SOPHiA GENETICS reports 25% revenue growth and holds sales range
Genomic analysis volume reached a record 118,000 as the company narrowed its adjusted EBITDA loss and targeted the upper end of annual guidance.
Adrian Kessler
Revenue grew 25 per cent to US$24.3 million as SOPHiA GENETICS SA NASDAQSOPH reported third-quarter results on Tuesday. Net loss widened 1 per cent to US$20.3 million despite stronger adoption of its genomic analysis platform.
The company now expects full-year revenue at the upper end of its existing US$94 million to US$96 million range for 2026. It forecast an adjusted EBITDA loss of US$29 million to US$32 million, while warning that sustained foreign-exchange movements could weigh on fourth-quarter revenue.
SOPHiA is a small Swiss-based precision-medicine software company serving healthcare institutions and drug developers with genomic analysis applications.
Shares closed at US$7.11 in New York on Nov. 2 at 4:00 p.m. EST NASDAQSOPH. That price predates Tuesday's results and does not measure the market's response to the announcement.
Higher Volume Narrows Adjusted Loss
For the quarter ended Sept. 30, SOPHiA reported a record 118,000 analyses, up 19 per cent from a year earlier. Its core genomics customer base reached 551, compared with 488 a year earlier.
Revenue from existing customers also expanded, with net dollar retention reaching 118 per cent from 108 per cent in the prior-year quarter. U.S. revenue grew 41 per cent, outpacing the company's overall growth.
SOPHiA signed 30 new core genomics customers during the quarter, which it expects to begin generating revenue over the following twelve months. Two new U.S. accounts are expected to ramp up in 2027, so the latest customer additions are partly a source of future sales.
Liquid-biopsy analysis volume reached 4,200 in the quarter, more than double the prior-year level. The company also signed a collaboration to develop an AI predictor intended to identify bladder-cancer patients most likely to benefit from a targeted therapy.
"We signed 30 new genomics customers in Q3 and closed three material BioPharma deals, including two companion diagnostic programs and a new, multimodal AI project announced today," SOPHiA chief executive Ross Muken said in the release.
The additional activity did not lift gross margins. Reported gross margin fell to 65.7 per cent from 66.3 per cent, while adjusted gross margin eased to 72.8 per cent from 73.1 per cent.
Adjusted EBITDA loss nevertheless narrowed 31 per cent to US$6.1 million for the quarter. SOPHiA reaffirmed its target of positive adjusted EBITDA in the second half of 2027; that measure excludes items including interest, depreciation and share-based compensation and does not establish cash-flow break-even.
Peers Show Different Routes To Profitability
Tempus AI, Inc. NASDAQTEM reported on Nov. 2 that third-quarter revenue grew 23 per cent to US$411.5 million. Its diagnostics and data businesses produced adjusted EBITDA of US$25.6 million, although it still recorded a net loss of US$14.9 million.
Read more: Tempus AI receives European IVDR certification for xR cancer profiling
The larger laboratory group Labcorp Holdings Inc. NYSELH reported on Oct. 28 that third-quarter revenue rose 6.9 per cent to US$3.81 billion. Its reported operating margin declined to 10.6 per cent even as adjusted operating margin increased to 15.0 per cent, another split between reported and adjusted performance.
Read more: Labcorp raises 2026 earnings outlook as quarterly revenue reaches US$3.81B
The iShares Biotechnology ETF NASDAQIBB closed at US$213.79 on Nov. 2 at 4:00 p.m. EST, providing a broader sector reference before SOPHiA's results.
SOPHiA's next scheduled event is its Nov. 3 earnings webcast at 8:00 a.m. EST. Management is due to discuss the quarter and the full-year outlook, including the growth and spending assumptions behind its profitability target.
