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

SOPHiA GENETICS (NASDAQ:SOPH) issued its quarterly earnings results on Tuesday. The company reported ($0.24) EPS for the quarter, missing the consensus estimate of ($0.20) by ($0.04), Zacks reports. SOPHiA GENETICS had a negative net margin of 93.86% and a negative return on equity of 132.47%. The firm 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

SOPH traded down $0.13 during trading on Tuesday, hitting $6.98. The stock had a trading volume of 466,286 shares, compared to its average volume of 324,499. The firm has a market cap of $585.59 million, a PE ratio of -6.07 and a beta of 0.95. SOPHiA GENETICS has a 12 month low of $3.83 and a 12 month high of $8.98. The company has a current ratio of 2.69, a quick ratio of 2.55 and a debt-to-equity ratio of 0.58. The company has a 50 day simple moving average of $7.84 and a 200-day simple moving average of $5.96.

Analyst Ratings Changes

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

Insider Activity

In other SOPHiA GENETICS news, insider Zhenyu Xu sold 17,000 shares of the company’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $7.29, for a total transaction of $123,930.00. Following the completion of the sale, the insider directly owned 590,887 shares in the company, valued at $4,307,566.23. This represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Philippe Menu sold 7,394 shares of the firm’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $8.13, for a total value of $60,113.22. Following the completion of the sale, the insider directly owned 200,993 shares in the company, valued at approximately $1,634,073.09. This represents a 3.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 sold 215,662 shares of company stock worth $1,700,149 in the last 90 days. Insiders own 4.88% of the company’s stock.

About SOPHiA GENETICS

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.