Sophia Genetics at RBC Conference: Strategic Growth and Profitability Focus

On Wednesday, 21 May 2025, Sophia Genetics (NASDAQ:SOPH) presented at the RBC Capital Markets Global Healthcare Conference 2025. The company outlined its strategic priorities, highlighting strong Q1 gross margins and an ambitious growth strategy while acknowledging past challenges in its pharma business. CFO George Cardoza and Head of Strategy Kellen Sanger emphasized a focus on US market expansion and a path to profitability.

Key Takeaways

• Q1 2025 gross margin reached nearly 76%, although partly due to one-off items.
• The company aims for 20% year-on-year growth by the end of 2025.
• A "land and expand" strategy is central to US market growth, with a 30% increase reported.
• Liquid biopsy, supported by Memorial Sloan Kettering collaboration, is a key growth area.
• Adjusted EBITDA profitability is expected by 2027.

Financial Results

Sophia Genetics reported a Q1 2025 gross margin of nearly 76%, bolstered by one-off items. The company aims to convert 60% of incremental revenue to EBITDA, a target it has surpassed in recent quarters. Revenue growth slowed from 2023 to 2024 but reaccelerated in Q1 2025. The company expects 20% year-on-year growth by the end of 2025, aiming to return to a historical CAGR of 23%.

Operational Updates

• Added 28 new customers in Q1 2025, moving 33 to routine usage.
• Average of 2.6 applications per customer, with 60% using two or more.
• US market growth at 30%, with larger accounts than other regions.
• Liquid biopsy testing, in collaboration with Memorial Sloan Kettering, is expanding, with 37 customers onboarded since launch.

Future Outlook

Sophia Genetics remains bullish on US market growth, viewing it as sustainable with potential for acceleration. The company anticipates its pharma business will become a growth driver in 2026 and 2027. Despite current challenges, adjusted EBITDA losses are expected to be minimal by the end of 2026, with profitability anticipated in 2027.

Q&A Highlights

• Confidence in sustaining high gross margins, despite one-off items.
• Customer acquisition focuses on expanding platform usage and transitioning new customers to routine use.
• Emphasis on decentralized testing and data ownership for US customers.
• Supported AMP to prevent FDA regulation, citing innovation as a key priority.

Readers are encouraged to refer to the full transcript for a more detailed analysis of Sophia Genetics’ strategic plans and financial performance.

Full transcript - RBC Capital Markets Global Healthcare Conference 2025:

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Twenty twenty five RBC Capital Markets Global Healthcare Conference. I’m Connor McNamara, the life science tools and diagnostics analyst at RBC. It’s my pleasure to introduce our our next company company, Sofia Genetics. On stage with me is CFO, George Cardoza and head of strategy, I believe IR. More strategy.

Okay. Kellen Sanger, welcome, and thank you for being here.

George Cardoza, CFO, Sofia Genetics: Thank you. Thanks.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Let’s just get started on rehashing q one results. You had incredibly strong gross margins, nearly 76%. How should we think about the gross margin progression through the rest of this year and just kind of longer term? Is that an anomaly, is 76% a good hurdle rate that we should look to?

George Cardoza, CFO, Sofia Genetics: We were quite pleased by the gross margin in the first quarter. We said on the earnings call, we had a couple of one off items. So while it may not be that high, certainly in the out quarters, we’re still very positive about our gross margin progression year over year. It continues to expand. And you think of the long term model of the business, basically, if we can drop almost three quarters of each incremental revenue dollar to gross margin, We’ve publicly said we believe we can drop 60% of that down to EBITDA, you have to allow for a little bit of sales commissions and G and A growth in there, but we’re confident we can drop over 60% down to the bottom line, and actually we’ve even beaten that in the last two quarters, so we feel quite about the the cost.

And, you know, the company, while we’re very focused on revenue growth, we we have not lost any of the cost discipline as well.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Great. I’d like to touch on that later, but let’s do talk about the revenue growth because you’ve had as you exited, you know, as you went from ’23 to ’24, you did see a kind of a slowdown in revenue, and and you attributed a lot of that to the timing of onboarding of new logos. Q one was very positive as a as a reacceleration in that revenue growth. So can you just talk to that, to us about the timing of that when you you win a logo? And then how long does it take them to really start generating revenue?

And then how should we think about that, you know, based on on new logo wins over the last twelve months?

Kellen Sanger, Head of Strategy, Sofia Genetics: Yeah. Sure. So we deploy a commercial strategy, of land and expand. So in many ways, 2024 was a year of land for us. We added 92 new customers over the course of the year, in comparison to 490 who are using platform today.

So that’s a pretty large step up. In q one, we added another 28 new customers. And so the focus for us is getting those customers into routine usage, have them ramp up, and generating revenue. It typically takes between six to nine months for them to complete the verification and validation of the test, after which the the goal for us in coming into 2025, a major growth driver for us is gonna be expanding across those accounts. So encouraging them to adopt new applications, and in doing so, that lead time is a little bit shorter.

So we’ve historically had a great ability to expand across accounts. Our average customer uses 2.6 applications. 60% of our customers use, two or more applications, 38%, three or more, 20%, four or more. So our goal now is to take those a hundred, and 20 odd new customers that we’ve we’ve, signed over the last kind of five odd quarters and then get them into routine usage as quickly as possible. In q one, it was an incredible proof point of that.

We’ve been directing more resources towards the implementation. We moved 33 new customers into routine usage. So of those a 20, which is up from an average about 20 of a of 20 customers per quarter in 2024. So some of the efforts and the reallocation of resources is paying off, and now it’s just trying to get those into routine usage and expand across those accounts.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Great. And just out of curiosity, is is the geographic where the customer is geographically, does that change their adoption curve? Because I know you’ve been growing a lot in The United States versus OUS. So does that Yeah. Are US customers adopting quicker or slower?

George Cardoza, CFO, Sofia Genetics: Yeah. Clearly, The US has been a growth market for us. You saw, you know, we had 30% growth in The United States, so we remain very bullish about our growth prospects. It’s funny because this company is headquartered in Switzerland, and and I always joke that they kind of did the hard part first, they did all the European countries where, you know, every country is a little bit different. Now coming over to The United States there’s a huge growth opportunity, and you know in terms of the validation it’s probably a little bit more test specific, so things like liquid biopsy may be a little bit longer to actually go fully into production as opposed to maybe what the specific pipeline like a solid tumor or heme would be a little bit quicker.

But The US customers continue to come on board, and and it’s a market we couldn’t be more excited about. And

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: is a good barometer just overall sequencing test volume increases that kind of how we how what you guys point to as, you know, still healthy end markets, and so you’re just getting, you know, as much of that growth as you can going forward?

George Cardoza, CFO, Sofia Genetics: That’s that’s the market. Yeah. So, certainly, sequencing continues to grow and, you know, Roche wants to come in, come into the pool. The water’s warm, and, you know, we can work with, you know, with any platform. But basically, yeah, more sequencing is sort of the market lift, if you would.

But I I think our growth has been historically far in excess of that, and I I think, you know, that that shows that that our solutions are, you know, being well received, and really we are continuing to take share.

Kellen Sanger, Head of Strategy, Sofia Genetics: Got it. Okay. More more sequencing and then also increase increasingly sophisticated sequencing as well. So the number of data points or the the volume of data coming off the machines is increasing as well, and this is something that Sofia is well positioned to take the whatever the newest innovation is, whether that’s HRD testing or liquid biopsy testing or or whatever the future might be, and then bring that onto the platform. So

George Cardoza, CFO, Sofia Genetics: Yeah. Because a lot of clients, you know, they might have done a small gene panel for fifteen, twenty genes. Now we continue to see them going to larger and larger panels, and now it’s gone to whole exome and and even whole genome. So yeah. So not only are you seeing that, but you’re just seeing the so, yeah, the raw count is more sequencing, but it’s even, you know, more and more sequencing in terms of the the coverage, though.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Got it. Alright. And just sorry. One more question on q one because we’re asking everyone. But with US policy, what is what is your impact from from any tariff changes that have been proposed?

George Cardoza, CFO, Sofia Genetics: Yeah. Push it. Knock on wood when I say this, but, you know, because it’s it’s influx. But at this point, we really service oncology patients. So I know some people were more impacted by the NIH cuts in terms of the research y side, we really service oncology or rare diseases, so that’s kind of a, we’re treating patients there.

So that side really wasn’t we had one client that was impacted by the NIH, and even that I think they’ve said they’ve gotten clarity now on what they can do going forward. We are in Switzerland, so we do ship some supplies in The United States, But we said on the call, I mean, that that’s it’s gonna be de minimis in terms of what the the tariff impact is on us, but that’s as of today. So, hopefully

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Knock up one again there. And let’s get back to The US. So, you know, if you look at growth, and this will be a lead into kind of long term, but, you know, you’ve been under indexed to The United States. And so is do you continue to see that as one of the primary drivers of growth? And then can you remind us again of last time you laid out long range targets and and when we might see the next iteration of long range targets?

George Cardoza, CFO, Sofia Genetics: Yeah. No. Clearly, again, we the the 30% growth in The United States, we think it’s it’s sustainable and certainly we even think that we can accelerate that even. So we’re very, very bullish on The U. S.

Market, continue to be. And Europe continues to grow, mean it’s going to grow a little bit slower than that, but we said by the end of this year, we expected our growth to be north of 20%, and certainly we believe in that. And honestly all of that’s really, this year we’ve modeled our pharma business basically to be flat, so people who follow us may know our pharma did have some challenges last year, and you know, we’re seeing some green shoots and we’re seeing some recoveries there. I know pharma budgets really did pull back a bit, but we’re optimistic that that could really be a good growth accelerator in ’26 and ’27. So

Kellen Sanger, Head of Strategy, Sofia Genetics: Yeah. And the only thing I would add is that the we’re thinking about US customers. The size of the accounts are notably larger, than what we see in other geographies. So the number of patients that we’re testing, but, obviously, there’s also some some favorable ASP, elements of of contracting in The US and then increasingly winning full volumes of of accounts, and servicing, US customer across their across their full patient needs, whether that’s, you know, signing them up for solid tumor and then expanding the hemoch and then Yeah. Also liquid biopsy.

There’s, like, this larger enterprise dynamic, to working with some of The US customers where they appreciate the value that we bring in terms of cost savings or turnaround time or allowing them to own the data of the patients that are being sequenced in their their hospital. Okay.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And in The US, when you win those, is it typically an account win where you get multiple hospital network? Is is that part of the reason why The US opportunities That’s you know, higher spend per customer?

Kellen Sanger, Head of Strategy, Sofia Genetics: Yeah. That’s part of it. And I think, I mean, liquid biopsies have been an incredible application to get our name in the door. We you know, for those of you of you who don’t know, we we started a collaboration with Memorialstone Peddering where, they were performing liquid biopsy testing and and the SKA axis test that you could get on the the Upper East Side Of Manhattan here. And for years, they were trying to to take that and enable other patients across the globe to be able to launch that testing.

And so with the the diversity of the network that we’ve been exposed to and the algorithms that we’ve built over the last ten years, we were the first company that was enabled or enabled Memorial Sloan Kettering and us and patients across the globe to to adopt and and and receive liquid biopsy testing. And so this is obviously a market that that Guardant has proved out in The US quite well. But as you look at other institutions across the globe who now might wanna adopt liquid biopsy testing, we’ve had incredible results. I know that we announced 37 customers have have signed up for liquid biopsy testing on Sofia since since the applications launched just last year. So these kind of marquee names and and partners in The US has been a major major catalyst as well as kind of cutting edge or leading edge applications.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And how how important was the LDT regulation and and how that And, you know, as far as how quickly those customers adopt, or were was there hesitation because they didn’t know what would happen with LDT rule? No.

George Cardoza, CFO, Sofia Genetics: It it was helpful. I mean, obviously, we supported doctor Arsila and and AMP leading that lawsuit that that ultimately was successful. I think even after the Chevron decision, I think there was a lot of people questioning, you know, this was an agency that sort of, without any direction from Congress, had sort of decided to increase, you know, the rules and regulations, which I think now, you know, obviously they’ve been pulled back. I think it helps give people a little sense of clarity that LDTs are here to stay. It’s really important in the molecular field too because change is happening so fast.

I mean the idea that you’re going to take something through the FDA, which can be a two, three year process, by the time you come out, you know, technologies change, things have changed, so I think everybody and AMP really led the way, which you know, kudos to them, but I think their argument was always this is going to slow innovation down. I mean, these you know, every time you pick up a journal, there’s a new gene tied to a new disease state, and and this is why it’s so important that this innovation continue to go rapidly.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And I realized I tied this in with an earlier question, but as far as long range targets, and maybe purposely avoid that. But what can you just remind us where you know, the last time you gave long range targets and how you’re thinking about when when the next time is you you you’d like to give that out to the investment community?

George Cardoza, CFO, Sofia Genetics: Yeah. You know, we said, you know, we expected to exit this year with with 20% year on year growth, and and we pointed out that the company historically had a CAGR of 23% growth, and and that’s sort of the the ballpark that we’re working to get back to. Obviously, internally, we’re working to far exceed that, but certainly we think that’s a comfortable place and and, you know, we’re bullish that we continue to grow, you know, 20 plus percent, continue to have the cost discipline. I think we’ve proven with the software model that it’s very scalable, we drop quite a bit down to the bottom line and and that’s why we think the the business is is exciting.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: So Okay. And I I guess maybe one of the the things that differs versus last time is you were anticipating the pharma business, I believe, to be 10% plus of revenues. And, obviously, that’s been an an area where, for a variety of reasons, pharma is not spending. So, obviously, they’re not 10% of revenues. And, you know, at the same time, you’ve accumulated now over 2,000,000 patient sample data, which I would have to assume at at some point becomes very valuable, especially with AI technology, if you can interrogate that.

So, you know, what’s kind of the tipping point that you see from from pharma? Is it is it a lot of it is just, hey. They’re they’re they’re tightening their budgets, and they’re not spending money on anything, especially something on the earlier side, or is it, you know, does he do you need two and a half million samples? Or is it kind of just a variety of things that eventually tips that tips that demand from the pharma customers?

George Cardoza, CFO, Sofia Genetics: Yeah. I I think there’s a recognition that, you know, certainly, there’s enormous value in that. I I think even just our reach. I mean, we were in The United Arab Emirates a couple weeks ago, and and, you know, AstraZeneca and m forty two and and Sofia were all basically announced the expansion of the MSK access leukobiaxy test. So, again, pharma is helping, you know, and selfishly they want more more testing done because that trips people, okay, these people now qualify for this therapeutic.

So they’re actively working with us to promote, you know, liquid biopsy testing in The Emirates, and and, you know, and it’s a very successful model. So I think pharma looks at our footprint and sees, you know, the 800 providers that we’re working with globally, and it’s, you know, it’s very hard to replicate that. So I I think there’s an excitement there, and and and certainly on the data side, as as you’ve said, I think there’s a lot of excitement on the data side as well.

Kellen Sanger, Head of Strategy, Sofia Genetics: Yeah. I mean, earlier this month, we announced the expanded partnership with AstraZeneca. That was a relationship that started on the sponsored testing of HRD testing back in 2023. They they really like the results of that, so they started sponsoring MSK access globally. And earlier this month, we announced an expanded partnership there.

I think we also you know, just looking back, we we did a little bit of a reset on our strategy and how we’re going to market and, you know, the number of conversations that we’re having with with large kind of top 10 biopharma is increasing. We are at ace AACR earlier or later last month and and and world of CBCDX, and I think the the quality and the substance of the conversations are increasing. So so more to come on on how the the the kind of refocus strategy will will will start building up momentum over time.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Got it. Let’s let’s talk about liquid biopsy because I do feel like that’s been a refocused strategy. Think Yeah. Two years ago, the number of times you said liquid biopsy in a in a given call was one or two, and now it seems to be a highlight. So just to be clear, you’re not running a lab you don’t own a lab where you’re running the test.

And so and you’re not selling sequencers. So how does that fit in with with a liquid you know, being a liquid biopsy company or offering a liquid biopsy test?

George Cardoza, CFO, Sofia Genetics: No. It is funny because I have to remind people, we’re a software company. We analyze the data that comes off the sequencers, but no. There’s no no blood or tissue coming into our facilities. Liquid biopsy is exciting though because again, you look at this was a test that was developed again in Manhattan by Memorial Sloan Kettering.

Now, if you’re a hospital, am I going to try to bring up my own liquid biopsy test? It would probably take my scientists a couple of years, and maybe they’re successful, maybe they’re not. And right now what’s happening effectively, the patient’s blood’s going out to Redwood City and being tested by Guardant. They’re completely out of the of the loop, they’re out of the information stream. So now, for them to have the ability to bring up a world class liquid biopsy test, and literally Sofia gives them the recipe, walks, holds their hand through the process, we call it the MaxCare process, but basically we’re holding their hand all the way through, looking at the data as it’s coming out, ensuring that the test they’re doing in Abu Dhabi is exactly the same quality as it would be in Manhattan.

And they now have the ability to do that test and care for their patients locally, which is huge versus sending the blood. And you think of The United States even, you know, what’s happening, a lot of the hospitals are completely out of the economics, everything’s going to garden, and matter of fact they don’t even know a lot of cases, you know, what’s happening to, you know, to this patient? And on the data side as well, think Tempus is, if nothing else, they’ve made people appreciate the value with the data, and now the hospitals are like, we want that information, Tempus will send them a PDF file, they actually want to have that patient in house, so you think if it’s better patient care, they’re eliminating the transit, faster turnaround time, better for the patient, and now the hospital participates in the economics. So it’s really, really compelling, and it’s gotten us in a lot of doors that previously were closed to us, and the idea that, you know, because, you know, as well as Guardant is done with liquid biopsy in The United States, Europe’s a little bit, you know, lagging in in terms of liquid biopsy.

So, again, that’s why this when we go out with this product, you know, in Europe and France and, you know, in The Middle East, it it’s very impactful. And people, you know, yes. We we want this.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And what so you’re targeting labs or hospital labs outside of The US that have a sequencer? Yeah.

Kellen Sanger, Head of Strategy, Sofia Genetics: Of course.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Yeah. And what’s your kind of if you look at you know, how much of your wins are how many of your wins are coming from customers that are current customers on with with the software side, or is this more, hey. You’re going after new customers? Or, you know, maybe they’ve maybe they’ve said no in the past to the software, and now you have a more compelling sales point to them.

George Cardoza, CFO, Sofia Genetics: So

Kellen Sanger, Head of Strategy, Sofia Genetics: Yeah. I’ve it’s a it’s a it’s a solid mix. I think depending on geography, it really has been a great way for us to sign up new new customers. So specifically with the help and sponsorship of AstraZeneca, reaching geographies across the globe We want a diverse dataset.

We want a dataset that is is, you know, representative of different patient populations so that the the value of the data back to the others is important. I’d also say the ability to land or or enter into account with the liquid biopsy test MSK access and then kind of pair that with MSK impact, which is the solid tumor test that was also developed by Memorial Sloan Kettering, which we’ve similarly done a a a good job of decentralizing. Those tests were meant to to go one in hand in hand in hand with each other. And so there are lots of abilities or opportunities for us to to come in with liquid testing and then expand to solid tumor. And then, you know, our NPS score is 67.

They get used to the platform. They’ve already implemented it. It’s now kind of a no brainer to add additional applications as opposed to them kind of creating those on their own.

George Cardoza, CFO, Sofia Genetics: It’s been it’s been a nice mix. In The US, it’s definitely opened some doors. I think in Europe, you know, some of the leading institutions there who, you know, were already our clients, but wanted to do it. But, you know, and The Middle East was a great example where, you know, AstraZeneca helped us quite a bit. Yeah.

So, you know, having AZ kind of behind this going, look. You can do leukobiaopsy testing. Here’s here’s the partner to help you do it. It’s very impactful.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And similar to the software offering, this is sequencer agnostic. It could be done on any any sequencer?

George Cardoza, CFO, Sofia Genetics: Yeah. No. We work with Element. We work with MGI. Yeah.

No. We’re we’re yep. I mean, this is a software as a service, and our bioinformaticians can make it work. Again, the genetic information CTGA for, you know, how it comes off, so we can make it work.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And are the economics similar to your, you know, nonliquid biopsy software offering in that you’re getting, you know, whatever, a a per test?

George Cardoza, CFO, Sofia Genetics: This a yeah. This actually is a higher price point for us because, again, I think we perceive it, and the market perceives it as more of a value add product. So, yeah, this is one of our higher, ASPs that that we offer.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And is that an easy sell? Because with the software, you’re just saying, hey. We’re you know, call whatever. You you pay us $200. You don’t need someone on the bioinformatics side.

But now not only you get that, but there’s a reimbursable revenue generating test that they have now they would have now that they didn’t have before.

George Cardoza, CFO, Sofia Genetics: Is that Exactly. Yes. So we’re going out, you know, even $400 even because, again, the reimbursement is, you know, three, four times that. So they’re they’re happy. They’re getting a significant cash flow stream, but they wouldn’t have gotten before.

If it’s going to garden, there’s zero economics going their way. So so to pay us, you know, a quarter of the economics is is not, you know, is very doable.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Is that a longer term driver of continued gross margin? Because if you’re higher if you’re doubling the essentially doubling the ASP, I’m assuming there’s not a lot of additional cost of goods for this, or maybe there is.

George Cardoza, CFO, Sofia Genetics: But Yeah. And and, you know, certainly, yes. The answer to your question is yes. We’ve we’ve hedged on the ASP in total, because a lot of people look at our overall ASP. We are expanding in Latin America, we’ve gotten some new offerings in India, so I think on the one hand we’ll have our ASP lift from things like MSK access, But, again, we are a global company, and and, you know, we’re all passionate about trying to, you know, get this technology out.

So so some of the emerging markets may put a little bit downward pressure on our overall ASP, but we think if we sell enough higher end products, even with the emerging markets coming in, we can hold the line the ASP side. Okay.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Then just with these customers, how many of the you said you can be used on a variety of sequencers, but how many of your customers then do have multiple sequencers in a specific lab, and then how does that change the adoption? Do you do you basically have the you could do the test on all three, or then are they just doing liquid biopsy test on one other sequencers?

Kellen Sanger, Head of Strategy, Sofia Genetics: Well, I’ll give one example. One of our customers is in Latin America. It’s one of our larger accounts and actually the largest central lab in Latin America is a is a customer of Sofia, and it’s actually an incredible case study. They validated, I think, seven different Sofia applications on three different types of sequencers. So three different brands of sequencers, which is a pretty incredible testament to our ability to adapt to any sort of workflow that the customer might want.

We’re also a partner with them in terms of making decisions on how they might wanna organize their workflow and produce the data. So we have certain recipes or or or things that we’ve developed over time after implementing 800 customers across 70 different countries. We’ve seen, you know, what works and what doesn’t. So in that case, we work hand in hand with them in order to create the the best workflow. And then, yeah, we can work with with any type of sequencer, any type of library prep and chemistry in order to get those going.

So it’s nice to see some examples of of the full menu of of applications validated across each of those sequencers.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And then you said that the hospital now would own the hospital lab would now own the the patient data. Does that mean that you don’t have access to it in your AI cloud, or do you still do you still able to access that with those tests?

Kellen Sanger, Head of Strategy, Sofia Genetics: So so we process the data, but we don’t own the data. So the data ownership stays locally with the institution. But at the same time, as we’re processing, obviously, the AI reads the data. It learns from it for the next patient, but that that data stays locally at the institution. We’re able to access it and learn from it and provide insights off of it.

But according to, you know, GDPR and other types of setups of data control, it’s very important to us that the institution and the patient ultimately retains control of their data.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. But it’s still additive to the 2,000,000. Oh, okay. An AI platform, you could still act, you know, through the through a

George Cardoza, CFO, Sofia Genetics: k No. And especially for things like rare diseases, you know, it it’s it’s almost impossible to replicate, you know, what we have because we’ve we’ve seen the rare diseases when you’ve done over 2,000,000 genomic profiles.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. Great. And we’ve got fifty seconds left. So path to profitability, remind us what you’ve what you’ve said. And does this, you know, obviously, a push in liquid biopsy.

Does that change the the timing of those those targets for either via faster revenue or more investments in

George Cardoza, CFO, Sofia Genetics: Yeah. I know our guide. You know, we were happy to see our our adjusted EBITDA loss was, you know, down to the single digits. You’ve seen the 75% gross margin, and we’ve said publicly that 60% of that can drop down to EBITDA. So, you know, we’ve said publicly that we expected our losses to be very small by the end of twenty twenty six and to go to adjusted EBITDA profitability into 2027.

So we we’ve we’ve stayed with that guide. I know q one was very good, but we’ve we’ve stayed with that guide at this point.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Great. Well, thank you for joining us. Thank you for everyone Thank you so much. Everyone in the audience. We appreciate your time.

George Cardoza, CFO, Sofia Genetics: Very much. Appreciate the invite. Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.