SOPHiA GENETICS Q2 2026 earnings: Revenue rises 27% as adjusted EBITDA loss narrows

SOPHiA GENETICS (Nasdaq: SOPH) reported Q2 2026 revenue of $23.3 million, up 27% year over year, while basic and diluted loss per share narrowed to $0.30 from $0.33. Adjusted EBITDA loss improved 27% to $8.8 million, but gross margins contracted and the IFRS operating loss widened, highlighting a gap between adjusted progress and reported profitability.

Core financial results

Revenue grew 25% on a constant-currency basis, compared with reported growth of 27%, indicating an approximately two-percentage-point benefit from exchange rates. Gross profit increased more slowly than revenue because cost of revenue rose about 36%, reducing both reported and adjusted gross margins.

The table uses USD millions except for margins and per-share data.

Business and operating performance

Growth was supported by higher platform usage, expansion among existing customers, and faster growth in the U.S. and Liquid Biopsy businesses.

• SOPHiA DDM completed a record 115,000 analyses, up 22% year over year.
• U.S. revenue increased 64%, accompanied by 60% volume growth.
• Liquid Biopsy revenue grew 80%, while volume increased 70%.
• Net Dollar Retention rose to 117% from 107%, indicating increased spending among the existing customer base.
• Core genomics customers reached 542, compared with 490 one year earlier. The company signed 24 new core genomics customers during the quarter, which are expected to begin generating revenue over the next 12 months.
• SOPHiA GENETICS had 80 customers across more than 30 countries signed to adopt its MSK-ACCESS Liquid Biopsy application, although more than half had not yet completed implementation.

BioPharma projects with AstraZeneca, Kartos, and other partners also began contributing revenue. The company signed a multi-year agreement with AstraZeneca covering two companion diagnostic programs, its first such programs.

Adjusted EBITDA improved even as the IFRS operating loss widened

The company’s adjusted EBITDA loss narrowed by $3.2 million, but its IFRS operating loss widened by $1.6 million. Gross profit increased by $2.8 million, while combined research and development, selling and marketing, and general and administrative expenses rose by $4.3 million.

General and administrative costs increased to $15.2 million from $12.3 million, selling and marketing costs rose to $11.2 million from $10.0 million, and research and development costs edged up to $8.7 million from $8.5 million.

The adjusted EBITDA reconciliation excluded several material Q2 expenses, including $4.5 million of share-based compensation, $1.2 million of related social charges, $1.1 million of litigation expenses, and $1.3 million of restructuring costs, in addition to depreciation, amortization, interest, and other items. Management said targeted headcount and spending actions were implemented during the quarter as AI-driven productivity improvements allowed workflows to be streamlined.

The IFRS net loss nevertheless remained roughly flat because foreign-exchange losses declined to $0.5 million from $3.1 million and income tax expense fell. These benefits were partly offset by interest expense rising to $1.6 million from $0.6 million.

Cash flow and balance sheet

Cash and cash equivalents increased to $107.7 million at June 30, 2026, from $70.3 million at the end of 2025. The increase primarily reflected financing rather than operating cash generation: first-half financing cash inflow was $67.0 million, including $15.7 million of net proceeds from the at-the-market program and $54.0 million from the follow-on offering.

For the six months ended June 30, net operating cash outflow increased to $22.8 million from $19.0 million a year earlier. Investing cash outflow also rose to $5.0 million from $2.6 million, partly reflecting $4.5 million of capitalized development costs. Borrowings stood at $48.0 million at quarter-end.

2026 guidance

SOPHiA GENETICS raised both ends of its full-year revenue range by $2 million. The adjusted EBITDA loss outlook implies improvement from 2025, although the company did not provide a prior 2026 adjusted EBITDA range in the supplied results.

Management reaffirmed its expectation of approaching adjusted EBITDA breakeven by the end of 2026 and reaching positive adjusted EBITDA during the second half of 2027.

Recent insider transactions

The six-month insider summary shows 3,237,098 shares purchased across 27 transactions and 545,201 shares sold across 77 transactions, producing reported net purchases of 2,691,897 shares. However, the 10 most recent disclosed transactions consisted of nine sales and one derivative exercise.

Risks investors should monitor

• Margin pressure: Reported gross margin declined by 2.4 percentage points as cost of revenue grew faster than sales. Continued pressure could limit the profit contribution from revenue growth.
• Ongoing losses and cash consumption: The company remained unprofitable, and first-half operating cash outflow increased despite improvement in adjusted EBITDA. Preserving the expanded cash balance depends on reducing operating burn over time.
• Customer implementation timing: More than half of the 80 customers signed to adopt the Liquid Biopsy application had not completed implementation. Delays could defer the conversion of signed customers into revenue.
• Gap between adjusted and IFRS results: Share-based compensation and other excluded expenses remain material. Litigation expenses related to the Guardant Health lawsuits are expected to continue for the duration of the litigation and could increase.
• Profitability target execution: Reaching adjusted EBITDA breakeven requires continued revenue growth and cost discipline while the company maintains investment in its U.S., Liquid Biopsy, and BioPharma initiatives.

Summary

SOPHiA GENETICS delivered 27% revenue growth, led by higher U.S. and Liquid Biopsy activity, and raised its full-year revenue outlook. Adjusted EBITDA moved in the right direction, but lower gross margins, rising operating expenses, continued IFRS losses, and higher first-half cash burn show that the transition to profitable growth remains incomplete. Customer implementations, margin trends, cash consumption, and progress toward the company’s adjusted EBITDA targets are the main areas to monitor.