Tempus AI: Q2 Earnings Mark a Turning Point in AI-Powered Healthcare Strategy

Published 08/08/2025, 15:16
Updated 08/08/2025, 16:06

Tempus AI Inc (NASDAQ:TEM) has released its financial results for the second quarter of 2025, showcasing significant growth in revenue and improved adjusted EBITDA. The company is also optimistic about its future financial performance, as reflected in its updated guidance.

Tempus AI, Inc. Reports Better-Than-Expected Q2 Results

Tempus AI, Inc. has reported impressive financial results for the second quarter of 2025, marking a period of substantial growth and improved financial health. The company recorded a revenue of $314.6 million, an 89.6% increase from the same period last year. This figure significantly surpasses the expected revenue of $297.8 million. The company’s gross profit also saw a remarkable increase of 158.3%, reaching $195.0 million compared to $75.5 million in the second quarter of 2024.

Tempus AI’s net loss for the quarter was $42.8 million, a significant improvement from the $552.2 million net loss recorded in the same quarter of the previous year. The net loss per share was $0.25, aligning with expectations and showing a stark improvement from the $6.86 loss per share in Q2 2024. The adjusted EBITDA for the quarter was a negative $5.6 million, a notable improvement from the negative $31.2 million reported in the second quarter of 2024.

Eric Lefkofsky, Founder and CEO of Tempus, highlighted the company’s performance, noting the growth in clinical volumes and the delivery of over 212,000 NGS tests during the quarter. The company’s leadership in artificial intelligence and its progress towards building the largest foundation model in oncology were also key factors in its success. The company’s genomics revenue, which increased by 115.3% year-over-year to $241.8 million, played a significant role in driving overall revenue growth.

Tempus AI Raises Full-Year 2025 Revenue Guidance to Approx. $1.26 Billion

Looking ahead, Tempus AI has raised its full-year 2025 revenue guidance to approximately $1.26 billion, reflecting an anticipated 82% annual growth. The company also expects an adjusted EBITDA of $5 million for the full year, representing an improvement of approximately $110 million over 2024. This optimistic outlook is supported by Tempus AI’s strategic initiatives and financial flexibility.

Tempus AI’s recent issuance of $750 million of 0.75% convertible senior notes has enhanced its balance sheet, allowing the company to replace a portion of its existing term loan with a lower interest debt instrument. The company ended the quarter with $293.0 million in cash and marketable securities, marking an improvement of approximately $70 million over the previous quarter.

Tempus AI continues to expand its AI-powered clinical tools, extending its Tempus Next™ care pathway intelligence platform into breast cancer and integrating its Tempus One™ AI clinical assistant into leading electronic health record systems. These advancements, along with the introduction of Tempus xM™ for treatment and response monitoring, demonstrate the company’s commitment to innovation and its potential for sustained growth.

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