SOPHiA GENETICS Reports Third Quarter 2026 Results

SOPHiA GENETICS posts 25% revenue growth but remains unprofitable in Q3 2026.

What the company is saying

SOPHiA GENETICS, led by CEO Ross Muken, highlights a strong third quarter with $24.3 million in revenue, up 25% year-over-year, and emphasizes record analysis volumes and accelerating BioPharma momentum. The company frames its narrative around operational scalability, improved adjusted EBITDA loss by 31% to $6.1 million, and expansion in North America and Asia Pacific, with 45% and 33% revenue growth respectively. Management attributes these results to record analysis volume, strong U.S. market performance, and new BioPharma partnerships. The company now expects full-year 2026 revenue at the upper end of its $94–96 million guidance, though warns that recent foreign exchange movements could pressure Q4 revenue. SOPHiA GENETICS stresses future growth catalysts from new geographies, products, and BioPharma relationships, mentioning 30 new genomics customers and three new BioPharma deals in Q3. The tone is confident, with a stated goal to achieve positive adjusted EBITDA in the second half of 2027.

What the data suggests

The company delivered $24.3 million in Q3 2026 revenue, a 25% increase year-over-year, and performed a record 118,000 analyses, up 19%. Gross margin was 65.7% reported (72.8% adjusted), nearly flat versus 66.3% reported (73.1% adjusted) last year. Net loss was $20.3 million, up 1% year-over-year, while adjusted EBITDA loss improved 31% to $6.1 million. Net Dollar Retention rose to 118% from 108%, and the customer base expanded from 488 to 551. The company signed 30 new core genomic customers, with 4,200 Liquid Biopsy analyses performed (up 100%+), and notable regional revenue growth: 45% in North America, 33% in Asia Pacific, and 41% in the U.S. A U.S. military medical center deal is valued at over $2 million per year. Full-year 2026 revenue is now expected at the upper end of $94–96 million, with adjusted EBITDA loss forecast at $29–32 million, a significant improvement from $41.5 million in FY 2025. While operational and financial momentum is clear, the company remains unprofitable and the impact of new partnerships is not yet quantified.

Analysis

The announcement presents a positive tone, highlighting strong year-over-year revenue growth (25%), improved adjusted EBITDA loss (down 31%), and expanding customer metrics. These realised results are supported by detailed numerical disclosures, including revenue, gross margin, net loss, and operational KPIs. However, the company remains unprofitable, with a net loss of $20.3 million for the quarter and continued adjusted EBITDA losses projected for 2026. Several forward-looking statements—such as achieving positive adjusted EBITDA in the second half of 2027 and the impact of new partnerships—are aspirational and lack immediate financial quantification. While the operational momentum is clear, the narrative somewhat inflates the signal by emphasizing future profitability and partnership potential without concrete near-term earnings impact. The gap between narrative and evidence is moderate: realised growth is strong, but profitability remains a future goal.

Risk flags

• ●Profitability remains elusive, with a net loss of $20.3 million in Q3 2026 and continued adjusted EBITDA losses forecast for 2026. This persistent unprofitability raises questions about the company's ability to achieve its stated goal of positive adjusted EBITDA by late 2027, especially if growth slows or costs rise.
• ●The company’s revenue guidance is partially offset by foreign exchange headwinds, which could negatively impact Q4 2026 results if adverse currency trends persist. This introduces uncertainty to near-term revenue realization and may affect investor confidence.
• ●While the company announces several new partnerships and customer wins, the financial impact of these deals—especially the BioPharma collaborations and AstraZeneca agreement—is not quantified. Without clear contract values or expected revenue contributions, the scale and timing of these growth drivers remain speculative.
• ●Operational scaling, particularly with 30 new customers expected to generate revenue over the next year, requires successful onboarding and ramp-up. Delays or underperformance in these accounts could impact future revenue growth and margin improvement.
• ●The company’s rapid expansion across multiple geographies and product lines increases operational complexity and execution risk, especially as it seeks to maintain high gross margins and customer retention rates.

Bottom line

SOPHiA GENETICS is growing rapidly, with Q3 2026 revenue up 25% and strong operational metrics, but it remains unprofitable with a $20.3 million quarterly net loss. The company’s improved adjusted EBITDA loss and rising Net Dollar Retention signal operational leverage, yet the path to profitability is still projected for late 2027. New customer signings and BioPharma partnerships are promising but lack quantified near-term financial impact, making their contribution to future results uncertain. Currency headwinds and the need to successfully onboard new customers add risk to the near-term outlook. Investors should focus on whether SOPHiA GENETICS can sustain high growth, convert new deals into material revenue, and close the gap to profitability. The most important takeaway is that while momentum is strong, the investment case still hinges on delivering actual earnings improvement and translating partnerships into measurable financial results.

Announcement summary

(NASDAQ:SOPH) SOPHiA GENETICS reported financial results for the third quarter ended September 30, 2026. Revenue for the quarter was $24.3 million, representing a 25% year-over-year increase on a reported basis. Gross margin was 65.7% on a reported basis and 72.8% on an adjusted basis, compared to 66.3% reported and 73.1% adjusted in the prior year period. Net loss for the quarter was $20.3 million, up 1% year-over-year. Adjusted EBITDA loss was $6.1 million, an improvement of 31% year-over-year. The company now expects full-year 2026 revenue to be at the upper end of its previously issued guidance range of $94 million to $96 million. Adjusted EBITDA loss for 2026 is expected to be between $29 million and $32 million, compared to $41.5 million in FY 2025. SOPHiA GENETICS performed a record 118,000 analyses on SOPHiA DDM™, representing 19% year-over-year volume growth. Net Dollar Retention increased to 118% in Q3 2026, up from 108% in Q3 2025. The company reached 551 core genomics customers as of September 30, 2026, up from 488 in the prior year period. Thirty new core genomic customers were signed in Q3 2026. SOPHiA GENETICS delivered strong growth in North America and Asia Pacific with 45% and 33% year-over-year revenue growth, respectively. In the U.S., revenue grew 41% year-over-year in Q3 2026. The company signed two new U.S. customers: PathGroup for Solid Tumors and HemOnc, and the University of Arkansas for Medical Sciences (UAMS) for HemOnc. A notable expansion deal was signed with a leading U.S. military medical center, valued at over $2 million per year, for Rare Disorders applications. SOPHiA GENETICS performed 4,200 Liquid Biopsy analyses in Q3 2026, up over 100% year-over-year. Major new customers were signed to MSK-ACCESS® powered with SOPHiA DDM™ and to the Solid Tumor application MSK-IMPACT® powered with SOPHiA DDM™. The company signed a new multimodal AI collaboration with a top BioPharma company to develop a multimodal AI predictor for bladder cancer. A multi-year agreement was signed with AstraZeneca in Q3 to launch two companion diagnostic (CDx) programs: a decentralized Solid Tumor CDx and a Hematological Oncology test for blood cancer patients. Additional details were announced on the Solid Tumor CDx, including the incorporation of Myriad Genetics' PrGIS technology into the Extended Homologous Recombinant Solution (HRS), powered by SOPHiA DDM™. SOPHiA GENETICS reaffirmed its commitment to profitable growth and aims to achieve positive adjusted EBITDA in the second half of 2027. The company will host a conference call and live webcast to discuss the third quarter 2026 results on November 3, 2026, at 8:00 a.m. Eastern Time / 2:00 p.m. Central European Time.

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