Tempus AI, Inc. Class A (TEM) AI Stock Analysis

• Market Cap: $14.68B
• Dividend Yield: N/A
• Average Volume (3M): 7.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.05
• Revenue Growth: 72.58%
• EPS Growth: 76.81%
• Country: US
• Employees: 2,400
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.11
• Shares Outstanding: 168,683,760
• 10 Day Avg. Volume: 5,773,076
• 30 Day Avg. Volume: 7,022,666
• PEG Ratio: -0.02
• Price to Book (P/B): 71.82
• Price to Sales (P/S): 5.84
• P/FCF Ratio: -19.16
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $91.36
• Price Target Upside: 11.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $86.00 ▲(4.55% Upside)

Tempus AI, Inc. demonstrates strong growth potential, particularly in Genomics and data licensing, as highlighted in the earnings call. However, significant profitability and cash flow challenges, coupled with a negative P/E ratio, weigh heavily on the stock's valuation. Technical indicators provide a mixed outlook, with the stock trading above its long-term average but lacking strong momentum signals.

Positive Factors

Revenue Growth

The significant revenue growth projection indicates robust demand for Tempus AI's solutions, suggesting strong market positioning and potential for sustained expansion.

Strategic Partnerships

The collaboration with Whitehawk Therapeutics enhances Tempus AI's market reach and strengthens its position in oncology, a key growth area, by leveraging its data capabilities.

Positive Adjusted EBITDA

Achieving positive adjusted EBITDA marks a significant milestone, reflecting improved operational efficiency and the potential for future profitability.

Negative Factors

Profitability Challenges

Persistent profitability issues indicate challenges in cost management, which could hinder long-term financial health and shareholder returns.

Cash Flow Inefficiencies

Negative cash flows highlight inefficiencies in cash generation, potentially limiting Tempus AI's ability to invest in growth and manage debt effectively.

Acquisition Costs

The financial drag from the Paige acquisition could strain resources and delay profitability, impacting Tempus AI's financial flexibility and strategic initiatives.

Tempus AI, Inc. Class A Business Overview & Revenue Model

Company Description

Tempus AI, Inc. Class A (TEM) is a technology company that specializes in leveraging artificial intelligence to enhance decision-making in various sectors, including healthcare and finance. The company develops advanced data analytics and machine learning platforms that provide actionable insights, optimize operational efficiency, and improve outcomes for its clients. Tempus AI's core products include AI-driven tools for predictive analytics, data management solutions, and customizable software designed to meet the specific needs of businesses across multiple industries.

How the Company Makes Money

Tempus AI generates revenue primarily through the sale of its AI-driven software solutions and analytics services. The company's revenue model includes subscription-based pricing for its software platforms, which provides clients with ongoing access to updates and support. Additionally, Tempus AI offers consulting services that help organizations integrate AI technologies into their operations, creating another significant revenue stream. Key partnerships with healthcare providers and financial institutions also contribute to its earnings, as these collaborations often lead to long-term contracts and joint ventures that expand the company's market reach.

Tempus AI, Inc. Class A Financial Statement Overview

Summary

Tempus AI, Inc. shows strong revenue growth but faces significant challenges with profitability and cash flow. Improvements in the debt-to-equity ratio are positive, yet negative returns on equity and cash flow inefficiencies remain concerns.

Income Statement

Tempus AI, Inc. shows a strong revenue growth rate of 18.51% in the TTM, indicating a positive trajectory in sales. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has improved over time, but the persistent negative net profit margin highlights ongoing challenges in managing costs and achieving profitability.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.18 in the TTM, reflecting better financial stability compared to previous years. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is relatively stable, suggesting a balanced asset structure, but the negative ROE is a concern.

Cash Flow

Cash flow metrics indicate challenges, with negative operating and free cash flows. The free cash flow growth rate is negative in the TTM, and the operating cash flow to net income ratio is also negative, highlighting inefficiencies in cash generation. Despite these issues, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	693.40M	531.82M	320.67M	257.85M	188.00M
Gross Profit	707.87M	381.11M	286.18M	130.19M	83.64M	28.71M
EBITDA	-113.43M	-610.42M	-133.33M	-236.85M	-219.52M	-169.37M
Net Income	-203.88M	-705.81M	-214.12M	-289.81M	-259.19M	-209.85M
Balance Sheet
Total Assets	2.28B	926.12M	564.05M	631.36M	531.35M	751.92M
Cash, Cash Equivalents and Short-Term Investments	759.64M	448.26M	197.57M	302.94M	277.69M	513.44M
Total Debt	817.00M	468.09M	488.14M	433.03M	238.95M	251.45M
Total Liabilities	1.77B	869.78M	1.95B	1.76B	1.34B	1.26B
Stockholders Equity	507.82M	56.34M	-1.38B	-1.13B	-807.49M	-512.98M
Cash Flow
Free Cash Flow	-63.51M	-211.17M	-248.95M	-186.58M	-223.75M	-219.98M
Operating Cash Flow	-39.25M	-189.04M	-214.34M	-168.20M	-211.98M	-206.56M
Investing Cash Flow	-395.60M	-130.39M	-40.31M	-57.94M	-21.72M	-13.42M
Financing Cash Flow	887.55M	494.33M	117.55M	251.39M	-2.04M	506.11M

Tempus AI, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 82.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEM, the sentiment is Neutral. The current price of 82.26 is below the 20-day moving average (MA) of 89.62, below the 50-day MA of 85.97, and above the 200-day MA of 65.92, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 30.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEM.

Tempus AI, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	75 Outperform	$12.33B	56.50	24.25%	―	19.45%	46.46%
OMCL	69 Neutral	$1.58B	80.91	1.62%	―	10.67%	―
GDRX	65 Neutral	$1.13B	35.13	4.90%	―	1.30%	―
HNGE	64 Neutral	$4.19B	―	―	―	50.67%	-578.03%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TDOC	54 Neutral	$1.42B	―	-15.42%	―	-2.37%	77.85%
TEM	53 Neutral	$14.68B	―	-72.61%	―	72.58%	76.81%

Tempus AI, Inc. Class A Corporate Events

Tempus AI Reports Strong Q3 2025 Growth

Tempus AI, Inc. is a technology company at the forefront of precision medicine, leveraging artificial intelligence to enhance patient care and therapeutic development. In its latest earnings report for Q3 2025, Tempus AI, Inc. showcased significant growth, with revenues reaching $334.2 million, marking an 84.7% increase year-over-year. The company’s Genomics business was a major contributor, with revenues soaring by 117.2% to $252.9 million, while its Data and Services segment grew by 26.1% to $81.3 million. Tempus also achieved a positive Adjusted EBITDA of $1.5 million, a notable improvement from a loss in the previous year. The company continues to expand its capabilities, as evidenced by its acquisition of Paige, an AI company specializing in digital pathology, and its selection by ARPA-H for a significant cancer therapy program. Looking ahead, Tempus AI, Inc. remains optimistic about its growth trajectory, aiming for approximately $1.265 billion in revenue by the end of 2025, driven by ongoing investments in AI and precision medicine solutions.

Tempus AI Reports Strong Q3 2025 Financial Growth

Tempus AI, Inc. reported significant financial growth for the third quarter of 2025, with revenue increasing by 84.7% year-over-year to $334.2 million and gross profit improving by 98.4%. The company delivered 217,000 clinical tests, with notable growth in oncology and hereditary testing. Despite a net loss of $80 million, Tempus achieved a positive adjusted EBITDA of $1.5 million, marking an important milestone. The company also expanded its operations by acquiring Paige, an AI company specializing in digital pathology, and received FDA clearance for several AI-powered medical devices. Tempus increased its full-year revenue guidance to $1.265 billion, representing approximately 80% growth year-over-year.

The most recent analyst rating on (TEM) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Tempus AI, Inc. Class A stock, see the TEM Stock Forecast page.

Tempus AI Files Prospectus for Stock Resale

On August 8, 2025, Tempus AI, Inc. filed an automatic shelf registration statement with the SEC, followed by a prospectus supplement on August 27, 2025, for the resale of up to 1,268,033 shares of its Class A common stock. The company also provided a legal opinion from its counsel regarding the legality of these shares, potentially impacting its market operations and stakeholder interests.

The most recent analyst rating on (TEM) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Tempus AI, Inc. Class A stock, see the TEM Stock Forecast page.

Tempus AI’s Earnings Call: Revenue Soars, Challenges Remain

Tempus AI, Inc. Class A recently held its earnings call, revealing an overall positive sentiment. The company showcased significant revenue growth, improvements in gross profit and EBITDA, and strong performance in core business areas such as Genomics and Data Services. However, challenges remain in achieving breakeven for adjusted EBITDA and securing reimbursement for certain tests.

Tempus AI Reports Strong Q2 2025 Growth

Tempus AI, Inc. is a technology company specializing in artificial intelligence to enhance precision medicine and patient care, primarily operating in the healthcare sector with a focus on genomics and data services.

Tempus AI Reports Strong Q2 2025 Financial Growth

On August 8, 2025, Tempus AI, Inc. reported significant financial growth for the second quarter of 2025, with a revenue increase of 89.6% year-over-year, reaching $314.6 million. The company saw substantial growth in genomics and data services, contributing to a gross profit increase of 158.3%. Tempus also issued $750 million in convertible senior notes to enhance financial flexibility. The company is expanding its AI-powered clinical tools and has reached a milestone of over 40 million clinical patient records, reflecting its leadership in AI and oncology as it approaches its 10th anniversary.

The most recent analyst rating on (TEM) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Tempus AI, Inc. Class A stock, see the TEM Stock Forecast page.