SOPHiA GENETICS SA Ordinary Shares 2026 Q2 Earnings Call

Good morning, everyone. Welcome to the SOPHiA GENETICS second quarter 2026 earnings conference call. Joining me today to discuss the results are Ross Muken, our Chief Executive Officer, and George Cardoza, our Chief Financial Officer. I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. You should not place undue reliance on forward-looking statements. Additional information regarding these risks, uncertainties, and factors that could cause results to differ appears in the press release issued by SOPHiA GENETICS today and in the documents and reports filed by SOPHiA GENETICS from time to time with the Securities and Exchange Commission. During this call, we'll present both IFRS and non-IFRS financial measures.

A reconciliation of IFRS to non-IFRS measures is included in today's earnings press release, which is available on our website. With that, I'll now turn the call over to Ross.

Thanks, Kellen. Good morning, everyone. Today is my first earnings call as CEO. Before we jump into the quarter, let me tell you about where we are as a company and where we're going. Since SOPHiA was founded in 2011, the mission has not changed. Jürg started SOPHiA with a dream to use genomic and clinical data to improve patient outcomes across the world. Today, the destination is just as clear. We intend to become the AI platform for precision medicine, the connective intelligence layer that makes every clinical decision smarter than the one before it. What has changed over the past decade is how close we are to the destination and how clear the path forward has become. Our business today is healthier than ever.

Revenue is accelerating, the network is built, the platform thesis is proven, and customer trust, which we have earned across more than 1,000 institutions in 75 countries, is a moat that cannot be bought or replicated. This is a company built on a proven foundation with a large market ahead of it and everything it needs to operate at scale it has not yet reached. My job is to deliver that scale for patients who deserve better outcomes, for shareholders who trusted in this platform's long-term potential, and for a team that has spent years earning the right to win. The plan for getting there was laid out in the founding strategy. Phase 1 was to build. We spent a decade building a network and AI platform, driving widespread adoption, and delivering value to clinicians and patients along every step of the way. Phase 2 is to leverage.

To leverage our network and its data to power biopharma partnerships, build real-world evidence, and bring clinical intelligence closer to the point of care. This is how SOPHiA DDM becomes the AI platform for precision medicine. As we look ahead, four interconnected pillars will fuel our future growth. First, we will continue to scale genomic diagnostics globally, landing new customers and expanding within existing accounts to build the network that powers everything we do. Second, we will evolve our genomic applications into regulated companion diagnostics and software as a medical device to get us closer to the patient, collect even more data, and further extend our network.

Third, we will use companion diagnostics and multimodal software as a medical device to evolve our genomic data stream into a true real-world evidence data layer that connects clinical, genomic, and other multimodal data and creates a strategic asset for biopharma and clinicians broadly. Last, we will leverage our data and AI to pioneer clinical intelligence and create tools like digital twins that power decisions across the full clinical picture. In other words, we are past the existential questions. Is the thesis right? Can the network be built? We have answered both. Now we execute. With that, let me update on what we delivered in the second quarter and how we are setting the tone for expected future performance. Revenue grew 27% year-over-year in Q2, and analysis volume was up 22%.

We demonstrated strong operating leverage in the quarter as adjusted EBITDA loss improved 27% year-over-year, dropping 60% of our revenue growth down to the bottom line. We continued to push to scale genomic diagnostics globally by performing a record 115,000 patient analysis in Q2, while also fueling future growth with new wins. We landed 24 new customers in the second quarter alone and expanded nicely across existing accounts with net dollar retention of 117%, 1,000 basis points versus last year. The primary drivers behind our performance in the second quarter was growth in the U.S. and in liquid biopsy. In Q2, we delivered 64% year-over-year revenue growth in the U.S. market. This performance was driven by 60% volume growth as many U.S. customers begin to come online. The growth has been especially impressive given the increasingly large base in the U.S.

To continue fueling this growth, we landed several new customers in the quarter. We signed the Children's Hospital of Philadelphia, the first pediatric hospital in America and a global leader in pediatric oncology. Together, we are developing a new liquid biopsy test optimized for pediatric cancers. I couldn't be more excited for this partnership, and I'm looking forward to working together to help young cancer patients. This signing, as well as other recent momentum in the U.S., is part of a broader trend. In the past 12 months, we have seen an inflection of demand in the U.S. market. As reimbursement rates become more established and denial rates improve, hospitals and labs are waking up to the benefits of launching their own testing capabilities. Central U.S. labs have proven that testing is immensely profitable and that genomic data has significant value.

U.S. hospitals and labs are making in-house testing part of their core strategy, and those who adopt SOPHiA are seeing significant benefits. The second key growth driver in Q2 was liquid biopsy, where we delivered 80% year-over-year revenue growth. We also signed major new customers in the quarter, including AZ Delta Roeselare, one of the largest hospitals in Belgium, Policlinico Riuniti Hospital at the University of Foggia in Italy, and Sultan Qaboos Cancer Center in Oman. In total, we've now signed 80 liquid biopsy customers globally, more than half of which are still yet to begin generating revenue, giving us substantial runway to support future growth. As our genomics footprint continues to expand and our network becomes larger, many players in the space have come to recognize the value of our unique global reach and the data being streamed through our platform.

AstraZeneca, in particular, has been a key partner of SOPHiA for the past several years. They have contracted us to build AI models for patient selection and trial design, partnered with us to access real-world evidence from our network, and sponsored the deployments of our tests globally. Today, I'm thrilled to announce the latest collaboration between SOPHiA and AZ. This morning, we announced the launch of not one, but two companion diagnostic programs with AstraZeneca, the first CDx wins in SOPHiA's history. I'm excited now to share a bit of information about each program. For the first CDx program, we will develop our solid tumor application into a decentralized companion diagnostic. The second CDx program will leverage our hematological oncology application to support a therapy for patients with blood cancer.

These two CDx programs represent the value of our global network and decentralized model, as well as our ability to get even closer to the patient with increasingly regulated products. These programs will not only provide a meaningful revenue accelerator for years to come, but they will also provide a foundation to collect even more data about the patient, build real-world evidence assets, and develop new and unique clinical intelligence tools. With these two wins, we are just getting started. Beyond biopharma, we also announced a significant evolution of one of our closest clinical partnerships in Q2. In the spirit of pioneering clinical intelligence, Memorial Sloan Kettering and SOPHiA announced the signing of an MoU to form a joint venture. The JV will combine MSK's clinical expertise, testing footprint, and unmatched multimodal data assets with SOPHiA's AI platform to accelerate a new generation of precision oncology.

Specifically, we will aim to build an AI lab of the future in New York City with infrastructure to develop and launch new applications, support biopharma, and build new multimodal clinical intelligence tools. We couldn't be more excited about this partnership, and I look forward to keeping you updated as we move to a definitive agreement in the coming months. To conclude, Q2 was an outstanding quarter. Revenue growth continues to accelerate, and we continue making great progress towards profitability. The market is reshaping itself around intelligence, and we are perfectly positioned to accelerate this movement. As a result, we are raising our full-year revenue guidance to $94 million-$96 million or 22%-24% growth. This reflects our confidence in both our execution and the opportunity ahead. In addition, we also reaffirm our commitment to profitable growth.

As stated previously, we expect to be approaching adjusted EBITDA breakeven by the end of this year and crossing over to positive adjusted EBITDA in the second half of 2027. In June, we closed an oversubscribed public offering that raised approximately $57.5 million in gross proceeds. This fundraising brings our cash and cash equivalents to $107.7 million at the end of Q2. We believe our current capital is now sufficient to fund our growth plans and will enable us to control our own destiny going forward. With that, I'll turn the call over to George, who will discuss the results in more detail.