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SOPHiA GENETICS (SOPH)
NASDAQ:SOPH
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SOPHiA GENETICS
(NASDAQ:SOPH)
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Rating:51Neutral
Price Target:
$5.50
▲(22.22% Upside)
Action:ReiteratedDate:11/25/25
SOPHiA GENETICS' overall stock score is primarily influenced by its financial performance challenges, including profitability and cash flow issues. While technical analysis shows positive momentum, valuation concerns due to ongoing losses weigh heavily. The earnings call highlights strong growth and strategic initiatives, but these are not enough to offset the financial challenges.
Positive Factors
Network effects and platform scale
High and growing analysis volumes create durable network effects: more data improves benchmarking and models, increasing platform stickiness. Scale of usage supports recurring per-sample revenue, deepens competitive advantage, and raises switching costs for clinical and biopharma customers.
High and stable gross margins
Sustained ~73% gross margins indicate software-like unit economics and efficient cost structure for data processing. High margins allow incremental revenue to flow to operating leverage as sales scale, improving the path to durable profitability if growth and cost controls persist.
Consistent customer acquisition and U.S. expansion
Rapid customer additions and strong U.S. growth demonstrate commercial momentum and product-market fit in key healthcare markets. A growing installed base fosters recurring revenue, referenceability, and upsell opportunities that support sustainable top-line expansion over the medium term.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flows erode financial flexibility, forcing reliance on financing to fund R&D and go-to-market investments. Continued cash burn increases funding risk and can constrain strategic options, delaying self-sustaining profitability and longer-term stability.
Ongoing operating losses and multi-year EBITDA deficits
Material operating losses and guidance for continued adjusted EBITDA deficits indicate structural profitability challenges. Even with revenue growth, sustained negative operating performance pressures returns on capital and requires consistent execution on cost optimization to reach durable breakeven.
Legal and FX headwinds
Ongoing patent litigation and currency volatility are durable risk factors that can increase costs, constrain margins, and distract management. Legal outcomes can impose settlements or licensing limits, while FX swings can persistently impair reported results in global operations.
SOPHiA GENETICS (SOPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$313.45M
Dividend YieldN/A
Average Volume (3M)100.95K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth13.66%
EPS Growth-2.65%
CountryUS
Employees423
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.28
Shares Outstanding67,847,060
10 Day Avg. Volume137,858
30 Day Avg. Volume100,949
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)2.09
Price to Sales (P/S)3.10
P/FCF Ratio-3.96
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue4.03
Enterprise Value/Gross Profit5.97
Enterprise Value/Ebitda-5.10
Forecast
1Y Price Target
$7.00Price Target Upside55.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.9
Revenue Forecast (FY)$88.03M
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 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 Key Performance Indicators (KPIs)
SOPHiA GENETICS Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful commercial momentum: accelerating revenue growth, record new customer signings (124), strong implementation throughput (102), scalable platform improvements (1 PB processed, new DDM performance), improved adjusted gross margin (+140 bps to 74.2%), and strong retention/expansion metrics (NDR 115%, churn <1%). Management provided constructive 2026 guidance (20%–22% revenue growth) and a path toward improved adjusted EBITDA (guidance implying significant reduction in adjusted EBITDA loss). Offsetting these positives are persistent operating losses, higher reported operating expenses driven by FX movements (Swiss franc appreciation), litigation costs (~$1.8M), and the inherently long and lumpy nature of biopharma revenues and large customer implementations. Overall, the fundamentals and forward guidance show more strengths than weaknesses, but execution risks (implementation timing, FX, legal) remain and will be important to monitor.Q4-2025 Updates
Positive Updates
Revenue Re-acceleration and 2026 Guidance
Total revenue for FY2025 was $77.3M, up 19% year-over-year. Q4 revenue was $21.7M, up 22% year-over-year. Management guided FY2026 reported revenue to $92M–$94M (20%–22% growth).
Strong Platform Usage and Volume Growth
Platform analysis volume was >105,000 in Q4 (+16% YoY) and >391,000 for FY2025 (vs 352,000 in 2024, ~11% YoY). The platform processed nearly 1 petabyte of genomic data in 2025 — nearly double the amount processed two years prior.
Customer Wins and Expansion
Signed a record 124 new customers in 2025 and implemented a record 102 new customers (29 in Q4). Total customers reached 993 globally; genomic customers were 528 as of Dec 31, 2025. Average contract value for new customers in 2025 increased 120% YoY.
Large Strategic Deals and Enterprise Adoption
Won two of the largest integrated U.S. health systems (adopting SOPHiA DDM for up to 60,000 patients annually) and landed major customers like NYU Langone. Renewed/expanded biopharma agreements including AstraZeneca and a new top-5 global pharma global commercial agreement.
Product Traction — MSK-ACCESS and MSK-IMPACT
MSK-ACCESS signed 70 customers across 29 countries (about half have completed implementation). MSK-IMPACT (and Flex) adoption continues, with 21 customers signed to MSK-IMPACT and growing clinical interest in liquid biopsy offerings.
Improving Adjusted Gross Margin and Cost Efficiency
Full-year adjusted gross margin expanded 140 basis points to 74.2% in 2025 (from 72.8% in 2024) due to compute optimizations and reductions in scrap costs, despite materially higher data volumes.
Customer Satisfaction and Retention Metrics
Net promoter score of 67, customer satisfaction over 97%, and annualized revenue churn below 1%. Net dollar retention improved to 115% in 2025 (from 104% in 2024), indicating strong expansion within accounts.
Capital and Liquidity Actions
Raised $15.5M net proceeds via ATM (weighted average price $5.12/share) and expanded credit facility with Perceptive Advisors by $25M. Cash and cash equivalents were $70.3M at year-end (not including Q1 2026 ATM proceeds of $14.4M).
Technology and Platform Improvements
New-generation SOPHiA DDM (adopted by ~1/3 of customers) delivers ~10x greater capacity per run, enables whole genome analysis in <6 hours (vs >24 hours on other systems) and can double weekly data capacity without margin impact — enabling wins of larger customers.
Strategic Product Innovation — Digital Twins and Partnerships
Launched SOPHiA DDM Digital Twins (onboarding first lung cancer users) and announced a collaboration with MD Anderson to co-develop whole transcriptome tests, positioning the company for multimodal AI growth.
Negative Updates
Ongoing Operating Losses and Adjusted EBITDA Deficit
FY2025 operating loss was $70.9M (vs $66.6M in 2024). Adjusted EBITDA loss for 2025 was $41.5M (vs $40.2M in 2024). Q4 adjusted EBITDA loss was $9.9M (vs $9.1M in Q4 2024).
High Operating Expenses and FX Headwinds
Total operating expenses rose to $123.0M in 2025 from $110.5M in 2024. Appreciation of the Swiss franc (≈14% since start of 2025) increased reported payroll and rent expenses when translated to USD, adversely impacting OpEx.
Legal and One-Time Charges
Guardant Health patent litigation generated legal expenses of ~ $1.8M (recorded and disclosed); the company incurred ~$450k in ATM-related costs in Q4. Litigation remains an uncertainty despite a UPC provisional order awarding interim costs to SOPHiA.
Q4 and Full-Year Gross Margin Pressure in Reported Metrics
Q4 reported gross margin was 67.7% (vs 68.2% in Q4 2024); Q4 adjusted gross margin was 73.9%, down 30 basis points YoY, reflecting near-term mix and FX impacts despite full-year adjusted gross margin improvement.
Biopharma Revenue Uncertainty and Long Sales Cycles
Although biopharma pipeline and agreements improved (including AstraZeneca), management noted biopharma revenue is long-cycle and not yet at a point to quantify sustainable annual contribution; select inflection expected in late 2026+/2027.
Revenue Recognition Timing and Prior-Year Comparability
Reported regional and quarter growth comps were affected by a one-time large vendor payment booked in Q4 2024, creating tougher year-over-year comparables that masked some underlying growth in reported figures.
Cash Burn and Need for Continued Discipline
Total cash burn for 2025 was $50.4M (improved 6% YoY), and Q4 cash burn was $12.3M (improved 4% YoY), but the company remains loss-making and is executing cost and headcount optimization plans to reach improved operating leverage.
Seasonality and Back-Half Weighted Growth Risk
2026 guidance assumes growth is back-half weighted as large customer implementations ramp; near-term revenue concentration risk exists if implementations or ramp timelines slip, especially for the two large U.S. health systems.
Company Guidance
SOPHiA GENETICS guided 2026 reported revenue of $92–94 million (20%–22% growth) and expects an adjusted EBITDA loss of $29–32 million (improving from a $41.5M adjusted‑EBITDA loss in 2025), driven by modest expansion in adjusted gross margin (2025 adjusted gross margin 74.2%) from cloud‑compute optimizations and a back‑half‑weighted ramp as large U.S. wins and MSK‑ACCESS/MSK‑IMPACT/Enhanced Exomes scale; management plans to hold OpEx in local currency while cutting discretionary spend and some headcount, expects ~60% of every incremental revenue dollar to drop to the bottom line, aims to approach adjusted‑EBITDA breakeven by end‑2026 and turn positive in H2‑2027, and finished 2025 with $70.3M cash plus roughly $14.4M of Q1 2026 ATM proceeds.SOPHiA GENETICS Financial Statement Overview
Summary
SOPHiA GENETICS shows revenue growth and stable gross margins but faces significant profitability and cash flow challenges. The balance sheet shows manageable leverage, yet negative returns on equity. The company must address operational inefficiencies and enhance cash flow generation to improve its financial standing.Income Statement
SOPHiA GENETICS shows a consistent revenue growth trend, with a 5.18% increase in TTM. However, the company struggles with profitability, evidenced by negative net profit margins and EBIT margins. The gross profit margin remains relatively stable, indicating efficient cost management, but the persistent negative net income and EBIT suggest ongoing operational challenges.35
Negative
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.83 in TTM, indicating manageable leverage. However, the return on equity is negative, highlighting profitability issues. The equity ratio suggests a stable capital structure, but the company needs to improve its returns to enhance financial health.40
Negative
Cash Flow
The cash flow statement reveals negative operating and free cash flows, with a decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite a positive free cash flow to net income ratio, the overall cash flow situation requires improvement to support sustainable operations.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 73.30M | 65.17M | 62.37M | 47.56M | 40.45M | 28.40M |
| Gross Profit | 49.49M | 43.94M | 42.91M | 31.25M | 25.22M | 17.69M |
| EBITDA | -57.84M | -50.76M | -69.57M | -81.38M | -69.24M | -37.99M |
| Net Income | -74.98M | -62.49M | -78.98M | -87.45M | -73.67M | -39.34M |
Balance Sheet | ||||||
| Total Assets | 163.46M | 155.31M | 206.16M | 243.84M | 320.17M | 132.12M |
| Cash, Cash Equivalents and Short-Term Investments | 81.61M | 80.23M | 123.25M | 178.61M | 265.32M | 97.34M |
| Total Debt | 63.37M | 30.03M | 18.60M | 16.74M | 13.06M | 7.25M |
| Total Liabilities | 102.77M | 58.82M | 54.71M | 43.71M | 44.77M | 31.61M |
| Stockholders Equity | 60.69M | 96.49M | 151.44M | 200.13M | 275.40M | 100.51M |
Cash Flow | ||||||
| Free Cash Flow | -43.87M | -51.00M | -57.80M | -80.47M | -64.61M | -34.93M |
| Operating Cash Flow | -38.36M | -42.82M | -48.58M | -70.09M | -57.94M | -31.73M |
| Investing Cash Flow | -7.11M | -8.18M | 8.32M | 41.97M | -56.93M | -24.32M |
| Financing Cash Flow | 29.99M | 11.59M | -2.82M | -1.57M | 237.77M | 107.05M |
SOPHiA GENETICS Technical Analysis
Neutral
4.50
Price Trends
4.91
Negative
4.71
Negative
4.02
Positive
Market Momentum
-0.12
Positive
42.50
Neutral
18.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOPH, the sentiment is Neutral. The current price of 4.5 is below the 20-day moving average (MA) of 4.76, below the 50-day MA of 4.91, and above the 200-day MA of 4.02, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 18.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $2.17B | -100.00 | -7.60% | ― | 50.50% | ― | |
56 Neutral | $747.01M | -27.74 | ― | ― | 50.51% | 50.92% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $313.45M | -4.14 | -86.09% | ― | 13.66% | -2.65% | |
50 Neutral | $896.97M | -8.61 | -26.29% | ― | 32.90% | 1.85% | |
47 Neutral | $162.81M | -0.91 | -47.69% | ― | -5.30% | 46.01% | |
43 Neutral | $6.99M | -9.48 | -8.96% | ― | -24.64% | 92.19% |
* Healthcare Sector Average
SOPH
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29.41%
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SOPHiA GENETICS Corporate Events
SOPHiA GENETICS Announces CEO Transition and Strong Preliminary 2025 Results
Jan 12, 2026
On January 12, 2026, SOPHiA GENETICS announced a planned leadership transition, promoting President Ross Muken to Chief Executive Officer effective July 1, 2026, succeeding co-founder and current CEO Dr. Jurgi Camblong, who is expected to move into the role of Executive Chairman of the Board following the company’s June 2026 annual general meeting. The company also released preliminary, unaudited financial figures for the fourth quarter and full year ended December 31, 2025, indicating at least $21 million in quarterly revenue, up about 20% year over year, and approximately $77 million in annual revenue, up about 18%, alongside record activity on its SOPHiA DDM platform with more than 391,000 analyses performed in 2025; these estimates underscore continued growth in usage and revenue but remain subject to adjustment as year-end closing and audit procedures are completed.
The most recent analyst rating on (SOPH) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on SOPHiA GENETICS stock, see the SOPH Stock Forecast page.
SOPHiA GENETICS Posts Strong 2025 Preliminary Results and Sets CEO Transition for 2026
Jan 12, 2026
On January 12, 2026, SOPHiA GENETICS reported strong preliminary, unaudited results for 2025, with full-year revenue of about $77 million, up roughly 18% year-on-year, and more than 391,000 analyses performed on its SOPHiA DDM™ platform, including over 105,000 analyses and at least $21 million in revenue in the fourth quarter alone. The company signaled continued momentum by issuing 2026 revenue guidance of $92–94 million, implying 20–22% growth, alongside an expected adjusted EBITDA loss of $29–32 million, and outlined a significant leadership transition: President Ross Muken, a key architect of its commercial transformation since joining as CFO in 2021, will become CEO on July 1, 2026, while co-founder and current CEO Jurgi Camblong will move to the role of Executive Chairman, with long-time executive Kevin Puylaert stepping up as Chief Sales Officer in January 2026, underscoring a planned succession aimed at sustaining growth and strengthening the company’s position in AI-powered precision medicine.
The most recent analyst rating on (SOPH) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on SOPHiA GENETICS stock, see the SOPH Stock Forecast page.
SOPHiA GENETICS Reports Financial Results for Q3 2025
Nov 4, 2025
On November 4, 2025, SOPHiA GENETICS SA released its unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025. The company reported a revenue increase compared to the previous year, but it also experienced a significant loss for the period. This financial update reflects the company’s ongoing investment in research and development, as well as selling and marketing efforts, which are crucial for its growth and competitive positioning in the biotechnology sector.
The most recent analyst rating on (SOPH) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on SOPHiA GENETICS stock, see the SOPH Stock Forecast page.
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.