SOPHiA GENETICS (NASDAQ:SOPH) Announces Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• SOPHiA GENETICS reported a third-quarter EPS loss of $0.24, missing the consensus estimate by $0.04, while revenue of $24.27 million modestly exceeded expectations.
• Revenue rose 25% year over year to $24.3 million, supported by record platform analyses, more than doubled liquid-biopsy volume, and continued biopharma collaboration growth. Adjusted EBITDA loss improved 31% to $6.1 million.
• Management expects 2026 revenue toward the upper end of its $94 million–$96 million guidance range and reaffirmed its goal of achieving positive adjusted EBITDA in the second half of 2027; the stock traded down 6.8%, with analysts holding a consensus “Hold” rating and a $10 price target.

SOPHiA GENETICS (NASDAQ:SOPH - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported ($0.24) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.20) by ($0.04), Zacks reports. The company had revenue of $24.27 million for the quarter, compared to the consensus estimate of $24.03 million. SOPHiA GENETICS had a negative return on equity of 132.47% and a negative net margin of 93.86%.

Here are the key takeaways from SOPHiA GENETICS's conference call:

• Q3 revenue increased 25% year over year to $24.3 million, with platform analyses up 19% to a record 118,000. U.S. revenue grew 41%, while North America, Asia Pacific, and several European markets also delivered strong gains.
• Liquid biopsy analyses more than doubled year over year and rose 41% sequentially to 4,200, supported by more than 85 signed institutions. The company is adding medical-affairs resources to accelerate adoption and reimbursement efforts outside the U.S.
• Biopharma momentum continued with a new collaboration with a top-10 pharmaceutical company to develop an AI predictor for bladder-cancer immunotherapy response, building on two AstraZeneca companion-diagnostic programs. Management said biopharma is becoming an accelerator of future growth.
• Adjusted EBITDA loss improved 31% year over year to $6.1 million, with nearly 60% of incremental revenue converting to the bottom line. Management reaffirmed its expectation to reach positive adjusted EBITDA in the second half of 2027 and maintained its $29 million-$32 million full-year 2026 adjusted EBITDA loss outlook.
• The company expects 2026 revenue at the upper end of its $94 million-$96 million guidance range, although foreign-exchange movements are a reported-revenue headwind. A substantial implementation backlog provides visibility into 2027, but management acknowledged that converting signed customers to revenue more quickly remains a priority.

SOPHiA GENETICS Trading Down 6.8%

SOPH opened at $7.11 on Tuesday. The stock has a market cap of $596.49 million, a PE ratio of -6.18 and a beta of 0.95. The company has a quick ratio of 2.55, a current ratio of 2.69 and a debt-to-equity ratio of 0.58. The business has a 50 day moving average of $7.84 and a 200-day moving average of $5.96. SOPHiA GENETICS has a 52 week low of $3.83 and a 52 week high of $8.98.

Insider Activity at SOPHiA GENETICS

In other SOPHiA GENETICS news, insider Zhenyu Xu sold 4,000 shares of the firm's stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $7.18, for a total transaction of $28,720.00. Following the completion of the transaction, the insider owned 541,493 shares of the company's stock, valued at approximately $3,887,919.74. This trade represents a 0.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Philippe Menu sold 5,000 shares of the business's stock in a transaction on Monday, October 12th. The shares were sold at an average price of $7.26, for a total transaction of $36,300.00. Following the sale, the insider owned 195,993 shares in the company, valued at approximately $1,422,909.18. This trade represents a 2.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 215,662 shares of company stock valued at $1,700,149 over the last ninety days. Insiders own 4.88% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Zacks Research raised SOPHiA GENETICS to a "hold" rating in a research note on Tuesday, July 21st. BTIG Research boosted their price objective on shares of SOPHiA GENETICS from $8.00 to $9.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. HC Wainwright reaffirmed a "buy" rating and set a $14.00 price objective on shares of SOPHiA GENETICS in a research note on Monday, October 12th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of SOPHiA GENETICS in a research note on Thursday, October 15th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $10.00.

SOPHiA GENETICS Company Profile

SOPHiA GENETICS SA is a healthcare technology company that develops data-driven solutions for genomic medicine. Its cloud-based platform uses artificial intelligence, machine learning and advanced analytics to help healthcare organizations analyze and interpret complex biological and clinical data.

The company's primary offering, the SOPHiA DDM platform, supports next-generation sequencing workflows, including data management, quality control, genomic analysis, variant interpretation and reporting.

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