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

• Market Cap: $11.52B
• Dividend Yield: N/A
• Average Volume (3M): 13.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.10
• Revenue Growth: 42.93%
• EPS Growth: -160.27%
• Country: US
• Employees: 2,400
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.24
• Shares Outstanding: 168,072,450
• 10 Day Avg. Volume: 9,868,836
• 30 Day Avg. Volume: 13,755,550
• PEG Ratio: -1.94
• Price to Book (P/B): -66.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -36.65
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 15.40
• Enterprise Value/Ebitda: -2.75
• 1Y Price Target: $68.86
• Price Target Upside: 8.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 51 Neutral
• Price Target: $64.00 ▲(0.72%Upside)

Tempus AI's overall score reflects its robust revenue growth and strategic partnerships, counterbalanced by financial instability, negative cash flows, and ongoing losses. The technical outlook is moderately positive, yet valuation concerns persist due to unprofitability.

Positive Factors

Financial Performance

Tempus achieved $1 billion of revenue faster than any other precision oncology lab company, showcasing its capital-efficient business model.

Revenue Growth

Ambry's $63M revenue beat expectations with approximately 23% underlying growth driven by strong unit volume growth in hereditary testing.

Strategic Partnerships

Tempus announced an agreement worth $200mm with AstraZeneca and Pathos AI to develop the largest multimodal foundation model in oncology, representing a first of its kind partnership type for Tempus.

Negative Factors

Cash Burn

Cash burn was worse than expected, attributed to several one-off factors.

Cash Flow

Quarterly cash flow from operations was roughly -$106 million, largely due to timing of cash flows and 'one-timers' with Ambry.

Revenue Shortfall

Total revenue fell short of estimates by roughly 2% on the data and services side.

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, Inc. generates revenue primarily through the sale and licensing of its AI software solutions and platforms. The company offers subscription-based models for its AI services, allowing businesses to access and integrate these technologies into their operations. Additionally, Tempus AI engages in strategic partnerships with other technology firms and industry leaders to co-develop and deploy tailored AI solutions. Consulting and implementation services also contribute to its revenue, as Tempus AI assists clients in customizing and optimizing AI technologies to suit their specific needs. The company may also earn through ongoing support and maintenance contracts, ensuring that clients receive continuous service and updates for their AI systems.

Tempus AI, Inc. Class A Financial Statement Overview

Summary

Tempus AI, Inc. demonstrates impressive revenue growth but faces critical financial challenges. Revenue increased substantially, yet profitability remains elusive as net profit margins are negative. The balance sheet reveals a high debt-to-equity ratio, signaling financial instability. Negative operating cash flows further highlight cash generation issues. Overall, financial performance indicates a need for improved cost management and operational efficiency.

Income Statement

Tempus AI, Inc. has shown impressive revenue growth over the years, with a notable increase from $62.1 million in 2019 to $693.4 million in 2024. However, despite the revenue uptick, the company continues to face significant challenges in managing profitability. The net profit margin remains negative due to persistent losses, and both EBIT and EBITDA margins reflect substantial operating losses. This indicates that while revenue generation is strong, cost management and operational efficiency need significant improvement.

Balance Sheet

The balance sheet reveals a concerning financial structure, with high total liabilities of $869.8 million against a minimal stockholders' equity of $56.3 million in 2024, leading to an unfavorable debt-to-equity ratio. The equity ratio is extremely low, indicating heavy reliance on debt financing. Although the company has managed to maintain a reasonable level of cash and short-term investments, the negative stockholders' equity in recent years signals financial instability and potential solvency risks.

Cash Flow

Operating cash flows are consistently negative, reflecting challenges in generating cash from core operations. Free cash flow has shown volatility, with significant negative figures, indicating that the company is struggling to cover its capital expenditures from its operations. Although there is a positive trend in financing cash flows, suggesting successful capital raising efforts, the heavy reliance on external financing poses a risk if such inflows are not sustainable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	803.32M	693.40M	531.82M	320.67M	257.85M	188.00M
Gross Profit	452.43M	381.11M	286.18M	121.68M	77.39M	22.83M
EBITDA	-636.80M	-610.42M	-133.33M	-236.85M	-219.52M	-169.37M
Net Income	-709.10M	-705.81M	-214.12M	-289.81M	-259.19M	-209.85M
Balance Sheet
Total Assets	1.54B	926.12M	564.05M	631.36M	531.35M	751.92M
Cash, Cash Equivalents and Short-Term Investments	218.79M	448.26M	197.57M	302.94M	277.69M	513.44M
Total Debt	857.75M	468.09M	488.14M	433.03M	238.95M	251.45M
Total Liabilities	1.22B	869.78M	1.95B	734.25M	440.55M	405.75M
Stockholders Equity	326.19M	56.34M	-1.38B	-102.88M	90.80M	346.17M
Cash Flow
Free Cash Flow	-212.68M	-211.17M	-248.95M	-186.58M	-223.75M	-219.98M
Operating Cash Flow	-193.29M	-189.04M	-214.34M	-168.20M	-211.98M	-206.56M
Investing Cash Flow	-523.20M	-130.39M	-40.31M	-57.94M	-21.72M	-13.42M
Financing Cash Flow	788.75M	494.33M	117.55M	251.39M	-2.04M	506.11M

Tempus AI, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 63.54
• 50DMA: Positive
• 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 63.54 is below the 20-day moving average (MA) of 66.79, above the 50-day MA of 60.72, and above the 200-day MA of 53.39, indicating a neutral trend. The MACD of 1.63 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.58 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
NTRA	73 Outperform	$22.93B	―	-18.66%	―	51.50%	53.23%
QGEN	72 Outperform	$10.34B	115.14	2.67%	2.76%	3.31%	-72.63%
GH	57 Neutral	$6.30B	―	-4584.47%	―	28.20%	13.87%
Sector *	56 Neutral	$5.74B	26.31	-31.28%	5.61%	10.88%	-29.73%
EXAS	54 Neutral	$10.12B	―	-36.89%	―	11.57%	-315.25%
ILMN	54 Neutral	$15.01B	―	-23.82%	―	-3.47%	25.55%
TEM	51 Neutral	$11.52B	―	-1252.79%	―	42.93%	-160.27%

Tempus AI, Inc. Class A Corporate Events

Tempus AI Approves Reincorporation and Elects Directors

Tempus AI, Inc. held its 2025 Annual Meeting of Stockholders on May 20, 2025, where key decisions were made regarding the company’s governance and operational structure. During the meeting, stockholders elected nine directors to serve until the 2026 Annual Meeting, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the reincorporation of the company from Delaware to Nevada. These decisions reflect strategic moves to potentially enhance the company’s governance and operational flexibility.

The most recent analyst rating on (TEM) stock is a Buy with a $46.00 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 Reports Strong Q1 2025 Financial Results

On May 6, 2025, Tempus AI, Inc. reported its financial results for the first quarter of 2025, showcasing a 75.4% increase in revenue year-over-year to $255.7 million and a 99.8% rise in gross profit. The company announced strategic collaborations with AstraZeneca and Pathos to develop a multimodal foundation model in oncology, projected to bring in $200 million over the next three years. Tempus also completed the acquisition of Ambry Genetics and disclosed a collaboration with Illumina to enhance genomic algorithms. Despite reporting a net loss of $68 million, Tempus improved its adjusted EBITDA significantly compared to the previous year and increased its full-year revenue guidance to $1.25 billion, representing an 80% growth year-over-year.