SOPHiA GENETICS quarterly revenue rises 25 percent

Revenue grows as adjusted results improve

SOPHiA GENETICS, which operates in Boston and Rolle, Switzerland, reported its results for the quarter ended September 30 on November 3. Revenue was $24.3 million, up 25 percent from a year earlier.

Reported gross margin was 65.7 percent, while adjusted gross margin was 72.8 percent. A year earlier, the figures were 66.3 percent and 73.1 percent, respectively. Net loss was $20.3 million, representing a 1 percent year-on-year increase.

Adjusted EBITDA loss narrowed to $6.1 million, a 31 percent year-on-year improvement. The company reiterated its target of achieving positive adjusted EBITDA in the second half of 2027. CEO Ross Muken said the quarter was supported by record analysis volumes, performance in the US market and accelerating growth in the BioPharma business.

Record analysis volumes and expanding customer base

A total of 118,000 analyses were performed on the SOPHiA DDM platform during the quarter, a 19 percent year-on-year increase. The number of the company's core genomics customers stood at 551 as of September 30, up from 488 a year earlier. During the quarter, the company added 30 new core genomics customers, which are expected to begin generating revenue over the following twelve months.

Net dollar retention rose to 118 percent, from 108 percent in the third quarter of 2025. Revenue increased 45 percent year on year in North America and 33 percent in the Asia-Pacific region. In the United States alone, the company reported 41 percent growth.

New customers include Australia's University of Newcastle, Thailand's King Chulalongkorn Memorial Hospital and Brazil's HBIOMOL diagnostics network. In the United States, PathGroup and the University of Arkansas for Medical Sciences joined the company. SOPHiA GENETICS also expanded its collaboration with the molecular diagnostics laboratory at the University of North Carolina Medical Center.

New applications and BioPharma agreements

The number of liquid biopsy analyses reached 4,200 during the quarter, more than double the figure from a year earlier. The company added several new customers for MSK-ACCESS, the SOPHiA DDM-powered version, including Germany's University Hospital Augsburg, India's Agilus Diagnostics and Austria's Hanusch Krankenhaus.

New customers also joined the MSK-IMPACT solid tumor application powered by SOPHiA DDM. They include Italy's AOU Pisana, Mexico's Géntodos and Germany's Ruhr University Bochum.

In its BioPharma business, the company entered into a new multimodal artificial intelligence collaboration with an unnamed leading pharmaceutical company. The project aims to develop a predictor that could help identify which bladder cancer patients are most likely to benefit from a targeted therapy.

The company signed a multiyear agreement with AstraZeneca to launch two companion diagnostic programs. One is a decentralized solid tumor companion diagnostic, while the other is a hematologic oncology test for patients with blood cancers. The company also signed an agreement with a US military medical center. The collaboration is worth more than $2 million annually and covers rare disease applications.

2026 outlook

SOPHiA GENETICS now expects full-year 2026 revenue to come in at the upper end of its previously issued guidance range of $94 million to $96 million. The company said favorable business performance was partly offset by foreign exchange effects observed at the end of the third quarter. If this continues, it could create a headwind for fourth-quarter revenue.

The company expects adjusted EBITDA loss to range between $29 million and $32 million, compared with $41.5 million in fiscal 2025. The company said new geographic markets, products and BioPharma relationships could provide further growth opportunities as new customers and programs gradually begin generating revenue.