0000950170-25-105449
SEC filingRevenue surged 90% YoY to $314.6M driven by Ambry acquisition and Genomics growth, while net loss narrowed sharply to $42.8M.
Tempus AI reported total net revenue of $314.6 million for the three months ended June 30, 2025, a 90% increase from $166.0 million in the same period of 2024. The growth was primarily driven by the acquisition of Ambry Genetics in February 2025, which contributed $97.3 million in hereditary testing revenue, and a 26% increase in Oncology test volumes (from 66,500 to 84,000 tests). Average revenue per Oncology test rose from $1,500 to $1,580 due to higher Medicare reimbursement rates.
Gross profit improved to $195.0 million (62.0% margin) from $75.5 million (45.5% margin) in the prior year, reflecting revenue mix shift and operating leverage. Cost of revenues increased 32% to $119.6 million, but at a slower pace than revenue, driven by $34.3 million in higher material and service costs (including $21.9 million from Ambry) offset by a $16.4 million decrease in stock-based compensation.
Operating loss narrowed significantly to $61.8 million from $533.5 million, primarily due to a $362.4 million reduction in stock-based compensation expense related to RSUs that vested upon IPO in the prior year. Selling, general and administrative expenses decreased 61% to $180.7 million, while technology R&D and R&D expenses fell 56% and 39%, respectively, largely from lower stock-based compensation.
Net loss improved to $42.8 million from $552.2 million, aided by $41.7 million in other income (net), primarily from unrealized gains on marketable equity securities and fair value changes in warrant assets. Adjusted EBITDA, a non-GAAP measure, improved to $(5.6) million from $(31.2) million.
Genomics: Revenue surged 115% to $241.8 million, driven by the addition of hereditary testing from Ambry (128,000 tests) and growth in Oncology testing (84,000 tests vs. 66,500). The segment benefited from higher test volumes and improved average reimbursement.
Data and Services: Revenue increased 36% to $72.8 million, led by $16.5 million from Insights products and contributions from the Pathos Foundation Model agreement. The segment continues to benefit from existing customer expansion and new customer adoption.
Management expects continued investment in R&D and technology to support new assay development, platform expansion, and AI applications. The company highlighted strategic collaborations with AstraZeneca, GSK, and Recursion as key growth drivers. The recent $750 million convertible note offering (July 2025) provides liquidity for general corporate purposes, including potential acquisitions. Management believes current cash and anticipated cash flows will be sufficient for more than twelve months. No specific quantitative guidance was provided.