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

• Market Cap: $11.47B
• Dividend Yield: N/A
• Average Volume (3M): 4.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.10
• 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: 3,452,453
• 30 Day Avg. Volume: 4,294,284
• PEG Ratio: -0.05
• Price to Book (P/B): 97.15
• Price to Sales (P/S): 7.89
• P/FCF Ratio: -25.92
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 13.30
• Enterprise Value/Gross Profit: 21.67
• Enterprise Value/Ebitda: -163.81
• 1Y Price Target: $89.27
• Price Target Upside: 38.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $78.00 ▲(21.01% Upside)

Tempus AI's overall stock score is driven by strong revenue growth and positive developments in the earnings call and corporate events. However, financial performance concerns, challenging valuation, and mixed technical signals weigh on the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Tempus AI's solutions, supporting long-term market expansion and business sustainability.

Positive Adjusted EBITDA

Achieving positive adjusted EBITDA demonstrates improved operational efficiency and financial health, enhancing long-term profitability prospects.

Strategic Acquisitions

The acquisition of Paige enhances Tempus AI's capabilities in digital pathology, potentially opening new revenue streams and strengthening market position.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Tempus AI's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows suggest challenges in covering operational expenses and funding growth initiatives, posing risks to long-term financial stability.

Profitability Concerns

Ongoing profitability issues highlight potential challenges in achieving sustainable margins, which could affect long-term financial performance.

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 struggles with profitability and financial stability. High leverage and negative cash flows pose risks, 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: Negative
• Last Price: 64.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEM, the sentiment is Negative. The current price of 64.46 is below the 20-day moving average (MA) of 72.74, below the 50-day MA of 78.21, and below the 200-day MA of 67.21, indicating a bearish trend. The MACD of -3.16 indicates Positive momentum. The RSI at 34.06 is Neutral, neither overbought nor oversold. The STOCH value of 8.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$8.22B	34.82	24.61%	―	20.21%	44.14%
OMCL	71 Outperform	$2.10B	109.85	1.62%	―	10.67%	―
GDRX	65 Neutral	$940.23M	32.25	4.90%	―	1.30%	―
GH	61 Neutral	$12.90B	-31.04	―	―	30.38%	24.17%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TEM	52 Neutral	$11.47B	-54.46	-72.61%	―	72.58%	76.81%
TDOC	47 Neutral	$1.28B	-5.65	-15.42%	―	-2.37%	77.85%

Tempus AI, Inc. Class A Corporate Events

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.