Business Description
Tempus AI, Inc. operates as a healthcare technology company in the United States. It offers the Tempus platform, a closed-loop, full-stack, bi-directional integrations between a clinician's desktop and its laboratory diagnostic capabilities, analytics platform, and repository of multimodal data; and Hub, a clinical application for physicians and other healthcare providers for use in the diagnostics product line as an end-to-end application for healthcare providers for NGS tests. The company also provides Lens, a software application for life sciences and advanced precision research; diagnostics services, such as NGS diagnostics, PCR profiling, and other anatomic and molecular pathology tests; and large-panel solid tumor and hematologic testing through multiple assays, with its core clinical assay (xT and xR) offering large panel DNA, RNA full transcriptome, and incidental germline findings through normal blood or saliva analyses. In addition, it provides genetic tests focused on inherited conditions; an nP assay for pharmacogenomic testing for patients with psychiatric conditions, including depression, general anxiety disorder, bipolar disorder, and other relevant diagnoses; Insights, which licenses libraries of linked, de-identified clinical, molecular, and imaging data; Organoids, a tumor derived biological modeling. Further, the company offers Trials for clinical trial matching services; Next, an AI platform; Algos, an algorithm-based diagnostics application. It has Strategic Collaborations with AstraZeneca AB, Pathos AI, Inc., GlaxoSmithKline, Merck, and Recursion Pharmaceuticals, Inc. Additionally, it also has a strategic collaboration with Blood Cancer United to develop registry for pediatric acute myeloid leukemia. 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.
Business History
Generated: Apr 23, 2026 9:39amPrice Overview
Last updated: Jun 28, 2026 11:52am (just now)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): -1.41
Total Equity: $491.33M
Shares: 174,264,000
Total Debt: $1.24B
Cash: $604.79M
EBITDA: -$222.36M
Total Debt: $1.24B
Cash: $604.79M
Revenue: $1.27B
Shares: 174,264,000
Revenue: $1.27B
Revenue: $1.27B
Revenue: $1.27B
Total Equity: $491.33M
Tax Rate: 17.4%
Equity: $491.33M
Total Debt: $1.24B
Cash: $604.79M
Current Liabilities: $372.39M
Long-Term Debt: $1.24B
Total Debt: $1.24B
Total Equity: $491.33M
Shares: 174,264,000
Shares: 174,264,000
CapEx: -$21.05M
Shares: 174,264,000
Stock Price: $56.14
Net Income: -$245.03M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 27, 2026 3:46pm (20h ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $257.9M | $320.7M | $531.8M | $693.4M | $1.3B |
| Cost of Revenue | $174.2M | $190.5M | $245.6M | $312.3M | $386.1M |
| Gross Profit | $83.6M | $130.2M | $286.2M | $381.1M | $885.7M |
| Operating Expenses | $327.4M | $395.6M | $482.3M | $1.1B | $1.1B |
| Operating Income | -$243.7M | -$265.4M | -$196.1M | -$691.1M | -$238.6M |
| Net Income | -$259.2M | -$289.8M | -$214.1M | -$705.8M | -$245.0M |
| EBITDA | -$219.5M | -$236.8M | -$133.3M | -$610.4M | -$222.4M |
| EPS | $-1.75 | $-1.97 | $-1.73 | $-4.60 | $-1.41 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 27, 2026 3:46pm (20h ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $277.7M | $302.9M | $165.8M | $341.0M | $604.8M |
| Total Current Assets | $404.0M | $438.6M | $350.3M | $667.6M | $1.2B |
| Total Assets | $531.4M | $631.4M | $564.1M | $926.1M | $2.3B |
| Current Liabilities | $114.8M | $174.2M | $232.6M | $291.1M | $372.4M |
| Long-Term Debt | $238.2M | $389.5M | $449.7M | $435.4M | $1.2B |
| Total Liabilities | $1.3B | $1.8B | $1.9B | $869.8M | $1.8B |
| Total Equity | -$807.5M | -$1.1B | -$1.4B | $56.3M | $491.3M |
| Retained Earnings | -$807.5M | -$1.1B | -$1.4B | -$2.2B | -$2.4B |
Cash Flow (Annual)
Last updated: Jun 27, 2026 3:46pm (20h ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | -$212.0M | -$168.2M | -$214.3M | -$189.0M | -$218.1M |
| Capital Expenditure | -$11.8M | -$18.4M | -$34.6M | -$22.1M | -$21.0M |
| Free Cash Flow | -$223.8M | -$186.6M | -$248.9M | -$211.2M | -$239.1M |
| Acquisitions (net) | -$6.0M | -$39.6M | -$5.7M | -$95.2M | -$376.7M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | $0 | $0 | -$3.6M | $0 | -$3.0M |
| Net Change in Cash | -$235.8M | $25.3M | -$137.1M | $175.2M | $263.8M |
Analyst Estimates (Annual)
Last updated: Jun 27, 2026 3:46pm (20h ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$1.9B $1.9B – $2.0B
|
$2.3B $2.3B – $2.3B
|
$2.7B $2.6B – $2.8B
|
$3.1B $3.0B – $3.2B
|
| EBITDA |
-$1.1B -$1.2B – -$1.1B
|
-$1.3B -$1.3B – -$1.3B
|
-$1.6B -$1.6B – -$1.5B
|
-$1.8B -$1.9B – -$1.8B
|
| Net Income |
-$3.1M -$111.0M – $104.9M
|
$97.7M -$17.9M – $213.4M
|
$304.3M $293.5M – $314.3M
|
$488.0M $470.7M – $504.1M
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 27, 2026 3:46pm (20h ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +24.4% | +65.8% | +30.4% | +83.4% |
| Gross Profit Growth | +55.6% | +119.8% | +33.2% | +132.4% |
| Operating Income Growth | -8.9% | +26.1% | -252.4% | +65.5% |
| Net Income Growth | -11.8% | +26.1% | -229.6% | +65.3% |
| EBITDA Growth | -7.9% | +43.7% | -357.8% | +63.6% |
Insider Trading (Recent)
All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-01 | Epstein David R | S-Sale | 250.00 | $49.40 | $12,350 |
| 2026-05-27 | LEFKOFSKY ERIC P | S-Sale | 35,721.00 | $46.17 | $1.6M |
| 2026-05-27 | LEFKOFSKY ERIC P | S-Sale | 97,279.00 | $46.89 | $4.6M |
| 2026-05-27 | LEFKOFSKY ERIC P | S-Sale | 8,932.00 | $46.17 | $412,390 |
| 2026-05-27 | LEFKOFSKY ERIC P | S-Sale | 24,318.00 | $46.89 | $1.1M |
| 2026-05-21 | Belcher Eric D | A-Award | 5,913.00 | $0.00 | $0 |
| 2026-05-21 | West Nadja | A-Award | 5,913.00 | $0.00 | $0 |
| 2026-05-21 | Leonsis Theodore | A-Award | 5,913.00 | $0.00 | $0 |
| 2026-05-21 | Gottlieb Scott | A-Award | 5,913.00 | $0.00 | $0 |
| 2026-05-21 | Frederick Wayne A.I. | A-Award | 5,913.00 | $0.00 | $0 |
| 2026-05-21 | Epstein David R | A-Award | 5,913.00 | $0.00 | $0 |
| 2026-05-21 | Doudna Jennifer A | A-Award | 5,913.00 | $0.00 | $0 |
| 2026-05-21 | BARRIS PETER J | A-Award | 5,913.00 | $0.00 | $0 |
| 2026-05-19 | Schoenherr Thomas Edward | S-Sale | 1,580.00 | $44.07 | $69,631 |
| 2026-05-19 | Rogers James William | S-Sale | 10,853.00 | $44.07 | $478,292 |
| 2026-05-19 | Polovin Andrew | S-Sale | 8,703.00 | $44.07 | $383,541 |
| 2026-05-19 | LEFKOFSKY ERIC P | S-Sale | 22,335.00 | $44.07 | $984,303 |
| 2026-05-19 | Fukushima Ryan | S-Sale | 13,550.00 | $44.07 | $597,149 |
| 2026-05-19 | Bartolucci Ryan M | S-Sale | 4,116.00 | $44.07 | $181,392 |
| 2026-05-14 | Fukushima Ryan | G-Gift | 162,239.00 | $0.00 | $0 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly tape first: revenue progression is $145.8M → $166.0M → $180.9M → $200.7M → $255.7M → $314.6M → $334.2M → $367.2M. That's not "decelerating" in absolute terms — Q4'25 grew 83% YoY and 9.9% sequentially. The Q1'25 jump from $200.7M to $255.7M (27% sequential) is the AKESO/Ambry consolidation tell, which is why YoY comps look so heroic. Strip out the inorganic step-function and the underlying organic rate is more like 30-40%, not 83%. The Revenue Confidence model flagging "decelerating" is technically right on sequential growth rates (27% → 23% → 6% → 9.9%), and that matters for anyone underwriting an 83% trajectory continuing.
On margins, the loss profile is genuinely improving — 2024 op loss of -$691M on $693M revenue (-100%) collapsed to -$239M on $1.27B (-19%) in 2025. That's real operating leverage, but the Q4'25 net margin of -14.8% versus Q3'25 at -23.9% is noisy; quarterly NI bounces between -$13M and -$80M with no clean trend. Gross margin at 69.6% is the strongest data point in the file — that's software-like and supports the platform thesis. But OCF at -$218M against $605M cash means roughly 2.5-3 years of runway at current burn before they need capital, and the balance sheet shows no reported debt figure, which is suspicious given they did a convertible offering. I'd want to verify that before sizing anything.
The insider activity is unambiguous: I count ~360k+ shares sold across late Feb and late March 2026, against awards of ~276k. Net selling, and the March 26 cluster of six separate sales on the same day suggests a coordinated 10b5-1 cadence by multiple insiders — not a single executive's liquidity event. At $52 with the stock down 50% from $104, insiders aren't buying the dip. That's a real signal, not noise.
Where I push back on the prior models: the synthesis verdict of "High Conviction Required" is fine as a label but the fair-value anchor of "$35-40 (5x sales) or proof of 20%+ EBITDA margins" is the honest part and gets buried. Market Forces calling for a 50%+ reset is too aggressive given the gross margin profile and growth — Veeva trades at 13x sales profitably, Illumina trades at 4x sales as a no-growth incumbent; Tempus at 7.2x with 30-40% organic growth and improving operating leverage probably belongs at 5-6x sales, i.e. $35-42. Pre-Flight's read that the market has already repriced from blue-sky to "prove it" is correct, but "priced for strong execution" understates how much the convertible/dilution math degrades the equity story if they need to raise at these levels. The contrarian argument the models underweight: this is Eric Lefkofsky, and Groupon was a cautionary tale about a founder who optimized for growth narrative over unit economics until the music stopped. The pharma Insights segment lumpiness (Q3 weakness, Q4 rebound) hints at deal-timing dependency that won't show up until a bad quarter prints.
What's thin in the data: no debt figure, no equity figure, no FCF CAGR, no earnings CAGR — all blank. The TTM-derived ratios (ROE -60%, ROIC -10%) are uninformative for a pre-profit name and the anomaly flags are right to demote them. The ev_to_revenue of 8.26 vs ps of 8.09 is internally consistent and the only multiple worth anchoring on.
I dissent partially with the synthesis. "High Conviction Required" at $52 implies it's roughly fair if you believe; I think it's modestly expensive even if you believe, because the organic growth rate is closer to 35% than 83%, gross margin gains have largely played out (you don't get from 70% to 85%), and insiders are telling you with their feet. Fair value on a 5-6x forward sales multiple ($1.6-1.7B '26 revenue) lands at $42-50/share — basically here, with downside skew. I'd want $38-42 for a starter and would not chase.
GPT Critique
Tempus AI, Inc. has undeniably demonstrated substantial revenue growth over the past few years, with a noteworthy increase from $257.9 million in 2021 to $1.27 billion in 2025. This translates to a revenue compound annual growth rate (CAGR) of 54.6%, which is impressive for any pre-profit growth company in the healthcare information services sector. However, despite this growth, the company remains unprofitable, with a net income of -$245 million in 2025, although this is an improvement from -$705.8 million in 2024. The gross margin expansion from 32% to 70% is a positive indicator, suggesting strong potential for future profitability. Yet, the continuous negative operating cash flow, reported at -$218.1 million for 2025, raises concerns about the company's cash burn rate and the sustainability of its operations without further capital infusion.
I find myself in agreement with Opus regarding the organic growth rate. Opus's assessment that the underlying organic growth rate is closer to 30-40% rather than the headline 83% is accurate when considering the inorganic contributions from consolidations like AKESO/Ambry. This aligns with the sequential growth rates, which have shown signs of deceleration. On margins, I concur with Opus that the improvement in operating losses from -$691 million to -$239 million is a clear sign of operating leverage, yet the quarterly net income volatility is a concern. The gross margin of 69.6% indeed supports the platform’s thesis, as Opus noted, but the continued cash burn indicates that the path to profitability is not yet clear.
Where I diverge from Opus is on the valuation perspective. While Opus suggests a fair value range of $40-48, I believe the current market pricing at $52.525 per share might still reflect the potential upside of Tempus's data-driven healthcare platform. The company's significant oncology dataset and the growing demand for real-world data in pharma present a compelling narrative for future growth. However, I share Opus’s caution about the insider selling activity, which could signal internal skepticism about the company's near-term prospects, adding weight to the argument for a more conservative valuation approach.
A skeptic might argue that both Opus and I are too optimistic about Tempus’s ability to transition to profitability. The absence of debt is notable, but without a clear path to sustainable positive cash flow, the company might face liquidity issues if the current cash reserves deplete before profitability is achieved. Additionally, the competitive landscape, with increasing pressure from established players like Quest and LabCorp, could impact Tempus’s ability to maintain its growth trajectory and margin improvements.