BOSTON and ROLLE, Switzerland, May 5, 2026 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a global leader in Ai-driven precision medicine, today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Results
-- Revenue was $21.7 million, up 22% year-over-year
-- Gross margin was 68.0% on a reported basis and 75.4% on an adjusted basis,
compared to 68.7% reported and 75.7% adjusted in the prior year period
-- IFRS net loss was $19.3 million, an increase of 11% year-over-year;
Adjusted EBITDA loss was $9.2 million, improving 3% year-over-year
"We started 2026 strong, delivering 22% year-over-year revenue growth and a record 108,000 genomic analyses on SOPHiA DDM$(TM)$ ," said Jurgi Camblong, PhD., Chief Executive Officer and Co-Founder of SOPHiA GENETICS. "Demand for our platform continues to grow, as U.S. hospitals and laboratories increasingly look to launch Ai-powered precision medicine capabilities, and customers across the globe continue to show strong interest in new applications such as Liquid Biopsy and Enhanced Exomes."
Camblong added, "Looking ahead, new business momentum remains strong. Exciting new applications, continued U.S. expansion, and rising interest from BioPharma provide major catalysts for future growth. Accelerating growth, in combination with our strong gross margin performance and persistent focus on operational excellence, position us well to deliver meaningful operating leverage as the year progresses."
Business Highlights
Expanding with existing customers
-- Performed a record 108,000 analyses on SOPHiA DDMTM, representing 16%
year-over-year volume growth
-- Delivered strong analysis volume growth in the U.S. and Asia Pacific
$(APAC)$ with 28% and 31% year-over-year growth, respectively; Europe and
Middle East (EMEA) revenue was up 30% in the period
-- Expanded our footprint with existing customers as Net Dollar Retention
increased to 117% in Q1 2026, up from 103% in Q1 2025
-- Signed three notable expansion deals in EMEA, each valued over $1 million
per year, as existing customers continue to add new applications, in
addition to continued expand momentum in the U.S.
-- Reached 537 core genomics customers as of March 31, 2026, up from 490
customers a year ago
Landing new customers to fuel future growth
-- Signed 18 new core genomic customers in Q1 2026, which are expected to
begin generating revenue over the next twelve months
-- Continued to sign premier healthcare institutions across the globe,
including CHU Bordeaux's Haut Lévêque Hospital, one of France's
major university hospitals, for HemOnc; Maastricht UMC, a leading Dutch
academic medical center, for MSK-ACCESS$(R)$ powered with SOPHiA DDMTM; and
Christian Medical College, one of India's most prestigious medical
institutions, for HemOnc
Accelerating growth in the U.S. market
-- Achieved 28% year-over-year U.S. analysis volume growth in Q1 2026
-- Announced an expanded partnership with Mount Sinai Health System, one of
the leading academic health systems in the U.S., which is adopting SOPHiA
DDMTM for HemOnc and Solid Tumor testing; Mount Sinai joins a growing
network of New York-area partners, including NYU Langone Health and
Memorial Sloan Kettering Cancer Center
-- Signed Protean BioDiagnostics, a Florida-based cancer diagnostics company,
which is adopting SOPHiA DDMTM for Solid Tumor testing
Scaling growth with new applications
-- Reached a total of 100 customers across 30+ countries signed-to-adopt the
Liquid Biopsy application MSK-ACCESS(R) or the Solid Tumor application
MSK-IMPACT(R), less than two years after launch
-- Performed nearly 3,000 Liquid Biopsy analyses in Q1 2026, up 100%+
year-over-year, as customers implement the application and begin to ramp
usage
-- Signed major new customers to the Liquid Biopsy application MSK-ACCESS(R)
powered with SOPHiA DDMTM, including Ospedale Niguarda, one of Italy's
leading hospitals in Milan; Ruhr University Bochum in Germany; and King
Abdullah International Medical Center in Saudi Arabia
Building BioPharma partnerships
-- Continued to build momentum with BioPharma partners around evidence
generation, sponsored deployment projects, and commercialization and
co-development of future companion diagnostic (CDx) offerings
-- Delivered positive BioPharma revenue growth in Q1, modestly accretive to
the company's overall growth rate, as several recently signed new
projects begin generating revenue
Driving operational excellence
-- Achieved a 75.4% adjusted gross margin in Q1 2026 by continuing to
optimize compute costs and leverage the scale of the cloud-native SOPHiA
DDMTM platform
-- Executed targeted cost actions in April, modestly reducing headcount and
operating spend as Ai-driven productivity improvements enabled us to
streamline workflows while maintaining investment in key growth areas
-- Reaffirmed commitment to profitable growth, expecting to approach
adjusted EBITDA breakeven by the end of 2026 and cross over to positive
adjusted EBITDA in the second half of 2027
2026 Financial Outlook
Based on information as of today, SOPHiA GENETICS is reaffirming the following guidance:
-- Full year revenue between $92 million and $94 million, representing
approximately 20% to 22% year-over-year growth compared to FY 2025
-- Adjusted EBITDA loss between $29 million and $32 million, compared to
$41.5 million in FY 2025
Earnings Call and Webcast Information
SOPHiA GENETICS will host a conference call and live webcast to discuss the first quarter 2026 results on Tuesday, May 5, 2026, 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.
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 EBITDA (non-IFRS measure) to loss for the period (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying depreciation expense, amortization of capitalized research & development expenses and intangible assets, interest income, interest expense, fair value adjustments on warrants, income taxes, foreign exchange gains or losses, share-based compensation expenses, social charges on share-based compensation, the non-cash portion of pensions paid in excess of actual contributions, certain transaction costs and litigation expenses 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 EBITDA, which the company calculates as loss for the period
before depreciation, amortization, interest income, interest expense,
fair value adjustments on warrant obligations, foreign exchange (losses)
gains, net, income tax (expense) benefit, share-based compensation
expense, social charges on share-based compensation, non-cash pension
expenses, certain transaction costs and litigation expenses.
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. Amortization of
these assets will continue to be for the foreseeable future a recurring
expense incurred as the Company continues to invest in developing
revenue-generating products through research and development. 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 social charges related to
share-based compensation. These social charges have been, and will
continue to be for the foreseeable future, a recurring expense in the
company's business;
-- 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;
-- These non-IFRS measures exclude the impact of certain capital markets
transaction costs. These costs may occur from time to time in the future
as needed to complete the transactions;
-- These non-IFRS measures exclude the impact of litigation expenses related
to the company's defense of lawsuits filed by Guardant Health. These
expenses are expected to continue for the duration of the litigation and
may increase in future periods;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.
About SOPHiA GENETICS
SOPHiA GENETICS (Nasdaq: SOPH) is an Ai-native healthcare technology company on a mission to transform patient care by expanding access to data-driven medicine globally. It is the creator of SOPHiA DDM(TM), an Ai platform that analyzes complex genomic and multimodal data to generate real-time, real-world 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,
----------------------------------------
2026 2025
------------------- -------------------
Revenue $ 21,688 $ 17,779
Cost of revenue (6,939) (5,571)
------------------- -------------------
Gross profit 14,749 12,208
------------------- -------------------
Research and development costs (9,460) (9,118)
Selling and marketing costs (8,813) (7,534)
General and administrative costs (13,759) (11,600)
Other operating income, net -- 8
------------------- -------------------
Operating loss (17,283) (16,036)
------------------- -------------------
Interest income 289 450
Interest expense (1,667) (659)
Fair value adjustments on
warrant obligations (92) (38)
Foreign exchange losses, net (316) (599)
------------------- -------------------
Loss before income taxes (19,069) (16,882)
------------------- -------------------
Income tax expense (253) (503)
------------------- -------------------
Loss for the period (19,322) (17,385)
------------------- -------------------
Attributable to the owners of
the parent (19,322) (17,385)
------------------- -------------------
Basic and diluted loss per share $ (0.27) $ (0.26)
=================== ===================
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Comprehensive Loss
(Amounts in USD thousands)
(Unaudited)
Three months ended March 31,
-------------------------------------
2026 2025
------------------ -----------------
Loss for the period $ (19,322) $ (17,385)
Other comprehensive (loss) income:
Items that may be reclassified
to statement of loss
Currency translation adjustments (530) 2,586
------------------ -----------------
Total items that may be
reclassified to statement of loss (530) 2,586
Items that will not be
reclassified to statement of
loss (net of tax)
Remeasurement of defined benefit
plans 123 47
------------------ -----------------
Total items that will not be
reclassified to statement of loss 123 47
Other comprehensive (loss) income
for the period $ (407) $ 2,633
================== =================
Total comprehensive loss for the
period $ (19,729) $ (14,752)
================== =================
Attributable to owners of the
parent $ (19,729) $ (14,752)
================== =================
SOPHiA GENETICS SA
Interim Condensed Consolidated Balance Sheets
(Amounts in USD thousands)
(Unaudited)
March 31, 2026 December 31, 2025
----------------------- ------------------------
Assets
Current assets
Cash and cash
equivalents $ 65,392 $ 70,289
Accounts receivable 14,312 15,001
Inventory 7,086 6,351
Prepaids and other
current assets 9,021 7,438
----------------------- ------------------------
Total current assets 95,811 99,079
----------------------- ------------------------
Non-current assets
Property and equipment 5,096 5,665
Intangible assets 35,824 35,891
Right-of-use assets 11,701 12,382
Deferred tax assets 1,813 1,831
Other non-current
assets 6,750 8,183
----------------------- ------------------------
Total non-current
assets 61,184 63,952
----------------------- ------------------------
Total assets $ 156,995 $ 163,031
======================= ========================
Liabilities and equity
Current liabilities
Accounts payable $ 12,668 $ 8,960
Accrued expenses 13,437 20,736
Deferred contract
revenue 15,946 16,720
Lease liabilities,
current portion 2,713 2,700
Warrant obligations 1,831 1,412
Total current
liabilities 46,595 50,528
----------------------- ------------------------
Non-current
liabilities
Borrowings 47,844 47,733
Lease liabilities, net
of current portion 11,868 12,587
Defined benefit
pension liabilities 4,098 4,162
Other non-current
liabilities 902 876
----------------------- ------------------------
Total non-current
liabilities 64,712 65,358
----------------------- ------------------------
Total liabilities 111,307 115,886
----------------------- ------------------------
Equity
Share capital 4,814 4,814
Share premium 488,423 473,675
Treasury shares (1,007) (1,218)
Other reserves 92,056 89,150
Accumulated deficit (538,598) (519,276)
----------------------- ------------------------
Total equity 45,688 47,145
----------------------- ------------------------
Total liabilities and
equity $ 156,995 $ 163,031
======================= ========================
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Cash Flows
(Amounts in USD thousands)
(Unaudited)
Three months ended March 31,
--------------------------------------------------
2026 2025
------------------------ ------------------------
Operating activities
Loss before tax $ (19,069) $ (16,882)
Adjustments for
non-monetary items
Depreciation 1,079 985
Amortization 1,672 1,312
Finance expense, net 1,426 925
Fair value adjustments
on warrant
obligations 92 38
Expected credit loss
allowance increase
(reversal) 30 (20)
Share-based
compensation 3,313 3,835
Movements in
provisions and
pensions 25 57
Research tax credit (173) (172)
Loss on disposal of
property and
equipment 3 --
Working capital
changes
Decrease (increase) in
accounts receivable 469 (2,961)
Decrease (increase) in
prepaids and other
assets 189 393
Decrease (increase) in
inventory (867) 972
Increase (decrease) in
accounts payables,
accrued expenses,
deferred contract
revenue, and other
liabilities (3,275) 813
------------------------ ------------------------
Cash used in operating
activities (15,086) (10,705)
------------------------ ------------------------
Income tax paid (34) (45)
------------------------ ------------------------
Net cash flows used in
operating activities (15,120) (10,750)
------------------------ ------------------------
Investing activities
Purchase of property
and equipment (878) --
Acquisition of
intangible assets (32) (46)
Capitalized
development costs (1,960) (1,445)
Interest received 289 452
------------------------ ------------------------
Net cash flow used in
investing activities (2,581) (1,039)
------------------------ ------------------------
Financing activities
Proceeds from exercise
of share options 463 40
Interest paid (1,348) (567)
Proceeds from sale of
common stock in
at-the-market
offering, net of
transaction costs 14,496 --
Payments of principal
portion of lease
liabilities (569) (463)
------------------------ ------------------------
Net cash flow provided
by/(used in)
financing activities 13,042 (990)
------------------------ ------------------------
Increase (decrease) in
cash and cash
equivalents (4,659) (12,779)
------------------------ ------------------------
Effect of exchange
differences on cash
balances (238) 1,081
Cash and cash
equivalents at
beginning of the
period 70,289 80,226
------------------------ ------------------------
Cash and cash
equivalents at end of
the period $ 65,392 $ 68,528
======================== ========================
SOPHiA GENETICS SA
Reconciliation of IFRS Net Loss to Adjusted EBITDA
(Amounts in USD thousands)
(Unaudited)
Three months ended March 31,
----------------------------------------
2026 2025
IFRS loss for the period $ (19,322) $ (17,385)
Exclude the impact of:
Depreciation $ 1,079 $ 985
Amortization(3)(4) 1,672 1,312
Interest income (289) (450)
Interest expense 1,667 659
Fair value adjustments on
warrant obligations 92 38
Foreign exchange losses (gains),
net 316 599
Income tax expense 253 503
Share-based compensation
expense(1) 3,313 3,835
Social charges related to
share-based compensation(7) 1,068 355
Non-cash pension expense(2) 91 86
Transaction costs(5) 168 --
Litigation expenses(6) 689 --
Adjusted EBITDA $ (9,203) $ (9,463)
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,
----------------------------------
2026 2025 Growth
------------ ------------ ------
IFRS revenue $ 21,688 $ 17,779 22 %
Current period constant currency
impact (1,482) --
------------ ------------ ------
Constant currency revenue $ 20,206 $ 17,779 14 %
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,
--------------------------------
2026 2025
--------------- ---------------
Revenue $ 21,688 $ 17,779
Cost of revenue (6,939) (5,571)
--------------- ---------------
Gross profit $ 14,749 $ 12,208
Amortization of capitalized research
and development expenses(3) 1,602 1,241
Adjusted gross profit $ 16,351 $ 13,449
=============== ===============
Gross profit margin 68.0 % 68.7 %
Amortization of capitalized research
and development expenses(3) 7.4 % 7.0 %
Adjusted gross profit margin 75.4 % 75.7 %
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.
5. Transaction costs consists of expenses incurred in connection with the
Company's shelf registration statement and the ATM program.
6. Litigation expenses consists of expenses related to the company's defense
of lawsuits filed by Guardant Health.
7. Social charges related to share-based compensation consist of payroll
taxes and other social charges on share-based compensation awards. These
expenses have been, and will continue to be for the foreseeable future, a
recurring expense in the company's business.
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