SOPHiA GENETICS Q3 2025: Growth Amid Persistent Losses Demands Cash Flow Scrutiny

SOPHiA GENETICS' third-quarter results showcased strong revenue momentum but continued challenges in controlling losses. The company reported $19.5 million in revenue for Q3 2025, . While this growth reflects underlying business strength, the bottom line tells a different story. The net IFRS loss widened by 9% year-over-year to $20.0 million. Even the adjusted EBITDA metric, which management uses to highlight operational performance, .

Excluding those Swiss social charges, , demonstrating the significant impact of these non-cash payroll taxes on the headline figure. For the full year 2025, , signaling that the path to profitability remains distant. The company's optimism, , is tempered by the persistent loss profile.

This optimism, however, faces a major hurdle: the absence of transparency on cash flow. The critical cash flow statement for Q3 2025 has not been released or linked on the Investor Relations page as of November 2025, despite the availability of other quarterly materials like Q2 reports. This omission creates significant uncertainty. Without cash flow data, investors cannot accurately gauge the company's actual burn rate or liquidity position. It prevents assessment of whether the reported losses, particularly the substantial net IFRS loss, translate into immediate cash drain. This lack of visibility weakens confidence in the profitability metrics presented and raises questions about the sustainability of operations. The real test – and the key falsifier – will come when the cash flow statement is released; if it shows a significantly higher cash burn than anticipated, it would severely undermine the narrative of improving operational efficiency and raise serious concerns about the company's runway.

Sophia Genetics' growth story remains compelling on the surface. Q3 revenue climbed 23% year-over-year to $19.5 million, . The CEO framed this as evidence of strong operating leverage, suggesting the company is efficiently scaling its customer base. , .

However, a deeper look at profitability reveals significant tension between this top-line momentum and bottom-line sustainability. While excluding certain Swiss social charges, the adjusted EBITDA loss widened by 8% year-over-year to $10.2 million in Q3. Without those charges, the improvement would have been more substantial, showing a 13% YoY gain to $8.8 million. The full-year adjusted EBITDA loss guidance sits between $39-$41 million. This disconnect between accelerating revenue and a widening (or less-improved-than-expected) EBITDA loss casts doubt on whether the current growth trajectory is truly translating into improved profitability as management anticipates.

The lack of transparency around cash flow exacerbates these concerns. Investors cannot reconcile the impressive revenue growth and customer acquisition figures with the adjusted EBITDA performance because the crucial cash flow statement for Q3 2025 has not been released yet. Accessing the company's Investor Relations page confirms no Q3 results, including cash flow data, are currently published. Without this cash conversion data, it's impossible to assess if the high-value contracts are generating real, usable cash or if the company is burning through capital faster than the revenue growth justifies. The high average contract values alone are insufficient proof of sustainable growth without demonstrating they translate into robust cash inflows.

The key falsifier for these sustainability concerns lies in future cash flow performance. If Sophia Genetics can demonstrate, in subsequent quarters, a significant improvement in operating cash flow relative to its EBITDA trends – moving towards positive or at least narrowing the gap – it would provide strong evidence that the high-margin growth strategy is gaining traction and the current losses are a temporary investment in scalable infrastructure. Conversely, persistently weak or declining would reinforce worries that the aggressive growth is outpacing the company's ability to convert sales into profit and cash. Investors must await the missing Q3 cash flow data and subsequent results to gain a clearer picture.

SOPHiA GENETICS' latest revenue guidance-projecting $75 million to $77 million for 2025, . The 23% revenue jump in Q3 alone, , underscores continued market traction, according to the Q3 2025 results report. , . Even more concerning, , a critical metric for loss-making firms, as noted in the Investor Relations page.

Without cash flow data, , . , unchanged from prior expectations, , as reported in the Q3 2025 results report. Investors should treat the revenue upgrade as evidence of market reach, . , . Until then, .

The near-term landscape for SOPHiA GENETICS hinges on two critical data releases whose timing and content will determine whether confidence in its financial runway holds. First, , though its materiality is limited by design-the announcement only confirms the event itself without disclosing actual results or forward guidance, as detailed in the Q3 2025 earnings call transcript. This creates significant information asymmetry, as investors must wait for management commentary to gauge Q3 performance. Second, , as noted in the Investor Relations page. , . Conversely, , particularly if accompanied by credible path to sustainability. Until these data points emerge, ; . , .