $18.5 million, and adjusted operating loss increased by 27% year-over-year. This was driven by higher sales and marketing expenses and foreign exchange impacts.
Latin America Revenue Softness
Continued to experience softness in Latin America despite recent bookings.
Company Guidance
During the SOPHiA GENETICS second quarter 2025 earnings call, the company reported a 16% year-over-year revenue growth, reaching $18.3 million, with a notable 20% increase in revenue excluding BioPharma, despite challenges in that sector. The company also highlighted a significant decrease in cash burn, down to $8.7 million—a 35% improvement from the prior year. SOPHiA signed 35 new customers in Q2, bringing the total to 63 new customers for the year, and implemented 18 new customers, up slightly from the prior year. The U.S. market saw a 19% revenue growth, excluding BioPharma, while the Asia Pacific region posted a 33% growth. The company achieved a 74.4% adjusted gross margin, up 120 basis points year-over-year, and announced a landmark contract with AstraZeneca, focusing on leveraging SOPHiA's AI to advance breast cancer treatment. SOPHiA also reported a strong pipeline, with the average contract value of new business up over 100% year-on-year, signaling continued momentum and growth prospects.SOPHiA GENETICS Financial Statement Overview
Summary
SOPH shows steady revenue growth and a solid equity ratio, but faces significant profitability challenges with deeply negative net profit margins and high debt levels. Despite some operational improvements, financial stability remains a concern.Income Statement
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.42
Neutral
Balance Sheet
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.55
Neutral
Cash Flow
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.47
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.69M | 65.17M | 62.37M | 47.56M | 40.45M | 28.40M |
| Gross Profit | 47.23M | 43.94M | 42.91M | 31.25M | 25.22M | 17.69M |
| EBITDA | -58.03M | -51.49M | -70.70M | -82.67M | -70.84M | -38.76M |
| Net Income | -73.39M | -62.49M | -78.98M | -87.45M | -73.67M | -39.34M |
Balance Sheet | ||||||
| Total Assets | 177.62M | 155.31M | 206.16M | 243.84M | 320.17M | 132.12M |
| Cash, Cash Equivalents and Short-Term Investments | 94.82M | 80.23M | 123.25M | 178.61M | 265.32M | 97.34M |
| Total Debt | 63.81M | 30.03M | 18.60M | 16.74M | 13.06M | 7.25M |
| Total Liabilities | 100.93M | 58.82M | 54.71M | 43.71M | 44.77M | 31.61M |
| Stockholders Equity | 76.69M | 96.49M | 151.44M | 200.13M | 275.40M | 100.51M |
Cash Flow | ||||||
| Free Cash Flow | -44.93M | -51.00M | -57.80M | -80.47M | -64.61M | -34.93M |
| Operating Cash Flow | -39.04M | -42.82M | -48.58M | -70.09M | -57.94M | -31.73M |
| Investing Cash Flow | -7.43M | -8.18M | 8.32M | 41.97M | -56.93M | -24.32M |
| Financing Cash Flow | 33.54M | 11.59M | -2.82M | -1.57M | 237.77M | 107.05M |
SOPHiA GENETICS Technical Analysis
Positive
3.28
Price Trends
3.24
Positive
3.13
Positive
3.30
Negative
Market Momentum
-0.05
Positive
50.45
Neutral
40.10
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 3.28 is below the 20-day moving average (MA) of 3.32, above the 50-day MA of 3.24, and below the 200-day MA of 3.30, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 40.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $326.56M | ― | -8.21% | ― | 25.90% | 46.13% | |
66 Neutral | $3.53B | 6,571.12 | 0.60% | ― | 48.70% | ― | |
65 Neutral | ¥341.81B | 11.08 | -0.17% | 2.40% | 9.51% | -9.51% | |
56 Neutral | $1.65B | ― | -11.30% | ― | 2.02% | 65.33% | |
51 Neutral | $209.85M | ― | -74.09% | ― | 7.31% | -7.49% | |
50 Neutral | $117.43M | ― | -38.52% | ― | 5.83% | 67.49% |
* Healthcare Sector Average
Performance Comparison
SOPH
SOPHiA GENETICS
3.28
0.02
0.61%
OPRX
OptimizeRx
17.59
9.25
110.91%
TXG
10x Genomics
13.24
-8.51
-39.13%
AMWL
American Well
7.27
-1.39
-16.05%
WGS
GeneDx Holdings
122.88
88.31
255.45%
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.