Q2 2025 Sophia Genetics Earnings Call

Kellen Sanger: One.

1.

Kellen Sanger: Thank you. Good morning, everyone.

Thank you. And good morning everyone. Welcome.

Kellen Sanger: Good morning. My name is Dani, and I will be your conference operator today. At this time, I would like to welcome everyone to the SOPHiA GENETICS SA Second Quarter 2025 Earnings Conference Call. Please note that all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, August 5th, 2025. I would now like to turn the conference over to Kellen Sanger, SOPHiA GENETICS SA Head of Strategy and Investor Relations. You may begin.

Good morning. My name is Danny and I'll be your conference operator. Today at this time I would like to welcome everyone. To the Sophia genetics second quarter 2025 earnings conference call.

Please note that all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this, call, you require immediate assistance, please press star zero for the operator.

Kellen Sanger: Welcome to SOPHiA GENETICS SA Second Quarter 2025 Earnings Conference Call. Joining me today to discuss our 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 would like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward-looking statements. Additional information regarding these risks, uncertainties, and factors that could cause results to differ appears in the press release issued by SOPHiA GENETICS SA today and in the documents and reports filed by SOPHiA GENETICS SA from time to time with the Securities and Exchange Commission.

Kellen Sanger: 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 will now turn the call over to Jurgi.

This call is being recorded on Tuesday, August 5th, 2025. I would now like to turn the conference over to Kellen Sanger Sophia, genetics head of strategy and investor relations. You may begin. Welcome to Sophia genetics second quarter 2025 earnings conference call. Joining me today to discuss our results are Dr. Jirgi camp-long, our co-founder and chief executive officer Ross, mucin our company president and Jorge cardoso for Chief Financial Officer. I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal Securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated and you should not Place undue Reliance on forward-looking statements additional information regarding these risks on certainties and factors that could cause results to differ appears in the press. Release issued by Sophia genetics today and in the documents and reports filed, by Sophia genetics from time to time with the Securities and Exchange Commission during this call.

Jurgi Camblong: Thanks, Kellen, and good morning, everyone. I will start today's call with a brief recap of Q2 performance, in which revenue growth continued to re-accelerate and cash burn decreased notably. I will then turn the call over to Ross, who will give a more detailed update on the business. George will close with a review of our Q2 financial performance before we take your questions. For the last several quarters, we've highlighted that new business momentum has been strong. New customer signings have been at record levels, and clinical bookings have consistently exceeded expectations. In Q2, like in Q1, BCF quotes continue to pay off. Total revenue grew 16% year over year despite headwinds from biopharma. Excluding biopharma, revenue grew over 20%, representing a solid return to near historical growth levels.

All 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 ye

Thanks, Ken, and good morning, everyone.

I will start today's call with a brief recap of Q2 performance, in which revenue growth continued to react, and cash burn decreased notably.

I will then turn the call over to Ross. We give a more detailed update on the business.

George will close with a review of our Q2 financial performance. Before we take your questions.

For the last several quarters. We've highlighted that new business momentum has been strong.

New customer signings have been a record levels.

And clinical bookings, have consistently exceeded expectations in Q2, like, in q1. This efforts continue to pay off.

Jurgi Camblong: Strength in the clinical market was driven by the three growth drivers we outlined at the beginning of the year: an impressive growth of recently signed new customers, continued success in the U.S. market, and new applications such as MSK-ACCESS. In Q2, we signed an all-time high of 35 new customers to SOPHiA DDM. These 35 new signings, combined with the 28 new signings in Q1, bring our total to 63 new customers signed this year alone. Our focus continues to be on implementing these new customers as quickly as possible so that they begin generating revenue faster. In Q2, we implemented 18 new customers, up slightly since the prior year period. I look forward to these customers ramping up usage over the next few months and adopting additional applications over time. The second growth driver I will address is continued expansion in the U.S. market. In Q2, U.S.

Total revenue grew 16% year-over-year, despite headwinds from BioPhora. Excluding BioPhora, Pharma revenue grew over 20%, representing a solid return to near historical growth levels.

Since the clinical market was driven by the three growth drivers we outlined at the beginning of the year, and an impressive cohort of recent science, new customers continued success in the U.S. market and new applications such as MSK access.

Q2 we sign an all-time high of 35 new customers to Sophia, DDM this 35 new signings combined with the 28 new signings in q1. Bring our total to 63 new customer sign this year alone.

Our Focus continues to be on implementing this new customers as quickly as possible so that they begin generating Revenue faster.

In Q2, we implemented 18 new customers, up slightly since the prior year period.

I look forward to discussing customers ramping up usage over the next few months and adopting additional applications over time.

Jurgi Camblong: revenue excluding biopharma grew more than 19% year over year. In addition, new business momentum continues to build. We recently signed major new U.S. customers, including UC Irvine, which is adopting solid tumor and IM-ONC applications, as well as the University of Alabama Birmingham, which is adopting SOPHiA DDM for IM-ONC. We also announced today recent success in the Central Lab customer category. Similar to academic medical centers, Central Labs use SOPHiA DDM to power their bioinformatics needs. In Q2, we welcomed two new Central Labs to the SOPHiA network. Simply PCR, based in Toronto, Canada, is adopting the MSK-ACCESS application for liquid biopsy testing. iGenomics, a pioneer in reproductive genetics with global operations, is adopting SOPHiA DDM for rare and inherited disorders.

Us Revenue excluding biofarma grew more than 19% year-over-year.

In addition, new business momentum continues to build. We recently signed major new US customers including UC Irvine, which is adopting solid tumor. And I'm on applications, as well as the University of Alabama, Birmingham, which is adopting, Sophia, DM for Iman.

We also announced today recent success in the central lab customer category.

Similar to academic medical centers Central Labs, use Sophia, DM to power. Their bioinformatics needs.

In Q2, we welcome 2 new Central labs to the Sophia Network.

Jurgi Camblong: iGenomics and Simply PCR join other recent Central Labs who have adopted SOPHiA DDM, including LifeLabs, Premier Integrated Labs, DASA, UNILABS, Veris Health and Genetics, Eurofins, and more. The third growth driver we will continue to focus on is expanding the adoption of our liquid biopsy application, MSK-ACCESS. Last year, we launched this application by industrializing MSK's world-renowned test and made liquid biopsy testing accessible to the entire world. In Q2, we signed an impressive 11 new customers to the application, bringing our total number of liquid biopsy customers to 50 across the globe. Just this quarter, we signed MSK-ACCESS customers in Canada, Colombia, Brazil, Australia, India, Malaysia, Turkey, France, Spain, Italy, and Saudi Arabia. It's been incredible to see this diverse global community come together on SOPHiA DDM to share their knowledge and insights and contribute to a collective intelligence.

Simply PCR. Based in Toronto Canada is adopting the msk access application for liquidity, testing and igenomix the Pioneer in reproductive genetics with global operations is adopting. Sophia DDM for rare and inherited disorders.

Hi, genomics and simple PCR. Join other recent central labs that have adopted SOPHiA DVM, including Life Labs, Premier Integrated Labs, Daza, Unilabs, Very Health, and Genetics Heroine, and more.

The third quarter, we will continue to focus. On is expanding the adoption of our liquid biopsy application, msk.

Last year, we launched this application by industrializing msk World green on tests and made liquidity testing accessible to the entire world. In Q2, we sign an impressive 11, new customers to the application. Bring our total number of liquid BC, customers to 50 across the globe, just this quarter, we signed the MSC access customer in Canada, Colombia, Brazil, Australia, India, Malaysia, turkey, France, Spain, Italy, and Saudi Arabia.

Jurgi Camblong: Last quarter, we discussed how our growing global network and the collective intelligence housed within SOPHiA DDM benefit not only clinical customers but also biopharma companies. This quarter, I'm thrilled to bring you a major new update. Today, we announced the signing of the largest contract in the history of SOPHiA GENETICS with a new multi-year expansion of our collaboration with AstraZeneca. The new partnership focuses on two primary areas. First, AZ will leverage SOPHiA's proprietary AI factories to analyze multimodal healthcare data to develop a bespoke AI-powered predictive model to optimize outcomes for patients undergoing treatment for breast cancer. Second, we will leverage our extensive global network to generate real-world evidence to advance the understanding of breast cancer treatment in North America and Europe.

Last quarter, we discussed how our growing global network and the collective intelligence housed within SOPHiA EDM benefit not only clinical customers but also your former company.

Quarter. I'm thrilled to bring you a major new update.

Today, we announced the signing of the largest contract in the history of Sophia in dicks with a new multi-year expansion of our collaboration with Astra zenica.

The new partnership focuses on 2 primary areas. First a, we leverage Sophia's proprietary AI factories to analyze multimodal, Healthcare data to develop a bespoke AI powered predictive model to optimize outcomes for patients undergoing treatment for breast cancer.

Jurgi Camblong: These two efforts highlight the value of data and AI to biopharma companies and the value that SOPHiA and its partners can bring to patients across the globe. Before I hand this over to Ross and George, I would like to recognize the SOPHiA team for their continued focus on driving productivity and efficiency across the business. In Q2, we reduced cash burn to $8.7 million in the quarter, a 35% year over year improvement on a reported basis or 10% after adjusting for effects. This, in part, was driven by innovations from our tech and data science teams, who continue to engineer new ways to optimize the data compute and processing power of our platform. In Q2, we delivered a 74.4% adjusted gross margin, up 120 basis points year over year.

We leverage our extensive Global Network to generate real world evidence to advance the understanding of breast cancer treatment in North America and Europe.

These two efforts highlight the value of data and AI in biotechnology for companies, as well as the significant contributions that Sophia and its partners can bring to patients across the globe.

Before I am this over to Ross and George I would like to recognize the Sophia team for their continued focus on driving productivity and efficiency across the business.

In Q2 we reduce cash burn to 8.7 million in the quarter. The 35% year-over-year Improvement on a reported basis or 10% after adjusting, for FX.

This in part was driven by Innovations from our Tech and data science. Teams, who continue to engineer new ways, to optimize the data compute and processing power of our platform.

Jurgi Camblong: These improvements are especially impressive given data processed by SOPHiA DDM is growing at more than 50% CAGR in recent years. While analysis volumes continue to grow, so does the complexity of data. Gene panels are becoming larger, additional modalities are becoming more useful, and more sophisticated tests are being deployed each day. Our scalable cloud-based platform, SOPHiA DDM, is designed to support the medical innovations of today and tomorrow, deploying innovations with accuracy and efficiency. This spirit places our platform at the center of a vibrant community of the leading minds in healthcare. These leaders, who we call the SOPHiA community, depend on SOPHiA DDM each day to generate insights for their patients. In doing so, our community contributes a constant stream of data and insights to the platform, which fuels one of the most sophisticated AI engines in healthcare.

Q2 we delivered a 74.4% adjusted gross margin up, 120 basis, points year-over-year.

It's improvements are especially impressive, even data processed by Sophia, dbm is growing at more than 50% cagar in recent years.

While analysis volumes continue to grow. So does the complexity of data Gene, panels are becoming larger, additional modalities are becoming more useful and more sophisticated tests are being deployed each day.

Our scalable cloud-based platform. Sophia dbm is designed to support the medical Innovations of today, and tomorrow, deploying Innovations with accuracy and efficiency. This Spirit places our platform at the center of a Vibrant Community of the leading Minds in healthcare, these leaders who we call the Sophia Community depend on Sophia DDM each day to generate insights for their patients.

Jurgi Camblong: Unlike other technologies, SOPHiA is grounded in everyday real-world clinical use cases. In Q2 alone, SOPHiA DDM generated insights for over 95,000 patients across 800 institutions and 70 countries worldwide. These everyday use cases and the power of SOPHiA community were on full display during a series of innovation days hosted at the SOPHiA headquarters during Q2. In May and June, we invited customers, partners, and industry collaborators to full-day summits in Geneva and Boston. In total, more than 200 unique customers attended the event, bringing together top pathologists, oncologists, biopharma leaders, and tech innovators to discuss the best ways to use AI and SOPHiA DDM to help patients. Events like this bring out the best of SOPHiA by connecting a passionate group of individuals with a shared goal to solve the most pressing problems facing our world.

It shows one of the most sophisticated AI engines in healthcare.

Unlike other Technologies, Sophia is grounded in every day, we are working in use cases.

And in Q2 alone, SOPHiA DDM generated insights for over 95,000 patients across 800 institutions and 70 countries worldwide.

This everyday use case and the power of the SOPHiA community.

Were on full display during a series of innovation days hosted at the Sophia headquarters during Q2.

In May and June. We invited customers partners and Industry. Collaborators to full day Summits in Geneva. And Boston in total more than 200 unique, customers attended the event bringing together, top Pathologists, oncologists bio formal leaders and Tech innovators to discuss the best ways to use Ai and Sophia dbm to help patients.

Events like this. Bring out the best of Sophia, by connecting a passionate group of individuals with a shared goal to solve the most pressing problems facing our world.

Jurgi Camblong: They also demonstrate the momentum we are feeling in the business right now, as SOPHiA sits at the center of exciting market trends. With that, I will now turn the call over to Ross, who will discuss how this growing momentum has been materializing into results.

They also demonstrate the momentum we are feeling in the business right now.

Ross Muken: Thanks, Jurgi. The go-to-market teams share your excitement and confirm there is broad and growing demand for the SOPHiA offering. Along those lines, I will start today by giving a brief update on our Q2 performance as we continue to have a strong start to 2025 across both new and existing business. I will then cover some of the broader market dynamics before closing with a look at what we are seeing in the pipeline. First, the core business returned to healthy growth levels as revenue excluding biopharma grew an impressive 20% year over year in the second quarter. Biopharma continued to present some modest headwinds, bringing overall revenue growth to 16%. Despite biopharma weakness, the core business remains strong, and new biopharma wins, such as the latest partnership with AstraZeneca, represent encouraging signs that the business is moving towards a point of stabilization.

Sophia sits at the center of exciting market trends with that. I will now turn the call over to Ross who will discuss how this growing momentum. Has been materializing into results.

Thanks G. The Golden Market team. Share your excitement and confirm. There is Broad and growing demand for the Sofia offering along those lines. I'll start today by giving a brief update on our Q2 performance as we continue to have a strong start to 2025 across both new and existing business. I'll then cover some of the broader market dynamics before closing with a look at what we are seeing in the pipeline.

First, the core business returned to healthy growth levels as revenue excluding BioPharma grew an impressive 20% year-over-year in the second quarter.

Ross Muken: Given these positive developments, we expect the second quarter to be the final quarter of the year in which biopharma negatively impacts overall growth. On the clinical side, from a regional perspective, North America and Asia-Pacific continue to outperform in the second quarter, with 24% and 33% year over year revenue growth, respectively. EMEA growth remains solid, with the United Kingdom as a notable driver. Consistent wins and expansion across the NHS has resulted in over 50% year over year volume growth. In Latin America, we continued to experience softness this quarter, but recent bookings, such as our expanded partnership with DASA, give us conviction that meaningful growth will return to the business in the medium term. From an application standpoint, we continue to establish ourselves as the global leader in hematology testing. IM-ONC analysis grew 19% year over year in the second quarter, off an increasingly large base.

Biofarma continued to present, some modest headwinds bringing overall Revenue growth to 16%. Despite biofarma weakness. The Core Business remains strong and new biofarma wins such as the latest partnership with astroica represent. Encouraging signs that the business is moving towards a point of stabilization. Given these positive developments. We expect the second quarter to be the final quarter of the year in which biofarma negatively impacts overall growth

On the clinical side, from a regional perspective, North America and Asia Pacific continue to outperform in the second quarter with 24% and 33% year-over-year revenue growth, respectively.

Amia growth remains solid with the United Kingdom. As a notable driver, consisting wins and expansion across. The NHS has resulted in over 50% year-over-year, volume growth. In Latin America, we can continue to experience softness this quarter but Recent Bookings such as our expanded partnership with Dasa, give us conviction. That meaningful growth will return to the business in the medium term from an application standpoint. We continue to establish ourselves as the global leader in hematology testing

Ross Muken: Beyond IM-ONC, we also saw the initial wave of liquid biopsy testing begin coming online. In the second quarter, we reached almost 2,000 liquid biopsy analyses in the quarter. As a reminder, more sophisticated applications like MSK-ACCESS carry a higher ASP than other product lines. We will look to the back half of the year for MSK-ACCESS to meaningfully drive overall growth as customers complete implementations and ramp up usage. Moving to the new business side, I am happy to share that in the second quarter, we continued to book new business at record speeds. We landed a historic 35 new core genomic customers in the quarter, up from 19 new customers signed in the second quarter of 2024. In North America, new business momentum continued with several major additions to the SOPHiA network.

The market analysis. Grew. 19% year-over-year in the second quarter. Often increasingly large base.

Beyond he monk. We also saw the initial wave of liquid biopsy. Testing begin coming online in the second quarter. We reached almost 2,000. Liquid biopsy analysis in the quarter. As a reminder more sophisticated applications, like msk access carry a higher ASP than other product lines. We will look to the back half of the year for msk access to meaninglessly drive overall growth as customers complete in the limitations, and ramp up usage.

Ross Muken: As Jurgi announced, we signed UC Irvine and the University of Alabama at Birmingham, two notable U.S. academic medical centers. We also expanded our footprint in the Central Lab customer segment, signing Simply PCR and iGenomics, in addition to LifeLabs last quarter. These partnerships demonstrate our ability to serve a diverse range of healthcare institutions, from academic centers to centralized reference centers, and reinforce our ability to drive cost savings and turnaround time in a variety of settings. We also expanded our partnership with Sunnybrook Health Sciences Center, the largest single-site hospital in Canada. Last quarter, we announced that Sunnybrook added IM-ONC applications on top of their solid tumor testing. Now, in the second quarter, they are also adopting a rare and inherited disorders application for clinical exomes. We look forward to continuing our collaboration with Sunnybrook as they broaden their precision medicine capabilities.

Moving to the new business side. I'm happy to share. Then the second quarter, we continued to book, new business and record speeds. We land a a historic, 35 new core genomic. Customers in the quarter up from 19, new customers. Signed in the second quarter of 2024 in North America, new business. Momentum continued with several major additions to the Sophia Network as your announced. We sign UC Irvine, and the University of Alabama at Birmingham 2 notables, academic medical centers. We also expanded our footprint in the central Lab customer segments, signing, simply PCR and and igenomix. In addition to Life Labs last quarter,

Healthcare institutions, from academic centers to centralized reference, reinforce our ability to drive cost savings and turnaround time in a variety of settings.

Ross Muken: In EMEA, last quarter, we announced a partnership with M42, the Abu Dhabi-based world health leader that is adopting MSK-ACCESS at select hospitals throughout the UAE. In the second quarter, we capitalized on this momentum and signed another premier institution in the Middle East with the addition of King Faisal Specialist Hospital and Research Center in Riyadh, Saudi Arabia. Similar to M42, King Faisal Hospital is adopting MSK-ACCESS for liquid biopsy testing. Beyond the Middle East, our decentralized liquid biopsy application continues to attract interest. In the second quarter, we signed Hospital del Mar Research Institute in Barcelona, Spain, Instituto Oncologico Veneto in Padova, Italy, and Assistance Publique Hospital de Marseille in France to MSK-ACCESS, amongst others. Congrats to the EMEA team on an excellent quarter. In APAC, MSK-ACCESS was a major theme as well.

We also expanded our partnership with Sunnybrook Health Sciences Centre, the largest single-site hospital in Canada, last quarter. We announced that Sunnybrook added hemoc applications on top of their solid tumor testing. Now, in the second quarter, they are also adopting a rare inherited disorders application for clinical exomes. We look forward to continuing our collaboration with Sunnybrook as they broaden their precision medicine capabilities. In a similar vein last quarter, we announced a partnership with M42, the Abu Dhabi-based world health leader that is adopting MSK Access at select hospitals throughout the UAE. In the second quarter, we capitalized on this momentum and signed another premier institution in the Middle East with the addition of King Faisal Specialist Hospital and Research Centre in Riyadh, Saudi Arabia.

Similar to m42 King. Fisel hospital is adopting msk access for liquid, biopsy testing,

Beyond the Middle East are decentralized. Liquid biopsy application continues to attract interest and the second quarter we signed Hospital, delmare Research Institute in Barcelona Spain, Instituto oncological venetto in Padua Italy and assistance in France to msk access amongst others. Congrats to the media team on an excellent quarter.

Ross Muken: The Royal North Shore, a major public teaching hospital located outside of Sydney, Australia, recently joined the list of customers adopting MSK-ACCESS. Australia continues to be a highlight as volume increased nicely again this quarter, with over 50% year over year growth. Beyond Australia, India has outperformed as well. The Q2 revenue growth grew almost 100% year on year, and like Australia, new business momentum remains strong. In the second quarter, we expanded our partnership with Tata Memorial Hospital, one of the oldest and largest cancer centers in India. Tata is expanding their suite of SOPHiA applications to include MSK-ACCESS, in addition to solid tumor, IM-ONC, and hereditary cancer. We expect these new business wins will keep the APAC business growing into 2026 and beyond.

Ross Muken: Lastly, in Latin America, we signed IPF Sura, one of the most renowned healthcare providers in Colombia, who is using SOPHiA DDM Platform and the MSK-ACCESS application to launch liquid biopsy testing. I am also proud to announce today a significant new expansion of our longstanding partnership with DASA. DASA, the largest medical diagnostics company in Latin America, is now adopting new applications for IM-ONC and rare disease testing. This expansion will add an estimated 12,000 new analyses per year, on top of the volume DASA is currently running today across hereditary cancer, solid tumor, and liquid biopsy applications. Thank you, DASA, for your continued partnership. In conclusion, new clinical business remains strong across all geographies. We continue to sign new customers at impressive rates, and the average contract value of signings continues to increase.

In APAC, MSK access was a major theme as well. The Royal North Shore, a major public teaching hospital located outside of Sydney, Australia, recently joined the list of customers adopting MSK access. Australia continues to be a highlight as volume increased nicely, again this quarter with over 50% year-over-year growth. Beyond Australia, India has outperformed as well; the quarter revenue growth grew almost 100% year-on-year, and like Australia, new business momentum remains strong in the second quarter. We expanded our partnership with Tata Memorial Hospital, one of the oldest and largest cancer centers in India. Tata is expanding their suite of SOPHiA applications to include MSK access in addition to solid tumor, hemonk, and hereditary cancer. We expect these new business wins will keep the APAC business growing into 2026 and beyond. Lastly, in Latin America, we signed EPS Sura.

1 of the most renowned healthcare providers in Colombia who is using Sophia DDM and the msk app that says, application to launch liquid biopsy testing. I'm also proud to announce today, a significant new expansion of our long-standing partnership with DSA.

Ross Muken: In the second quarter, similar to the first quarter, ACVs on new business were up more than 100% year on year. This is primarily due to three factors. One, our success at selling the value of a precision medicine platform to enterprise-level accounts, resulting in more multi-application lands. Two, heightened competitive win rates amongst large U.S. accounts. Three, an industry-wide migration towards more sophisticated applications that require significant data compute and highly advanced algorithms. As the quantity and size of new customer signings grow, bookings continue to be strong, and revenue growth improves, one might expect that the total value of our pipeline may go down. I am proud to say that this has not been the case. Despite the high conversion rates, we have been able to consistently replenish our pipeline with new opportunities. Pipeline has more than doubled since the same time last year.

DSA. The largest medical Diagnostics company in Latin. America is now adopting, new applications for hemoc and rare disease. Testing this expansion will add an estimated 12,000, new analysis per year. On top of the volume Doss is currently running today across hereditary cancer solid tumor and liquid biopsy applications. Thank you, Dosa, for your continued partnership in conclusion. New clinical business remains, strong across all geographies, we continue to sign new customers and oppressive rates, and the average contract value of signings continues to increase in the second quarter. Similar to the first quarter acvs on new business were up more than 100% year-on-year. This is primarily due to 3 factors 1 our success at selling the value of a Precision medicine platform to Enterprise level accounts. Resulting in more multi-application lands to heighten competitive win rates, amongst large US accounts and 3 an industry.

Wide, migration towards more sophisticated applications that require significant data compute and highly Advanced algorithms.

Ross Muken: Consistent growth of our pipeline reflects an increased level of discipline from our sales team and the strength of our end markets. Clinical users are increasingly demanding cutting-edge solutions, which utilize the latest advancements in AI to better serve their patients. In this way, the healthcare data space has become more sophisticated than ever, and solutions like SOPHiA stand out for its technical excellence. Technical sophistication alone does not create meaningful change in healthcare. While many companies, including the major tech players, launch academically interesting AI models, they often lack practical application in a clinical setting. SOPHiA is set apart in this area. Our platform and the AI which powers it impact thousands of patients each day and hundreds of thousands of patients per year.

Including the major Tech players launch academically, interesting AI models. They often lack practical application in a clinical saving.

Ross Muken: Embedded in the daily workflows of providers across 800 institutions and 70 countries, SOPHiA has an unparalleled ability to deploy AI models in the clinical setting and learn from the real-time, real-world use of such models. The latest proof point of our differentiated AI capabilities is the recently signed collaboration with AstraZeneca. As part of the partnership, SOPHiA will develop a bespoke AI-powered predictive model for AstraZeneca's breast cancer portfolio to optimize patient outcomes in North America and Europe. This engagement was made possible by SOPHiA DDM's world-class AI in combination with the vast global network we have created. From a business perspective, the collaboration offers an incredible opportunity to demonstrate to biopharma partners the impact we can jointly have on patients. We look forward to keeping you updated on the progress of this project and on future developments across the biopharma business.

Sophia is set apart in this area, our platform and the AI which Powers it impacts thousands of patients each day and hundreds of thousands of patients per year.

Embedded in the daily workflows of providers across 800 institutions and 70 countries. Sophia has an unparalleled ability to deploy AI models in the clinical setting and learn from the Real Time real world use of such models. The latest proof point of our differentiated AI capabilities is the recently signed collaboration with astroica as part of the partnership, Sophia will develop a bespoke AI powered predictive model for astragin breast cancer portfolio to optimize patient outcomes in North America and Europe. This engagement was made possible by Sophia ddms, world-class AI in combination with the vast Global Network. We have created from a business perspective. The collaboration offers an incredible opportunity to demonstrate the biofarma partners the impact. We can jointly have on patients we look forward to keeping you updated on the progress of this project.

Ross Muken: To conclude, I am proud of the team for delivering an excellent quarter, and I am also encouraged by the growth of our pipeline and our end markets. With that, I will now turn it over to George, who will provide a more detailed look at our second quarter financial results.

And I'm future developments across the biofarma business to conclude I'm proud of the team for delivering an excellent quarter. And I'm also encouraged by the growth of our Pipeline and our end markets with that. I will now turn it over to George, who will provide a more detailed? Look at our second quarter Financial results.

Kellen Sanger: Thank you, Ross, and good morning, everyone. As Jurgi and Ross highlighted, Q2 results came in slightly ahead of expectations as new business from 2024 begins to come online. Total revenue for the second quarter of 2025 was $18.3 million, compared to $15.8 million for the second quarter of 2024, representing year over year growth of 16%. While we are pleased with the second quarter revenue, new business bookings were also strong, and the future is expected to remain bright. Platform analysis volume was approximately 95,000 for the second quarter of 2025, compared to approximately 87,000 for the second quarter of 2024, representing year over year growth of 9%. Core genomic customers were 490 as of June 30, 2025, up 33 from 457 in the prior year period and flat relative to Q1 of 2025.

Thank you, Ross, and good morning, everyone. As you're being lost, highlighted Q2 results came in slightly ahead of expectations, as new business from 2024 begins to come online.

Total revenue for the second quarter of 2025 was 18.3 million compared to 15.8 million for the second quarter of 2024 representing year-over-year growth of 16%.

While we're pleased with the second quarter revenue, new business bookings were also strong, and the future is expected to remain bright.

Platform analysis. Volume was approximately 95,000 for the second quarter of 2025 compared to approximately 87,000 for the second quarter of 2024, representing year-over-year growth of 9%.

Kellen Sanger: As Ross mentioned, we have intentionally focused our sales team on winning larger and larger accounts. While we moved 18 new customers into routine this quarter, we also churned out a few small accounts. The average revenue across all churned accounts in Q2 was less than $16,000 per year, and revenue churn was approximately 5%. Net dollar retention for the quarter was 107%, with strong performance in Europe and North America, partially offset by a decline in growth in Latin America. We look forward to seeing our substantial and healthy new customer base grow over time. Gross profit for the quarter was $12.3 million, representing year over year growth of 14%. Gross margin was 67% for the second quarter of 2025, compared with 68.2% for the second quarter of 2024, down slightly from last year. Adjusted gross profit was $13.6 million, an increase of 18%.

According to my customers were 490 as of June 30th, 2025 up 33 from 457, in the prior year period and flat relative to q1 of 2025.

As was mentioned, we have intentionally focused our sales team on winning larger and larger accounts.

While we moved 18, new customers into routine this quarter. We also turned out a few small accounts

The average revenue across all turned accounts in Q2 was less than $16,000 per year, and revenue turned was approximately 5%. Net dollar retention for the quarter was 107%, with strong performance in Europe and North America, partially offset by a decline in growth in Latin America.

We look forward to seeing our substantial and healthy new customer base grow over time.

Growth profit for the quarter was 12.3 million representing year-over-year, growth of 14%. Gross margin was 67% for the second quarter of 2025 compared with 68.2% for the second quarter of 2024 down slightly from last year.

Kellen Sanger: Adjusted gross margin was 74.4% for the second quarter, up 120 basis points from 73.2% in Q2 2024. As Jurgi mentioned, targeted platform improvements throughout the year continue to drive cloud compute and storage costs lower, an achievement we remain proud of and plan to continue throughout the year. Total operating expenses for Q2 were $30.8 million, compared to $28.2 million in the first quarter of 2025, for a sequential increase of 9% versus the first quarter. This was driven primarily by sales and marketing expenses, which were up due to higher commissions expensed during the quarter as sales performance continued to be strong. The remainder of the sequential increase was primarily driven by foreign exchange impacts. We had $1.6 million foreign exchange expense headwind during the quarter due to the appreciation of the Swiss franc and the euro relative to the U.S. dollar.

Adjusted gross profit was 13.6 million, an increase of 18%.

Adjusted gross margin was 74.4% for the second quarter up. 120 basis points from 73.2% in Q2 2024.

As you mentioned targeted, platform improvements throughout the year. Continue to drive Cloud compute, and storage costs. Lower an achievement, we remain proud of and plan to continue throughout the year.

Total operating expenses for Q2 with 30.8 million compared to 28.2 million. In the first quarter of 2025, for a sequential increase of 9% versus the first quarter. This was driven primarily by sales and marketing expenses which were up to higher commissions expense during the quarter as sales performance continued to be strong.

The remainder of the sequential increase was primarily driven by foreign exchange impacts.

Kellen Sanger: The majority of our employees are paid in Swiss francs or euros, and these two currencies appreciated significantly compared to the U.S. dollar in the second quarter. The $30.8 million was higher than the prior year figure of $25.8 million for the second quarter of 2024, representing an increase of 19% year over year. This increase was again driven by the change in exchange rates, as well as sales and marketing expenses, which were up due to higher commissions paid during the quarter as growth is accelerating and sales performance continued to be very strong. On a year over year basis, we have invested heavily in our sales team and are seeing the payback from that as clinical growth accelerates. Operating loss for the quarter was $18.5 million, compared to $15.0 million in the prior year period.

The 30.8 million was higher than the prior year, figure of 25.8 million. For the second quarter of 2024 representing an increase of 19% year-over-year.

The change in exchange rates, as well as sales and marketing expenses, were impacted by the higher commissions paid during the quarter. As growth is accelerating, sales performance continued to be very strong.

On a year-over-year basis. We have invested heavily in our sales team and are seeing the payback from that as clinical growth accelerates.

Kellen Sanger: Adjusted operating loss was $12.6 million, compared to $9.9 million in Q2 2024, representing an increase of 27% year over year. Once again, the key deltas were the higher sales commission expenses and foreign exchange impacts. Adjusted EBITDA loss for Q2 was $11.7 million, compared to $8.8 million in Q2 2024. Sequentially, adjusted EBITDA loss was up $1.9 million this quarter, the entirety of which can be explained by foreign exchange headwinds and higher commissions as a result of the improved sales performance. As with previous quarters, we remain laser-focused on driving efficiency gains across the business and reducing costs down the P&L. We also remain confident in our commitment to be approaching adjusted EBITDA breakeven by the end of 2026 and crossing over to positive adjusted EBITDA in the second half of 2027.

Operating loss for the quarter was 18.5 million compared to 15.0 million in the prior year, period. Adjusted operating loss was 12.6 million compared to 9.9 million. In Q2, 20224 representing an increase of 27% year-over-year. Once again, the key Deltas were the higher sales commission expenses and foreign exchange impacts

adjusted ebit a loss for Q2 was 11.7 Million compared to 8.8 million in Q2 202024,

The sequentially adjusted Eva loss, was up 1.9 million this quarter. The entirety of, which can be explained by Foreign Exchange headwinds and higher commissions as a result of the improved sales performance.

Kellen Sanger: Lastly, total cash burn, which we define as the change in cash and cash equivalents for the second quarter of 2025, was $8.7 million, compared to $13.3 million in the prior year quarter, representing a year over year improvement of 35%. Excluding the impacts of exchange rate differences, cash burn improved 10% in Q2. We had significant foreign exchange benefit during the second quarter as the cash that we held in Swiss francs and euros appreciated substantially against our reporting currency, which is the U.S. dollar. Thus, our foreign exchange cash was worth more U.S. dollars at the end of the second quarter due to the change in FX rates. Given growth is returning to the business and forward-looking indicators such as new business bookings and pipeline remain strong, we drew on the second tranche of debt financing available through our May 2024 agreement with Perceptive Advisors.

As with previous quarters, we remain laser focused on driving efficiency, gains across the business and reducing costs down the pnl. We also remain confident in our commitment to the approaching adjusted ebit or break, even by the end of 2026 and crossing over to positive, adjusted IBA and the second half of 2027,

Lastly, total cash burn, which we define as the change in cash and cash equivalents for the second quarter of 2025, was $8.7 million compared to $13.3 million in the prior year quarter, representing a year-over-year improvement of 35%.

Excluding the impacts of exchange rate, differences cash burn. Improved 10% in Q2.

We had significant foreign exchange benefits during the second quarter, as the cash that we held in Swiss Francs and Euros appreciated substantially against our reporting currency, which is the US dollar. Thus, our foreign exchange cash was worth more US dollars at the end of the second quarter due to the change in FX rates.

Kellen Sanger: We continue to have a good relationship with Perceptive, and we are appreciative of their support. We believe that we are in a position of strength to continue accelerating growth and therefore reinforced our already strong balance sheet with an additional $35 million in June. With the addition of these funds, we finished the quarter with cash and cash equivalents of $94.8 million as of June 30, 2025. We remain confident in our current capital position with respect to the achievement of our long-term goals. I will now turn to our 2025 outlook. Given the promising re-acceleration of revenue growth in Q2, SOPHiA GENETICS SA is reaffirming our full-year revenue guidance for 2025 of $72 million to $76 million, representing 10% to 17% growth on a reported basis. As a reminder, we expect Q4 to continue being the strongest quarter seasonably during the year.

Given growth is returning to the business and forward-looking indicators such as new business, bookings, and pipeline remain strong. We drew on the second tranche of debt financing available through our May 2024 agreement with perceptive. Advisors, we continue to have a good relationship with perceptive and we're appreciative of their support.

We believe that we are in a position of strength to continue accelerating growth and therefore, reinforced our already strong balance sheet with an additional 35 million in June.

With the addition of these funds, we finished the quarter with cash and cash equivalents of 94.8 million as of June 30th 2025.

We remain confident in our current capital position with respect to the achievement of our long-term goals.

On that note, let’s turn to our 2025 outlook.

Give the promising re acceleration of Revenue growth in Q2. Sophia genetics is reaffirming our full year Revenue, guidance for 2025 of 72 million, to 766 million representing 10 to 17% growth on a reported basis,

Kellen Sanger: We also expect that exchange rates will likely remain volatile due to macro uncertainties, which may have an impact to reported results, which are reported in U.S. dollars. Last, recognition of revenue related to the newly announced partnership with AstraZeneca will primarily begin in Q4, with milestones continuing into 2026 and beyond. Expenses related to the partnership may be incurred prior to the ability to recognize the related milestone-based revenue. Beyond revenue, we are also reaffirming our full-year adjusted EBITDA loss guidance of $35 million to $39 million. We continue to make targeted investments in our platform to optimize cloud compute and storage costs and expect to expand gross margins beyond 2024 levels. We also expect to continue to largely hold the line on operating expenses in local currencies as we currently have the correct team size to support our medium-term growth objectives.

As a reminder, we expect Q4 to continue being the strongest quarter seasonably during the year.

We also expect that exchange rates will likely remain volatile due to macro uncertainties, which may have an impact to reported results, which are reported in the US dollars.

Last recognition of Revenue related to the newly announced partnership with astrozen Will primarily begin in Q4 with Milestones continuing into 2026 and Beyond.

Expenses related to the partnership may be incurred prior to the ability to recognize the related milestone-based revenue.

Beyond Revenue. We are also reaffirming our full year adjusted ibida loss guidance of 35 million to 39 million.

We continue to make targeted investments in our platform to optimize Cloud compute and storage costs and expect to expand gross margins Beyond 2024 levels.

Kellen Sanger: This excludes some high ROI investments we will continue to make related to marketing activities, as well as certain investments in the commercial team, including commission payments for overperformance. Our growth has been accelerating, and we believe these investments will pay off later in the year and in 2026 and beyond. To note, the continued volatility of exchange rates due to macro uncertainties may continue to have an impact on reported expenses. The U.S. dollar weakens significantly during the second quarter of the year as compared to the Swiss franc and the euro, and this increases our reported expenses in U.S. dollars. If the dollar were to recover and appreciate during the second half of the year, this impact would be reduced. Finally, we will continue to revisit our discretionary expenditures and execute on identified savings in systems, professional services, and certain public company costs throughout 2025.

We also expect to continue to largely hold the line on operating expenses in local currencies, as we currently have the correct team size to support our medium-term growth objectives.

This excludes some high ROI investments. We will continue to make related investments in marketing activities, as well as certain investments in the commercial team, including commission payments for over-performance.

And in 2026 and Beyond.

To note the continued.

The ability of exchange rates, due to macro uncertainties, may continue to have an impact on reported expenses.

The US dollar weakened significantly during the second quarter of the year as compared to the Swiss franc and the Euro and this increases our reported expenses in US dollars.

If the dollar were to recover and appreciate during a second half of the Year, this impact would be reduced.

Kellen Sanger: The combined nature of these items and the natural operating leverage in the business from strong revenue growth will further our path to profitability in the next two years. With that, I would like to turn the call back over to Jurgi for the closing remarks before we take your questions.

Finally, we will continue to revisit our discretionary expenditures and execute on identified savings and systems, Professional Services and certain public company costs throughout 2025.

The combined nature of these items and the natural operating leverage in the business from strong Revenue. Growth will further our path to profitability in the next 2 years.

With that. I would like to turn the call back over to Yuri for the closing remarks. Before we take your questions.

Jurgi Camblong: Thank you, George. I'm proud of what the team achieved this quarter. We continued our strong start to 2025 by delivering total revenue growth of 16% and 20% revenue growth, excluding biopharma. Forward-looking indicators remain strong across the business as we signed 35 new customers in the quarter, and the average contract size is higher than ever. We announced a second straight quarter of major new biopharma contracts, and the recent signing of the major multi-year AI partnership with AstraZeneca lays a solid foundation for future growth. On top of this, we continue to be laser-focused on cost, improving adjusted gross margins, and reducing our cash burn. Thank you to the SOPHiA team, customers, partners, and investors for joining us on our mission to transform patient care by expanding access to data-driven medicine globally. Operator, you may now open the line for questions.

Thank you, George.

I'm proud of what the team achieved this quarter. We continued our strong start to 2025 by delivering total revenue growth of 16% and 20% revenue growth, excluding by your former.

For looking indicators, remain strong across the business. As we signed 35, new customers in the quarter, and average contract size is higher than ever.

We announced a second straight quarter of major renewable contracts.

And the recent signing of the major multi-year AI partnership with AstraZeneca plays a solid foundation for future growth.

On top of this, we continue to be laser focused on cost improving adjusted, gross margins and reducing our cash work.

Thank you to the Sophia team customers partners and investors for joining us on our mission to transform Patient Care by expanding access to data, given medicine globally, comparator, you may now open the line for questions.

Ross Muken: Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press the star key followed by the number 1 on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star key followed by the number 2. If you are using a speaker phone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Subbu Nambi of Guggenheim Securities. Your line is open.

Thank you, ladies and gentlemen, we will now begin the question and answer session.

Should you have a question please? Press the star key followed by the number 1 on your touchtone phone, you will hear a prompt that your hand has been raised. Should you wish to decline from the polling process? Please press the star key followed by the number 2, if you are using a speaker-phone, please lift the handset. Before pressing any Keys 1 moment, please for your first question.

Your first question comes from subu Nami of Guggenheim. Your line is open.

Subbu Nambi: Hey, guys. Thank you for taking my questions. Good morning. Thank you for clarifying that the AstraZeneca partnership will be more of a full-year 2026 driver. Any additional color you could provide on what these milestones look like, what needs to be done to achieve these milestones?

For taking my questions, good morning. Um thank you for clarifying that the a partnership will be more of a full year. 26 driver, any additional color. You could provide on what these Milestones look like. What needs to be done to achieve these milestones.

Jurgi Camblong: Yes, thank you, and good morning, Subbu. So over the last quarters, we've been highlighting that the clinical performance was good and growing, and we had highlighted that we're expecting biopharma to improve with the signing of some important deals. Today, we announced a deal with AstraZeneca on our multimodal AI factory capabilities. I will leave now to Ross, Subbu, to give you a bit more color on how this should play out in terms of traction, as well as deliveries, and so on.

George Cardoza: Thanks, Subbu. As Jurgi mentioned, this is obviously a very material deal for us and one that really, I would say, validates the strategy that we sort of put forth roughly 12 months ago as we started to, I would say, narrow our focus within the biopharma market. It is the largest deal in our history. It is multi-year, and so it is going to be nicely, I would say, additive for us in terms of the business. In terms of milestones, there is a series of deliverables over the next, I would say, several quarters and into a multi-year period. Again, these contracts typically work where you have a portion that ultimately is recognized based on delivery of certain items and then achievement of certain outcomes.

Yes, sir. Thank you and good morning subu. So indeed over the last quarter. We've been highlighting that the clinical, uh, you know, performance was was good and growing. And, uh, we had highlighted that we're expecting as well, bio format to, to improve with the signing of some important deals. Uh today we announcing big deal uh with Astro on um our Milky model, AI Factory capabilities and I will leave now to watch to to to give you a bit more color on how this should play out in terms of traction as well as deliveries and so on. Uh thanks you too. So uh as jirgi mentioned, you know, this is obviously a very material uh deal for us and and 1 that really, I would say validates uh the strategy that we sort of put forth roughly 12 months ago. As as we started to I would say narrow our Focus within the, the biofarma market. Uh, it's the largest deal in our history, right? Uh, it's multi

George Cardoza: We feel quite confident that we will be able to achieve the full value of this contract and be able to deliver for AstraZeneca in a timely manner and really deliver something of value to them. Ultimately, for us, this is a really exciting validation. We hope it is the first of more of this type, but obviously, we are very focused at the moment of being able to deliver what we have now set forth and really prove out the value of the AI factories and our technology, as well as the uniqueness of our global network.

And really prove out the value of the AI factories and our technology as well as the uniqueness of our Global Network.

Subbu Nambi: Pretty big win, guys. Congratulations on that. In non-sequitur, understandably, a lot of focus of this call has been on oncology, but I wanted to focus on rare disease for a moment. A competitor acquired a decentralized rare disease data and secondary analysis provider recently and intends to use that acquisition to grow their presence in the U.S. market. Could you tell us a bit more about your adoption of rare disease applications outside the U.S. and what these markets look like and what the competitive landscape is today?

Jurgi Camblong: Yes, thank you, Subbu. First, indeed, about 80% of our business is in oncology, including hereditary cancer, and 20% is in rare and hereditary disorders, which I think is the area you refer to. On that one, we are seeing great progress. We are growing this quarter 20% year on year on rare and hereditary disorders. There is more and more demand on exomes and possibly on genomes around the world due to the fact that on one side, hospitals and labs have themselves equipped their own labs with superior technologies with more depth capabilities, so more sequencing volume capabilities. In the meantime, science is progressing. Recently, there were as well some, I think, discussions in the U.S. whether pharmacogenetics possibly might be reimbursed and scaled as an example. So definitively, a lot of demand in rare and hereditary disorders.

Um, pretty big Windows. Congratulations on that. Um, a non-security understandably, a lot of focus of this call has been on oncology, but I wanted to focus on rare disease for a moment. A competitor acquired, a decentralized rare disease data, and secondary analysis provider recently. And intends to use that acquisition to grow their presence in O US market. Could you tell us a bit more about your adoption of Rarities, these applications outside the US and what these markets look like? And what the competitive landscape is today

Yes sir. Thank you so much. So first indeed, right about 80% of our businesses in oncology including um a regulatory cancer and 20% is in Rarity disorders, which I think is the this area you refer to. So on that 1, we're seeing a great progress. So we're growing at this quarter 20% year on year on the primary Disorder. So it's more and more Demand on exams and possibly on genomes around the world. Due to the fact that on 1 side, uh, hospitals and Labs have themselves, uh, equipped. Um, the their own Labs with a superior Technologies with more depth capabilities, so more sequencing, volume capabilities and in the meantime science,

Jurgi Camblong: In that vein, if you like, we are very well positioned as well because these types of questions and problems tend to be complex. By enabling labs and hospitals to produce exomes, genomes locally, leverage on our AI capabilities, we basically enable them to solve very complex indications and diagnostics for this class of diseases. So I would say for us, all good news. Ross, I do not know if you would like to add anything else regarding the market dynamics.

George Cardoza: Sure. First, maybe Subbu. Obviously, we've operated in a highly competitive market for a very long time, and our win rates continue to move up. We're pushing 35% right now on our win rate in many categories, and I would actually argue rare and inherited is probably higher. Generally, we feel quite good about how we are positioned and confident with any entrance, new or old, that our product portfolio, particularly with our enhanced exome product, is poised for really substantial growth. Maybe just to drive a fine point on that, you can see this quarter there's a spike in sales and marketing expenditures. A lot of that is due to significant bookings outperformance. If you peel back that onion a little bit more, a lot of that is coming with our enhanced exome product on top of liquid biopsy and solid tumors.

Progressing. Right and recently they were as well. So I think discussions in the US whether pharmacogenetics possibly maybe reimburse and scale as an example. So definitively a lot of demand in right narrative disorders and in that vein if you like um who are very well positioned as well, because this type of questions and problems tend to be complex. And so by enabling um, labs and hospitals to produce exams genomes locally leverage on our AI capabilities. We basically enable them to solve very complex, um, indications and diagnostics for this class of of, um, of diseases. So, I would say for us all good news, Ross. I don't know if you would like to to add anything else regarding the, the market dynamics, sure. So, uh, first, maybe, s, obviously, we've operated in a highly competitive market for a very long time, and uh, our win rates, continue to move up. You know, we're pushing, uh, 30.

35% right now, on our, our win rate in, in many categories, and I would actually already rare and inherit. It's probably higher. Uh, so generally, uh, we feel quite good about how we are positioned, uh, and, and confident, uh, with any uh, entrance new or, or old that our product portfolio, particularly with our enhanced EXO product, uh, is poised for, uh, really substantial growth and maybe just to sort of drive a fine point on that. So you can see this quarter, there's a spike in sales and marketing.

George Cardoza: We are seeing, particularly with enhanced exomes, significant adoption, particularly in the U.S., but also in the Mideast and Europe. We're extremely excited about that product, and we think it's just getting started.

Uh expenditures. A lot of that is due to significant, bookings outperformance. Uh and if you you peel back that onion a little bit more. A lot of that is coming with our enhanced EXO product on top of liquid biopsy and, and solid tumors. So we are seeing particularly with enhanced exomes, significant adoption, particularly in the US, uh, but also in Middle East and and Europe. And so, uh, we're extremely excited about that product and we think it's just getting started.

Subbu Nambi: Perfect. Thank you so much, guys.

Perfect, thank you so much, guys.

Jurgi Camblong: Thank you.

Thank you.

Ross Muken: Your next question comes from Honor McNamara of RBC Capital Markets. Your line is open.

Connor McNamara: Great. Thanks, guys, for taking my question. Congrats on a very solid quarter. Just one financial question, then more on MSK-ACCESS. The decision to draw the revolver, the $35 million, should we be looking into that? Are you expecting a step up in expenses, either what you expect, the work you expect to do with AstraZeneca, or is that just a normal course of business? We will start there.

Your next question comes from honor Makara of RBC Capital markets. Your line is open.

Great. Uh, thanks guys, for taking the question, congrats on on a very solid quarter, um, just uh, 1 Financial question and and then more on um msk access just the decision to draw the um,

George Cardoza: Yes, George. Yeah, no, certainly. Hi, Connor. Yeah, I think the decision was made to draw it at the very end of Q2. It moved our cash balance up to over $90, almost $95 million. So I think we are pleased with that, and I think that gives us the liquidity we need, certainly for the near term. So I think the decision was made to put that on the balance sheet and just to strengthen our cash position. We are seeing our growth accelerate, and we are seeing it across the clinical side. We are seeing it now on the pharma side as well in the out years. So it is an exciting time, and we wanted to make sure that our cash balance was solid to accommodate that growth.

The revolver, the 35 million. Should we be looking into that? Is it? You're, you're expecting to step up in expenses. Either you know what, what you expect at the work. You expect to do with Astro, or is that just normal course of business. We'll start there.

Connor McNamara: Okay, got it. Thanks. On MSK-ACCESS, what are the adoption trends in the United States from time to sign to, you know, how quickly they get up and running? Is that tracking kind of in line with what you thought, or is there any update you could give us on what the trend line is like from signing to revenue recognition?

Yeah, I know, certainly has honor. Yeah, no, I think the the decision was was made to draw it at at the very end of the second quarter. Uh, you know, it's moved our cash balance up to, to over 90 90 almost 95 million. So I think we're we're pleased with that and I I think that gives us the liquidity we need uh certainly for the near term. So uh I think the decision was made to put that on the balance sheet and and just to strengthen our cash position, we are seeing our growth accelerate and and you know we're seeing it across the clinical side. We're seeing it now on on the pharmacy as well in the out years. So uh, it's an exciting time and we wanted to make sure that our our cash balance was was solid to accommodate that growth.

what are the adoption Trends in the United States from time to time to um you know how quickly they get up and running and does that is that tracking kind of in line with what you thought or is there any update you could give us on on what the um

What the trend line is like from from signing to revenue recognition.

Jurgi Camblong: Yes, thank you for that question. Indeed, Connor, liquid biopsy, I think, now is clinically becoming extremely relevant. For many, many years, the utility would be more sophisticated. Now the publications highlighted the importance of liquid biopsy, and patients understand the utility even more. It is definitively overall something that is triggering a lot of interest in the U.S., but outside the U.S. as well. Just to highlight some numbers, since the beginning of the, well, up to the year-to-date, we have signed a number of new customers. This quarter, we signed 11 new customers on MSK-ACCESS. Today, we have 50 customers on MSK-ACCESS. This is basically one of the marquee applications in the space of liquid biopsy. We grew year on year our liquid biopsy revenue of about 900%. Definitive, those numbers are highlighting a lot of demand in the market, specifically in the U.S. in terms of implementation.

Or yes, thank you for that question. Uh, indeed Connor liquid biopsy. I think um now is um clinically becoming extremely relevant, right? And so for many many years um the utility would be more sophisticated. Uh and now the publication highlighted the importance of liquid biopsy and patients understand usability, utility even more. And so definitively is overall something that is triggering a lot of interest in the US but outside the US as well. Um and just to to highlight some numbers. So since the beginning of the well up to year, uh, year to date, uh, We've signed a number of new, uh, customers this quarter. We signed 11 new customers on msk access. Today, we have 50 customers on msk access. So, this is basically 1 of the market key applications in the space of liquid biopsy. We grew um, year on year, our liquid biopsy,

Jurgi Camblong: Ross, do you want to give Connor some more information on where we stand and what we see?

George Cardoza: Sure. So, the first cohort of customers we saw in the U.S., which was roughly 12-plus months ago, are starting to come online. We are excited about that ramp and think, again, this product will continue to be a major growth driver and do so at scale over the upcoming quarter. So, we are quite optimistic. I would also say when you look at the 50-plus logos we have in the pipeline currently, there are some really exciting ones in the U.S., and they range from a spectrum of small and mid-sized academics to the very largest labs. I would say our positioning in the North America market is one we remain quite constructive on and think it will be obviously a multi-year journey as it is quite a competitive market.

See uh, Revenue, uh, of about 900%. So definitively, those numbers are highlighting a lot of demand in the market, specifically in the US and in terms of implementation. So Ross, do you want to to give Corners some more information or where we stand and what? We see sure. So, you know, the, uh, first cohort of customers reside in the US, which was roughly 12 plus months ago are starting to come online. Uh, we're excited about that ramp and, and think again, uh, this product will continue to be a major growth driver and, and do so at scale, uh, over the, the upcoming quarters. So we're we're quite optimistic. I would also say, when you look at the 50 plus, uh, logos, we have in the pipeline currently. Uh, there's some really exciting ones in the US and they range from a, a spectrum of small and mid-size academics to the very largest labs. And so, uh, I would say our positioning in the North America Market uh, is 1. We were

George Cardoza: I think in the end, we feel like we will win our fair share here, and it is a superior product to many aspects of what exists today, given the tumor normal concept. We think it as well fits in with where biopharma is trying to push liquid biopsy within the global scheme. Overall, I feel very good about our positioning.

Jurgi Camblong: Beyond MSK-ACCESS in the U.S., your question is very important because the market is more centralized. This quarter, we grew 19% year on year. I think that highlights our technology is very well adapted to help customers in the U.S., whether those are academic centers or central labs. Today, we announced a number of central labs that have started using our technology in the U.S.

Remain quite constructive on and, and think it will be a multi-year journey as it's quite a competitive market. But uh, you know, I think in the end we feel like we will win our fair share here. And it's a, a superior product, uh, to many aspects of of what exists today, given the 2 more normal concept. Uh, and we think it it is well, fits in, uh, with where biofarma is trying to push liquid biopsy within the global scheme. And so overall feel very good about our positioning

And maybe going to be in the Mesa access in the US. Uh, your question is, is very important because the the market is more centralized, uh, this quarter, we grew 19% year on year, right? So, which I think highlights that our technology is very, uh, well adapted, uh, to help customers in the US, whether those are academic centers or Central Labs, today we announce where a number of central apps that have started using our technology in the US.

Connor McNamara: Great. Thanks, guys. Appreciate that.

Right. Thanks guys. Appreciate that.

Jurgi Camblong: Thank you.

Thank you.

Ross Muken: Your next question comes from Dan Brennan of TD Cowen. Please go ahead.

Your next, your next question comes from Dan Brennan of TD Cowen, please go ahead.

Connor McNamara: Perfect. Thanks for the questions and congrats on the quarter. Maybe just going back to the AstraZeneca deal, it sounds like you guys are not going to size the aggregate size of the contract. Was that from a disclosure agreement with AstraZeneca, or do you prefer not to disclose it, or just any more color on the size since it sounds like a very exciting deal and you guys would kind of showcase what you are doing?

Perfect. Thanks for the questions and, you know, congrats on the quarter. Um, maybe just going back to the azdl. So it sounds like

George Cardoza: Yeah, maybe Dan being Swiss, we tend to be a touch more conservative than some of our peers. But I would say, just to drive home, this is a very, I would say, on several fronts, material contract for us and one that will contribute again. I will let George Cardoza maybe give color on what he is going for guidance for this year in 2026. But we are incredibly excited about this opportunity. We think it will bring as well with it other abilities to showcase our AI factories and multimodal and multi-omic capabilities and one that, again, you will be hearing us talk about for quite a bit as contributing to our overall performance in a significant way. Yeah, no. We do expect to see revenue in the fourth quarter. I mean, I think it will still be less than a million in the fourth quarter.

you guys are not going to size. The aggregate size of the contract was that from a disclosure agreement with, as or just you prefer not to disclose it or does any more color on the side since it sounds like a very exciting deal. You guys uh would kind of showcase what you're doing.

Yeah, maybe, uh, Dan being Swiss, we tend to be a touch, more conservative than, than some, uh, of our our peers. But I would say, you know, just to, to drive home. This is a very, I would say, on several fronts material, contract for us, uh, and 1, that will contribute again and and I'll let George maybe uh, give color on what you call it for guidance for this year and the 26th, but you know, we're incredibly excited.

About this opportunity, we think it will bring as well with it. Uh, other abilities to showcase our AI factories and multimodal and multi-omic capabilities. And uh, 1 that again, you'll be hearing us talk about for quite a bit as contributing to our overall, uh, performance in a significant way.

George Cardoza: But as Ross Muken said, we are mostly excited about 2026. I think this really is going to give us a significant lift in 2026. You have heard, I mean, our clinical growth this quarter was 20%, and pharma, unfortunately, dragged the total down. Next year, we are actually looking at pharma being an accelerator to that. So I think that is why we are excited about this. Certainly, in the near term, it will be on the lower end. But certainly, we are very optimistic about the long-term prospects for this. Really, we are viewing this as something that I think it is going to be terrific for AstraZeneca, but this could even be used for other pharmas as well. I think this is really just the beginning.

And Pharma, unfortunately dragged the total down. And, and next year, we're actually looking at Pharma being an accelerator to that. So I think that's why we're excited about this and and certainly, you know, in the near term. It'll it'll be on the lower end but uh, certainly we're very optimistic about the long-term prospects for this and, and really, you know, we're viewing this as as something that I think, you know, is going to be terrific for as but, uh, you know, this could even be used for for other Farmers as well. And I think this is really just the beginning.

Connor McNamara: Great. Thanks for that. Maybe just a second one, just on ASPs and the backlog. You talked a lot about the initial contribution. I think you talked about a doubling of ASPs that AstraZeneca is enabling. How do we think about the benefit of ASPs as we look out, say, beyond 2025, and how might we be able to translate that into top-line growth? Since you talked a lot about bookings, just wondering if you can disclose any color on book-to-bill or what the backlog looks like. I heard funnel and backlog, just trying to get a sense of what visibility is.

Jurgi Camblong: Yes, thank you, Dan. First, we will start on ASPs. As you know, we are being paid on consumption for patient data. In our space, because of the innovation and the science, one basically produces more data per patient. More data, whether it is more genes, whether it is more data modalities, whether it is more depth, means that probably they are going to further valorize the data compute over the data production. Hence why, over time, you should expect that our ASP continues to grow, maybe slightly, given the complexity of the data that our customers are producing and hence the need of sophisticated AI algorithms.

Great, thanks for that. And then maybe just a second 1 just on ASP, on the backlog. You talked a lot about, you know, the, you know, the initial contribution, I think you talked about, like, a doubling of asps that as is enabling. So how do we think about the benefit of asps as we look out? Say, Beyond 2025, and how might we be able to translate that in the Top Line growth? And then since you talked a lot about bookings? Just wondering if you can disclose any color on book to Bill or what the backlog looks like. I heard funnel and backlog just trying to get a sense of what visibility is.

Yeah, thank you Dan. So first, we start on the ESP says, you know, uh, we're being paid on on consumption right for for patients data, and uh, in our space because of the Innovation and the science, uh, 1, uh 1, um, basically produces more data, uh per patient. So more data whether it's more genes, whether it's more data modalities where whether it's more depth, uh, means, uh, that probably, there are going to further valorize the data compute over the data production and

George Cardoza: Yeah, and Dan, one of the other key points we were making was also around ACVs, right, so average contract value. We are seeing much bigger deals in markets. Some of that is coming from North America, as well as the U.K., Mideast, et cetera. That means both higher-priced products, more complex products, but also much larger institutions. That general mix is driving a real acceleration in bookings. As we look at, again, we do not necessarily track book-to-bill, but I would say at the moment, we have a significant double-digit million backlog that will come online. Again, we try to give you color around implementations, and that continues to accelerate. We expect that to accelerate in the upcoming periods, and we are incredibly focused on pushing what has been great commercial momentum, right, on the pipeline and booking side into the revenue over the next 6 to 12 months.

hence, why over time you should expect indeed that our ASP continues to to grow, maybe slightly given the complexity of the data that our customers are producing and hence the need of sophisticated AI algorithms,

George Cardoza: Again, some of our products and some of our customers, just given the complexity for them of getting to reimbursement, et cetera, and getting launched, can take up to 12 months, right, to drive revenue. We are obviously working to shorten those time frames. The main point we are trying to drive home is all of the activity we are seeing commercially right now should lead to our return to more normalized growth rates over the near term. Just to make one other fine point, that doubling of ACV and the improvement of ASPs does not include any impact from AstraZeneca, right? This is happening independent of itself in the clinical business within our hospital customer base and lab customer base. On top of that, we are also seeing improvement and stabilization and reacceleration in the pharma business.

Yeah. And Dan, 1 of the other key points we were making was also around acvs. Right? So average contract value, so we're seeing much bigger deals in markets. Some of that is coming from, uh, North America as well as the UK Middle East Etc. And so, uh, that means both higher price products, more complex products but also much larger institutions. And so that, you know, General mix is, is driving a real acceleration in in bookings. And so as we look at, you know, again, we don't we don't necessarily track book to Bill, uh, but I would say at the moment, you know, we have significant double-digit million backlog, uh, that will come online. Uh, and, you know, again, we try to give you color around implementations and that continues to accelerate. We expect that to accelerate in the upcoming periods. And we're incredibly focused on pushing what has been great commercial momentum right on the pipeline and booking side into the revenue, uh, over the next, uh, 6 to 12 months. So again, some of

Our products, and some of our customers just given the complexity uh for them of of getting to reimbursement, Etc. And getting launched can take up to 12 months, right? To drive Revenue, uh, and we're obviously working to shorten those time frames. But, you know, the main point, we're trying to drive home is all of the, uh, activity we're seeing commercially right now. Should lead to our return to more normalized growth rates, uh, over the near term. And just, uh, make 1 other fine point, that doubling of ACV, and the Improvement of as asps does not include any impact from as, right? So, this is happening independent of itself in the clinical business, within our Hospital, customer base and Lab customer base. And then on top of that, we're seeing Improvement and stabilization and re acceleration and the Pharma business

Connor McNamara: Perfect. Okay, thank you. I'll get back in the queue.

Terrific. Okay. Thank you. I'll get back in the queue.

George Cardoza: Thank you, Dan.

Thank you, then.

Ross Muken: Our next question comes from Bill Bonello of Craig-Hallum Capital Group LLC. Your line is now open.

Bill Bonello: Hey, guys. Thanks a lot. A couple of different topics here. First, also want to go back to the AstraZeneca contract. Is it exclusively or predominantly milestone payments, or is there also some baseline payment that you're receiving independent of the milestones?

Your next question comes from William Belleau of Craig Holland. Your line is now open.

George Cardoza: There is a mixed bill, right? These are typically, and you obviously know this well coming from what you did prior, these tend to have sort of a mix of kind of base and then some bullets. It will cause at times a bit of lumpiness on top of our normal, I would say, recurring revenue. Ultimately, in terms of the ability for us to recognize and achieve this, we feel incredibly confident that we will be able to see the full value of the contract pull through.

Hey guys, thanks a lot. Couple of different. Um, topics here. First also want to go back to the, uh, as uh contract. So is it exclusively or predominantly Milestone payments or is there also some, um, you know, Baseline payment that you're receiving independent of the milestones?

Bill Bonello: That's great. Sorry. Are the milestones all within your control, or is there any element dependent on AstraZeneca's success developing some kind of a product?

Yeah, there's a mix Bill. Uh, right. So, uh, these are typically in, you know, you obviously know this, well, coming from what you did prior, uh, you know, these tend to have sort of a, a mix of kind of base and then, and then some bullets. And so, uh, you know, it will cause at times a bit of, uh, I would say, uh, lumpiness on top of our normal. I would say, uh, recurring Revenue, But ultimately, in terms of the, uh, ability for us to, uh, recognized and achieve this, we feel incredibly confident that uh, we'll be able to uh, see the full value of the contract, pull through

All right. Sorry yeah.

George Cardoza: This is not an at-risk deal, just to be clear. When we are talking about milestones, we are talking about deliverables. Think about, we are building algorithms, we are deploying algorithms. We are bringing back unique multimodal data sets, et cetera. In that, think about there just being the normal staging within a project. This is not something where we are taking clinical risk or some other aspect. It is much more suited with generally their overall development of their pipeline. It is not tied to a specific drug, et cetera.

We are the Milestones, they're all within your control. Um or is Ella any element dependent on you know A's success developing some kind of a product?

Bill Bonello: Okay. Anything that would come out of this that could be a product that generates ongoing revenue for SOPHiA?

George Cardoza: I would say, Bill Bonello, this is probably too early to talk about this in that way. But certainly, as we think about these sorts of deals in general, our ultimate goal is to bring unique tools to our clinical customers, right, to enable them to better identify patients or to better treat patients and prescribe therapy. So closing that flywheel loop of clinical and pharma is obviously the end result we are seeking. But these are early-stage engagements. Obviously, we are all seeking to bring that view of data-driven medicine closer to the patient, but it does not happen overnight. So that would be a separate engagement relative to this. But ultimately, that is where with AstraZeneca, as well as any pharma, we are trying to drive this to close that flywheel to improve patient outcomes.

Yeah, this is not an at risk deal, just to be clear, right? So, this is when we're talking about Milestones, we're talking about deliverables, right? So think about, you know, we're building algorithms, we're deploying algorithms, right? We're bringing back uh, unique multimodal data sets uh Etc. And so in that uh think about there just being the normal staging within a project but this is not something where we are taking clinical risk or or some other aspect. It's uh it's much more suited with generally, their overall development of their Pipeline and so it's not tied to sort of a specific drug Etc, okay. And and the the anything that would come out of this that could be uh product that generates ongoing revenue for Sophia

Yeah, I would say Bill. This is probably too early to, to talk about this in that way. Uh, but certainly, as we think about these sorts of deals in general, you know, our ultimate goal is to bring you bring unique tools to our clinical customers, right? To enable them to better identify patients or to better treat patients uh and prescribed therapy. And so closing that flywheel Loop of clinical and Pharma is is obviously the, uh, the end result where

Jurgi Camblong: Overall, I would highlight that, as we had mentioned earlier, and even in Q1 earnings, the clinical business is growing nicely, and we continue to accelerate. This quarter, we grew 20% year on year. The bookings have been excellent, the number of implementations as well. Now having biopharma that starts to be fixed again gives us a lot of hope to further accelerate our growth at some point.

Bill Bonello: Sure. Then just thank you. One last thing on AstraZeneca, and if I could, one follow-up question. I know I am asking a lot. You know, I get your reluctance to size it. I just, you know, if I think about 4% drag on revenue this quarter, that is about $2.6 million. I just want to make sure people are not running away with this thing. We are not talking $10 million or something like that. It sounds like maybe we are talking $3 million-ish or something more in that ballpark. Just anything you can give so that patients do not get ahead of themselves.

Seeking but, you know, these are early stage, uh, engagements. And obviously, we're all seeking to kind of bring that view of data-driven medicine, closer to the patient, but it it doesn't happen overnight. So, uh, that would be a separate uh, a separate engagement relative to this. But ultimately that's where with with a as well as any farmer, we're trying to drive this to close that flywheel to improve patient outcomes. But overall, I would, I would highlight that, you know, as a we we we had the mentioned earlier and even in 21 learning the clinical business is, uh, growing, uh, nicely. And we continue to accelerate this quarter, we grew, uh, 20% year on year. Uh, the bookings have been excellent, uh, the number of implementation as well and now, having biofarma that start to be fixed again, gives us a lot of Hope to further accelerate, uh, our growth at some point.

Sure. And then, just just thank you. Uh, 1 1 last thing on a and if I could 1 follow up question. I know I'm asking a lot. But um, you know, I I get your reluctance to size it, I just

George Cardoza: Yeah, Bill, we said it is material. I will leave it at that. We are not going to size it. I would say in general, there is obviously, as you mentioned, different flavors of types of pharma relationships, and this is a large one. Again, without putting a specific number on it, I would think about it more for us as helping to give you now, as George mentioned, visibility to the back half and some of the back half ramp, as well as giving you confidence that obviously we have returned to more normalized growth rates, and we are still looking for ideally further acceleration in the clinical business. Now you have something that is additive to that. I do not think anyone needs to go and sort of add a significant number to the out years.

You know, if I think about 4% drag on Revenue this quarter, that's about 2.6 million, I just want to make sure, you know, people aren't running away with this thing. I mean, we're not talking 10 million dollars or something like that. It, it sounds like maybe. We're talking, 3 million dollars ish or something more in that ballpark. I mean, just anything you can give so that estimates don't get ahead of themselves.

George Cardoza: I think obviously for a while, we have been quite confident of getting back to normalized growth rates, and this is another proof point.

Bill Bonello: Perfect. Just the last thing, has nothing to do with AstraZeneca, but can you talk to us about the terms of the perceptive financing?

Yeah, Bill we said it's material, um, so I'll leave it at that. Uh, you know, we're we're not, we're not going to size it. So, uh, but I would say in general, uh, there's obviously, as you mentioned, different flavors of of types of Pharma, uh, uh relationships. And this is, this is a large 1. So, uh, again, without putting a specific number on it, I would think about it more for us is helping to give you now, as George mentioned visibility to the back half and some of the back half ramp, right, as well as giving you confidence that obviously, we've returned to more normalized growth rates and we're still looking for ideally further acceleration in the clinical business. Now you have something that's additive to that. Uh, so no, I I don't, I don't think anyone needs to go, uh, you know, uh, and and sort of add a significant, uh, number to the, uh, the out years. But I think obviously, for a while, we've been quite confident of getting back to normalized growth rates. And this is another proof point.

Perfect. And then just the last thing has nothing to do with as but can can you just talk to us about the terms of the perceptive financing?

George Cardoza: It is the, well, it is not LIBOR anymore. It is SOFR, I think, the secured overnight financing rate plus 6%. So that is the standard term about this. They are also, and this is disclosed in our SEC documents, they received 200,000 warrants for the first tranche and an additional 200,000 warrants for the second tranche. But you know, Perceptive has been very good to work with, and I think we have a very positive relationship with them, and we certainly look to continue and maybe even expand that relationship.

Bill Bonello: Okay, that sounds great. Thank you.

Yeah, it's the well, it's not liable anymore. It's so far, I think the secured overnight financing rate, uh, plus 6%. So, that is the standard term about this, uh, and they're also, and this is disclosed in our SEC documents. Uh, they received 200,000 warrants, uh, for the first tranche and an additional 200,000 warrants for the, uh, the second tranche. But, uh, you know, percept is been very good to work with. And, uh, you know, I think we have a very positive relationship with them and, uh, we certainly look to continue, uh, and maybe even expand that relationship.

George Cardoza: Thank you, Bid.

Okay. That that sounds great. Thank you.

Thank you, be.

Ross Muken: Your next question comes from Mark Massaro of BTIG. Your line is now open.

The row of btig, your line is now open.

Vivian: Hi, guys. This is Vivian on for Mark. Thanks for taking the questions. I will just keep it to one. Just on the implementation timelines, I think you have previously talked about that being in the range of six to nine months. You also talked about having a double-digit revenue backlog. Just any steps you have taken to nudge closer to six months? I think you have talked about different sequencer types in the past being a headwind here. So just what are some of the puts it takes to be go lifetimes? Thanks.

Lines. Um, I think you've previously talked about that being, uh, in the range of 6, to 9 months. Um, you also talked about having to double-digit, um, Revenue backlog. Um, just any steps you've taken, uh, to nudge closer to 6 months. Um, I think you've talked about different sequencer types in the past, um, being it has been here. So just what are some of the puts? It takes to the go lifetimes. Thanks.

George Cardoza: No, it's a very good question. It's obviously an area we're incredibly focused on. Just to give you a flavor, when I was talking about sort of near 12 months, that's typically where we have been seeing the MSK-ACCESS implementations. That's not indicative of sort of the broader portfolio. That's really just because of the, I would say, novel nature of liquid, as well as the need to have the tumor normal match pairs, right, when you're doing your validation work, which are harder samples to acquire than is typical for some organizations. But I would say overall, we've spent a lot of time and effort, and we'll continue to put in and utilize both improved processes and automation and AI to kind of enable us to engage with our customers better and speed the time to market of some of these solutions.

George Cardoza: To give you an example, we have a very important exome client that we signed in the first quarter that will come online late summer, right? So it was a late Q1 signing, and they're already going to be generating revenue in the August time period. So we do have examples now on the, I would say, faster end, particularly when it's one of our more standard products that we've deployed many times on a sequencer that we're obviously quite accustomed to. Again, I would say overall, often, this sometimes does depend on the customer, but we are compressing those timelines, and it will ease that path to revenue, and it's something we remain incredibly focused on. Because as you mentioned, it's exciting to have the forward visibility of the backlog, but obviously, we'd rather see that pull through, right?

Uh, know it's a very good question. It's obviously an area where we're incredibly focused on. And just to give you a flavor, you know, when I was talking about sort of near 12 months, that's typically where we have been seeing the msk access, uh, implementations. That's not indicative of sort of the broader portfolio. And that's really just because of the, I would say, novel nature of liquid as well as the need to have the toll tumor normal match pairs, right? When you're doing your validation work, which are harder samples to acquire, than is typical for some organizations. But I would say, overall, we've spent a lot of time and effort and will continue to put in and utilize both, uh, improved processes and Automation, and AI to kind of, uh, enable us to engage with our customers better and and and and, and speed the time to Market of some of these solutions. To give you an example. We have a uh, a very important uh, EXO client uh, that we signed in the

George Cardoza: As that happens, obviously, you will see that come through on the revenue line.

First quarter, that will come online uh, late summer, right? So, uh, uh, it was a late q1 signing and and they're already going to be generating Revenue, uh, in in the August time period. So, uh, we do have examples now on the, the, you know, I would say faster end. Uh, particularly when it's 1 of our more standard products that we've deployed many times, uh, on a sequencer that we're, uh, you know, honestly quite uh, quite accustomed to. So, uh, again I would say overall, uh, often, you know, this sometimes does depend on the customer, but we are compressing those timelines and it will ease that path to revenue. And it's something we remain incredibly focused on. Because, as you mentioned, you know, it's exciting to have the forward visibility of the backlog. But obviously we'd rather see that pull through, right? Uh, and so as that happens obviously uh, you will see that uh, come through on the revenue line.

Vivian: Perfect. Thanks for taking the question.

George Cardoza: Thank you.

Thank you.

Ross Muken: There are no further questions at this time. I will now turn the call over to Jurgi Camblong. Please continue.

There are no further questions at this time. I will now turn the call over to your GUI camp-long. Please continue.

Jurgi Camblong: Thank you all for joining us today in our Q2 2025 earnings call. Thank you as well to the SOPHiA employees for their dedication to our mission, to our partners, customers, and investors. Looking forward to updating you in November for our Q3 performance. Have a good day.

Thank you all for joining us today in, in our Q2 2025 earning calls. So thank you as well to the Sophia employees for their dedication to our mission, uh, to our partners, customers and investors, and looking forward to update you in November for our Q3 performance,

Have a good day.

Ross Muken: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.