SOPHiA GENETICS SA (SOPH): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of SOPHiA GENETICS SA's business segments as of late 2025, and the Boston Consulting Group Matrix is the perfect tool for that, simplifying a complex portfolio based on market growth and relative share. Honestly, for a company projecting revenue between $75 million and $77 million but still facing an adjusted EBITDA loss of $39 million to $41 million, the strategic lines are critical to draw. We'll quickly sort their core DDM Platform and high-growth US market into Stars, identify where the massive potential of Liquid Biopsy sits as a Question Mark, and see why true Cash Cows haven't materialized yet. Dive in below to see exactly where you should be pushing capital and where the portfolio needs trimming.

Background of SOPHiA GENETICS SA (SOPH)

You're looking at SOPHiA GENETICS SA (SOPH), which operates as a cloud-native software technology company in the healthcare space. Its core mission is to expand access to data-driven medicine, primarily for patients dealing with cancer and rare disorders across the globe. SOPHiA GENETICS uses artificial intelligence to deliver these world-class care insights.

The company's main offering is the SOPHiA DDM™ Platform. This is a cloud-native system designed to analyze complex, multimodal data sets. We're talking about genomics, radiomics, clinical, biological, and digital pathology data all being crunched to give real-time, actionable insights. This platform serves a broad global network that includes hospitals, laboratories, and biopharma institutions.

Let's look at the numbers as of the third quarter ended September 30, 2025. Revenue for Q3 2025 hit $19.5 million, which was a solid jump of 23% year-over-year. The adjusted gross margin remained strong at 73.1% for the quarter. Still, the company posted a Net IFRS loss of $20.0 million, an increase of 9% compared to the prior year period.

The operational momentum seems to be building, which is important for a growth-stage company. SOPHiA GENETICS performed a record 99,000 analyses on the SOPHiA DDM™ platform in Q3, showing 9% volume growth. They ended Q3 2025 with 488 core genomics customers, up from 462 a year prior. Plus, they signed 31 new customers in Q3 alone, and the average contract value for those new deals was up a massive 180% year-over-year. That's defintely a positive sign for future recurring revenue.

Based on this performance, SOPHiA GENETICS increased its full-year 2025 revenue guidance to a range of $75 to $77 million, representing growth between 15% and 18%. The expected full-year adjusted EBITDA loss is now projected to be between $39 and $41 million. The management team is committed to profitable growth, targeting an adjusted EBITDA breakeven by the end of 2026 and crossing into positive territory in the second half of 2027.

Key product areas driving this include the adoption of their Liquid Biopsy offering and specific applications like MSK-ACCESS® powered by SOPHiA DDM™. The company continues to focus on scaling its AI-powered precision medicine platform across its global network.

SOPHiA GENETICS SA (SOPH) - BCG Matrix: Stars

You're analyzing the high-growth, high-market-share segment of SOPHiA GENETICS SA's business, the Stars. These units are leaders in their space but require significant cash investment to maintain that growth trajectory. Here's the quick math on the key drivers positioning these assets as Stars as of the third quarter of 2025.

The SOPHiA DDM™ Platform is the engine here. Its scalability is evident in the financial performance, showing a strong 73.1% adjusted gross margin in Q3 2025. This margin strength, combined with accelerating top-line momentum, supports the raised full-year revenue guidance for SOPHiA GENETICS SA, now projected to be in the range of 15% to 18% year-over-year growth for fiscal 2025.

The geographic and segment performance confirms the high-growth market share narrative. The North American (NORAM) market is definitely a growth hotspot, evidenced by analysis volume increasing by 26% year-over-year in Q3 2025. Also, the U.S. Core Genomics revenue is outpacing the company average, delivering 30% year-over-year revenue growth in the U.S. segment for the quarter.

The platform's adoption continues to expand, reaching 488 core genomics customers as of September 30, 2025. New business momentum is strong, with 31 new customers signed in Q3 2025, and the average contract value for those new signings was up 180% year-over-year. Honestly, this suggests a successful shift toward larger, more valuable accounts.

The Oncology Applications segment is the largest clinical area leveraging this scale. The platform's reach is substantial, supporting over 800+ institutions globally with its analysis capabilities.

Here's a breakdown of the key performance indicators supporting the Star classification:

The investment required to maintain this leadership position is reflected in the ongoing operational spend. The company's adjusted EBITDA loss for Q3 2025 was $10.2 million, improving to an $8.8 million loss after excluding the impact of elevated Swiss social charges on equity-based compensation.

Key operational highlights driving the high growth and market share include:

• Platform analysis volume grew 9% year-over-year to 99,000 in Q3 2025.
• 31 new customers signed in Q3 2025, up from 22 in Q3 2024.
• Average contract value for new signings increased 180% year-over-year.
• Oncology applications are leveraged across 800+ institutions globally.

SOPHiA GENETICS SA (SOPH) - BCG Matrix: Cash Cows

SOPHiA GENETICS has no true Cash Cows yet, as the company is not profitable and is burning cash to fund growth. For the third quarter ended September 30, 2025, the Net IFRS loss was $20.0 million, and the Adjusted EBITDA loss was $10.2 million. Still, excluding the impact of elevated Swiss social charges on equity-based compensation, the Adjusted EBITDA loss improved year-over-year to $8.8 million.

You see a stable core customer base, which is the hallmark of a potential Cash Cow. As of September 30, 2025, SOPHiA GENETICS reached 488 core genomics customers. This group provides the most reliable, recurring revenue stream with low annualized churn of approximately 4%. This stickiness is what you want to see in a mature segment.

Mature European Market Segments are established geographies that, in theory, provide predictable, high-margin revenue to partially offset the company's significant R&D and S&M spend. While we don't have a precise revenue split for Europe, the overall platform performance suggests where that high-margin potential lies.

Platform Scalability is a key operational cash-flow strength, even while the company is investing heavily. The cloud-native SOPHiA DDM™ platform's ability to maintain a high adjusted gross margin of 73.1% in Q3 2025, despite increasing data volume, shows strong unit economics. That margin is definitely something to watch as revenue scales.

Here's a quick look at the Q3 2025 operational metrics that hint at this underlying strength:

The operational momentum is clear, even if the bottom line is still negative due to investment. You can see the underlying engine is running hot:

• Average contract value of new signings increased by 180% year-over-year.
• Full-year revenue guidance was increased to a range of $75 million to $77 million.
• The company expects to be approaching adjusted EBITDA breakeven by the end of 2026.
• The backlog of implementations is at the highest levels in company history.

Finance: draft the cash burn projection based on the $39 million to $41 million full-year Adjusted EBITDA loss guidance by Friday.

SOPHiA GENETICS SA (SOPH) - BCG Matrix: Dogs

Dogs are the business units or products where SOPHiA GENETICS SA has a low market share in a low-growth market. These areas tie up capital without providing significant returns, making divestiture or minimal investment the typical strategy. The overall analysis volume growth rate for SOPHiA GENETICS SA in the third quarter of 2025 was 9% year-over-year, which is significantly lower than the growth seen in the high-performing regions, suggesting that a substantial portion of the business is operating in a low-growth environment.

The strategic focus is clearly on accelerating growth in markets like APAC, which saw 35% year-over-year analysis volume growth, and NORAM, with 26% year-over-year analysis volume growth in Q3 2025. This disparity implies that the remaining segments-the Dogs-are contributing marginal growth relative to the company's overall trajectory toward its full-year revenue guidance of $75 to $77 million for 2025.

Here's a look at the performance contrast that helps define the Dogs segment:

Legacy/Niche Genomic Applications

These are the older analysis tools that are not driving the platform's current momentum. While SOPHiA GENETICS SA serves over 780 healthcare institutions globally, the lower-than-average analysis volume growth is likely concentrated here. These applications are being superseded by newer, higher-value offerings, such as the Liquid Biopsy application, which is securing major new customer wins, including at Sunnybrook Health. The older tools represent capital tied up in technology that is not scaling effectively.

• Older analysis tools with minimal platform adoption.
• Lower contribution to the $19.5 million Q3 2025 revenue.
• Risk of becoming obsolete as the platform evolves.
• Minimal cash generation relative to maintenance cost.

Low-Growth Geographies

SOPHiA GENETICS SA operates internationally, with revenues generated in U.S. dollar, euro, and Swiss franc, among others. The strong performance in APAC and NORAM, alongside 30% year-over-year revenue growth in the U.S., clearly demarcates the high-growth areas. The Dogs category here would be the established, yet slow-growing, international markets outside of these key focus areas. These regions are not the focus for major investment to drive the next phase of growth.

The company's overall customer base is 488 core genomics customers as of September 30, 2025. The low-growth geographies house customers whose usage rates are not accelerating at the pace of the Stars or Cash Cows.

Underutilized Data Modalities

The SOPHiA DDM™ platform analyzes multimodal data, including genomics, radiomics, and digital pathology. Initial offerings in non-core modalities, such as early radiomics or digital pathology tools, fall into this category if they have not yet achieved critical mass. These represent potential future Stars that are currently underperforming due to low adoption or integration challenges. They are consuming resources without generating commensurate revenue, fitting the profile of a Dog until a clear path to market share gains is established. The company is focused on scaling the core genomics and high-value applications like MSK-ACCESS®.

Expensive turn-around plans for these units are generally avoided; the capital is better deployed toward the 180% year-over-year increase in average contract value seen in new signings.

SOPHiA GENETICS SA (SOPH) - BCG Matrix: Question Marks

You're looking at the areas of SOPHiA GENETICS SA that are burning cash now but hold the key to future market dominance. These are the high-growth bets where market share is still being fought for, meaning they consume capital without delivering substantial current returns. For 2025, the expected full-year Adjusted EBITDA loss is between $39 million and $41 million, which is the cash burn funding these ambitious ventures.

Liquid Biopsy Offering (MSK-ACCESS®)

This application is clearly in a high-growth market, with the Total Addressable Market (TAM) estimated to be $5B+. While the specific segment growth rate you mentioned for Q2 2025 isn't in the latest reports, the momentum is evident in adoption figures. As of September 2025, 60 leading institutions across the globe have adopted MSK-ACCESS® powered with SOPHiA DDM™. The investment here is significant, as the majority of these new adopters are expected to complete implementation and begin generating revenue over the next 3 - 6 months. This shows a classic Question Mark profile: massive market potential requiring upfront sales and implementation investment before revenue fully materializes.

BioPharma Partnerships

These collaborations represent high-reward potential, but the financial payoff is deferred. For instance, revenue recognition related to the newly announced partnership with AstraZeneca will primarily begin in Q4 2025, with milestones continuing into 2026 and beyond. This structure means SOPHiA GENETICS SA is investing resources now-developing regulated, global companion diagnostic (CDx) assays with partners like Myriad Genetics and A.D.A.M. Innovations-for returns that won't significantly impact the current P&L. It's a bet on future regulatory success and large-scale commercialization, consuming cash in the near term.

Multimodal Data Analytics

The core platform, SOPHiA DDM™, is the engine for this, integrating genomics with other data types. SOPHiA GENETICS SA has invested over $400 million since inception to develop the AI Factories and proprietary algorithms needed for this multimodal analysis. This heavy investment is necessary to capture share in what is an emerging, massive market. The platform's usage shows growth, with a record 99,000 analyses performed in Q3 2025, representing 9% year-over-year volume growth. This volume growth, set against the massive R&D spend, confirms its status as a cash consumer in a market where SOPHiA GENETICS SA is still fighting to establish dominant share.

New Customer Cohort Value

The strategy to win larger accounts is clear, but it requires upfront investment to onboard them for future revenue streams. The Q3 2025 cohort of 31 new customers-up from 22 in Q3 2024-is a strong indicator of market pull. Critically, the average contract value (ACV) for these new signings was up 180% year-over-year. However, these 31 new customers will implement SOPHiA DDM™ and begin generating revenue over the next twelve months. This lag between signing the high-value contract and realizing the revenue is the definition of a Question Mark consuming cash today for potential Star status tomorrow. The company is targeting adjusted EBITDA breakeven by the end of 2026.

You need to track the conversion of these high-potential areas into Stars. Finance: finalize the Q4 cash flow projection incorporating the expected Q4 revenue ramp from the AstraZeneca deal by next Tuesday.