SOPHiA GENETICS (SOPH) AI Stock Analysis

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SOPHiA GENETICS

(NASDAQ:SOPH)

Rating:51Neutral

Price Target:

$3.50

▲(8.02% Upside)

SOPHiA GENETICS shows promising revenue growth and strategic partnerships, particularly with AstraZeneca, which are positive indicators. However, significant profitability and cash flow challenges, along with a negative P/E ratio, weigh heavily on the overall score. The technical analysis suggests a neutral trend, and the earnings call provides some optimism, but financial instability remains a concern.

Positive Factors

Customer Growth

Momentum appears to be building as volume grew with 33 new core genomics customers implemented.

US Market Expansion

US market expansion continues, where revenue and volumes grew over 30%, indicating strong market penetration.

Negative Factors

Headwinds

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 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

$230.45M

Dividend YieldN/A

Average Volume (3M)73.41K

Price to Earnings (P/E)―

Beta (1Y)1.09

Revenue Growth7.31%

EPS Growth-7.49%

CountryUS

Employees423

SectorHealthcare

Sector Strength51

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)-0.33

Shares Outstanding67,579,560

10 Day Avg. Volume39,166

30 Day Avg. Volume73,414

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.77

Enterprise Value/Revenue2.55

Enterprise Value/Gross Profit3.76

Enterprise Value/Ebitda-3.06

Forecast

1Y Price Target

$6.50

Price Target Upside100.62% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

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:Aug 05, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 11, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant revenue growth, new customer acquisitions, and a landmark partnership with AstraZeneca, reflecting positive business momentum. However, challenges remain with BioPharma headwinds, increased operating expenses, and regional performance issues in Latin America.

Q2-2025 Updates

Positive Updates

Revenue Growth and New Customer Acquisitions

Total revenue grew 16% year-over-year, with a 20% increase excluding BioPharma. The company signed a record 35 new customers in Q2, bringing the total to 63 new customers for the year.

Partnership with AstraZeneca

SOPHiA GENETICS signed the largest contract in its history with AstraZeneca, focusing on AI-powered predictive models and real-world evidence generation for breast cancer treatment.

U.S. Market Expansion

U.S. revenue, excluding BioPharma, grew more than 19% year-over-year. Notable new customers include UC Irvine and the University of Alabama, Birmingham.

Strong Performance in Asia Pacific

Asia Pacific region saw a 33% year-over-year revenue growth with significant contributions from markets like Australia and India.

Improved Gross Margin and Cash Burn

Adjusted gross margin improved to 74.4%, up 120 basis points year-over-year. Cash burn was reduced by 35% year-over-year, to $8.7 million.

Negative Updates

BioPharma Revenue Headwinds

Overall revenue growth was negatively impacted by BioPharma, which presented some modest headwinds, reducing total growth to 16%.

Increased Operating Expenses

Total operating expenses increased by 19% year-over-year to $30.8 million, driven by higher sales and marketing expenses and foreign exchange impacts.

Challenges in Latin America

Latin America continued to experience softness this quarter, impacting regional performance.

Company Guidance

During the SOPHiA GENETICS second-quarter 2025 earnings call, the company reported a 16% year-over-year revenue growth, with revenues reaching $18.3 million. Excluding the BioPharma sector, revenue saw a more substantial increase of over 20%. The company noted a significant milestone by signing 35 new customers to SOPHiA DDM in Q2, bringing the total to 63 new customers this year. In the U.S. market, revenue, excluding BioPharma, grew by more than 19%. The company also highlighted a major multiyear collaboration with AstraZeneca, touted as the largest contract in SOPHiA GENETICS' history, which is expected to drive future growth, particularly in 2026. The financial report also revealed a 35% year-over-year improvement in cash burn, which amounted to $8.7 million for the quarter, and an adjusted gross margin increase to 74.4%. The company reaffirmed its full-year revenue guidance of $72 million to $76 million, expecting continued robust growth in the clinical segment.

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

Neutral

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

Neutral

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

Negative

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

Negative

Last Price3.24

Price Trends

50DMA

3.37

Negative

100DMA

3.18

Positive

200DMA

3.28

Negative

Market Momentum

MACD

<0.01

Positive

RSI

45.25

Neutral

STOCH

27.87

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 3.24 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.37, and below the 200-day MA of 3.28, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 27.87 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
WGS	69 Neutral	$3.74B	7,087.70	0.60%	―	48.70%	―
OPRX	68 Neutral	$345.50M	―	-8.21%	―	25.90%	46.13%
TXG	56 Neutral	$1.69B	―	-11.30%	―	2.02%	65.33%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
SOPH	51 Neutral	$230.45M	―	-74.09%	―	7.31%	-7.49%
AMWL	50 Neutral	$108.54M	―	-38.52%	―	5.83%	61.94%
EUDA	―	$55.73M	―		―	―	―

* Healthcare Sector Average

Performance Comparison

SOPH

SOPHiA GENETICS

3.24

-0.45

-12.20%

OPRX

OptimizeRx

18.82

11.62

161.39%

TXG

10x Genomics

13.96

-7.86

-36.02%

AMWL

American Well

6.98

-0.95

-11.98%

WGS

GeneDx Holdings

132.54

98.81

292.94%

EUDA

EUDA Health Holdings

1.46

-1.76

-54.66%

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: Sep 06, 2025