Good morning. My name is Angeline, and I will be your conference operator today. At this time, I would like to welcome everyone to the SOPHiA GENETICS S.A. fourth quarter and full year 2025 earnings conference call. At this time, all participants are in listen-only mode. Following the presentation, there will be a question-and-answer session. Should you require any operator assistance, you may press star 0. I will now turn the conference call over to Kellen Sanger, SOPHiA GENETICS S.A. VP of Strategy. You may begin.

Thank you. Good morning, everyone. Welcome to the SOPHiA GENETICS S.A. fourth quarter and full year 2025 earnings conference call. Joining me today to discuss the results are Dr. Jurgi Camblong, our Co-founder and Chief Executive Officer, Ross Muken, our Company President, 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 meanings of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward-looking statements. Additional information regarding those risks, uncertainties and factors that could cause results to differ appears in the press release issued by SOPHiA GENETICS S.A. today and in the documents and reports filed by SOPHiA GENETICS S.A. from time to time with the Securities and Exchange Commission. During this call, we will 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 Jurgi.

Thanks, Kellen. Good morning, everyone. I will start today's call with a brief overview of how exiting 2025 SOPHiA GENETICS S.A. sits at the center of some of the most exciting megatrends in healthcare. I will then turn the call over to Ross, who will provide a detailed update on Q4 performance and what's ahead in 2026. George will close with a review of our financial results and guidance. 2025 was a defining year for SOPHiA GENETICS S.A. We re-accelerated revenue growth, signed several of the largest commercial deals in our company's history. We also continued building one of the most sophisticated AI engines in healthcare. In 2025, our platform broke many records. We analyzed over 391,000 patients with cancer or rare diseases using AI to deliver life-saving insights for diagnosis and treatment. We also reached a total of 993 customers globally. Congratulations to the SOPHiA GENETICS S.A. team on these accomplishments and the incredible impact our platform is having across the world. However, building disruptive AI in healthcare does not happen overnight. Healthcare, unlike other industries, requires rigorous validation, clinical evidence, and deep institutional trust before change is enacted. At SOPHiA GENETICS S.A., we have been pioneering AI in healthcare for over a decade. For 15 years, we have gone from institution to institution slowly and sometimes painfully, bringing their genomic workflows onto a single technology platform. As we've added customers over the years, our network and the collective intelligence behind it has been getting stronger and stronger. Top clinicians across the globe depend on SOPHiA DDM each day to generate insights for their patients. In doing so, they contribute a constant stream of data and knowledge to the platform. The data stream in our platform every day makes up one of the most unique and powerful data assets…

Thank you, Jurgi. I'm grateful for your continued involvement as Executive Chairman and excited for the future. Over the past five years, I've come to recognize how unique SOPHiA GENETICS S.A. is and how there is truly no other company like it. From our technology to our customers to our employees, SOPHiA GENETICS S.A. is a category-defining company that is reshaping precision medicine, and I couldn't be more excited to lead this next chapter. Today, I'll begin with an update on our fourth quarter performance as we close 2025 with sustained commercial strength across the business. I'll cover our 2026 growth drivers before handing it over to George Cardoza for a detailed look at the financials. First, we delivered 22% revenue growth in the fourth quarter, re-accelerating the business toward historical levels. Excluding biopharma, clinical revenue grew an impressive 31% year-over-year, reinforcing the strength of our core business. I'm looking forward to this continuing throughout 2026 and for biopharma to pick up after the major recent signings which we saw over the second half of the year. From a regional perspective, EMEA grew 22% in the fourth quarter. Excluding biopharma, EMEA clinical revenue was up a robust 35% year-over-year. Belgium and Germany contributed significantly as the countries grew 93% and 66% respectively, as major recent wins such as GESA came online. North America analysis volumes were exceptional in the fourth quarter, growing 45% year-over-year. On a reported basis, you may notice that revenue growth is lower as we booked a one-time large vendor payment in the fourth quarter of 2024, which created a challenging prior year comp. Excluding this, underlying regional growth remains strong. Asia Pacific also continued to outperform in the fourth quarter, with 44% revenue growth in the period, driven primarily by India and Australia. We also saw…

Thanks, Ross, good morning, everyone. As Jurgi and Ross highlighted, 2025 was an exciting year of growth for SOPHiA GENETICS S.A. Before I discuss our outlook for 2026, I will start by providing a brief overview of our fourth quarter financial results. Total revenue for the fourth quarter was $21.7 million, compared to $17.7 million in the fourth quarter of 2024, representing year-over-year growth of 22%. Platform analysis volume was over 105,000 in Q4, compared to 91,000 in the fourth quarter of 2024, representing growth of 16%. Gross profit was $14.7 million in Q4, compared to $12.1 million in the prior year period, representing year-over-year growth of 21%. Gross margin was 67.7%, compared with 68.2% for the fourth quarter of 2024. Adjusted gross profit was $16 million in Q4, an increase of 22% compared to adjusted gross profit of $13.2 million in the prior year period. Adjusted gross margin was 73.9%, decreasing slightly by 30 basis points year-over-year. Total operating expenses for Q4 were $33.2 million, compared to $29.5 million in the prior year period. It is worth pointing out that our Q4 results were adversely impacted by certain items which temporarily impacted results but do not reflect the company's underlying operating performance. For example, adverse foreign exchange movements continued to negatively impact reported OpEx, primarily due to the strengthening of the Swiss franc. The Swiss franc has appreciated by 14% since the start of 2025, which means that our payroll and rent expenses in Switzerland are translating 14% higher when viewed in US dollars. Guardant Health filed patent infringement claims in the United Kingdom and at the Unified Patent Court in Paris during Q3, alleging that our MSK-ACCESS application infringes their patents. This litigation resulted in legal expenses of approximately $1.8 million, which is reflected as an adjustment for…

Thank you, George. I am confident as ever in our long-term trajectory. I am excited for the year ahead as the momentum in our business continues to build. As we enter 2026 and approach the 15th-year anniversary of our founding, SOPHiA GENETICS S.A. is entering its next phase of scale, one that positions us to reach important milestones in the years ahead. Our forward-looking indicators remain strong across the business. We continue to see a steady stream of new customer signings, expanding biopharma interest, rising average contract size, and a healthy expansion in pipeline across regions and applications. At the same time, we continue to be laser-focused on optimizing costs and delivering sustainable growth. Thank you to the SOPHiA GENETICS S.A. team, customers, partners, and investors for your continued trust and partnership. 15 years ago, we had an ambitious vision to transform healthcare through data and AI. Today, we operate the most widely used AI-driven platform in precision medicine, impacting 391,000 patients in 2025 and over 2.3 million patients since inception. I'm so proud of what we've accomplished over the past 15 years, and I know we are just getting started. Please note we are presenting at the TD Cowen Health Care Conference tomorrow in Boston. We all look forward to continuing to update you on SOPHiA GENETICS S.A.'s future success. Operator, you may now open the line for questions.

Thank you. In a moment, we will open the call to questions. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing any keys. Please be advised that the questions are limited to two questions, and then you can rejoin the queue. Thank you. One moment, please, while we poll for questions. The first questions come from Subhalaxmi T. Nambi with Guggenheim. Please go ahead.

Hey, guys. Thank you for taking my question. Good morning. Your guidance is for 21% growth at the midpoint. Can you walk us through what contributions you're expecting from key growth drivers such as MSK-ACCESS IMPACT and from rare disease?

Hi, Subbu. Good morning. Yeah, absolutely. We will drag you through that. First, to recap, we ended up the year very strong with a 31% revenue growth year-over-year on Q4, with as well signings for the ACV as being very, very strong. 120% better in 2025 versus 2024 full year. This is now well positioning us for basically a 2026 performance. I know, Ross or George, if you want to comment on the guide.

Maybe just specifically, you know, to the point you made, the ramping of MSK-ACCESS continues to be a really nice driver for us. Sequentially, we had some sizable customers start to come online in the fourth quarter, and you'll see that ramp continue in Q1 and beyond. We've only seen roughly half of the total cohort start to contribute. Even those that come online, the volumes are relatively modest as it does take time to ramp and liquid. I would say that is certainly a really nice area of expansion for us. You know, you mentioned impacts of CGP. We've had some really material wins, both in ex U.S. as well, as in our native markets. I feel quite confident, we're gaining share, in that vertical. I think in general, you're seeing a shift again to kind of larger and larger panels. In solid tumor, we're well-positioned for that, particularly with our flex product, which I think has some really unique characteristics. Outside of that, I would say overall, as to Jurgi's point, the entire platform has had really nice growth across almost all of the application sets, right? It's really been quite balanced. Those, you know, points you made are obviously some of the true highlights. You know, even on the rare and inherited side, we're seeing really great uptake in our Enhanced Exomes product. And that, you know, was one of the key drivers behind the 2 big U.S. wins we called out several weeks ago. I would say in general, it's really balanced. We've got quite a number of drivers, and I would say we're really levered to a number of the key, I would say, mega trends you're seeing across oncology, diagnostics and NGS that you see with many of the other, you know, key players that you cover. Certainly a balanced and exciting period for us on the growth side.

Thank you both. I feel like you probably answered my second question and smidge. The net dollar retention was up meaningfully to 115%. Can you speak to a bit to what drove the cross-selling strength here, and if you expect this to continue in 2026? Thank you so much.

We're super pleased, Subbu, with the re-acceleration in NDR. You know, this is really a metric quite critical to us and to any other software company where you're obviously looking at same-store organic growth. First part that we're incredibly proud of, the churn is now actually under 1%. I mean, this is like 99 percentile performance for software. It just really shows how sticky the platform has become and really how hard it would be to sort of move to other opportunities just because again, the uniqueness of what we're able to do from a compute and scalability and cost perspective and efficiency perspective is really unmatched. I'd say above and beyond that, you know, and you've seen this in general, there is a re-acceleration of volumes within sort of NGS, oncology, and rare disease. We're benefiting from that. I would say as well, we've done a much better job on the expand, right? Which is really where this is also a key metric to make sure that, you know, we're enabling our customers to scale not just with the data computes or higher ASPs, but also with bigger volumes and then moving to more applications, right? I would say overall you'll see that continue into 2026 and beyond, particularly given the great number of new logos or new accounts we've brought online, you know, north of 200 over the last 2 years. There's just huge expansion potential, which you'll see come through on the NDR.

Thank you so much for that, George.

Thanks, Subbu.

Thank you. The next question comes from William Bonello with Craig-Hallum. Please go ahead.

Hey, thanks for taking my question. A couple here. On the pharma side, obviously, exciting to see the number of contracts that you're signing. I'm just wondering, you know, when you sort of add them all up, beginning with the stuff that you, the expansion that you did with AZ and then the new contracts that you've added, can you give us any kind of sense of the potential annual contribution from those contracts and then maybe sort of the time period over which we would see that revenue begin to roll in?

Thank you, Bill. I would say, you know, obviously considering, you know, we had obviously challenging performance in the pharma business going back to 2024. We're really pleased to see improved momentum in terms of new contracts and new logos coming online. You know, coming off of J.P. Morgan, you know, I spent quite a bit of time with very senior members of many of the top 20 pharma, and I would say finally our story is really resonating. I think there's really, I would say, you know, specific areas of repeatable business where we can scale. I think on the product market fit and on the, you know, sort of ability to have a much more material contribution to our overall revenue and growth, we're moving in the right direction. That being said, you know, pharma business, as you know, does take time, right, to sort of come online and ramp and also decide. You know, it is long cycle business. We are trending in the right direction. I do think, you know, obviously the contribution into 2026 will be a net positive for biopharma, which is important. Certainly, you know, we're not in a position yet where we're looking for a hockey stick, right? Obviously we're, you know, we're doing all of the right, I would say, strategic steps to lay the groundwork for a pretty nice re-acceleration in later 2026, 2027 and beyond. We're not yet kind of at a point where I would say the critical mass is enough to where I can declare this will be X% of revenue. Aspirationally, you know, we think pharma could be a much higher percentage of total revenue, certainly much greater than where it is today. I wouldn't say we're at a point yet where we can exactly point to that. Certainly as we see more and more evidence of kind of that momentum continuing and building, we'll be happy to share more specific figures to allow you guys to model better that business, which I know has been a bit challenged over the last two years.

Sure. Thanks. Just on the 2 large health systems that you added, thanks for talking about what indication it is that they're using. You know, how do you sort of assess the potential for those, you know, based on your discussions with those health systems, the potential that those customers may want to eventually, expand into additional, indications and sort of what the, you know, what the key components would be to influence their decision one way or another?

Sure. It's a great question, Bill, and I appreciate you pointing this out because obviously we're incredibly excited to be able to serve two of the four largest health systems in the United States. You know, this is starting with just one application, right? If you look at the growth we had in the period, particularly in volume in the US, nearly 50%, this isn't even, you know, sort of, I would say, contemplating any of that volume starting to contribute. Again, we're really excited about just the size and magnitude that this can bring just again with one application. Give you a sense, we actually have already an expand opportunity in the pipeline from one of these two parties, and it's also fairly significant. I'm super, I would say, optimistic that we'll be able to, you know, grow these accounts materially over time where we're looking and we'll share in the investor deck, and some of the cohort analysis over time. I think what you'll see is our ability to really over multiple periods to grow that initial land by multiples, right? So 2x, 3x, 4x, 5x through the volume uptick, through the increased ASP and through application expand. I mean, these are both accounts that, you know, if we were to fully penetrate them, could be certainly, you know, in the 8-figure range. These are very, very sizable initial, I would say, starts for us, and we're really optimistic we'll be able to convert them on the platform as that remains, I would say, a really attractive opportunity. If you think coming off of last week at AGBT, particularly with all of the new platforms coming online on the sequencing side and the complexity of the chemistry and all of the new applications, MRD, transcriptomics, et cetera. The ability to do all of that in one platform at massive scalability at a cost that makes sense with sort of the labor savings these institutes can see, given where reimbursement's been attractive, this is a very favorable medium to near-term trend for us, and we would expect this to accelerate to others.

Thanks very much.

Thank you. The next question comes from Daniel Brennan with TD Cowen. Please go ahead.

Great. Thanks, thanks for the questions. Congrats, Jurgi and Ross. Maybe first one just on volume price mix for the 2026 guide. Volumes, I think, grew, what, 16% in Q4, up low double digits in 2025. What does the guide contemplate for volumes and price mix in 2026? Given the push with MSK and liquid biopsy, should we expect price mix growth to accelerate as we go forward from here?

We've recommended that people do continue to assume that our ASPs are going to increase. We're concentrating on selling higher priced tests like MSK-ACCESS, MSK-IMPACT and the MSK-IMPACT Flex product that we have. We do expect lift from those. You know, these ASPs are much higher, in some cases 2x, what our average ASP is. You should model some increases. Realize too, though, we're also going to be putting on volumes in areas like Latin America, India, Turkey, that do have a little bit of lower ASP, that sort of tempers it out a bit. Generally speaking, I think you saw the 16% in the fourth quarter. I think we feel good about that in terms of the volume growth. Figure the rest of that revenue growth is going to be coming from the ASP lift.

Okay. Maybe second one for Ross. As new CEO of the company, can you just speak to a little bit about your approach philosophy? I assume given the trajectory of the business, it's probably going to continue on what you've been doing. If we look out a year or 2 and then we're looking back at what's transpired, do you think we'll see any potentially meaningful changes? Kind of what type of how will your approach possibly be similar to Jurgi and/or maybe different? Thank you.

Thanks, Dan. You know, I've still got a few months before I take over, I'm super excited, also, I would say to have Jurgi remain involved in an executive chairman function. I think the two of us will make a very good partnership going forward, being able to really help scale this business. Look, I would say in general, I'm fortunate in that the transition's happening in a period of great strength for the business, right? We have a ton of momentum at the moment. I think the real focus is, all right, you know, obviously we're very focused on getting to the $100 million barrier of revenue, you know, whether that's on an ARR or full year basis. You know, how do we scale materially from there, right? A lot of the effort, a lot of the focus of myself is preparing the organization for that next level of substantial growth and expansion. I would say we have a lot of the pieces in place, but certainly, you know, as you get bigger, you need to put systems and people and technology in place to allow that to continue in a way where the return on that capital is quite appealing, and we create shareholder value. I would say that is a good part of it. You know, the other side I would say is we're still not fully tapping the full value of the platform and the network and the ability to have, again, nearly, Dan, 1,000 institutions connected around the world, right? What we're starting to see as we get to the scale is, you know, one, labs of all sizes really see us as someone, they will need to continue to compete in the future, but not just in sort of the traditional business in precision…

Great, Ross. Thank you.

Thanks, Dan.

Thank you. The next question comes from Mark Massaro with BTIG. Please go ahead.

Hey, guys. Thank you for taking the questions and congrats on all the momentum. One of the key levers to your business, I think, over the years has been your ability to turn on customers. Can you just give us a sense for where you are now with your go live implementation timelines? Can you speak to maybe the infrastructure or boots on the ground that you have, perhaps any metrics you could share about, you know, taking all these customers you've signed on to to make them go live in 2026?

Yes. Good morning, Mark. Absolutely right. Turning customers in routine has always been part of our business model. As you know, we're being paid on usage. First we land customers, we sign them, then we implement the platform on the customer side, and then we start seeing revenue coming up, right? As you understand, most of the bookings we've been doing in 2025 are going to contribute in our revenue story from mid to end of 2026. The KPI you're highlighting in terms of implementation is obviously something we scrutinize a lot, and it's very important. Ross will share with you where we stand on the momentum and remind you maybe what were some of the actions we had taken last year as well to speed it up the implementation.

Yeah. Mark, if you look, we're able to complete north of 100 implementations this year, and that was up pretty materially year-over-year. If you look at the sequential cadence of what we did in the second half, it was materially above the first half, right? The actions we took starting in kind of the first part of this year, particularly in the second quarter, really started to pay off. We'll see that momentum continue into 2026. We're starting to see, essentially the amount of revenue released per month similar to the amount of bookings signed per month, which is more ideal, right? We had a period where more was coming into the funnel than was coming out just because we were sort of at this material acceleration period. It doesn't mean that growth isn't continuing to sequentially improve. It is, but we're getting much better at handling the volume, and optimizing a number of steps in that process and essentially managing the customer to a quicker time to revenue and routine. We're also getting better, I would say, at enabling customers to choose products, that are in, from a long-term perspective, you know, future-proofed and things that are more standard for us. You think about, again, MSK-IMPACT, MSK-ACCESS, Enhanced Exomes, et cetera. These are products or our comprehensive hematology product that we can bring online faster, that we're doing multiple of at the same time, and it's allowing again for that quicker speed to revenue. I won't declare victory. I think we still have plenty of places to get more efficient and improve, but I think the trend is favorable and that will help again in terms of that sequential revenue acceleration that we're obviously implying in the guidance over the balance of this year as well, similar to what we saw last year, in terms of the cadence.

Okay, that's really helpful. You know, you guys have been driving really strong growth in the U.S. market with analysis volume up 50% in Q4. You indicated you expect it to continue in 2026. You know, since U.S. is still a relatively small portion of your business, do you think you can build off of the 50%? Related to that, you guys do compete with some other send out labs in the U.S. market, some of which have really juiced up their commercial teams, some of which in 2025, others are doing it now this year. How do you think about the right size of your U.S. sales operation, and could that be an area where you look to expand?

Yeah, absolutely, Mark, right. Actually the U.S. clinical market should be our biggest market. As you remember, we started in Europe, developing the technology there and really penetrated the U.S., from 2022, post-COVID. Yes, to your point, the U.S. market should be significantly bigger with our model. Given that there is more and more data, more and more complexity on the data, we expect to make inroads into many, more new customers and grow those volumes. Ross?

You know, Mark, I'm really proud of our performance here, in the U.S. I think obviously it's taken some time, for our model to really scale and resonate. I think there's also a bunch of other favorable trends happening, in the space with reimbursement getting more asserted on many of these tests, as well as, you know, the sequencing equipment and consumables getting, more affordable, right? I think with a platform like ours, the ability to generate precision medicine data at scale close to the patient, has never been easier, right? We're seeing a lot of large institutions start to see the benefits of that and really move in that direction outside even just the traditional academics that have done so in the past. In that vein, Mark, again, just to remind you, we don't necessarily view ourselves competing, right, with the send outs because in general some of them actually use us as well, right? It's really our customers that are competing with each other. For example, those two large entities we talked about in the U.S., right? I guess you can say they are going to compete for exome volumes with others in the space, but we don't really see ourselves as necessarily that competitor, right? We're happy to also work with large laboratories doing exomes as well, right? For us, our belief is ultimately with our scale and cost advantage and with the size of our network and the size of just the compute we're doing based on the number of patients, you know, we'll at some point be the largest sort of precision medicine, you know, platform and laboratory in the world, right. Just 'cause we're serving an entire globe, not just regions of the U.S., et cetera. I think with that, it gives us a…

Sounds good. Thanks for the time, guys.

Thank you, Mark.

Thank you. We have reached the end of the question and answer session. Let me transfer the call over to Jurgi Camblong, Co-founder and CEO for closing remarks. Please go ahead, sir.

Thank you so much for joining us today. Thank you to all the Sofians for the great work in 2025 and Q4 2025. We're very much looking forward to your impact in 2026. To remind you, tomorrow we are attending the TD Cowen Healthcare Conference in Boston, and we will be happy to see you there and take your questions. Have a good day.

This concludes today's conference, and you may now disconnect your lines at this time. Thank you for your participation.