SOPHiA GENETICS (NASDAQ:SOPH) Issues Quarterly Earnings Results, Misses Estimates 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 for the quarter, compared to the consensus estimate 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 Down 2.8%

Shares of NASDAQ:SOPH opened at $6.91 on Wednesday. SOPHiA GENETICS has a 52-week low of $3.83 and a 52-week high of $8.98. The stock has a market cap of $579.68 million, a P/E ratio of -6.01 and a beta of 1.09. The business’s 50 day moving average is $7.81 and its 200 day moving average is $5.97. The company has a quick ratio of 2.55, a current ratio of 2.69 and a debt-to-equity ratio of 0.58.

Trending Headlines about SOPHiA GENETICS

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

• Positive Sentiment: Third-quarter revenue rose 25% year over year to $24.3 million, slightly ahead of analyst estimates. The company expects full-year 2026 revenue to land at the upper end of its $94 million–$96 million guidance range. SOPHiA GENETICS Reports Third Quarter 2026 Results
• Positive Sentiment: Adjusted EBITDA loss narrowed 31% year over year to $6.1 million, suggesting improvement in operating performance. SOPHiA GENETICS Reports Third Quarter 2026 Results
• Neutral Sentiment: Gross margin was 65.7% on a reported basis, compared with 66.3% a year earlier; adjusted gross margin was also slightly lower year over year. SOPHiA GENETICS Reports Third Quarter 2026 Results
• Negative Sentiment: The company’s $0.24-per-share loss was wider than the $0.20 analyst consensus, while net loss increased 1% year over year to $20.3 million. SOPHiA GENETICS Q3 earnings results
• Negative Sentiment: Management said foreign-exchange movements could be a headwind to fourth-quarter revenue if current rates persist, tempering the positive full-year outlook. SOPHiA GENETICS Reports Third Quarter 2026 Results

Wall Street Analyst Weigh In

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

Insider Transactions at SOPHiA GENETICS

In other news, CEO Ross Muken sold 9,838 shares of the firm’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $8.13, for a total transaction of $79,982.94. Following the transaction, the chief executive officer owned 660,391 shares in the company, valued at approximately $5,368,978.83. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 Philippe Menu sold 7,394 shares of SOPHiA GENETICS 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 owned 200,993 shares of the company’s stock, valued at $1,634,073.09. The trade was 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. Over the last 90 days, insiders have sold 212,662 shares of company stock valued at $1,679,149. Company 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.