SOPHiA GENETICS Reports First Quarter 2025 Results

Rhea-AI Summary

SOPHiA GENETICS (SOPH) reported Q1 2025 financial results with revenue of $17.8 million, up 13% YoY (15% constant currency). The company achieved a record adjusted gross margin of 75.7%, improving from 70.5% last year. While IFRS net loss increased 27% to $17.4 million, adjusted EBITDA loss improved 24% to $9.8 million. Key operational highlights include: performing 93,000 analyses (+11% YoY), reaching 490 core genomics customers, and surpassing 2 million cumulative genomic profiles analyzed. The company maintained its 2025 guidance of revenue between $72-76 million and adjusted EBITDA loss of $35-39 million. Notable business momentum includes 30%+ U.S. revenue growth, expanded partnerships with major institutions like Mount Sinai and Mayo Clinic, and growing adoption of their MSK-ACCESS® powered platform. Management expects to approach adjusted EBITDA breakeven by end of 2026.

Positive

• Record adjusted gross margin of 75.7%, up 520bps year-over-year
• Revenue growth of 13% YoY to $17.8 million, with 15% growth in constant currency
• 24% improvement in adjusted EBITDA loss to $9.8 million
• Strong U.S. market growth with over 30% YoY revenue increase from core genomics customers
• Expanded partnerships with major institutions including Mount Sinai, Mayo Clinic, and AstraZeneca
• Clear path to profitability with adjusted EBITDA breakeven expected by end of 2026

Negative

• IFRS net loss increased 27% year-over-year to $17.4 million
• Significant foreign exchange impact of $5.2 million on P&L
• Continued operating losses requiring additional progress toward profitability

Insights

Financial Analyst

SOPHiA shows improved operational metrics with 13% revenue growth and margin gains, but significant losses persist with profitability still years away.

SOPHiA GENETICS delivered $17.8 million in Q1 revenue, representing 13% year-over-year growth (15% constant currency), indicating steady execution as new business from 2024 begins generating revenue. The most impressive metric is their adjusted gross margin improvement, reaching 75.7% - a substantial 520 basis point increase from the prior year period. This margin expansion demonstrates significant efficiency gains in their data processing capabilities.

The financial results present a mixed profitability picture. IFRS net loss worsened by 27% to $17.4 million, largely due to a $5.2 million foreign exchange impact. Meanwhile, adjusted EBITDA loss improved by 24% to $9.8 million, reflecting the company's focus on cost containment and operational excellence. This divergence between IFRS and non-IFRS metrics highlights the impact of non-cash and non-operational factors on reported results.

Management has maintained full-year guidance of $72-76 million in revenue (representing 10-17% growth) and adjusted EBITDA loss between $35-39 million. Their timeline to profitability indicates adjusted EBITDA breakeven by end of 2026 and positive adjusted EBITDA in second half of 2027. While operational improvements are evident, SOPHiA remains in growth investment mode with profitability still over two years away.

Healthcare Technology Analyst

SOPHiA accelerates customer acquisition and platform adoption while expanding strategic partnerships and applications in precision medicine.

SOPHiA GENETICS is demonstrating strong momentum in platform adoption and customer growth metrics. The company performed 93,000 analyses on SOPHiA DDM in Q1, achieving 11% year-over-year growth and reaching 2 million cumulative genomic profiles analyzed - a significant platform milestone. Their core genomics customer base expanded to 490, up from 463 in Q1 2024.

Implementation velocity has accelerated notably, with 33 new customer implementations completed in Q1, compared to their 2024 quarterly average of 23. New customer acquisition has also gained momentum, with 28 new core genomics customers signed in Q1 2025, up from 20 in the year-ago period. These customers will implement the platform and begin generating revenue over the next twelve months.

Geographic expansion shows particularly strong growth in strategic markets, with analysis volume increasing 32% in North America and 40% in Asia-Pacific. The U.S. market appears to be a strategic focus, delivering over 30% year-over-year revenue growth from core genomics customers and securing prestigious institutions like Mount Sinai, Henry Ford Hospital, and Mayo Clinic.

The MSK-ACCESS liquid biopsy application powered by SOPHiA DDM is gaining significant traction globally. Their AstraZeneca collaboration expanded to 30 sponsored institutions worldwide, with new customer signings across multiple continents including Kuwait Cancer Control Center, Centre Hospitalier Régional Universitaire de Nancy in France, and Hospital de Amor in Brazil. With a pipeline of over 60 identified opportunities for MSK-ACCESS and MSK-IMPACT applications, this appears to be a key growth driver for the company.

BOSTON and ROLLE, Switzerland, May 6, 2025 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and leader in data-driven medicine, today reported financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Results

• Revenue was $17.8 million, up 13% year-over-year or 15% on a constant currency basis
• Gross margin was 68.7% on a reported basis and 75.7% on an adjusted basis, up from 65.9% and 70.5% in the prior year period, respectively
• IFRS net loss increased 27% year-over-year to $17.4 million (including a net foreign exchange P&L impact of $5.2 million), and adjusted EBITDA loss improved 24% year-over-year to $9.8 million
• The company reiterates full-year guidance of revenue between $72 million and $76 million and adjusted EBITDA loss between $35 million and $39 million

"We started the year strong with year-over-year revenue growth of 13%, or 15% on a constant currency basis, as the large amount of new business signed in 2024 begins to ramp," said Jurgi Camblong, PhD., Chief Executive Officer and Co-founder. "In addition to reaccelerating topline growth, we also continued to optimize SOPHiA DDM™'s data processing capabilities and delivered a record adjusted gross margin of 75.7%, up 520bps year-over-year. Prudent cost management across all spending categories resulted in a 24% year-over-year improvement to adjusted EBITDA loss during the period, demonstrating steady progress on our path to profitability."

Camblong added, "Looking ahead, we remain confident in our long-term growth and in the growth prospects of our end markets. New business momentum remains strong, driven by notable catalysts such as the new Liquid Biopsy application MSK-ACCESS^® powered with SOPHiA DDM™, a relatively underpenetrated U.S. market where revenue from core genomics customers grew over 30%, and a large base of new customers to onboard and expand over the remainder of 2025."

First Quarter 2025 Business Highlights

Expanding usage of SOPHiA DDM™ worldwide

• Performed 93,000 analyses on SOPHiA DDM™, representing 11% year-over-year volume growth
• Reached 490 core genomics customers as of March 31, 2025, up from 463 customers at the end of Q1 2024
• Completed implementation for 33 new core genomics customers during Q1 2025, up from an average of 23 customers implemented per quarter in 2024
• Delivered strong analysis volume growth in NORAM and APAC with 32% and 40% year-over-year growth, respectively
• Hit a major Platform milestone during Q1, passing 2 million cumulative genomic profiles analyzed by SOPHiA DDM™ since inception

Landing new customers to fuel future platform growth

• Landed 28 new core genomics customers in Q1 2025 who will implement SOPHiA DDM™ and begin generating revenue over the next twelve months, up from 20 new customers signed in Q1 2024
• Signed major new customers across geographies including Jessa Ziekenhuis in Belgium who is adopting SOPHiA DDM™ for Solid Tumor, Liquid Biopsy, and HemOnc testing; LifeLabs, a central reference lab in Canada, who is adopting Solid Tumor applications; and Premier Integrated Labs in Malaysia who is adopting numerous applications in Hereditary Cancer, HemOnc, and Inherited Disorders, in addition to MSK-ACCESS^® powered with SOPHiA DDM™

Building strong new business momentum with new applications

• Expanded the October 2024 collaboration with AstraZeneca to accelerate the deployment of MSK-ACCESS^® powered with SOPHiA DDM™ globally, extending the scope to 30 total sponsored institutions worldwide
• Recently signed new customers to the Liquid Biopsy application MSK-ACCESS^® powered with SOPHiA DDM™, including Kuwait Cancer Control Center; Centre Hospitalier Régional Universitaire de Nancy in Nancy, France; and Hospital de Amor in Barretos, Brazil
• Continued to drive significant demand for MSK-ACCESS^® and MSK-IMPACT^® powered with SOPHiA DDM™, with a healthy and growing pipeline of more than 60 identified opportunities

Continued driving strong business growth in the U.S. market

• Delivered over 30% year-over-year revenue growth from U.S. core genomics customers in Q1
• Expanded our partnerships with two top-ranked U.S. hospitals, including Henry Ford Hospital who is adopting additional Solid Tumor and HemOnc applications on SOPHiA DDM™ and the Mayo Clinic who is adopting HemOnc applications
• Signed Mount Sinai during Q1, one of the leading hospital systems in the world based in New York City, who is adopting HemOnc and Solid Tumor applications

Growing sustainably by maintaining an obsession with operational excellence

• Achieved a record 75.7% adjusted gross margin, up 520bps year-over-year, by continuing to optimize compute costs and leverage the scale of the cloud-native SOPHiA DDM™ platform
• Remained laser-focused on operational excellence and cost containment and improved adjusted EBITDA loss by 24% year-over-year to $9.8 million
• The Company reaffirms commitment to profitable growth and expects to be approaching adjusted EBITDA breakeven by the end of 2026 and crossing over to positive adjusted EBITDA in the second half of 2027

2025 Financial Outlook

Based on information as of today, SOPHiA GENETICS is reaffirming the previously provided guidance of:

• Full-year revenue between $72 million and $76 million, representing growth of approximately 10% to 17% compared to FY 2024
• Adjusted EBITDA loss between $35 million and $39 million, compared to $40.2 million in FY 2024

Non-IFRS Financial Measures

Other than with respect to revenue, the Company only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted gross margin (non-IFRS measure) to gross margin (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying amortization of capitalized research & development expenses that are necessary for such reconciliation. In addition, the Company does not provide a reconciliation of forward-looking adjusted operating loss (non-IFRS measure) to operating loss (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying amortization of capitalized research & development expenses and intangible assets, share-based compensation expenses, and non-cash portion of pensions paid in excess of actual contributions, that are necessary for such reconciliation.

To provide investors with additional information regarding the company's financial results, SOPHiA GENETICS has disclosed here and elsewhere in this earnings release the following non-IFRS measures:

• Adjusted gross profit, which the company calculates as revenue minus cost of revenue adjusted to exclude amortization of capitalized research and development expenses;
• Adjusted gross profit margin, which the company calculates as adjusted gross profit as a percentage of revenue;
• Adjusted operating loss, which the company calculates as operating loss adjusted to exclude amortization of capitalized research and development expenses, amortization of intangible assets, share-based compensation expense, and non-cash portion of pensions expense paid in excess of actual contributions to match the actuarial expense.
• EBITDA, which the company calculates as loss for the year before depreciation, amortization, interest income, interest expense, fair value adjustments on warrant obligations, foreign exchange (losses) gains, net, and income tax (expense) benefit; and
• Adjusted EBITDA, which the company calculates as EBITDA adjusted to exclude share-based compensation expense, non-cash pension expenses, and costs associated with restructuring.

These non-IFRS measures are key measures used by SOPHiA GENETICS management and board of directors to evaluate its operating performance and generate future operating plans. The exclusion of certain expenses facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable charges. Accordingly, the company believes that these non-IFRS measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors.

These non-IFRS measures have limitations as financial measures, and you should not consider them in isolation or as a substitute for analysis of SOPHiA GENETICS' results as reported under IFRS. Some of these limitations are:

• These non-IFRS measures exclude the impact of depreciation. Although depreciation is a non-cash charge, the assets being depreciated may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures;
• These non-IFRS measures exclude the impact of interest expense. Interest expense will continue to be for the foreseeable future a recurring expense based on the company's financial liabilities;
• These non-IFRS measures exclude the impact of interest income. Interest income will continue to be for the foreseeable future recurring income based on the company's financial assets;
• These non-IFRS measures exclude the impact of income taxes. Income taxes will continue to be for the foreseeable future a recurring expense incurred in the various jurisdictions in which the company operates;
• These non-IFRS measures exclude the impact of foreign exchange gains (losses),net. Foreign exchange gains and losses will continue to be for the foreseeable future a recurring expense incurred as the company participates in transactions outside of the company's functional currency;
• These non-IFRS measures exclude the impact of fair value adjustments of warrant obligations. Fair value adjustments on warrant obligations will continue to be for the foreseeable future a recurring expense incurred as the company has outstanding warrant obligations;
• These non-IFRS measures exclude the impact of amortization of capitalized research and development expenses and intangible assets. Although amortization is a non-cash charge, the assets being amortized may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures;
• These non-IFRS measures exclude the impact of share-based compensation expenses. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in the company's business and an important part of its compensation strategy;
• These non-IFRS measures exclude the impact of the non-cash portion of pensions paid in excess of actual contributions to match actuarial expenses. Pension expenses have been, and will continue to be for the foreseeable future, a recurring expense in the business; and
• Other companies, including companies in the company's industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider these non-IFRS measures alongside other financial performance measures, including various cash flow metrics, net income and other IFRS results.

The tables below provide the reconciliation of the most comparable IFRS measures to the non-IFRS measures for the periods presented.

Presentation of Constant Currency Revenue

SOPHiA GENETICS operates internationally, and its revenues are generated primarily in the U.S. dollar, the euro and Swiss franc and, to a lesser extent, British pound, Australian dollar, Brazilian real, Turkish lira and Canadian dollar depending on the company's customers' geographic locations. Changes in revenue include the impact of changes in foreign currency exchange rates. We present the non-IFRS financial measure "constant currency revenue" (or similar terms such as constant currency revenue growth) to show changes in revenue without giving effect to period-to-period currency fluctuations. Under IFRS, revenues received in local (non-U.S. dollar) currencies are translated into U.S. dollars at the average monthly exchange rate for the month in which the transaction occurred. When the company uses the term "constant currency", it means that it has translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. The company then calculates the difference between the IFRS revenue and the constant currency revenue to yield the "constant currency impact" for the current period.

The company's management and board of directors use constant currency revenue growth to evaluate growth and generate future operating plans. The exclusion of the impact of exchange rate fluctuations provides comparability across reporting periods and reflects the effects of customer acquisition efforts and land-and-expand strategy. Accordingly, it believes that this non-IFRS measure provides useful information to investors and others in understanding and evaluating revenue growth in the same manner as the management and board of directors. However, this non-IFRS measure has limitations, particularly as the exchange rate effects that are eliminated could constitute a significant element of its revenue and could significantly impact performance and prospects. Because of these limitations, you should consider this non-IFRS measure alongside other financial performance measures, including revenue and revenue growth presented in accordance with IFRS and other IFRS results.

The table below provides the reconciliation of the most comparable IFRS growth measures to the non-IFRS growth measures for the current period.

Earnings Call and Webcast Information

SOPHiA GENETICS will host a conference call and live webcast to discuss the first quarter 2025 results on Tuesday, May 6, 2025, at 8:00 a.m. (08:00) Eastern Time / 2:00 p.m. (14:00) Central European Time. The call will be webcast live on the SOPHiA GENETICS Investor Relations website, ir.sophiagenetics.com. Additionally, an audio replay of the conference call will be available on the SOPHiA GENETICS website after its completion.

About SOPHiA GENETICS

SOPHiA GENETICS (Nasdaq: SOPH) is a cloud-native healthcare technology company on a mission to expand access to data-driven medicine by using AI to deliver world-class care to patients with cancer and rare disorders across the globe. It is the creator of SOPHiA DDM™, a platform that analyzes complex genomic and multimodal data and generates real-time, actionable insights for a broad global network of hospital, laboratory, and biopharma institutions. For more information, visit SOPHiAGENETICS.COM and connect with us on LinkedIn.

Forward-Looking Statements

This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding SOPHiA GENETICS future results of operations and financial position, business strategy, products and technology, partnerships and collaborations, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on SOPHiA GENETICS' management's beliefs and assumptions and on information currently available to the company's management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in the company's filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this press release speak only as of its date. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in the company's expectations or any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

SOPHiA GENETICS SA Interim Condensed Consolidated Statements of Loss (Amounts in USD thousands, except per share data) (Unaudited)
		Three months ended March 31,
		2025		2024
Revenue		$                   17,779		$                   15,779
Cost of revenue		(5,571)		(5,374)
Gross profit		12,208		10,405
Research and development costs		(9,118)		(9,391)
Selling and marketing costs		(7,534)		(6,951)
General and administrative costs		(11,600)		(12,825)
Other operating income, net		8		6
Operating loss		(16,036)		(18,756)
Interest income		450		901
Interest expense		(659)		(143)
Fair value adjustments on warrant obligations		(38)		—
Foreign exchange (losses) gains, net		(599)		4,610
Loss before income taxes		(16,882)		(13,388)
Income tax expense		(503)		(316)
Loss for the period		(17,385)		(13,704)
Attributable to the owners of the parent		(17,385)		(13,704)
Basic and diluted loss per share		$                     (0.26)		$                     (0.21)

 

SOPHiA GENETICS SA Interim Condensed Consolidated Statements of Comprehensive Loss (Amounts in USD thousands) (Unaudited)
		Three months ended March 31,
		2025		2024
Loss for the period		$                  (17,385)		$                  (13,704)
Other comprehensive (loss) income:
Items that may be reclassified to statement of loss
Currency translation adjustments		2,586		(9,393)
Total items that may be reclassified to statement of loss		2,586		(9,393)
Items that will not be reclassified to statement of loss (net of tax)
Remeasurement of defined benefit plans		47		(15)
Total items that will not be reclassified to statement of loss		47		(15)
Other comprehensive (loss) income for the period		$                     2,633		$                    (9,408)
Total comprehensive loss for the period		$                  (14,752)		$                  (23,112)
Attributable to owners of the parent		$                  (14,752)		$                  (23,112)

 

SOPHiA GENETICS SA Interim Condensed Consolidated Balance Sheets (Amounts in USD thousands)  (Unaudited)
		March 31, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents		$                   68,528		$                   80,226
Accounts receivable		10,695		7,436
Inventory		5,050		5,868
Prepaids and other current assets		5,778		5,875
Total current assets		90,051		99,405
Non-current assets
Property and equipment		4,986		5,209
Intangible assets		29,994		28,998
Right-of-use assets		14,028		14,168
Deferred tax assets		1,777		1,767
Other non-current assets		5,883		5,762
Total non-current assets		56,668		55,904
Total assets		$                 146,719		$                 155,309
Liabilities and equity
Current liabilities
Accounts payable		$                     4,606		$                     5,220
Accrued expenses		11,730		13,217
Deferred contract revenue		9,838		5,732
Lease liabilities, current portion		2,288		2,190
Warrant obligations		482		444
Total current liabilities		28,944		26,803
Non-current liabilities
Borrowings		13,317		13,237
Lease liabilities, net of current portion		14,525		14,603
Defined benefit pension liabilities		3,983		3,839
Other non-current liabilities		337		337
Total non-current liabilities		32,162		32,016
Total liabilities		61,106		58,819
Equity
Share capital		4,188		4,188
Share premium		472,283		472,244
Treasury shares		(694)		(702)
Other reserves		67,498		61,037
Accumulated deficit		(457,662)		(440,277)
Total equity		85,613		96,490
Total liabilities and equity		$                 146,719		$                 155,309

 

SOPHiA GENETICS SA Interim Condensed Consolidated Statements of Cash Flows (Amounts in USD thousands) (Unaudited)
		Three months ended March 31,
		2025		2024
				(As Recast)1
Operating activities
Loss before tax		$                  (16,882)		$                  (13,388)
Adjustments for non-monetary items
Depreciation		985		1,158
Amortization		1,312		901
Finance expense (income), net		925		(5,046)
Fair value adjustments on warrant obligations		38		—
Expected credit loss allowance		(20)		(48)
Share-based compensation		3,835		3,714
Movements in provisions and pensions		57		(135)
Research tax credit		(172)		(104)
Working capital changes
(Increase) decrease in accounts receivable		(2,961)		2,168
Decrease (increase) in prepaids and other assets		393		(182)
Decrease in inventory		972		376
Increase (decrease) in accounts payables, accrued expenses, deferred contract revenue, and other liabilities		813		(4,058)
Cash used in operating activities		(10,705)		(14,644)
Income tax paid		(45)		(1)
Net cash flows used in operating activities		(10,750)		(14,645)
Investing activities
Purchase of property and equipment		—		(99)
Acquisition of intangible assets		(46)		(50)
Capitalized development costs		(1,445)		(1,809)
Interest received		452		953
Net cash flow used in investing activities		(1,039)		(1,005)
Financing activities
Proceeds from exercise of share options		40		188
Interest paid		(567)		(147)
Capitalized borrowing transaction costs		—		(49)
Payments of principal portion of lease liabilities		(463)		(735)
Net cash flow used in financing activities		(990)		(743)
Decrease in cash and cash equivalents		(12,779)		(16,393)
Effect of exchange differences on cash balances		1,081		(3,123)
Cash and cash equivalents at beginning of the year		80,226		123,251
Cash and cash equivalents at end of the period		$                   68,528		$                 103,735

1 Refer to "Note 1—Change in accounting policies—Statement of Cash Flows - Interest Classification" for details on change in accounting policy of exhibit 99.1 within of the Form 6-K filed on May 6,2025 .

 

SOPHiA GENETICS SA Reconciliation of IFRS Net Loss to EBITDA and Adjusted EBITDA (Amounts in USD thousands) (Unaudited)
		Three months ended March 31,
		2025		2024
Loss for the period		$                  (17,385)		$                  (13,704)
Exclude the impact of:
Depreciation		$                        985		$                     1,158
Amortization		1,312		901
Interest income		(450)		(901)
Interest expense		659		143
Fair value adjustments on warrant obligations		38		—
Foreign exchange gains (losses), net		599		(4,610)
Income tax expense		503		316
EBITDA		$                  (13,739)		$                  (16,697)
Adjustments to EBITDA:
Share-based compensation expense(1)		3,835		3,714
Non-cash pension expense(2)		86		77
Adjusted EBITDA		$                    (9,818)		$                  (12,906)

 

SOPHiA GENETICS SA Reconciliation of IFRS Net Loss to EBITDA and Adjusted EBITDA for the fiscal year 2024 (Amounts in USD thousands) (Unaudited)
		Year ended
		December 31, 2024
Loss for the period		$                                                    (62,493)
Exclude the impact of:
Depreciation		$                                                        4,575
Amortization		4,021
Interest income		(3,362)
Interest expense		1,913
Fair value adjustments on warrant obligations		(370)
Foreign exchange losses, net		(3,479)
Income tax expense		1,223
EBITDA		$                                                    (57,972)
Adjustments to EBITDA:
Share-based compensation expense(1)		16,488
Non-cash pension expense(2)		1,306
Adjusted EBITDA		$                                                    (40,178)

 

SOPHiA GENETICS SA Reconciliation of IFRS Revenue Growth to Constant Currency Revenue Growth (Amounts in USD thousands, except for %) (Unaudited)
		Three months ended March 31,
		2025		2024		Growth
IFRS revenue		$       17,779		$       15,779		13 %
Current period constant currency impact		418		—
Constant currency revenue		$       18,197		$       15,779		15 %

 

SOPHiA GENETICS SA Reconciliation of IFRS to Adjusted Gross Profit and Gross Profit Margin (Amounts in USD thousands, except percentages) (Unaudited)
		Three months ended March 31,
		2025		2024
Revenue		$                17,779		$                15,779
Cost of revenue		(5,571)		(5,374)
Gross profit		$                12,208		$                10,405
Amortization of capitalized research and development expenses(3)		1,241		727
Adjusted gross profit		$                13,449		$                11,132
Gross profit margin		68.7 %		65.9 %
Amortization of capitalized research and development expenses(3)		7.0 %		4.6 %
Adjusted gross profit margin		75.7 %		70.5 %

 

SOPHiA GENETICS SA Reconciliation of IFRS to Adjusted Operating Loss for the Period (Amounts in USD thousands) (Unaudited)
		Three months ended March 31,
		2025		2024
Operating loss		$                  (16,036)		$                  (18,756)
Amortization of capitalized research & development expenses(3)		1,241		727
Amortization of intangible assets(4)		71		174
Share-based compensation expense(1)		3,835		3,714
Non-cash pension expense(2)		86		77
Adjusted operating loss		$                  (10,803)		$                  (14,064)

 

Notes to the Reconciliation of IFRS to Adjusted Financial Measures Tables
(1)	Share-based compensation expense represents the cost of equity awards issued to our directors, officers, and employees. The fair value of awards is computed at the time the award is granted and is recognized over the vesting period of the award by a charge to the income statement and a corresponding increase in other reserves within equity. These expenses do not have a cash impact but remain a recurring expense for our business and represent an important part of our overall compensation strategy.
(2)	Non-cash pension expense consists of the amount recognized in excess of actual contributions made to our defined pension plans to match actuarial expenses calculated for IFRS purposes. The difference represents a non-cash expense but remains a recurring expense for our business as we continue to make contributions to our plans for the foreseeable future.
(3)	Amortization of capitalized research and development expenses consists of software development costs amortized using the straight-line method over an estimated life of five years. These expenses do not have a cash impact but remain a recurring expense generated over the course of our research and development initiatives.
(4)	Amortization of intangible assets consists of costs related to intangible assets amortized over the course of their useful lives. These expenses do not have a cash impact, but we could continue to generate such expenses through future capital investments.

 

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FAQ

What were SOPHiA GENETICS (SOPH) key financial results for Q1 2025?

In Q1 2025, SOPHiA GENETICS reported revenue of $17.8M (+13% YoY), adjusted gross margin of 75.7%, and adjusted EBITDA loss of $9.8M (improved 24% YoY). The company maintained its 2025 revenue guidance of $72-76M.

When does SOPHiA GENETICS expect to reach profitability?

The company expects to approach adjusted EBITDA breakeven by the end of 2026 and achieve positive adjusted EBITDA in the second half of 2027.

How many genomic analyses did SOPHiA GENETICS perform in Q1 2025?

SOPHiA performed 93,000 analyses in Q1 2025, representing 11% year-over-year growth, and reached a milestone of 2 million cumulative genomic profiles analyzed.

What is SOPHiA GENETICS' customer growth in Q1 2025?

SOPHiA reached 490 core genomics customers (up from 463 in Q1 2024), implemented 33 new customers in Q1, and signed 28 new customers to be implemented over the next 12 months.

What are the major partnerships SOPHiA GENETICS secured in Q1 2025?

SOPHiA expanded partnerships with Mount Sinai, Mayo Clinic, Henry Ford Hospital, and extended its AstraZeneca collaboration for MSK-ACCESS® powered with SOPHiA DDM™ to 30 institutions worldwide.