SOPHiA GENETICS SA (SOPH): Business Model Canvas [Dec-2025 Updated]

You're trying to map the core engine of SOPHiA GENETICS SA, and honestly, the 2025 figures show a classic high-growth tech play: massive investment fueling platform expansion. As an analyst who's seen this playbook, their model is built on democratizing complex genomic data through their cloud platform, connecting a growing network of $\mathbf{488}$ clinical labs (as of Q3 2025) with biopharma giants. But here's the trade-off you need to see clearly: they project revenues between $\mathbf{\$75 \text{ million}}$ and $\mathbf{\$77 \text{ million}}$ for the full year, while still expecting an Adjusted EBITDA loss in the $\mathbf{\$39 \text{ million}}$ to $\mathbf{\$41 \text{ million}}$ range due to heavy R&D. Check out the full Business Model Canvas below to see precisely how their key activities and partnerships are structured to turn that investment into future market share.

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that power SOPHiA GENETICS SA's global reach and platform utility as of late 2025. These aren't just names on a slide; they represent concrete integrations and revenue drivers.

AstraZeneca for AI-powered Oncology Diagnostics and Liquid Biopsy Deployment

SOPHiA GENETICS SA signed two major new partnerships with AstraZeneca in Q3 2025. One deal focuses on developing an optimized next generation sequencing (NGS) solution to detect genetic mutations in the PIK3CA/AKT1/PTEN pathway using SOPHiA GENETICS' AI algorithms. The second Q3 2025 agreement involves leveraging SOPHiA GENETICS' multimodal AI Factories to generate evidence on the efficacy and value of therapies for breast cancer. This builds on an ongoing collaboration, expanded in April 2025, to accelerate the global deployment of MSK-ACCESS® powered with SOPHiA DDM™ to a total of 30 clinical institutions worldwide in 2025. The initial partnership for MSK-ACCESS® deployment was announced in October 2024. This Q2 2025 agreement was noted as the largest contract in company history at that time.

Memorial Sloan Kettering (MSK) for Co-developing MSK-IMPACT®/MSK-ACCESS® Assays

The foundational work with Memorial Sloan Kettering (MSK) began in 2023 to bring MSK's cancer testing capabilities worldwide using SOPHiA DDM™. The resulting Liquid Biopsy test, MSK-ACCESS® powered with SOPHiA DDM™, launched in April 2024. The solid tumor test, MSK-IMPACT® powered with SOPHiA DDM™, launched in October 2024. As of September 2025, 60 leading institutions across the globe have adopted MSK-ACCESS® powered with SOPHiA DDM™. The Total Addressable Market (TAM) for Liquid Biopsy is estimated to be $5B+.

Sequencing Technology Providers

SOPHiA GENETICS SA announced partnerships in November 2025 with both Complete Genomics and Element Biosciences to integrate its AI-powered analytics DDM platform with their sequencing hardware. This aims to streamline genomic workflows for precision medicine research. With Element Biosciences, the integration connects SOPHiA DDM™ with the AVITI24 5D multiomic and AVITI next-generation sequencing systems for an end-to-end workflow. Under the agreement with Complete Genomics, the pair will launch and co-market the MSK-IMPACT and MSK-ACCESS AI applications, which will run on Complete Genomic's DNBSEQ-T1+ sequencer.

Precision for Medicine for Integrating the Platform into Biopharma Clinical Trials

In April 2025, SOPHiA GENETICS SA announced a strategic partnership with Precision for Medicine to enhance its biomarker discovery and precision medicine services. Precision for Medicine will integrate the SOPHiA DDM™ Platform for biomarker discovery, clinical trial assays (CTAs), and advanced algorithms. A key component is making MSK-ACCESS® powered with SOPHiA DDM™ available as a service for biopharma clients, enabling retrospective clinical trial data analysis and improved patient stratification.

Global Network of Healthcare Institutions

The SOPHiA DDM™ platform connects a vast network that drives collective intelligence and data contribution. As of late 2025, over 800+ healthcare institutions use the platform globally. These institutions span over 70+ countries. The platform performed a record 99,000 analyses on SOPHiA DDM™ in Q3 2025, analyzing over 350,000+ patients per year as of November 2025. The company reached 488 core genomics customers as of September 30, 2025.

Here's a quick look at the scale of the network and key collaborations:

Partner Type/Metric	Key Partner(s)	Latest Reported Number/Amount
Global Network Size (Institutions)	Various	800+
MSK-ACCESS® Adoption (Institutions)	AstraZeneca/MSK	30 clinical institutions targeted for 2025 deployment
MSK-ACCESS® Adoption (Total)	MSK	60 leading institutions as of September 2025
Annual Patient Analysis Volume	Global Network	350,000+ patients analyzed per year
Core Genomics Customers	Various	488 as of September 30, 2025
Q3 2025 New Customer Signings	Various	31 new customers

The average contract value of new signings increased by 180% year-over-year as of Q3 2025. This defintely shows the increasing value captured from these strategic relationships.

The platform's utility is also seen in the volume metrics:

• Performed 99,000 analyses on SOPHiA DDM™ in Q3 2025.
• Q3 2025 analysis volume growth was 9% year-over-year.
• NORAM analysis volume growth was 26% year-over-year in Q3 2025.

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Key Activities

You're looking at the core engine of SOPHiA GENETICS SA, the activities that actually drive the revenue and build the network effect. It's not just about having the tech; it's about the relentless work behind the scenes to keep it running, compliant, and ahead of the curve. Here's the breakdown of what SOPHiA GENETICS SA is actively doing to execute its model as of late 2025.

Developing and maintaining the cloud-native SOPHiA DDM™ Platform

This is the foundation, the cloud-native SOPHiA DDM™ Platform. Maintaining it means ensuring its scalability and performance, which you can see reflected in the volume metrics. For instance, in the third quarter of 2025, the platform processed a record 99,000 analyses.

The platform's utility is also measured by its cumulative impact. By the end of the first quarter of 2025, SOPHiA GENETICS SA hit a major milestone, passing 2 million cumulative genomic profiles analyzed since the platform's inception. This shows continuous, heavy usage.

The operational efficiency of this development and maintenance effort is evident in the margins. For Q3 2025, the adjusted gross margin stood at 73.1%, which is a testament to the platform's scalable architecture, even as analysis volume grew year-over-year by 9% in that quarter.

Continuous development of proprietary AI/ML algorithms (AI Factories)

The proprietary AI/ML algorithms are what make the data actionable, and SOPHiA GENETICS SA is actively developing these, often in collaboration with major players. A key activity here is leveraging what they call their multimodal AI Factories to generate evidence.

We see this in action through strategic deals. In Q3 2025, SOPHiA GENETICS SA signed major new partnerships with AstraZeneca specifically to leverage these AI Factories for generating evidence on therapy efficacy for breast cancer, and to develop an optimized next-generation sequencing solution for detecting mutations in the PIK3CA/AKT1/PTEN pathway.

The intelligence feeding these factories is vast. As of March 2025, the platform was informed by an unmatched dataset from 800 healthcare institutions across 72 countries, continuously refining the AI capabilities.

Global sales, implementation, and customer support for clinical labs

Selling and onboarding are critical for revenue realization. You need to look at customer acquisition and the value of those new deals. In Q3 2025, SOPHiA GENETICS SA landed 31 new customers who are set to implement SOPHiA DDM™ and start generating revenue over the following twelve months. That's up from 22 new customers signed in the same quarter of the prior year.

The quality of the sales is also improving; honestly, the average contract value for new signings in Q3 2025 increased by a massive 180% year-over-year. This suggests a successful shift toward larger, more valuable accounts.

The installed base is growing steadily, which is your recurring revenue base. As of September 30, 2025, the total count of core genomics customers reached 488, up from 462 at the end of Q3 2024.

Customer Growth Metrics (2025)

Metric	Q1 2025	Q2 2025	Q3 2025
New Core Genomics Customers Signed	28	35	31
Total Core Genomics Customers (End of Period)	490	490	488
Analyses Performed (Volume)	93,000	95,000	99,000

Curating and standardizing complex multimodal healthcare data (genomics, radiomics)

This activity is about making the data usable. SOPHiA GENETICS SA's platform is designed to analyze complex genomic and multimodal data. The sheer volume of data being standardized is the key metric here.

The platform's ability to handle multimodal data is a differentiator. For example, they launched AI-Powered Digital Twins to enhance decision-making in oncology, which relies on integrating different data types.

The data curation effort is directly tied to the analysis volume. The fact that they doubled the cumulative profiles analyzed from one million (in 2022) to over two million by March 2025 shows the scale of data flowing through and being standardized by the system.

Regulatory compliance and certifications for diagnostic use (e.g., IVDR-certified)

For a company operating in diagnostics, regulatory clearance isn't optional; it's a core activity that unlocks market access. SOPHiA GENETICS SA has prioritized compliance with the European Union's revised In Vitro Diagnostics Regulation (IVDR).

The platform has secured the CE mark under the EU's IVDR, which is a significant achievement validating its genetic analysis capabilities for use in the European Economic Area. This allows customers to use the SOPHiA DDM™ Platform to support patient diagnostics.

To further ease the burden for labs, SOPHiA GENETICS SA is actively collaborating with partners like Platomics to streamline compliance for EU clinical laboratories, providing digital solutions for documenting NGS workflows to meet the rigorous IVDR requirements, especially for high-risk classes.

• SOPHiA DDM™ Platform is CE marked under the EU's IVDR.
• The platform offers a specific "Dx Mode" to satisfy IVDR requirements.
• Collaboration with Platomics aims to provide instant access to essential product data for technical documentation needed for IVDR compliance.

Finance: review the Q3 2025 operating expenses against the full-year guidance of an adjusted EBITDA loss between $35 million and $39 million by end of next week.

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Key Resources

You're looking at the core assets SOPHiA GENETICS SA relies on to run its data-driven medicine business. These aren't just line items; they are the engine of their value proposition.

SOPHiA DDM™ Platform, a cloud-native Software-as-a-Service (SaaS) technology

The platform's scale is growing steadily, showing increasing adoption across its customer base. The cloud-native design is key to its scalability, which management points to as a driver for margin improvement.

Key platform usage metrics as of late 2025:

• Analysis volume in Q3 2025 reached a record 99,000 analyses.
• Q3 2025 analysis volume showed 9% year-over-year growth.
• Q2 2025 analysis volume was 95,000, up 9% year-over-year.
• Q1 2025 analysis volume was 93,000, up 11% year-over-year.
• Adjusted gross margin reached 73.1% in Q3 2025.
• Adjusted gross margin reached 74.4% in Q2 2025.
• The platform update cadence is approximately once every three weeks.

Proprietary AI and machine learning algorithms for data analysis

The value of the algorithms is directly tied to the real-world data they process. The company highlights that its AI is shaped by this unmatched dataset, ensuring insights are rooted in clinical reality.

The platform integrates hundreds of millions of data points across multiple health dimensions.

Large, diverse dataset of 2 million+ cumulative genomic profiles

This dataset is a massive competitive moat, doubling in size in under three years. The growth rate shows significant momentum in data aggregation.

Metric	Value as of Early 2025	Value as of Late 2025 (Q3)
Cumulative Genomic Profiles Analyzed	Over 2 million (March 2025)	Implied higher than 2 million
Profiles Analyzed (FY 2024 End)	Approximately 1,900,000 (as of March 4, 2025 report)	N/A
Monthly New Profile Growth (Early 2025)	Approximately 30,000 new profiles per month	N/A

Intellectual property protecting the analytical and multimodal data processes

While specific patent counts aren't always public, the commercial success of specialized applications demonstrates the value of this IP. For instance, the MSK-ACCESS® application, powered by SOPHiA DDM™, is a key IP-driven offering.

Adoption of key applications as of late 2025:

• MSK-ACCESS® powered with SOPHiA DDM™ attracted 34 customers since its Q2 2024 launch.
• 15 MSK-ACCESS® customers completed implementation to ramp up usage in 2025.
• MSK-IMPACT® powered with SOPHiA DDM™ signed 7 customers since its October 2024 launch.

Highly specialized data scientists and clinical informatics teams

The operational scale is supported by a growing customer base, indicating the teams are managing increased complexity. The company signed a record number of new customers in 2024 to onboard in 2025.

Customer base statistics as of September 30, 2025:

• Core genomics customers reached 488.
• This is up from 462 customers at the end of Q3 2024.
• 31 new customers were signed in Q3 2025.
• The average contract value of new signings increased by 180% year-over-year in Q3 2025.

Finance: draft 13-week cash view by Friday.

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Value Propositions

Democratizing access to world-class precision medicine globally.

• Healthcare institutions regularly contributing data and expertise: 800.
• Countries with regular contributors: 70+ or 72.
• Core genomics customers as of September 30, 2025: 488.
• Core genomics customers as of March 31, 2025: 490.

Providing accurate, actionable insights from complex multimodal data.

Metric	Q1 2025	Q3 2025
Analyses Performed on SOPHiA DDM™	93,000	99,000
Cumulative Genomic Profiles Analyzed (Since Inception)	Over 2 million	N/A
Analysis Volume YoY Growth	11%	9%

Enabling decentralized, in-house data analysis for hospitals and labs.

• New core genomics customers signed in Q1 2025: 28.
• New customers signed in Q3 2025: 31.
• MSK-ACCESS® powered with SOPHiA DDM™ signed-to-adopt customers: 60.

Accelerating drug development and real-world evidence generation for biopharma.

Biopharma Partnership/Contract Metric	Value/Count
New customers signed in Q3 2025 for revenue generation in next 12 months	31
Average contract value of new signings (Q3 2025 YoY increase)	180%
Major partnership expansion with AstraZeneca announced	Q2 2025
Major new partnerships signed with AstraZeneca in Q3 2025	2

Cost-efficient and scalable analysis of NGS and other diagnostic data.

Margin/Efficiency Metric	Q1 2025	Q3 2025
Adjusted Gross Margin	75.7%	73.1%
Reported Gross Margin	N/A	66.3%
Estimated Average Price Per Analysis (2024 Range)	$100 - $500	N/A

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Customer Relationships

You're looking at how SOPHiA GENETICS SA keeps its customers engaged and growing the platform usage, which is key since their business runs on recurring platform access.

Dedicated sales and technical professional services are clearly focused on getting new customers live on the SOPHiA DDM^TM platform quickly. The company signed an impressive cohort of 31 new core genomics customers in Q3 2025, up from 22 new customers signed in Q3 2024. For context, they completed implementation for 33 new core genomics customers during Q1 2025, which was up from an average of 23 customers implemented per quarter in 2024. This suggests a dedicated service function is necessary to handle that onboarding volume.

High-touch, consultative relationships are evident in their work with biopharma. SOPHiA GENETICS SA refreshed its momentum with BioPharma customers in Q3 2025. A major proof point in this area was the largest contract in company history, a multi-year AI breast cancer partnership expansion signed with AstraZeneca in Q2 2025. This partnership involves developing a bespoke AI-powered predictive model and generating real-world evidence in Europe and North America.

Building a global community/network of users is central to their value proposition, as the network effect drives insight generation. As of September 30, 2025, SOPHiA GENETICS SA reached 488 core genomics customers, an increase from 462 customers at the end of Q3 2024. Overall, the Ai platform SOPHiA DDM^TM is regularly used by 800+ healthcare institutions across more than 70+ countries. The platform analyzed over 350,000+ patients in the year leading up to the Q3 2025 report, contributing to over 2 million+ cumulative genomic profiles analyzed since inception.

The subscription-based model is what drives the long-term engagement, reflected in the financial performance. The company expects full-year 2025 revenue to be in the range of $75 to $77 million, representing year-over-year growth of 15% to 18%. This recurring revenue base is supported by increasing customer value, as the average contract value for new signings in Q3 2025 increased by 180% year-over-year.

Here's a look at customer base growth metrics:

Metric	Value as of Late 2025	Comparison Point
Core Genomics Customers (Q3 End)	488	Up from 462 at Q3 2024 end
New Customers Signed (Q3 2025)	31	Up from 22 signed in Q3 2024
New Customers Signed (Q1 2025)	28	Up from 20 signed in Q1 2024
Average Contract Value Growth (Q3 2025 New Signings)	180% increase YoY	Indicates successful upselling/larger deals

The platform's usage also shows deepening relationships:

• Performed a record 99,000 analyses on SOPHiA DDM^TM in Q3 2025.
• Analysis volume growth in APAC was 35% year-over-year in Q3 2025.
• Analysis volume growth in NORAM was 26% year-over-year in Q3 2025.
• U.S. revenue growth from core genomics customers was over 30% in Q1 2025.

The relationship model is clearly geared toward platform adoption and scale, which is what drives the expected 2025 revenue guidance of $75 million to $77 million. Finance: finalize the Q4 2025 customer retention rate analysis by next Tuesday.

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Channels

You're looking at how SOPHiA GENETICS SA gets its SOPHiA DDM™ Platform and services into the hands of hospitals and labs globally. It's a mix of direct selling, cloud delivery, and strategic alliances.

Direct sales force targeting hospitals and clinical laboratories globally

SOPHiA GENETICS SA continues to invest opportunistically in its direct sales force, especially to scale in under-penetrated geographies like North America. The direct channel is clearly driving core customer acquisition.

As of September 30, 2025, the company reached a total of 488 core genomics customers. That's up from 462 customers at the end of Q3 2024. You can see the momentum in new signings; they landed 31 new customers in Q3 2025 alone, which is a jump from the 22 signed in Q3 2024. The average contract value for those Q3 2025 new signings was up 180% year-over-year.

The company had a physical presence in three countries outside its Switzerland headquarters: France, the United States, and Brazil. The U.S. market is a key focus, delivering 30% year-over-year revenue growth from core genomics customers in Q3 2025.

Strategic industry collaborators and distributors in various regions

Beyond the direct team, SOPHiA GENETICS SA uses collaborators and distributors in selected geographies outside North America. They also form collaborations with reference and specialty labs.

The integrated access model relies on these clinical network collaborators to process and sequence samples. For instance, they have significantly expanded a long-standing partnership with Dasa in Q2 2025. The company's global reach is evident, as 800+ healthcare institutions across 72 countries regularly contribute data to the platform as of March 2025.

Cloud-native SOPHiA DDM™ Platform for direct software delivery

The SOPHiA DDM™ Platform is the core delivery mechanism, a cloud-native SaaS offering. This allows for direct software delivery and analysis processing at scale. The platform's scalability helps maintain high margins; the adjusted gross margin for Q3 2025 was 73.1%.

The volume of work processed shows the platform's utilization. In Q3 2025, they performed a record 99,000 analyses on SOPHiA DDM™, representing 9% year-over-year volume growth. Since inception, the platform has analyzed over 2 million+ cumulative genomic profiles, as of March 2025.

Here's a quick look at the platform's adoption metrics as of late 2025:

Metric	Value (As of Late 2025)	Reference Period
Total Core Genomics Customers	488	September 30, 2025
New Customers Signed	31	Q3 2025
Analyses Performed	99,000	Q3 2025
Cumulative Profiles Analyzed	2 million+	March 2025

Co-marketing and co-selling with sequencing and assay partners

Co-selling is evident through major application rollouts and strategic BioPharma partnerships. The MSK-ACCESS® Liquid Biopsy application, co-developed with Memorial Sloan Kettering, has attracted 34 new customers since its launch in Q2 2024 (as of March 2025).

The BioPharma segment involves significant co-marketing and co-selling efforts, like the major, multi-year partnership signed with AstraZeneca. Revenue recognition from this specific deal is expected to primarily begin in Q4 2025, with milestones continuing into 2026 and beyond. This partnership leverages SOPHiA GENETICS SA's AI factories to optimize outcomes for breast cancer patients.

The platform's success also relies on customer expansion, which is a form of internal co-selling:

• 58% of customers used two or more applications as of the end of 2024.
• 36% of customers used three or more applications as of the end of 2024.
• 21% of customers used four or more applications as of the end of 2024.

Finance: review Q4 2025 pipeline conversion rates by channel by end of January 2026.

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Customer Segments

You're looking at the core groups SOPHiA GENETICS SA serves with its SOPHiA DDM™ platform as of late 2025. The customer base is clearly segmented, moving beyond just pure clinical adoption into high-value partnerships.

Clinical Laboratories and Hospitals

This group represents the bread and butter of the business, the ones using the platform for routine diagnostic testing across cancer and rare diseases. You need to track this number closely because it drives the recurring SaaS revenue base.

As of September 30, 2025, SOPHiA GENETICS SA reached 488 core genomics customers. This is a solid increase from the 462 customers reported at the end of Q3 2024. The company signed an impressive cohort of 31 new customers in Q3 2025 alone, showing strong new business momentum. To be fair, this was down slightly from the 490 customers reported at the end of Q2 2025.

The average contract value for these new signings in Q3 2025 increased by 180% year-over-year, which tells you they are landing larger, more valuable accounts.

Biopharmaceutical Companies for Clinical Trials and Drug Discovery/Development

This segment is about high-impact, strategic partnerships, often involving the use of SOPHiA GENETICS SA's proprietary AI factories to analyze multimodal healthcare data. These deals, while fewer in number, carry significant revenue potential, like the one signed with AstraZeneca.

The platform is used by BioPharma partners specifically for AI-powered drug discovery, development, and deployment. A major catalyst was the signing of the largest contract in company history with AstraZeneca, focused on developing a bespoke AI-powered predictive model for breast cancer treatment outcomes. Management noted refreshed momentum with BioPharma customers in Q3 2025.

Academic and Research Institutions Utilizing the Platform for Studies

These institutions are key for validating new applications and driving platform adoption through research output. They often serve as early adopters for advanced features.

New customer wins in Q3 2025 included major academic centers like the Nice University Hospital in France and the American University of Beirut. In Q2 2025, the company highlighted expansions in partnerships with UC Irvine and the University of Alabama, Birmingham. These institutions are adopting various applications, including MSK-ACCESS® and MSK-IMPACT® Flex powered by SOPHiA DDM™.

Diagnostic Modality Providers (e.g., Sequencing Companies)

This group includes collaborators that either provide the raw data or integrate SOPHiA GENETICS SA's analytics into their own workflows, expanding market reach through channel partners.

SOPHiA GENETICS SA continues to sign deals with entities like Thermo Fisher Lights Labs, who adopted solid tumor liquid biopsy and rare disorders applications in Q3 2025. Furthermore, the company is actively collaborating with other technology leaders, such as Complete Genomics and Element Biosciences, to expand access to precision oncology testing and sequencing analytics.

Here's a quick look at the customer landscape snapshot:

Customer Segment	Key Metric/Example (Late 2025)	Latest Count/Data Point
Clinical Laboratories and Hospitals	Core Genomics Customers	488 as of September 30, 2025
Biopharmaceutical Companies	Major Strategic Partnership	Contract signed with AstraZeneca
Academic and Research Institutions	New Q3 2025 Customer Example	Nice University Hospital, American University of Beirut
Diagnostic Modality Providers	New Q3 2025 Customer Example	Thermo Fisher Lights Labs

Overall, you see a clear push to onboard more clinical customers while simultaneously securing larger, more complex deals with BioPharma and research entities. If onboarding those 31 new Q3 customers takes longer than expected, revenue recognition gets pushed, so watch that implementation pipeline closely.

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Cost Structure

You're looking at the cost side of the SOPHiA GENETICS SA equation, which is heavily weighted toward technology development and market penetration as of late 2025. The structure reflects a high fixed-cost base necessary to run a global, AI-driven SaaS platform.

High fixed costs are evident in the full-year 2025 outlook. SOPHiA GENETICS SA projects an Adjusted EBITDA loss for the full year 2025 to be in the range of $39 million to $41 million. This is an increase from the initial guidance range of $35 million to $39 million mentioned earlier in the year. For context, the Adjusted EBITDA loss for fiscal year 2024 was $40.2 million.

The investment in Research and Development (R&D) for AI/algorithm refinement is a core component of the operating expenses. For the third quarter ended September 30, 2025, the reported Operating loss was $17.9 million, up from $15.4 million in the prior year period. The company notes that R&D-related costs, specifically the amortization of capitalized research and development expenses, are excluded when calculating Adjusted Gross Profit and Adjusted Operating Loss, indicating significant upfront investment in the platform.

Cloud computing and data infrastructure costs are managed through continuous optimization efforts related to the SOPHiA DDM platform. The company achieved an adjusted gross margin of 73.1% in Q3 2025, which they attribute to optimizing compute costs and leveraging platform scale. This margin was maintained despite platform analysis volume growing over 40% year-over-year in Q3 2025. The accounting treatment for these costs involves expensing software as a service costs as incurred, while capitalizing certain configuration and customization costs paid by a customer in a cloud computing arrangement.

Sales, General, and Administrative (SG&A) expenses, alongside R&D, drive the overall loss. The Q3 2025 financial update specifically mentions ongoing investment in 'selling and marketing efforts' as a factor contributing to the significant loss for the period. The company is focused on global expansion, evidenced by signing 31 new customers in Q3 2025 across geographies, up from 22 in Q3 2024.

Here's a look at the key financial metrics that define the cost profile as of the latest reporting period:

• Q3 2025 Revenue: $19.5 million.
• Q3 2025 Adjusted EBITDA Loss: $10.2 million.
• Q3 2025 Adjusted EBITDA Loss (Excluding Swiss social charges): $8.8 million.
• FY 2025 Revenue Guidance Range: $75 million to $77 million.
• Core Genomics Customers as of September 30, 2025: 488.

The following table summarizes key figures related to the cost structure and profitability metrics:

Metric	Q3 2025 Value (USD thousands)	FY 2025 Guidance (USD millions)	FY 2024 Actual (USD millions)
Revenue	$19,500	$75 to $77	$65.2 (2024 Revenue)
Adjusted Gross Margin	73.1%	Slight expansion expected from 2024's 72.8%	72.8% (2024 Adjusted)
Adjusted EBITDA Loss	($10,200)	($39) to ($41)	($40.2)
Operating Loss	($17,900)	Not provided	Not provided

The focus on operational leverage suggests that a significant portion of incremental revenue should flow through to EBITDA, with an expectation that approximately 60% of each incremental revenue dollar flows through to EBITDA. Platform scalability is key to managing the variable component of the cost structure.

Key cost drivers impacting the P&L include:

• Share-based compensation expense, which was $3,835 thousand in Q1 2025.
• The impact of elevated Swiss social charges on equity-based compensation in Q3 2025 was an expense of $1.3 million compared to a benefit of $0.7 million in Q3 2024.
• Amortization of capitalized R&D costs, which is a non-cash charge excluded from adjusted measures.

Finance: draft 13-week cash view by Friday.

SOPHiA GENETICS SA (SOPH) - Canvas Business Model: Revenue Streams

You're looking at how SOPHiA GENETICS SA brings in money as of late 2025. It's a mix of usage, access, and specialized service revenue, all centered around the SOPHiA DDM™ platform.

The most direct revenue driver is the usage-based fees from clinical customers per analysis performed on SOPHiA DDM™. This is directly reflected in the volume of work the platform handles. For the third quarter ended September 30, 2025, SOPHiA GENETICS SA performed a record 99,000 analyses on SOPHiA DDM™, which was a 9% year-over-year volume growth. This volume metric is key to understanding the transactional component of their revenue.

The second major component involves subscription or licensing fees for platform access and applications. This is supported by the growing customer base paying for access to the SOPHiA DDM™ ecosystem. As of September 30, 2025, SOPHiA GENETICS SA reached 488 core genomics customers. Momentum in securing new platform users was strong in Q3 2025, with the company signing 31 new customers. Furthermore, the quality of new business is improving, as the average contract value for those new signings increased by 180% year-over-year.

The third stream comes from biopharma service revenue from AI-driven drug development and real-world evidence projects. While specific revenue figures for this segment aren't broken out in the latest reports, management noted they refreshed momentum with BioPharma customers in Q3 2025. This suggests this segment is an active, though perhaps smaller, contributor to the overall top line.

Here's a quick look at the financial outlook and recent performance that frames these revenue streams:

Metric	Value / Range	Period / Context
Full-Year 2025 Revenue Guidance	$75 million to $77 million	Projected for full year 2025
Projected Year-over-Year Growth (2025)	15% to 18%	Based on raised full-year guidance
Q3 2025 Revenue	$19.5 million	Reported for the quarter ended September 30, 2025
Q3 Year-over-Year Revenue Growth	23%	Q3 2025 result
U.S. Revenue Growth (Core Genomics)	30%	Year-over-year growth in the U.S. for Q3 2025

The platform's adoption shows geographic strength. For instance, SOPHiA GENETICS SA delivered 30% year-over-year revenue growth specifically in the U.S. market during Q3 2025. This indicates that the usage and licensing models are gaining significant traction in a key market.

The revenue streams are supported by platform utilization metrics:

• Performed 99,000 analyses on SOPHiA DDM™ in Q3 2025.
• Analysis volume growth was 9% year-over-year in Q3 2025.
• Core genomics customers reached 488 as of September 30, 2025.
• New customers signed in Q3 2025: 31.

The company is definitely seeing its revenue accelerate, moving from a prior guidance range of $72 million to $76 million up to the current $75 million to $77 million range. Finance: draft 13-week cash view by Friday.