SOPH 6-K
SOPHiA GENETICS SA (SOPH)
6-K
2025-11-04
For: 2025-09-30
View Original
Added on
April 10, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2025.
____________________________________
Commission File Number: 001-40627
SOPHiA GENETICS SA
(Exact name of registrant as specified in its charter)
La Pièce 12
CH-1180 Rolle
Switzerland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | x | Form 40-F | |||||||||||||||
SIGNATURE
This Report on Form 6-K (other than Exhibit 99.3 hereto), including Exhibits 99.1 and 99.2 hereto, shall be deemed to be incorporated by reference into the registration statements on Form F-3 (Registration No. 333-289266; Registration No. 333-289270) of SOPHiA GENETICS SA and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SOPHiA GENETICS SA | |||||||||||
| Date: | November 4, 2025 | ||||||||||
| By: | /s/ Daan van Well | ||||||||||
| Name: | Daan van Well | ||||||||||
| Title: | Chief Legal and Regulatory Officer | ||||||||||
EXHIBIT INDEX
| Exhibit No. | Description | ||||
Exhibit 99.1
Index to Consolidated Financial Statements
Table of Contents
F-1
SOPHiA GENETICS SA
Unaudited Interim Condensed Consolidated Financial Statements
F-2
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Loss
(Amounts in USD thousands, except per share data)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
| Notes | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Revenue | 5 | $ | 19,462 | $ | 15,853 | $ | 55,564 | $ | 47,440 | |||||||||||||||||||||||
| Cost of revenue | (6,555) | (5,199) | (18,179) | (15,605) | ||||||||||||||||||||||||||||
| Gross profit | 12,907 | 10,654 | 37,385 | 31,835 | ||||||||||||||||||||||||||||
| Research and development costs | (8,067) | (7,874) | (25,678) | (25,223) | ||||||||||||||||||||||||||||
| Selling and marketing costs | (8,670) | (7,306) | (26,238) | (21,515) | ||||||||||||||||||||||||||||
| General and administrative costs | (13,889) | (10,880) | (37,790) | (34,288) | ||||||||||||||||||||||||||||
| Other operating (loss) income, net | (143) | 43 | (69) | 67 | ||||||||||||||||||||||||||||
| Operating loss | (17,862) | (15,363) | (52,390) | (49,124) | ||||||||||||||||||||||||||||
| Interest income | 622 | 855 | 1,491 | 2,707 | ||||||||||||||||||||||||||||
| Interest expense | (1,663) | (588) | (2,881) | (1,232) | ||||||||||||||||||||||||||||
| Fair value adjustments on warrant obligations | 9 | (607) | 182 | (587) | 266 | |||||||||||||||||||||||||||
| Foreign exchange (losses) gains, net | 131 | (3,394) | (3,546) | 655 | ||||||||||||||||||||||||||||
| Loss before income taxes | (19,379) | (18,308) | (57,913) | (46,728) | ||||||||||||||||||||||||||||
| Income tax expense | (642) | (130) | (1,907) | (607) | ||||||||||||||||||||||||||||
| Loss for the period | (20,021) | (18,438) | (59,820) | (47,335) | ||||||||||||||||||||||||||||
| Attributable to the owners of the parent | (20,021) | (18,438) | (59,820) | (47,335) | ||||||||||||||||||||||||||||
| Basic and diluted loss per share | 7 | $ | (0.30) | $ | (0.28) | $ | (0.89) | $ | (0.72) | |||||||||||||||||||||||
F-3
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Comprehensive Loss
(Amounts in USD thousands)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Loss for the period | $ | (20,021) | $ | (18,438) | $ | (59,820) | $ | (47,335) | ||||||||||||||||||
| Other comprehensive (loss) income: | ||||||||||||||||||||||||||
| Items that may be reclassified to statement of loss | ||||||||||||||||||||||||||
| Currency translation adjustments | (366) | 6,990 | 11,230 | (2,149) | ||||||||||||||||||||||
| Total items that may be reclassified to statement of loss | (366) | 6,990 | 11,230 | (2,149) | ||||||||||||||||||||||
| Items that will not be reclassified to statement of loss (net of tax) | ||||||||||||||||||||||||||
| Remeasurement of defined benefit plans | 152 | (173) | 251 | (231) | ||||||||||||||||||||||
| Total items that will not be reclassified to statement of loss | 152 | (173) | 251 | (231) | ||||||||||||||||||||||
| Other comprehensive (loss) income for the period | $ | (214) | $ | 6,817 | $ | 11,481 | $ | (2,380) | ||||||||||||||||||
| Total comprehensive loss for the period | $ | (20,235) | $ | (11,621) | $ | (48,339) | $ | (49,715) | ||||||||||||||||||
| Attributable to owners of the parent | $ | (20,235) | $ | (11,621) | $ | (48,339) | $ | (49,715) | ||||||||||||||||||
The notes form an integral part of these unaudited interim condensed consolidated financial statements.
F-4
SOPHiA GENETICS SA
Interim Condensed Consolidated Balance Sheets
(Amounts in USD thousands)
(Unaudited)
| Notes | September 30, 2025 | December 31, 2024 | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 81,610 | $ | 80,226 | ||||||||||||||||
| Accounts receivable | 5, 6 | 8,455 | 7,436 | |||||||||||||||||
| Inventory | 6,680 | 5,868 | ||||||||||||||||||
| Prepaids and other current assets | 6,735 | 5,875 | ||||||||||||||||||
| Total current assets | 103,480 | 99,405 | ||||||||||||||||||
| Non-current assets | ||||||||||||||||||||
| Property and equipment | 4,915 | 5,209 | ||||||||||||||||||
| Intangible assets | 34,681 | 28,998 | ||||||||||||||||||
| Right-of-use assets | 8 | 12,706 | 14,168 | |||||||||||||||||
| Deferred tax assets | 1,666 | 1,767 | ||||||||||||||||||
| Other non-current assets | 6,010 | 5,762 | ||||||||||||||||||
| Total non-current assets | 59,978 | 55,904 | ||||||||||||||||||
| Total assets | $ | 163,458 | $ | 155,309 | ||||||||||||||||
| Liabilities and equity | ||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Accounts payable | $ | 6,056 | $ | 5,220 | ||||||||||||||||
| Accrued expenses | 16,718 | 13,217 | ||||||||||||||||||
| Deferred contract revenue | 10,040 | 5,732 | ||||||||||||||||||
| Lease liabilities, current portion | 8 | 2,609 | 2,190 | |||||||||||||||||
| Warrant obligations | 9 | 1,504 | 444 | |||||||||||||||||
| Total current liabilities | 36,927 | 26,803 | ||||||||||||||||||
| Non-current liabilities | ||||||||||||||||||||
| Borrowings | 9 | 47,581 | 13,237 | |||||||||||||||||
| Lease liabilities, net of current portion | 8 | 13,183 | 14,603 | |||||||||||||||||
| Defined benefit pension liabilities | 4,409 | 3,839 | ||||||||||||||||||
| Other non-current liabilities | 671 | 337 | ||||||||||||||||||
| Total non-current liabilities | 65,844 | 32,016 | ||||||||||||||||||
| Total liabilities | 102,771 | 58,819 | ||||||||||||||||||
| Equity | ||||||||||||||||||||
| Share capital | 4,188 | 4,188 | ||||||||||||||||||
| Share premium | 472,438 | 472,244 | ||||||||||||||||||
| Treasury shares | (632) | (702) | ||||||||||||||||||
| Other reserves | 84,790 | 61,037 | ||||||||||||||||||
| Accumulated deficit | (500,097) | (440,277) | ||||||||||||||||||
| Total equity | 60,687 | 96,490 | ||||||||||||||||||
| Total liabilities and equity | $ | 163,458 | $ | 155,309 | ||||||||||||||||
The notes form an integral part of these unaudited interim condensed consolidated financial statements.
F-5
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Changes in Equity
(Amounts in USD thousands)
(Unaudited)
| Share | Share | Treasury | Other | Accumulated | ||||||||||||||||||||||||||||||||||||||||
| Notes | capital | premium | share | reserves | deficit | Total | ||||||||||||||||||||||||||||||||||||||
| As of January 1, 2025 | $ | 4,188 | $ | 472,244 | $ | (702) | $ | 61,037 | $ | (440,277) | $ | 96,490 | ||||||||||||||||||||||||||||||||
| Loss for the period | — | — | — | — | (59,820) | (59,820) | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | 11,481 | — | 11,481 | ||||||||||||||||||||||||||||||||||||||
| Total comprehensive loss | — | — | — | 11,481 | (59,820) | (48,339) | ||||||||||||||||||||||||||||||||||||||
| Share-based compensation | 10 | — | — | — | 12,337 | — | 12,337 | |||||||||||||||||||||||||||||||||||||
| Transactions with owners | ||||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units | — | — | 65 | (65) | — | — | ||||||||||||||||||||||||||||||||||||||
| Exercise of share options | — | 194 | 5 | — | — | 199 | ||||||||||||||||||||||||||||||||||||||
| As of September 30, 2025 | $ | 4,188 | $ | 472,438 | $ | (632) | $ | 84,790 | $ | (500,097) | $ | 60,687 | ||||||||||||||||||||||||||||||||
| Share | Share | Treasury | Other | Accumulated | ||||||||||||||||||||||||||||||||||||||||
| Notes | capital | premium | share | reserves | deficit | Total | ||||||||||||||||||||||||||||||||||||||
| As of July 1, 2025 | $ | 4,188 | $ | 472,355 | $ | (648) | $ | 80,873 | $ | (480,076) | $ | 76,692 | ||||||||||||||||||||||||||||||||
| Loss for the period | — | — | — | — | (20,021) | (20,021) | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | (214) | (214) | |||||||||||||||||||||||||||||||||||||||
| Total comprehensive loss | — | — | — | (214) | (20,021) | (20,235) | ||||||||||||||||||||||||||||||||||||||
| Share-based compensation | 10 | — | — | — | 4,146 | — | 4,146 | |||||||||||||||||||||||||||||||||||||
| Transactions with owners | ||||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units | — | — | 15 | (15) | — | — | ||||||||||||||||||||||||||||||||||||||
| Exercise of share options | — | 83 | 1 | — | — | 84 | ||||||||||||||||||||||||||||||||||||||
| As of September 30, 2025 | $ | 4,188 | $ | 472,438 | $ | (632) | $ | 84,790 | $ | (500,097) | $ | 60,687 | ||||||||||||||||||||||||||||||||
F-6
| Share | Share | Treasury | Other | Accumulated | ||||||||||||||||||||||||||||||||||||||||
| Notes | capital | premium | share | reserves | deficit | Total | ||||||||||||||||||||||||||||||||||||||
| As of January 1, 2024 | $ | 4,048 | $ | 471,846 | $ | (646) | $ | 53,978 | $ | (377,784) | $ | 151,442 | ||||||||||||||||||||||||||||||||
| Loss for the period | — | — | — | — | (47,335) | (47,335) | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | (2,380) | — | (2,380) | ||||||||||||||||||||||||||||||||||||||
| Total comprehensive loss | — | — | — | (2,380) | (47,335) | (49,715) | ||||||||||||||||||||||||||||||||||||||
| Share-based compensation | 10 | — | — | — | 11,410 | — | 11,410 | |||||||||||||||||||||||||||||||||||||
| Transactions with owners | ||||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units | — | — | 62 | (62) | — | — | ||||||||||||||||||||||||||||||||||||||
| Issuance of shares to be held as treasury shares | 140 | — | (140) | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Exercise of share options | — | 365 | 5 | — | — | 370 | ||||||||||||||||||||||||||||||||||||||
| As of September 30, 2024 | $ | 4,188 | $ | 472,211 | $ | (719) | $ | 62,946 | $ | (425,119) | $ | 113,507 | ||||||||||||||||||||||||||||||||
| Share | Share | Treasury | Other | Accumulated | ||||||||||||||||||||||||||||||||||||||||
| Notes | capital | premium | share | reserves | deficit | Total | ||||||||||||||||||||||||||||||||||||||
| As of July 1, 2024 | $ | 4,048 | $ | 472,140 | $ | (590) | $ | 52,526 | $ | (406,681) | $ | 121,443 | ||||||||||||||||||||||||||||||||
| Loss for the period | — | — | — | — | (18,438) | (18,438) | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | 6,817 | — | 6,817 | ||||||||||||||||||||||||||||||||||||||
| Total comprehensive loss | — | — | — | 6,817 | (18,438) | (11,621) | ||||||||||||||||||||||||||||||||||||||
| Share-based compensation | 10 | — | — | — | 3,613 | — | 3,613 | |||||||||||||||||||||||||||||||||||||
| Transactions with owners | ||||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units | — | — | 10 | (10) | — | — | ||||||||||||||||||||||||||||||||||||||
| Issuance of shares to be held as treasury shares | 140 | — | (140) | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Exercise of share options | — | 71 | 1 | — | — | 72 | ||||||||||||||||||||||||||||||||||||||
| As of September 30, 2024 | $ | 4,188 | $ | 472,211 | $ | (719) | $ | 62,946 | $ | (425,119) | $ | 113,507 | ||||||||||||||||||||||||||||||||
The notes form an integral part of these unaudited interim condensed consolidated financial statements.
F-7
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Cash Flows
(Amounts in USD thousands)
(Unaudited)
| Nine months ended September 30, | ||||||||||||||||||||
| Notes | 2025 | 2024 | ||||||||||||||||||
(As Recast)1 | ||||||||||||||||||||
| Operating activities | ||||||||||||||||||||
| Loss before tax | $ | (57,913) | $ | (46,728) | ||||||||||||||||
| Adjustments for non-monetary items | ||||||||||||||||||||
| Depreciation | 2,949 | 3,439 | ||||||||||||||||||
| Amortization | 4,142 | 2,870 | ||||||||||||||||||
| Finance expense (income), net | 5,009 | (2,333) | ||||||||||||||||||
| Fair value adjustments on warrant obligations | 9 | 587 | (266) | |||||||||||||||||
| Expected credit loss allowance increase (reversal) | 6 | (7) | (252) | |||||||||||||||||
| Share-based compensation | 10 | 12,337 | 11,410 | |||||||||||||||||
| Movements in provisions and pensions | 492 | 246 | ||||||||||||||||||
| Research tax credit | (752) | (460) | ||||||||||||||||||
| Working capital changes | ||||||||||||||||||||
| Decrease (increase) in accounts receivable | 31 | 3,813 | ||||||||||||||||||
| Decrease (increase) in prepaids and other assets | 2,060 | (420) | ||||||||||||||||||
| Decrease (increase) in inventory | (165) | 48 | ||||||||||||||||||
| Increase (decrease) in accounts payables, accrued expenses, deferred contract revenue, and other liabilities | 3,678 | (4,822) | ||||||||||||||||||
| Cash used in operating activities | (27,552) | (33,455) | ||||||||||||||||||
| Income tax paid | (205) | (374) | ||||||||||||||||||
| Net cash flows used in operating activities | (27,757) | (33,829) | ||||||||||||||||||
| Investing activities | ||||||||||||||||||||
| Purchase of property and equipment | (236) | (187) | ||||||||||||||||||
| Acquisition of intangible assets | (223) | (195) | ||||||||||||||||||
| Capitalized development costs | (5,697) | (5,854) | ||||||||||||||||||
| Purchase of equity investments held at fair value | (493) | — | ||||||||||||||||||
| Interest received | 1,482 | 2,741 | ||||||||||||||||||
| Net cash flow used in investing activities | (5,167) | (3,495) | ||||||||||||||||||
| Financing activities | ||||||||||||||||||||
| Proceeds from exercise of share options | 199 | 370 | ||||||||||||||||||
| Interest paid | 9 | (2,805) | (1,133) | |||||||||||||||||
| Proceeds from borrowings, net of transaction costs | 9 | 34,563 | 13,930 | |||||||||||||||||
| Payments of principal portion of lease liabilities | 8 | (1,395) | (2,142) | |||||||||||||||||
| Net cash flow provided by financing activities | 30,562 | 11,025 | ||||||||||||||||||
| Increase (decrease) in cash and cash equivalents | (2,362) | (26,299) | ||||||||||||||||||
| Effect of exchange differences on cash balances | 3,746 | (1,165) | ||||||||||||||||||
| Cash and cash equivalents at beginning of the year | 80,226 | 123,251 | ||||||||||||||||||
| Cash and cash equivalents at end of the period | $ | 81,610 | $ | 95,787 | ||||||||||||||||
The notes form an integral part of these unaudited interim condensed consolidated financial statements.
1 Refer to “Note 1—Change in accounting policies—Statement of Cash Flows - Interest Classification” for details on change in accounting policy.
F-8
SOPHiA GENETICS SA
Notes to the Unaudited Interim Condensed
Consolidated Financial Statements
1. Company information
General information
SOPHiA GENETICS SA and its consolidated subsidiaries (NASDAQ: SOPH) (“the Company”) is a cloud-native software company in the healthcare space, incorporated on March 18, 2011, and headquartered in Rolle, Switzerland. The Company is dedicated to establishing the practice of data-driven medicine as the standard of care in health care and for life sciences research. The Company has built a cloud-native software platform capable of analyzing data and generating insights from complex multimodal datasets and different diagnostic modalities. This platform, commercialized as “SOPHiA DDM TM,” standardizes, computes, and analyzes digital health data and is used in decentralized locations to break down data silos. The Company collectively refers to SOPHiA DDM TM Platform and related products and solutions as “SOPHiA DDM Platform.”
As of September 30, 2025, the Company had the following wholly owned subsidiaries:
| Name | Country of domicile | |||||||
| SOPHiA GENETICS S.A.S. | France | |||||||
| SOPHiA GENETICS LTD | U.K. | |||||||
| SOPHiA GENETICS, Inc. | U.S. | |||||||
| SOPHiA GENETICS Intermediação de Negócios LTDA | Brazil | |||||||
| SOPHiA GENETICS PTY LTD | Australia | |||||||
| SOPHiA GENETICS S.R.L. | Italy | |||||||
| SOPHiA GENETICS GmbH | Germany | |||||||
In May 2025, SOPHiA GENETICS GmbH, a wholly owned subsidiary located in Germany, was incorporated.
All intercompany transactions and balances have been eliminated in consolidation.
The Company’s Board of Directors approved the issue of the unaudited interim condensed consolidated financial statements on November 4, 2025.
Basis of preparation
Compliance with International Financial Reporting Standards
These unaudited interim condensed consolidated financial statements, as of and for the three and nine months ended September 30, 2025, of the Company have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”) and should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2024.
Accounting policies
The material accounting policies adopted in the preparation of these unaudited interim condensed consolidated financial statements are the same as those applied in the Company’s annual consolidated financial statements as of and for the year ended December 31, 2024, except as noted under “—Change in accounting policies”, and have been consistently applied, unless otherwise stated. Where expense is definitively calculated only on an annual basis, as is the case for income taxes and pension costs, appropriate estimates are made for interim reporting periods.
F-9
Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Transaction costs include any incremental costs directly attributable to the acquisition of the financial liability, that would otherwise have not been incurred if the Company did not acquire the financial instrument. Borrowings are subsequently measured at amortized cost using the effective interest method. The effective interest method recognizes any difference between the loan proceeds, net of transaction costs, and the redemption amount as interest expense through the profit and loss statement for the period. Changes in the effective interest rate (“EIR”) are updated prospectively based on the most recent interest payment rate at the end of each reporting period. Borrowings are removed from the balance sheet when the obligation is discharged, cancelled, or repaid. When the borrowing is removed from the balance sheet, any difference between the carrying amount of the financial liability, and the consideration paid, is recognized in profit or loss as a non-operating income or expense. Borrowings are classified as current liabilities unless the maturity date is greater than 12 months or the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.
Income tax expense
Taxes on income in the interim periods are accrued using the tax rates that would be applicable based on the expected annual profit or loss of each of the Company’s entities.
Post-employment defined benefit plan expense
Post-employment defined benefit plan expense in interim reporting periods is recognized on the basis of the current year cost estimate made by the actuaries in their annual report as of the end of the preceding year. Potential remeasurement gains or losses from the defined benefits plan are estimated based on the relevant indexes at the end of the reporting period and recorded in the Company’s statements of comprehensive loss.
Designated cash
Previously, the Company had designated cash in a separate bank account to be used exclusively to settle potential liabilities arising from claims against Directors and Officers covered under the Company’s Directors and Officers Insurances Policy (“D&O Policy”). Setting up the designated account significantly reduced the premiums associated with the D&O Policy. In June 2024, the Company renewed its policy. At the time, it held $15 million of designated cash. Under the terms of the renewed D&O policy, the requirement to maintain a designated cash amount was eliminated. The new D&O policy and elimination of designated cash went into effect in July 2024.
Change in accounting policies
Statement of Cash Flows - Interest Classification
Effective January 1, 2025, the Company revised its accounting policy regarding the classification of interest paid and interest received in the Statement of Cash Flows. Interest paid was reclassified from Net cash flows used in operating activities to Net cash flows used in financing activities, and interest received was reclassified from Net cash flows used in operating activities to Net cash flows used in investing activities. The Company assessed the change in accounting policy under IAS 8, in accordance with the guidance regarding a voluntary change in accounting policy.
The reclassification of interest paid was elected to provide a more cohesive presentation of payments related to the Company’s borrowings and lease liabilities. Prior to the change in accounting policy, interest paid on borrowings and lease liabilities were classified as operating cash flows, while proceeds from borrowings, net of transaction costs and payments of principal portion of lease liabilities are classified as financing cash flows. The change aligns interest payments with their associated transactions.
In addition, the Company reclassified interest received to investing activities, as the majority of interest received relates to interest earned on cash and cash equivalents and short-term investments. The Company believes this
F-10
updated classification better reflects the nature and source of these cash inflows and provides more relevant and reliable information.
The Company determined the voluntary change in accounting policy did not have an impact on basic and diluted earnings per share under IAS 33 - Earnings per Share.
The Company applied the change in accounting policy retrospectively and has recast prior period comparative information within the Statement of Cash Flows to ensure consistency and comparability with the current period presentation. As part of the retrospective application, cash flows changed as follows for the nine months ended September 30, 2024: Net cash used in operating activities increased by $1.6 million, Net cash flow used in investing activities decreased by $2.7 million, and Net cash flow provided by financing activities decreased by $1.1 million.
Recent new accounting standards, amendments to standards, and interpretations
New standards, amendments to standards, and interpretations issued recently effective
There are no new IFRS standards, amendments, or interpretations that are mandatory as of January 1, 2025 that are relevant to the Company.
New standards, amendments to standards, and interpretations issued not yet effective
In April 2024, IFRS 18, Presentation and Disclosure in Financial Statements, was issued to achieve comparability of the financial performance of similar entities. The standard, which will replace IAS 1 impacts the presentation of primary financial statements and notes, including the statement of earnings where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. The standard will also require management-defined performance measures to be explained and included in a separate note within the consolidated financial statements. The standard is effective for annual reporting periods beginning on or after January 1, 2027, and requires retrospective application. The Company is currently evaluating the new standard to determine if it will have a material impact on the Company’s financial statements.
There are no other IFRS Accounting Standards or IFRS Interpretations Committee interpretations that are not yet effective and that could have a material impact to the interim condensed consolidated financial statements.
Critical estimates and judgments
The preparation of the unaudited interim condensed consolidated financial statements in conformity with IAS 34 requires management to make judgments, estimates and assumptions. Information regarding accounting areas where such judgments, estimates and assumptions are of particular significance is set out in the annual financial statements under “Critical estimates and judgments.”
Going concern basis
These unaudited interim condensed consolidated financial statements have been prepared on a going concern basis.
Foreign currency translation
Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The Company’s reporting currency of the Company’s consolidated financial statements is the United States Dollar (“USD”). Assets and liabilities denominated in foreign currencies are translated at the month-end spot exchange rates, income statement accounts are translated at average rates of exchange for the period presented, and equity is translated at historical exchange rates. Any translation gains or losses are recorded in other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in net income.
F-11
Historical cost convention
The financial statements have been prepared on a historical cost basis except for certain assets and liabilities, which are carried at fair value.
Issued share capital
As of September 30, 2025, the Company had issued 79,321,220 shares, of which 67,847,058 are outstanding, and 11,474,162 are held by the Company as treasury shares. As of September 30, 2024, the Company had issued 79,321,220 shares, of which 66,438,595 were outstanding, and 12,882,625 were held by the Company as treasury shares.
Treasury shares
On July 5, 2024, the Company issued 2,423,056 registered shares to SOPHiA GENETICS LTD pursuant to a share delivery and repurchase agreement, which were immediately exercised, and repurchased the shares to hold as treasury shares for the purposes of administering the Company's equity incentive programs along with other uses. As of September 30, 2025, the Company held 11,474,162 treasury shares. As of September 30, 2024, the Company held 12,882,625 treasury shares.
Treasury shares are recognized at acquisition cost and recorded at the time of the transaction. Upon exercise of share options or vesting of restricted stock units, the treasury shares are subsequently transferred. Any consideration received is included in shareholders’ equity.
2. Fair Value
As of September 30, 2025, the carrying amount was a reasonable approximation of fair value for the following financial assets and liabilities:
Financial assets
•Cash and cash equivalents
•Accounts receivable
•Other non-current assets—lease deposits and equity investments at fair value through profit or loss
Financial liabilities
•Accounts payable
•Accrued liabilities
•Lease liabilities
•Borrowings
F-12
Recurring fair-value measurements
The following table presents the Company’s fair value hierarchy for its financial assets and financial liabilities that were measured at fair value on a recurring basis (in USD thousands):
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||
| Financial assets: | ||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||
| Money market funds | $ | 35,372 | $ | — | $ | — | $ | 39,586 | $ | — | $ | — | ||||||||||||||||||||||||||
| Equity Investment: | $ | — | $ | 493 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
| Total financial assets | $ | 35,372 | $ | 493 | $ | — | $ | 39,586 | $ | — | $ | — | ||||||||||||||||||||||||||
| Financial liabilities: | ||||||||||||||||||||||||||||||||||||||
| Warrant obligation: | ||||||||||||||||||||||||||||||||||||||
| Perceptive Credit Holdings warrants | $ | — | $ | 1,504 | $ | — | $ | — | $ | 444 | $ | — | ||||||||||||||||||||||||||
| Total financial liabilities | $ | — | $ | 1,504 | $ | — | $ | — | $ | 444 | $ | — | ||||||||||||||||||||||||||
In the three and nine months ended September 30, 2025, there were no significant changes in the business or economic circumstances that affected the fair value of the Company’s financial assets and financial liabilities. There were no transfers of financial instruments between Levels 1, 2, and 3 during the three and nine months ended September 30, 2025.
In September 2025, the Company signed a stock purchase and subscription agreement to acquire a non-controlling minority equity interest in A.D.A.M. Innovations, formerly known as Genesis Healthcare, in two tranches totaling $2.0 million. The Company acquired shares totaling $0.5 million in September 2025 and shares totaling $1.5 million in October 2025. These financial assets are initially measured at fair value and subsequently re-measured at fair value at each reporting date. Changes in fair values for these financial assets are recorded through profit or loss in accordance with IFRS 9 Financial Instruments. As of September 30, 2025 purchase price approximated fair value and no changes in fair value had been recorded in the Consolidated Statements of Loss.
3. Financial Risk Management
In the course of its business, the Company is exposed to a number of financial risks including credit and counterparty risk, funding and liquidity risk and market risk (i.e. foreign currency risk and interest rate risk). The unaudited interim condensed consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements and should be read in conjunction with the Company’s consolidated financial statements as of December 31, 2024. There have been no significant changes in financial risk management since year-end.
4. Segment Reporting
The Company operates in a single operating segment. The Company’s financial information is reviewed, and its performance assessed as a single segment by the senior management team led by the Chief Executive Officer (“CEO”), the Company’s Chief Operating Decision Maker (“CODM”).
F-13
5. Revenue
Disaggregated revenue
When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. The Company assesses its revenues, both SOPHiA DDM Platform and Workflow equipment and services revenues, by four geographic regions Europe, the Middle East, and Africa (“EMEA”); North America (“NORAM”); Latin America (“LATAM”); and Asia-Pacific (“APAC”). Additionally, the Company assesses revenues generated in its domiciled country and any country with significant revenue. The Company determines the country in which the revenue is generated based on the end customer geographic location. The following table disaggregates the Company's revenue from contracts with customers by geographic market (in USD thousands):
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Switzerland | $ | 476 | $ | 308 | $ | 1,328 | $ | 833 | ||||||||||||||||||
| France | 3,116 | 2,721 | 8,446 | 7,805 | ||||||||||||||||||||||
| Italy | 2,509 | 2,342 | 7,823 | 7,035 | ||||||||||||||||||||||
| Spain | 1,455 | 1,445 | 4,503 | 4,413 | ||||||||||||||||||||||
| Rest of EMEA | 6,634 | 4,600 | 17,922 | 13,523 | ||||||||||||||||||||||
| EMEA | $ | 14,190 | $ | 11,416 | $ | 40,022 | $ | 33,609 | ||||||||||||||||||
| United States | $ | 2,618 | $ | 2,021 | $ | 7,758 | $ | 6,922 | ||||||||||||||||||
| Rest of NORAM | 595 | 478 | 1,796 | 1,437 | ||||||||||||||||||||||
| NORAM | $ | 3,213 | $ | 2,499 | $ | 9,554 | $ | 8,359 | ||||||||||||||||||
| LATAM | $ | 692 | $ | 739 | $ | 2,107 | $ | 2,341 | ||||||||||||||||||
| APAC | $ | 1,367 | $ | 1,199 | $ | 3,881 | $ | 3,131 | ||||||||||||||||||
| Total revenue | $ | 19,462 | $ | 15,853 | $ | 55,564 | $ | 47,440 | ||||||||||||||||||
Revenue streams
The Company’s revenue from contracts with customers has been allocated to the revenue streams indicated in the table below (in USD thousands):
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| SOPHiA DDM Platform | $ | 18,667 | $ | 15,584 | $ | 53,892 | $ | 46,302 | ||||||||||||||||||
| Workflow equipment and services | 795 | 269 | 1,672 | 1,138 | ||||||||||||||||||||||
| Total revenue | $ | 19,462 | $ | 15,853 | $ | 55,564 | $ | 47,440 | ||||||||||||||||||
F-14
6. Accounts receivable
The following table presents the trade receivable and accrued contract revenue less the expected credit loss (in USD thousands):
| September 30, 2025 | December 31, 2024 | |||||||||||||
| Trade receivable | $ | 7,283 | $ | 7,088 | ||||||||||
| Accrued contract revenue | 1,517 | 742 | ||||||||||||
| Allowance for expected credit losses | (345) | (394) | ||||||||||||
| Net accounts receivable | $ | 8,455 | $ | 7,436 | ||||||||||
The Company records increases to, reversals of, and write-offs of the allowance for expected credit losses as “Selling and Marketing” expenses within its interim condensed consolidated statements of loss. The following table provides a reconciliation of the allowance for expected credit losses for the nine months ended September 30, 2025 and 2024, that is deducted from the gross carrying amount of accounts receivable to present the net amount expected to be collected (in USD thousands):
| 2025 | 2024 | |||||||||||||
| As of January 1 | $ | 394 | $ | 1,181 | ||||||||||
| Increase | 426 | 103 | ||||||||||||
| Reversals | (433) | (355) | ||||||||||||
| Write-off | (112) | (30) | ||||||||||||
| Currency translation adjustments | 70 | (6) | ||||||||||||
| As of September 30 | $ | 345 | $ | 893 | ||||||||||
As of September 30, 2025 and December 31, 2024, the Company’s largest customer’s balance represented 9% and 18% of accounts receivable, respectively. All customer balances that individually exceeded 1% of accounts receivable in aggregate amounted to $4.3 million and $5.0 million as of September 30, 2025 and December 31, 2024, respectively.
7. Loss per share
The Company’s shares are comprised of ordinary shares. Each share has a nominal value of $0.06 (CHF 0.05). The basic loss per share is calculated by dividing the net loss attributable to shareholders by the weighted average number of shares in issue during the period excluding treasury shares, which are owned by the Company. The table presents the loss for the three and nine months ended September 30, 2025 and 2024, respectively (in USD thousands, except shares and loss per share):
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Net loss attributed to shareholders | $ | (20,021) | $ | (18,438) | $ | (59,820) | $ | (47,335) | ||||||||||||||||||
| Weighted average number of shares in issue | 67,787,913 | 0 | 66,383,160 | 0 | 67,318,045 | 0 | 65,871,305 | |||||||||||||||||||
| Basic and diluted loss per share | $ | (0.30) | $ | (0.28) | $ | (0.89) | $ | (0.72) | ||||||||||||||||||
For the three and nine months ended September 30, 2025 and 2024, the potential impact, on the calculation of loss per share, of the existing potential ordinary shares related to the share option plans and warrants are not presented, as the impact would be to dilute a loss, which causes them to be deemed “anti-dilutive” for the purposes of the required disclosure.
F-15
8. Leases
Boston lease
On June 27, 2024 the Company entered into a 73-month lease for office space in Boston, Massachusetts primarily to support the expansion of the Company’s growth in the United States. The lease in total is for approximately 12,807 square feet. The Company makes fixed payments and additional variable payments depending on the usage of the asset during the contract period. Upon gaining access to the space in September 2024, the Company recorded a right-of-use asset of $2.0 million and a lease liability of $1.9 million. The difference between the ROU and lease liability of less than $0.1 million is driven by initial direct costs to obtain the lease.
9. Borrowings
Perceptive Credit Agreement
On May 2, 2024 (the “closing date”), the Company and its subsidiary SOPHiA GENETICS, Inc. entered into a credit agreement and guaranty (the “Perceptive Credit Agreement”) with Perceptive Credit Holdings IV, LP, as lender and administrative agent, pursuant to which the Company may borrow up to $50.0 million principal amount of term loans, including (i) an initial tranche of $15.0 million principal amount of term loans on the closing date and (ii) up to $35.0 million principal amount of term loans that the Company may draw upon on or prior to March 31, 2026, subject to satisfaction of certain customary conditions. The term loans are scheduled to mature on the fifth anniversary of the closing date and accrue interest at Term SOFR plus 6.25% per annum. The Perceptive Credit Agreement contains customary covenants, including an affirmative covenant to maintain qualified cash of at least $3.0 million, an affirmative last twelve months revenue covenant tested on a quarterly basis beginning June 30, 2024, and negative covenants including limitations on indebtedness, liens, fundamental changes, asset sales, investments, dividends and other restricted payments and other matters customarily restricted in such agreements. The Company remains in full compliance with all covenants contained in the Perceptive Credit Agreement as of September 30, 2025.
In addition, on May 2, 2024, the Company issued to Perceptive Credit Holdings IV, LP a warrant certificate representing the right to purchase up to 400,000 ordinary shares at $4.9992 per share, with 200,000 ordinary shares available immediately and an additional 200,000 ordinary shares to be available upon the drawdown of the second tranche of the term loans.
The Company drew down $35.0 million of the second tranche of term loans, Tranche B, on June 25, 2025 and an additional 200,000 ordinary shares became available under the warrant certificate.
Accounting for Tranche B
The Company accounted for Tranche B of the term loans and warrants as two separate financial instruments, with the $35.0 million drawdown: (i) a warrant obligation and (ii) a loan.
i) The warrant obligation is presented in the interim condensed consolidated balance sheet as a short-term liability given the warrants are not settled in the entity’s functional currency and thus are not considered to be settled in a fixed amount and can be exercised currently without restriction or right to defer. The warrant obligation was initially measured at fair value using a Black-Scholes pricing model and is subsequently remeasured to fair value at each reporting date. Changes in the fair value (gains or losses) of the warrant obligation at the end of each period are recorded in the condensed consolidated statement of loss. The Company determined the Tranche B warrant obligation qualified as a level 2 fair value liability as inputs to the fair value measurement are derived principally from or corroborated by observable market data by correlation or other means. Refer to Note 2 — “Fair Value” for the current fair value amounts for the Tranche A and Tranche B warrant obligations.
ii) The term loan was initially recorded at its amortized cost of $35.0 million less any capitalized expenses and fees payable upon the issuance (“transaction costs”) and after allocating a portion of the proceeds to the fair
F-16
value of the warrant obligation. The loan is presented as a long-term financial liability in the interim condensed consolidated balance sheet.
The Company assessed the allocation of transaction costs in accordance with IFRS 9 and determined the allocation to warrants was immaterial, as such the Company allocated the total amount of the transaction costs to the term loan. The transaction costs are presented net of the term loan on the balance sheet. The transaction costs are amortized as non-cash interest expense recorded to the interim condensed consolidated statement of loss as the difference between the stated interest rate and the EIR. The EIR was determined upon the initial draw down of Tranche B at 12.4% and reassessed based on changes in the variable interest rate from the Perceptive Credit Agreement.
Valuations for Tranche A and B
The Company calculated the fair value of the warrant obligations on issuance using the Black-Scholes pricing model. The warrant obligations were recorded at an initial fair value of $0.7 million on May 2, 2024 for Tranche A and $0.5 million on June 25, 2025 for Tranche B. Key inputs for the valuation of the warrant obligations upon issuance were as follows:
| As of June 25, 2025 | As of May 2, 2024 | |||||||||||||
| Exercise price in USD | $5.00 | $5.00 | ||||||||||||
| Share price in USD | $3.17 | $5.08 | ||||||||||||
| Risk-free interest rate | 4.24% | 4.53% | ||||||||||||
| Expected volatility (annualized) | 72.98% | 71.77% | ||||||||||||
| Expected term (years) | 10.00 | 10.00 | ||||||||||||
| Dividend yield | —% | —% | ||||||||||||
| Black-Scholes value in USD | $2.37 | $4.06 | ||||||||||||
F-17
The Company remeasures the fair value of the warrant obligations on a quarterly basis. Key inputs for the remeasurement of the Tranche A warrant obligation as of September 30, 2025 and December 31, 2024 were as follows:
| As of September 30, 2025 | As of December 31, 2024 | |||||||||||||
| Exercise price in USD | $5.00 | $5.00 | ||||||||||||
| Share price in USD | $4.76 | $3.07 | ||||||||||||
| Risk-free interest rate | 4.01% | 4.51% | ||||||||||||
| Expected volatility | 76.51% | 72.52% | ||||||||||||
| Expected term (years) | 8.59 | 9.33 | ||||||||||||
| Dividend yield | —% | —% | ||||||||||||
| Black-Scholes value in USD | $3.69 | $2.22 | ||||||||||||
Key inputs for the remeasurement of the Tranche B warrant obligation as of September 30, 2025 were as follows:
| As of September 30, 2025 | ||||||||
| Exercise price in USD | $5.00 | |||||||
| Share price in USD | $4.76 | |||||||
| Risk-free interest rate | 4.10% | |||||||
| Expected volatility | 76.40% | |||||||
| Expected term (years) | 9.73 | |||||||
| Dividend yield | —% | |||||||
| Black-Scholes value in USD | $3.83 | |||||||
Tranche B was not drawn upon until June 25, 2025; therefore, the Tranche B warrant obligation was not subject to revaluation as of December 31, 2024.
The Tranche A loan was recorded at an initial amortized cost of $13.3 million on May 2, 2024. This amount represents the residual amount of the $15.0 million drawdown after allocating $0.7 million for the fair value of the Tranche A warrant obligation and the $1.1 million of transaction costs to be amortized as interest expense over the life of the loan. Tranche B was recorded at an initial amortized cost of $34.1 million on June 25, 2025, representing the residual amount of the $35.0 million drawdown, after allocating $0.5 million for the fair value of the Tranche B warrant obligation and the $0.4 million in Tranche B transaction costs, which will also be amortized as interest expense over the life of the loan. The following table presents the allocation of the loan proceeds:
| Tranche A | Tranche B | |||||||||||||
| As of May 2, 2024 | As of June 25, 2025 | |||||||||||||
| Loan issuance amount | $ | 15,000 | $ | 35,000 | ||||||||||
| Warrant obligation | (656) | (474) | ||||||||||||
| Transaction costs | (1,070) | (438) | ||||||||||||
| Initial loan amortized cost | $ | 13,274 | $ | 34,088 | ||||||||||
F-18
The following table presents any movements in the liability for the nine months ended September 30, 2025 (in USD thousands):
| 2025 | ||||||||
| As of January 1 | $ | 13,237 | ||||||
| Tranche B drawdown | 34,088 | |||||||
| Interest expense | 2,486 | |||||||
| Interest paid | (2,211) | |||||||
| Currency translation adjustments | (19) | |||||||
| As of September 30 | $ | 47,581 | ||||||
The following table presents any movements in the liability from the date of entering into the credit agreement on May 2, 2024, through September 30, 2024 (in USD thousands):
| 2024 | ||||||||
| As of May 2 | $ | 13,274 | ||||||
| Interest expense | 810 | |||||||
| Interest paid | (792) | |||||||
| Currency translation adjustments | (130) | |||||||
| As of September 30 | $ | 13,162 | ||||||
Revolving credit facility
On April 23, 2024 the Company terminated its existing credit agreement with Credit Suisse SA for up to CHF 5.0 million ($5.5 million). Additionally, the Company entered into a new credit agreement with Credit Suisse SA for up to CHF 0.1 million ($0.1 million) to be used for cash credits, contingent liabilities, or as margin for OTC derivative transactions. Borrowings under the new credit agreement will bear interest at a rate to be established between the Company and Credit Suisse SA at the time of each drawdown. As of September 30, 2025, the Company had no borrowings outstanding under the Credit Facility.
10. Share-based compensation
Stock Options
Share-based compensation expense for all stock awards consists of the following (in USD thousands):
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Research and development | $ | 1,052 | $ | 953 | $ | 3,176 | $ | 2,871 | ||||||||||||||||||
| Selling and marketing | 279 | 567 | 893 | 1,453 | ||||||||||||||||||||||
| General and administrative | 2,815 | 2,093 | 8,268 | 7,086 | ||||||||||||||||||||||
| Total | $ | 4,146 | $ | 3,613 | $ | 12,337 | $ | 11,410 | ||||||||||||||||||
F-19
11. Related party transactions
Related parties are comprised of the Company’s executive officers and directors, including their affiliates, and any person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control of, the Company.
Key management personnel are comprised of seven Executive Officers and Directors and six Non-Executive Directors as of September 30, 2025. Key management personnel were comprised of six Executive Officers and Directors and six Non-Executive Directors as of September 30, 2024.
The following table provides compensation for key management and non-executive directors (in USD thousands):
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Salaries and other short-term employee benefits | $ | 1,443 | $ | 1,459 | $ | 4,297 | $ | 2,975 | ||||||||||||||||||
| Pension costs | 72 | 62 | 212 | 192 | ||||||||||||||||||||||
| Share-based compensation expense | 3,068 | 2,447 | 9,279 | 7,936 | ||||||||||||||||||||||
| Total | $ | 4,583 | $ | 3,968 | $ | 13,788 | $ | 11,103 | ||||||||||||||||||
During the nine months ended September 30, 2025 and 2024 no related party transactions with Executive Officers or Directors occurred.
12. Events after the reporting date
The Company has evaluated, for potential recognition and disclosure, events that occurred prior to the date at which the unaudited interim condensed consolidated financial statements were approved to be issued.
As described in Note 2, in October 2025 the Company completed its purchase of shares in A.D.A.M. Innovations pursuant to the stock purchase and subscription agreement, purchasing a further $1.5 million in shares.
F-20
Exhibit 99.2
Management’s discussion and analysis of financial conditions and results of operations
You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our interim condensed consolidated financial statements and the related notes included as Exhibit 99.1 to the Report on Form 6-K to which this discussion and analysis is included as Exhibit 99.2 and our audited financial statements and the related notes and the section “Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the year ended December 31, 2024.
Our interim condensed consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS”). None of the consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The terms “dollar,” “USD” and “$” refer to U.S. dollars and the terms “Swiss franc” and “CHF” refer to the legal currency of Switzerland, unless otherwise indicated.
Unless otherwise indicated or the context otherwise requires, all references to “SOPHiA GENETICS,” “SOPH,” the “Company,” “we,” “our,” “ours,” “us” or similar terms refer to SOPHiA GENETICS SA and its consolidated subsidiaries.
Cautionary Statement Regarding Forward-Looking Statements
This discussion and analysis contain statements that constitute forward-looking statements. All statements other than statements of historical facts, including statements regarding our future results of operations and financial position, business strategy, technology, as well as plans and objectives of management for future operations are forward-looking statements. Many forward-looking statements can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “will” and “potential,” among others. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in the “Risk Factors” section of our Annual Report on Form 20-F for the year ended December 31, 2024 and in our other Securities and Exchange Commission (“SEC”) filings. These forward-looking statements include, among others:
•our expectations regarding our revenue, gross margin, expenses, other operating results and cash usage, including statements relating to the portion of our remaining performance obligation that we expect to recognize as revenue in future periods;
•our plans regarding further development of our SOPHiA DDMTM Platform and related products and solutions, which we collectively refer to as “SOPHiA DDM Platform,” and its expansion into additional features, applications and data modalities;
•future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements, future revenues, expenses, reimbursement rates and needs for additional financing;
•our expectations regarding the market size for our platform, applications, products, and services and the market acceptance they will be able to achieve;
•our expectations regarding changes in the healthcare systems in different jurisdictions, in particular with respect to the manner in which electronic health records are collected, distributed and accessed by various stakeholders;
•the timing or outcome of any domestic and international regulatory submissions;
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•impact from future regulatory, judicial, and legislative changes or developments in the United States and foreign countries, including with respect to FDA and other regulatory authorities’ staffing and funding;
•changes in tariffs, trade barriers and price and exchange controls;
•our ability to acquire new customers and successfully engage and retain customers;
•the costs and success of our marketing efforts, and our ability to promote our brand;
•our ability to increase demand for our applications, products, and services, obtain favorable coverage and reimbursement determinations from third-party payors and expand geographically;
•our expectations of the reliability, accuracy and performance of our applications, products, and services, as well as expectations of the benefits to patients, medical personnel and providers of our applications, products and services;
•our expectations regarding our ability, and that of our manufacturers, to manufacture our products;
•our efforts to successfully develop and commercialize our applications, products, and services;
•our competitive position and the development of and projections relating to our competitors or our industry;
•our ability to identify and successfully enter into strategic collaborations in the future, and our assumptions regarding any potential revenue that we may generate thereunder;
•our ability to obtain, maintain, protect and enforce intellectual property protection for our technology, applications, products, and services, and the scope of such protection;
•our ability to operate our business without infringing, misappropriating or otherwise violating the intellectual property or proprietary rights of third parties;
•our ability to attract and retain qualified key management and technical personnel; and
•our expectations regarding the time during which we will be an emerging growth company under the Jumpstart our Business Startups Act of 2012 (“JOBS Act”) and a foreign private issuer.
These forward-looking statements speak only as of the date of this discussion and analysis and are subject to a number of risks, uncertainties and assumptions described in the “Risk Factors” section of our Annual Form 20-F for the year ended December 31, 2024, this discussion and analysis and our other SEC filings. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. You should read this discussion and analysis completely and with the understanding that our actual future results may be materially different from what we expect.
Overview
We are a cloud-native software technology company in the healthcare space dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. We purposefully built a cloud-native software platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. Our platform standardizes, computes and analyzes digital health data and is used across decentralized locations to break down data silos. This enables healthcare institutions to share knowledge and experiences and to build a collective intelligence. We envision a future in which all clinical diagnostic test data is channeled through a decentralized analytics platform that will provide insights powered
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by large real-world data sets and AI. We believe that a decentralized platform is the most powerful and effective solution to create the largest network, leverage data and bring the benefits of data-driven medicine to customers and patients globally. In doing so, we can both support and benefit from growth across the healthcare ecosystem.
In 2014, we launched the first application of our platform to analyze next-generation sequencing (“NGS”) data for cancer diagnosis. We offer a broad range of applications used by healthcare providers, clinical and life sciences research laboratories and biopharmaceutical companies for precision medicine across oncology, rare diseases, infectious diseases, cardiology, neurology, metabolism and other disease areas. In 2019, we launched our solution for radiomics data that enables longitudinal monitoring of cancer patients and tumor progression throughout their disease journey. In 2022, we unveiled SOPHiA CarePath, our multimodal solution that integrates the capabilities of our genomics and radiomics solutions with additional modalities to further enable clinical decision-making. The module will allow healthcare practitioners to visualize data across multiple modalities (including genomic, radiomic, clinical, and biological) for individual patients in a longitudinal manner and derive additional insights through cohort design and comparison. SOPHiA CarePath has already been deployed as part of our Deep-Lung IV multimodal clinical study on non-small cell lung cancer.
We offer a range of platform access models to meet our customers’ needs. Our primary pricing strategy for our clinical customers is a pay-per-use model. Our customers typically purchase “bundles” which include the DNA enrichment solutions and other wet lab supplies used in the NGS process. These “bundles” include the charge for the related analysis that is done on our platform. The latter is typically referred to as the dry lab portion of NGS. Some clients use their own wet lab supplies and only access our platform for the data analysis, which is also on a pay-per-use model. To commercialize our applications and products, we employ our direct sales force, use local distributors and form collaborations with other global product and service providers in the healthcare ecosystem to assemble solutions to address customer needs. For example, we combine our solutions and applications with other products used in the genomic testing process to provide customers integrated products in the testing workflow. As of September 30, 2025, our direct sales team consisted of more than 105 field-based commercial representatives.
Recent Developments
Continued Focus on Strategic Partnerships and Transactions
We are continually developing strategic relationships and engaging in strategic transactions across the healthcare ecosystem with companies who also provide products and services to our customers.
In September we announced a partnership with Myriad Genetics to develop a companion diagnostic (“CDx”) liquid biopsy assay. The partnership will leverage Myriad’s laboratory capabilities and SOPHiA’s global network to provide pharmaceutical firms with a truly innovative approach to global companion diagnostics. Myriad will lead regulatory submissions in the United States and SOPHiA will pursue regulatory approvals outside of the U.S. Both firms will collaborate across development activities to provide a compelling solution to pharmaceutical firms pursuing CDx programs.
FDA LDT Final Rule
In April 2025, the U.S. District Court for the Eastern District of Texas, Association for Molecular Pathology, et al. v. U.S. Food and Drug Administration, et al., vacated the FDA’s Laboratory Developed Tests (“LDT”) Final Rule, which was scheduled to be phased in over four years and would have redefined LDTs as in vitro diagnostics, thereby requiring FDA clearance for such tests. Under the LDT Final Rule, the FDA would have mandated premarket review for LDTs and required compliance with other FDA regulations in line with the established medical device guidelines. These requirements would have increased both the cost and time required to commercialize an LDT, reducing the financial incentives for laboratories to develop such tests. This, in turn, could have led to decreased demand for our RUO applications and products. The FDA had a window to appeal the decision and has declined to do so in June 2025, making the court’s decision final. In September 2025, the FDA formally vacated the LDT Final Rule, reinstating the prior regulatory text. As a result, oversight of LDTs will remain under the Clinical Laboratory Improvement Amendments (CLIA) program rather than under the FDA medical device regulations.
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Guardant Health Litigation
Guardant Health (“Guardant”) filed suit against SOPHiA GENETICS in the United Kingdom in July 2025, and in the European Union at the Unified Patent Court in Paris in August 2025, alleging that our MSK-Access liquid biopsy test infringe their patents and seeking remedies, including unspecified monetary damages and injunctive relief. The Court has not yet issued a ruling on the merits. We believe their claims are without merit and contain factual errors regarding our performance of the MSK-Access assay. We are scheduled to submit our defence in the United Kingdom on December 5th. And we are scheduled for a hearing at the Unified Patent Court in Paris on December 12th regarding the application of a preliminary injunction. We intend to vigorously defend ourselves against these claims. The litigation resulted in higher legal expenses in the third quarter of 2025 of approximately $0.6 million. We could incur further costs and divert the attention of our management and technical personnel in defending ourselves against these claims. Furthermore, Guardant may in the future be able to obtain injunctive or other relief, which effectively could block our ability to further develop, commercialize, market or sell products or services in certain jurisdictions, such as the United Kingdom and European Union. Any adverse ruling or perception of an adverse ruling in defending ourselves against these claims could have an adverse impact on our business, financial condition or results of operations.
SEC Definition of FPI
In June 2025, the U.S. Securities and Exchange Commission (“SEC”) issued a request for public comment on whether the definition of a Foreign Private Issuer (“FPI”) should be amended. The comment period was open for 90 days and closed in early September 2025. The SEC is now reviewing public comments in order to decide on any potential rule changes.
The SEC’s request for comment outlines several potential changes to the FPI definition. These include, among other things, a possible requirement that FPIs be listed on a securities exchange in their home jurisdiction. While SOPHiA GENETICS is headquartered in Rolle, Switzerland, we are not currently listed on a Swiss or European exchange. The SEC has also raised the possibility of implementing a foreign trading volume requirement, which may not be within our control.
Additionally, the SEC discussed the potential for a mutual recognition framework based on international cooperation agreements. However, there is no assurance that such an approach will be adopted or that Switzerland would qualify under any mutual recognition criteria.
At this time, the outcome of the SEC’s review is uncertain. Any changes to the FPI definition could impact our status and result in additional compliance obligations or costs, including the potential need to seek listings on additional exchanges. We are actively monitoring developments in this area and will assess and respond to any changes that may affect our FPI status.
Risk Factors
There have been no material changes to our risk factors from those described in the “Item 3. Key Information—D. Risk Factors” section of our Annual Report on Form 20-F for the year ended December 31, 2024, except for the items disclosed below:
Changes in tariffs could increase our cost of revenue and our operating expenses.
In April 2025, the United States government announced significant changes to its trade policy, including the imposition of tariffs. The new tariff system consists of two tiers: a 10% baseline tariff on all imports to the United States and higher reciprocal tariffs on imported goods from approximately 60 countries. An initial 31% tariff was announced on goods imported into the U.S. from Switzerland, where our headquarters are located, which was subsequently increased to 39% by Executive Order on July 31, 2025. The tariffs are to be reduced if the products imported into the U.S. have U.S. content in them.
The legal basis for how these tariffs were implemented is being challenged in the U.S., with a recent hearing at the U.S. Court of Appeals for the Federal Circuit in Washington D.C, which ruled that the tariffs as implemented
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were illegal. The matter will come before the U.S. Supreme Court in November, who will make a final ruling with respect to the legality of the tariffs as they have been currently implemented. The situation remains fluid and is evolving rapidly, and the Company is closely monitoring developments.
We operate internationally, with the majority of our bundles assembled at and shipped from our headquarters in Rolle, Switzerland. While the majority of our revenues are generated from the EMEA region and are not directly impacted by these tariffs, our sale of bundles to the United States are currently subject to additional costs due to the tariffs, leading to increases in our cost of revenue and decreases in our gross margin if we are unable to fully offset such costs by increasing our prices. In addition, the tariffs if they remain in effect, will lead to higher operating expenses. These effects could adversely affect our financial condition and results of operations. Furthermore, the imposition of tariffs by the United States may prompt other countries, including Switzerland, to impose reciprocal tariffs, which could impact the cost of our raw materials purchased from the United States.
Key Operating Performance Indicators
We regularly monitor a number of key performance indicators and metrics to evaluate our business, measure our performance, identify key operating trends and formulate financial projections and strategic plans. We believe that the following metrics are representative of our current business, but the metrics we use to measure our performance could change as our business continues to evolve. Our key performance indicators primarily focus on metrics related to our SOPHiA DDM Platform, as platform revenue comprises the majority of our revenues.
Our Core Genomics Customers can access our platform using three different models: dry lab only access, bundle access, which combines wet and dry lab, and integrated access. In the dry lab access model, our customers use the testing instruments and solutions of their choice and our SOPHiA DDM Platform and algorithms for variant detection and identification. In the bundle access model, we bundle DNA enrichment solutions with our analytics solution to provide customers the ability to perform end-to-end workflows. In the integrated access model, our customers have their samples processed and sequenced through select SOPHiA DDM Platform collaborators within our clinical network and access their data through our SOPHiA DDM Platform. As used in this section, the term “Core Genomics Customer” refers to any customer who generated revenue through usage of our dry lab, bundle, or integrated access models. We exclude from this definition customers who only use our Alamut product.
We are continually refining our KPIs, as our business continues to evolve and we make revisions to our methodologies to calculate our key performance indicators.
Platform Analysis Volume
The following table shows platform analysis volume for the three and nine months ended September 30, 2025 and 2024:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| SOPHiA DDM Platform analysis volume* | 98,793 | 90,965 | 286,363 | 261,429 | ||||||||||||||||||||||
*The figures in the table above have been adjusted to exclude analyses conducted during the period but for which chargebacks were issued or other adjustments were made to customers after the period. We do not believe that such adjustments are material to the periods presented.
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Platform analysis volume represents a key business metric that reflects our overall business performance, as we generate revenue on a pay-per-analysis basis. Platform analysis volume measures the number of analyses that generated revenue to us and were conducted by our Core Genomics Customers. Analysis volume is a direct function of the number of active customers and usage rates across our customer base during a specified time period. While our platform analysis volume is a major driver of our revenue growth, other factors, including application and product pricing, access model used, and customer size mix, also affect our revenue. Because of that, our revenue may increase in periods in which our analysis volume decreases and vice versa.
Analysis volume increased to 98,793 from 90,965 and 286,363 from 261,429 for the three and nine months ended September 30, 2025 and 2024, representing year-over-year growth of 9% and 10% for the three and nine months ended September 30, 2025, respectively. This increase was primarily driven by higher usage from existing customers and the onboarding of new customers to our platform, with particularly strong volume growth in NORAM and APAC, but partially offset by a decline in LATAM volumes.
Total Core Genomics Customers
The following table shows the number of Core Genomics Customers as of September 30, 2025 and 2024:
| As of September 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Core Genomics Customers | 488 | 462 | ||||||||||||
We track the number of our Core Genomics Customers, defined as the number of customers who generated revenue through usage of our bundle access, dry lab, and integrated access models during the specified time period, as a key measure of our ability to generate recurring revenue from our install base. We exclude from this number any customers who do not utilize our SOPHiA DDM Platform through one of the three access modes, such as customers who only use Alamut and our biopharma customers. This number also excludes customers without any usage of our SOPHiA DDM Platform over the past twelve months and customers who have executed agreements with us but have not yet generated any revenue, including customers that are in the process of being onboarded onto our SOPHiA DDM Platform.
Core Genomics Customers increased to 488 as of September 30, 2025 from 462 as of September 30, 2024. The increase was primarily attributable to our continued customer acquisition momentum by our commercial team over the course of the intervening period net of churn.
Net Dollar Retention (NDR)
The following table shows the net dollar retention as of September 30, 2025 and 2024:
| As of September 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Net dollar retention (NDR) | 108 | % | 109 | % | ||||||||||
We track net dollar retention for our dry lab, bundle access, and integrated access customers as a measure of our ability to grow the revenue generated from our Core Genomics Customers through our “land and expand” strategy net of revenue churn, which we define as the annualized revenues we estimate to have lost from customers who access our platform through our dry lab access, bundle access and integrated access models and have not generated revenue over the past twelve months in that period based on their average quarterly revenue contributions from point of onboarding as a percentage of total recurring platform revenue. To calculate net dollar retention, we first specify a measurement period consisting of the trailing two-year period from our fiscal period end. Next, we define a measurement cohort consisting of Core Genomics Customers who use our dry lab access, bundle access, and integrated access models from whom we have generated revenues during the first month of the measurement period, which we believe is generally representative of our overall dry lab
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access, bundle access, and integrated customer base. We then calculate our net dollar retention as the ratio between the U.S. dollar amount of revenue generated from this cohort in the second year of the measurement period and the U.S. dollar amount of revenue generated in the first year. Any customer in the cohort that did not use our platform in the second year are included in the calculation as having contributed zero revenue in the second year.
Net dollar retention decreased to 108% as of September 30, 2025 compared to 109% as of September 30, 2024. This slight decrease was caused by slower revenue growth in EMEA, partially offset by strong performance in North America. The annualized revenue churn rate was 4.1%, which is in line with our historical averages.
Components of Results of Operations
For a discussion of our components of results of operations, see the “Operating and Financial Review and Prospects—Operating Results—Components of Results of Operations” section of our Annual Report on Form 20-F for the year ended December 31, 2024.
Results of Operations
Comparison of the Three Months Ended September 30, 2025 and 2024
The following table summarizes our results of operations:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Revenue | $ | 19,462 | $ | 15,853 | $ | 3,609 | 23 | % | ||||||||||||||||||
| Cost of revenue | (6,555) | (5,199) | (1,356) | 26 | % | |||||||||||||||||||||
| Gross profit | 12,907 | 10,654 | 2,253 | 21 | % | |||||||||||||||||||||
| Research and development costs | (8,067) | (7,874) | (193) | 2 | % | |||||||||||||||||||||
| Selling and marketing costs | (8,670) | (7,306) | (1,364) | 19 | % | |||||||||||||||||||||
| General and administrative costs | (13,889) | (10,880) | (3,009) | 28 | % | |||||||||||||||||||||
| Other operating income, net | (143) | 43 | (186) | (433) | % | |||||||||||||||||||||
| Operating loss | (17,862) | (15,363) | (2,499) | 16 | % | |||||||||||||||||||||
| Interest income | 622 | 855 | (233) | (27) | % | |||||||||||||||||||||
| Interest expense | (1,663) | (588) | (1,075) | 183 | % | |||||||||||||||||||||
| Fair value adjustments on warrant obligations | (607) | 182 | (789) | (434) | % | |||||||||||||||||||||
| Foreign exchange gains (losses), net | 131 | (3,394) | 3,525 | (104) | % | |||||||||||||||||||||
| Loss before income taxes | (19,379) | (18,308) | (1,071) | 6 | % | |||||||||||||||||||||
| Income tax expense | (642) | (130) | (512) | (394) | % | |||||||||||||||||||||
| Loss for the period | $ | (20,021) | $ | (18,438) | $ | (1,583) | 9 | % | ||||||||||||||||||
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Revenue
The following table presents revenue by stream:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| SOPHiA DDM Platform | $ | 18,667 | $ | 15,584 | $ | 3,083 | 20 | % | ||||||||||||||||||
| Workflow equipment and services | 795 | 269 | 526 | 196 | % | |||||||||||||||||||||
| Total revenue | $ | 19,462 | $ | 15,853 | $ | 3,609 | 23 | % | ||||||||||||||||||
Revenue was $19.5 million for the three months ended September 30, 2025, compared to $15.9 million for the three months ended September 30, 2024. This increase was primarily attributable to an increase in SOPHiA DDM Platform revenue, as well as a foreign exchange benefit of $0.7 million related to favorable movements in exchange rates between key transactional currencies, particularly the Euro, and our presentation currency, the U.S. dollar as they impact our conversion of foreign currency revenue into US dollars. SOPHiA DDM Platform revenue was $18.7 million for the three months ended September 30, 2025 as compared to $15.6 million for the three months ended September 30, 2024. This increase was primarily attributable to increased usage across our existing customers as well as growth in MSK-ACCESS. Revenue from Alamut usage increased modestly by $0.1 million. Workflow equipment and services revenue was $0.8 million and $0.3 million for the three months ended September 30, 2025 and 2024. This increase was primarily attributable to an increase in workflow automation equipment installations.
Cost of Revenue
The following table presents cost of revenue, gross profit, and gross margin:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Cost of revenue | $ | (6,555) | $ | (5,199) | $ | (1,356) | 26 | % | ||||||||||||||||||
| Gross profit | $ | 12,907 | $ | 10,654 | $ | 2,253 | 21 | % | ||||||||||||||||||
| Gross margin | 66 | % | 67 | % | ||||||||||||||||||||||
Cost of revenue was $6.6 million for the three months ended September 30, 2025 as compared to $5.2 million for the three months ended September 30, 2024. The increase was primarily driven by increases of $0.4 million in amortization of capitalized development costs as newly developed products were commercialized, $0.5 million in materials associated with higher volumes driven by automation equipment and $0.4 million in implementation costs; partially offset by a $0.1 million decrease in inventory reserve and inventory scrap. Gross profit margin to remained relatively consistent at 66% for the three months ended September 30, 2025 as compared to 67% for the three months ended September 30, 2024.
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Operating Expenses
The following table presents research and development costs, selling and marketing costs, general and administrative costs, and other operating income, net:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Research and development costs | $ | (8,067) | $ | (7,874) | $ | (193) | 2 | % | ||||||||||||||||||
| Selling and marketing costs | (8,670) | (7,306) | (1,364) | 19 | % | |||||||||||||||||||||
| General and administrative costs | (13,889) | (10,880) | (3,009) | 28 | % | |||||||||||||||||||||
| Other operating income (expense), net | (143) | 43 | (186) | (433) | % | |||||||||||||||||||||
| Total operating expenses | $ | (30,769) | $ | (26,017) | $ | (4,752) | 18 | % | ||||||||||||||||||
Research and Development Costs
Research and development costs were $8.1 million for the three months ended September 30, 2025 as compared to $7.9 million for the three months ended September 30, 2024. The increase was primarily driven by a $0.7 million increase from social charges on equity-based compensation as a result of appreciation in the price of our ordinary shares and $0.2 million in foreign exchange impact on salary expense as the majority of our R&D team is based in Switzerland and France and are compensated in Swiss francs or euros. These increases were partially offset by a $0.4 million decrease as resources were shifted to support implementation projects, a $0.2 million increase in development costs of internal and external labor that were capitalized and a $0.2 million decrease in lab supplies consumed and professional services-related expenses as a result of our ongoing cost-saving measures.
Selling and Marketing Costs
Selling and marketing costs were $8.7 million for the three months ended September 30, 2025 as compared to $7.3 million for the three months ended September 30, 2024. The increase was primarily attributable to a $1.4 million increase in employee-related expenses, including commissions and share-based compensation, which reflects both the expansion of our sales force and improved sales team performance. Included in the increase was $0.1 million of foreign exchange impact on salary expenses and a $0.2 million increase from social charges on equity-based compensation as a result of appreciation in the price of our ordinary shares.
General and Administrative Costs
General and administrative costs were $13.9 million for three months ended September 30, 2025 as compared to $10.9 million for the three months ended September 30, 2024. This increase was primarily attributable to a $1.4 million increase in employee-related expenses, including share-based compensation, which included a $1.2 million increase from social charges on equity-based compensation as a result of appreciation in the price of our ordinary shares and a $0.2 million foreign exchange impact on salary expense. Additional increases related to $0.6 million in legal expenses related to the Guardant Health litigation, $0.4 million in costs related to our shelf registration statement and an at-the-market offering program, as well as $0.4 million increase in regulatory affairs-related expenses.
Other Operating Income, Net
Other operating expense, net was $0.1 million for the three months ended September 30, 2025, compared to an income of less than $0.1 million for three months ended September 30, 2024. This change is primarily attributable to $0.1 million of non-recoverable VAT costs.
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Interest Income
The following table presents interest income:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Interest income | $ | 622 | $ | 855 | $ | (233) | (27) | % | ||||||||||||||||||
Interest income was $0.6 million for the three months ended September 30, 2025, compared to $0.9 million for the three months ended September 30, 2024. The decrease was primarily driven by lower average cash balances held in interest-earning bank accounts and short-term deposits, as well as a decline in overall interest rates.
Interest Expense
The following table presents interest expense:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Interest expense | $ | (1,663) | $ | (588) | $ | (1,075) | 183 | % | ||||||||||||||||||
Interest expense was $1.7 million for the three months ended September 30, 2025, compared to $0.6 million for the three months ended September 30, 2024. The increase was primarily driven by a $1.0 million increase in interest expense related to additional borrowings under the Perceptive Credit Agreement late in the second quarter of 2025.
Fair value Adjustments on Warrant Obligations
The following table presents fair value adjustments on warrant obligations:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Fair value adjustments on warrant obligations | $ | (607) | $ | 182 | $ | (789) | (434) | % | ||||||||||||||||||
Fair value adjustments on warrant obligations had a loss of $0.6 million for the three months ended September 30, 2025, compared to a gain of $0.2 million for the three months ended September 30, 2024. This decrease was due to changes in the fair value resulting from an increase in the price of our underlying shares between September 30, 2024 and September 30, 2025.
Foreign Exchange Gains (Losses), net
The following table presents foreign exchange gains (losses), net:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Foreign exchange gain (losses), net | $ | 131 | $ | (3,394) | $ | 3,525 | (104) | % | ||||||||||||||||||
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Foreign exchange gains, net were $0.1 million for the three months ended September 30, 2025, compared to foreign exchange losses, net of $3.4 million for the three months ended September 30, 2024. This decrease in foreign exchange losses was primarily driven by a $4.7 million increase in unrealized foreign exchange gains, net, partially offset by a $1.2 million increase in realized foreign exchange losses, net, largely resulting from a lower revaluation of intercompany foreign currency receivable balances into our functional currency, the Swiss franc. Unrealized gains and losses do not constitute a cash impact until the related transactions are settled.
Income Tax Expense
The following table presents income tax expense:
| Three months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Income tax expense | $ | (642) | $ | (130) | $ | (512) | (394) | % | ||||||||||||||||||
Income tax expense was $0.6 million for the three months ended September 30, 2025 as compared to $0.1 million for the three months ended September 30, 2024. The increase in tax expense was primarily attributable to an increase in our income tax expense in France in 2025. However, this impact is expected to be cash neutral due to our existing tax credit position.
Comparison of the Nine Months Ended September 30, 2025 and 2024
The following table summarizes our results of operations:
| Nine months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Revenue | $ | 55,564 | $ | 47,440 | $ | 8,124 | 17 | % | ||||||||||||||||||
| Cost of revenue | (18,179) | (15,605) | (2,574) | 16 | % | |||||||||||||||||||||
| Gross profit | 37,385 | 31,835 | 5,550 | 17 | % | |||||||||||||||||||||
| Research and development costs | (25,678) | (25,223) | (455) | 2 | % | |||||||||||||||||||||
| Selling and marketing costs | (26,238) | (21,515) | (4,723) | 22 | % | |||||||||||||||||||||
| General and administrative costs | (37,790) | (34,288) | (3,502) | 10 | % | |||||||||||||||||||||
| Other operating (loss) income, net | (69) | 67 | (136) | (203) | % | |||||||||||||||||||||
| Operating loss | (52,390) | (49,124) | (3,266) | 7 | % | |||||||||||||||||||||
| Interest income | 1,491 | 2,707 | (1,216) | (45) | % | |||||||||||||||||||||
| Interest expense | (2,881) | (1,232) | (1,649) | (134) | % | |||||||||||||||||||||
| Fair value adjustments on warrant obligations | (587) | 266 | (853) | (321) | % | |||||||||||||||||||||
| Foreign exchange gains (losses), net | (3,546) | 655 | (4,201) | (641) | % | |||||||||||||||||||||
| Loss before income taxes | (57,913) | (46,728) | (11,185) | 24 | % | |||||||||||||||||||||
| Income tax expense | (1,907) | (607) | (1,300) | 214 | % | |||||||||||||||||||||
| Loss for the period | $ | (59,820) | $ | (47,335) | $ | (12,485) | 26 | % | ||||||||||||||||||
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Revenue
The following table presents revenue by stream:
| Nine months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| SOPHiA DDM Platform | $ | 53,892 | $ | 46,302 | $ | 7,590 | 16 | % | ||||||||||||||||||
| Workflow equipment and services | 1,672 | 1,138 | 534 | 47 | % | |||||||||||||||||||||
| Total revenue | $ | 55,564 | $ | 47,440 | $ | 8,124 | 17 | % | ||||||||||||||||||
Revenue was $55.6 million for the nine months ended September 30, 2025 as compared to $47.4 million for the nine months ended September 30, 2024. This increase was primarily attributable to an increase in SOPHiA DDM Platform revenue, as well as a foreign exchange tailwind of $0.9 million, related to favorable movements in exchange rates between key transactional currencies, particularly the Euro, and our presentation currency, the U.S. dollar, as it impacts revenue. SOPHiA DDM Platform revenue was $53.9 million for the nine months ended September 30, 2025 as compared to $46.3 million for the nine months ended September 30, 2024. This increase was primarily attributable to new customers onboarded onto our platform and increased usage across our existing customers primarily in the EMEA and NORAM. Revenue from our Alamut product increased by $0.4 million. Workflow equipment and services revenue was $1.7 million and $1.1 million for the nine months ended September 30, 2025 and 2024 respectively. This increase was primarily attributable to an increase in workflow automation equipment installations.
Cost of Revenue
The following table presents cost of revenue, gross profit, and gross margin:
| Nine months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Cost of revenue | $ | (18,179) | $ | (15,605) | $ | (2,574) | 16 | % | ||||||||||||||||||
| Gross profit | $ | 37,385 | $ | 31,835 | $ | 5,550 | 17 | % | ||||||||||||||||||
| Gross margin | 67 | % | 67 | % | ||||||||||||||||||||||
Cost of revenue was $18.2 million for the nine months ended September 30, 2025 as compared to $15.6 million for the nine months ended September 30, 2024. The increase was primarily driven by a $1.5 million increase in amortization of capitalized development costs as newly developed products were commercialized, a $0.6 increase in materials costs associated with higher volumes including automation equipment related costs, and a $0.8 million increase in maintenance and customer support costs due to a higher volume of update releases; partially offset by a $0.4 million decrease in inventory reserve and inventory scrap. The gross profit margin was 67% for the nine months ended September 30, 2025 and was unchanged as compared to 67% for the nine months ended September 30, 2024.
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Operating Expenses
The following table presents research and development costs, selling and marketing costs, general and administrative costs, and other operating income, net:
| (Amounts in USD thousands, except %) | Nine months ended September 30, | Change | ||||||||||||||||||||||||
| 2025 | 2024 | $ | % | |||||||||||||||||||||||
| Research and development costs | $ | (25,678) | $ | (25,223) | $ | (455) | 2 | % | ||||||||||||||||||
| Selling and marketing costs | (26,238) | (21,515) | (4,723) | 22 | % | |||||||||||||||||||||
| General and administrative costs | (37,790) | (34,288) | (3,502) | 10 | % | |||||||||||||||||||||
| Other operating income (expense), net | (69) | 67 | (136) | (203) | % | |||||||||||||||||||||
| Total operating expenses | $ | (89,775) | $ | (80,959) | $ | (8,816) | 11 | % | ||||||||||||||||||
Research and Development Costs
Research and development costs were $25.7 million for the nine months ended September 30, 2025 as compared to $25.2 million for the nine months ended September 30, 2024. The increase was primarily driven by a $1.5 million increase in employee-related expenses, including share-based compensation, which includes a $0.6 million foreign exchange impact on salary expense and a $0.6 million increase in social charges on equity-based compensation as a result of appreciation in the price of our ordinary shares. These increases were partially offset by a $0.4 million decrease related to an R&D grant in France, a $0.3 million decrease in professional services-related expenses and a $0.3 million decrease in lab supplies and office expenses as a result of our ongoing cost-saving measures.
Selling and Marketing Costs
Selling and marketing costs were $26.2 million for the nine months ended September 30, 2025 as compared to $21.5 million for the nine months ended September 30, 2024. The increase was primarily attributable to a $3.4 million increase in employee-related expenses, including commissions and share-based compensation, as we expanded our sales force, and includes a $0.2 million foreign exchange impact on salary expense and a $0.2 million increase in social charges on equity-based compensation as a result of appreciation in the price of our ordinary shares. Our commissions expenses have increased as a result of a larger team on commissions based programs and the improved overall performance of our sales team. Additionally, there was a $0.6 million increase in marketing spend related to targeted campaigns aimed at accelerating penetration in key markets and a $0.6 million increase in shipping costs due to higher sales volumes.
General and Administrative Costs
General and administrative costs were $37.8 million for the nine months ended September 30, 2025 as compared to $34.3 million for the nine months ended September 30, 2024. This increase was primarily attributable to a $2.1 million increase in employee-related expenses, including share-based compensation, driven by increased headcount to support operational growth and including a $0.5 million foreign exchange impact on salary expense and a $0.9 million increase social charges on equity-based compensation as a result of appreciation in the price of our ordinary shares. Additional increases related to $0.6 million in legal expenses related to the Guardant Health litigation and $0.4 million in costs related to our shelf registration and an at-the-market offering program.
Other Operating Income, Net
Other operating expense, net was less than $0.1 million for the nine months ended September 30, 2025 compare to an income of less than $0.1 million for the nine months ended September 30, 2024.
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Interest Income
The following table presents interest income:
| Nine months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Interest income | $ | 1,491 | $ | 2,707 | $ | (1,216) | (45) | % | ||||||||||||||||||
Interest income was $1.5 million for the nine months ended September 30, 2025, compared to $2.7 million for the nine months ended September 30, 2024. The decrease was primarily driven by lower average cash balances held in interest-earning bank accounts and short-term deposits, as well as an overall decline in interest rates.
Interest Expense
The following table presents interest expense:
| Nine months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Interest expense | $ | (2,881) | $ | (1,232) | $ | (1,649) | 134 | % | ||||||||||||||||||
Interest expense was $2.9 million for the nine months ended September 30, 2025, compared to $1.2 million for the nine months ended September 30, 2024. The increase was primarily driven by a $1.6 million increase in interest expense related to additional borrowings under the Perceptive Credit Agreement.
Fair value Adjustments on Warrant Obligations
The following table presents fair value adjustments on warrant obligations:
| Nine months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Fair value adjustments on warrant obligations | $ | (587) | $ | 266 | $ | (853) | (321) | % | ||||||||||||||||||
Fair value adjustments on warrant obligations had a loss of $0.6 million for the nine months ended September 30, 2025, compared to a gain of $0.3 million for the nine months ended September 30, 2024. This decrease was due to changes in the fair value resulting from an increase in the price of our underlying shares between September 30, 2024 and September 30, 2025.
Foreign Exchange Gains (Losses), net
The following table presents foreign exchange gains (losses), net:
| Nine months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Foreign exchange (losses) gains, net | $ | (3,546) | $ | 655 | $ | (4,201) | (641) | % | ||||||||||||||||||
Foreign exchange losses, net were $3.5 million for the nine months ended September 30, 2025, compared to foreign exchange gains, net of $0.7 million for the nine months ended September 30, 2024. This increase in foreign exchange losses was primarily driven by a $4.9 million increase in unrealized foreign exchange losses,
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net, largely resulting from the revaluation of intercompany foreign currency receivable balances into our functional currency, the Swiss franc; partially offset by a $0.7 million increase in realized foreign exchange gains, net. Unrealized gains and losses do not constitute a cash impact until the related transactions are settled.
Income Tax Expense
The following table presents income tax expense:
| Nine months ended September 30, | Change | |||||||||||||||||||||||||
| (Amounts in USD thousands, except %) | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Income tax expense | $ | (1,907) | $ | (607) | $ | (1,300) | 214 | % | ||||||||||||||||||
Income tax expense was $1.9 million for the nine months ended September 30, 2025 as compared to $0.6 million for the nine months ended September 30, 2024. The increase in tax expense was primarily attributable to an increase in our income tax expense in France in 2025. However, this impact is expected to be cash neutral due to our existing tax credit position.
Liquidity and Capital Resources
Sources of Capital Resources
Our principal sources of liquidity were cash and cash equivalents totaling $81.6 million and $80.2 million as of September 30, 2025 and December 31, 2024, respectively, which were held for a variety of growth initiatives and investments in our SOPHiA DDM Platform and related solutions, applications, products, and services as well as working capital purposes. Our cash and cash equivalents are comprised of cash on hand, bank deposits, money market funds, and bank and other short-term highly liquid investments with original maturities of three months or less. With $81.6 million in cash on hand we believe we have adequate liquidity to run the business for the next year.
On May 2, 2024 (the “closing date”), SOPHiA GENETICS SA and our subsidiary SOPHiA GENETICS, Inc. entered into a credit agreement and guaranty (the “Perceptive Credit Agreement”) with Perceptive Credit Holdings IV, LP, as lender and administrative agent, pursuant to which we may borrow up to $50.0 million principal amount of term loans, including (i) an initial tranche of $15.0 million principal amount of term loans on the closing date and (ii) up to $35.0 million principal amount of term loans that we may draw upon on or prior to March 31, 2026, subject to satisfaction of certain customary conditions. We drew down $35.0 million of the second tranche of term loans on June 25, 2025. The term loans are scheduled to mature on the fifth anniversary of the closing date and accrue interest at Term Secured Overnight Financing Rate (“SOFR”) plus 6.25% per annum; provided that upon the occurrence and during the continuation of any event of default, the term loans will accrue interest at Term SOFR plus 9.25% per annum. The obligations under the Perceptive Credit Agreement are secured by substantially all of our and certain of our subsidiaries’ assets. The Perceptive Credit Agreement contains customary covenants, including an affirmative covenant to maintain qualified cash of at least $3.0 million, an affirmative last twelve months revenue covenant tested on a quarterly basis beginning June 30, 2024, and negative covenants including limitations on indebtedness, liens, fundamental changes, asset sales, investments, dividends and other restricted payments and other matters customarily restricted in such agreements. We remain in full compliance with all covenants contained in the Perceptive Credit Agreement as of September 30, 2025.
In addition, on May 2, 2024, we issued to Perceptive Credit Holdings IV, LP a warrant certificate representing the right to purchase up to 400,000 ordinary shares at $4.9992 per share, with 200,000 ordinary shares available immediately and an additional 200,000 ordinary shares that became available upon the drawdown of the second tranche of the term loans on June 25, 2025. The purchase rights represented by the warrant certificate is exercisable, on a cash basis, at any time prior to the tenth anniversary of the applicable date of availability.
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On April 23, 2024, we entered into a credit agreement (the “Credit Facility”) with Credit Suisse SA for up to CHF0.1 million ($0.1 million) to be used for cash credits, contingent liabilities, or as margin for OTC derivative transactions. Borrowings under the Credit Facility will bear interest at a rate to be established between us and Credit Suisse SA at the time of each draw down. As of September 30, 2025, we had no borrowings outstanding under the Credit Facility.
In August 2025, we established a new at-the-market (ATM) offering program pursuant to which we may sell, from time to time, ordinary shares having an aggregate offering price of $50.0 million. For the three months ended September 30, 2025, we did not sell any ordinary shares under this ATM program.
We have funded our operations primarily through equity financing and through revenue generated from the sale of access to our SOPHiA DDM Platform and related licenses and services. Invoices for our products and services are a substantial source of revenue for our business, which are included on our condensed consolidated balance sheet as trade receivables prior to collection. Accordingly, collections from our customers have a material impact on our cash flows from operating activities. As we expect our revenue to grow, we also expect our accounts receivable and inventory balances to increase, which could result in greater working capital requirements.
Operating Capital Requirements
We expect to continue to incur net losses for the foreseeable future as we continue to devote substantial resources to research and development, in particular, to further expand the applications and modalities of our SOPHiA DDM Platform in order to accommodate multimodal data analytics capabilities across a wide range of disease areas; selling and marketing efforts for our SOPHiA DDM Platform to establish and maintain relationships with our collaborators and customers; and obtaining regulatory clearances or approvals for our SOPHiA DDM Platform and our applications, products, and services. We believe that our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs for at least the next twelve months. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we currently expect. Our future capital requirements will depend on many factors, which are outlined in our Annual Report on Form 20-F for the year ended December 31, 2024 and our subsequent filings with the SEC.
Cash Flows
The following table summarizes our cash flows for nine months ended September 30, 2025 and 2024:
| Nine months ended September 30, | ||||||||||||||
| (Amounts in USD thousands) | 2025 | 2024 | ||||||||||||
(As Recast)1 | ||||||||||||||
| Net cash provided from/(used in): | ||||||||||||||
| Operating activities | $ | (27,757) | $ | (33,829) | ||||||||||
| Investing activities | (5,167) | (3,495) | ||||||||||||
| Financing activities | 30,562 | 11,025 | ||||||||||||
| Net decrease in cash and cash equivalents | $ | (2,362) | $ | (26,299) | ||||||||||
| Effect of exchange differences on cash and cash equivalents | $ | 3,746 | $ | (1,165) | ||||||||||
1Refer to “Note 1—Change in accounting policies—Statement of Cash Flows - Interest Classification”, included as Exhibit 99.1 to the Report on Form 6-K to which this discussion and analysis is included as Exhibit 99.2, for details on change in accounting policy.
Operating Activities
Net cash used in operating activities was $27.8 million for the nine months ended September 30, 2025, compared to $33.8 million for the nine months ended September 30, 2024. The decrease in cash used in operating activities was primarily driven by working capital changes which resulted in sources of $5.6 million of cash from working capital in the nine months ended September 30, 2025 compared to uses of cash from working capital in the nine months ended September 2024 of $1.4 million. This increase was driven by changes
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in other current assets, primarily the receipt of R&D tax credits, in the nine months ended September 30, 2025 and increases in accounts payable, accrued expenses, deferred contract revenue and other liabilities which was driven by increases in accrued expenses and deferred revenue related to the timing of accruals and customer receipts in the nine months ended September 30, 2025. Cash used in operations from our net loss, adjusted for non-monetary items, was $33.2 million for the nine months ended September 30, 2025 compared to $32.1 million for the same period in 2024.
Investing Activities
Net cash used in investing activities was $5.2 million for the nine months ended September 30, 2025, compared to $3.5 million for the nine months ended September 30, 2024. The increase was primarily driven by a $1.3 million decrease in interest income received due to lower average cash balances held in interest-earning bank accounts and short-term deposits, as well as a decline in overall interest rates, in addition to $0.5 million related to the purchase of a non-controlling minority equity interest in A.D.A.M. Innovations.
Financing Activities
Net cash provided from financing activities was $30.6 million for the nine months ended September 30, 2025, compared to $11.0 million for the nine months ended September 30, 2024. The improvement was primarily driven by a $20.6 million increase in proceeds from borrowings, net of transaction costs, resulting from the drawdown of the second tranche under our Perceptive Credit Agreement.
Non-IFRS Measures
To supplement our financial statements prepared in accordance with IFRS, we provide investors with certain non-IFRS financial measures, including adjusted EBITDA and constant currency revenue. The presentation of the non-IFRS financial measures have limitations and you should not consider them in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. We believe that these non-IFRS financial measures provide useful information about our performance, enhance overall understanding of past performance and future prospects and allow for greater transparency with respect to metrics used by our managements in its financial and operational decision-making.
Adjusted EBITDA
We define adjusted EBITDA as loss for the period before depreciation, amortization, interest income, interest expense, fair value adjustments on warrant obligations, foreign exchange (losses) gains, net, income tax (expense) benefit, share-based compensation expense, non-cash pension expense, certain transaction costs and litigation expenses.
Adjusted EBITDA is a key business metric we use to evaluate our overall financial performance and to facilitate consistent comparisons across reporting periods. Adjusted EBITDA reflects our earnings excluding items that we believe are not related to our core operating performance, or are non-cash income and expense. We believe this metric provides a meaningful representation of our operating profitability as it excludes items that may fluctuate significantly between periods and are not reflective of our ongoing business operations. We believe that this non-IFRS financial measure provides useful information about our performance, enhances overall understanding of past performance and future prospects and allows for greater transparency with respect to metrics used by our management in its financial and operational decision-making.
Adjusted EBITDA has limitations as a financial measure, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. For example:
•Adjusted EBITDA excludes the impact of depreciation. Although depreciation is a non-cash charge, the assets being depreciated may need to be replaced in the future and this non-IFRS measure does not reflect capital expenditure requirements for such replacements or for new capital expenditures;
•Adjusted EBITDA excludes 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;
•Adjusted EBITDA excludes the impact of interest income. Interest income will continue to be for the foreseeable future recurring income based on the company’s financial assets;
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•Adjusted EBITDA excludes 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;
•Adjusted EBITDA excludes the impact of foreign exchange gains (losses), net. Foreign exchange gains and losses will continue to be for the foreseeable future a recurring benefit or expense incurred as the company participates in transactions outside of the company’s functional currency;
•Adjusted EBITDA excludes 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;
•Adjusted EBITDA excludes the impact of amortization of capitalized research and development expenses and intangible assets. Amortization of these assets will continue to be for the foreseeable future a recurring expense incurred as the Company continues to invest in developing revenue-generating products through research and development. 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;
•Adjusted EBITDA excludes 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;
•Adjusted EBITDA excludes 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;
•Adjusted EBITDA excludes the impact of certain capital markets transaction costs. These costs may occur from time to time in the future as needed to complete the transactions;
•Adjusted EBITDA excludes the impact of litigation expenses related to the company's defense of lawsuits filed by Guardant Health. These expenses are expected to continue for the duration of the litigation and may increase in future periods.
Additionally other companies, including companies in our industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures.
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The following table reconciles IFRS net loss to adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| IFRS loss for the period | $ | (20,021) | $ | (18,438) | $ | (59,820) | $ | (47,335) | ||||||||||||||||||
| Exclude the impact of: | ||||||||||||||||||||||||||
| Depreciation | $ | 1,022 | $ | 1,152 | $ | 2,949 | $ | 3,439 | ||||||||||||||||||
| Amortization | 1,402 | 1,061 | 4,142 | 2,870 | ||||||||||||||||||||||
| Interest income | (622) | (855) | (1,491) | (2,707) | ||||||||||||||||||||||
| Interest expense | 1,663 | 588 | 2,881 | 1,232 | ||||||||||||||||||||||
| Fair value adjustments on warrant obligations | 607 | (182) | 587 | (266) | ||||||||||||||||||||||
| Foreign exchange losses (gains), net | (131) | 3,394 | 3,546 | (655) | ||||||||||||||||||||||
| Income tax expense | 642 | 130 | 1,907 | 607 | ||||||||||||||||||||||
Share-based compensation expense(1)(3) | 4,146 | 3,613 | 12,337 | 11,410 | ||||||||||||||||||||||
Non-cash pension expense(2) | 87 | 106 | 262 | 279 | ||||||||||||||||||||||
Transaction costs(4) | 445 | — | 445 | — | ||||||||||||||||||||||
Litigation expenses(5) | 605 | — | 605 | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | (10,154) | $ | (9,431) | $ | (31,649) | $ | (31,126) | ||||||||||||||||||
(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)Share-based compensation expense does not include social charges on equity-based compensation of $1.3 million and $(0.7) million for the three months ended September 30, 2025 and 2024, respectively, and $1.3 million and $(0.4) million for the nine months ended September 30, 2025 and 2024, respectively.
(4)Transaction costs consists of expenses incurred in connection with the Company’s shelf registration statement and the ATM program.
(5)Litigation expenses consists of expenses related to the company's defense of lawsuits filed by Guardant Health.
Constant Currency Revenue
We define constant currency revenue as revenues received in local (non-U.S. dollar) currencies translated into U.S. dollars using the same average foreign currency exchange rates that we used to translate local currency revenues for the comparable reporting period of the prior year. The company then calculates the difference between the IFRS revenue and the constant currency revenue to yield the “constant currency impact” for the current period.
Constant currency revenue is a key business metric we use to assess our underlying revenue performance, excluding the impact of foreign currency exchange rate fluctuations. Since we operate in multiple international markets, our reported revenue is affected by changes in foreign currency exchange rates, which can obscure underlying trends in our business performance. We believe this metric provides our management with an additional measure of our revenue and growth by removing the effects of currency movements. We believe this
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allows management and investors to better understand or performance and make more meaningful comparisons across reporting periods.
Constant currency revenue has limitations as a financial measure, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. For example:
•Constant currency revenue excludes the impact of foreign exchange rate fluctuations. While this allows better comparability between periods, this does not reflect actual changes in revenues and should not be considered in isolation.
•Constant currency revenue uses a monthly average exchange rate which does not reflect actual economic impact. This application may overstate or understate the true impact of foreign currency on revenue.
Additionally other companies, including companies in our industry, may calculate this non-IFRS measures differently, which reduces its usefulness as a comparative measure.
The following table reconciles IFRS revenue to constant currency revenue for the three and nine months ended September 30, 2025 and 2024:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| IFRS revenue | $ | 19,462 | $ | 15,853 | $ | 55,564 | $ | 47,440 | ||||||||||||||||||
Current period constant currency impact | (698) | — | (863) | — | ||||||||||||||||||||||
| Constant currency revenue | $ | 18,764 | $ | 15,853 | $ | 54,701 | $ | 47,440 | ||||||||||||||||||
Contractual Obligations and Other Commitments
In September 2025, the Company signed a stock purchase and subscription agreement to acquire a non-controlling minority equity interest in A.D.A.M. Innovations, formerly known as Genesis Healthcare, in two tranches totaling $2.0 million. The Company acquired shares totaling $0.5 million in September 2025 and shares totaling $1.5 million in October 2025.
Other than the investment in A.D.A.M. Innovations, as of September 30, 2025, there have been no other material changes to our contractual obligations and commitments from those described in the “Operating and Financial Review and Prospects” section of our Annual Report on Form 20-F for the year ended December 31, 2024.
Internal Control over Financial Reporting
There were no changes to our internal control over financial reporting during the three months ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Off-Balance Sheet Arrangements
We have a minimum purchase agreement with a vendor related to computational and hosting-related costs. As part of the agreement, we have a total minimum commitment of approximately CHF64.1 million ($80.5 million) from the period beginning November 1, 2022 through October 31, 2027 and an additional two-year grace period to meet the minimum commitment by October 31, 2029. As of September 30, 2025 and December 31, 2024, our remaining commitments are CHF46.8 million ($60.8 million) and CHF53.4 million ($58.8 million), respectively.
Other than the above agreement, we did not have, during the periods presented, and we do not currently have, any off-balance sheet arrangements or commitments that may have a material current or future effect on
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financial condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenues or expenses.
Quantitative and Qualitative Disclosures about Market Risk
Interest Rate Risk
We had cash and cash equivalents totaling $81.6 million as of September 30, 2025, which are comprised of cash on hand, bank deposits, money market funds, and bank and other short-term highly liquid investments with original maturities of three months or less. Our cash equivalents are subject to market risk due to changes in interest rates. Fixed rate securities may have their market value adversely affected due to a rise in interest rates. Due in part to these factors, our future investment income may fall short of expectation due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates.
As of September 30, 2025, we currently have $50.0 million of debt outstanding under the Perceptive Credit Agreement. Based on the terms of the Perceptive Credit Agreement, the monthly interest expense fluctuates based on the SOFR reference rate that is two business days prior to the first day of the preceding calendar month. Given our outstanding debt under this agreement, we are subject to interest rate risk related to debt obligations if the SOFR were to move significantly.
We do not believe that a hypothetical 100 basis points change in interest rates would have a material effect on our business, financial condition, or results of operations. We do not enter into investments for trading or speculative purposes. We do not use any financial instruments to manage our interest rate risk exposure.
Foreign Exchange Risk
We operate internationally and a portion of our revenue, expenses, assets, liabilities, and cash flows are denominated in currencies other than our presentation currency. As a result, we are exposed to fluctuations in foreign exchange rates.
We do not believe that there have been material changes in our foreign exchange risk exposure from the disclosure included in the “Item 11. Quantitative and Qualitative Disclosures About Market Risk” section of our Annual Report on Form 20-F for the year ended December 31, 2024.
Credit Risk
We are exposed to credit risk from our operating activities, primarily trade receivables. Credit risk is the risk that a counterparty will be unable to meet its obligations under a financial instrument or customer contract.
Allowance is made for lifetime expected credit losses as invoices are issued. The amount of allowance initially recognized is based on historical experience, tempered by expected changes in future cash collections, due to, for example, expected improved customer liquidity or more active credit management.
We do not believe that credit risk had a material effect on our business, financial condition, or results of operations. The largest customer balance represented 9% of accounts receivable as of September 30, 2025, which is attributable to one of our largest distributors. This distributor has a strong payment history and is in good standing with us. Our cash and cash equivalents are deposited with reputable financial institutions. If customers representing a significant percentage of our trade receivables are unable to meet their payment obligations to us, we may suffer harm to our business, financial condition, or results of operations.
Inflation Risk
We believe our business is able to pass along increases in the costs of providing our applications, products, and services caused by inflation by increasing the prices of our applications, products, and services. For multi-year contracts, our general terms and conditions allow us to increase prices, at minimum on an annual basis. However, we do not believe that inflation had a material effect on our business, financial condition, or results of operations. If our costs were to become subject to significant inflationary pressures, we may not be able to fully
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offset such higher costs through price increases, or there may be a lag in our ability to increase contracted prices to our customers. Our inability or failure to do so could harm our business, financial condition, or results of operations.
Material Accounting Policies and Critical Estimates and Judgments
The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of accounting estimates. It also requires management to exercise judgment in applying our accounting policies. Disclosed below are the areas which require a high degree of judgment, significant assumptions and/or estimates. The most significant assumptions used in the financial statements are the underlying assumptions used in revenue recognition, capitalized internal development costs, share-based compensation, goodwill impairment testing, defined benefit pension liabilities, expected credit loss, income taxes, term loans, and warrant obligations. We base estimates and assumptions on historical experience when available and on various factors that we determined to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.
Our material accounting policies and critical estimates that involve a higher degree of judgment and complexity are described in the “Item 5. Operating and Financial Review and Prospects—E. Critical Accounting Estimates” section of our Annual Report on Form 20-F for the year ended December 31, 2024. There have been no material changes to our material accounting policies and critical estimates as disclosed therein, with the exception of our adoption of recent accounting pronouncements, as discussed below.
Recent Accounting Pronouncements
In connection with our adoption of IFRS Accounting Standards for the preparation of our financial statements, certain new accounting standards and interpretations have been published that are not mandatory for the December 31, 2024 reporting periods and have not been adopted early by us. These standards are not expected to have a material impact on the entity in the current or future reporting periods or on foreseeable future transactions. See Note 2 to the audited consolidated financial statements included in our Annual Report on Form 20-F for the year ended December 31, 2024 and Note 1 of our unaudited interim condensed consolidated financial statements included as Exhibit 99.1 to the Report on Form 6-K to which this discussion and analysis is included as Exhibit 99.2.
Emerging Growth Company Status
In April 2012, the JOBS Act was enacted. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards applicable to public companies. This provision allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. This transition period is only applicable under U.S. GAAP. As a result, we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required or permitted by the International Accounting Standards Board.
Subject to certain conditions, as an emerging growth company, we intend to rely on certain of these exemptions, including without limitation, (i) providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement that may be adopted by the Public Company Accounting Oversight Board, regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements, known as the critical audit matters. We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (ii) December 31, 2026; (iii) the date on which we have issued more than $1.0 billion in non-convertible debt during the previous three years; and (iv) the date on which we are deemed to be a large accelerated filer under the rules of the SEC, which means the market value of our ordinary shares that are held by non-affiliates equals or exceeds $700.0 million as of the prior June 30th.
22
Exhibit 99.3
SOPHiA GENETICS Reports Third Quarter 2025 Results and Increases 2025 Revenue Guidance
BOSTON, United States and ROLLE, Switzerland, November 4, 2025 — SOPHiA GENETICS (Nasdaq: SOPH), a global leader in AI-driven precision medicine, today reported financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Financial Results
•Revenue was $19.5 million, up 23% year-over-year
•Gross margin was 66.3% on a reported basis and 73.1% on an adjusted basis, compared to 67.2% reported and 73.1% adjusted in the prior year period
•Net IFRS loss was $20.0 million, up 9% year-over-year; Adjusted EBITDA loss was $10.2 million, up 8% year-over-year; Excluding the impact of elevated Swiss social charges on equity-based compensation following share price appreciation, adjusted EBITDA loss would have been $8.8 million, representing a 13% year-over-year improvement
2025 Financial Outlook
•Full year revenue is now expected to be in the range of $75 to $77 million, representing year-over-year growth of 15% to 18%. This compares to the prior range of $72 to $76 million.
•Adjusted EBITDA loss is now expected to be between $39 and $41 million, which includes the impact of the Swiss social charges on equity-based compensation as well as the appreciation of the Swiss Franc relative to the U.S. Dollar and its impact on our costs.
"Q3 was an excellent quarter for SOPHiA GENETICS, with revenue growth accelerating for a third consecutive quarter to 23% as new business continues to come online,” said Jurgi Camblong, PhD., Chief Executive Officer and Co-founder. “We also demonstrated strong operating leverage as platform scalability and rigorous cost discipline resulted in a year-over-year adjusted EBITDA loss improvement when excluding the impact of elevated Swiss social charges on equity-based compensation.”
Camblong added, “Looking ahead, new business momentum remains strong. We signed an impressive cohort of 31 new customers in Q3, with an average contract value of those new signings up 180% year-over-year. We also delivered strong growth in the U.S., drove broad adoption of our Liquid Biopsy offering, and refreshed our momentum with BioPharma customers. Our AI-powered precision medicine platform, SOPHiA DDMTM, perfectly positions us to take advantage of growing market demand and deliver future growth.”
Third Quarter 2025 Business Highlights
Expanding usage of SOPHiA DDMTM with existing customers
•Performed a record 99,000 analyses on SOPHiA DDMTM, representing 9% year-over-year volume growth
•Reached 488 core genomics customers as of September 30, 2025, up from 462 customers at the end of Q3 2024
•Delivered strong growth in APAC and NORAM, with 35% and 26% year-over-year analysis volume growth, respectively
•Expanded to additional application areas at multiple top-ranked institutions in Q3, including Gustave Roussy in Paris, France adding multiple new Solid Tumor applications; Tulane University in New Orleans, U.S. adopting an additional HemOnc application; and New South Wales Health Pathology in Australia adding new applications in Solid Tumors
Landing new SOPHiA DDMTM customers to fuel future growth
•Landed an impressive 31 new customers in Q3 2025 who will implement SOPHiA DDMTM and begin generating revenue over the next twelve months, up from 22 new customers signed in Q3 2024
•Continued to demonstrate our ability to win larger accounts as the average contract value of new signings increased by 180% year-over-year
•Signed major new customers across geographies, including the Nice University Hospital in France who is adopting MSK-ACCESS® powered with SOPHiA DDMTM; Clinica MEDS in Chile, who is adopting
Rare Disorder applications; and the American University of Beirut, who is adopting MSK-IMPACT® Flex powered with SOPHiA DDMTM
Driving strong business growth in the U.S. market
•Delivered 30% year-over-year revenue growth in the U.S.
•Signed major new customers, including Baylor Scott & White Health in Texas who is adopting SOPHiA DDMTM for HemOnc and Geisinger Health System in Pennsylvania who is adopting Pharmacogenomics applications
Accelerating growth with new applications
•Recently signed major new customers to the Liquid Biopsy application MSK-ACCESS® powered with SOPHiA DDMTM, including Sunnybrook Health Sciences Center in Toronto, Canada and Health Services Laboratory in London
•Signed a total of 60 customers signed-to-adopt MSK-ACCESS® powered with SOPHiA DDMTM, with the majority expected to complete implementation and begin generating revenue over the next 3 - 6 months
•Launched SOPHiA DDMTM Digital Twins, an AI-powered research technology that creates dynamic, virtual representations of individual patients to simulate potential outcomes and help oncologists make better treatment decisions
Leveraging SOPHiA DDMTM to deliver value to BioPharma partners
•Announced major partnerships with Myriad Genetics in the U.S. and A.D.A.M. Innovations (previously “Genesis Healthcare”) in Japan to develop MSK-ACCESS® powered with SOPHiA DDMTM into a regulated, global companion diagnostic (CDx) assay
•Signed two major new partnerships with AstraZeneca in Q3 to (1) develop an optimized next generation sequencing (NGS) solution that leverages SOPHiA GENETICS's AI algorithms to detect genetic mutations in the PIK3CA/AKT1/PTEN pathway and (2) leverage SOPHiA GENETICS's multimodal AI Factories to generate evidence on the efficacy, value, and real-world impact of therapies for breast cancer
Growing sustainably by maintaining an obsession with operational excellence
•Achieved a 73.1% adjusted gross margin in Q3 by continuing to optimize compute costs and leverage the scale of the cloud-native SOPHiA DDMTM platform
•Continuous rigorous cost discipline and improved adjusted EBITDA loss by 13% year-over-year to $8.8 million after excluding the impact of elevated Swiss social charges on equity-based compensation (an expense this quarter of $1.3 million compared to a benefit of $0.7 million in Q3 2024)
•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
Earnings Call and Webcast Information
SOPHiA GENETICS will host a conference call and live webcast to discuss the third quarter 2025 results on Tuesday, November 4, 2025, at 8:00 a.m. (08:00) Eastern Time / 2:00 p.m. (14:00) Central European Time. The call will be webcast live on the SOPHiA GENETICS Investor Relations website, ir.sophiagenetics.com. Additionally, an audio replay of the conference call will be available on the SOPHiA GENETICS website after its completion.
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, the non-cash portion of pensions paid in excess of actual contributions, certain transaction costs and litigation expenses that are necessary for such reconciliation.
To provide investors with additional information regarding the company’s financial results, SOPHiA GENETICS has disclosed here and elsewhere in this earnings release the following non-IFRS measures:
•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, the non-cash portion of pensions expense paid in excess of actual contributions to match the actuarial expense, certain transaction costs and litigation expenses.
•Adjusted EBITDA, which the company calculates as loss for the period before depreciation, amortization, interest income, interest expense, fair value adjustments on warrant obligations, foreign exchange (losses) gains, net, income tax (expense) benefit, share-based compensation expense, non-cash pension expenses, certain transaction costs and litigation expenses.
These non-IFRS measures are key measures used by SOPHiA GENETICS management and board of directors to evaluate its operating performance and generate future operating plans. The exclusion of certain expenses facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable charges. Accordingly, the company believes that these non-IFRS measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors.
These non-IFRS measures have limitations as financial measures, and you should not consider them in isolation or as a substitute for analysis of SOPHiA GENETICS’ results as reported under IFRS. Some of these limitations are:
•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. Amortization of these assets will continue to be for the foreseeable future a recurring expense incurred as the Company continues to invest in developing revenue-generating products through research and development. 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;
•These non-IFRS measures exclude the impact of certain capital markets transaction costs. These costs may occur from time to time in the future as needed to complete the transactions;
•These non-IFRS measures exclude the impact of litigation expenses related to the company's defense of lawsuits filed by Guardant Health. These expenses are expected to continue for the duration of the litigation and may increase in future periods;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
SOPHiA GENETICS operates internationally, and its revenues are generated primarily in the U.S. dollar, the euro and Swiss franc and, to a lesser extent, British pound, Australian dollar, Brazilian real, Turkish lira and Canadian dollar depending on the company’s customers’ geographic locations. Changes in revenue include the impact of changes in foreign currency exchange rates. We present the non-IFRS financial measure “constant currency revenue” (or similar terms such as constant currency revenue growth) to show changes in revenue without giving effect to period-to-period currency fluctuations. Under IFRS, revenues received in local (non-U.S. dollar) currencies are translated into U.S. dollars at the average monthly exchange rate for the month in which the transaction occurred. When the company uses the term “constant currency”, it means that it has translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. The company then calculates the difference between the IFRS revenue and the constant currency revenue to yield the “constant currency impact” for the current period.
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.
About SOPHiA GENETICS
SOPHiA GENETICS (Nasdaq: SOPH) is a cloud-native healthcare technology company on a mission to expand access to data-driven medicine by using AI to deliver world-class care to patients with cancer and rare disorders across the globe. It is the creator of SOPHiA DDM™, a platform that analyzes complex genomic and multimodal data and generates real-time, actionable insights for a broad global network of hospital, laboratory, and biopharma institutions. For more information, visit SOPHiAGENETICS.COM and connect with us on LinkedIn.
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 SOPHiA GENETICS future results of operations and financial position, business strategy, products and technology, partnerships and collaborations, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on SOPHiA GENETICS’ management’s beliefs and assumptions and on information currently available to the company’s management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in the company’s filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this press release speak only as of its date. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in the company’s expectations or any change in events, conditions, or
circumstances on which such statements are based, unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.
Investor and Media Contact:
Kellen Sanger
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Loss
(Amounts in USD thousands, except per share data)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Revenue | $ | 19,462 | $ | 15,853 | $ | 55,564 | $ | 47,440 | ||||||||||||||||||
| Cost of revenue | (6,555) | (5,199) | (18,179) | (15,605) | ||||||||||||||||||||||
| Gross profit | 12,907 | 10,654 | 37,385 | 31,835 | ||||||||||||||||||||||
| Research and development costs | (8,067) | (7,874) | (25,678) | (25,223) | ||||||||||||||||||||||
| Selling and marketing costs | (8,670) | (7,306) | (26,238) | (21,515) | ||||||||||||||||||||||
| General and administrative costs | (13,889) | (10,880) | (37,790) | (34,288) | ||||||||||||||||||||||
| Other operating (loss) income, net | (143) | 43 | (69) | 67 | ||||||||||||||||||||||
| Operating loss | (17,862) | (15,363) | (52,390) | (49,124) | ||||||||||||||||||||||
| Interest income | 622 | 855 | 1,491 | 2,707 | ||||||||||||||||||||||
| Interest expense | (1,663) | (588) | (2,881) | (1,232) | ||||||||||||||||||||||
| Fair value adjustments on warrant obligations | (607) | 182 | (587) | 266 | ||||||||||||||||||||||
| Foreign exchange (losses) gains, net | 131 | (3,394) | (3,546) | 655 | ||||||||||||||||||||||
| Loss before income taxes | (19,379) | (18,308) | (57,913) | (46,728) | ||||||||||||||||||||||
| Income tax expense | (642) | (130) | (1,907) | (607) | ||||||||||||||||||||||
| Loss for the period | (20,021) | (18,438) | (59,820) | (47,335) | ||||||||||||||||||||||
| Attributable to the owners of the parent | (20,021) | (18,438) | (59,820) | (47,335) | ||||||||||||||||||||||
| Basic and diluted loss per share | $ | (0.30) | $ | (0.28) | $ | (0.89) | $ | (0.72) | ||||||||||||||||||
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Comprehensive Loss
(Amounts in USD thousands)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Loss for the period | $ | (20,021) | $ | (18,438) | $ | (59,820) | $ | (47,335) | ||||||||||||||||||
| Other comprehensive (loss) income: | ||||||||||||||||||||||||||
| Items that may be reclassified to statement of loss | ||||||||||||||||||||||||||
| Currency translation adjustments | (366) | 6,990 | 11,230 | (2,149) | ||||||||||||||||||||||
| Total items that may be reclassified to statement of loss | (366) | 6,990 | 11,230 | (2,149) | ||||||||||||||||||||||
| Items that will not be reclassified to statement of loss (net of tax) | ||||||||||||||||||||||||||
| Remeasurement of defined benefit plans | 152 | (173) | 251 | (231) | ||||||||||||||||||||||
| Total items that will not be reclassified to statement of loss | 152 | (173) | 251 | (231) | ||||||||||||||||||||||
| Other comprehensive (loss) income for the period | $ | (214) | $ | 6,817 | $ | 11,481 | $ | (2,380) | ||||||||||||||||||
| Total comprehensive loss for the period | $ | (20,235) | $ | (11,621) | $ | (48,339) | $ | (49,715) | ||||||||||||||||||
| Attributable to owners of the parent | $ | (20,235) | $ | (11,621) | $ | (48,339) | $ | (49,715) | ||||||||||||||||||
SOPHiA GENETICS SA
Interim Condensed Consolidated Balance Sheets
(Amounts in USD thousands)
(Unaudited)
| September 30, 2025 | December 31, 2024 | |||||||||||||
| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 81,610 | $ | 80,226 | ||||||||||
| Accounts receivable | 8,455 | 7,436 | ||||||||||||
| Inventory | 6,680 | 5,868 | ||||||||||||
| Prepaids and other current assets | 6,735 | 5,875 | ||||||||||||
| Total current assets | 103,480 | 99,405 | ||||||||||||
| Non-current assets | ||||||||||||||
| Property and equipment | 4,915 | 5,209 | ||||||||||||
| Intangible assets | 34,681 | 28,998 | ||||||||||||
| Right-of-use assets | 12,706 | 14,168 | ||||||||||||
| Deferred tax assets | 1,666 | 1,767 | ||||||||||||
| Other non-current assets | 6,010 | 5,762 | ||||||||||||
| Total non-current assets | 59,978 | 55,904 | ||||||||||||
| Total assets | $ | 163,458 | $ | 155,309 | ||||||||||
| Liabilities and equity | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | $ | 6,056 | $ | 5,220 | ||||||||||
| Accrued expenses | 16,718 | 13,217 | ||||||||||||
| Deferred contract revenue | 10,040 | 5,732 | ||||||||||||
| Lease liabilities, current portion | 2,609 | 2,190 | ||||||||||||
| Warrant obligations | 1,504 | 444 | ||||||||||||
| Total current liabilities | 36,927 | 26,803 | ||||||||||||
| Non-current liabilities | ||||||||||||||
| Borrowings | 47,581 | 13,237 | ||||||||||||
| Lease liabilities, net of current portion | 13,183 | 14,603 | ||||||||||||
| Defined benefit pension liabilities | 4,409 | 3,839 | ||||||||||||
| Other non-current liabilities | 671 | 337 | ||||||||||||
| Total non-current liabilities | 65,844 | 32,016 | ||||||||||||
| Total liabilities | 102,771 | 58,819 | ||||||||||||
| Equity | ||||||||||||||
| Share capital | 4,188 | 4,188 | ||||||||||||
| Share premium | 472,438 | 472,244 | ||||||||||||
| Treasury shares | (632) | (702) | ||||||||||||
| Other reserves | 84,790 | 61,037 | ||||||||||||
| Accumulated deficit | (500,097) | (440,277) | ||||||||||||
| Total equity | 60,687 | 96,490 | ||||||||||||
| Total liabilities and equity | $ | 163,458 | $ | 155,309 | ||||||||||
SOPHiA GENETICS SA
Interim Condensed Consolidated Statements of Cash Flows
(Amounts in USD thousands)
(Unaudited)
| Nine months ended September 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
(As Recast)1 | ||||||||||||||
| Operating activities | ||||||||||||||
| Loss before tax | $ | (57,913) | $ | (46,728) | ||||||||||
| Adjustments for non-monetary items | ||||||||||||||
| Depreciation | 2,949 | 3,439 | ||||||||||||
| Amortization | 4,142 | 2,870 | ||||||||||||
| Finance expense (income), net | 5,009 | (2,333) | ||||||||||||
| Fair value adjustments on warrant obligations | 587 | (266) | ||||||||||||
| Expected credit loss allowance increase (reversal) | (7) | (252) | ||||||||||||
| Share-based compensation | 12,337 | 11,410 | ||||||||||||
| Movements in provisions and pensions | 492 | 246 | ||||||||||||
| Research tax credit | (752) | (460) | ||||||||||||
| Working capital changes | ||||||||||||||
| Decrease (increase) in accounts receivable | 31 | 3,813 | ||||||||||||
| Decrease (increase) in prepaids and other assets | 2,060 | (420) | ||||||||||||
| Decrease (increase) in inventory | (165) | 48 | ||||||||||||
| Increase (decrease) in accounts payables, accrued expenses, deferred contract revenue, and other liabilities | 3,678 | (4,822) | ||||||||||||
| Cash used in operating activities | (27,552) | (33,455) | ||||||||||||
| Income tax paid | (205) | (374) | ||||||||||||
| Net cash flows used in operating activities | (27,757) | (33,829) | ||||||||||||
| Investing activities | ||||||||||||||
| Purchase of property and equipment | (236) | (187) | ||||||||||||
| Acquisition of intangible assets | (223) | (195) | ||||||||||||
| Capitalized development costs | (5,697) | (5,854) | ||||||||||||
| Purchase of equity investments held at fair value | (493) | — | ||||||||||||
| Interest received | 1,482 | 2,741 | ||||||||||||
| Net cash flow used in investing activities | (5,167) | (3,495) | ||||||||||||
| Financing activities | ||||||||||||||
| Proceeds from exercise of share options | 199 | 370 | ||||||||||||
| Interest paid | (2,805) | (1,133) | ||||||||||||
| Proceeds from borrowings, net of transaction costs | 34,563 | 13,930 | ||||||||||||
| Payments of principal portion of lease liabilities | (1,395) | (2,142) | ||||||||||||
| Net cash flow provided by financing activities | 30,562 | 11,025 | ||||||||||||
| Increase (decrease) in cash and cash equivalents | (2,362) | (26,299) | ||||||||||||
| Effect of exchange differences on cash balances | 3,746 | (1,165) | ||||||||||||
| Cash and cash equivalents at beginning of the year | 80,226 | 123,251 | ||||||||||||
| Cash and cash equivalents at end of the period | $ | 81,610 | $ | 95,787 | ||||||||||
1 Refer to “Note 1—Change in accounting policies—Statement of Cash Flows - Interest Classification”, included as Exhibit 99.1 to the Report on Form 6-K to which this report is included as Exhibit 99.3, for details on change in accounting policy.
SOPHiA GENETICS SA
Reconciliation of IFRS Net Loss to Adjusted EBITDA
(Amounts in USD thousands)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| IFRS loss for the period | $ | (20,021) | $ | (18,438) | $ | (59,820) | $ | (47,335) | ||||||||||||||||||
| Exclude the impact of: | ||||||||||||||||||||||||||
| Depreciation | $ | 1,022 | $ | 1,152 | $ | 2,949 | $ | 3,439 | ||||||||||||||||||
| Amortization | 1,402 | 1,061 | 4,142 | 2,870 | ||||||||||||||||||||||
| Interest income | (622) | (855) | (1,491) | (2,707) | ||||||||||||||||||||||
| Interest expense | 1,663 | 588 | 2,881 | 1,232 | ||||||||||||||||||||||
| Fair value adjustments on warrant obligations | 607 | (182) | 587 | (266) | ||||||||||||||||||||||
| Foreign exchange losses (gains), net | (131) | 3,394 | 3,546 | (655) | ||||||||||||||||||||||
| Income tax expense | 642 | 130 | 1,907 | 607 | ||||||||||||||||||||||
Share-based compensation expense(1)(5) | 4,146 | 3,613 | 12,337 | 11,410 | ||||||||||||||||||||||
Non-cash pension expense(2) | 87 | 106 | 262 | 279 | ||||||||||||||||||||||
Transaction costs(6) | 445 | — | 445 | — | ||||||||||||||||||||||
Litigation expenses(7) | 605 | — | 605 | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | (10,154) | $ | (9,431) | $ | (31,649) | $ | (31,126) | ||||||||||||||||||
SOPHiA GENETICS SA
Reconciliation of IFRS Revenue Growth to Constant Currency Revenue Growth
(Amounts in USD thousands, except for %)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Growth | 2025 | 2024 | Growth | |||||||||||||||||||||||||||||||||
| IFRS revenue | $ | 19,462 | $ | 15,853 | 23 | % | $ | 55,564 | $ | 47,440 | 17 | % | ||||||||||||||||||||||||||
| Current period constant currency impact | (698) | — | — | 0 | (863) | 0 | — | |||||||||||||||||||||||||||||||
| Constant currency revenue | $ | 18,764 | $ | 15,853 | 18 | % | $ | 54,701 | $ | 47,440 | 15 | % | ||||||||||||||||||||||||||
SOPHiA GENETICS SA
Reconciliation of IFRS to Adjusted Gross Profit and Gross Profit Margin
(Amounts in USD thousands, except percentages)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Revenue | $ | 19,462 | $ | 15,853 | $ | 55,564 | $ | 47,440 | ||||||||||||||||||
| Cost of revenue | (6,555) | (5,199) | (18,179) | (15,605) | ||||||||||||||||||||||
| Gross profit | $ | 12,907 | $ | 10,654 | $ | 37,385 | $ | 31,835 | ||||||||||||||||||
Amortization of capitalized research and development expenses(3) | 1,329 | 942 | 3,927 | 2,463 | ||||||||||||||||||||||
| Adjusted gross profit | $ | 14,236 | $ | 11,596 | $ | 41,312 | $ | 34,298 | ||||||||||||||||||
| Gross profit margin | 66.3 | % | 67.2 | % | 67.3 | % | 67.1 | % | ||||||||||||||||||
Amortization of capitalized research and development expenses(3) | 6.8 | % | 5.9 | % | 7.1 | % | 5.2 | % | ||||||||||||||||||
| Adjusted gross profit margin | 73.1 | % | 73.1 | % | 74.4 | % | 72.3 | % | ||||||||||||||||||
SOPHiA GENETICS SA
Reconciliation of IFRS to Adjusted Operating Loss for the Period
(Amounts in USD thousands)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Operating loss | $ | (17,862) | $ | (15,363) | $ | (52,390) | $ | (49,124) | ||||||||||||||||||
Amortization of capitalized research & development expenses(3) | 1,329 | 942 | 3,927 | 2,463 | ||||||||||||||||||||||
Amortization of intangible assets(4) | 73 | 119 | 215 | 407 | ||||||||||||||||||||||
Share-based compensation expense(1)(5) | 4,146 | 3,613 | 12,337 | 11,411 | ||||||||||||||||||||||
Non-cash pension expense(2) | 87 | 106 | 262 | 279 | ||||||||||||||||||||||
Transaction costs(6) | 445 | — | 445 | — | ||||||||||||||||||||||
Litigation expenses(7) | 605 | — | 605 | — | ||||||||||||||||||||||
| Adjusted operating loss | $ | (11,176) | $ | (10,583) | $ | (34,598) | $ | (34,564) | ||||||||||||||||||
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.
(5)Share-based compensation expense does not include social charges on equity-based compensation of $1.3 million and $(0.7) million for the three months ended September 30, 2025 and 2024, respectively, and $1.3 million and $(0.4) million for the nine months ended September 30, 2025 and 2024, respectively.
(6)Transaction costs consists of expenses incurred in connection with the Company’s shelf registration statement and the ATM program.
(7)Litigation expenses consists of expenses related to the company's defense of lawsuits filed by Guardant Health.