SOPHiA GENETICS S.A. Q3 FY2025 earnings call

• Strong revenue growth: Revenue grew 23% YOY in Q3, with new customer signings at record levels and bookings exceeding expectations. • New customer signings: Signed 31 new customers in Q3, bringing total new customers in 2025 to 94, surpassing last year's total. • U.S. market growth: U.S. revenue grew 30% YOY, with new customers like Geisinger Health System, Baylor Scott & White Health, and Thermo Fisher Lights Labs. • MSK-ACCESS success: Over 60 liquid biopsy customers signed worldwide, partnership with AstraZeneca for global deployment, and collaboration with Myriad Genetics and A.D.A.M. Innovations for CDx. • Digital Twins launch: AI-powered SOPHiA DDM Digital Twins introduced, leveraging multimodal data for real-time decision support. • Gross margin: Adjusted gross margin held at 73.1% despite data processed growing over 40% YOY, driven by innovation in data compute and processing.

In Q3 2025, revenue grew 23% year-over-year to $19.5 million. U.S. revenue saw an impressive 30% YOY growth. EMEA had 24% revenue growth, and Asia Pacific analysis volume grew 35% YOY. The liquid biopsy application MSK-ACCESS contributed significantly, with over 2,000 analyses in the quarter. Revenue contribution from different segments: U.S. at 30% YOY growth, EMEA at 24% growth, Asia Pacific with 35% analysis volume growth, and liquid biopsy applications like MSK-ACCESS driving higher ASP.

• Raised 2025 revenue guidance to $75 million to $77 million, representing 15% to 18% growth. • Adjusted EBITDA loss guidance revised to $39 million to $41 million. • Expect operating leverage for future revenue growth, with targeted investments in platform optimization and cost control. • Confident in approaching adjusted EBITDA breakeven by end of 2026 and positive adjusted EBITDA in second half of 2027.

• Guardant Health lawsuit: Alleged patent infringement in MSK-ACCESS application, resulting in higher legal expenses. • Foreign exchange impacts: Adverse foreign exchange movements negatively impacted reported operating expenses, especially due to Swiss franc appreciation. • Swiss social charges: Share price depreciation led to higher Swiss social charges on share-based compensation. • Cash burn: Total cash burn increased 36.5% YOY in Q3 2025 due to various factors including investments and increased borrowings.

Q: What is the reason for the expected deceleration in growth next quarter?

A: Jurgi Camblong stated that guidance has been conservative, but the business has fantastic momentum, and they don't see a change in key drivers, but prudence led to guidance adjustment.

Q: How many MSK-ACCESS customers are generating revenue and what's the pipeline?

A: Ross Muken said about 20% of 60 signed MSK-ACCESS customers have started routine, with large accounts coming online in fourth quarter and into next year, and strong demand in pipeline.

Q: Outlook for biopharma R&D spending and funding in 2026?

A: Ross Muken mentioned favorable positioning in pharma pipelines, unique capabilities in algorithm development and data sets, and healthy pipeline with many top pharma names engaged.

Q: Impact of macro environment on customer onboarding setup times?

A: Ross Muken said pipeline remains robust, bookings are good, and implementation on dollar basis continues to accelerate with no impact from U.S. government shutdown so far.

Q: Benefit from AstraZeneca in Q3 and biopharma strength excluding AstraZeneca?

A: George Cardoza said small pharma revenue in Q3, but expecting milestones in fourth quarter, and Ross Muken said pipeline has expanded with other significant deals outside AstraZeneca.

Q: Timing of companion diagnostics with Myriad Genetics and A.D.A.M. Innovations?

A: Jurgi Camblong and Ross Muken said regulatory frameworks vary, but partnerships are progressing, with multiyear potential and existing engagements.

Q: Customer implementation and backlog for 2026?

A: Ross Muken said backlog is at highest levels, with significant customers coming online, and confident in contribution to 2026 growth rate and beyond.