SOPHiA GENETICS (NASDAQ:SOPH) Issues Earnings Results, Misses Expectations By $0.05 EPS

SOPHiA GENETICS (NASDAQ:SOPH) announced its quarterly earnings results on Tuesday. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.05), Zacks reports. The firm had revenue of $23.31 million during the quarter, compared to the consensus estimate of $21.72 million. SOPHiA GENETICS had a negative return on equity of 153.15% and a negative net margin of 93.86%.

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 Down 2.6%

NASDAQ:SOPH traded down $0.17 during trading hours on Thursday, reaching $6.13. The company’s stock had a trading volume of 62,754 shares, compared to its average volume of 212,705. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.90 and a current ratio of 2.06. The company has a market capitalization of $514.67 million, a P/E ratio of -5.38 and a beta of 0.96. SOPHiA GENETICS has a 12 month low of $2.96 and a 12 month high of $7.21. The stock has a 50 day moving average price of $5.54 and a two-hundred day moving average price of $5.12.

Key Headlines Impacting SOPHiA GENETICS

Here are the key news stories impacting SOPHiA GENETICS this week:

• Positive Sentiment: SOPHiA GENETICS raised its 2026 revenue outlook to $94 million–$96 million, implying 22%–24% year-over-year growth and slightly exceeding consensus expectations. Management also continues to target adjusted EBITDA breakeven by year-end. 2026 revenue outlook article
• Positive Sentiment: The company partnered with AstraZeneca on the development, validation and commercialization of two companion diagnostics for precision-oncology therapies. The collaboration could strengthen SOPH’s position in oncology testing and support longer-term growth. AstraZeneca partnership article
• Positive Sentiment: Analyst sentiment improved, with HC Wainwright raising its price target from $12 to $14 and BTIG Research increasing its target from $8 to $9. Both firms maintained Buy ratings, although HC Wainwright lowered its FY2029 EPS estimate to $0.31 from $0.34 before raising its FY2030 estimate to $0.72 from $0.69.
• Neutral Sentiment: Chairman Jurgi Camblong, CTO Abhimanyu Verma and insider Zhenyu Xu sold a combined 35,000 shares for approximately $242,350 under pre-arranged Rule 10b5-1 trading plans. The sales modestly reduced their holdings and therefore provide limited bearish signaling.
• Negative Sentiment: Second-quarter revenue rose 27% year over year to $23.31 million and exceeded expectations, but the company reported an adjusted loss of $0.26 per share versus the expected $0.21 loss. Persistent losses, including a negative net margin, may be driving investor caution despite the stronger revenue outlook. Second-quarter results presentation

Insider Buying and Selling

In other SOPHiA GENETICS news, CEO Ross Muken sold 9,838 shares of the company’s 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 approximately $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 can be accessed 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 Zhenyu Xu sold 10,000 shares of the business’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $6.92, for a total value of $69,200.00. Following the sale, the insider owned 600,887 shares in the company, valued at approximately $4,158,138.04. The trade was a 1.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 256,092 shares of company stock worth $1,492,420 in the last 90 days. 4.88% of the stock is owned by corporate insiders.

Institutional Trading of SOPHiA GENETICS

Several hedge funds and other institutional investors have recently bought and sold shares of SOPH. Squarepoint Ops LLC acquired a new stake in SOPHiA GENETICS in the 3rd quarter valued at $49,000. Quadrature Capital Ltd acquired a new position in SOPHiA GENETICS in the fourth quarter valued at approximately $54,000. XTX Topco Ltd acquired a new stake in shares of SOPHiA GENETICS during the 4th quarter worth about $55,000. Susquehanna International Group LLP acquired a new stake in SOPHiA GENETICS in the 3rd quarter valued at approximately $88,000. Finally, Polen Capital Management LLC purchased a new stake in shares of SOPHiA GENETICS in the 4th quarter valued at $102,000. 31.59% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts recently commented on SOPH shares. Weiss Ratings reissued a “sell (d-)” rating on shares of SOPHiA GENETICS in a research 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 increased their price target on SOPHiA GENETICS from $12.00 to $14.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, BTIG Research increased their price target on SOPHiA GENETICS from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Wednesday. 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 company. According to MarketBeat.com, SOPHiA GENETICS currently has a consensus rating of “Hold” and a consensus price target of $10.00.

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.