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

• Market Cap: $13.18B
• Dividend Yield: N/A
• Average Volume (3M): 10.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.17
• Revenue Growth: 59.84%
• EPS Growth: 76.46%
• Country: US
• Employees: 2,400
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.22
• Shares Outstanding: 168,683,760
• 10 Day Avg. Volume: 11,273,483
• 30 Day Avg. Volume: 10,782,633
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 12.16
• Enterprise Value/Gross Profit: 19.46
• Enterprise Value/Ebitda: -66.47
• 1Y Price Target: $73.82
• Price Target Upside: -2.69% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 65 Neutral
• Price Target: $87.00 ▲(14.68% Upside)

Tempus AI, Inc. benefits from strong revenue growth and positive technical indicators, but faces challenges in profitability and valuation. The earnings call and corporate events highlight strategic progress and financial improvements, yet ongoing issues with reimbursement and ASP growth remain.

Positive Factors

Business Development

Tempus works with 19 of the top 20 pharma companies, highlighting its strong industry connections.

Revenue Growth

Tempus raised its FY'25 revenue guide by $10M, which looks conservative given the expected lift in data services.

Strategic Partnerships

Large recent $200M deal with AZN underscores the value of its data asset.

Negative Factors

Operational Challenges

The lack of quarterly bookings, reliance upon Pathos (a related party relationship) for growth & flattish Performance Obligations (ex Pathos) are drawbacks.

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 its data analytics and software solutions offered to healthcare providers, pharmaceutical companies, and research institutions. The company's revenue model includes subscription fees for its analytics platforms, service fees for consulting and implementation of its technology, and partnerships with pharmaceutical companies for data-driven research and development. Additionally, Tempus collaborates with healthcare systems to provide genomic sequencing and analysis services, which further contributes to its earnings. Strategic partnerships with key players in the healthcare sector help expand its reach and enhance its service offerings, driving additional revenue streams.

Tempus AI, Inc. Class A Financial Statement Overview

Summary

Tempus AI, Inc. is experiencing strong revenue growth, but profitability remains a significant challenge. Improvements in the debt-to-equity ratio suggest better financial management, yet the company struggles with negative returns on equity and cash flow inefficiencies. Continued focus on cost management and cash flow optimization is crucial for future stability and growth.

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	951.98M	693.40M	531.82M	320.67M	257.85M	188.00M
Gross Profit	594.92M	381.11M	286.18M	121.68M	77.39M	22.83M
EBITDA	-174.20M	-610.42M	-133.33M	-236.85M	-219.52M	-169.37M
Net Income	-199.73M	-705.81M	-214.12M	-289.81M	-259.19M	-209.85M
Balance Sheet
Total Assets	1.63B	926.12M	564.05M	631.36M	531.35M	751.92M
Cash, Cash Equivalents and Short-Term Investments	291.31M	448.26M	197.57M	302.94M	277.69M	513.44M
Total Debt	853.25M	468.09M	488.14M	433.03M	238.95M	251.45M
Total Liabilities	1.32B	869.78M	1.95B	1.76B	1.34B	1.26B
Stockholders Equity	309.56M	56.34M	-1.38B	-1.13B	-807.49M	-512.98M
Cash Flow
Free Cash Flow	-69.64M	-211.17M	-248.95M	-186.58M	-223.75M	-219.98M
Operating Cash Flow	-52.05M	-189.04M	-214.34M	-168.20M	-211.98M	-206.56M
Investing Cash Flow	-524.70M	-130.39M	-40.31M	-57.94M	-21.72M	-13.42M
Financing Cash Flow	-8.30M	494.33M	117.55M	251.39M	-2.04M	506.11M

Tempus AI, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.86
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 75.86 is above the 20-day moving average (MA) of 69.48, above the 50-day MA of 64.47, and above the 200-day MA of 56.44, indicating a bullish trend. The MACD of 3.87 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 39.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
QGEN	70 Outperform	$10.07B	27.22	10.81%	2.70%	5.15%	412.41%
NTRA	70 Neutral	$23.09B	―	-24.32%	―	44.38%	22.87%
ILMN	65 Neutral	$15.36B	12.66	68.11%	―	-3.32%	―
TEM	65 Neutral	$13.18B	―	-97.95%	―	59.84%	76.46%
GH	57 Neutral	$8.41B	―	-4584.47%	―	28.74%	18.25%
Sector *	55 Neutral	$6.43B	-2.52	-4.30%	5.96%	15.30%	11.62%
EXAS	48 Neutral	$8.98B	―	-35.51%	―	12.56%	-464.28%

Tempus AI, Inc. Class A Corporate Events

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.

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.

Tempus AI Announces $400 Million Convertible Notes Offering

On June 30, 2025, Tempus AI, Inc. announced a proposed offering of $400 million in Convertible Senior Notes due in 2030, with an option for an additional $60 million. The proceeds are intended to repay outstanding term loans, reduce interest expenses, and support general corporate purposes, including strategic investments. The offering aims to optimize Tempus’s capital structure and enhance financial flexibility, potentially impacting the market price of its Class A common stock and the conversion price of the Notes.