Why Did Sophia Genetics Plunge 12.57% Despite Revenue Growth?

On August 6, 2025, Sophia Genetics experienced a significant drop of 12.57% in pre-market trading, reflecting investor concerns and market reactions to recent financial reports and strategic developments.

Sophia Genetics reported its second-quarter 2025 financial results, highlighting a 16% year-over-year revenue growth to $18.3 million. The company's gross margin improved to 67.0% on a reported basis and 74.4% on an adjusted basis, up from 68.2% and 73.2% respectively in the prior year. Despite these improvements, the company's IFRS net loss increased by 48% year-over-year to $22.4 million, and the adjusted EBITDA loss rose by 33% to $11.7 million. The cash burn improved by 35% to $8.7 million, excluding foreign exchange impact.

The company's strategic initiatives and partnerships have been a key focus. Sophia Genetics secured 35 new core genomics customers in Q2, capitalizing on robust clinical demand and innovative applications. Notably, the company signed a multi-year AI breast cancer partnership with AstraZeneca, demonstrating the value of its network and AI capabilities to BioPharma. Additionally, the company expanded its partnership with Dasa, the largest medical diagnostics company in Latin America, adopting new applications such as HemOnc and Rare Disease.

Sophia Genetics also reported significant progress in expanding the usage of its SOPHiA DDMTM platform, performing 95,000 analyses and reaching 490 core genomics customers. The company's Liquid Biopsy application, MSK-ACCESS® powered with SOPHiA DDMTM, saw the first wave of material volume, contributing to higher-than-average selling prices. The company's U.S. market also showed strong growth, with over 19% year-over-year revenue growth excluding BioPharma.