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SOPHiA GENETICS (SOPH)
NASDAQ:SOPH
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SOPHiA GENETICS
(NASDAQ:SOPH)
Rating:55Neutral
Price Target:
$3.00
▲(4.53%Upside)
Positive Factors
Customer Growth
The company signed 28 new customers in the first quarter and implemented 33 new customers, which is a positive leading indicator for growth.
Future Growth
SOPH guided for a return to double-digit revenue growth in 2025 as the company is confident in its ability to turn on customers new to SOPH's DDM platform, particularly for the newer MSK-Access liquid biopsy application.
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
Biopharma Revenue
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.
Customer Churn
SOPH added 35 new genomics customers to Sophia DDM in Q4, which was solid, partially offset by a ~4% smaller customer churn.
Revenue Challenges
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.
SOPHiA GENETICS (SOPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$193.81M
Dividend YieldN/A
Average Volume (3M)45.88K
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth4.66%
EPS Growth11.33%
CountryUS
Employees423
SectorHealthcare
Sector Strength58
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.26
Shares Outstanding66,831,070
10 Day Avg. Volume93,952
30 Day Avg. Volume45,883
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)48.09
Price to Sales (P/S)0.00
P/FCF Ratio-30.83
Enterprise Value/Market Cap-0.06
Enterprise Value/Revenue-0.05
Enterprise Value/Gross Profit-0.27
Enterprise Value/Ebitda0.05
Forecast
1Y Price Target
$5.75Price Target Upside100.35% Upside
Rating ConsensusStrong 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:May 06, 2025
(Q1-2025)
| % Change Since: -8.60%|
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
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 | ||||
| 67.17M | 65.17M | 62.37M | 47.56M | 40.45M | 28.40M | Gross Profit |
| 45.74M | 43.94M | 42.91M | 31.25M | 25.22M | 17.69M | EBIT |
| -63.91M | -66.57M | -74.83M | -87.82M | -71.49M | -37.16M | EBITDA |
| -52.30M | -51.49M | -70.70M | -82.67M | -70.84M | -38.76M | Net Income Common Stockholders |
| -66.17M | -62.49M | -78.98M | -87.45M | -73.67M | -39.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 68.53M | 80.23M | 123.25M | 178.61M | 265.32M | 97.34M | Total Assets |
| 146.72M | 155.31M | 206.16M | 243.84M | 320.17M | 132.12M | Total Debt |
| 30.13M | 30.03M | 18.60M | 16.74M | 13.06M | 7.25M | Net Debt |
| -38.40M | -50.20M | -104.65M | -144.56M | -179.90M | -67.38M | Total Liabilities |
| 61.11M | 58.82M | 54.71M | 43.71M | 44.77M | 31.61M | Stockholders Equity |
| 85.61M | 96.49M | 151.44M | 200.13M | 275.40M | 100.51M |
| 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 | -8.18M | 8.32M | 41.97M | -56.93M | -24.32M | Financing Cash Flow |
| 11.38M | 11.59M | -2.82M | -1.57M | 237.77M | 107.05M |
SOPHiA GENETICS Technical Analysis
Negative
2.87
Price Trends
2.96
Negative
3.27
Negative
3.38
Negative
Market Momentum
-0.02
Positive
45.07
Neutral
25.59
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 2.87 is below the 20-day moving average (MA) of 2.94, below the 50-day MA of 2.96, and below the 200-day MA of 3.38, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 25.59 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 85 risk factors in its most recent earnings report. SOPHiA GENETICS reported the most risks in the "Finance & Corporate" 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $281.13M | ― | -12.90% | ― | 20.66% | 17.97% | |
61 Neutral | $1.35B | ― | -22.03% | ― | -0.13% | 42.17% | |
60 Neutral | $1.89B | 38.75 | -16.61% | ― | 48.81% | 72.54% | |
55 Neutral | $193.81M | ― | -60.75% | ― | 4.66% | 11.33% | |
54 Neutral | $5.41B | 3.27 | -45.10% | 3.29% | 16.81% | 0.02% | |
50 Neutral | $113.51M | ― | -44.04% | ― | 2.79% | 58.22% |
* Healthcare Sector Average
Performance Comparison
SOPH
SOPHiA GENETICS
2.87
-2.08
-42.02%
OPRX
OptimizeRx
14.27
3.33
30.44%
TXG
10x Genomics
10.42
-9.56
-47.85%
AMWL
American Well
6.78
-1.09
-13.85%
WGS
GeneDx Holdings
64.57
36.83
132.77%
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.