0001193125-26-206356
SEC filingTempus AI revenue grew 36% YoY to $348.1M driven by higher test volumes and data sales, while net loss widened to $125.9M due to increased stock-based compensation and operating expenses.
Tempus AI reported total revenue of $348.1 million for the three months ended March 31, 2026, a 36% increase compared to $255.7 million in the prior-year period. This top-line growth was accompanied by a widening net loss of $125.9 million, compared to a $68.0 million loss in Q1 2025. The increased loss was primarily driven by a $57.9 million rise in Selling, General and Administrative (SG&A) expenses, which included an $18.9 million increase in stock-based compensation and $18.0 million in additional personnel-related costs, largely attributable to the Ambry Genetics acquisition. Loss from operations deepened to $84.7 million from $68.7 million. Despite the GAAP loss, the company's non-GAAP Adjusted EBITDA improved significantly to a loss of $2.8 million from a loss of $16.2 million, suggesting progress toward operational breakeven when excluding stock-based compensation, acquisition costs, and fair value changes.
The company operates two product lines: Diagnostics and Data and applications. Diagnostics revenue grew 35% YoY to $261.1 million, fueled by a substantial increase in test volumes. Total tests processed rose to approximately 218,000 from 153,000, with Oncology tests increasing 28% to 85,500 and Hereditary tests reaching 132,500 due to the full-quarter impact of the Ambry Genetics acquisition in February 2025. Data and applications revenue surged 41% YoY to $87.0 million, driven by a $21.8 million increase in demand for Insights products and a $3.0 million increase for Next products, notably including contributions from the new Pathos Foundation Model agreement. Cost of revenues grew at a slower pace than revenue, with Diagnostics cost of revenues up 19% and Data and applications up 59%, the latter due to higher cloud and royalty costs. The revenue mix shift and cost dynamics highlight the company's scaling efforts, though Data and applications revenue is noted to be typically back-weighted to the second half of the year.
Management expects to maintain high levels of investment in research and development, technology, and sales to support new product innovation, platform expansion into new disease areas, and customer acquisition. The company believes its current cash, cash equivalents, and anticipated cash flows from operations are sufficient to meet cash requirements for more than twelve months. Strategic collaborations, such as the $200 million data license agreement with Pathos and the expanded AstraZeneca partnership, are expected to be significant future revenue drivers. The company also highlighted its $750 million convertible notes offering and $500 million at-the-market equity program as sources of financial flexibility. No specific quantitative financial guidance was provided for future periods.