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

• Market Cap: $13.86B
• Dividend Yield: N/A
• Average Volume (3M): 5.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.08
• 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: 172,863,460
• 10 Day Avg. Volume: 4,448,524
• 30 Day Avg. Volume: 5,911,848
• 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: 1.06
• Enterprise Value/Revenue: 13.30
• Enterprise Value/Gross Profit: 21.67
• Enterprise Value/Ebitda: -163.81
• 1Y Price Target: $90.64
• Price Target Upside: 22.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $82.00 ▲(10.71% Upside)

Tempus AI, Inc. has strong growth prospects, particularly in Genomics and data licensing, as highlighted in the earnings call. However, significant financial challenges, including high leverage, negative cash flows, and a negative P/E ratio, weigh heavily on the stock's overall score. Technical indicators suggest weak momentum, further impacting the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Positive Adjusted EBITDA

Achieving positive adjusted EBITDA reflects improved operational efficiency and financial health, enhancing future profitability prospects.

Data Licensing Growth

Strong growth in data licensing underscores the company's ability to monetize its data assets, providing a stable revenue stream.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially hindering the company's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, which could impact the company's ability to sustain operations and fund future growth.

Sales Force Disruption

Sales force disruptions can lead to short-term revenue volatility and affect customer relationships, impacting long-term sales growth.

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

Company Description

Tempus AI, Inc. operates as a healthcare technology company. It engages in providing next generation sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing to healthcare providers, pharmaceutical companies, biotechnology companies, researchers, and other third parties. The company offers Insights, a license library of linked clinical, molecular, and imaging de-identified data, as well as a suite of analytical services to analytic and cloud-and-compute tools to pharmaceutical and biotechnology companies; and Trials that provides clinical trial matching services to pharmaceutical companies. In addition, it operates Next; Algos, a suite of algorithmic tests in oncology; Hub, a desktop and mobile platform for ordering, managing, and receiving tests and patient results; and Lens, a platform for researchers and scientists to find, access, and analyze Tempus data. The company has a strategic collaborations agreement with AstraZeneca and Pathos AI, Inc. to develop therapeutic programs in oncology. The company was formerly known as Tempus Labs, Inc. and changed its name to Tempus AI, Inc. in January 2023. Tempus AI, Inc. was incorporated in 2015 and is headquartered in Chicago, Illinois.

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 struggles with profitability and financial stability. High leverage and negative cash flows are significant concerns, although improvements in gross profit margin and debt management are positive signs.

Income Statement

Tempus AI, Inc. shows a strong revenue growth rate of 16.1% TTM, indicating positive momentum. However, the company struggles with profitability, evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin has improved to 64.05% TTM, but overall profitability remains a concern.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 1.61 TTM, although improved from previous years. The negative return on equity and low equity ratio highlight financial instability and potential risks associated with high debt levels.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some efficiency in cash usage relative to net losses. However, the negative growth in free cash flow TTM suggests ongoing cash management issues.

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	678.21M	381.11M	286.18M	130.19M	83.64M	28.71M
EBITDA	-89.71M	-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	1.34B	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	-248.10M	-211.17M	-248.95M	-186.58M	-223.75M	-219.98M
Operating Cash Flow	-220.55M	-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: 74.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 74.07 is above the 20-day moving average (MA) of 73.52, below the 50-day MA of 82.60, and above the 200-day MA of 66.75, indicating a neutral trend. The MACD of -2.31 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 77.43 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	72 Outperform	$9.68B	41.03	24.61%	―	20.21%	44.14%
OMCL	69 Neutral	$1.64B	85.62	1.62%	―	10.67%	―
GDRX	65 Neutral	$953.81M	32.71	4.90%	―	1.30%	―
GH	58 Neutral	$14.03B	―	―	―	30.38%	24.17%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TEM	49 Neutral	$13.86B	―	-72.61%	―	72.58%	76.81%
TDOC	47 Neutral	$1.35B	―	-15.42%	―	-2.37%	77.85%

Tempus AI, Inc. Class A Corporate Events

Tempus AI’s Earnings Call Highlights Strong Growth Amid Challenges

Tempus AI, Inc. Class A recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company reported strong growth in its Genomics segment and significant achievements, such as positive adjusted EBITDA and successful data licensing deals. However, disruptions caused by changes in the sales force and costs associated with the Paige acquisition were noted as challenges. Overall, the positive achievements and strong growth trajectory indicate a healthy business outlook.

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.