Sophia Genetics(US:SOPH)2025-11-04 11:24Revenue and Profit - Revenue for Q3 2025 was $19,462 thousand, a 22% increase from $15,853 thousand in Q3 2024[5] - Gross profit for Q3 2025 reached $12,907 thousand, up from $10,654 thousand in Q3 2024, reflecting a 21% growth[5] - The revenue from the SOPHiA DDM Platform for the three months ended September 30, 2025, was $18.667 million, up from $15.584 million in 2024, representing a growth of 19%[45] Losses and Financial Position - Operating loss for the nine months ended September 30, 2025, was $52,390 thousand, compared to $49,124 thousand for the same period in 2024, indicating a 5% increase in losses[5] - Total comprehensive loss for Q3 2025 was $20,235 thousand, compared to $11,621 thousand in Q3 2024, representing a 74% increase in losses[7] - The accumulated deficit as of September 30, 2025, was $500,097 thousand, up from $440,277 thousand at the end of 2024, indicating a worsening financial position[10] - For the nine months ended September 30, 2025, the loss before tax was $57,913 thousand, compared to a loss of $46,728 thousand for the same period in 2024[13] - The net loss attributed to shareholders for the three months ended September 30, 2025, was $20.021 million, compared to a loss of $18.438 million in 2024[47] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $81,610 thousand, slightly up from $80,226 thousand at the end of 2024[9] - Cash used in operating activities for the nine months ended September 30, 2025, was $27,757 thousand, a decrease from $33,829 thousand in the prior year[13] - The net cash flow provided by financing activities for the nine months ended September 30, 2025, was $30,562 thousand, compared to $11,025 thousand in 2024[13] - As of September 30, 2025, cash and cash equivalents were $81,610 thousand, down from $95,787 thousand at the end of the previous year[13] Assets and Liabilities - Total assets increased to $163,458 thousand as of September 30, 2025, from $155,309 thousand at the end of 2024, marking a 5% growth[9] - Total liabilities rose to $102,771 thousand as of September 30, 2025, compared to $58,819 thousand at the end of 2024, reflecting a significant increase of 74%[9] Expenses - Research and development costs for Q3 2025 were $8,067 thousand, slightly higher than $7,874 thousand in Q3 2024[5] - Selling and marketing costs increased to $8,670 thousand in Q3 2025 from $7,306 thousand in Q3 2024, a rise of 18.7%[5] - The company reported share-based compensation of $12,337 thousand for the nine months ended September 30, 2025, compared to $11,410 thousand in the prior year[13] - The total interest expense recorded for the nine months ended September 30, 2025, was $2.486 million[60] - The Company reported share-based compensation expenses totaling $4.146 million for the three months ended September 30, 2025, compared to $3.613 million for the same period in 2024[62] Financing Activities - The Company drew down $35.0 million from the second tranche of term loans on June 25, 2025, under the Perceptive Credit Agreement[51] - The Company accounted for Tranche B of the term loans and warrants as two separate financial instruments, with a total drawdown of $35.0 million[52] - The Tranche A loan was recorded at an initial amortized cost of $13.3 million, while Tranche B was recorded at an initial amortized cost of $34.1 million[59] - The effective interest rate (EIR) for Tranche B was determined to be 12.4% upon initial drawdown[56] - The fair value of the Tranche A warrant obligation was initially measured at $0.7 million, and for Tranche B at $0.5 million[57] - As of September 30, 2025, the Company had no borrowings outstanding under the new credit facility with Credit Suisse SA[61] Other Financial Information - The Company signed a stock purchase agreement to acquire a minority equity interest in A.D.A.M. Innovations for a total of $2.0 million, with $0.5 million acquired in September 2025 and $1.5 million in October 2025[41] - The Company completed its purchase of shares in A.D.A.M. Innovations for $1.5 million in October 2025[66] - 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[48] - The Company’s accounts receivable as of September 30, 2025, amounted to $8.455 million, an increase from $7.436 million as of December 31, 2024[46] - The allowance for expected credit losses decreased to $345,000 as of September 30, 2025, from $394,000 as of December 31, 2024[46] - The Company’s largest customer represented 9% of accounts receivable as of September 30, 2025, down from 18% as of December 31, 2024[46] - Key management personnel compensation for the nine months ended September 30, 2025, totaled $11.103 million, compared to $13.788 million for the same period in 2024[65] Accounting Changes - The company reclassified interest paid from operating activities to financing activities, and interest received from operating activities to investing activities effective January 1, 2025[24] - The company is currently evaluating the impact of IFRS 18, effective January 1, 2027, on its financial statements[30]