SOPHiA GENETICS (SOPH) Q4 2025 Earnings Transcript

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DATE

March 3, 2026, 8 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Jurgi Camblong
• Chief Financial Officer — George A. Cardoza
• Chief Operating Officer — Ross Muken
• Head of Investor Relations — Kellen Sanger

TAKEAWAYS

• Revenue -- $19.5 million, up 23%, marking the third consecutive quarter of accelerating growth.
• U.S. Revenue -- Increased 30% year over year, highlighting rapid adoption in the core North American market.
• New Customers -- 31 new customers added in the period; 94 total in 2025, surpassing last year's total of 92.
• Customer Expansions -- Multiple top institutions, including Gustave Roussy and Institute public Marseille, expanded to add new SOPHiA DDM applications.
• Platform Analysis Volume -- 99,000 analyses performed versus 91,000 prior, representing 9% year-over-year growth.
• HemOnc Analysis Volumes -- Grew 18%, reinforcing the company’s leadership in hematology testing.
• Liquid Biopsy -- Over 2,000 analyses in the quarter, more than 300% year-over-year growth, with 60 customers signed and 20% entering routine use.
• Adjusted Gross Margin -- 73.1%, flat year over year, achieved despite significant volume increases.
• Net Dollar Retention -- 108%, reflecting effective cross-sell and expansion with existing clients.
• Annualized Revenue Churn -- Approximately 4%.
• Operating Loss -- $17.9 million, compared to $15.4 million prior, affected by non-recurring legal, currency, and social charge expenses.
• Adjusted EBITDA Loss -- $10.2 million, up 8%, primarily due to increased Swiss social taxes and foreign exchange impact.
• Cash and Cash Equivalents -- $81.6 million at quarter-end, with a cash burn of $13.1 million, including one-off operational and investment items.
• Full-Year Revenue Guidance -- Raised to $75 million–$77 million, now targeting 15%-18% growth, compared to previous range of $72 million–$76 million.
• Adjusted EBITDA Loss Guidance -- Updated to a range of $39 million–$41 million, factoring in regulatory-driven costs.
• Average Contract Value -- For new customers signed in the quarter, increased over 180% year over year.
• Major Biopharma Partnerships -- Signed largest biopharma deal in company history with AstraZeneca; additional collaboration agreements announced with Myriad Genetics and ADAM Innovations.
• MSK Access Implementation Pipeline -- Substantial, with management signaling large accounts expected to go live in coming quarters.
• Digital Twins Launch -- Announced "SOPHiA DDM Digital Twins," an AI-powered multimodal oncology tool, unveiled at ESMO.
• Backlog and Pipeline -- Highest in company history, with bookings in 2025 more than double those of 2024; significant forward visibility reported.

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RISKS

• Guardant Health filed a patent infringement lawsuit in Europe and the United Kingdom relating to the MSK Access application, resulting in $100,000 of legal expenses this quarter.
• Strengthening of the Swiss franc by 14% year to date negatively impacted reported operating expenses by approximately $700,000.
• Operating loss and cash burn increased due to a combination of elevated Swiss social charges on share-based compensation ($1.3 million impact), higher interest expense, and temporary reductions in accounts payable.
• Latin America continued to experience revenue softness, partially offsetting gains in other regions.

SUMMARY

SOPHiA GENETICS (NASDAQ:SOPH) reported robust top-line growth, driven by record new customer signings, expanding applications at major institutions, and accelerated adoption in the U.S. The company announced the launch of the SOPHiA DDM Digital Twins oncology tool and advanced its biopharma strategy with the largest partnership in its history, as well as newly signed collaborations in the U.S. and Japan. Adjusted gross margin remained stable, while positive trends in dollar retention and contract value signal strong sales execution. A significant increase in backlog and a diverse new customer base contribute to management's raised revenue outlook and confidence in further revenue acceleration.

• Management expects MSK Access and liquid biopsy revenues to ramp materially in upcoming quarters as more customers become fully implemented.
• The company’s efforts to optimize operating expenses in local currency were challenged by foreign exchange shifts and local tax regulations, but cost discipline otherwise held.
• Growth in the EMEA and Asia Pacific markets was notable, with major contributions from the United Kingdom, Belgium, Australia, and the initial revenue generated in Japan.
• CEO Camblong said, "I am as confident as ever in our long-term trajectory," emphasizing pipeline strength and multi-year biopharma opportunities.

INDUSTRY GLOSSARY

• HemOnc: Refers to hematology and oncology, particularly molecular testing for blood and cancer disorders.
• MSK Access: Proprietary liquid biopsy application, enabling decentralized analysis of circulating tumor DNA (ctDNA) for precision oncology.
• CDx (Companion Diagnostic): A diagnostic test linked to a specific therapy, used to determine patient eligibility or expected response.
• ADAM Innovations: SOPHiA GENETICS’s partner in Japan for regulatory and commercial rollout of MSK Access as a companion diagnostic.
• Digital Twins: AI-powered simulated patient profiles integrating multimodal data to forecast clinical outcomes and guide treatment decisions.

Full Conference Call Transcript

Jurgi Camblong: Thanks, Kellen, and good morning, everyone. I will start with a brief recap of Q3 performance and an update on major growth drivers. I will then turn the call over to Ross, who will provide a more detailed update on the business. George will close with a review of our Q3 financial performance before we take your questions. For the last several quarters, we have highlighted that the business momentum has been strong. New customer signings have been at record levels and bookings have exceeded expectations. In Q3, these efforts continued to pay off as revenue growth accelerated for a third consecutive quarter. Revenue grew 23% year over year in Q3.

Given the strong performance and the accelerating momentum we are seeing across the business, we are raising our 2025 revenue guidance to $75 million to $77 million. Our performance continues to be driven by the three growth drivers we outlined at the start of the year: implementing and expanding across new accounts, growing in the U.S. market, and capitalizing on new applications such as MSK Access. Starting with the first growth driver, in Q3, we signed 31 new customers. This brings our total new customers signed in 2025 to 94, surpassing the 92 customers we signed in all of last year. Our focus remains on implementing and expanding across these new accounts.

From an expand perspective, we had an excellent quarter as we successfully encouraged many of our existing customers to adopt additional applications. In Q3, we expanded our footprint at several top-ranked institutions. Gustave Roussy in Paris is adding new solid tumor applications to the broad suite of SOPHiA apps they use today. Institute public in Marseille signed a major expand deal to add HemOnc, hereditary cancer, and solid tumor applications. In addition, New South Wales Pathology, Australia, is adding a implant application and Tulane University in the U.S. is adding new applications in solid tumors. Congratulations to the team on these major expands, as well as the 31 new customers landed in the quarter.

I look forward to these customers implementing SOPHiA DDM and beginning to generate revenue over the next few months. On implementations, we were happy to see 15 sizable new customers move to routine in Q3. We also implemented an abnormally large number of expand opportunities during the quarter. Between both land and expand, total new business implemented in Q3 was strong. The second growth driver I will highlight is our continued growth in the U.S. market. In Q3, U.S. revenue grew an impressive 30% year over year on top of an increasingly larger base. We also signed a strong cohort of new customers to fuel growth.

In Q3, we landed Geisinger Health System in Pennsylvania, which is adopting SOPHiA DDM for pharmacogenomics; Baylor Scott & White Health in Texas, which is adopting SOPHiA DDM for HemOnc; and Thermo Fisher Life Labs, which is adopting solid tumor liquid biopsy and rare disorders applications. Welcome all to the SOPHiA GENETICS S.A. community. The third growth driver I will cover is the continued success of our liquid biopsy application, MSK Access. As part of the updates today, I will take a moment to reflect on liquid biopsy business overall: the progress we have made, and what the future holds.

Two years ago, we partnered with Memorial and Catherine to industrialize their world-renowned test and make liquid biopsy testing accessible to every lab in the world. This presented a series of challenges, not only due to the very small amount of circulating tumor DNA in a blood sample, but also because of proliferate heterogeneity from lab to lab. In other words, reliably decentralizing liquid biopsy is complex, and many variables are at play. To solve for this complexity, we leveraged the decades of experience in our diverse data network to build proprietary AI agents that standardize, harmonize, and analyze liquid biopsy data. These agents power MSK Access and other 60 liquid biopsy customers worldwide.

As our liquid biopsy network has grown, biopharma companies have recognized the value of such a network. Several months ago, we announced that AstraZeneca would sponsor the global deployment of MSK Access. For AZ, high-quality and affordable liquid biopsy testing is critical for expanding market access. In addition, the data generated from the network is of immense value for drug development and commercialization. During the quarter, we announced the next phase of our liquid biopsy strategy. In September, we announced a partnership with Myriad Genetics to develop MSK Access into a regulated companion diagnostic in the U.S. And then in October, we announced a collaboration with ADAM Innovations to do the same in Japan.

Together, along with SOPHiA GENETICS S.A.’s robust regulated footprint in Europe, SOPHiA GENETICS S.A. and its partners will offer biopharma a first-of-its-kind hybrid global CDx assay fit for purpose depending on the needs of the local market. This innovative CDx will provide biopharma companies with a unique and cost-effective offering to potentially expedite drug development and approval. Post approval, it will also enable more patients to gain access to tumor profiling benefits from liquid biopsy. As we continue our mission to expand access to best-in-class cancer care, I would like to take a moment to look toward the future. Last month, at ESMO, we announced a breakthrough technology called SOPHiA DDM Digital Twins.

Digital Twins goes beyond genomics by leveraging multimodal data to help oncologists make better treatment decisions. The AI-powered research tool creates dynamic virtual representations of individual patients to simulate potential outcomes and help oncologists select the best treatment. Starting with oncology, oncologists can now generate Digital Twins for genomic patients analyzed with SOPHiA DDM, including MSK Access. This revolutionary tool takes SOPHiA GENETICS S.A.’s mission of data-driven medicine to the new age by leveraging AI and the collective intelligence of our community to provide oncologists with real-time, real-world decision support based on multimodal data. Please stay tuned for more updates on the development of Digital Twins and the expansion of this exciting technology.

Before I hand it over to Ross, I would like to recognize the SOPHiA GENETICS S.A. team for their continued ability to deliver amazing new products like Digital Twins and drive revenue growth without increasing costs. In Q3, we held gross margin strong at 73.1% on an adjusted basis, despite the data processed by our platform growing over 40% year over year. This performance was driven by innovations from our tech and data science teams, who continue to engineer new ways to optimize data compute and processing power of SOPHiA DDM. I was also proud that we carried growth down to the bottom line.

In Q3, we improved adjusted EBITDA 13% year over year after excluding the impact of elevated Swiss social charges on stock-based compensation. Excluding these charges, operating expenses remained mostly flat on a constant currency basis, a testament to the natural operating leverage in our business and strong expense control across our team. In conclusion, Q3 was an excellent quarter for SOPHiA GENETICS S.A. Revenue accelerated once again and cost performance improved. We have built an expansive global network of customers who use SOPHiA DDM each day to generate insights for their patients. In Q3 alone, SOPHiA DDM analyzed over 99,000 patients across 70 countries worldwide.

Thank you again to the team for an excellent quarter and for the impact you are making. With that, I will now turn the call over to Ross, who will provide a more detailed update on Q3 business performance.

Ross Muken: The go-to-market teams share your excitement and confirm the broad and growing demand for the SOPHiA GENETICS S.A. offering. Along those lines, I will start today by giving a brief update on our third quarter performance, as 2025 continues to be a strong year across both new and existing business. I will then cover broader market dynamics before closing with a look at what we are seeing in the pipeline. First, we delivered 23% revenue growth in the third quarter, as biopharma headwinds subsided and the continued strength of the core business was able to shine. From a regional perspective, EMEA returned to historic growth levels, with 24% revenue growth in the period.

Major markets such as the United Kingdom and Belgium contributed significantly to regional growth as the countries grew 120% and 70% in the period, respectively. As Jurgi mentioned, North America continued to outperform in the third quarter, with 29% revenue growth year over year. Asia Pacific also continued to outperform in Q3, as analysis volume grew 35% driven by Australia and Taiwan. Of note, we also saw the first revenue from Japan come online, as our partnership with ADAM Innovations begins to ramp. In Latin America, we continue to experience softness. But recent booking momentum gives us confidence that the region will return to meaningful growth in the medium term.

From an application standpoint, we continue to establish ourselves as the global leader in hematology testing. HemOnc analysis volumes grew 18% year over year in the third quarter, off an increasingly large base. Beyond HemOnc, we saw an initial wave of liquid biopsy testing coming online as we passed 2,000 liquid biopsy analyses in the quarter. As a reminder, more sophisticated applications like MSK Access carry a substantially higher ASP than other product lines. We will look to the fourth quarter and into 2026 for MSK Access to meaningfully drive overall growth, as customers complete implementations and ramp up usage.

With biopharma headwinds now behind us, revenue from biopharma returned to positive growth in the third quarter and is no longer a drag on our overall performance. We view biopharma as an additive contributor going forward as we deliver on recently signed biopharma wins, including the multiple projects signed with AstraZeneca this quarter. Moving to the new business side of clinical, I am happy to share that we continue to book new business at record levels. We landed 31 new customers in the quarter, up from 22 signed in Q3 last year. As Jurgi mentioned, the expand engine was also exceptionally strong.

We will continue updating you on the expansions going forward, as this will be a major strategic focus for us as we move into 2026. In North America, Jurgi highlighted our incredible momentum in the U.S. Beyond the U.S., we also expanded our partnership with Sunnybrook Health Sciences Centre in Toronto. Sunnybrook is adding a sixth CDM application, now adopting MSK Access. Our expansion to one to six applications with Sunnybrook over a short period of time is a great example of our land-and-expand strategy in action. In EMEA, MSK Access continued to attract major interest. In the third quarter, we signed the University Hospital of Nice in France and HSL in the United Kingdom to the application, amongst others.

We also signed the American University of Beirut to our newly launched solid tumor application, MSK Impact Flex. In Latin America, we continued our expansion in the south and signed ClinicaMeds in Chile to our whole exome solution. We also continue to see new business momentum in Brazil and signed the Carlos Chagas Institute, which will be adopting SOPHiA DDM to support HemOnc testing. We look forward to LatAm picking up growth in quarters to come as we implement the recently signed new business. In Asia Pacific, we were proud to announce the developments of our entry into Japan.

ADAM Innovations is currently working on implementing a full suite of SOPHiA applications, including solid tumor, hereditary cancer, rare disorders, and liquid biopsy. As mentioned earlier by Jurgi, ADAM will also play an important role in the global CDx offering we are developing. I am happy to say we are already seeing strong demand across Japan on both clinical and biopharma sides. On that note, I will take a second to highlight our refreshed momentum in biopharma. As discussed in detail last quarter, we signed the largest contract in SOPHiA GENETICS S.A.’s history with AstraZeneca in August, kicking off a multiyear project to improve outcomes for breast cancer patients.

In addition, in September, we signed a separate deal with AZ to enhance detection of breast and prostate cancer. As part of the partnership, AZ tapped SOPHiA GENETICS S.A. to leverage our AI algorithms to develop an application that detects mutations in the PTEN pathway, a key molecular signaling network linked to the development of breast and prostate cancer. The pathway is also notoriously complex from a ovarian calling perspective, and we were proud that AZ chose SOPHiA GENETICS S.A. as its partner on this project. This project should also serve as yet another proof point of the value of SOPHiA GENETICS S.A.’s AI and our reputation as a leading data science and tech player in the space.

Broadly across markets in the business, customers are increasingly turning to just SOPHiA GENETICS S.A. to help them make sense of complex data. Over the past three years, we have seen an explosion of data production in health care. Sequencers and other multimodal equipment are becoming cheaper, and capabilities are becoming more advanced. Illumina, Ultima, MGI, Element, and now Roche have all deployed products that are producing increasingly larger, deeper, and more complex data. In addition, as data capabilities increase, more sophisticated therapies and tests are emerging. Among other indicators, ctDNA is increasingly recognized as a valuable way to follow patients longitudinally and determine proper treatment.

Further, sophisticated tests like liquid biopsy, MRD, enhanced exomes, and HRD are all in high demand. Broadly, these trends mean one thing: Hospitals, labs, and health systems are increasingly looking for partners like SOPHiA GENETICS S.A. to help them analyze, process, and make sense of complex data. As a company that has invested more than $450 million in bringing an AI platform to help clinicians analyze complex health data, SOPHiA GENETICS S.A. is perfectly positioned to take advantage of these trends. At ESMO last month, we constantly heard these dynamics echoed by our customers. Data is exploding. Data complexity is rising. And these new sophisticated tests continue to excite.

In addition, it has become clear that the decentralized approaches, like SOPHiA GENETICS S.A., are reaching an inflection point. Biopharma companies clearly prefer a decentralized testing landscape over one that is controlled by a few larger players. In addition, large hospital and health systems, especially in the U.S. and UK, are waking up to the benefits of in-house testing. It enables them to get closer to the patient, build local expertise, and make better use of valuable patient data. In-house testing also drives operational efficiencies by reducing test turnaround time, making better use of labor resources, and keeping testing profits in-house instead of giving them up to a centralized player.

Combining all of these trends, what does it mean for SOPHiA GENETICS S.A.? In short, it means that demand is higher than ever. Pipeline in the third quarter is up substantially since last year. Bookings in 2025 are more than double those of 2024. Not only are we landing more customers than ever, but our customers are getting larger. Average contract value of the 31 customers in Q3 was up over 180% year on year. Additionally, the number of $1 million opportunities in our pipeline has expanded materially.

I continue to be pleased with our positioning as well as the growth of our pipeline and of our end markets, and I look forward to updating you on these items in the coming months. With that, I will now turn the call over to George, who will provide a more detailed look at our third quarter financial results.

George A. Cardoza: Thanks, Ross, and good morning, everyone. As Jurgi and Ross highlighted, Q3 results came in ahead of expectations as the influx of new business begins to come online. Total revenue for the third quarter was $19.5 million compared to $15.9 million for 2024, representing year-over-year growth of 23%. As a reminder, revenue grew by 13% in the first quarter and 16% in the second quarter, so the growth momentum continues to build. Platform analysis volume was approximately 99,000 during the quarter compared to 91,000 in 2024, representing year-over-year growth of 9%. For genomic customers, we were 488 as of September 30, up from 462 in the prior-year period, but down two customers relative to Q2 2025.

As Ross mentioned, we have intentionally focused our sales team on winning larger accounts. While we moved 15 new customers into routine this quarter, we also churned out small accounts. The average revenue across all churn customers in Q3 was less than $8,000. Going forward, we will continue to focus our sales team on larger accounts, and the favorable results are showing. Net dollar retention for the quarter was 108%, with strong performance in Europe, Asia Pac, and North America, partially offset by a decline in growth in Latin America. Annualized revenue churn remains at approximately 4%. Gross profit for the quarter was $12.9 million compared to $10.7 million in the prior-year period, representing year-over-year growth of 21%.

Gross margin was 66.3% for the third quarter, compared with 67.2% for 2024. Adjusted gross profit was $14.2 million in Q3, an increase of 23% compared to adjusted gross profit of $11.6 million in the prior-year period. Adjusted gross margin was 73.1% for the third quarter, remaining flat year over year, despite the substantial increase in volume of data computed by the platform. As Jurgi mentioned, targeted platform improvements have driven cloud compute and storage costs lower throughout 2025, an achievement we remain proud of and expect to continue going forward. Total operating expenses for Q3 were $30.8 million compared to $26.0 million in 2025.

However, Q3 results were adversely affected by a series of items during the quarter, which temporarily impacted results, but do not reflect the company's underlying operating performance. I will take a moment to walk through each item. First, share price appreciation of 54% at the end of the third quarter resulted in higher Swiss social charges on share-based compensation, as these are remeasured with the company's share price under local regulations. These elevated social charges accounted for a $1.3 million increase to OpEx this quarter, as compared to a $700,000 benefit last year in Q3. These costs are not reflected as an adjustment in our adjusted EBITDA table per SEC guidelines.

Second, adverse foreign exchange movements at the end of the quarter negatively impacted reported OpEx by approximately $700,000, primarily due to the strengthening of the Swiss franc. The Swiss franc has appreciated by 14% since the start of the year, which means that our payroll and rent expenses in Switzerland are translating 14% higher when viewed in U.S. dollars. Third, Guardant Health filed suit against us in Europe and the United Kingdom alleging patent infringement in the MSK Access application, which we believe to be without merit. This resulted in higher legal expenses in the quarter of approximately $100,000, which is reflected as an adjustment for litigation in our adjusted EBITDA table.

Fourth, during the quarter, we completed an at-the-market facility with TD Cowen along with completing a shelf offering that the SEC declared effective on August 8. There were $445,000 of costs associated with the ATM facility and the shelf that we have adjusted for in our adjusted EBITDA table, as they are not expected to recur in 2026. After adjusting for these items and other standard IFRS adjustments, operating expenses grew only 1%, driven by sales and marketing investments, which continue to deliver high returns. Despite these temporary charges, we remain proud of our ability to grow revenue 23% without substantially increasing headcount or OpEx.

Moving down the P&L, operating loss for the quarter was $17.9 million compared to $15.4 million in the prior-year period. EBITDA loss for the third quarter was $15.4 million compared to $13.2 million in the prior-year period. Adjusted EBITDA loss was $10.2 million, up 8% from the prior-year loss of $9.4 million. Excluding Swiss social charges and share-based compensation for both years, adjusted operating loss and adjusted EBITDA would have improved 13%, demonstrating our ability to deliver operating leverage. As with previous quarters, we remain laser focused on driving efficiency gains across the business and reducing costs down the P&L.

Lastly, total cash burn, which we define as the change in cash and cash equivalents, for 2025 was $13.1 million compared to $9.6 million in the prior-year quarter, representing a year-over-year increase of 36.5%. The cash outflows in 2025 include: $500,000 invested in ADAM Innovations in Japan; a $1.7 million reduction in our accounts payable balance, as some large vendor payments were processed; and interest expense, which increased by $1.1 million from the prior year due to increased borrowings under the Perceptive Credit Agreement. We finished the quarter with cash and cash equivalents of $81.6 million as of September 30. We remain confident in our current capital position with respect to the achievement of our long-term goals.

I will now turn to our 2025 outlook. Given the promising reacceleration of revenue growth we have had in the last three quarters, SOPHiA GENETICS S.A. is updating our full-year revenue guidance for 2025. We are raising our full-year revenue guidance range, as revenue is now expected to be in the range of $75 million to $77 million, representing growth of 15% to 18%. This compares to the previous range of $72 million to $76 million. Adjusted EBITDA loss guidance has been revised to a loss of $39 million to $41 million, compared to $40.2 million in fiscal year 2024.

The primary drivers of the change are the Swiss social taxes on our stock-based compensation, along with the appreciation of the Swiss franc and the euro and the impact that they have on our European-based expenses such as payroll and rent, when translated over into U.S. dollars. On a constant currency basis, our expenses remain as expected, excluding the social taxes. Despite these impacts, we expect we will be able to continue to show operating leverage for future revenue growth. We continue to make targeted investments in our platform and optimize cloud compute and storage costs, and expect to have modest gross margin expansion beyond current levels.

We expect to continue to hold the line on operating expenses in local currencies and excluding social charges, as we currently have the correct team size to support our medium-term growth objectives. This excludes some high-ROI investments we will continue to make related to marketing activities as well as certain investments in the commercial team, including commission payments for overperformance. We also expect a modest increase in our implementation teams to handle the increased volumes of new accounts. Our growth has been accelerating, and we believe these investments will pay off in 2026 and beyond. Finally, we will continue to revisit our discretionary expenses and execute on identified savings in systems, professional services, and certain public company costs throughout 2025.

We continue to believe that we are on track to be approaching adjusted EBITDA breakeven by 2026 and crossing over to positive adjusted EBITDA in 2027. With that, I would like to turn the call back over to Jurgi for closing remarks before we take your questions.

Jurgi Camblong: Thank you, George. To close, this quarter marked another period of accelerated revenue growth with 23% year-over-year revenue growth, reflecting strong execution of our teams and the growing impact of our platform. Forward-looking indicators remain strong across the business. We continue to see a steady stream of new customer signings, substantial new biopharma partnerships, rising average contract size, and a healthy expansion in pipeline across regions and applications. On top of this, we continue to be laser focused on optimizing cost and delivering sustainable growth. I am as confident as ever in our long-term trajectory and momentum in our business building in the future. I look forward to continuing to update you all on our progress.

With that, thank you to the SOPHiA GENETICS S.A. team, customers, partners, and investors for joining us on our mission to transform patient care by expanding access to data-driven medicine globally. Operator, you may now open the line for questions.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star then two. And if you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from William Bishop Bonello from Craig-Hallum. Please go ahead.

William Bishop Bonello: Hey, guys. Thanks a lot for taking the question and good quarter. So just a couple of things I would love to follow up on. First of all, in terms of the guide, I think I get what you are doing here and appreciate it, but I just want to make sure. The midpoint of the guide sort of implies a mid-teens growth for Q4 versus the 23% growth that you had this quarter. Is there any particular reason that we would expect growth to decelerate next quarter, or is this just kind of prudence?

Jurgi Camblong: Yeah. Good morning, Bill. I will let Ross answer that given he oversees the business.

Ross Muken: Thanks, Bill, and good question. I would say, obviously, all year we have been generally conservative with our approach to guidance, right? Coming off of 2024, we wanted to make sure we were set up well to be able to continue to overachieve, and obviously you see us do that this quarter and raise our guidance. I think in general, the business has fantastic momentum. We had another tremendous quarter of bookings. We are bringing quite a lot of business online. I think we wanted to just be prudent, right, heading into the year end.

But frankly, we do not see any change in the key drivers of the business and feel very confident that our growth overall will continue to perform in line with our expectation and/or continue to accelerate.

William Bishop Bonello: Thanks. And then the MSK, you talked about 60 customers now signed up. Can you give us a sense of how many of those customers are already performing analyses or generating revenue and how many are yet to go live? And then maybe, I know you talked about it a little bit, but maybe a little more color or commentary on the pipeline of potential customers that you might be able to add going forward?

Jurgi Camblong: Yes, sure. I will start, Bill, and then I will let Ross pursue. I will start by telling that, indeed, to your point on the pipeline, the demand in value liquid biopsy is growing, right? It is becoming more and more educationally more and more important, for diagnosis, for monitoring, but eventually as well for MRD testing. So, definitively, for us, this is a platform where we see a lot of demand. When it comes to the numbers, we elected that this quarter with over 2,000 analyses, on 100%. They can leak actually over 300% year on year. Again, there is a lot of demand there.

And when it comes to the number of sites that were implemented, it is still a minority case. So, Ross, maybe you want to give us some more color to be—

Ross Muken: Yeah. Thanks, Bill. So, obviously, as Jurgi said, liquid biopsy remains, I would say, an area for diagnostics in general and one where we are seeing a lot of demand. Certainly, we are very happy with the rate of adoption over the last twelve months. In terms of 60 signed logos, assume about 20% of those have started to enter routine, although still based on the numbers we shared in terms of the monthly cadence, quite modest. We expect that to ramp pretty materially over the next one to two quarters.

We have some very large accounts coming online in the fourth quarter and into the first quarter of next year, and so we are quite confident that trajectory will continue to inflect. And then for 2026, we will see very strong growth from this product. And as well, as we think about CDx and our announcements there, we foresee a multiyear trajectory that is going to be driving this business for the foreseeable future.

William Bishop Bonello: And if you will allow me just one last question. You mentioned Thermo Fisher as a customer. Can you just talk a little bit more about what they will be doing, how they are using the product?

Ross Muken: So, you know, Thermo is using it in one of their laboratories. I would say we are probably not at liberty to share a ton more, but certainly, as you think about many of the typical vendors, and they are one who does CDx, you tend to do orthogonal studies and work and also tend to use other technologies of other competitors of which you do not have sort of applications and/or bioinformatic capabilities. And so I would say think about it in that vein. We are very excited to have them as a customer. Obviously, we already serve quite a lot of Thermo instruments as well in the field.

And so I would say in this vein, this is sort of a new avenue for us and an important one. But unfortunately, I cannot give you a ton more detail on the project just because of its confidential nature.

William Bishop Bonello: Sure. Makes sense. Thanks a lot.

Kellen Sanger: Thank you, Bill.

Operator: Thank you. And your next question comes from Subhalaxmi T. Nambi from Guggenheim. Please go ahead.

Subhalaxmi T. Nambi: Hey, guys. Good morning. Thank you for taking my question. What is your outlook for biopharma R&D spending and overall funding for 2026?

Jurgi Camblong: Hi, Subbu. We have been speaking a bit about the biopharma, penalizing it in the past, right? And as changing the strategy, being focusing on things that were very well, I would say, defined around diagnostics. And as we have been highlighting in the previous quarter, this strategy has taken off. We announced last quarter as well a deal we made with AstraZeneca on the data side, which we qualified as being the biggest deal in biopharma historically. But beyond that, on 2026, Ross, what can we share?

Ross Muken: So I would say, Subbu, coming out of ESMO, I was super encouraged. So if you think about a lot of where we are positioned relative to pharma pipelines as well as where pharma is allocating dollars, we are in a very favorable position. Right? Pharma is increasingly, I would say, looking to support a hybrid centralized approach for CDx, and us with our partner Myriad have fantastic, I would say, capabilities in that front and also to do CTA and other sponsored testing.

Additionally, I would say if you look at what they are doing with AI, we have really unique capabilities in terms of algorithm development and unique data sets that we have access to that, as you saw in the breast example, garner a lot of interest, and we would expect to see more of that. Additionally, again, being well positioned in liquid biopsy, which is an area that is inflecting at the moment, I would say also we are having quite a lot of conversations and discussions around a myriad of different opportunities there. And so across the board for us, at least, biopharma year on year and certainly on a two-year running basis is materially healthier.

Our pipeline is in fantastic shape. Again, we still need to execute and drive some of these large deals home. But I would say for us right now, the positioning is quite good and the budgets are there. And we are seeing not only heightened activity level, but for us—and again, I am not sure it is a read on the market, but more specific to us—we are engaged with most of the top 20, right?

And so if you think about many of the large names that have had a lot of pipeline success, obviously AstraZeneca being the foremost, but many of the other large names are ones that we have active dialogue and very, I would say, concrete potential deals in the pipeline with. And so we are quite encouraged about what that can contribute in 2026 and beyond.

Subhalaxmi T. Nambi: That is really encouraging to hear. How did customers’ onboarding setup times trend in 3Q? Did you notice the macro environment elongating this in any way? Or do you have concerns about this? Any U.S. government shutdown impacts?

Jurgi Camblong: So first, as you know, Subbu, for us, signing deals—right? And we have been highlighting that actually bookings and ACV—so bookings have been very good, but then we do not generate revenue until our platform is being implemented, given the pay-on-usage, right? So, Ross, more color on the implementations and the impact of the macro?

Ross Muken: Yeah. So in general, we are actually seeing healthy activities across the entire funnel. So pipeline remains robust. Bookings were very good in the quarter. And implementations, certainly on a dollar basis, continue to accelerate. So this quarter, we had a bit more expand applications come live than new logos, but I would expect Q4 to be quite strong. We actually just had a record October. And so on that level, activity levels, again across multiple geographies, continue to be quite good. So for us, on the macro side, the environment is super healthy. And I think you have heard this from some of the sequencing providers as well who have talked about clinical volumes being strong.

And so obviously, with that and the increased data production on those volumes, for us at the moment, things are continuing to be quite strong. Yes, so no impact from the government shutdown so far, at least on our side.

Subhalaxmi T. Nambi: Perfect. Thank you so much, guys.

Kellen Sanger: Thank you. Just a moment.

Operator: And your next question comes from Mark Massaro from BTIG. Please go ahead.

Mark Massaro: Congrats on the strong quarter. I wanted to ask a little bit about the large pharma customer you have in AstraZeneca. How much was their benefit in Q3, and if not, should we—I think we are expecting that to pick up here in Q4. Was hoping if you could just sort of walk me through that. And then related to that, can you just speak to the strength in biopharma if you exclude AstraZeneca?

Jurgi Camblong: Thanks, Mark. George will start on the question regarding the financial side, and then, of course, we can give you some more color on recent activities we had at this—

George A. Cardoza: Yeah. There was some fairly small amount from pharma in Q3, and we had said that last quarter that pharma was really going to ramp up in the fourth quarter. Again, typically, these types of contracts take a couple of months to get projects going, and the revenue is typically recognized when milestones are hit. But we do expect to hit some of those milestones in the fourth quarter and, as Jurgi said, really the thing that we are excited about with the pharma side is really when we start to look out in 2026 and 2027.

We are still very bullish on this business and what it can become, and it is exciting to see the projects that we have already won. You know, and the pipeline is not—if you have signed a lot of contracts, maybe your pipeline would be down. The exact opposite happened. The pipeline has actually even gotten stronger at the same time. So we remain very bullish about the pharma business. We have talked about the Myriad partnership, what we are doing in Japan, and we believe wholeheartedly there is a great business here.

Ross Muken: Yeah, so Mark, I would say, honestly, AstraZeneca is a fantastic partner, particularly given the health of their pipelines. So being tied to one of the large pharmas that has a ton of new product introductions is obviously, as a diagnostic and data player, incredibly beneficial. But to your point, obviously, we have been super focused on broadening out the pipeline, as I was mentioning before. That has expanded pretty materially, not just in size, but also the sheer number of pharmas in the pipeline. I can also confirm we have won other deals outside of AstraZeneca, some that are quite significant.

But I would say for various reasons, you cannot always press release depending on where the drug is or where the project is in its stage of the wins. But I would say overall, we are quite happy with that momentum, and we would expect, again, you to see further adds on that side over the upcoming quarters in 2026 as the business continues its recovery.

Mark Massaro: Okay. Great. And between Myriad Genetics and the customer formerly known as Genesis Healthcare, I think you have got companion diagnostics with both. Can you just give us a sense on timing, how you are thinking about regulatory, and when you think these might start contributing to your business?

Jurgi Camblong: Yes. So, as you understand, right, depending on the regions, basic frameworks are different. So the partner we have in Japan is to fulfill basically regulatory authorities in Japan, and the one we have in the U.S. is to fulfill the regulatory authorities’ duties and opportunity in the U.S. market, right? Hence why we have been expanding our offering. As you know, Mark, we have been very successful with our decentralized model. But in some instances, premarket, pharma wants to do that in a single-site PNA. So hence the inception of this partnership. Anything else you would like to add, Ross?

Ross Muken: Yeah. So I would say, Mark, again, coming out of ESMO, even more so than ASCO, we heard consistently a drumbeat of huge interest in MSK Access as kind of a global CDx tool. Again, you think about the existing environment. Typically today, if you hire one of the current vendors who are centralized, you are normally having to hire probably another five to seven vendors to cover the diagnostic globally through commercialization.

Whereas now, with a strong partner in Myriad, which is obviously very well known in this space, having delivered really strong results with MyChoice and other products in the past—so they have great regulatory experience for the U.S. market—we have Genesis, or now ADAM Innovations, who is generating quite a lot of interest, honestly, in Japan as well, and obviously our ability to sort of deliver applications for the rest of the world. I think that has garnered quite a lot of curiosity of pharma that is now turning into real opportunities. We actually already have several opportunities we are involved in the market. Again, it does not mean moving, but certainly, we are already engaged.

So that should give you a sense of our preparation and timing of when we expect this to be able to be available, as certainly we are already in sort of that process. But I would say certainly we want to take our time. We will obviously work with our partners closely on bringing these tools to market. But again, I would say on a multiyear basis, this has the potential to be a really significant driver for SOPHiA GENETICS S.A. going forward.

Mark Massaro: Fantastic. And just one last one for me. You know, you made some really good progress signing new customers, including to MSK Access on SOPHiA DDM. You talked about the majority are expected to complete implementation and begin generating revenue in the next three to six months. Just trying to get a sense, as we think out to 2026, is there—in your view, do you think you will continue to onboard new MSK Access customers each quarter? Or do you think there is a big bolus, sort of like Q4 into Q1, and then that will start to level off? I am just trying to get a sense for the business in 2026.

Ross Muken: Yeah. So I would say in general, Mark, we are obviously quite enthusiastic about this product ramp. As we have said, these will come online as you mentioned. I would say it is never perfectly linear, as you would expect, so there will be some step function changes. But ultimately, the potential here with the existing signed accounts is quite significant to contribute to our business, and then obviously CDx as well. And so we remain very confident in that contribution to the 2026 growth rate and beyond.

Jurgi Camblong: And, Mark, if I may add, I know you are interested in knowing what are our plans for MRD as well. Do not get clear on a decentralized world what would be the MRD applications, both clinically and technologically. But typically, MSK Access, which enables as well to measure ctDNA, becomes an MRD application.

Mark Massaro: That is great to hear. Alright. Thanks, guys.

Kellen Sanger: Thank you, Mark.

Operator: And your last question comes from Kyle Boucher from TD Cowen, on behalf of Daniel Gregory Brennan. Please go ahead.

Kyle Boucher: Hey, good morning, guys. This is Kyle on for Dan. Thanks for taking the question. Just wanted to build off the last question a little bit on the customer implementation. I mean, you added over 30 customers this quarter, and I believe exiting Q2 had somewhere around 100 customers in the backlog waiting to be implemented. Can you discuss what this backlog is today?

Jurgi Camblong: Yes. Good morning, Kyle. Absolutely. Ross?

Ross Muken: Yeah. So the backlog remains, for better or worse, at the highest levels in our history. Certainly, I would say we did a good job in the third quarter of continuing to make progress and accelerate go-lives in terms of accounts coming online. In the third and fourth quarter and in Q1 of next year, we have some, as I mentioned, quite significant ones coming online over the next two months. Certainly, you can always improve and get better, and so we are spending a lot of time and effort to optimize the end-to-end process. Some of that also at times is outside of our control, whether it is someone needing a regulatory approval or something on the reimbursement side.

But generally, I would say the trend is favorable. The backlog is substantial. It gives us a lot of forward visibility, and, again, it is why we remain confident in continuing in our path to kind of growth acceleration in the fourth quarter and into 2026.

Kyle Boucher: Got it. And then maybe on that then, maybe it is too early to tell, but, you know, looking at where consensus is for 2026 right now, I think it implies somewhere around mid-teens growth. And, I mean, you add the clinical momentum, pharma getting better, not being a headwind next year. Is there any reason to think that growth could not be better than that next year?

George A. Cardoza: We have always tried to guide conservatively. And I think, as Ross said, things are not always linear. You tend to have a bit of the trends going one way or another. So I think we want to put out guidance that is reasonable. And then, certainly, yes, I think you have just seen this past quarter where we have put up a very nice number, and we are going to continue to try to overachieve. But I think in terms of the 2026 expectations, where the consensus is, is probably reasonable, and we are going to do everything we can to overperform.

Ross Muken: Yeah. And so, Kyle, I would say certainly we are several quarters into a reacceleration. There is no reason to think that there is anything changing in that trajectory in our business. Obviously, we have talked about strong new business momentum all year, and this quarter we are talking a bit as well around pharma reacceleration and recovery. But, as George said, obviously we want to be prudent. But at the moment, we are feeling quite confident on our trajectory, and again, our long-term goal is to get back to more historical growth rates that you saw from us in the past. And so that is the ambition, and we are going to continue to push towards that.

Kyle Boucher: Got it. Thanks, guys.

Kellen Sanger: Thank you, Kyle.

Operator: Thank you. There are no further questions at this time. You may proceed.

Kellen Sanger: Thank you very much for joining us today, and please continue following up. And once again, congrats to the SOPHiA GENETICS S.A. team who delivered a fantastic quarter.

Operator: Ladies and gentlemen, this concludes today's conference call. We thank you very much for your participation, and you may now disconnect. Have a great day.

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