SOPHiA GENETICS Reports First Quarter 2025 Results
First Quarter 2025 Financial Results
- Revenue was
$17.8 million , up 13% year-over-year or 15% on a constant currency basis - Gross margin was 68.7% on a reported basis and 75.7% on an adjusted basis, up from 65.9% and 70.5% in the prior year period, respectively
- IFRS net loss increased 27% year-over-year to
$17.4 million (including a net foreign exchange P&L impact of$5.2 million ), and adjusted EBITDA loss improved 24% year-over-year to$9.8 million - The company reiterates full-year guidance of revenue between
$72 million and$76 million and adjusted EBITDA loss between$35 million and$39 million
"We started the year strong with year-over-year revenue growth of 13%, or 15% on a constant currency basis, as the large amount of new business signed in 2024 begins to ramp," said Jurgi Camblong, PhD., Chief Executive Officer and Co-founder. "In addition to reaccelerating topline growth, we also continued to optimize SOPHiA DDM™'s data processing capabilities and delivered a record adjusted gross margin of 75.7%, up 520bps year-over-year. Prudent cost management across all spending categories resulted in a 24% year-over-year improvement to adjusted EBITDA loss during the period, demonstrating steady progress on our path to profitability."
Camblong added, "Looking ahead, we remain confident in our long-term growth and in the growth prospects of our end markets. New business momentum remains strong, driven by notable catalysts such as the new Liquid Biopsy application MSK-ACCESS® powered with SOPHiA DDM™, a relatively underpenetrated U.S. market where revenue from core genomics customers grew over 30%, and a large base of new customers to onboard and expand over the remainder of 2025."
First Quarter 2025 Business Highlights
Expanding usage of SOPHiA DDM™ worldwide
- Performed 93,000 analyses on SOPHiA DDM™, representing 11% year-over-year volume growth
- Reached 490 core genomics customers as of
March 31, 2025 , up from 463 customers at the end of Q1 2024 - Completed implementation for 33 new core genomics customers during Q1 2025, up from an average of 23 customers implemented per quarter in 2024
- Delivered strong analysis volume growth in NORAM and APAC with 32% and 40% year-over-year growth, respectively
- Hit a major Platform milestone during Q1, passing 2 million cumulative genomic profiles analyzed by SOPHiA DDM™ since inception
Landing new customers to fuel future platform growth
- Landed 28 new core genomics customers in Q1 2025 who will implement SOPHiA DDM™ and begin generating revenue over the next twelve months, up from 20 new customers signed in Q1 2024
- Signed major new customers across geographies including
Jessa Ziekenhuis inBelgium who is adopting SOPHiA DDM™ for Solid Tumor, Liquid Biopsy, and HemOnc testing;LifeLabs , a central reference lab inCanada , who is adopting Solid Tumor applications; andPremier Integrated Labs inMalaysia who is adopting numerous applications in Hereditary Cancer, HemOnc, and Inherited Disorders, in addition to MSK-ACCESS® powered with SOPHiA DDM™
Building strong new business momentum with new applications
- Expanded the
October 2024 collaboration with AstraZeneca to accelerate the deployment of MSK-ACCESS® powered with SOPHiA DDM™ globally, extending the scope to 30 total sponsored institutions worldwide - Recently signed new customers to the Liquid Biopsy application MSK-ACCESS® powered with SOPHiA DDM™, including
Kuwait Cancer Control Center ; Centre Hospitalier Régional Universitaire de Nancy in Nancy,France ; and Hospital de Amor inBarretos, Brazil - Continued to drive significant demand for MSK-ACCESS® and MSK-IMPACT® powered with SOPHiA DDM™, with a healthy and growing pipeline of more than 60 identified opportunities
Continued driving strong business growth in the U.S. market
- Delivered over 30% year-over-year revenue growth from
U.S. core genomics customers in Q1 - Expanded our partnerships with two top-ranked
U.S. hospitals, includingHenry Ford Hospital who is adopting additional Solid Tumor and HemOnc applications on SOPHiA DDM™ and theMayo Clinic who is adopting HemOnc applications - Signed
Mount Sinai during Q1, one of the leading hospital systems in the world based inNew York City , who is adopting HemOnc and Solid Tumor applications
Growing sustainably by maintaining an obsession with operational excellence
- Achieved a record 75.7% adjusted gross margin, up 520bps year-over-year, by continuing to optimize compute costs and leverage the scale of the cloud-native SOPHiA DDM™ platform
- Remained laser-focused on operational excellence and cost containment and improved adjusted EBITDA loss by 24% year-over-year to
$9.8 million - The Company reaffirms commitment to profitable growth and expects to be approaching adjusted EBITDA breakeven by the end of 2026 and crossing over to positive adjusted EBITDA in the second half of 2027
2025 Financial Outlook
Based on information as of today,
- Full-year revenue between
$72 million and$76 million , representing growth of approximately 10% to 17% compared to FY 2024 - Adjusted EBITDA loss between
$35 million and$39 million , compared to$40.2 million in FY 2024
Non-IFRS Financial Measures
Other than with respect to revenue, the Company only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted gross margin (non-IFRS measure) to gross margin (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying amortization of capitalized research & development expenses that are necessary for such reconciliation. In addition, the Company does not provide a reconciliation of forward-looking adjusted operating loss (non-IFRS measure) to operating loss (the most comparable IFRS financial measure), due to the inherent difficulty in forecasting and quantifying amortization of capitalized research & development expenses and intangible assets, share-based compensation expenses, and non-cash portion of pensions paid in excess of actual contributions, that are necessary for such reconciliation.
To provide investors with additional information regarding the company's financial results,
- Adjusted gross profit, which the company calculates as revenue minus cost of revenue adjusted to exclude amortization of capitalized research and development expenses;
- Adjusted gross profit margin, which the company calculates as adjusted gross profit as a percentage of revenue;
- Adjusted operating loss, which the company calculates as operating loss adjusted to exclude amortization of capitalized research and development expenses, amortization of intangible assets, share-based compensation expense, and non-cash portion of pensions expense paid in excess of actual contributions to match the actuarial expense.
- EBITDA, which the company calculates as loss for the year before depreciation, amortization, interest income, interest expense, fair value adjustments on warrant obligations, foreign exchange (losses) gains, net, and income tax (expense) benefit; and
- Adjusted EBITDA, which the company calculates as EBITDA adjusted to exclude share-based compensation expense, non-cash pension expenses, and costs associated with restructuring.
These non-IFRS measures are key measures used by
These non-IFRS measures have limitations as financial measures, and you should not consider them in isolation or as a substitute for analysis of
- These non-IFRS measures exclude the impact of depreciation. Although depreciation is a non-cash charge, the assets being depreciated may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures;
- These non-IFRS measures exclude the impact of interest expense. Interest expense will continue to be for the foreseeable future a recurring expense based on the company's financial liabilities;
- These non-IFRS measures exclude the impact of interest income. Interest income will continue to be for the foreseeable future recurring income based on the company's financial assets;
- These non-IFRS measures exclude the impact of income taxes. Income taxes will continue to be for the foreseeable future a recurring expense incurred in the various jurisdictions in which the company operates;
- These non-IFRS measures exclude the impact of foreign exchange gains (losses),net. Foreign exchange gains and losses will continue to be for the foreseeable future a recurring expense incurred as the company participates in transactions outside of the company's functional currency;
- These non-IFRS measures exclude the impact of fair value adjustments of warrant obligations. Fair value adjustments on warrant obligations will continue to be for the foreseeable future a recurring expense incurred as the company has outstanding warrant obligations;
- These non-IFRS measures exclude the impact of amortization of capitalized research and development expenses and intangible assets. Although amortization is a non-cash charge, the assets being amortized may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures;
- These non-IFRS measures exclude the impact of share-based compensation expenses. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in the company's business and an important part of its compensation strategy;
- These non-IFRS measures exclude the impact of the non-cash portion of pensions paid in excess of actual contributions to match actuarial expenses. Pension expenses have been, and will continue to be for the foreseeable future, a recurring expense in the business; and
- Other companies, including companies in the company's industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures.
Because of these limitations, you should consider these non-IFRS measures alongside other financial performance measures, including various cash flow metrics, net income and other IFRS results.
The tables below provide the reconciliation of the most comparable IFRS measures to the non-IFRS measures for the periods presented.
Presentation of Constant Currency Revenue
The company's management and board of directors use constant currency revenue growth to evaluate growth and generate future operating plans. The exclusion of the impact of exchange rate fluctuations provides comparability across reporting periods and reflects the effects of customer acquisition efforts and land-and-expand strategy. Accordingly, it believes that this non-IFRS measure provides useful information to investors and others in understanding and evaluating revenue growth in the same manner as the management and board of directors. However, this non-IFRS measure has limitations, particularly as the exchange rate effects that are eliminated could constitute a significant element of its revenue and could significantly impact performance and prospects. Because of these limitations, you should consider this non-IFRS measure alongside other financial performance measures, including revenue and revenue growth presented in accordance with IFRS and other IFRS results.
The table below provides the reconciliation of the most comparable IFRS growth measures to the non-IFRS growth measures for the current period.
Earnings Call and Webcast Information
About
Forward-Looking Statements
This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding
|
Interim Condensed Consolidated Statements of Loss (Amounts in USD thousands, except per share data) (Unaudited) |
||||
|
|
||||
|
|
|
Three months ended |
||
|
|
|
2025 |
|
2024 |
|
Revenue |
|
$ 17,779 |
|
$ 15,779 |
|
Cost of revenue |
|
(5,571) |
|
(5,374) |
|
Gross profit |
|
12,208 |
|
10,405 |
|
Research and development costs |
|
(9,118) |
|
(9,391) |
|
Selling and marketing costs |
|
(7,534) |
|
(6,951) |
|
General and administrative costs |
|
(11,600) |
|
(12,825) |
|
Other operating income, net |
|
8 |
|
6 |
|
Operating loss |
|
(16,036) |
|
(18,756) |
|
Interest income |
|
450 |
|
901 |
|
Interest expense |
|
(659) |
|
(143) |
|
Fair value adjustments on warrant obligations |
|
(38) |
|
— |
|
Foreign exchange (losses) gains, net |
|
(599) |
|
4,610 |
|
Loss before income taxes |
|
(16,882) |
|
(13,388) |
|
Income tax expense |
|
(503) |
|
(316) |
|
Loss for the period |
|
(17,385) |
|
(13,704) |
|
Attributable to the owners of the parent |
|
(17,385) |
|
(13,704) |
|
|
|
|
|
|
|
Basic and diluted loss per share |
|
$ (0.26) |
|
$ (0.21) |
|
Interim Condensed Consolidated Statements of Comprehensive Loss (Amounts in USD thousands) (Unaudited) |
||||
|
|
||||
|
|
|
Three months ended |
||
|
|
|
2025 |
|
2024 |
|
Loss for the period |
|
$ (17,385) |
|
$ (13,704) |
|
Other comprehensive (loss) income: |
|
|
|
|
|
Items that may be reclassified to statement of loss |
|
|
|
|
|
Currency translation adjustments |
|
2,586 |
|
(9,393) |
|
Total items that may be reclassified to statement of loss |
|
2,586 |
|
(9,393) |
|
Items that will not be reclassified to statement of loss (net of tax) |
|
|
|
|
|
Remeasurement of defined benefit plans |
|
47 |
|
(15) |
|
Total items that will not be reclassified to statement of loss |
|
47 |
|
(15) |
|
Other comprehensive (loss) income for the period |
|
$ 2,633 |
|
$ (9,408) |
|
Total comprehensive loss for the period |
|
$ (14,752) |
|
$ (23,112) |
|
Attributable to owners of the parent |
|
$ (14,752) |
|
$ (23,112) |
|
Interim Condensed Consolidated Balance Sheets (Amounts in USD thousands) (Unaudited) |
||||
|
|
||||
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ 68,528 |
|
$ 80,226 |
|
Accounts receivable |
|
10,695 |
|
7,436 |
|
Inventory |
|
5,050 |
|
5,868 |
|
Prepaids and other current assets |
|
5,778 |
|
5,875 |
|
Total current assets |
|
90,051 |
|
99,405 |
|
Non-current assets |
|
|
|
|
|
Property and equipment |
|
4,986 |
|
5,209 |
|
Intangible assets |
|
29,994 |
|
28,998 |
|
Right-of-use assets |
|
14,028 |
|
14,168 |
|
Deferred tax assets |
|
1,777 |
|
1,767 |
|
Other non-current assets |
|
5,883 |
|
5,762 |
|
Total non-current assets |
|
56,668 |
|
55,904 |
|
Total assets |
|
$ 146,719 |
|
$ 155,309 |
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
|
$ 4,606 |
|
$ 5,220 |
|
Accrued expenses |
|
11,730 |
|
13,217 |
|
Deferred contract revenue |
|
9,838 |
|
5,732 |
|
Lease liabilities, current portion |
|
2,288 |
|
2,190 |
|
Warrant obligations |
|
482 |
|
444 |
|
Total current liabilities |
|
28,944 |
|
26,803 |
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
|
13,317 |
|
13,237 |
|
Lease liabilities, net of current portion |
|
14,525 |
|
14,603 |
|
Defined benefit pension liabilities |
|
3,983 |
|
3,839 |
|
Other non-current liabilities |
|
337 |
|
337 |
|
Total non-current liabilities |
|
32,162 |
|
32,016 |
|
Total liabilities |
|
61,106 |
|
58,819 |
|
Equity |
|
|
|
|
|
Share capital |
|
4,188 |
|
4,188 |
|
Share premium |
|
472,283 |
|
472,244 |
|
|
|
(694) |
|
(702) |
|
Other reserves |
|
67,498 |
|
61,037 |
|
Accumulated deficit |
|
(457,662) |
|
(440,277) |
|
Total equity |
|
85,613 |
|
96,490 |
|
Total liabilities and equity |
|
$ 146,719 |
|
$ 155,309 |
|
Interim Condensed Consolidated Statements of Cash Flows (Amounts in USD thousands) (Unaudited) |
||||
|
|
||||
|
|
|
Three months ended |
||
|
|
|
2025 |
|
2024 |
|
|
|
|
|
(As Recast)1 |
|
Operating activities |
|
|
|
|
|
Loss before tax |
|
$ (16,882) |
|
$ (13,388) |
|
Adjustments for non-monetary items |
|
|
|
|
|
Depreciation |
|
985 |
|
1,158 |
|
Amortization |
|
1,312 |
|
901 |
|
Finance expense (income), net |
|
925 |
|
(5,046) |
|
Fair value adjustments on warrant obligations |
|
38 |
|
— |
|
Expected credit loss allowance |
|
(20) |
|
(48) |
|
Share-based compensation |
|
3,835 |
|
3,714 |
|
Movements in provisions and pensions |
|
57 |
|
(135) |
|
Research tax credit |
|
(172) |
|
(104) |
|
Working capital changes |
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
(2,961) |
|
2,168 |
|
Decrease (increase) in prepaids and other assets |
|
393 |
|
(182) |
|
Decrease in inventory |
|
972 |
|
376 |
|
Increase (decrease) in accounts payables, accrued expenses, |
|
813 |
|
(4,058) |
|
Cash used in operating activities |
|
(10,705) |
|
(14,644) |
|
Income tax paid |
|
(45) |
|
(1) |
|
Net cash flows used in operating activities |
|
(10,750) |
|
(14,645) |
|
Investing activities |
|
|
|
|
|
Purchase of property and equipment |
|
— |
|
(99) |
|
Acquisition of intangible assets |
|
(46) |
|
(50) |
|
Capitalized development costs |
|
(1,445) |
|
(1,809) |
|
Interest received |
|
452 |
|
953 |
|
Net cash flow used in investing activities |
|
(1,039) |
|
(1,005) |
|
Financing activities |
|
|
|
|
|
Proceeds from exercise of share options |
|
40 |
|
188 |
|
Interest paid |
|
(567) |
|
(147) |
|
Capitalized borrowing transaction costs |
|
— |
|
(49) |
|
Payments of principal portion of lease liabilities |
|
(463) |
|
(735) |
|
Net cash flow used in financing activities |
|
(990) |
|
(743) |
|
Decrease in cash and cash equivalents |
|
(12,779) |
|
(16,393) |
|
Effect of exchange differences on cash balances |
|
1,081 |
|
(3,123) |
|
Cash and cash equivalents at beginning of the year |
|
80,226 |
|
123,251 |
|
Cash and cash equivalents at end of the period |
|
$ 68,528 |
|
$ 103,735 |
|
1 Refer to "Note 1—Change in accounting policies—Statement of Cash Flows - Interest Classification" for details on change in accounting policy of exhibit 99.1 within of the Form 6-K filed on |
|
Reconciliation of IFRS Net Loss to EBITDA and Adjusted EBITDA (Amounts in USD thousands) (Unaudited) |
||||
|
|
||||
|
|
|
Three months ended |
||
|
|
|
2025 |
|
2024 |
|
Loss for the period |
|
$ (17,385) |
|
$ (13,704) |
|
Exclude the impact of: |
|
|
|
|
|
Depreciation |
|
$ 985 |
|
$ 1,158 |
|
Amortization |
|
1,312 |
|
901 |
|
Interest income |
|
(450) |
|
(901) |
|
Interest expense |
|
659 |
|
143 |
|
Fair value adjustments on warrant obligations |
|
38 |
|
— |
|
Foreign exchange gains (losses), net |
|
599 |
|
(4,610) |
|
Income tax expense |
|
503 |
|
316 |
|
EBITDA |
|
$ (13,739) |
|
$ (16,697) |
|
Adjustments to EBITDA: |
|
|
|
|
|
Share-based compensation expense(1) |
|
3,835 |
|
3,714 |
|
Non-cash pension expense(2) |
|
86 |
|
77 |
|
Adjusted EBITDA |
|
$ (9,818) |
|
$ (12,906) |
|
Reconciliation of IFRS Net Loss to EBITDA and Adjusted EBITDA for the fiscal year 2024 (Amounts in USD thousands) (Unaudited) |
||
|
|
||
|
|
|
Year ended |
|
|
|
|
|
Loss for the period |
|
$ (62,493) |
|
Exclude the impact of: |
|
|
|
Depreciation |
|
$ 4,575 |
|
Amortization |
|
4,021 |
|
Interest income |
|
(3,362) |
|
Interest expense |
|
1,913 |
|
Fair value adjustments on warrant obligations |
|
(370) |
|
Foreign exchange losses, net |
|
(3,479) |
|
Income tax expense |
|
1,223 |
|
EBITDA |
|
$ (57,972) |
|
Adjustments to EBITDA: |
|
|
|
Share-based compensation expense(1) |
|
16,488 |
|
Non-cash pension expense(2) |
|
1,306 |
|
Adjusted EBITDA |
|
$ (40,178) |
|
Reconciliation of IFRS Revenue Growth to Constant Currency Revenue Growth (Amounts in USD thousands, except for %) (Unaudited) |
||||||
|
|
||||||
|
|
|
Three months ended |
||||
|
|
|
2025 |
|
2024 |
|
Growth |
|
IFRS revenue |
|
$ 17,779 |
|
$ 15,779 |
|
13 % |
|
Current period constant currency impact |
|
418 |
|
— |
|
|
|
Constant currency revenue |
|
$ 18,197 |
|
$ 15,779 |
|
15 % |
|
Reconciliation of IFRS to Adjusted Gross Profit and Gross Profit Margin (Amounts in USD thousands, except percentages) (Unaudited) |
||||
|
|
||||
|
|
|
Three months ended |
||
|
|
|
2025 |
|
2024 |
|
Revenue |
|
$ 17,779 |
|
$ 15,779 |
|
Cost of revenue |
|
(5,571) |
|
(5,374) |
|
Gross profit |
|
$ 12,208 |
|
$ 10,405 |
|
Amortization of capitalized research and development expenses(3) |
|
1,241 |
|
727 |
|
Adjusted gross profit |
|
$ 13,449 |
|
$ 11,132 |
|
|
|
|
|
|
|
Gross profit margin |
|
68.7 % |
|
65.9 % |
|
Amortization of capitalized research and development expenses(3) |
|
7.0 % |
|
4.6 % |
|
Adjusted gross profit margin |
|
75.7 % |
|
70.5 % |
|
Reconciliation of IFRS to Adjusted Operating Loss for the Period (Amounts in USD thousands) (Unaudited) |
||||
|
|
||||
|
|
|
Three months ended |
||
|
|
|
2025 |
|
2024 |
|
Operating loss |
|
$ (16,036) |
|
$ (18,756) |
|
Amortization of capitalized research & development expenses(3) |
|
1,241 |
|
727 |
|
Amortization of intangible assets(4) |
|
71 |
|
174 |
|
Share-based compensation expense(1) |
|
3,835 |
|
3,714 |
|
Non-cash pension expense(2) |
|
86 |
|
77 |
|
Adjusted operating loss |
|
$ (10,803) |
|
$ (14,064) |
|
Notes to the Reconciliation of IFRS to Adjusted Financial Measures Tables |
|
|
|
|
|
(1) |
Share-based compensation expense represents the cost of equity awards issued to our directors, officers, and employees. The fair value of awards is computed at the time the award is granted and is recognized over the vesting period of the award by a charge to the income statement and a corresponding increase in other reserves within equity. These expenses do not have a cash impact but remain a recurring expense for our business and represent an important part of our overall compensation strategy. |
|
(2) |
Non-cash pension expense consists of the amount recognized in excess of actual contributions made to our defined pension plans to match actuarial expenses calculated for IFRS purposes. The difference represents a non-cash expense but remains a recurring expense for our business as we continue to make contributions to our plans for the foreseeable future. |
|
(3) |
Amortization of capitalized research and development expenses consists of software development costs amortized using the straight-line method over an estimated life of five years. These expenses do not have a cash impact but remain a recurring expense generated over the course of our research and development initiatives. |
|
(4) |
Amortization of intangible assets consists of costs related to intangible assets amortized over the course of their useful lives. These expenses do not have a cash impact, but we could continue to generate such expenses through future capital investments. |
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