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

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

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 Stock Performance

Shares of SOPH opened at $7.11 on Tuesday. The business’s fifty day simple moving average is $7.84 and its two-hundred day simple moving average is $5.96. The company has a current ratio of 2.69, a quick ratio of 2.55 and a debt-to-equity ratio of 0.58. SOPHiA GENETICS has a 12 month low of $3.83 and a 12 month high of $8.98. The company has a market cap of $596.49 million, a price-to-earnings ratio of -6.18 and a beta of 0.95.

Analyst Ratings Changes

Several research firms have commented on SOPH. Weiss Ratings reissued a “sell (d-)” rating on shares of SOPHiA GENETICS in a report on Thursday, October 15th. BTIG Research raised their price target on SOPHiA GENETICS from $8.00 to $9.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. HC Wainwright reaffirmed a “buy” rating and issued a $14.00 price target on shares of SOPHiA GENETICS in a research report on Monday, October 12th. Finally, Zacks Research upgraded shares of SOPHiA GENETICS to a “hold” rating in a research note on Tuesday, July 21st. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $10.00.

Insiders Place Their Bets

In other news, Chairman Jurgi Camblong sold 40,172 shares of the company’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $8.13, for a total transaction of $326,598.36. Following the transaction, the chairman directly owned 3,395,650 shares of the company’s stock, valued at $27,606,634.50. This represents a 1.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Philippe Menu sold 7,394 shares of the stock in a transaction on Monday, October 5th. The shares were sold at an average price of $8.13, for a total value of $60,113.22. Following the sale, the insider directly owned 200,993 shares in the company, valued at $1,634,073.09. This trade represents a 3.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 215,662 shares of company stock worth $1,700,149 over the last three months. Company insiders own 4.88% of the company’s stock.

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.