SOPHiA GENETICS (NASDAQ:SOPH) Announces Earnings Results, Misses Estimates By $0.09 EPS

SOPHiA GENETICS (NASDAQ:SOPH) announced its earnings results on Tuesday. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.09), FiscalAI reports. SOPHiA GENETICS had a negative net margin of 44.48% and a negative return on equity of 62.74%. The company had revenue of $23.31 million during the quarter, compared to the consensus estimate of $21.72 million.

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

• Q2 revenue rose 27% year over year to $23.3 million, with record platform analysis volume of 115,000, up 22%. U.S. revenue grew 64%, while liquid biopsy revenue increased 80%.
• Customer momentum remained strong, with 24 new customers added, net dollar retention improving to 117%, and annualized revenue churn below 1%. Management said the clinical and biopharma pipelines each exceed $100 million.
• The company announced two AstraZeneca companion diagnostic programs, which management described as sizable, multi-year opportunities expected to contribute primarily from 2027 onward and expand SOPHiA’s biopharma platform.
• SOPHiA raised full-year 2026 revenue guidance to $94 million-$96 million from $92 million-$94 million, while reaffirming its adjusted EBITDA loss target of $29 million-$32 million and expectations to reach positive adjusted EBITDA in the second half of 2027.
• Adjusted gross margin declined to 72.1% from 74.4% a year ago, pressured by lower-margin early-stage biopharma projects, customer implementation services, and higher cloud and AI computing costs. The company also reported $12.9 million of quarterly cash burn and completed a $57.5 million equity offering, which may create shareholder dilution.

SOPHiA GENETICS Price Performance

Shares of NASDAQ SOPH traded up $0.75 during mid-day trading on Tuesday, reaching $6.44. The company had a trading volume of 346,828 shares, compared to its average volume of 200,696. The company has a 50-day moving average price of $5.48 and a two-hundred day moving average price of $5.10. The stock has a market cap of $540.08 million, a PE ratio of -12.38 and a beta of 0.96. The company has a current ratio of 2.06, a quick ratio of 1.90 and a debt-to-equity ratio of 1.05. SOPHiA GENETICS has a 1-year low of $2.92 and a 1-year high of $6.77.

Insider Buying and Selling

In other SOPHiA GENETICS news, Chairman Jurgi Camblong sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $6.63, for a total value of $132,600.00. Following the completion of the transaction, the chairman directly owned 3,492,822 shares in the company, valued at $23,157,409.86. This trade represents a 0.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available 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 that occurred on Monday, July 27th. The shares were sold at an average price of $5.66, for a total transaction of $28,300.00. Following the sale, the insider owned 223,387 shares in the company, valued at $1,264,370.42. This represents a 2.19% 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. In the last three months, insiders sold 221,092 shares of company stock valued at $1,250,070. 4.88% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SOPH. Dimensional Fund Advisors LP grew its stake in shares of SOPHiA GENETICS by 24.7% in the 3rd quarter. Dimensional Fund Advisors LP now owns 31,332 shares of the company’s stock valued at $148,000 after buying an additional 6,205 shares in the last quarter. Squarepoint Ops LLC bought a new position in SOPHiA GENETICS during the third quarter valued at approximately $49,000. Quadrature Capital Ltd acquired a new stake in SOPHiA GENETICS in the fourth quarter valued at approximately $54,000. XTX Topco Ltd acquired a new stake in SOPHiA GENETICS in the fourth quarter valued at approximately $55,000. Finally, Archon Capital Management LLC grew its position in SOPHiA GENETICS by 3.4% in the fourth quarter. Archon Capital Management LLC now owns 441,413 shares of the company’s stock worth $2,061,000 after acquiring an additional 14,342 shares in the last quarter. Hedge funds and other institutional investors own 31.59% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently commented on SOPH. BTIG Research reiterated a “buy” rating and set a $8.00 price objective on shares of SOPHiA GENETICS in a research note on Monday, June 15th. Zacks Research upgraded SOPHiA GENETICS to a “hold” rating in a research report on Tuesday, July 21st. HC Wainwright assumed coverage on SOPHiA GENETICS in a report on Monday, July 20th. They issued a “buy” rating and a $12.00 price objective for the company. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SOPHiA GENETICS in a research note on Friday, July 17th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $9.00.

About SOPHiA GENETICS

SOPHiA GENETICS SA is a data-driven medicine company founded in 2011 and headquartered in La Tène, Switzerland. The firm develops and operates a cloud-native software platform designed to standardize and analyze complex genomic and radiomic data. Its core offering, the SOPHiA DDM™ platform, leverages artificial intelligence and machine learning algorithms to help healthcare institutions, laboratories and biopharmaceutical partners derive actionable insights from next-generation sequencing and medical imaging datasets.

The SOPHiA DDM™ platform supports a range of clinical applications, including oncology, hereditary diseases and rare genetic disorders.