SOPHiA GENETICS (NASDAQ:SOPH) Posts Earnings Results, Misses Expectations By $0.09 EPS

SOPHiA GENETICS (NASDAQ:SOPH) released its quarterly earnings data on Tuesday. The company reported ($0.30) EPS for the quarter, missing the consensus estimate 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 analyst estimates 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 Stock Up 0.4%

SOPHiA GENETICS stock opened at $5.69 on Tuesday. The company’s 50-day moving average price is $5.48 and its two-hundred day moving average price is $5.10. The company has a quick ratio of 1.90, a current ratio of 2.06 and a debt-to-equity ratio of 1.05. The stock has a market cap of $477.33 million, a P/E ratio of -10.94 and a beta of 0.96. SOPHiA GENETICS has a twelve month low of $2.92 and a twelve month high of $6.77.

Wall Street Analyst Weigh In

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

Insider Transactions at SOPHiA GENETICS

In other SOPHiA GENETICS news, CEO Ross Muken sold 9,838 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $5.22, for a total transaction of $51,354.36. Following the transaction, the chief executive officer owned 670,651 shares in the company, valued at $3,500,798.22. This represents a 1.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 Zhenyu Xu sold 7,393 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $5.17, for a total value of $38,221.81. Following the completion of the sale, the insider owned 614,887 shares of the company’s stock, valued at approximately $3,178,965.79. This trade represents a 1.19% 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. In the last 90 days, 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 Investors Weigh In On SOPHiA GENETICS

A number of large investors have recently modified their holdings of the business. Archon Capital Management LLC lifted its position in shares of SOPHiA GENETICS by 3.4% during the 4th quarter. Archon Capital Management LLC now owns 441,413 shares of the company’s stock worth $2,061,000 after buying an additional 14,342 shares during the last quarter. Renaissance Technologies LLC raised its stake in SOPHiA GENETICS by 169.5% during the fourth quarter. Renaissance Technologies LLC now owns 83,000 shares of the company’s stock worth $388,000 after acquiring an additional 52,200 shares in the last quarter. Akre Capital Management LLC raised its stake in SOPHiA GENETICS by 66.2% during the second quarter. Akre Capital Management LLC now owns 3,719,140 shares of the company’s stock worth $11,529,000 after acquiring an additional 1,481,636 shares in the last quarter. Federated Hermes Inc. lifted its holdings in shares of SOPHiA GENETICS by 16.4% in the second quarter. Federated Hermes Inc. now owns 220,000 shares of the company’s stock worth $682,000 after acquiring an additional 31,000 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of SOPHiA GENETICS by 246.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 7,632,871 shares of the company’s stock valued at $25,341,000 after purchasing an additional 5,432,871 shares in the last quarter. Institutional investors and hedge funds own 31.59% of the company’s stock.

SOPHiA GENETICS Company Profile

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.