Tempus AI (TEM) Q1 2026 earnings summary

Executive summary

• Revenue grew 36.1% year-over-year to $348.1 million for Q1 2026, driven by strong performance in Diagnostics and Data & Applications.

• Gross profit increased 43.1% to $222.0 million, with notable strength in Data & Applications.

• Net loss widened to $125.9 million, impacted by $56.3 million in stock compensation and $32.3 million in unrealized losses on marketable securities.

• Adjusted EBITDA improved to $(2.8) million from $(16.2) million year-over-year.

• Strategic collaborations expanded with Merck, Gilead, Northwestern Medicine, NYU Langone Health, and Blood Cancer United.

Financial highlights

• Diagnostics revenue reached $261.1 million, up 34.7% year-over-year; Data & Applications revenue was $87.0 million, up 40.5%.

• Non-GAAP gross margin improved to 65.0% from 61.4% year-over-year.

• Diagnostics non-GAAP gross margin rose to 62.3% from 56.8%; Data & Applications non-GAAP gross margin was 73.1%.

• Cash and marketable securities totaled $643.8 million at quarter-end.

• Free cash flow was negative in Q1 due to timing of payables and bonuses, but expected to improve in Q2 and beyond.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.59–$1.60 billion, representing ~25% annual growth.

• Adjusted EBITDA for 2026 expected at $65 million, with sequential improvement each quarter.

• Q2 2026 revenue guidance: $375–$380 million.

• Management expects continued investment in R&D, technology, and commercial expansion.

• Current liquidity projected to cover operating needs for more than twelve months; additional capital may be raised for growth or strategic investments.