SOPHiA GENETICS (SOPH) AI Stock Analysis

• Market Cap: $279.10M
• Dividend Yield: N/A
• Average Volume (3M): 47.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 7.31%
• EPS Growth: -7.49%
• Country: US
• Employees: 423
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.33
• Shares Outstanding: 67,579,560
• 10 Day Avg. Volume: 55,627
• 30 Day Avg. Volume: 47,969
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: -3.06
• 1Y Price Target: $6.50
• Price Target Upside: 89.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: $4.00 ▲(16.62% Upside)

SOPHiA GENETICS' stock score is primarily influenced by its financial performance challenges, including negative profitability and cash flow issues. While technical analysis indicates positive momentum, the valuation remains unattractive due to ongoing losses. The earnings call provided positive insights, but it was not factored into the score calculation due to weight redistribution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for SOPHiA GENETICS' offerings, enhancing its market position and supporting long-term business expansion.

Strategic Partnership

The partnership with AstraZeneca represents a significant growth opportunity, leveraging AI for cancer treatment, potentially boosting future revenues and market influence.

Improved Gross Margin

An improved gross margin reflects efficient cost management, enhancing profitability potential and providing a buffer against future financial challenges.

Negative Factors

Profitability Challenges

Significant profitability challenges indicate ongoing financial instability, which may hinder investment in growth initiatives and long-term sustainability.

Cash Flow Issues

Cash flow challenges could limit the company's ability to fund operations and strategic projects, impacting its capacity to sustain growth and innovation.

Increased Operating Expenses

Rising operating expenses may pressure margins and profitability, necessitating cost control measures to maintain financial health and competitive positioning.

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 generates revenue through several key streams, primarily focusing on software-as-a-service (SaaS) solutions and genomic data analysis services. The company charges fees for access to its SOPHiA DDM™ platform, which includes subscription fees, pay-per-use models, and service contracts with hospitals, laboratories, and research institutions. Additionally, SOPHiA GENETICS collaborates with pharmaceutical companies in companion diagnostics, where they provide genomic analysis services to support drug development and clinical trials, often receiving funding or revenue-sharing agreements in return. Strategic partnerships with healthcare providers and research organizations further enhance its revenue potential by expanding its market reach and driving adoption of its platform in clinical settings.

SOPHiA GENETICS Financial Statement Overview

Summary

SOPHiA GENETICS shows revenue growth but faces significant profitability and cash flow challenges. The company's leverage is moderate, but negative return on equity and cash flow issues suggest financial instability.

Income Statement

SOPHiA GENETICS shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.74%. However, the company is facing significant profitability challenges, as evidenced by negative net profit margins (-98.51%) and EBIT margins (-84.59%). The gross profit margin remains relatively strong at 68.09%, indicating efficient cost management at the production level.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.35, which is manageable. However, the company is struggling with negative return on equity (-78.86%), indicating that it is not generating profits from its equity base. The equity ratio stands at 43.19%, suggesting a stable capital structure.

Cash Flow

The cash flow statement reveals challenges in cash generation, with negative operating cash flow and free cash flow. The free cash flow to net income ratio is positive at 1.16, indicating that the company is generating cash relative to its net losses. However, the negative free cash flow growth rate of -4.38% highlights ongoing cash flow issues.

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

• Technical Analysis Sentiment: Positive
• Last Price: 3.43
• 50DMA: Positive
• 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 3.43 is above the 20-day moving average (MA) of 3.42, above the 50-day MA of 3.39, and above the 200-day MA of 3.29, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 68.62 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
WGS	69 Neutral	3.37B	6,267.91	0.51%	―	48.70%	―
OPRX	68 Neutral	348.65M	-34.74	-17.19%	―	25.90%	46.13%
SOPH	51 Neutral	$279.10M	―	-74.09%	―	7.31%	-7.49%
TXG	50 Neutral	1.46B	-16.69	-10.94%	―	2.02%	65.33%
AMWL	50 Neutral	100.14M	-0.77	-68.29%	―	5.83%	61.94%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

SOPHiA GENETICS Corporate Events

SOPHiA GENETICS Reports Financial Results for Mid-2025

On August 5, 2025, SOPHiA GENETICS SA released its unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2025. The company reported an increase in revenue compared to the previous year, indicating growth in its operations. However, the financial statements also revealed significant costs in research and development, selling and marketing, and general administrative expenses, which impacted the overall profitability. This financial update provides stakeholders with insights into the company’s current financial health and operational challenges.