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Tempus AI, Inc. Class A (TEM)
NASDAQ:TEM
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Tempus AI, Inc. Class A
(NASDAQ:TEM)
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Rating:59Neutral
Price Target:
$93.00
▲(8.30% Upside)
The overall stock score for Tempus AI, Inc. is driven by strong technical indicators and positive earnings call highlights, including significant revenue growth and strategic deals. However, the score is tempered by poor financial performance, particularly in profitability and cash flow, and a weak valuation due to negative earnings.
Positive Factors
Revenue Growth
Strong revenue growth, particularly in Genomics, indicates robust demand and market expansion, supporting long-term business sustainability.
FDA Clearance
FDA clearance for Tempus Pixel enhances product offerings, potentially increasing market share in the cardiac imaging sector and driving future growth.
Strategic Partnerships
The partnership with AstraZeneca strengthens Tempus AI's data business, enhancing its competitive edge and fostering long-term strategic growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues and cash flow inefficiencies could hinder Tempus AI's ability to invest in growth, impacting its long-term financial health.
Reimbursement Challenges
Delays in achieving reimbursement for the MRD portfolio could limit revenue potential and slow market penetration, affecting future growth.
Pressure on ASP
Pressure on average selling prices due to product mix shifts may reduce revenue per unit, impacting overall profitability and financial performance.
Tempus AI, Inc. Class A (TEM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.92B
Dividend YieldN/A
Average Volume (3M)11.40M
Price to Earnings (P/E)―
Beta (1Y)3.17
Revenue Growth59.84%
EPS Growth76.46%
CountryUS
Employees2,400
SectorGeneral
Sector StrengthN/A
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.22
Shares Outstanding168,683,760
10 Day Avg. Volume9,425,048
30 Day Avg. Volume11,399,936
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue12.16
Enterprise Value/Gross Profit20.03
Enterprise Value/Ebitda-112.04
Forecast
1Y Price Target
$75.09Price Target Upside-12.55% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Tempus AI, Inc. Class A Business Overview & Revenue Model
Company DescriptionTempus 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 MoneyTempus 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 Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, improvement in adjusted EBITDA, and strong performance in oncology and hereditary testing. The company also made successful financing and signed a large data and AI deal, positioning them well for the future. However, there are challenges in achieving reimbursement for the MRD portfolio and pressure on ASP growth due to product mix shifts.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue increased 89.6% to $314.6 million, with Genomics revenue up 115% to $241.8 million and Data and Services revenue up 35.7% to approximately $73 million.
Improvement in Adjusted EBITDA
Adjusted EBITDA improved from a negative $16 million last quarter to a negative $5.6 million this quarter, showing progress towards breakeven.
Strong Performance in Oncology and Hereditary Testing
Oncology volume increased from 20% to 26%, and hereditary testing was at 32% for the quarter.
Successful Financing Activity
Issued $750 million of 0.75% convertible notes, improving the balance sheet and reducing interest expenses.
Large Data and AI Deal
Signed a significant deal with AstraZeneca for a foundation model, boosting the data business.
Negative Updates
Challenges in Achieving Reimbursement
MRD portfolio is growing but volume is being gated until reimbursement is achieved, which is anticipated by the end of 2025.
Pressure on ASP (Average Selling Price)
Mix shift to lower reimbursement assays like xM and xG is impacting ASP growth, though incremental gains are expected.
Company Guidance
During the Tempus AI Second Quarter 2025 Financial Results Conference Call, several key metrics and guidance were discussed. Revenue for the quarter increased by 89.6% to $314.6 million, with Genomics revenue surging by 115% to $241.8 million, driven by oncology volume growth from 20% to 26%. Hereditary testing grew to 32%, while Data and Services revenue rose by 35.7% to approximately $73 million, led by Insights with nearly 41% growth. The quarterly gross profit expanded by roughly 160% to $195 million. Tempus reported a sequential improvement in adjusted EBITDA, reducing it from negative $16 million in the previous quarter to negative $5.6 million. The company also raised its full-year 2025 revenue guidance to $1.26 billion and maintained its adjusted EBITDA forecast of approximately $5 million, reflecting a $110 million improvement over the previous year. Additionally, Tempus strengthened its balance sheet by issuing $750 million of 0.75% convertible notes, resulting in significant cash savings and ending the quarter with $290 million in cash and marketable securities.Tempus AI, Inc. Class A Financial Statement Overview
Summary
Tempus AI, Inc. shows strong revenue growth but struggles with profitability, negative returns on equity, and cash flow inefficiencies. Improvements in debt-to-equity ratio suggest better financial management.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.45
Neutral
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.50
Neutral
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.40
Negative
| 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 | 578.14M | 381.11M | 286.18M | 130.19M | 83.64M | 28.71M |
| EBITDA | -103.35M | -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
Positive
85.87
Price Trends
70.66
Positive
66.51
Positive
58.11
Positive
Market Momentum
4.70
Negative
61.29
Neutral
64.39
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 85.87 is above the 20-day moving average (MA) of 81.08, above the 50-day MA of 70.66, and above the 200-day MA of 58.11, indicating a bullish trend. The MACD of 4.70 indicates Negative momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 64.39 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 Risk Analysis
Tempus AI, Inc. Class A disclosed 101 risk factors in its most recent earnings report. Tempus AI, Inc. Class A reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tempus AI, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 13.58B | 62.24 | 22.93% | ― | 19.45% | 46.46% | |
66 Neutral | 1.41B | 43.86 | 6.67% | ― | 3.20% | 0.00% | |
66 Neutral | 1.45B | 64.10 | 1.83% | ― | 6.39% | 0.00% | |
63 Neutral | 4.54B | -10.59 | -2.86% | ― | 43.35% | -430.79% | |
59 Neutral | $14.92B | ― | -97.95% | ― | 59.84% | 76.46% | |
51 Neutral | 1.45B | -6.86 | -14.58% | ― | -2.57% | 79.86% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
TEM
Tempus AI, Inc. Class A
85.87
34.65
67.65%
OMCL
Omnicell
31.62
-11.32
-26.36%
TDOC
Teladoc
8.19
-0.63
-7.14%
GDRX
GoodRx Holdings
4.07
-2.69
-39.79%
DOCS
Doximity
72.50
31.13
75.25%
HNGE
Hinge Health, Inc. Class A
57.84
17.68
44.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.