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

• Market Cap: $10.53B
• Dividend Yield: N/A
• Average Volume (3M): 8.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.14
• 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: 168,072,450
• 10 Day Avg. Volume: 8,972,397
• 30 Day Avg. Volume: 8,770,627
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 14.41
• Enterprise Value/Gross Profit: 25.59
• Enterprise Value/Ebitda: -18.18
• 1Y Price Target: $68.60
• Price Target Upside: 3.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 50 Neutral
• Price Target: $61.00 ▼(-8.05% Downside)

The overall stock score reflects strong revenue growth and positive sentiment from the earnings call, balanced by significant financial risks and valuation concerns. The company's high leverage and negative equity are major risks, while technical indicators show mixed momentum.

Positive Factors

Market Position

Tempus AI is well positioned for continued growth at scale.

Revenue Growth

Tempus's second-quarter results were in line with or ahead of all key metrics.

Strategic Acquisition

The strategic rationale of the Ambry acquisition is agreed upon, with potential to expand capabilities in the oncology space.

Negative Factors

Cash Flow Concerns

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

Financial Disclosure

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

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 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

Despite strong revenue growth, Tempus AI, Inc. faces significant financial challenges with persistent losses, high leverage, and negative cash flows, indicating financial instability and potential solvency risks.

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

Tempus AI, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.34
• 50DMA: Negative
• 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 66.34 is above the 20-day moving average (MA) of 59.50, above the 50-day MA of 62.20, and above the 200-day MA of 54.68, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 54.62 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	72 Outperform	$10.40B	28.10	10.81%	2.61%	5.15%	412.41%
ILMN	67 Neutral	$14.57B	12.00	68.11%	―	-3.32%	―
NTRA	66 Neutral	$21.55B	―	-24.32%	―	44.38%	22.87%
Sector *	56 Neutral	$6.76B	7.33	-8.93%	6.21%	18.12%	-5.11%
EXAS	52 Neutral	$7.75B	―	-35.51%	―	12.56%	-464.28%
TEM	50 Neutral	$10.53B	―	-97.95%	―	59.84%	76.46%
GH	49 Neutral	$6.83B	―	-4584.47%	―	28.74%	18.25%

Tempus AI, Inc. Class A Corporate Events

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.

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.

The most recent analyst rating on (TEM) stock is a Buy with a $45.00 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 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.