Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $18.3 million, representing a year-over-year growth of 16% compared to $15.8 million in Q2 2024 [35] - Cash burn decreased to $8.7 million in Q2 2025, a 35% year-over-year improvement [42] - Adjusted gross margin improved to 74.4%, up 120 basis points from 73.2% in Q2 2024 [38] Business Line Data and Key Metrics Changes - Revenue excluding biopharma grew 20% year-over-year in Q2 2025, while overall revenue growth was 16% due to modest headwinds from biopharma [19][20] - HemOnc analysis grew 19% year-over-year in Q2 2025, indicating strong performance in hematology testing [21] - Liquid biopsy revenue increased by approximately 900% year-over-year, with 50 customers now using the MSK Access application [72] Market Data and Key Metrics Changes - In North America, revenue excluding biopharma grew more than 19% year-over-year in Q2 2025 [9] - Asia Pacific saw almost 100% year-over-year revenue growth, with significant new business momentum [27] - EMEA growth remained solid, particularly in the UK, which saw over 50% year-over-year volume growth [20] Company Strategy and Development Direction - The company is focused on expanding its customer base, having signed a record 35 new customers in Q2 2025, bringing the total to 63 new customers for the year [8][22] - A major new multi-year partnership with AstraZeneca was announced, focusing on AI-driven predictive models for breast cancer treatment [13][34] - The company aims to optimize cloud compute and storage costs while expanding gross margins beyond 2024 levels [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, with strong forward-looking indicators such as new business bookings and a robust pipeline [44][48] - The company anticipates that Q4 will be the strongest quarter seasonally, reaffirming full-year revenue guidance of $72 million to $76 million [44] - Management remains focused on achieving adjusted EBITDA breakeven by 2026 and positive adjusted EBITDA by 2027 [42] Other Important Information - The company reported a net dollar retention rate of 107% for the quarter, indicating strong performance in Europe and North America [37] - Total operating expenses for Q2 2025 were $30.8 million, a 19% year-over-year increase primarily due to higher sales and marketing expenses [39][40] - The company has drawn $35 million in debt financing to strengthen its cash position, finishing the quarter with cash and cash equivalents of $94.8 million [43] Q&A Session Summary Question: Can you provide additional details on the AstraZeneca partnership milestones? - Management confirmed that the AstraZeneca deal includes a series of deliverables over several quarters, with confidence in achieving the full value of the contract [52][55] Question: What is the competitive landscape for rare disease applications outside the US? - Management noted that they are seeing strong growth in rare inherited disorders, with a 20% year-over-year increase, and emphasized their competitive positioning in this area [58][61] Question: What prompted the decision to draw the $35 million revolver? - The decision was made to strengthen the cash position in light of accelerating growth across clinical and pharma sides [67][70] Question: What are the adoption trends for MSK Access in the US? - Management reported that liquid biopsy is gaining clinical relevance, with 11 new customers signed for MSK Access in Q2, bringing the total to 50 [72][73] Question: Can you provide insights on the size and structure of the AstraZeneca contract? - Management indicated that the contract includes a mix of base payments and milestone payments, with confidence in recognizing the full value [94][95]

Company Overview - SOPHiA GENETICS' Ai platform SOPHiA DDM™ is used by over 800 healthcare institutions globally to analyze complex health data for cancer and rare disorders[7] - The platform analyzes over 350,000 patients annually and has analyzed over 2 million profiles since its inception[8, 21] - The company has invested over $450 million since its inception in its Ai platform[21, 57] Market Trends - The incidence of cancer and rare disorders is increasing worldwide, driving demand for targeted therapies[13] - Healthcare data is rapidly expanding, with 30% of all data generated globally being healthcare-related[16] - The Total Addressable Market (TAM) for Liquid Biopsy is estimated to be over $5 billion[56] Financial Performance - SOPHiA GENETICS' revenue for 2024 was $65.2 million[60] - The company projects revenue between $72 million and $76 million for 2025, representing a year-over-year growth of approximately 10% to 17%[60, 63] - Adjusted EBITDA loss is projected to be between $35 million and $39 million in 2025, compared to $40.2 million in 2024[63] - The company's adjusted gross margin was 72.8% in 2024 and is expected to expand slightly in 2025[63]

Financial Performance - SOPHiA GENETICS reported Q2 2025 revenue of $18.3 million, reflecting a 16% year-over-year growth [7][12] - Adjusted gross margin improved to 74.4%, up 120 basis points from the previous year [3][12] - The company experienced a net loss of $22.4 million, which is a 48% increase year-over-year [7][12] Business Highlights - The company signed 35 new core genomics customers in Q2 2025, a significant increase from 19 new customers in Q2 2024 [3][8] - A major multi-year AI breast cancer partnership was established with AstraZeneca, marking the largest contract in the company's history [3][12] - The total number of core genomics customers reached 490 as of June 30, 2025, up from 457 at the end of Q2 2024 [8] Operational Efficiency - Cash burn improved by 35% year-over-year, totaling $8.7 million for the quarter [3][7] - The company performed 95,000 analyses on SOPHiA DDMTM, representing a 9% year-over-year volume growth [8] - The partnership with Dasa, the largest medical diagnostics company in Latin America, was expanded to include additional applications [8] Future Outlook - SOPHiA GENETICS reaffirmed its full-year revenue guidance of $72 million to $76 million, indicating a growth of approximately 10% to 17% compared to FY 2024 [12] - The company expects to approach adjusted EBITDA breakeven by the end of 2026 and achieve positive adjusted EBITDA in the second half of 2027 [12]

Core Insights - SOPHiA GENETICS has expanded its partnership with AstraZeneca to enhance data-driven medicine for breast cancer treatment [1][3] - The collaboration will utilize SOPHiA GENETICS's AI Factories to analyze multimodal healthcare data and generate insights for optimizing treatment outcomes [2][3] Company Overview - SOPHiA GENETICS is a cloud-native healthcare technology company focused on data-driven medicine, particularly in cancer and rare disorders [5] - The company offers the SOPHiA DDM™ Platform, which analyzes complex genomic and multimodal data to provide actionable insights [5] Partnership Details - The multi-year collaboration aims to develop a bespoke AI-powered predictive model for breast cancer treatment [1][2] - AstraZeneca will leverage SOPHiA GENETICS's AI capabilities to generate real-world evidence and enhance clinical decision-making [2][3] Strategic Importance - This partnership highlights the increasing demand for secure and scalable AI applications in healthcare [3] - The collaboration reinforces SOPHiA GENETICS' position as a trusted technology partner in advancing global health through federated data analytics [3]

Revenue and Profitability - Revenue for Q2 2025 reached $18.3 million, a 16% increase from $15.8 million in Q2 2024[5] - Gross profit for the six months ended June 30, 2025, was $24.5 million, up from $21.2 million in the same period last year, reflecting a 15% growth[5] - Total revenue for the three months ended June 30, 2025, was $18,323,000, representing a 9.6% increase from $15,808,000 in the same period of 2024; for the six months ended June 30, 2025, total revenue was $36,102,000, up 14.3% from $31,587,000 in 2024[43][44] - Revenue from the SOPHiA DDM Platform for the three months ended June 30, 2025, was $17,880,000, an increase of 16.4% from $15,300,000 in 2024; for the six months, it was $35,225,000, up 14.9% from $30,718,000[44] Losses and Expenses - Operating loss for Q2 2025 was $18.5 million, compared to a loss of $15.0 million in Q2 2024, indicating a 23% increase in losses[5] - The company reported a net loss of $22.4 million for Q2 2025, compared to a loss of $15.2 million in Q2 2024, a 47% increase in net losses[7] - Basic and diluted loss per share for Q2 2025 was $0.33, compared to $0.23 in Q2 2024[5] - For the six months ended June 30, 2025, the loss before tax was $38,534 thousand, compared to a loss of $28,420 thousand for the same period in 2024[14] - The net loss attributed to shareholders for the three months ended June 30, 2025, was $22,414,000, compared to a loss of $15,193,000 in 2024; for the six months, the loss was $39,799,000, up from $28,897,000[46] Assets and Liabilities - Total assets as of June 30, 2025, amounted to $177.6 million, an increase from $155.3 million at the end of 2024, representing a 14% growth[9] - Cash and cash equivalents increased to $94.8 million from $80.2 million, marking an 18% rise[9] - Total liabilities rose to $100.9 million as of June 30, 2025, compared to $58.8 million at the end of 2024, reflecting a 71% increase[9] - The accumulated deficit increased to $480.1 million as of June 30, 2025, from $440.3 million at the end of 2024[9] Cash Flow - Cash used in operating activities for the six months ended June 30, 2025, was $18,818 thousand, an improvement from $25,044 thousand in the prior year[14] - The net cash flow provided by financing activities for the six months ended June 30, 2025, was $32,549 thousand, compared to $12,179 thousand in 2024[14] - As of June 30, 2025, cash and cash equivalents totaled $94,822 thousand, down from $105,396 thousand at the end of the previous year[14] Shareholder Information - As of June 30, 2025, the Company had issued 79,321,220 shares, with 67,579,560 outstanding and 11,741,660 held as treasury shares, compared to 76,898,164 issued shares and 66,208,534 outstanding shares as of June 30, 2024[36] Accounting and Policy Changes - The company has made a change in accounting policy effective January 1, 2025, reclassifying interest paid and received to better reflect cash flows related to borrowings and investments[25] - The total cash flow used in operating activities increased by $1.2 million for the six months ended June 30, 2024, due to the accounting policy change[29] - The company is currently evaluating the impact of IFRS 18, effective January 1, 2027, which may affect the presentation of financial statements[31] Lease and Financing Activities - The Company entered into a 73-month lease for office space in Boston, Massachusetts, with a right-of-use asset recorded at $2.0 million and a lease liability of $1.9 million[47] - On June 25, 2025, the Company drew down $35.0 million from the second tranche of term loans under the Perceptive Credit Agreement, which allows borrowing up to $50.0 million[48][50] - The Company remains in full compliance with all covenants in the Perceptive Credit Agreement as of June 30, 2025[48] Compensation and Expenses - Share-based compensation of $8,191 thousand for the six months ended June 30, 2025, compared to $7,797 thousand in 2024[14] - Key management personnel compensation for the six months ended June 30, 2025, was $9.205 million, an increase from $7.135 million in 2024[64] - Share-based compensation expense totaled $4.356 million for the three months ended June 30, 2025, compared to $4.083 million for the same period in 2024[61] Subsequent Events - There were no material subsequent events reported after the reporting date[65]

Group 1 - SOPHiA GENETICS will release its financial results for Q2 2025 on August 5, 2025, before U.S. markets open [1] - A conference call to discuss the financial results and business outlook will take place at 8:00 a.m. EDT [1] - The call will be webcast live on the SOPHiA GENETICS Investor Relations Website, with a replay available afterward [2] Group 2 - SOPHiA GENETICS is a cloud-native software company focused on data-driven medicine, particularly in cancer and rare disorders [3] - The company developed the SOPHiA DDM™ Platform, which analyzes complex multimodal data to provide actionable insights [3] - SOPHiA GENETICS aims to expand access to data-driven medicine globally through the use of AI [3]

Summary of Sofia Genetics Conference Call Company Overview - **Company**: Sofia Genetics - **Event**: RBC Capital Markets Global Healthcare Conference 2025 - **Key Speakers**: CFO George Cardoza, Head of Strategy Kellen Sanger Financial Performance - **Q1 Gross Margin**: Achieved nearly 76%, with expectations for continued year-over-year expansion despite some one-off items affecting this figure [3][4] - **EBITDA Conversion**: The company aims to convert over 60% of incremental revenue to EBITDA, with recent performance exceeding this target [3] Revenue Growth Strategy - **Customer Acquisition**: Added 92 new customers in the past year, with 28 in Q1 alone, focusing on a "land and expand" strategy [6][7] - **Customer Utilization**: Average customer uses 2.6 applications, with efforts to increase routine usage among new customers [8][9] - **Geographic Focus**: Significant growth in the U.S. market, with a reported 30% growth rate, while European growth is expected to be slower [10][17] Market Dynamics - **Liquid Biopsy Testing**: The company has established a strong presence in liquid biopsy testing, collaborating with institutions like Memorial Sloan Kettering [20][21] - **Regulatory Environment**: Recent clarity on LDT regulations has positively impacted customer adoption rates [23][24] Long-Term Growth Projections - **Growth Targets**: The company expects to achieve over 20% growth by the end of the year, with historical CAGR of 23% as a benchmark [25][17] - **Pharma Business Outlook**: Anticipated recovery in the pharma sector, which faced challenges in the previous year, is expected to contribute to growth in 2026 and 2027 [17][30] Data and Technology - **Patient Sample Data**: Over 2 million patient samples collected, which is seen as a valuable asset, especially with advancements in AI technology [26][29] - **Data Ownership**: Hospitals retain ownership of patient data, while Sofia Genetics processes the data for insights [55][56] Path to Profitability - **EBITDA Guidance**: The company aims for adjusted EBITDA profitability by 2027, with a significant reduction in losses expected by the end of 2026 [59][60] Additional Insights - **Market Positioning**: Sofia Genetics is well-positioned to capitalize on increasing demand for sophisticated sequencing and liquid biopsy applications [13][14] - **Customer Economics**: The pricing model for liquid biopsy tests is higher than traditional offerings, providing hospitals with a new revenue stream [45][48] This summary encapsulates the key points discussed during the conference call, highlighting Sofia Genetics' financial performance, growth strategies, market dynamics, and future outlook.

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $17.8 million, up from $15.8 million in Q1 2024, representing a year-over-year growth of 13% [31] - On a constant currency basis, revenue growth was 15%, with foreign exchange headwinds negatively impacting reported revenue by approximately $0.4 million [31] - Adjusted EBITDA loss improved by 24% year-over-year to $9.8 million in Q1 2025 [35] - Adjusted gross margin reached a record high of 75.7%, up from 70.6% in Q1 2024 [33] Business Line Data and Key Metrics Changes - Core genomic customers increased to 490 as of March 31, 2025, up from 463 in the prior year [31] - The company implemented 33 new customers in Q1 2025, compared to an average of 23 per quarter in 2024 [8][47] - Hematology-oncology (HemOnc) volumes grew 34% year-over-year in Q1 2025, with over 180 HemOnc customers globally [20] Market Data and Key Metrics Changes - Revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year [9] - UK analysis volume grew over 60% year-over-year, with UK revenue up approximately 80% [19] - In Asia Pacific, North America and Asia Pacific outperformed with 3240% year-over-year volume growth [18] Company Strategy and Development Direction - The company aims to capitalize on new customer signings by expediting implementation times and expanding across those accounts [8] - Focus areas for growth in 2025 include the U.S. market, new applications like MSK Access and MSK Impact, and partnerships with biopharma [10][11] - The company is positioned to leverage its scalable cloud-based platform to support medical innovations and expand its offerings in liquid biopsy and solid tumor applications [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, citing a strong start to 2025 and a solid pipeline of new business [43] - The company reaffirmed its full-year revenue guidance for 2025 of $70 million to $76 million, representing 10% to 17% growth [37] - Management noted that while Q1 results were strong, they expect the year to be back half weighted due to new business coming online [37][93] Other Important Information - The company finished Q1 2025 with cash and cash equivalents of approximately $68.5 million, with access to an additional $35 million through a financing line [36][88] - Total cash burn improved to $11.7 million in Q1 2025, down from $19.5 million in the prior year [36] Q&A Session Summary Question: Actions taken to accelerate implementation times - Management highlighted that they implemented 33 new customers in Q1 2025, up from an average of 23 in 2024, due to scaling up team capabilities and creating tooling and automation to speed up processes [47][49] Question: Average contract value increase and enterprise sales - Management confirmed that 58% of customers are using two or more applications, indicating room for expansion. The increase in average contract value is attributed to more complex solutions and enterprise-level sales [53][55] Question: Sustainability of gross margins above 75% - Management acknowledged that while Q1 gross margins were higher than expected due to a favorable mix, they anticipate continued year-over-year improvement but not at the same level in subsequent quarters [62][63] Question: Biopharma side opportunities and guidance - Management indicated that while they expect the biopharma segment to be flat in 2025, they are seeing good momentum and opportunities in the pipeline, particularly in companion diagnostics [68] Question: Impact of macro environment on capital investments - Management noted that while there is a trend of constraints on capital investments, their model operates on an OpEx basis, which may present opportunities for growth as labs seek to avoid large capital expenditures [71][73]

Company Performance - SOPHiA GENETICS reported a quarterly loss of $0.26 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, representing an earnings surprise of -23.81% [1] - The company posted revenues of $17.78 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 7.30% and showing an increase from $15.78 million in the same quarter last year [2] - Over the last four quarters, SOPHiA GENETICS has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Market Outlook - SOPHiA GENETICS shares have increased by approximately 2.3% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.20 on revenues of $17.85 million, and for the current fiscal year, it is -$0.80 on revenues of $74.18 million [7] Industry Context - The Medical Info Systems industry, to which SOPHiA GENETICS belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for SOPHiA GENETICS is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $17.8 million, up from $15.8 million in Q1 2024, representing a year-over-year growth of 13% [32] - On a constant currency basis, revenue growth was 15%, with foreign exchange headwinds negatively impacting reported revenue by approximately $0.4 million [32] - Adjusted EBITDA loss improved by 24% year-over-year, reaching $9.8 million in Q1 2025 compared to $12.9 million in Q1 2024 [36] - Adjusted gross margin reached a record high of 75.7%, up from 70.6% in the prior year [34] Business Line Data and Key Metrics Changes - Core genomic customers increased to 490 as of March 31, 2025, up from 463 in the prior year [32] - The company implemented 33 new customers in Q1 2025, compared to an average of 23 per quarter in 2024 [8][32] - Hematology-oncology (HemOnc) volumes grew 34% year-over-year in Q1 2025, with over 180 HemOnc customers globally [21] Market Data and Key Metrics Changes - Revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year [9] - UK analysis volume grew over 60% year-over-year, with UK revenue up approximately 80% [20] - North America and Asia Pacific outperformed with 3240% year-over-year volume growth respectively [19] Company Strategy and Development Direction - The company aims to capitalize on new customer signings by expediting implementation times and expanding across those accounts over time [8] - Focus areas for growth in 2025 include the U.S. market, new applications like MSK Access and MSK Impact, and partnerships with biopharma [9][11] - The company is positioned to leverage its scalable cloud-based platform to support medical innovations and drive future growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, citing the increasing demand for data-driven medicine and the company's unique AI capabilities [44] - The company reaffirmed its full-year revenue guidance for 2025 of $70 million to $76 million, representing 10% to 17% growth [38] - Management noted that while Q1 results were strong, they expect the year to be back-half weighted due to the timing of new business coming online [38][94] Other Important Information - The company finished Q1 2025 with approximately $68.5 million in cash and cash equivalents, plus access to an additional $35 million in capital [37] - The company is focused on maintaining operational efficiencies while continuing to invest in high ROI projects [36] Q&A Session Summary Question: Actions taken to accelerate implementation times - Management highlighted that they have scaled up team capabilities, created tooling and automation, and increased headcount in wet lab and field application scientists to speed up the implementation process [48][50] Question: Average contract value increase and enterprise sales - Management confirmed that 58% of customers are using two or more applications, indicating room for expansion. They noted that enterprise sales involve signing for a majority of applications, which is driving the increase in average contract value [55][56] Question: Sustainability of gross margins above 75% - Management acknowledged that while Q1 gross margins were higher than expected due to a favorable mix, they still anticipate year-over-year improvements in gross margins moving forward [66] Question: Biopharma side opportunities and guidance - Management indicated that while they expect the biopharma segment to be flat in 2025, they are seeing good momentum and opportunities in the pipeline, particularly in companion diagnostics and sponsored testing [70] Question: Balance sheet sufficiency for adjusted EBITDA breakeven target - Management confirmed that with over $100 million in available liquidity, they are well-positioned to reach their adjusted EBITDA breakeven target by 2027 [90]