Good morning. My name is Vincent, and I'll be your conference operator today. At this time, I would like to welcome everyone to the SOPHiA GENETICS first quarter 2026 earnings conference call. At this time, all lines are in a 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, SOPHiA GENETICS VP of Strategy, you may begin.
Thank you. Good morning, everyone. Welcome to the SOPHiA GENETICS first quarter 2026 earnings conference call. Joining me today to discuss our results are Dr. Jurgi Camblong, our Co-founder and Chief Executive Officer, Ross Muken, our President, and George Cardoza, our Chief Financial Officer. I'd like to remind you that management will make statements during this call that are forward-looking statements within the meanings of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward-looking statements. Additional information regarding these risks, uncertainties 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, we will present both IFRS and non-IFRS financial measures. Reconciliation of IFRS and non-IFRS measures is included in today's earnings press release, which is available on our website. With that, I'll now turn the call over to Jurgi.
Thanks, Kellen, and good morning, everyone. I'm pleased to report that SOPHiA is off to a strong start in 2026. In the first quarter, we delivered revenue growth of 22% year-over-year. We also performed a record 108,000 genomic analysis as demand for SOPHiA DDM accelerates across the globe. In addition to processing more data volume than ever, we also achieved adjusted gross margin of 75.4%, demonstrating the unique scalability of our hyper-efficient analytics platform. Ross and George will walk you through the commercial and financial details in a few minutes. First, let me step back and frame why this quarter matters strategically. The precision medicine landscape is at an inflection point. Sequencing costs are declining, data per patient is exploding, and AI is becoming essential for delivering the highest standard of care.
As a result, hospital and labs around the world are increasingly looking to scale their genomics testing capabilities. With the right partners, turnaround times become faster, economics become profitable, and data generated becomes invaluable for performing research and making new discoveries. SOPHiA DDM was built for this moment. Our platform streamlines testing and allows any institution anywhere in the world to quickly scale their own world-class precision medicine capabilities. SOPHiA DDM provides customers with not just a tool, but an AI-native service that delivers workflow outcomes, generating highly accurate insights and faster speeds, while also unlocking profitable economics for institutions. That's not all. SOPHiA DDM also makes patient care more intelligent by breaking data silos and allowing clinicians to tap into a collective intelligence of the smartest minds in healthcare.
As hospitals use SOPHiA DDM to generate insights and treat patients, they also contribute a stream of data and knowledge back into the platform. As more data flows through the platform, our algorithms become smarter. This in turn enables those same clinicians to get better insights, building trust along the way. Deeper trust, smarter insights, and better outcomes ultimately accelerate new platform adoption, creating a virtuous loop with compounding growth effects. As of Q1, this adoption loop has enabled us to connect 537 institutions across the globe who use SOPHiA DDM every day for genomic analysis. In the quarter, these institutions uploaded real-time, real-world genomic data from 108,000 patients. In March, we set a new company record with more than 40,000 patients analyzed in a single month. This diverse real-time, real-world data stream includes patient data from 75 countries worldwide, creating breadth and global exposure and is unmatched in our space.
Over the past two years, our rich, diverse dataset, which include nearly 2.5 million genomic profiles since inception, has enabled us to build some of the most sophisticated AI in healthcare. New applications in liquid biopsy, solid tumor, MRD for AML, and enhanced exams are impressing our users with their accuracy, flexibility, and AI-powered insights. The good news is we're just getting started. Our top innovation priorities going forward will focus on deepening clinical relationships and getting closer to the patient. To accomplish this, we will expand platform capabilities to new areas as the market evolves. This includes supporting larger, more complex NGS applications like whole transcriptome and methylation, tracking patients longitudinally with MRD, mastering data compute at scale, optimizing the end-to-end workflow, and developing increasingly regulated products.
It also includes expanding capabilities beyond genomics into multimodal to support clinical decision-making and accelerate the future of data-driven medicine. Our planned innovations are also designed to resonate with biopharma. Throughout the year, we will invest in evolving our data sets into durable commercial assets for real-world evidence. In addition, we are working hard to create a global decentralized companion diagnostics offering that brings life-saving therapies to patients across our network. In short, our unique positioning and data set are enabling us to build for the future. We have been a technology company since day one, building real AI to solve the world's most difficult biological challenges. The market is coming to us, and I couldn't be more confident in our ability to deliver products for future growth. As we continue to invest in the future, we also must remain committed to growing in a sustainable way.
Across the organization, our teams are hyper-focused on continuous improvement, efficiency, and operational excellence. We benefit from a young, agile, and tech-centric workforce that has been quick to adopt and deploy emerging productivity tools, including the new AI technologies in the market. Early results from our internal rollout of these AI tools have been overwhelmingly positive. In Q1, we materialized the benefits of recent efficiency gains and took a series of targeted cost actions, which modestly reduced head count and non-labor spend across the business. These actions, which mostly focused on support and operations functions, have allowed us to invest even more in high-growth areas while also ensuring that we meet our profitability commitments going forward. As the year continues, we will look forward to updating you on our progress and showcasing the impressive operating leverage that is innate to our business model.
In closing, Q1 was a strong quarter for SOPHiA. The market is reshaping itself around intelligence, and we are perfectly positioned to accelerate this movement. Our network is compounding, and our data is unmatched. We continue to scale, and our path to profitability is becoming increasingly clear. As I close out my final earnings call as CEO before I transition to Executive Chair in June, I'm happy to transition leadership of the business that is in excellent shape to a capable leader who will propel SOPHiA to its next stage of growth. With that, I will now turn the call over to Ross, who will provide a more detailed update on the business and growth drivers for the year.
Thanks, Jurgi. I certainly share your excitement about the business, and today I'm pleased to share an update on our progress to start the year. In the first quarter, three major themes defined the quarter. First, the U.S. business continues to gain momentum. Decentralized testing has always been a widely accepted characteristic of the European and global market. However, in the last 12 months, demand for decentralized testing has materially increased in the U.S. As reimbursement rates become more established and denial rates improve, hospitals and labs are waking up to the benefits of scaling their own testing capabilities. Central labs have proven that testing is profitable and that genomic data has significant value. Now, U.S. hospitals and labs are making testing part of their core strategy, and those who move are seeing significant benefits.
In the first quarter, we announced an expanded partnership with Mount Sinai, one of the leading academic health systems in the U.S., who is using SOPHiA DDM to bring hemato-oncology and solid tumor testing to the New York market. They join a growing number of New York area institutions to partner with SOPHiA, including NYU Langone Health and Memorial Sloan Kettering Cancer Center. As more institutions adopt SOPHiA DDM, the cost of not having our platform becomes real. Regional density causes patients, providers, and even payers to push testing volumes towards sites which offer the best insights at the lowest cost with the fastest turnaround times. We're proud to work with our partners to bring these positive structural changes to the New York testing market and welcome a decentralization revolution to the New York City area.
The second key theme for the quarter was continued growth of new applications such as the MSK-IMPACT and MSK-ACCESS tests. In Q1, less than two years after decentralizing and deploying these tests globally, we have already reached a total of 100 customers worldwide who have signed on to adopt the applications. A few of these include prestigious Q1 signings such as Maastricht UMC+, a leading Dutch academic medical center, Ospedale Niguarda, one of Italy's leading hospitals in Milan, and Ruhr University Bochum in Germany. These customers, along with half of the 100 signed accounts, are currently implementing SOPHiA DDM, which means they should begin generating revenue over the next 12 months. Among those who have completed implementation, we are pleased to record 3,000 liquid biopsy analysis in Q1, up more than 100% year-over-year.
We look forward to this number continuing to grow as more customers finish their implementation and start using the sophisticated HFCP application. New applications such as liquid biopsy and enhanced exomes help our sales team expand within accounts. As a reminder, we landed a large amount of new customers in 2025 with 124 new signings throughout the year. As we turn to 2026, a major focus will be expanding across these customers by encouraging them to adopt additional applications. I'm proud to say that our expand engine is off to a strong start in the first quarter. Net dollar retention, or in other words, same-store growth, increased to 117%, up from 103% in the prior year period. Moreover, forward-looking indicators show no signs of stopping.
In Q1, we signed many notable expand deals, including three in Europe, that were each valued at over $1 million in annual contract value. This serves as another impressive proof point for the virtuous loop fueling our platform's growth. It also shows that hospitals are excited to consolidate their data strategies with trusted partners in a market where winner-take-most dynamics are forming. The final theme for the quarter was substantial increased momentum with biopharma. In the first quarter, biopharma revenue growth was positive and contributed modestly to overall growth as some of the recent new contracts we signed began to generate revenue. We continue to make progress with a growing number of biopharma partners, and momentum is strong. Coming out of AACR and World Clinical Biomarkers & CDx Summit Europe 2026, it is clear that biopharma customers are looking to develop comprehensive AI investment strategies with trusted partners.
It is also clear that every biopharma company we speak to recognizes that SOPHiA provides differentiated value across the drug continuum. They recognize that our diagnostic network is unmatched in global reach and that the data streaming through our platform has incredible value. They also appreciate our deep AI expertise in the field of biology. Our offering is continuing to resonate as one of the only companies in this space that could support a drug across its entire life cycle, from companion diagnostics to post-launch monitoring with real-world evidence to patient selection and trial design. In the last six months, increasing momentum has materialized in the recent signing of contracts with major biopharmas such as AstraZeneca and Johnson & Johnson, as well as biotechs like Cartos and others.
Moreover, our partnerships with Myriad Genetics in the U.S. and A.D.A.M. Innovations in Japan continue to progress as we work on building out the infrastructure for a hybrid global CDx offering. We look forward to updating you more on these items over the coming weeks and months. Looking ahead to the remainder of 2026, our pipeline across clinical and biopharma remains strong and healthy even after strong bookings conversion. Deal size continues to grow, and the number of opportunities in our pipeline above $1 million are becoming even more numerous. The market is moving in our direction, and we are excited to continue capitalizing on our opportunity. With that, I will now turn it over to George, who will provide a more detailed look at our financial results and the outlook for 2026.
Thank you, Ross. As Jurgi and Ross highlighted, Q1 results were strong and our outlook remains positive. Total revenue for the first quarter was $21.7 million compared to $17.8 million for the first quarter of 2025, representing year-over-year growth of 22%. I will note that year-over-year revenue growth would have been slightly stronger if not for a one-time benefit in the prior year period from a customer true-up. Platform analysis volume was approximately 108,000 in Q1 compared to 93,000 in the first quarter of 2025, representing solid growth of 16%. From a regional perspective, U.S. volumes continue to expand at healthy levels, growing 28% year-over-year in Q1. APAC also outperformed with 31% volume growth.
In EMEA, revenue grew 30% year-over-year, impressively above the company average, mostly driven by great performance in the U.K., Belgium, and Switzerland. In Latin America, revenue remains soft, and we have made changes there to turn around our performance. From an application standpoint, hemonc revenue grew 24% year-over-year. Rare and inherited growth also picked up in the quarter, with volumes growing over 20% as our enhanced exome product begins to come online. As Ross mentioned, liquid biopsy, which carries a higher ASP, continues to ramp and contribute to our revenue growth as well, with more growth expected for the second half of the year. Core genomic customers were 537 as of March 31st, up from 490 in the prior year period. Annualized revenue churn remained world-class at less than 1% in Q1.
As Ross mentioned, net dollar retention for the quarter was 117%, up from 103% in the prior year period. Gross profit was $14.7 million compared to $12.2 million in the prior year period, representing growth of 21%. Gross margin was 68.0% compared to 68.7% for the first quarter of 2025. Adjusted gross profit was $16.4 million, an increase of 22% compared to adjusted gross profit of $13.4 million in the prior year period. Adjusted gross margin was 75.4% compared to 75.7% for the first quarter of 2025. Total operating expenses for Q1 were $32.0 million compared to $28.2 million in the prior year period.
Some specific items temporarily impacted reported operating expenses and are worth calling out directly as they do not reflect the company's underlying operating performance. First, foreign exchange headwinds continued to negatively impact reported results, primarily due to the strengthening of the Swiss Franc. The Swiss Franc strengthened approximately 14% against the U.S. dollar from Q1 2025 to Q1 2026, meaningfully increasing the dollar-translated costs of our Swiss payroll and facilities. This is a pure translation effect, as our underlying cost structure in local currency remains disciplined. As previously disclosed, Guardant Health filed patent infringement claims against us in the U.K. and at the Unified Patent Court in Paris during Q3 last year, alleging that our MSK-ACCESS application infringes their patents. We incurred approximately $1.4 million in related legal expenses during Q1, which is reflected as a litigation adjustment in our adjusted EBITDA reconciliation.
Importantly, in January, the UPC rejected Guardant's request for provisional measures and ordered them to pay us $700,000 in interim costs, $500,000 of which we received in mid-March, and an additional $200,000 which we received in mid-April. Net of this recovery, litigation impact on Q1 operating expenses was approximately $700,000. Operating loss for the first quarter was $17.3 million, compared to $16 million in the prior year period. Adjusted EBITDA was a loss of $9.2 million, compared to the prior year loss of $9.5 million. Lastly, cash burn, which we define as the change in cash and cash equivalents, excluding cash received from borrowings and stock sales, as well as FX impacts, was $19.5 million, compared to $11.7 million in the prior year period. This year-over-year increase reflects two expected dynamics.
First, coming off a strong 2025, annual bonus and commission payouts were meaningfully higher than the prior year, and these were paid in March. Secondly, we also invested in the build-out of a new lab at our Swiss headquarters with increased capacity to support revenue growth for years to come. This impacted our cash burn by approximately $1 million in the quarter. Third, we continue to vigorously defend ourselves against the patent infringement lawsuit filed by Guardant Health, and we paid several bills for expenses incurred in the first quarter of 2025. The $500,000 from Guardant in Q1 and the additional $200,000 received in April only cover a portion of our total litigation costs.
We ended Q1 with cash and cash equivalents of $65.4 million as of March 31st, which includes $14.5 million in ATM proceeds received in the first quarter of 2026. In January, as previously disclosed, we also expanded our credit facility with Perceptive Advisors, increasing total available liquidity by $25 million. We remain confident in our current capital position with respect to the achievement of our long-term goals. I'll now turn to the 2026 outlook. Given the promising revenue growth in Q1, SOPHiA GENETICS is reaffirming our full-year revenue guidance for 2026 of $92 million-$94 million, representing 20%-22% growth on a reported basis.
We still expect 2026 growth to be mostly back-half weighted as new business signed in 2025 comes online in the second half of the year and as more MSK-ACCESS, MSK-IMPACT Flex, and enhanced exome business ramps up to routine usage. We also expect that exchange rates will remain volatile due to macro uncertainties, which may have an impact to reported results. Beyond revenue, we are also reaffirming our full-year adjusted EBITDA loss guidance of $29 million-$32 million, compared to $41.5 million in full year 2025. As demonstrated this quarter, we continue to make targeted investments in our platform to further optimize cloud compute and storage costs and expect gross margins to slightly expand beyond 2025 levels. As a global company, we are monitoring the ongoing conflict in the Middle East closely, particularly with respect to shipping and customer activity in the region.
So far, the conflict has not materially impacted our results, and we do not believe it will have a material impact this year. In Q1, as Jurgi mentioned, we took a series of cost actions and realized benefits of adopting AI across our teams. These actions reinforce our conviction to grow revenue without increasing headcount. They also give us confidence that we will be able to continue holding the line on operating expenses in local currencies and reach our profitability guidance. All said, we continue to believe that we are on track to be approaching adjusted EBITDA break even by the end of 2026 and crossing over to positive adjusted EBITDA in the second half of 2027. With that, I would like to turn the call back over to Jurgi for closing remarks before we take your questions.
Thank you, George. As I wrap up my last earnings call as CEO of SOPHiA GENETICS, I feel confident as ever in our long-term trajectory. Forward-looking indicators remain strong across the business. We continue to see a steady stream of customer signings across new and existing customers. Biopharma interest is growing, and our pipeline is expanding across regions and applications. At the same time, we continue to be laser-focused on optimizing costs and delivering sustainable growth. Thank you to the SOPHiA team, customers, partners, and investors for your continued trust and partnership. 15 years ago, we had an ambitious vision to transform healthcare through data and AI.
Today, we operate the most widely used AI-driven platform in precision medicine, impacting 40,000 patients per month and 2.5 million patients since inception. I'm so proud of what our team has accomplished over the past 15 years, and I know we are just getting started. Operator, you may now open the line for questions.
Your first question comes from the line of Mark Massaro from BTIG.
Hey, guys. congrats on the quarter. Jurgi, appreciate the network that you've built globally, to decentralize this testing and look forward to working with you as you move to the Executive Chairman role.
Thank you, Mark.
Yeah, sure thing. Yeah. Moving into my question, I guess. The adjusted gross margin of 75% was certainly a key highlight of this print. Can you just give us a sense, guys, for your degree of confidence to maintain or, you know, how do you think about this gross margin profile going forward? I know that you are planning to onboard some higher mix applications, so is this something that you think you can build on here, or were there some one-time items that might be lumpy on the gross margin line?
Ross?
Mark, you know, we've really spent quite a lot of effort modernizing the platform over the past 24 months as we've talked about our Gen 2 transition. I think you're seeing the benefits of that. I think there's a lot more scalability left, even as we bring on more complex solutions that require a lot more compute. And so, in general, I'm super happy with how the team has executed here. I think fundamentally as well, we're seeing positive pricing dynamics in our environment. You have both the mix of trade up to more complex solutions as well as more value realized for solutions like ours as a percentage of total cost of diagnostic or as a percentage of revenue.
I think on both of those parameters, you know, this is quite constructive for us. I'll let George comment on what's contemplated going forward. For me, I still think, you know, there's some room to go, but certainly we're very pleased with how we've executed.
Mark, as Ross said, we're very pleased with the performance of our tech team and we were pleased with where gross margin came in for the quarter. We do have some pharma business and if anything could be lumpy on the margin side, it would probably be more the pharma business. Our full year guidance was modest improvement in gross margins, and we're still holding to that, but certainly we were pleased with where Q1 came in at.
Okay, great. It looks like you guys took some cost reduction actions in the month of April. It looks like it's a small action, but can you just speak to which regions were impacted, anything in the U.S. that was material, and how should we think about that in terms of headcount?
You know, couple things, Mark. One, the action was quite small, right? It was a very modest change to the cost structure. You know, we are an organization very focused on continuing improvement. We've also seen some gains in parts of the business from AI, and so we wanted to be able to drop some of that down and then reinvest other parts. I would say in general, again, this was quite isolated and generally, I would say in the G&A functions where we gained efficiency. You know, this was our ability to show that obviously we're an organization very committed to our profitability targets. And a lso as a software and AI business, we're one that could not only obviously deploy gains to our customers, but also utilize some of that on our own operations, which will help us again as we scale, as growth continues to re-accelerate here. George?
Yeah, no, again, we've, you know, in our guidance for the year, we said, you know, EBITDA, adjusted EBITDA of $29 million-$32 million, and this was an important part is maintaining that cost discipline across the organization. Like Ross said, that's just part of what we're doing and making sure that we continue to have that discipline going forward.
As mentioned, Mark, you know, regionally, you know, most of it was G&A, so I would say, probably a bit more concentrated in the Swiss operations. Honestly, no real geographic bias to it. Actually, the U.S. is where some of the headcount redeployment, particularly on the commercial side, will go; it will be modest, and that's because we're seeing really great characteristics in that business and really are confident in our ability to continue to grow market share in the territory.
Great. Maybe just my last question. You alluded to the fact that you signed a lot of new customers in 2025, many of which are planning to turn onto the DDM platform in the second half. I just wanted to get a sense for, you know, obviously you did reaffirm the revenue guidance, but just wanna get a sense for whether or not you believe that you're tracking to on, you know, initiating the go lives for many of these customers and wanted to test your degree of confidence on these folks coming onto the platform.
Mark, we came in ahead of our plan in the first quarter, so we're very happy with our performance. You know we're conservative, given it's early in the year, despite we're really pleased with the signals and we remain extremely confident in sort of the customer onboarding and progression, you know, we want to make sure that we're well set up for the year. I would say, you know, stay tuned, but ultimately, we're feeling very good around delivering on our commitments and ideally, obviously, outperforming. I would say overall, on the onboarding side, I'm really pleased with our implementation team on our tech side and our bioinformatics group as well as in services. We've seen the pacing of some of the large customers pick up. We have quite a number of them coming online, including some that came on late in March, which helped with that record month that you saw, and helped us have a record quarter.
My expectation is that we'll that cadence will continue to improve. Again, a lot of the AI and other initiatives we have are focused on speeding up that time to revenue. And so, again, as George talks about the back half ramp, a good portion of that is highly visible, and is obviously tied somewhat to some of those customers, particularly some of the large U.S. ones coming online, and we remain super confident on our ability to execute on that. Ideally, if they ramp consistent with what we've seen historically, that may provide some cushion for upside as we tend to initially guide fairly conservatively for the on-ramp of new business. Again, a lot to look forward to on our side as that growth ideally continues to move in a favorable direction.
That sounds great. I'll hop back in the queue.
Thank you, Mark.
Your next question comes from the line of Dan Brennan from TD Cowen. Please go ahead.
Hey, good morning. This is Kyle on for Dan. Thanks for taking the questions. I wanted to jump into your net dollar retention, you know, which accelerated again this quarter to 117%. Can you just discuss some of the drivers a little bit more? I mean, is this more driven by customers expanding into multiple applications, you know, on DDM, or is it more a mix of, you know, the uptake of higher ASP tests like MSK-ACCESS that's driving that performance? Thank you.
Thanks, Kyle. Obviously, we're happy to see that metric get back to, I would say, really high quality standard among software businesses. We're quite pleased with the organic growth. As you mentioned, it's coming from a mix, right? We were very intentional this year versus the last two years of really focusing on the expand. And so, that obviously will benefit the NDR line, and ideally, this will continue into next year. This is a very high ROI acceleration as well as it carries with it very little incremental cost. It helps as we think about our shift to EBITDA profitability. I would also say, you can see it by the strong EMEA results, you know, the underlying growth in our industry, I think has become healthier.
You see it in one of the large equipment vendors' numbers, relative to clinical consumable growth. I think overall, customers are healthy. New technologies are coming online. You know, for us, that would be things like liquid biopsy or exomes. In general, pricing remains, as I mentioned, favorable. I think the component in all of that with incredibly low churn, all of that comes together to give us confidence that the improvement in sort of that organic underlying growth rate will sustain.
Got it. Thank you. Then maybe just on your Latin America business. You know, you noted it was soft in the first quarter. I think in your 6-K, it said it was down over 30%. I believe you had a really tough comp there year-over-year. Can you just dig into some of the trends that you're seeing in Latin America and just expand upon that a bit?
Yeah. Thank you for the question. Obviously, you know, we've been disappointed in that region, albeit it's a small one, but it's strategically important for the last number of quarters. We did make a change there in leadership. I was actually just there myself very recently, as was our CSO in Brazil and in Colombia and Argentina, all three critical countries. I would say Brazil at the moment is where some of that softness is kind of isolated. We've got some ideas and thoughts of how we're going to re-accelerate the territory. I would say I'm quite optimistic on Mexico and Colombia and to a lesser degree, Argentina. I think overall, we expect the region to return to growth.
We think we're gonna make the necessary changes there, and we think the portfolio is also well-positioned. It's also a region that's highly pharma sensitive, sometimes as well, it's dependent on where pharma pipelines are, and there are a few key new drugs coming online that will be highly relevant for Latin America. We would expect that as well to drive an increase in testing in some of the geographies. And so, overall, I would say we're cautiously optimistic, but certainly, we've taken actions to ensure that we get back on track in this strategic territory.
Got it. Thanks, guys.
Your next question comes from the line of Bill Bonello from Craig-Hallum. Please go ahead.
Hey, guys, a couple of questions here. First of all, I wanna follow up on one of the questions that Mark asked just about implementation time, but more specifically, to MSK-ACCESS. I'm just curious what you're seeing these days in terms of typical onboarding time once a customer has said that they want to adopt MSK-ACCESS, and then what you're seeing as a, you know, typical ramp once they're up and running the test.
Bill, it's a great question. Thank you. Obviously, as you know, MSK-ACCESS is incredibly important to us. We're really proud of the 100 accounts that have come online. If you just put that in context, you know, the world didn't really have liquid biopsy testing outside of the U.S., we're really pleased to see it adopted at this great rate. We're also really proud to have great pharma partners in that journey that have helped us in that adoption rate. And so, I would say overall, I wish I could tell you that there's a, you know, a pattern on some of the adoption.
I would say, you know, several accounts have come online and oncologists have really, I would say, you know, understood how to utilize the technology, and we've seen volumes ramp. I think others take more education. And so, again, there's varying degrees of sophistication and understanding on different sort of cancer types, dependent on where we look around the world. At the moment, about half of the accounts are online. I would say they're all ramping. You know, we continue to believe this will be a very material part of the incremental growth. And so, overall, I would say we're pleased, but certainly, you know, you start to see some of that impact the revenue line, but I would say more is to come over the next several quarters and then into 2027. And s o far, it's hitting our internal expectations, we'd obviously like to see that inflect more materially.
We think with, again, better doctor education or oncologist education in some of the territories, and then if you see, you know, some of what's gonna be presented at ASCO, as well as at ESMO, our expectation is all of this will help drive with that utilization to much higher levels over time. It's been pretty broadly adopted, right? You know, you should expect to see different adoption curves in each of the different nations.
That's helpful. Thank you. Just a follow-up on the pharma side, and you touched on this just slightly in your response to that question. You know, it's great to see the recovery there. You know, it does seem like typically pharma revenue, you know, might capture a lower multiple just 'cause it's not seen, you know, it is seen as potentially less recurring. Could you maybe talk to us about how you think about the pharma business vis-a-vis the clinical business? In other words, you know, how does pharma drive clinical, and, you know, if it does?
Bill, it's another great question. And it ties frankly into your first question because a product like MSK-ACCESS, which is really a platform for pharma, does have a fantastic flywheel between biopharma and clinical usage, as you alluded to. I would say overall, we're very pleased finally with where our pharma business is performing. We've now gotten back into the green and we're starting to see some nice momentum where I think over the next several quarters you'll see that acceleration play out in the total revenue performance. Certainly, quite a different picture than where we were 24 months ago.
As you know, we made some tough decisions in that business, and we really refocused, and we're seeing the benefits now of that play out in the numbers. And so, I would say again, one of the key things we've strategically decided to do is less kind of large one-off project type business that doesn't yield strategic and/or recurring revenue benefits. We're much more confident that the type of business we're bringing online is recurring, can be repeated, and can be scaled. As you think about, again, some of the types of CDx projects even that we do, much of that is done with the intent of not only being able to serve pharma through the CTA and CDx portion, but obviously on the clinical side thereafter.
The idea that you can have one harmonized global solution in all markets, right? Think about that in liquid biopsy, that's, you know, doesn't require large bridging studies, that doesn't require some hybrid mix of, you know, seven or 10 laboratories around the world solving for a geographic or a global picture. I think it's a super compelling offering. It's also different in that for us, we're already embedded in so many of these accounts. Once we flip the switch from some of the pharma work into the clinical market, it's the same solution, right? We can start relatively quickly serving customers in that market post-approval for a drug. I think for us, again, that flywheel is hypercritical. We're really happy with the progress pharma has made.
I would say overall, you can hear from us, our confidence is up. Again, we're not declaring victory. We're just starting to show, kind of the right level of performance here, but it's certainly materially better than where we were, even 12 months ago.
That's great. Thanks so much.
Your next question comes from the line of Subbu Nambi from Guggenheim Securities. Please go ahead.
Good morning, guys. This is Ricki on for Subbu. Thanks for taking our questions. In the slides, you have the average price per analysis ranging from $100-$500. For the first quarter, just some back of the envelope math here, it comes in around $195 per sample analysis or per analysis. What is your expectation for the ASP trend through the remainder of the year, and what are you assuming for this in guidance?
George?
Yeah, if we exclude the pharma business and just look at the clinical business, our price sequentially was up $2. As Ross said, we're building in terms of, you know, selling more higher value tests. Our expectation is to continue to see that lift as the quarters go on during the year, and we continue to see the access clients, the 100 clients that we've booked ramp up. We're optimistic about ASP. Now, there's a balance there because obviously, you know, we are expecting growth now in our Latin America business and some emerging markets like India and Turkey. Still, in terms of modeling, we do expect the ASP to have lift in it for the remaining quarters of the year.
Got it. That's helpful. A lot's been asked on biopharma, but maybe just a slightly different approach of the question. You mentioned how this is a modest positive contributor to growth in the quarter, and there was lots of, you know, positive color on signings and outlook. Did the quarter turn out the way you expected, or was it above your expectations? Did it change what you're expecting for the remainder of the year? Thanks.
Yeah. As I mentioned before, we're quite conservative, Ricki. You know, despite the fact that pharma performed quite well, and I would say we're optimistic for continued sequential improvement and a step up in the second half of the year as well. You know, we did not change our expectation in the guide. I'll let George give some color. I think just fundamentally there, since we're early in that re-acceleration, we wanna remain conservative. What we're trying to convey is if we look at the picture in terms of And even for myself, I was at two large conferences during the quarter.
If we look at the level of interactions we're having with pharma and what we're discussing and the comprehensive nature of that, if we look at the RFPs we're responding to, if we're looking at what's in the pipeline and what's late stage, then what we've now executed on over the last several quarters in terms of new pharma customers as well as new contracts with our existing customers, it's a much better mix than what we've seen in the past, both across, frankly, diagnostics and data. We haven't talked about data or our evidence generation business in a while, but we're actually seeing as well there subtle improvements. I think overall, what we're trying to kind of point to is our increased confidence that that will improve, but we remain conservative, right, George.
Yeah.
In terms of how we factor that into the forecast.
Yeah. We're very pleased with the performance of the pharma business. As Ross said, I mean, it's really been building momentum. It's tangible. We can see it. And again, I think in 2026, it's gonna be an accelerator, but it's really gonna be an accelerator in 2027 and beyond, as that business just continues to build and build.
Operator?
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