BOSTON and ROLLE, Switzerland, Nov. 4, 2025 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH), a global leader in AI-driven precision medicine, today reported financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Financial Results
-- Revenue was $19.5 million, up 23% year-over-year
-- Gross margin was 66.3% on a reported basis and 73.1% on an adjusted basis,
compared to 67.2% reported and 73.1% adjusted in the prior year period
-- Net IFRS loss was $20.0 million, up 9% year-over-year; Adjusted EBITDA
loss was $10.2 million, up 8% year-over-year; Excluding the impact of
elevated Swiss social charges on equity-based compensation following
share price appreciation, adjusted EBITDA loss would have been $8.8
million, representing a 13% year-over-year improvement
2025 Financial Outlook
-- Full year revenue is now expected to be in the range of $75 to $77
million, representing year-over-year growth of 15% to 18%. This compares
to the prior range of $72 to $76 million.
-- Adjusted EBITDA loss is now expected to be between $39 and $41 million,
which includes the impact of the Swiss social charges on equity-based
compensation as well as the appreciation of the Swiss Franc relative to
the U.S. Dollar and its impact on our costs.
"Q3 was an excellent quarter for SOPHiA GENETICS, with revenue growth accelerating for a third consecutive quarter to 23% as new business continues to come online," said Jurgi Camblong, PhD., Chief Executive Officer and Co-founder. "We also demonstrated strong operating leverage as platform scalability and rigorous cost discipline resulted in a year-over-year adjusted EBITDA loss improvement when excluding the impact of elevated Swiss social charges on equity-based compensation."
Camblong added, "Looking ahead, new business momentum remains strong. We signed an impressive cohort of 31 new customers in Q3, with an average contract value of those new signings up 180% year-over-year. We also delivered strong growth in the U.S., drove broad adoption of our Liquid Biopsy offering, and refreshed our momentum with BioPharma customers. Our AI-powered precision medicine platform, SOPHiA DDM$(TM)$ , perfectly positions us to take advantage of growing market demand and deliver future growth."
Third Quarter 2025 Business Highlights
Expanding usage of SOPHiA DDM(TM) with existing customers
-- Performed a record 99,000 analyses on SOPHiA DDMTM, representing 9%
year-over-year volume growth
-- Reached 488 core genomics customers as of September 30, 2025, up from 462
customers at the end of Q3 2024
-- Delivered strong growth in APAC and NORAM, with 35% and 26%
year-over-year analysis volume growth, respectively
-- Expanded to additional application areas at multiple top-ranked
institutions in Q3, including Gustave Roussy in Paris, France adding
multiple new Solid Tumor applications; Tulane University in New Orleans,
U.S. adopting an additional HemOnc application; and New South Wales
Health Pathology in Australia adding new applications in Solid Tumors
Landing new SOPHiA DDM(TM) customers to fuel future growth
-- Landed an impressive 31 new customers in Q3 2025 who will implement
SOPHiA DDMTM and begin generating revenue over the next twelve months, up
from 22 new customers signed in Q3 2024
-- Continued to demonstrate our ability to win larger accounts as the
average contract value of new signings increased by 180% year-over-year
-- Signed major new customers across geographies, including the Nice
University Hospital in France who is adopting MSK-ACCESS$(R)$ powered with
SOPHiA DDMTM; Clinica MEDS in Chile, who is adopting Rare Disorder
applications; and the American University of Beirut, who is adopting
MSK-IMPACT(R) Flex powered with SOPHiA DDMTM
Driving strong business growth in the U.S. market
-- Delivered 30% year-over-year revenue growth in the U.S. -- Signed major new customers, including Baylor Scott & White Health in Texas who is adopting SOPHiA DDMTM for HemOnc and Geisinger Health System in Pennsylvania who is adopting Pharmacogenomics applications
Accelerating growth with new applications
-- Recently signed major new customers to the Liquid Biopsy application
MSK-ACCESS(R) powered with SOPHiA DDMTM, including Sunnybrook Health
Sciences Center in Toronto, Canada and Health Services Laboratory in
London
-- Signed a total of 60 customers signed-to-adopt MSK-ACCESS(R) powered with
SOPHiA DDMTM, with the majority expected to complete implementation and
begin generating revenue over the next 3 - 6 months
-- Launched SOPHiA DDMTM Digital Twins, an AI-powered research technology
that creates dynamic, virtual representations of individual patients to
simulate potential outcomes and help oncologists make better treatment
decisions
Leveraging SOPHiA DDM(TM) to deliver value to BioPharma partners
-- Announced major partnerships with Myriad Genetics in the U.S. and
A.D.A.M. Innovations (previously "Genesis Healthcare") in Japan to
develop MSK-ACCESS(R) powered with SOPHiA DDMTM into a regulated, global
companion diagnostic (CDx) assay
-- Signed two major new partnerships with AstraZeneca in Q3 to (1) develop
an optimized next generation sequencing $(NGS)$ solution that leverages
SOPHiA GENETICS's AI algorithms to detect genetic mutations in the
PIK3CA/AKT1/PTEN pathway and (2) leverage SOPHiA GENETICS's multimodal AI
Factories to generate evidence on the efficacy, value, and real-world
impact of therapies for breast cancer
Growing sustainably by maintaining an obsession with operational excellence
-- Achieved a 73.1% adjusted gross margin in Q3 by continuing to optimize
compute costs and leverage the scale of the cloud-native SOPHiA DDMTM
platform
-- Continuous rigorous cost discipline and improved adjusted EBITDA loss by
13% year-over-year to $8.8 million after excluding the impact of elevated
Swiss social charges on equity-based compensation (an expense this
quarter of $1.3 million compared to a benefit of $0.7 million in Q3 2024)
-- 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
Earnings Call and Webcast Information
SOPHiA GENETICS will host a conference call and live webcast to discuss the third quarter 2025 results on Tuesday, November 4, 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.
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, 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 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, the non-cash portion of pensions expense paid in excess of
actual contributions to match the actuarial expense, certain transaction
costs and litigation expenses.
-- 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, 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 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 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(TM), 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 Nine months ended
September 30, September 30,
-------------------------- --------------------------
2025 2024 2025 2024
------------ ------------ ------------ ------------
Revenue $ 19,462 $ 15,853 $ 55,564 $ 47,440
Cost of revenue (6,555) (5,199) (18,179) (15,605)
------------ ------------ ------------ ------------
Gross profit 12,907 10,654 37,385 31,835
------------ ------------ ------------ ------------
Research and
development
costs (8,067) (7,874) (25,678) (25,223)
Selling and
marketing
costs (8,670) (7,306) (26,238) (21,515)
General and
administrative
costs (13,889) (10,880) (37,790) (34,288)
Other operating
(loss) income,
net (143) 43 (69) 67
------------ ------------ ------------ ------------
Operating loss (17,862) (15,363) (52,390) (49,124)
------------ ------------ ------------ ------------
Interest income 622 855 1,491 2,707
Interest expense (1,663) (588) (2,881) (1,232)
Fair value
adjustments on
warrant
obligations (607) 182 (587) 266
Foreign exchange
(losses) gains,
net 131 (3,394) (3,546) 655
------------ ------------ ------------ ------------
Loss before
income taxes (19,379) (18,308) (57,913) (46,728)
------------ ------------ ------------ ------------
Income tax
expense (642) (130) (1,907) (607)
------------ ------------ ------------ ------------
Loss for the
period (20,021) (18,438) (59,820) (47,335)
------------ ------------ ------------ ------------
Attributable to
the owners of
the parent (20,021) (18,438) (59,820) (47,335)
------------ ------------ ------------ ------------
Basic and
diluted loss
per share $ (0.30) $ (0.28) $ (0.89) $ (0.72)
============ ============ ============ ============
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Comprehensive Loss
(Amounts in USD thousands)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------- -------------------------
2025 2024 2025 2024
------------ ----------- ----------- ------------
Loss for the
period $ (20,021) $ (18,438) $ (59,820) $ (47,335)
Other
comprehensive
(loss) income:
Items that may
be
reclassified
to statement
of loss
Currency
translation
adjustments (366) 6,990 11,230 (2,149)
------------ ----------- ----------- ------------
Total items that
may be
reclassified to
statement of
loss (366) 6,990 11,230 (2,149)
Items that
will not be
reclassified
to statement
of loss (net
of tax)
Remeasurement
of defined
benefit plans 152 (173) 251 (231)
------------ ----------- ----------- ------------
Total items that
will not be
reclassified to
statement of
loss 152 (173) 251 (231)
Other
comprehensive
(loss) income for
the period $ (214) $ 6,817 $ 11,481 $ (2,380)
============ =========== =========== ============
Total
comprehensive
loss for the
period $ (20,235) $ (11,621) $ (48,339) $ (49,715)
============ =========== =========== ============
Attributable to
owners of the
parent $ (20,235) $ (11,621) $ (48,339) $ (49,715)
============ =========== =========== ============
SOPHiA GENETICS SA
Interim Condensed Consolidated Balance Sheets
(Amounts in USD thousands)
(Unaudited)
September 30, 2025 December 31, 2024
-------------------------- --------------------------
Assets
Current assets
Cash and cash
equivalents $ 81,610 $ 80,226
Accounts
receivable 8,455 7,436
Inventory 6,680 5,868
Prepaids and
other current
assets 6,735 5,875
-------------------------- --------------------------
Total current
assets 103,480 99,405
-------------------------- --------------------------
Non-current
assets
Property and
equipment 4,915 5,209
Intangible assets 34,681 28,998
Right-of-use
assets 12,706 14,168
Deferred tax
assets 1,666 1,767
Other non-current
assets 6,010 5,762
-------------------------- --------------------------
Total non-current
assets 59,978 55,904
-------------------------- --------------------------
Total assets $ 163,458 $ 155,309
========================== ==========================
Liabilities and
equity
Current
liabilities
Accounts payable $ 6,056 $ 5,220
Accrued expenses 16,718 13,217
Deferred contract
revenue 10,040 5,732
Lease
liabilities,
current portion 2,609 2,190
Warrant
obligations 1,504 444
Total current
liabilities 36,927 26,803
-------------------------- --------------------------
Non-current
liabilities
Borrowings 47,581 13,237
Lease
liabilities, net
of current
portion 13,183 14,603
Defined benefit
pension
liabilities 4,409 3,839
Other non-current
liabilities 671 337
-------------------------- --------------------------
Total non-current
liabilities 65,844 32,016
-------------------------- --------------------------
Total liabilities 102,771 58,819
-------------------------- --------------------------
Equity
Share capital 4,188 4,188
Share premium 472,438 472,244
Treasury shares (632) (702)
Other reserves 84,790 61,037
Accumulated
deficit (500,097) (440,277)
-------------------------- --------------------------
Total equity 60,687 96,490
-------------------------- --------------------------
Total liabilities
and equity $ 163,458 $ 155,309
========================== ==========================
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Cash Flows
(Amounts in USD thousands)
(Unaudited)
Nine months ended September 30,
------------------------------------------------------
2025 2024
-------------------------- --------------------------
(As Recast)(1)
Operating
activities
Loss before tax $ (57,913) $ (46,728)
Adjustments for
non-monetary
items
Depreciation 2,949 3,439
Amortization 4,142 2,870
Finance expense
(income), net 5,009 (2,333)
Fair value
adjustments on
warrant
obligations 587 (266)
Expected credit
loss allowance
increase
(reversal) (7) (252)
Share-based
compensation 12,337 11,410
Movements in
provisions and
pensions 492 246
Research tax
credit (752) (460)
Working capital
changes
Decrease
(increase) in
accounts
receivable 31 3,813
Decrease
(increase) in
prepaids and
other assets 2,060 (420)
Decrease
(increase) in
inventory (165) 48
Increase
(decrease) in
accounts
payables, accrued
expenses,
deferred contract
revenue, and
other
liabilities 3,678 (4,822)
-------------------------- --------------------------
Cash used in
operating
activities (27,552) (33,455)
-------------------------- --------------------------
Income tax paid (205) (374)
-------------------------- --------------------------
Net cash flows
used in operating
activities (27,757) (33,829)
-------------------------- --------------------------
Investing
activities
Purchase of
property and
equipment (236) (187)
Acquisition of
intangible
assets (223) (195)
Capitalized
development
costs (5,697) (5,854)
Purchase of
equity
investments held
at fair value (493) --
Interest received 1,482 2,741
-------------------------- --------------------------
Net cash flow used
in investing
activities (5,167) (3,495)
-------------------------- --------------------------
Financing
activities
Proceeds from
exercise of share
options 199 370
Interest paid (2,805) (1,133)
Proceeds from
borrowings, net
of transaction
costs 34,563 13,930
Payments of
principal portion
of lease
liabilities (1,395) (2,142)
-------------------------- --------------------------
Net cash flow
provided by
financing
activities 30,562 11,025
-------------------------- --------------------------
Increase
(decrease) in
cash and cash
equivalents (2,362) (26,299)
-------------------------- --------------------------
Effect of exchange
differences on
cash balances 3,746 (1,165)
Cash and cash
equivalents at
beginning of the
year 80,226 123,251
-------------------------- --------------------------
Cash and cash
equivalents at
end of the
period $ 81,610 $ 95,787
========================== ==========================
(1) Refer to "Note 1--Change in accounting policies--Statement of Cash Flows -
Interest Classification", included as Exhibit 99.1 to the Report on Form 6-K
to which this report is included as Exhibit 99.3, for details on change in
accounting policy.
SOPHiA GENETICS SA
Reconciliation of IFRS Net Loss to Adjusted EBITDA
(Amounts in USD thousands)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------- ------------------------
2025 2024 2025 2024
IFRS loss for the
period $ (20,021) $ (18,438) $ (59,820) $ (47,335)
Exclude the
impact of:
Depreciation $ 1,022 $ 1,152 $ 2,949 $ 3,439
Amortization 1,402 1,061 4,142 2,870
Interest income (622) (855) (1,491) (2,707)
Interest expense 1,663 588 2,881 1,232
Fair value
adjustments on
warrant
obligations 607 (182) 587 (266)
Foreign exchange
losses (gains),
net (131) 3,394 3,546 (655)
Income tax
expense 642 130 1,907 607
Share-based
compensation
expense(1)(5) 4,146 3,613 12,337 11,410
Non-cash pension
expense(2) 87 106 262 279
Transaction
costs(6) 445 -- 445 --
Litigation
expenses(7) 605 -- 605 --
Adjusted EBITDA $ (10,154) $ (9,431) $ (31,649) $ (31,126)
SOPHiA GENETICS SA Reconciliation of IFRS Revenue Growth to Constant
Currency Revenue Growth (Amounts in USD thousands, except for %)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------------- ---------------------------
2025 2024 Growth 2025 2024 Growth
-------- -------- ------ -------- -------- ------
IFRS
revenue $ 19,462 $ 15,853 23 % $ 55,564 $ 47,440 17 %
Current
period
constant
currency
impact (698) -- -- 0 (863) 0 --
-------- -------- ------ -------- -------- ------
Constant
currency
revenue $ 18,764 $ 15,853 18 % $ 54,701 $ 47,440 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 Nine months ended
September 30, September 30,
-------------------- -------------------
2025 2024 2025 2024
--------- --------- --------- --------
Revenue $ 19,462 $ 15,853 $ 55,564 $ 47,440
Cost of revenue (6,555) (5,199) (18,179) (15,605)
--------- --------- --------- --------
Gross profit $ 12,907 $ 10,654 $ 37,385 $ 31,835
Amortization of
capitalized research and
development expenses(3) 1,329 942 3,927 2,463
Adjusted gross profit $ 14,236 $ 11,596 $ 41,312 $ 34,298
========= ========= ========= ========
Gross profit margin 66.3 % 67.2 % 67.3 % 67.1 %
Amortization of
capitalized research and
development expenses(3) 6.8 % 5.9 % 7.1 % 5.2 %
Adjusted gross profit
margin 73.1 % 73.1 % 74.4 % 72.3 %
SOPHiA GENETICS SA
Reconciliation of IFRS to Adjusted Operating Loss for the Period
(Amounts in USD thousands)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------------ ------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Operating loss $ (17,862) $ (15,363) $ (52,390) $ (49,124)
Amortization of
capitalized
research &
development
expenses(3) 1,329 942 3,927 2,463
Amortization of
intangible
assets(4) 73 119 215 407
Share-based
compensation
expense(1)(5) 4,146 3,613 12,337 11,411
Non-cash pension
expense(2) 87 106 262 279
Transaction
costs(6) 445 -- 445 --
Litigation
expenses(7) 605 -- 605 --
Adjusted operating
loss $ (11,176) $ (10,583) $ (34,598) $ (34,564)
=========== =========== =========== ===========
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) Share-based compensation expense does not include social charges on
equity-based compensation of $1.3 million and $(0.7) million for the
three months ended September 30, 2025 and 2024, respectively, and $1.3
million and $(0.4) million for the nine months ended September 30, 2025
and 2024, respectively.
(6) Transaction costs consists of expenses incurred in connection with the
Company's shelf registration statement and the ATM program.
(7) Litigation expenses consists of expenses related to the company's defense
of lawsuits filed by Guardant Health.
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SOURCE SOPHiA GENETICS
(END) Dow Jones Newswires
November 04, 2025 06:45 ET (11:45 GMT)