SOPHiA GENETICS S.A. Q1 FY2026 earnings call

Yergi noted SOFIA had strong start in 2026 with 22% revenue growth, 108,000 genomic analyses, adjusted gross margin 75.4%. Strategic importance of precision medicine landscape, Sophia DDM's scalability. Ross discussed U.S. business gaining momentum, new applications growth, net dollar retention 117%, biopharma revenue growth. George detailed financial results and outlook.

In the first quarter, revenue grew 22% year-over-year to $21.7 million. Platform analysis volume was approximately 108,000. Adjusted gross margin was 75.4%. U.S. revenue grew 28% YOY, APAC 31%, EMEA 30%, Latin America soft. HEMOC revenue grew 24%, rare and inherited growth over 20%, liquid biopsy ramping. Core genomic customers were 537 as of March 31st, net dollar retention 117%.

Reaffirmed full-year revenue guidance for 2026 of $92 to $94 million (20-22% growth). Reaffirmed adjusted EBITDA loss guidance of 29 to 32 million. Expect gross margins to slightly expand. Monitoring Middle East conflict, no material impact yet. Confident in approaching adjusted EBITDA breakeven by end of 2026 and positive adjusted EBITDA in second half of 2027.

Foreign exchange headwinds due to Swiss franc strengthening. Patent infringement claims from Garden Health, incurred $1.4 million in legal expenses in Q1, but received $700,000 recovery. Macro uncertainties impacting exchange rates.

Q: Brent, degree of confidence to maintain gross margin profile?

A: Ross and George discussed platform modernization, mix of trade up to complex solutions and positive pricing dynamics.

Q: Cost reduction actions in April?

A: Small action in G&A functions, mostly Swiss operations, U.S. headcount redeployment modest.

Q: Net dollar retention drivers?

A: Mix of customers expanding to multiple applications and uptake of higher ASP tests.

Q: Latin America business soft?

A: Soft in Brazil, changed leadership, optimistic for Mexico, Colombia, and Argentina, pharma pipelines may drive growth.

Q: MSK Access onboarding time and ramp?

A: Varying degrees, half of 100 accounts online, ramping, expect more growth.

Q: ASP trend?

A: Expect lift as selling more higher value tests, Latin America and emerging markets balance but overall ASP to rise.

Q: Pharma business outlook?

A: Building momentum, more confident, but remain conservative in guidance.