Tempus AI (TEM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $334.2M, up 85% year-over-year, with strong growth in Genomics and Data & Services segments and gross profit up 98.4% to $209.9M.

• Delivered 217,000 clinical tests, a 33% increase in volume, with Oncology and Hereditary testing volumes up 27% and 37%, respectively.

• Achieved positive adjusted EBITDA of $1.5M, a $23.3M improvement year-over-year, even after Paige acquisition costs.

• Net loss was $80.0M, impacted by $35.0M in stock compensation, increased amortization from acquisitions, and a one-time $12.0M debt extinguishment expense.

• Major acquisitions included Ambry Genetics, Paige.AI, and Deep 6 AI, expanding capabilities in genomics, digital pathology, and clinical trial matching.

Financial highlights

• Genomics revenue grew 117% year-over-year to $252.9M, with test volume rising from 69,000 to 217,000, including 129,500 hereditary tests from Ambry.

• Data & Services revenue was $81.3M, up 26.1% year-over-year, with Insights (data licensing) up 37.6%.

• Gross margin improved to 62.8% (GAAP) and 63.6% (non-GAAP), up from 58.5% year-over-year.

• Adjusted EBITDA turned positive at $1.5M, compared to a loss of $21.8M in Q3 2024.

• Cash and marketable securities totaled $764.3M at quarter end.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.265B, representing ~80% annual growth.

• Q4 2025 revenue guidance is ~$360M, with Q4 Adjusted EBITDA expected at $(20)M due to Paige acquisition impact.

• Management expects continued investment in R&D and technology, with ongoing focus on customer acquisition and payer reimbursement.

• Current liquidity is expected to support operations for more than twelve months; additional capital may be raised for strategic opportunities.

• Plan to migrate majority of xT, CDX volume to FDA-approved or ADLT versions throughout 2026, with xF FDA submission by year-end.