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

• Market Cap: $9.03B
• Dividend Yield: N/A
• Average Volume (3M): 10.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.61
• Revenue Growth: 30.38%
• EPS Growth: -195.58%
• Country: US
• Employees: 2,400
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.24
• Shares Outstanding: 167,989,070
• 10 Day Avg. Volume: 10,448,323
• 30 Day Avg. Volume: 10,048,964
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 14.41
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $61.11
• Price Target Upside: 17.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Tempus AI, Inc. demonstrates robust revenue growth and strategic partnerships indicating future potential. However, the significant financial challenges, including high leverage, negative cash flows, and ongoing losses, pose substantial risks. Technical indicators are moderately positive, but the valuation remains constrained by profitability issues. Overall, while there are promising elements, the financial instability necessitates cautious optimism.

Positive Factors

Financial Performance

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

Market Position

Proprietary checks with medical oncologists reveal significant value in Tempus' technology platform and product suite, indicating a strong market position.

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

Revenue Challenges

Despite the company's strong performance in key areas, near-term challenges remain with increased guidance for 2025.

Segment Performance

There was a shortfall in the non-core genotyping and CRO segments, impacting overall performance.

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 also 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 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. has shown significant revenue growth but struggles with profitability, high leverage, and negative cash flows. These financial challenges indicate a need for improved cost control 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
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
	EBIT
-691.08M	-196.08M	-269.14M	-243.98M	-193.93M
	EBITDA
-610.42M	-133.33M	-236.85M	-219.52M	-169.37M
	Net Income Common Stockholders
-705.81M	-214.12M	-289.81M	-259.19M	-209.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
448.26M	197.57M	302.94M	277.69M	513.44M
	Total Assets
926.12M	564.05M	631.36M	531.35M	751.92M
	Total Debt
468.09M	488.14M	433.03M	238.95M	251.45M
	Net Debt
127.14M	322.38M	130.09M	-38.74M	-261.99M
	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: 52.19
• 50DMA: Positive
• 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 52.19 is above the 20-day moving average (MA) of 48.37, above the 50-day MA of 48.98, and above the 200-day MA of 50.58, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 63.37 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	74 Outperform	$9.11B	113.51	2.27%	―	0.66%	-75.89%
NTRA	68 Neutral	$21.23B	―	-19.42%	―	56.75%	59.77%
EXAS	61 Neutral	$10.18B	―	-36.89%	―	11.57%	-315.25%
Sector *	56 Neutral	$4.40B	7.85	-18.54%	5.13%	19.90%	-56.46%
TEM	55 Neutral	$9.03B	―	-1252.79%	―	30.38%	-195.58%
GH	52 Neutral	$5.80B	―	-4584.47%	―	28.20%	13.87%
ILMN	51 Neutral	$12.33B	―	-30.11%	―	-2.93%	-4.69%

Tempus AI, Inc. Class A Corporate Events

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.

Spark’s Take on TEM Stock

According to Spark, TipRanks’ AI Analyst, TEM is a Neutral.

Tempus AI, Inc. shows strong revenue growth and positive strategic developments, yet faces substantial financial challenges, including high leverage and negative cash flows. The earnings call provides an optimistic outlook with strategic initiatives and partnerships expected to drive future growth. However, the company’s valuation and technical indicators suggest caution, as persistent losses and mixed market momentum create uncertainty. Overall, the stock is positioned in a recovery phase but requires careful monitoring of financial stability and execution of strategic plans.

To see Spark’s full report on TEM stock, click here.

Tempus AI Reports Strong Q4 2024 Financial Growth

Tempus AI, Inc. reported significant financial growth for the fourth quarter and full year of 2024, with a 35.8% increase in quarterly revenue and a 49.7% rise in gross profit, driven by its data and services segment. The company completed the acquisition of Ambry Genetics and announced new agreements with major healthcare providers, positioning itself for robust revenue growth and positive Adjusted EBITDA in 2025.