SOPHiA GENETICS Reports Third Quarter 2025 Performance
BOSTON and ROLLE, Switzerland—SOPHiA GENETICS (NASDAQ: SOPH), a prominent player in AI-driven precision medicine, has disclosed its financial results for the third quarter ended September 30, 2025. The results indicate a remarkable journey filled with growth and the prospect of future success.
Financial Summary for Q3 2025
The third quarter of 2025 proved to be a pivotal period, seeing significant year-over-year growth:
- Revenue reached $19.5 million, showcasing a 23% increase year-over-year.
- Gross margin stood at 66.3% on a reported basis and an adjusted gross margin of 73.1%, slightly declining from 67.2% reported in the previous year.
- Net IFRS loss expanded to $20.0 million, a 9% increase from last year, while Adjusted EBITDA loss was documented at $10.2 million, reflecting an 8% year-over-year increase.
Expectations for 2025
The outlook for the entirety of 2025 has brightened, as the company anticipates full-year revenue in the range of $75 to $77 million, translating to a year-over-year growth of 15% to 18%. This expectation is an adjustment from a prior estimate of $72 to $76 million.
Adjusted EBITDA loss is estimated to be between $39 and $41 million, affected by pressures from Swiss social charges and fluctuations in currency rates affecting operational costs.
CEO Jurgi Camblong emphasized, "Q3 has been a remarkable quarter for SOPHiA GENETICS. Our revenue growth is accelerating for the third consecutive quarter, fueled by new business development and improved operating leverage. The scalability of our platform has allowed us to achieve a notable improvement in adjusted EBITDA loss when excluding the impact of Swiss social charges."
Business Highlights from Q3 2025
Expanding Operations and Customer Base
- Conducted an impressive 99,000 analyses on the SOPHiA DDM™ platform, which signifies a 9% increase in volume compared to the previous year.
- Increased core genomics customers to 488 by September 30, 2025, up from 462 at the same time last year.
- Expansion in the Asia-Pacific (APAC) and North America (NORAM) regions saw robust year-over-year analysis volume growth of 35% and 26%, respectively.
- Initiated additional application areas at leading institutions, fostering growth in various segments.
Acquisition of New Clients
- The company secured contracts with 31 new customers in Q3 2025, marking an increase from 22 in the third quarter of 2024. Each signing is projected to yield revenue within the next year.
- There was also a notable rise in the average contract values for these new agreements, increasing by 180% year-over-year.
Strengthening Presence in the U.S. Market
- SOPHiA GENETICS achieved a 30% growth in revenue in the U.S. market.
- New agreements were reached with significant customers, including leading healthcare institutions that are adopting their innovative technology solutions for improved patient care.
Innovative Technologies and Partnerships
- The company launched SOPHiA DDM™ Digital Twins, an advanced AI-powered research technology designed to simulate outcomes for individualized treatment in oncology.
- Partnerships with global leaders such as AstraZeneca and Myriad Genetics are expected to shape future offerings, focusing on enhanced delivery of diagnostic systems and patient care.
Commitment to Financial Growth and Stability
Despite facing losses, SOPHiA GENETICS is focused on sustainable growth while maintaining an unwavering commitment to operational excellence. Ongoing optimization of costs has led to a robust adjusted gross margin of 73.1% this quarter.
The company aims for adjusted EBITDA breakeven by the end of 2026, progressing towards positive adjusted EBITDA in the latter half of 2027.
Earnings Call and Future Outlook
SOPHiA GENETICS will conduct a conference call to discuss these financial results in detail, offering insights into their strategic direction and answers to investor inquiries. This is an opportunity for stakeholders to engage with company leadership and understand the trajectory for growth in the coming years.
Frequently Asked Questions
What were the key financial results for Q3 2025?
SOPHiA GENETICS reported revenue of $19.5 million, representing 23% growth year-over-year, alongside a gross margin of 66.3%.
What does the 2025 outlook look like for SOPHiA GENETICS?
The company anticipates full-year revenue between $75 million and $77 million, indicating steady growth compared to the previous year.
How is SOPHiA GENETICS expanding its customer base?
In Q3, the company added 31 new customers with an increased average contract value by 180% year-over-year.
What innovative technologies has SOPHiA GENETICS introduced?
The launch of SOPHiA DDM™ Digital Twins is a key highlight, allowing for more effective personalized treatment planning.
What are SOPHiA GENETICS' goals for the future?
The company aims to achieve adjusted EBITDA breakeven by the end of 2026, striving towards positive adjusted EBITDA in 2027.
