SOPHiA GENETICS Q2 2025: Dissecting Contradictions in Biopharma Growth, ASPs, and Strategic Focus

Biopharma growth expectations, implementation time reduction, AstraZeneca contract structure, ASP growth drivers and market conditions, and increased focus on GCS and sales force efficiency are the key contradictions discussed in SOPHiA GENETICS' latest 2025Q2 earnings call.



Revenue Growth and Business Momentum:
- SOPHiA GENETICS reported total revenue growth of 16% year-over-year for Q2 2025, with 20% growth excluding BioPharma.
- This growth was driven by strong new business momentum, including record new customer signings and consistent clinical bookings exceeding expectations.

Expansion in Clinical Market:
- The expansion in the U.S. market, excluding BioPharma, saw 19% year-over-year revenue growth.
- This growth was driven by new customer acquisitions, such as UC Irvine and the University of Alabama at Birmingham, and the signing of new applications like MSK-ACCESS.

Improvement in Cash Burn and Efficiency:
- SOPHiA GENETICS reduced cash burn to $8.7 million in Q2, a 35% year-over-year improvement.
- This improvement was attributed to targeted platform innovations leading to reduced cloud compute and storage costs, resulting in a 74.4% adjusted gross margin increase.

Strategic Partnership with AstraZeneca:
- The signing of a new multiyear extension with AstraZeneca was announced, marking the largest contract in SOPHiA GENETICS' history.
- This partnership focuses on leveraging SOPHiA's proprietary AI factories to develop predictive models and generate real-world evidence, with significant milestones expected to be achieved by the end of 2026.