SOPHiA GENETICS (SOPH) AI Stock Analysis

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SOPHiA GENETICS

(NASDAQ:SOPH)

48Neutral

SOPHiA GENETICS shows potential through strong revenue growth and new customer acquisitions, particularly in the U.S. and with new applications. However, significant challenges remain, including profitability issues, flat revenue growth, and increased leverage. Technical indicators suggest cautious sentiment, and with a negative P/E ratio, valuation remains a concern. Although there is optimism for future growth, current financial instability and market volatility contribute to a moderate overall score.

Positive Factors

Customer Growth

The company signed 28 new customers in the first quarter and implemented 33 new customers, which is a positive leading indicator for growth.

Market Expansion

Management believes revenue re-acceleration will continue as key growth drivers take effect, including new customer additions and US market expansion.

Negative Factors

Market Challenges

The company faced several headwinds in 2024 resulting in below long-term trend growth, notably from a lower biopharma revenue ramp and disruptions in LATAM.

Revenue Performance

Sophia turned in a relatively challenging 2024 as they drove 4% revenue growth while growing their volumes by 11%, which implies a 6-7% decline in revenue per analysis, which declined in part due to headwinds with biopharma customers.

SOPHiA GENETICS (SOPH) vs. S&P 500 (SPY)

Market Cap

$200.49M

Dividend YieldN/A

Average Volume (3M)35.57K

Price to Earnings (P/E)―

Beta (1Y)1.36

Revenue Growth4.66%

EPS Growth11.33%

CountryUS

Employees423

SectorHealthcare

Sector Strength53

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)-0.26

Shares Outstanding66,831,070

10 Day Avg. Volume31,413

30 Day Avg. Volume35,566

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.77

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit3.52

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.67

Price Target Upside89.00% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

SOPHiA GENETICS Business Overview & Revenue Model

Company DescriptionSOPHiA GENETICS SA operates as a healthcare technology company. The company offers SOPHiA DDM platform, a cloud-based software-as-a-service platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, products, and services are used by hospital, laboratory, and biopharma worldwide. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Saint-Sulpice, Switzerland.

How the Company Makes MoneySOPHiA GENETICS generates revenue primarily through its software-as-a-service (SaaS) model. The company licenses its SOPHiA DDM (Data-Driven Medicine) platform to hospitals, labs, and research institutions, charging subscription fees for access to its genomic analysis capabilities. Additional revenue streams include fees for various add-on services and data analytics solutions provided through the platform. Strategic partnerships with biotech and pharmaceutical companies also contribute to its earnings, as these collaborations often involve joint efforts in research and development, sharing of proprietary data insights, and co-marketing activities.

SOPHiA GENETICS Financial Statement Overview

Summary

SOPHiA GENETICS displays strong revenue growth in the healthcare sector, with a 31.10% increase from 2022 to 2023, but faces significant profitability challenges with sustained net losses and negative cash flows. The balance sheet highlights a concerning trend of increasing leverage and declining equity. While revenue growth is promising, the company's financial health is challenged by operational inefficiencies and cash flow issues.

Income Statement

Neutral

The company shows consistent revenue growth, with a 4.49% increase from 2023 to 2024 and a 31.10% increase from 2022 to 2023. However, the company has been posting significant net losses, with the net profit margin standing at -95.88% in 2024, indicating profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

Neutral

The balance sheet shows a decreasing trend in stockholders' equity, from $275.4 million in 2021 to $96.49 million in 2024, which is concerning. The debt-to-equity ratio has increased, suggesting rising leverage. However, the equity ratio remains relatively healthy at 62.11% in 2024, indicating that a majority of the company’s assets are financed by equity.

Cash Flow

Neutral

Free cash flow has been negative, though it improved by 11.76% from 2023 to 2024. The operating cash flow to net income ratio is negative, indicating challenges in converting sales into cash. The company also relies heavily on financing activities, evident from the positive financing cash flow.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
65.17M	62.37M	47.56M	40.45M	28.40M
	Gross Profit
43.94M	42.91M	31.25M	25.22M	17.69M
	EBIT
-66.57M	-74.83M	-87.82M	-71.49M	-37.16M
	EBITDA
-50.76M	-70.70M	-82.67M	-70.84M	-38.76M
	Net Income Common Stockholders
-62.49M	-78.98M	-87.45M	-73.67M	-39.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.23M	123.25M	178.61M	265.32M	97.34M
	Total Assets
155.31M	206.16M	243.84M	320.17M	132.12M
	Total Debt
30.03M	18.60M	16.74M	13.06M	7.25M
	Net Debt
-50.20M	-104.65M	-144.56M	-179.90M	-67.38M
	Total Liabilities
58.82M	54.71M	43.71M	44.77M	31.61M
	Stockholders Equity
96.49M	151.44M	200.13M	275.40M	100.51M
Cash Flow		Free Cash Flow
-51.00M	-57.80M	-80.47M	-64.61M	-34.93M
	Operating Cash Flow
-42.82M	-48.58M	-70.09M	-57.94M	-31.73M
	Investing Cash Flow
-8.18M	8.32M	41.97M	-56.93M	-24.32M
	Financing Cash Flow
11.59M	-2.82M	-1.57M	237.77M	107.05M

SOPHiA GENETICS Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.00

Price Trends

50DMA

3.12

Negative

100DMA

3.33

Negative

200DMA

3.50

Negative

Market Momentum

MACD

-0.01

Negative

RSI

47.77

Neutral

STOCH

21.32

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOPH, the sentiment is Negative. The current price of 3 is above the 20-day moving average (MA) of 2.98, below the 50-day MA of 3.12, and below the 200-day MA of 3.50, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 21.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOPH.

SOPHiA GENETICS Risk Analysis

SOPHiA GENETICS disclosed 85 risk factors in its most recent earnings report. SOPHiA GENETICS reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

SOPHiA GENETICS Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRX	68 Neutral	$185.86M	―	-16.51%	―	28.81%	-8.03%
WGS	53 Neutral	$1.92B	38.75	-16.61%	―	48.81%	72.54%
Sector *	52 Neutral	$5.23B	3.70	-41.86%	2.84%	16.58%	-0.16%
AMWL	50 Neutral	$107.35M	―	-44.04%	―	2.79%	58.22%
TXG	48 Neutral	$997.38M	―	-25.17%	―	-1.28%	30.29%
SOPH	48 Neutral	$200.49M	―	-60.75%	―	4.66%	11.33%

* Healthcare Sector Average

Performance Comparison

SOPH

SOPHiA GENETICS

2.99

-1.83

-37.97%

OPRX

OptimizeRx

9.91

-1.00

-9.17%

TXG

10x Genomics

8.63

-17.76

-67.30%

AMWL

American Well

6.96

-3.29

-32.10%

WGS

GeneDx Holdings

56.36

36.04

177.36%

EUDA

EUDA Health Holdings

3.93

2.08

112.43%

SOPHiA GENETICS Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q4-2024)

% Change Since: -4.46%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted several significant achievements, including strong new customer acquisition and improvements in cost management. However, these positives were offset by challenges in the BioPharma sector, a decline in Latin America, and overall flat revenue growth. The company is optimistic about future growth, particularly in the U.S. and with new applications like MSK-ACCESS and MSK-IMPACT.

Q4-2024 Updates

Positive Updates

Record Number of New Customers

SOPHiA GENETICS signed 92 new core genomic customers in 2024, including 31 in Q4, a record for the company.

Improvement in Adjusted Operating Loss

The company improved its adjusted operating loss by 20% year-over-year and achieved a 60 basis point increase in adjusted gross margin.

Strong U.S. Market Performance

Clinical revenue in the U.S. grew by 23% in 2024, with analysis volume increasing by 26%.

MSK-ACCESS and MSK-IMPACT Applications Launch

The company launched MSK-ACCESS and MSK-IMPACT applications, with MSK-ACCESS being adopted by 34 customers across 20 countries.

Expansion into Japanese Market

SOPHiA GENETICS expanded into the Japanese market, collaborating with Genesis Healthcare to accelerate genomic testing access.

Negative Updates

BioPharma Revenue Decline

Total revenue was impacted by a $4 million decline in BioPharma-related revenue in 2024.

Challenges in Latin America

Latin America experienced a notable decline in performance due to the acquisition of a top customer by another lab.

Flat Revenue Growth

Total revenue for the full year 2024 grew by only 4%, which was below long-term growth expectations.

Cash Burn Increase

Total cash burn for the full year 2024 was $58 million, up 5% from the prior year, largely due to exchange rate differences.

Company Guidance

During the SOPHiA GENETICS Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided guidance for 2025, projecting full-year revenue between $72 million and $76 million, representing a growth rate of 10% to 17%. This growth is primarily expected to be volume-driven, as the company anticipates a flat ASP for the year. The guidance reflects strong momentum from a record 92 new core genomic customers signed in 2024, with a focus on expediting implementation and expanding usage within these accounts. In 2024, SOPHiA GENETICS achieved a revenue of $65.2 million, within the guidance range, with an adjusted gross margin of 72.8%, up by 60 basis points, and an adjusted operating loss improved by 20% year-over-year. The company also highlighted its record analysis volume of 352,000 patients in 2024 and the expansion of its global reach to nearly 800 healthcare institutions across more than 70 countries. Looking forward, SOPHiA GENETICS aims to leverage its three key growth drivers: accelerating customer implementations, capitalizing on U.S. market momentum, and expanding groundbreaking applications like MSK-ACCESS and MSK-IMPACT.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.