TEM · Tempus AI, Inc.

Tempus AI's second quarter was marked by accelerating growth and a swing to profitability. Total revenue increased 22% year-over-year to $382.5 million, with Diagnostics revenue growing 20% to $289.3 million on 31% oncology volume growth, and Data and Applications revenue climbing 28% to $93.2 million as Insights (Data Licensing & Modeling) rose 36%. Gross profit expanded 26% to $246.5 million, helped by the mix shift toward higher-margin data licensing. The company posted GAAP net income of $5.6 million, compared with a net loss of $42.8 million in the prior-year quarter. Net income included $55.6 million of stock-based compensation expense and $98.5 million of unrealized gains on marketable securities. Adjusted EBITDA turned positive at $8.0 million, versus a $5.6 million loss last year. Management credited prior AI investments for driving the strong performance. CEO Eric Lefkofsky stated, 'Our strategy is working given the investments we have made in AI over the past several years are driving some of the best growth rates we have seen in our two largest businesses - Oncology Diagnostics and Data Licensing.' The company raised its full-year 2026 revenue guidance to $1.595-$1.605 billion (approximately 25% annual growth) and reiterated Adjusted EBITDA of about $65 million. Guidance excludes any impact from the planned acquisition of Personalis for $16.25 per share (roughly $1.5 billion enterprise value), which is expected to close in late Q4 2026 or early 2027. The acquisition would deepen Tempus's presence in the molecular residual disease (MRD) market. With $820.7 million in cash and marketable securities at quarter-end, Tempus has ample liquidity to fund the deal and its growth initiatives.