A. Operating Results For a comparison of our results of operations and KPIs for the years ended December 31, 2024 and 2023, see “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Results of Operations” in our Annual Report on Form 20-F filed with the SEC on March 5, 2025. Overview We are a cloud-native software technology company in the healthcare space dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. We purposefully built a cloud-native software platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. Our platform standardizes, computes and analyzes digital health data and is used across decentralized locations to break down data silos. This enables healthcare institutions to share knowledge and experiences and to build a collective intelligence. We envision a future in which all clinical diagnostic test data is channeled through a decentralized analytics platform that will provide insights powered by large real-world data sets and AI. We believe that a decentralized platform is the most powerful and effective solution to create the largest network, leverage data, and bring the benefits of data-driven medicine to customers and patients globally. In doing so, we can both support and benefit from growth across the healthcare ecosystem. In 2014, we launched the first application of our platform to analyze NGS data for cancer diagnosis. We offer a broad range of applications used by healthcare providers, clinical and life sciences research laboratories, and biopharmaceutical companies for precision medicine across oncology, rare diseases, infectious diseases, cardiology, neurology, metabolism, and other disease areas. In 2019, we launched our solution for radiomics data that enables longitudinal monitoring of cancer patients and tumor progression throughout their disease journey. In 2022, we unveiled SOPHiA CarePath, our multimodal solution that integrates the capabilities of our genomics and radiomics solutions with additional modalities to further enable clinical decision-making. Today, we believe that our SOPHiA DDM Platform, commercialized under the name “SOPHiA DDM,” is one of the most widely used decentralized analytics platforms globally for clinical genomics. As of December 31, 2025, we served more than 993 hospital, laboratory, and biopharma customers globally through our SOPHiA DDM Platform and related solutions, applications, products, and services, and our SOPHiA DDM Platform has supported the analysis of approximately 2.3 million genomic profiles and has been utilized in clinical trials and research projects discussed in more than 2,712 peer-reviewed publications. As of December 31, 2025, we had 528 core genomics SOPHiA DDM Platform customers (defined as the number of customers who generated 96 Table of Contents revenue through usage of our bundle access, dry lab, and integrated access models during the specified time period, which, in this case, is the twelve months ended December 31, 2025). We commercialize our SOPHiA DDM Platform and related solutions, applications, products, and services as RUO and CE-IVD applications and products. In the United States, our applications and products are labeled and sold for research use only. Because such products are not intended for use in clinical practice in diagnostics and the applications and products cannot include clinical or diagnostic claims, the FDA regulations require that RUO applications and products be labeled “For Research Use Only. Not for use in diagnostic procedures.” In the EU, we have self-certified our applications and products without the intervention of a notified body in order to affix the CE marking. Our clinical customers primarily include academic and non-academic hospitals and reference and specialty laboratories. Our biopharma customers primarily include pharmaceutical companies, biotechnology companies, and CROs. Our customers are able to access our SOPHiA DDM Platforms through three primary access models: dry lab access, bundle access, and integrated access. As of December 31, 2025, we operated a global direct sales team of more than 105 field-based commercial representatives across 60 countries in all four of our major regions of operations (Europe, the Middle East, and Africa (“EMEA”); North America (“NORAM”); Latin America (“LATAM”); and Asia-Pacific (“APAC”)) and further supplemented our direct sales team with distributors in 50 countries. For the years ended December 31, 2025 and 2024, we generated $77.3 million and $65.2 million in revenue, respectively, representing 19% year-over-year growth. We have funded our operations primarily through equity financings that have generated $499.4 million in gross proceeds as of December 31, 2025, through revenue generated from the sale of access to our SOPHiA DDM Platform and related licenses, solutions, applications, products, and services, and through debt financings. As of December 31, 2025, we had cash and cash equivalents of $70.3 million. Since our inception, we have incurred net losses, which have been significant in recent periods. For the years ended December 31, 2025 and 2024, our net losses were $79.0 million and $62.5 million, respectively. As of December 31, 2025, we had an accumulated deficit of $519.3 million. We expect to continue to incur net losses for the foreseeable future as we continue to devote substantial resources to (i) research and development, in particular to further expand the features, applications and data modalities of our SOPHiA DDM Platform in order to accommodate multimodal data analytics capabilities across a wide range of disease areas, (ii) expanding our selling and marketing efforts for our SOPHiA DDM Platform and related solutions, applications, products, and services, in particular to drive new customer adoption with clinical customers and biopharmaceutical companies, (iii) establishing and maintaining relationships with our collaborators and customers across the healthcare system, and (iv) obtaining regulatory clearance or approval to offer our applications and products as IVD applications and products for diagnostic use. Our ability to achieve profitability depends on the successful commercialization and further development of our SOPHiA DDM Platform and related solutions, applications, products, and services. Recent Developments FDA LDT Final Rule In April 2025, the U.S. District Court for the Eastern District of Texas, Association for Molecular Pathology, et al. v. U.S. Food and Drug Administration, et al., vacated the FDA’s Laboratory Developed Tests (“LDT”) Final Rule, which was scheduled to be phased in over four years and would have redefined LDTs as in vitro diagnostics, thereby requiring FDA clearance for such tests. Under the LDT Final Rule, the FDA would have mandated premarket review for LDTs and required compliance with other FDA regulations in line with the established medical device guidelines. These requirements would have increased both the cost and time required to commercialize an LDT, reducing the financial incentives for laboratories to develop such tests. This, in turn, could have led to decreased demand for our RUO applications and products, until such time as our tests obtained FDA approval. The FDA had a window to appeal the decision and declined to do so in June 2025, making the court’s decision final. In September 2025, the FDA formally vacated the LDT Final Rule, reinstating the prior regulatory text. As a result, oversight of LDTs will remain under the Clinical Laboratory Improvement Amendments (CLIA) program rather than under the FDA medical device regulations. Guardant Health Litigation Guardant filed suit against us in the U.K. in July 2025, and in the EU at the Unified Patent Court in Paris in August 2025, alleging that our MSK-Access liquid biopsy test infringes certain of their patents and seeking remedies, including unspecified monetary damages and injunctive relief. On January 23, 2026, the UPC Paris 97 Table of Contents Local Division issued a final order rejecting Guardant's application for provisional measures and ordered Guardant to pay an interim award of costs of EUR 400,000. The UPC rejected Guardant's application under three asserted patents (EP 3591073, EP 3443066, and EP 3766986), and Guardant withdrew its request regarding a fourth patent (EP 3470533). On February 9, 2026, Guardant filed an appeal challenging the UPC's finding that EP 3443066 was more likely than not invalid. On February 17, 2026, the UPC Paris Local Division issued a procedural order setting a payment deadline of March 10, 2026, for Guardant to pay the EUR 400,000 interim costs award. On February 18, 2026, the Court of Appeal rejected Guardant's application for suspensive effect of the interim costs award and refused to reduce the EUR 400,000 amount. The Paris Local Division's payment deadline of March 10, 2026, and the original interim award amount of EUR 400,000 therefore stand. Based on the Court of Appeal's rejection of suspensive effect and the Paris Local Division's payment deadline, we expect to receive payment of the EUR 400,000 interim costs award by March 10, 2026. Separately, on February 12, 2026, we filed an Application for a cost decision under Rules 150 and 151 of the Rules of Procedure at the Court of First Instance, seeking costs exceeding EUR 600,000 incurred during the first instance proceedings. The UPC Paris Local Division has set a deadline of March 2, 2026, for Guardant to respond to our application for full costs, which includes the remaining EUR 200,000 in additional legal fees and approximately EUR 7,000 in travel costs. These additional costs may be decided as part of the appeal proceedings or in separate cost proceedings, but we will continue to pursue reimbursement of our full legal costs. The U.K. proceedings remain pending. We intend to vigorously defend ourselves against these claims. These pending cases resulted in higher legal expenses in the second half of 2025 of $2.4 million, and we could incur further costs and divert the attention of our management and technical personnel in defending ourselves against these claims. Furthermore, Guardant may in the future be able to obtain injunctive or other relief, which effectively could block our ability to further develop, commercialize, market or sell products or services in certain jurisdictions, such as the U.K. and EU. Any adverse ruling or perception of an adverse ruling in defending ourselves against these claims could have an adverse impact on our business, financial condition or results of operations. See “Risk Factors—Risks Related to Our Intellectual Property—We are, and we may in the future be, subject to claims against us alleging that we are infringing, misappropriating or otherwise violating the intellectual property rights of third parties, the outcome of which would be uncertain and could have a material adverse effect on our business.” SEC Definition of FPI In June 2025, the U.S. Securities and Exchange Commission (“SEC”) issued a request for public comment on whether the definition of a Foreign Private Issuer (“FPI”) should be amended. The comment period was open for 90 days and closed in early September 2025. The SEC is now reviewing public comments in order to decide on any potential rule changes. The SEC’s request for comment outlines several potential changes to the FPI definition. These include, among other things, a possible requirement that FPIs be listed on a securities exchange in their home jurisdiction. While SOPHiA GENETICS is headquartered in Rolle, Switzerland, we are not currently listed on a Swiss or European exchange. The SEC has also raised the possibility of implementing a foreign trading volume requirement, which may not be within our control. Additionally, the SEC discussed the potential for a mutual recognition framework based on international cooperation agreements. However, there is no assurance that such an approach will be adopted or that Switzerland would qualify under any mutual recognition criteria. At this time, the outcome of the SEC’s review is uncertain. Any changes to the FPI definition could impact our status and result in additional compliance obligations or costs, including the potential need to seek listings on additional exchanges. We are actively monitoring developments in this area and will assess and respond to any changes that may affect our FPI status. 98 Table of Contents Factors Affecting Our Performance We believe that our financial performance has primarily been driven by, and in the foreseeable future will continue to be primarily driven by, the factors discussed below. While these factors present significant opportunities for our business, they also pose challenges that we must successfully address in order to sustain our growth and improve the results of our operations. Our ability to successfully address these challenges is subject to various risks and uncertainties described elsewhere in this prospectus, particularly in the section titled “Item 3. Key Information—D. Risk Factors.” Customer Acquisition and Analysis Volume We principally derive revenue from the use of our SOPHiA DDM Platform by our customers as well as the sales of related licenses, solutions, applications, products, and services. Our analysis volume is dependent on both the acquisition of new customers as well as usage volume from our existing customers. We employ a “land and expand” commercial model focused on winning new customers and then driving subsequent recurring utilization of our solutions by those acquired customers. Once we secure a customer, we use our direct sales force to build further engagement and help that customer increase its testing operations. For example, we may initially support a customer in setting up its NGS testing operations for hereditary cancer screening, including operational support through our set-up programs, also referred to as MaxCare. Once the customer is fully onboarded on our SOPHiA DDM Platform, it is then comparatively easier to deploy additional germline testing solutions as well as somatic oncology testing solutions, creating synergies across the offerings and a unified workflow. We also target incremental users within each customer, for example, additional clinicians within a provider across expanded departments such as radiology or pathology. We expect our analysis volume to increase and new customer acquisitions to accelerate as we further expand the features, applications, and data modalities of our SOPHiA DDM Platform; expand our presence into new geographies; and further penetrate existing geographies, particularly geographies that represent largely under-penetrated opportunities, such as North America and East Asia. We intend to significantly invest in the development of our SOPHiA DDM Platform to accommodate multimodal data analytics capabilities across a wide range of disease areas, including under-penetrated disease areas such as cardiology and neurology, which we believe will allow us to attract new customers and increase usage of our SOPHiA DDM Platform within our existing customer base. While we believe that our existing sales force can support our near-term growth plans, to continue expanding our presence into new geographies and further penetrate existing geographies, we will continue to opportunistically invest in our direct sales force to further scale the size of our network in under-penetrated geographies such as Japan and North America, form additional collaborations with reference and specialty laboratories, and collaborate with collaborators and distributors in selected geographies outside of North America. Revenue Mix We derive revenue from the use of our SOPHiA DDM Platform by our customers as well as the sales of related licenses, solutions, applications, products, and services. Our clinical customers can access our platform using three different models: dry lab access, bundle access, and integrated access. In the dry lab access model, our customers use the testing instruments and consumables of their choice and our SOPHiA DDM Platform and algorithms for variant detection and identification. In the bundle access model, we bundle DNA enrichment kits with our analytics solution to provide customers the ability to perform end-to-end workflows. In the integrated access model, our customers have their samples processed and sequenced through select SOPHiA DDM Platform collaborators within our clinical network and access their data through our SOPHiA DDM Platform. Our biopharma customers can access our SOPHiA DDM Platform through the same three models, but they may also have access to data generated through our SOPHiA DDM Platform in the form of custom reports and analytics. We have experienced fluctuations in how our clinical customers access our SOPHiA DDM Platform across the three access models. Specifically, certain customers may transition from one access model to another over time. For example, we have observed a trend with certain customers being onboarded onto our platform through the dry lab access model, but, over time, as our relationships with them grow, these customers transition to the bundle access model as customers trust us to curate a set of instruments and consumable products to help increase the accuracy of the analysis they generate. This trend is one illustration of our “land and expand” commercial model, as bundle access is typically a higher revenue-generating model compared to 99 Table of Contents dry lab access based on the incremental value from the sale of consumables and instruments as well as higher platform usage on average for bundle access customers. Certain types of customers are also more likely to access our SOPHiA DDM Platform using one access model compared to other customers. For example, customers who are unable or do not wish to conduct sequencing locally are inclined to use the integrated access model. These customers have historically represented a small percentage of our customer base relative to customers that use the bundle access and dry lab access models. We expect that the revenue contribution from each of the three access models will vary depending on our customer base and the rate of new customer acquisition. We also derive revenue from the sale of licenses for our Alamut suite of genomics mutations interpretation software. While we view Alamut as a complementary add-on to our SOPHiA DDM Platform, there are a number of Alamut users who currently are not customers of our SOPHiA DDM Platform. We expect that revenue contribution from Alamut will continue to vary based on the number of stand-alone Alamut users as well as our ability to cross-sell our SOPHiA DDM Platform to Alamut users and vice versa. Seasonality We typically experience lower usage of our SOPHiA DDM Platform in the first and third quarters compared to the second and fourth quarters, which tend to be seasonally stronger. We typically see relatively lower usage in the first quarter as customers across our global network return from their holidays and new customers are still being onboarded onto our platform. Meanwhile, we believe the relatively lower usage in the third quarter is due to the seasonal slowdown at our customers’ European facilities attributable to vacations and European holiday schedules. As we expand in the North American market, we expect that we will be subject to somewhat lower seasonal variations in our usage per customer. We typically experience the highest usage of our SOPHiA DDM Platform in the fourth quarter as we bring new customers and new applications and products with existing customers into routine usage over the course of the year. Biopharma Expansion To date, the majority of our revenue is generated through our clinical customers, including academic and non-academic hospitals, and reference and specialty laboratories. However, we see potential for our biopharma business to comprise a more significant portion of our revenues. We began commercializing our biopharma application, product, and service offerings in 2019. While we have the ability to offer a robust package of pre- and post-market solutions to our biopharma customers across the Discovery, Development, and Deployment stages through a broad set of solutions, including SOPHiA Trial Match, SOPHiA Insights, SOPHiA CDx, and SOPHiA Awareness, our biopharma business is still nascent with the initial focus on establishing pilot programs with large pharmaceutical and biotech companies to build customer trust and raise awareness about our offerings in a manner similar to the “land and expand” strategy we employ for our clinical business. We intend to leverage our platform and database to drive adoption by biopharmaceutical companies through our sales force focused on biopharma opportunities across the value chain. In addition, we plan to develop new offerings for biopharma as we expand the number and type of new applications and data modalities on our platform. SOPHiA CarePath In 2022, we unveiled SOPHiA CarePath, a new multimodal module on our SOPHiA DDM Platform powered by our artificial intelligence and machine learning algorithms. The module will allow healthcare practitioners to visualize data across multiple modalities (including genomic, radiomic, clinical, and biological) for individual patients in a longitudinal manner and derive additional insights through cohort design and comparison. SOPHiA CarePath has already been deployed as part of our Digital Twins tool, a breakthrough research technology that creates dynamic, virtual representations of individual patients to simulate potential outcomes and help oncologists make better treatment decisions. Strategic Acquisitions and Collaborations We vigilantly monitor the market for potential investments to expand or add key technologies to our offerings that we believe will improve our platform’s ability to address our customers’ needs and catalyze the commercialization of new applications, products, and services. Our investment strategy could take the form of a business acquisition, asset acquisition, or strategic licensing of patented technology, all of which may affect our future financial results. For example, our acquisition of Interactive Biosoftware (“IBS”) in 2018 expanded the functionality of our SOPHiA DDM Platform. The Alamut suite of genomics mutation interpretation software is connected to our SOPHiA DDM Platform and gives our customers advanced analytics capabilities for a deeper 100 Table of Contents and more informed genomic data interpretation. We view Alamut as a complement to our SOPHiA DDM Platform and expect to be able to accelerate our growth by cross-selling our SOPHiA DDM Platform to Alamut users and vice versa. To complement our investment strategy, we have also collaborated, and intend to form additional collaborations, with other product providers in the ecosystem to bundle our solutions to provide differentiated end-to-end solutions. We currently collaborate with testing kit companies, testing hardware providers, software analytics companies, and diagnostic companies operating with a centralized model. For example, we formed collaborations with companies including Twist, IDT, and Agilent to create an integrated solution using our analytics platform and their library preparation products, including DNA enrichment kits. We continue to regularly evaluate our role in the genomics and radiomics value chain in order to provide both our existing and new customers with a comprehensive product offering, enhance our overall market and competitive position and expand into adjacent untapped markets and new geographies. In September 2025 we announced a partnership with Myriad Genetics to develop a companion diagnostic (“CDx”) liquid biopsy assay. The partnership will leverage Myriad’s laboratory capabilities and SOPHiA’s global network to provide pharmaceutical firms with an innovative approach to global companion diagnostics. Myriad will lead regulatory submissions in the United States and SOPHiA will pursue regulatory approvals outside of the United States. Both firms will collaborate across development activities to provide a compelling solution to pharmaceutical firms pursuing CDx programs. Myriad has also publically stated that they plan on adopting the SOPHiA DDM platform for use in their clinical lab testing. Research and Development A significant aspect of our business is our continued investment in research and development, including new features, new applications, new data modalities, and new services. We plan to continue investing in scientific innovation to bring innovative, high-impact content to our customers through regular updates of our platform. Exchange Rates We operate internationally and a majority of our revenues, expenses, assets, liabilities and cash flows are denominated in currencies other than our presentation currency, the U.S. dollar, and the functional currency of SOPHiA GENETICS SA, the Swiss franc. Our revenues are generated primarily in the U.S. dollar, the euro and Swiss franc and, to a lesser extent, British pound, Australian dollar, Brazilian real, Turkish lira, and Canadian dollar depending on our customers’ geographic location. Our expenses are incurred primarily in the U.S. dollar, the euro and Swiss franc and, to a lesser extent, British pound, Australian dollar, and Brazilian real. We expect that a part of our revenues and expenses will continue to be denominated in currencies other than the U.S. dollar. Therefore, part of the fluctuations in our operating results in any period may result from changes in exchange rates. We currently do not use any financial instruments to manage our exchange rate risks, which we have been partially mitigating by matching costs in the same foreign currency. Key Operating Performance Indicators We regularly monitor a number of key operating performance indicators and metrics to evaluate our business, measure our performance, identify key operating trends, and formulate financial projections and strategic plans. We believe that the following metrics are representative of our current business, but the metrics we use to measure our performance could change as our business continues to evolve. Our key operating performance indicators primarily focus on metrics related to our SOPHiA DDM Platform metrics, as platform revenue comprises the majority of our revenues. As used in this section, the term “customer” refers to any customer who accesses our SOPHiA DDM Platform through the dry lab and bundle access models. We exclude from this definition any customers accessing our SOPHiA DDM Platform using the integrated business model because they tend to use our platform in an ad hoc manner compared to our dry lab and bundle access customers who typically do so in a recurring fashion, generate an immaterial portion of our revenue and analysis volume, and constitute a small part of our customer base. We also exclude from this definition customers who only use Alamut through our SOPHiA DDM Platform. 101 Table of Contents Platform Analysis Volume Quarterly Platform Analysis Volume from Q1 2018 to Q4 2025* The following table shows platform analysis volume for the year ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 SOPHiA DDM Platform analysis volume* 391,698 352,628 *The figures in the bar chart and table above have been adjusted to exclude analyses conducted during the period but for which chargebacks were issued or other adjustments were made to customers after the period. We do not believe that such adjustments are material to the periods presented. Platform analysis volume represents a key business metric that reflects our overall business performance, as we generate revenue on a pay-per-analysis basis. Platform analysis volume measures the number of analyses that generated revenue to us and were conducted by our Core Genomics Customers. Analysis volume is a direct function of the number of active customers and usage rates across our customer base during a specified time period. While our platform analysis volume is a major driver of our revenue growth, other factors, including application and product pricing, access model used, and customer size mix, also affect our revenue. Because of that, our revenue may increase in periods in which our analysis volume decreases and vice versa. Analysis volume increased to 391,698 in the year ended December 31, 2025 from 352,628 in the year ended December 31, 2024. We observed an increase in chargeable analysis volume of 11% for the year ended December 31, 2025, as compared to the year ended December 31, 2024. This increase is primarily attributable to increased usage from our existing customers as well as new customers onboarded onto our platform, with outsized growth in our Hematological Oncology (“HemOnc”) applications and primarily related to strong volume growth in EMEA and NORAM. The increase in analyses was partially offset by a decline in analyses in LATAM. We increase prices annually or as necessary throughout the year. While platform analysis volume is a primary driver of our overall revenue, there are other important factors that also contribute to our revenue performance, including access model mix, Alamut license sales, biopharma service revenue and workflow equipment and services revenue. These factors also contributed to year-over-year growth in our overall revenue in 2025. 102 Table of Contents Total Core Genomics Customers The following table shows the number of Core Genomics Customers as of December 31, 2025 and 2024: As of December 31, 2025 2024 Core Genomics Customers 528 472 We track the number of our Core Genomics Customers, defined as the number of customers who performed revenue generating analyses on our SOPHiA DDM Platform during the specified time period, as a key measure of our ability to generate recurring revenue from our install base. We exclude from this number any customers who do not utilize our SOPHiA DDM Platform through either dry lab access or a bundle sale, such as customers who only use integrated access, Alamut and our biopharma customers. This number also excludes customers without any usage of our SOPHiA DDM Platform over the past twelve months and customers who have executed agreements with us but have not yet completed any revenue generating analyses, including customers that are in the process of being onboarded onto our SOPHiA DDM Platform. During 2025 we refined our definition of Core Genomic Customers to align our treatment of discrete customers within a larger entity with our new customer acquisition strategy. The impact on the 2024 customer count definition change was less than 1%. Core Genomics Customers increased to 528 as of December 31, 2025 from 472 as of December 31, 2024. The increase is primarily attributable to our continued customer acquisition momentum by our commercial team over the course of the intervening period net of churn. Net Dollar Retention (NDR) The following table shows the net dollar retention as of December 31, 2025 and 2024: As of December 31, 2025 2024 Net dollar retention (NDR) 115 % 104 % We track net dollar retention for our SOPHiA DDM Platform, Alamut and recurring services, including revenue from dry lab, bundle access, and integrated access customers as a measure of our ability to grow the revenue generated through our “land and expand” strategy net of revenue churn, which we define as the revenues we have lost from customers who access our platform and have not generated revenue over the past twelve months in that period. To calculate net dollar retention, we first specify a measurement period consisting of the trailing two-year period from our fiscal period end. Next, we define a measurement cohort consisting of customers who have generated recurring revenue during the first 12 months of the measurement period. We then calculate our net dollar retention as the ratio between the U.S. dollar amount of revenue generated from this cohort in the second year of the measurement period and the U.S. dollar amount of revenue generated in the first year. For customers that did not contribute a full year of revenue in the base period, their revenue is annualized to provide a more representative baseline. Any customer in the cohort that did not use our platform in the second year are included in the calculation as having contributed zero revenue in the second year. Integrated accounts are included in NDR because they generate recurring revenue, even if they do not meet the criteria for customer count. During 2025 we refined our net dollar retention by aligning our customer cohorts with the core genomic customer counts, annualizing revenue for customers that did not contribute a full year of revenue in the base period, incorporating revenue generated from Alamut and recurring services and our calculation of revenue churn by utilizing actual revenue for the trailing 12 months rather than annualized revenues. The impact on the 2024 NDR amount as a result of the definition change was less than 2%. Net dollar retention increased to 115% as of December 31, 2025 from 104% as of December 31, 2024. The year-over-year increase in revenue growth momentum is attributable to growth across our existing customer base as well as higher average selling prices of our products. The annualized churn rate was 0.1%, which was lower than 2024 as a result of the relative size of lost customers. 103 Table of Contents Components of Results of Operations Revenue We generate revenue from goods and services rendered to our clinical and biopharma customers. Our clinical customers include academic and non-academic hospitals (including comprehensive cancer centers and children’s hospitals), and reference and specialty laboratories. Our biopharma customers include companies along the full biopharma value chain. We group our solutions that we offer our customers into two primary revenue streams: our SOPHiA DDM Platform and workflow equipment and services. SOPHiA DDM Platform revenue comprises the bulk of our revenue and includes goods and services related to the use of our SOPHiA DDM Platform, including our clinical genomics solutions, which span across a broad range of unique applications for analyzing genomic data; our Alamut suite of genomics mutation interpretation software, which gives our clinical customers advanced analytics capabilities for a deeper and more informed genomic data interpretation; and biopharma applications designed to help customers solve bottlenecks across the biopharma value chain, including discovery, clinical development and commercialization; and the sale of third-party instruments and consumables to our bundle access customers. For clinical customers, our primary pricing strategy for our SOPHiA DDM Platform is a pay-per-use model, in which customers access our platform free of charge but pay for each use of our platform. Pricing varies based on our customer mix, as customers require differing levels of customization. For Alamut, our primary pricing strategy is a licensing model, in which customers access our platform for a contracted price. For biopharma customers, we are continuing to refine our pricing strategy since we launched our initial applications for the biopharma market in 2019. We recognize revenue when our customer obtains control of promised goods or services, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. For revenue generated from our SOPHiA DDM Platform customers, we recognize revenue from analyses as the analyses are conducted and revenue from bundled instruments and consumables at the point of delivery. For revenue generated from Alamut licenses, we recognize revenue over the course of the license period. Payments from our customers are typically between 30 and 60 days with payment terms extended up to 180 days from the invoice date. Although we have a diverse range of customers, for the years ended December 31, 2025 and December 31, 2024, we generated $8.7 million and $8.2 million, respectively, of revenue from one of our largest distributors. Workflow equipment and services revenue includes all revenue from the sale of materials and services that do not form part of a contract for the provision of platform services rendered primarily to clinical customers. These include the provision of set-up programs and training and the sale of equipment that are not linked to the use of the platform, such as automation equipment. Set-up programs and training are typically combined with a customer’s first order prior to the customer being onboarded onto our SOPHiA DDM Platform. Revenue from services is generally recognized when the services are performed. Revenue from materials are recognized when control of the goods is transferred to the customer, generally at the time of delivery. We have demonstrated continued revenue growth during 2025 and 2024 as a result of the continued development of our platform and technology and further penetration of the market. Revenue performance is reflective of the strong foundation that has been built, focused around clinical and biopharma customers. This category of revenue also includes the revenue from the sale of DNA sequencing automation equipment accounted for under IFRS 16, Leases (“IFRS 16”), leasing, and the fees charged for the maintenance of this equipment. Cost of Revenue Cost of revenue comprises costs directly incurred in earning revenue, including computational and storage-related costs and fees paid to hosting providers, manufacturing costs, materials and consumables, the cost of equipment leased out under finance leases, personnel-related expenses, and amortization of capitalized software development costs. Capitalized software development costs are amortized using the straight-line method over an estimated life of five years. While we currently expect increased investments to accelerate growth, we also expect to realize increased efficiencies and economies of scale and undertake cost containment measures to reduce the cost of using cloud infrastructure. Over time, we expect our gross profit margin to increase as we broaden our customer base, increase customer engagement, expand our cloud infrastructure, and negotiate additional arrangements 104 Table of Contents with service providers, including computational and storage-related costs and fees paid to hosting providers. However, in the near term, we expect that our gross profit margin may be adversely impacted by increased computational and storage-related costs and fees as we have purchased, and may be required to continue to purchase, increased capacity at less favorable rates in order to address increased demand for our SOPHiA DDM Platform and related solutions, applications, products, and services. Our cost of revenue as a percentage of revenue may fluctuate from period to period depending on the interplay of the various components of cost of revenue. Our cost of revenue as a percentage of revenue is impacted by the sale of higher value testing such as MSK-Access that have a higher price point and margin profile, and thus a lower cost-of-revenue. Certain markets such as India, Turkey and LATAM have lower price points and thus a lower margin profile and expansions in those markets may increase our costs as a percentage of revenue. Operating Expenses Operating expenses consist of research and development, selling and marketing, general and administrative, and other operating income (expense), net. Research and Development Costs Research and development costs consist of personnel and related expenses for technology, application, and product development, depreciation and amortization, laboratory supplies, consulting services, computational and data storage fees paid to hosting providers related to research and development, and allocated overhead costs. These costs are stated net of government grants for research and development and innovation received as tax credits and net of capitalized software development costs. In the long term, we expect our research and development costs to increase in absolute dollars, but not necessarily as a percentage of revenue, while we continue to develop, refine, and optimize our platform, technology, applications, products, and services as we seek to expand the features, applications, and data modalities of our SOPHiA DDM Platform, broaden our customer base, and increase customer engagement to drive revenue growth. We expect research and development costs, inclusive of capitalized software development, to continue to comprise one of the largest components of our overall operating expenses. Our research and development costs as a percentage of revenue may fluctuate from period to period due to the timing and extent of such expenses. Selling and Marketing Costs Selling and marketing costs consist of personnel and related expenses for the employees of our sales and marketing organization, costs of communications materials that are produced to generate greater awareness and utilization of our platform among our customers, costs of third-party market research, costs related to transportation and distribution of our products and allocated overhead costs, and commissions to sales employees. In the short term, we expect our selling and marketing costs to increase in absolute dollars and as a percentage of revenue as we seek to broaden our customer base and increase customer engagement to drive revenue growth and as we hire additional sales personnel and related account management and sales support personnel to properly service our growing customer base. However, in the long term, we expect our selling and marketing costs to gradually and modestly decrease as a percentage of revenue. Our selling and marketing costs as a percentage of revenue may fluctuate from period to period due to the timing and extent of such expenses. General and Administrative Costs General and administrative costs consist of personnel and related expenses for our executive, accounting and finance, legal, quality, support and human resources functions, depreciation and amortization, professional services fees incurred by these functions, general corporate costs and allocated overhead costs, which include occupancy costs and information technology costs. In the short term, we expect that our general and administrative costs may vary in absolute dollars and as a percentage of revenue in line with our business needs. However, in the long term, we expect our general and administrative costs to gradually and modestly decrease as a percentage of revenue. 105 Table of Contents Other Operating Income (Expense), Net Other operating income (expense), net consists of gains and losses related to the disposal of tangible assets, write-offs of intangible assets and other operating income and expenses. We cannot predict the amount of other operating income (expense), net for future periods. Interest Income Interest income consists of interest income earned on cash and cash equivalents, term deposits and short-term investments, and lease receivables. Interest Expense Interest expense consists of interest expense incurred on lease liabilities and loans, which includes interest on commercial borrowings. We currently do not use any financial instruments to manage our interest risk exposure. Fair Value Adjustments on Warrant Obligations Fair value adjustments on warrant obligations consists of any gains or losses from changes in fair value to our warrant obligations. Foreign Exchange (Losses) Gains, net Foreign exchange losses (gains), net consists of foreign exchange realized and unrealized gains and losses arising principally from intercompany receivable balances in the parent company denominated in U.S. Dollar, whose functional currency is the Swiss franc. Taxation We are subject to corporate taxation in Switzerland and other jurisdictions in which we operate, in particular, the United States, France, the U.K., Italy, Brazil, Germany and Australia, where our wholly owned subsidiaries are incorporated. Pursuant to a written agreement with the Swiss government, we were exempted from corporate taxes (including capital tax) in Switzerland until December 31, 2022. Effective as of January 1, 2023, we are subject to ordinary cantonal and Swiss federal corporate taxes, including capital tax. We are entitled under Swiss laws to carryforward any losses incurred for a period of seven years, which could be used to offset future taxable income. As of December 31, 2025, we had total tax loss carryforwards totaling $448.2 million with $444.0 million of which no deferred tax asset has been recorded as they are expected to expire prior to being utilized to offset future incomes. We currently have tax loss carryforwards in Switzerland, the U.S., the U.K., and Brazil. Of our loss carryforwards, $440.3 million are in Switzerland and can be carried forward through future periods that will expire at various dates between January 1, 2026 and December 31, 2032. There is no certainty that we will make sufficient profits to be able to utilize these tax loss carryforwards in full during the allotted time periods. 106 Table of Contents Results of Operations The following table summarizes our results of operations for the years ended December 31, 2025 and 2024: Year ended December 31, Change 2025 2024 $ % Revenue $ 77,271 $ 65,173 $ 12,098 19 % Cost of revenue (25,194) (21,236) (3,958) 19 % Gross profit 52,077 43,937 8,140 19 % Research and development costs (34,216) (34,366) 150 — % Selling and marketing costs (36,118) (29,369) (6,749) 23 % General and administrative costs (52,563) (46,953) (5,610) 12 % Other operating (loss) income, net (86) 183 (269) (147) % Operating loss (70,906) (66,568) (4,338) 7 % Interest income 1,872 3,362 (1,490) (44) % Interest expense (4,554) (1,913) (2,641) (138) % Fair value adjustments on warrant obligations (497) 370 (867) (234) % Foreign exchange gains (losses), net (3,402) 3,479 (6,881) (198) % Loss before income taxes (77,487) (61,270) (16,217) 26 % Income tax expense (1,512) (1,223) (289) 24 % Loss for the year $ (78,999) $ (62,493) $ (16,506) 26 % Revenue The following table presents revenue by stream for the years ended December 31, 2025 and 2024: Year ended December 31, Change (Amounts in USD thousands, except %) 2025 2024 $ % SOPHiA DDM Platform $ 74,915 $ 63,546 $ 11,369 18 % Workflow equipment and services 2,356 1,627 729 45 % Total revenue $ 77,271 $ 65,173 $ 12,098 19 % Revenue was $77.3 million for the year ended December 31, 2025, compared to $65.2 million for the year ended December 31, 2024. This increase was primarily attributable to an increase in SOPHiA DDM Platform revenue as well as $2.0 million in foreign exchange impact over the course of the year related to the appreciation in the exchange rates between key transactional currencies, particularly the euro, and our reporting currency, the U.S. dollar. SOPHiA DDM Platform revenue was $74.9 million for the year ended December 31, 2025 compared to $63.5 million for the year ended December 31, 2024. This increase was primarily attributable to an increase in analysis volume, particularly across our Oncology application portfolio driven by growth in our HemOnc application, partially offset by a slight decrease in biopharma revenue of $0.7 million. The increase in analysis volume was related to strong volume growth in EMEA and NORAM. Workflow equipment and services revenue was $2.4 million for the year ended December 31, 2025, compared to $1.6 million for the year ended December 31, 2024. This increase was primarily attributable to an increase in workflow automation equipment installations. 107 Table of Contents Cost of Revenue The following table presents cost of revenue, gross profit, and gross margin for the years ended December 31, 2025 and 2024: Year ended December 31, Change (Amounts in USD thousands, except %) 2025 2024 $ % Cost of revenue $ (25,194) $ (21,236) $ (3,958) 19 % Gross profit $ 52,077 $ 43,937 $ 8,140 19 % Gross margin 67 % 67 % Cost of revenue was $25.2 million for the year ended December 31, 2025, compared to $21.2 million for the year ended December 31, 2024. The increase was primarily driven by a $2.1 million increase in material costs, including automation equipment and related services associated with higher volumes, a $1.7 million increase in amortization of capitalized development costs as software development projects were put into service and a $1.1 million increase in maintenance and customer support costs due to a higher volume of update releases. These increases were mitigated by ongoing efforts to optimize compute costs and partially offset by a $0.8 million decrease in inventory reserve and inventory scrap. The gross margin was 67% for the year ended December 31, 2025, remaining stable as compared to the year ended December 31, 2024. Operating Expenses The following table presents research and development costs, selling and marketing costs, general and administrative costs, and other operating income, net for the years ended December 31, 2025 and 2024: (Amounts in USD thousands, except %) Year ended December 31, Change 2025 2024 $ % Research and development costs $ (34,216) $ (34,366) $ 150 — % Selling and marketing costs (36,118) (29,369) (6,749) 23 % General and administrative costs (52,563) (46,953) (5,610) 12 % Other operating (expenses)/income, net (86) 183 (269) (147) % Total operating expenses $ (122,983) $ (110,505) $ (12,478) 11 % Research and Development Costs Research and development costs were $34.2 million for the year ended December 31, 2025, compared to $34.4 million for the year ended December 31, 2024. The decrease was primarily driven by $1.2 million of resources that were shifted to support implementation and maintenance activities and $0.5 million related to an R&D grant in France we received. These decreases were offset by a $0.3 million increase in employee-related expenses, including share-based compensation, which includes a $1.1 million foreign exchange impact on salary expenses and a $0.5 million increase in social charges on equity-based compensation as a result of appreciation in the price of our stock. Selling and Marketing Costs Selling and marketing costs were $36.1 million for the year ended December 31, 2025, compared to $29.4 million for the year ended December 31, 2024. The increase was primarily attributable to a $5.0 million increase in employee-related expenses, including commissions and share-based compensation, as we expanded our sales force, and includes a $0.4 million foreign exchange impact on salary expense and a $0.2 million increase in social charges on equity-based compensation as a result of appreciation in the price of our ordinary shares. Our commissions expenses have increased as a result of a larger team on commissions-based programs and the improved overall performance of our sales team. Additionally, there was a $0.6 million increase in marketing spend related to targeted campaigns aimed at accelerating penetration in key markets, a $0.4 million increase in travel and expense, and a $1.0 million increase in shipping costs related to the higher sales volumes. 108 Table of Contents General and Administrative Costs General and administrative costs were $52.6 million for the year ended December 31, 2025, compared to $47.0 million for the year ended December 31, 2024. This increase was primarily attributable to a $1.2 million increase in employee-related expenses, including share-based compensation, which includes a $0.8 million foreign exchange impact on salary expense and a $0.8 million increase in social charges on equity-based compensation as a result of appreciation in the price of our stock. Additional increases related to $2.4 million in legal expenses related to the Guardant Health litigation and $0.9 million in costs related to our shelf registration statements and an at-the-market offering program which allows for sales of our stock. In connection with the Guardant Health litigation, as discussed in "Recent Developments—Guardant Health Litigation," we expect to receive reimbursement of a €400,000 interim costs award by March 10, 2026, and are pursuing reimbursement of additional legal costs exceeding EUR 200,000 through separate cost proceedings at the Unified Patent Court. Other Operating Income, net Other operating income, net was an expense of $0.1 million for the year ended December 31, 2025, compared to $0.2 million income for the year ended December 31, 2024 mainly attributable to $0.1 million of non-recoverable VAT costs in 2025. In 2024 the income related to a one-time supplier credit note. Interest Income The following table presents interest income for the years ended December 31, 2025 and 2024: Year ended December 31, Change (Amounts in USD thousands, except %) 2025 2024 $ % Interest income $ 1,872 $ 3,362 $ (1,490) (44) % Interest income was $1.9 million for the year ended December 31, 2025, compared to $3.4 million for the year ended December 31, 2024. The decrease was primarily driven by a $1.5 million decrease in the interest earned on cash held in short term deposits and money market funds due to lower cash balances than in the prior year and decreasing market interest rates. Interest Expense The following table presents interest expense for the years ended December 31, 2025 and 2024: Year ended December 31, Change (Amounts in USD thousands, except %) 2025 2024 $ % Interest expense $ (4,554) $ (1,913) $ (2,641) 138 % Interest expense was $4.6 million for the year ended December 31, 2025, compared to $1.9 million for the year ended December 31, 2024. The increase of $2.6 million was primarily driven by the additional borrowings under the Perceptive Loan Agreement in connection with the drawdown of a second tranche of $35.0 million principal amount of term loans in 2025 as well as a full year of interest on the first tranche of $15.0 million. Fair Value Adjustments on Warrant Obligations The following table presents the fair value adjustments on warrant obligations for the years ended December 31, 2025 and 2024: 109 Table of Contents Year ended December 31, Change (Amounts in USD thousands, except %) 2025 2024 $ % Fair value adjustments on warrant obligations $ (497) $ 370 $ (867) 100 % Fair value adjustments on warrant obligations had a loss of $0.5 million for the year ended December 31, 2025 compared to a gain of $0.4 million for the year ended December 31, 2024. The change is due to the fair value of the warrants increasing as a result of an increase in the price of our underlying shares in 2025 as well as an increase in the number of warrants outstanding. Foreign Exchange Gains (Losses), net The following table presents the foreign exchange gains (losses), net for the years ended December 31, 2025 and 2024: Year ended December 31, Change (Amounts in USD thousands, except %) 2025 2024 $ % Foreign exchange (losses) / gains, net $ (3,402) $ 3,479 $ (6,881) (198) % Foreign exchange losses were $3.4 million for the year ended December 31, 2025, compared to foreign exchange gains of $3.5 million for the year ended December 31, 2024. This increase in foreign exchange losses was primarily driven by the revaluation of intercompany foreign currency receivable balances into SOPHiA GENETICS SA’s functional currency of the Swiss franc, partially offset by $0.4 million in realized net foreign exchange gains. Unrealized gains and losses do not constitute a cash impact until the related transactions are settled. Income Tax Expense The following table presents income tax expense for the years ended December 31, 2025 and 2024: Year ended December 31, Change (Amounts in USD thousands, except %) 2025 2024 $ % Income tax expense $ (1,512) $ (1,223) $ (289) 24 % Income tax expense was $1.5 million for the year ended December 31, 2025, compared to $1.2 million for the year ended December 31, 2024. This tax expense is primarily attributed to current and deferred tax expenses recorded in France, the U.S., and Italy, and, to a lesser extent, to the provision for uncertain tax positions, the majority of which were non-cash in 2025 and 2024. Off-Balance Sheet Arrangements and Commitments We have a minimum purchase agreement with Microsoft related to computational and hosting-related costs. As part of the agreement (as amended on October 10, 2025), we have a total minimum commitment of approximately $80.9 million from the period beginning November 1, 2022 through October 31, 2029 and an additional one-year grace period to meet the minimum commitment by October 31, 2030. As of December 31, 2025 and 2024, our remaining commitments are $58.2 million and $56.9 million, respectively. Other than the above agreement with Microsoft, we did not have, during the periods presented, and we do not currently have, any off-balance sheet arrangements or commitments that may have a material current or future effect on financial condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenues or expenses. 110 Table of Contents B. Liquidity and Capital Resources For a discussion of our liquidity and capital sources and cash flows for the year ended December 31, 2024 and comparison to the year ended December 31, 2023, see “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources” in our Annual Report on Form 20-F filed with the SEC on March 4, 2025. Sources of Capital Resources Our principal sources of liquidity were cash and cash equivalents totaling $70.3 million as of December 31, 2025 which were held for a variety of growth initiatives and investments in our SOPHiA DDM Platform and related solutions, applications, products, and services as well as working capital purposes. Our cash and cash equivalents are comprised of cash on hand, bank deposits, money market funds, and bank and other short-term highly liquid investments with original maturities of three months or less. On May 2, 2024 (the “closing date”), SOPHiA GENETICS SA and our subsidiary SOPHiA GENETICS, Inc. entered into a credit agreement and guaranty (the “Perceptive Credit Agreement”) with Perceptive Credit Holdings IV, LP, as lender and administrative agent, pursuant to which we may borrow up to $50.0 million principal amount of term loans, including (i) an initial tranche of $15.0 million principal amount of term loans on the closing date and (ii) a second tranche of $35.0 million principal amount of term loans that was drawn down on June 25, 2025. The term loans are scheduled to mature on the fifth anniversary of the closing date and accrue interest at Term Secured Overnight Financing Rate (“Term SOFR”) (floored at 4% per annum) plus 6.25% per annum; provided that upon the occurrence and during the continuation of any event of default, the term loans will accrue interest at Term SOFR plus 9.25% per annum. The Perceptive Credit Agreement also contains certain mandatory prepayment provisions, including prepayments from the proceeds from certain asset sales and casualty events (subject to a right to reinvest such proceeds in assets used in our business within 180 days) and from issuances or incurrences of non-permitted debt, which will also be subject to prepayment premiums. The obligations under the Perceptive Credit Agreement are secured by substantially all of our and certain of our subsidiaries’ assets and are guaranteed initially on the closing date by SOPHiA GENETICS SA and SOPHiA GENETICS, Inc. The Perceptive Credit Agreement contains customary covenants, including an affirmative covenant to maintain qualified cash of at least $3.0 million, an affirmative last twelve months revenue covenant tested on a quarterly basis beginning June 30, 2024, and negative covenants including limitations on indebtedness, liens, fundamental changes, asset sales, investments, dividends and other restricted payments and other matters customarily restricted in such agreements. We remain in full compliance with all covenants contained in the Perceptive Credit Agreement as of December 31, 2025. In addition, on May 2, 2024 we issued to Perceptive Credit Holdings IV, LP a warrant certificate representing the right to purchase up to 400,000 ordinary shares at $4.9992 per share, with the right to purchase 200,000 ordinary shares available immediately and the right to purchase an additional 200,000 ordinary shares that became available upon the drawdown of the second tranche of the term loans on June 25, 2025. The purchase rights represented by the warrant certificate are exercisable, on a cash basis, at the option of the holder at any time prior to 5:00 p.m., Eastern time on the tenth anniversary of the applicable date of availability. The Warrant Certificate contains customary anti-dilution adjustments. On January 23, 2026, SOPHiA GENETICS SA and our subsidiary SOPHiA GENETICS, Inc. entered into an amendment (the “2026 Amendment”) to the Perceptive Credit Agreement. The 2026 Amendment provides for, among other things, $25.0 million of additional term loan commitments consisting of (i) an additional $12.5 million tranche of term loan commitments, which may be drawn subject to certain customary conditions, and (ii) an additional $12.5 million tranche of term loan commitments, which may be drawn at such time as SOPHiA GENETICS SA’s revenue for a trailing twelve-month period exceed $85.0 million and otherwise subject to customary conditions. The two additional tranches, if drawn, will have terms and conditions consistent with the existing term loans, will bear interest at rate per annum equal to Term SOFR (floored at 4% per annum) + 6.25% and will mature in 2029. In connection with the 2026 Amendment, the Company amended and restated the warrant certificate in order to issue to Perceptive Credit Holdings IV, LP the right to purchase an additional 75,000 ordinary shares at $5.00 per share, which right is exercisable immediately. The warrant certificate also grants Perceptive Credit Holdings IV, LP the right to purchase an additional (1) 100,000 ordinary shares, which right will become exercisable upon drawdown of the third tranche and (2) another 100,000 ordinary shares, which right will become exercisable upon drawdown of the fourth tranche. 111 Table of Contents On April 23, 2024 the Company terminated its existing credit agreement with Credit Suisse SA for up to CHF 5.0 million ($5.5 million). Additionally, the Company entered into a new credit agreement with Credit Suisse SA for up to CHF 0.1 million ($0.1 million) to be used for cash credits, contingent liabilities, or as margin for OTC derivative transactions. Borrowings under the new credit agreement will bear interest at a rate to be established between the Company and Credit Suisse SA at the time of each draw down. On November 27, 2025 the Company terminated this CHF 0.1 million facility ($0.1 million). On February 20, 2025 the Company entered into a new credit agreement with UBS Switzerland AG for up to CHF 0.3 million ($0.3 million), intended solely for the issuance of bank guarantees. As of December 31, 2025 and 2024, the Company had no borrowings outstanding under these credit facilities. In August 2025, we established a new at-the-market (“ATM”) offering program pursuant to which we may sell, from time to time, ordinary shares having an aggregate offering price of $50.0 million. For the year ended December 31, 2025, we sold 228,238 ordinary shares for total net proceeds of $1.1 million under this program. Through February 20, 2026 the Company has sold 2,795,485 additional shares for total net proceeds of $14.1 million under the same program. We have funded our operations primarily through equity financing and through revenue generated from the sale of access to our SOPHiA DDM Platform and related licenses and services. Invoices for our products and services are a substantial source of revenue for our business, which are included on our consolidated balance sheet as trade receivables prior to collection. Accordingly, collections from our customers have a material impact on our cash flows from operating activities. As we expect our revenue to grow, we also expect our accounts receivable and inventory balances to increase, which could result in greater working capital requirements. Uses of Capital Resources Since our inception, we have incurred net losses, which have been significant in recent periods. For the years ended December 31, 2025 and 2024, our net losses were $79.0 million and $62.5 million, and our cash burn was $46.0 million and $58.0 million, exclusive of the $35.0 million and $15.0 million in borrowings under the Perceptive Credit Agreement, respectively. As of December 31, 2025, we had an accumulated deficit of $519.3 million. Our primary use of capital sources has been to fund our operations and grow our business, which has included developing new solutions, expanding our market opportunities for our SOPHiA DDM Platform. Operating Capital Requirements We expect to continue to incur net losses for the foreseeable future as we continue to devote substantial resources to research and development, in particular, to further expand the applications and modalities of our SOPHiA DDM Platform in order to accommodate multimodal data analytics capabilities across a wide range of disease areas; selling and marketing efforts for our SOPHiA DDM Platform to establish and maintain relationships with our collaborators and customers; and obtaining regulatory clearances or approvals for our SOPHiA DDM Platform and our applications, products, and services. We believe that our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. Our future funding requirements will depend on many factors, including: •our ability to achieve revenue growth; •our ability to secure any required regulatory clearance or approval for additional features, applications and data modalities of our SOPHiA DDM Platform and related solutions, applications, products, and services; •the ability of our customers and collaborators to secure any required regulatory clearance or approval for their product candidates, other products, and services the development of which they rely on our SOPHiA DDM Platform and related solutions, applications, products, and services; •our rate of progress in, and cost of the sales and marketing activities associated with, establishing adoption of our SOPHiA DDM Platform and related solutions, applications, products, and services; 112 Table of Contents •the rate of progress in establishing payor coverage and reimbursement arrangements with domestic and international commercial third-party payors and government payors by us with respect to our application and products, if approved for IVD use, and by our customers and collaborators, with respect to their product candidates, other products, and services; •the cost of expanding our research and development; manufacturing and laboratory operations; and applications, products, and services offerings; •the cost of building out our facilities, including our corporate headquarters in Switzerland and our locations around the world; •our ability to maintain and expand our collaborations with biopharmaceutical companies, both advanced and early stage, and reference and specialist laboratories; •our rate of progress in, and cost of research and development activities associated with, early research and development efforts; •the effect of competing technological and market developments; •market acceptance of our platform, solutions, applications, products, and services; •costs related to international expansion; and •the potential cost of, and delays in, application and product development as a result of regulatory oversight. Unless and until we can generate sufficient revenue to finance our cash requirements, which may never happen, we may seek additional capital through a variety of means, including through public and private equity offerings and debt financings, credit and loan facilities and collaborations. Additional funds may not be available when we need them or on terms that are acceptable to us. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Financial Position and Capital Requirements.” Cash Flows The following table summarizes our cash flows for the years ended December 31, 2025 and 2024: Year ended December 31, (in USD thousands) 2025 2024 Net cash from (used in): Operating activities $ (35,893) $ (44,515) Investing activities (8,670) (4,755) Financing activities 30,177 9,857 Net (decrease) increase in cash and cash equivalents $ (14,386) $ (39,413) Effect of exchange rate differences on cash and cash equivalents $ 4,449 $ (3,612) Operating Activities During the year ended December 31, 2025 operating activities used $35.9 million primarily resulting from our loss before taxes of $77.5 million, excluding $31.1 million in non-cash charges partially offset by $10.7 million provided by changes in our working capital. Net cash provided by changes in our working capital for the year ended December 31, 2025 consisted primarily of increases in trade payables largely due to the timing of vendor payments, accrued compensation driven by the growth of the Company and deferred contract revenue as a result of a strong sales activity at the end of the year. During the year ended December 31, 2024 operating activities used $44.5 million primarily resulting from our loss before tax of $61.3 million, excluding $19.9 million in non-cash charges and $2.6 million used in changes in our working capital. Net cash used in changes in our working capital for the year ended December 31, 2024 113 Table of Contents consisted primarily of a $7.4 million decrease in accounts payables, accrued expenses, deferred contract revenue, and other liabilities partially offset by a $5.9 million decrease in accounts receivable. The decrease in current liabilities was primarily as a result of decreases in accrued compensation and deferred contract revenue. The decrease in accounts receivable was primarily as a result of the timing of customer invoicing and collections. Investing Activities During the year ended December 31, 2025, net cash used in investing activities was $8.7 million, primarily as a result of $7.9 million related to capitalized software development costs as we continue to add new products and upgrade or enhance existing products, $1.9 million related to purchases of equity investments, as well as $0.6 million related to purchases of property and equipment which was driven by our lab expansion at our facility in Rolle, Switzerland to handle our growth. During the year ended December 31, 2024, net cash used in investing activities was $4.8 million, primarily as a result of $7.8 million related to capitalized software development costs as we continue to add new products and upgrade or enhance existing products. Financing Activities During the year ended December 31, 2025, net cash provided from financing activities was $30.2 million, primarily as a result of $34.6 million in net proceeds from the second tranche of the Perceptive Credit Agreement and $1.1 million in proceeds from the sale of ordinary shares through our ATM facility. During the year ended December 31, 2024, net cash provided from financing activities was $9.9 million, primarily related to $13.9 million in net proceeds from the Perceptive Credit Agreement, partially offset by $2.8 million of payments of the principal portion of leases. Non-IFRS Measures To supplement our financial statements prepared in accordance with IFRS, we provide investors with certain non-IFRS financial measures, including adjusted EBITDA and constant currency revenue. The presentation of the non-IFRS financial measures have limitations and you should not consider them in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. We believe that these non-IFRS financial measures provide useful information about our performance, enhance overall understanding of past performance and future prospects and allow for greater transparency with respect to metrics used by our managements in its financial and operational decision-making. Adjusted EBITDA We define adjusted EBITDA as loss for the period before depreciation, amortization, interest income, interest expense, fair value adjustments on warrant obligations, foreign exchange (losses) gains, net, income tax (expense) benefit, share-based compensation expense, non-cash pension expense, certain transaction costs and litigation expenses. Adjusted EBITDA is a key business metric we use to evaluate our overall financial performance and to facilitate consistent comparisons across reporting periods. Adjusted EBITDA reflects our earnings excluding items that we believe are not related to our core operating performance, or are non-cash income and expense. We believe this metric provides a meaningful representation of our operating profitability as it excludes items that may fluctuate significantly between periods and are not reflective of our ongoing business operations. We believe that this non-IFRS financial measure provides useful information about our performance, enhances overall understanding of past performance and future prospects and allows for greater transparency with respect to metrics used by our management in its financial and operational decision-making. 114 Table of Contents Adjusted EBITDA has limitations as a financial measure, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. For example: •Adjusted EBITDA excludes the impact of depreciation. Although depreciation is a non-cash charge, the assets being depreciated may need to be replaced in the future and this non-IFRS measure does not reflect capital expenditure requirements for such replacements or for new capital expenditures; •Adjusted EBITDA excludes the impact of interest expense. Interest expense will continue to be for the foreseeable future a recurring expense based on the company’s financial liabilities; •Adjusted EBITDA excludes the impact of interest income. Interest income will continue to be for the foreseeable future recurring income based on the company’s financial assets; •Adjusted EBITDA excludes the impact of income taxes. Income taxes will continue to be for the foreseeable future a recurring expense incurred in the various jurisdictions in which the company operates; •Adjusted EBITDA excludes the impact of foreign exchange gains (losses), net. Foreign exchange gains and losses will continue to be for the foreseeable future a recurring benefit or expense incurred as the company participates in transactions outside of the company’s functional currency; •Adjusted EBITDA excludes the impact of fair value adjustments of warrant obligations. Fair value adjustments on warrant obligations will continue to be for the foreseeable future a recurring expense incurred as the company has outstanding warrant obligations; •Adjusted EBITDA excludes the impact of amortization of capitalized research and development expenses and intangible assets. Amortization of these assets will continue to be for the foreseeable future a recurring expense incurred as the Company continues to invest in developing revenue-generating products through research and development. Although amortization is a non-cash charge, the assets being amortized may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures; •Adjusted EBITDA excludes the impact of share-based compensation expenses. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in the company’s business and an important part of its compensation strategy; •Adjusted EBITDA excludes the impact of the non-cash portion of pensions paid in excess of actual contributions to match actuarial expenses. Pension expenses have been, and will continue to be for the foreseeable future, a recurring expense in the business; •Adjusted EBITDA excludes the impact of certain capital markets transaction costs. These costs may occur from time to time in the future as needed to complete the transactions; •Adjusted EBITDA excludes the impact of litigation expenses related to the company's defense of lawsuits filed by Guardant Health. These expenses are expected to continue for the duration of the litigation and may increase in future periods. Additionally other companies, including companies in our industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures. 115 Table of Contents The following table reconciles IFRS net loss to adjusted EBITDA for the years ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 IFRS loss for the period $ (78,999) $ (62,493) Exclude the impact of: Depreciation $ 3,976 $ 4,575 Amortization 5,553 4,021 Interest income (1,872) (3,362) Interest expense 4,554 1,913 Fair value adjustments on warrant obligations 497 (370) Foreign exchange losses (gains), net 3,402 (3,479) Income tax expense $ 1,512 $ 1,223 Share-based compensation expense(1)(3) 16,205 16,488 Non-cash pension expense(2) 347 1,306 Transaction costs(4) 895 — Litigation expenses(5) 2,430 — Adjusted EBITDA $ (41,500) $ (40,178) (1)Share-based compensation expense represents the cost of equity awards issued to our directors, officers, and employees. The fair value of awards is computed at the time the award is granted and is recognized over the vesting period of the award by a charge to the income statement and a corresponding increase in other reserves within equity. These expenses do not have a cash impact but remain a recurring expense for our business and represent an important part of our overall compensation strategy. (2)Non-cash pension expense consists of the amount recognized in excess of actual contributions made to our defined pension plans to match actuarial expenses calculated for IFRS purposes. The difference represents a non-cash expense but remains a recurring expense for our business as we continue to make contributions to our plans for the foreseeable future. (3)Share-based compensation expense does not include social charges on equity-based compensation of $0.8 million and $(0.7) million for the years ended December 31, 2025 and 2024, respectively. (4)Transaction costs consists of expenses incurred in connection with the Company’s shelf registration statement and the ATM program. (5)Litigation expenses consists of expenses related to the company's defense of lawsuits filed by Guardant Health. Constant Currency Revenue We define constant currency revenue as revenues received in local (non-U.S. dollar) currencies translated into U.S. dollars using the same average foreign currency exchange rates that we used to translate local currency revenues for the comparable reporting period of the prior year. The company then calculates the difference between the IFRS revenue and the constant currency revenue to yield the “constant currency impact” for the current period. Constant currency revenue is a key business metric we use to assess our underlying revenue performance, excluding the impact of foreign currency exchange rate fluctuations. Since we operate in multiple international markets, our reported revenue is affected by changes in foreign currency exchange rates, which can obscure underlying trends in our business performance. We believe this metric provides our management with an additional measure of our revenue and growth by removing the effects of currency movements. We believe this 116 Table of Contents allows management and investors to better understand or performance and make more meaningful comparisons across reporting periods. Constant currency revenue has limitations as a financial measure, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. For example: •Constant currency revenue excludes the impact of foreign exchange rate fluctuations. While this allows better comparability between periods, this does not reflect actual changes in revenues and should not be considered in isolation. •Constant currency revenue uses a monthly average exchange rate which does not reflect actual economic impact. This application may overstate or understate the true impact of foreign currency on revenue. Additionally other companies, including companies in our industry, may calculate this non-IFRS measures differently, which reduces its usefulness as a comparative measure. The following table reconciles IFRS revenue to constant currency revenue for the years ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 IFRS revenue $ 77,271 $ 65,173 Current period constant currency impact (1,983) — Constant currency revenue $ 75,288 $ 65,173 C. Research and Development, Patents and Licenses See “Item 4. Information on the Company—B. Business Overview” and “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Results of Operations.” D. Trend Information See “Item 5. Operating and Financial Review and Prospects—A. Operating Results.” E. Critical Accounting Estimates and Judgments The preparation of financial statements in conformity with IFRS Accounting Standards requires management to make judgments, estimates and assumptions that affect the application of our accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amount recognized in the financial statements are described below. Revenue Our sales transactions may consist of various performance obligations that are satisfied at different times. It requires judgment to determine when different obligations are satisfied, including whether enforceable commitments for further obligations exist and when they arise. Depending on the determination of the 117 Table of Contents performance obligations and the point in time or period over which those obligations are fulfilled, this may result in all revenue being calculated at inception, and either being recognized at once, or on contract completion or spread over the term of a longer performance obligation. In accounting for contracts that contain promises to deliver more than one good or service, we have to determine how to allocate the total transaction price to the performance obligations of the contract. We allocate the total transaction price of a customer contract to the distinct performance obligations under the contract based on their standalone selling prices (“SSP”), the determination of which can require significant judgment from management. The best evidence of this is an observable price from the standalone sales of the good or service to similarly situated customers. However, where standalone selling prices are not observable, it requires judgment to estimate the cost of satisfying a performance obligation and adding an appropriate margin to that good or service. In some cases, SSP is not available and the residual approach is used to determine the stand-alone selling price of certain performance obligations. Capitalized Internal Software Development Costs We capitalize the costs of work attributable to the development of new data analytics solutions and services or to the improvement or enhancement of existing solutions and services. The costs consist of personnel costs, including related benefits, that are incurred once it is evident that the project is technically and financially feasible and that it will bring economic benefits to us. We review capitalization criteria for each project individually, which requires us to exercise judgment as to what costs are capitalizable. Capitalized costs are amortized over the estimated useful life of the software, which is five years, on a straight-line basis, which represents the manner in which the expected benefit will be derived. We determine the useful lives of identifiable project assets after considering the specific facts and circumstances related to each project. The amortization of costs related to the data analytics solutions is included in cost of revenue in the consolidated statement of loss. Significant judgments related to the capitalization of internal use software costs include determining whether it is probable that projects will result in new or additional functionality, concluding on when the application development phase starts and ends, and estimating which costs, especially employee compensation costs, should be capitalized. Share-Based Compensation For the years ended December 31, 2025 and 2024, we granted share options under one plan - the SOPHiA GENETICS 2021 Equity Incentive Plan (the “2021 Equity Incentive Plan” or the “2021 EIP”). Under this plan, our Board of Directors may offer options to directors, employees and advisors. The fair value of the services and consideration received in exchange for the grant of options is recognized as an expense and as a component of equity. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted. The fair value of the share options was determined using a Black-Scholes valuation model. No performance conditions were included in the fair value calculations. Measuring the Cost of Share Options The fair value of the options outstanding under all plans is estimated at each reporting date using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. The Black-Scholes model requires the input of highly subjective assumptions, including the expected volatility, the risk-free rate, expected life and the dividend yield. The expected volatility is based on our own historical volatility as well as the historical volatility of several comparable companies in the same industry. The expected life is based on the longer of each tranche’s respective weighted-average vesting term. The risk-free rate for periods within the contractual life of the options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. The dividend yield is based on the Company’s expected dividend policy over the contractual life of the options. 118 Table of Contents The key inputs used in the valuation model for the stock options are outlined below. EIP 2021 Year Ended December 31, 2025 2024 Weighted average strike price (in USD) $3.29 $4.78 Share price at grant date (in USD) $3.04 - $4.73 $3.40 - $4.96 Expected life of share options (years) 5.5 - 7 P5Y6M0D - P7Y0M0D Expected volatility (%) 73.84 % - 77.60% 72.86 % - 74.95% Risk free interest rate (%) 3.68 % - 4.03% 3.50 % - 4.40% Dividend yield (%) —% —% Defined Benefit Pension Liabilities The liability or asset recognized on the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of loss. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and on the balance sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in income as past service costs. For defined contribution plans, we pay contributions to publicly or privately administered pension insurance plans. Employee contributions to these plans is voluntary and these contributions are matched by the employer. We have no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. Contributions are charged to the statement of loss as incurred. 119 Table of Contents