Microblink Sets New Standard for Document Security with Perfect IDNet Test Results
AI-powered identity verification through the Microblink Platform detects 100% of fake documents in DHS-backed IDNet dataset evaluation.
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Identity fraud is a growing threat, made worse by generative AI tools that make it easy to create convincing fake IDs with minimal effort. To combat this, the U.S. Department of Homeland Security sponsored the IDNet dataset, a robust benchmark for testing document verification systems against advanced synthetic fraud. It includes over 837,000 images from 10 U.S. states and 10 European countries, covering fraud techniques like face morphing, portrait swaps, and text field alterations.
Despite the increasing sophistication of these threats, there is currently no standardized metric for deepfake detection. Many identity verification vendors self-report their efficacy using different methods and metrics, leaving businesses unsure of how well their systems defend against Gen AI-fueled attacks. The IDNet dataset provides an objective standard for evaluating how well vendors perform. A trustworthy solution provider should be able to demonstrate real-world effectiveness by replicating a near-zero False Accept Rate when testing IDNet images.
"As generative AI makes it easier to create convincing fake identities, independent testing has never been more important," said Hartley Thompson, President and COO of Microblink. "Our results on the IDNet dataset show just how effective the Microblink Platform is at catching advanced synthetic fraud. We saw zero false acceptances in our comprehensive testing. This is a clear sign our AI is delivering real protection for businesses and consumers."
Microblink evaluated its platform for 10 U.S. states: Arizona, California, Nevada, North Carolina, Pennsylvania, South Dakota, Utah, Washington D.C., West Virginia, and Wisconsin, using 83,652 synthetically generated images within the IDNet dataset. To simulate real-world fraud more accurately, Microblink treated all samples, including those labeled as 'bona fide,' as fraudulent.
The end-to-end analysis, incorporating all available fraud checks, showed zero false acceptances across all document types and states. This result highlights the Microblink Platform's resilience against even the most realistic synthetic documents.
Some samples were flagged due to dataset-related image quality issues, such as over-cropping or missing fields, but none were incorrectly accepted as legitimate. A focused test on face photo tampering also produced strong results, confirming the system's ability to detect synthetic faces beyond obvious visual cues.
'We've been using our in-house Fraud Lab for years to generate synthetic IDs and simulate real-world fraud,' said Thompson. 'With over 280,000 AI-generated documents, we're constantly training and testing our models to stay ahead of both digital and physical tampering. The release of the IDNet dataset gave us the perfect opportunity to validate our technology against a rigorous, third-party benchmark. The results speak for themselves.'
The full evaluation methodology is available in this report. Results will also be discussed in a free webinar.
About Microblink
Microblink builds proprietary AI solutions for identity verification and payment fraud, empowering businesses worldwide to improve customers' digital experiences. With more than 12 billion documents processed from over 180 countries, the flagship Microblink Platform is used across industries to onboard more real customers, optimize KYC/AML workflows, and minimize fraud, enabling organizations to make online interactions safer and easier.
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Tempus Reports Second Quarter 2025 Results
CHICAGO, August 08, 2025--(BUSINESS WIRE)--Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine and patient care, today reported financial results for the quarter ended June 30, 2025. Revenue increased 89.6% year-over-year to $314.6 million in the second quarter Genomics revenue increased 115.3% year-over-year to $241.8 million on accelerating year-over-year volume growth in Oncology (26%) and Hereditary (32%) testing Data and services revenue increased 35.7% year-over-year to $72.8 million, led by Insights (data licensing), which grew 40.7% year-over-year Quarterly gross profit was $195.0 million, a 158.3% year-over-year increase Issued $750 million of 0.75% convertible senior notes that will drive significant interest expense and cash savings Increasing full year 2025 revenue guidance to $1.26 billion, along with positive adjusted EBITDA of $5 million, a $110 million improvement over 2024 "The business is performing well with revenues and margins growing faster than expected, contributing to our continued improvement in adjusted EBITDA on a year-over-year basis," said Eric Lefkofsky, Founder and CEO of Tempus. "We saw significant re-acceleration of our clinical volumes which grew 30% in the quarter, as we delivered more than 212,000 NGS tests. Combined with our continued leadership in AI and progress toward building the largest foundation model in oncology, 'we're hitting our stride' as we approach our 10th anniversary." Second Quarter Summary Results Quarterly revenue increased 89.6% year-over-year to $314.6 million. Genomics contributed $241.8 million in revenue in the quarter, growing 115.3% compared to the second quarter of 2024. Oncology testing (Tempus genomics) delivered $133.2 million of revenue, up 32.9% year-over-year with approximately 26% volume growth versus 20% last quarter. Hereditary testing (Ambry genetics) contributed $97.3 million of revenue, up 33.6% year-over-year on a pro forma basis1 with approximately 32% volume growth. Revenue from Data and services totaled $72.8 million in the second quarter, delivering 35.7% growth versus the second quarter of 2024, led by Insights (data licensing), which grew 40.7% year-over-year. Generated $195.0 million in quarterly gross profit, reflecting a 158.3% increase year-over-year. Improvement in reported net loss of ($42.8 million) in the second quarter of 2025, including fair value gains of $37.8 million related to our marketable equity securities and stock compensation and employer payroll tax related to stock-based compensation of ($24.3) million, compared to a net loss of ($552.2 million) in the second quarter of 2024. Adjusted EBITDA of ($5.6 million) in the second quarter of 2025 compared to ($31.2 million) in the second quarter of 2024, an improvement of $25.6 million year-over-year. 1 The pro forma amounts have been calculated after applying the Company's accounting policies Second Quarter and Recent Operational Highlights Strengthened Financial Flexibility: Just after quarter end, we completed an upsized offering of $750 million 0.75% convertible senior notes, enhancing our balance sheet and allowing us to replace a portion of the existing term loan with a significantly lower interest debt instrument. We also ended the quarter with $293.0 million in cash and marketable securities, an improvement of ~$70 million over last quarter. Expanded AI-Powered Clinical Tools: Extended Tempus Next™ care pathway intelligence platform into breast cancer, furthering AI-driven decision support across oncology. In addition, Tempus One™, our generative AI clinical assistant, was integrated into leading electronic health record (EHR) systems to enhance physician workflows and point-of-care insights. Advanced MRD and monitoring: Introduced Tempus xM™ for treatment and response monitoring (TRM), a liquid biopsy assay designed to monitor immunotherapy response in patients with advanced solid tumors, providing clinicians with actionable, real-time insights. We also expanded our exclusive collaboration with Personalis to include colorectal cancer as the fourth indication under the NeXT Personal® MRD commercial partnership. Reached new database milestone: Through more than 4,500 integrations, we are now connected to more than 40 million clinical patient records, with ~9 million de-identified and ingested, spanning ~1.1 billion healthcare documents, a significant percentage of which are connected to the ~4 million samples we have sequenced. As a result, our database now stands at >350 petabytes of connected clinical and molecular data. Approaching 10-Year anniversary: As we near Tempus' 10-year anniversary, we're reflecting on a decade of innovation and collaboration which now spans more than 2,000 publications including ~700 peer reviewed articles and ~180 oral presentations. Second Quarter Financial Results Three Months Ended June 30, 2025 2024 Change (in thousands, except percentages and per share amounts) (unaudited) Revenue $ 314,635 $ 165,969 89.6 % Gross profit $ 195,039 $ 75,513 158.3 % Loss from operations $ (61,774 ) $ (533,492 ) NM(1) Net loss $ (42,843 ) $ (552,212 ) NM(1) Adjusted EBITDA $ (5,580 ) $ (31,186 ) 82.1 % Net loss per share attributable to common shareholders, basic and diluted $ (0.25 ) $ (6.86 ) 96.4 % Non-GAAP net loss per share $ (0.22 ) $ (0.63 ) 65.1 % ____________ (1) Not meaningful due to the impact of stock compensation expense and employer payroll tax related to stock-based compensation associated with the initial public offering in June 2024 Financial Outlook and Guidance Tempus is increasing its guidance and now expects full year 2025 revenue of approximately $1.26 billion for the consolidated business, which represents approximately 82% annual growth, and Adjusted EBITDA of $5 million for full year 2025, an improvement of approximately $110 million over 2024. For additional information on the quarter, including a letter from our CEO and CFO, please visit our investors relations site at Webcast and Conference Call Information A conference call and webcast will be held on Friday, August 8, 2025 at 8:00 a.m. Eastern Time. Interested parties may access details using: Conference ID: 7005219Domestic Dial-in Number: (800) 715 - 9871International Dial-in Number: (646) 307 - 1963Live webcast: The webcast may be accessed on the company's investor relations website at For those unable to listen to the live webcast, a recording will be made available on the company's website after the event and will be accessible for one year. Visit the investor relations website to find the company's latest deck, and commentary on the quarter and year by Eric Lefkofsky, Founder and CEO and Jim Rogers, CFO, which will be discussed on the conference call and webcast. About Tempus Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world's largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit Non-GAAP Financial Measures In addition to the financial information presented in this release in accordance with accounting principles generally accepted in the United States of America (GAAP), Tempus also presents adjusted non-GAAP financial measures. Non-GAAP gross profit is defined as GAAP gross profit, excluding stock-based compensation expense and employer payroll tax related to stock-based compensation (collectively, the "stock-based compensation adjustments"). Non-GAAP gross margin is defined as gross profit, excluding the stock-based compensation adjustments, as a percentage of revenue. Non-GAAP operating expenses are calculated as the sum of technology research and development expense, research and development expense, and selling, general and administrative expense, excluding the stock-based compensation adjustments, acquisition-related expenses, amortization of intangibles due to acquisition, and franchise taxes related to our IPO. Non-GAAP loss from operations is defined as loss from operations, adjusted to exclude (i) stock-based compensation expense, (ii) employer payroll tax related to stock-based compensation expense, (iii) acquisition-related expenses, (iv) franchise taxes related to our IPO, and (v) amortization of intangibles due to acquisition. Non-GAAP net loss is defined as net loss, adjusted to exclude (i) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, (ii) stock-based compensation expense, (iii) employer payroll tax related to stock-based compensation expense, (iv) acquisition-related expenses, (v) amortization of intangibles due to acquisition, (vi) losses on equity method investments, (vii) (benefit from) provision for income taxes, (viii) the payment of $2.3 million of our Series G-4 convertible preferred stock in connection with the initial public offering (the "G-4 Special Payment"), (ix) franchise taxes related to our IPO, and (x) amortization of deferred other income from our IP License Agreement with SB Tempus. Non-GAAP net loss per share is defined as non-GAAP net loss divided by weighted average common shares outstanding, basic and diluted. Adjusted EBITDA is defined as net loss, adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) provision for (benefit from) income taxes, (v) losses on equity method investments, (vi) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, (vii) stock-based compensation expense, (viii) employer payroll tax related to stock-based compensation expense, (ix) acquisition related expenses, (x) the G-4 Special Payment, (xi) amortization of deferred other income from our IP License Agreement with SB Tempus, and (xii) franchise taxes related to our IPO. Tempus believes these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by institutional investors and the analyst community to help them analyze the health of Tempus' business. In particular, Adjusted EBITDA is a key measurement used by Tempus management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures. Tempus does not provide guidance for net loss, the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA, and similarly cannot provide a reconciliation between Tempus' forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of reliable estimates for certain components of net income (loss) and the respective reconciliations. These forecasted items are not within Tempus' control, may vary greatly between periods, and could significantly impact future financial results. Other Key Metrics Total Remaining Contract Value (TCV) is equal to the total potential value of signed contracts and assumes the exercise of all contract options, all discretionary opt-ins, and no early termination. Remaining TCV excludes any revenue recognized to date on these contracts or any future adjustments made to the contractual value as a result of amendments or terminations. Net Revenue Retention compares the annual Insights product revenue generated from all customers that made an Insights purchase in one year to the annual Insights product revenue generated from the same cohort of customers in the subsequent year. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and its industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, Tempus' expected financial results for full year 2025; expectations concerning the interest and cost savings associated with our convertible senior notes; and other statements that are not historical fact. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "going to," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release. You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus' business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: the intended use of Tempus' products and services; Tempus' financial performance; the ability to attract and retain customers and partners; managing Tempus' growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus' intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments, including Tempus' ability to realize the expected benefits of the acquisition of Ambry Genetics and Deep 6 AI; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, trade tensions and tariffs, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled "Risk Factors" in Tempus' Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission ("the SEC") on February 24, 2025, as supplemented by Tempus' Form 10-Q for the quarter ended June 30, 2025, filed with the SEC on August 8, 2025, as well as in other filings Tempus may make with the SEC in the future. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Tempus AI, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Net revenue Genomics $ 241,843 $ 112,324 $ 435,647 $ 214,893 Data and services(1) 72,792 53,645 134,725 96,896 Total net revenue $ 314,635 $ 165,969 $ 570,372 $ 311,789 Cost and operating expenses Cost of revenues, genomics 99,756 68,324 184,539 121,159 Cost of revenues, data and services 19,840 22,132 35,591 37,420 Technology research and development 34,482 77,908 67,873 104,975 Research and development 41,619 68,025 77,493 92,365 Selling, general and administrative 180,712 463,072 335,339 542,636 Total cost and operating expenses 376,409 699,461 700,835 898,555 Loss from operations $ (61,774 ) $ (533,492 ) $ (130,463 ) $ (586,766 ) Interest income 1,093 1,718 2,906 2,749 Interest expense (21,579 ) (13,295 ) (39,582 ) (26,533 ) Other income (expense), net 41,729 (7,048 ) 14,274 (6,299 ) Loss before (provision for) benefit from income taxes $ (40,531 ) $ (552,117 ) $ (152,865 ) $ (616,849 ) (Provision for) benefit from income taxes (212 ) (95 ) 45,968 (106 ) Losses from equity method investments (2,100 ) — (3,983 ) — Net Loss $ (42,843 ) $ (552,212 ) $ (110,880 ) $ (616,955 ) Dividends on Series A, B, B-1, B-2, C, D, E, F, G, G-3, and G-4 preferred shares — (11,540 ) — (39,347 ) Cumulative undeclared dividends on Series C preferred shares — (668 ) — (1,174 ) Net loss attributable to common shareholders, basic and diluted (42,843 ) (564,420 ) (110,880 ) (657,476 ) Net loss per share attributable to common shareholders, basic and diluted $ (0.25 ) $ (6.86 ) $ (0.64 ) $ (9.02 ) Weighted-average shares outstanding used to compute net loss per share, basic and diluted 173,381 82,325 171,960 72,930 Comprehensive Loss, net of tax Net loss $ (42,843 ) $ (552,212 ) $ (110,880 ) $ (616,955 ) Foreign currency translation adjustment 3,756 (43 ) 8,354 (99 ) Comprehensive loss $ (39,087 ) $ (552,255 ) $ (102,526 ) $ (617,054 ) (1) Includes related party revenue of $15,908, $108, $16,539, $215 for the three and six months ended June 30, 2025 and 2024, respectively. Tempus AI, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) June 30, 2025 December 31, 2024 Assets Current Assets Cash and cash equivalents $ 186,310 $ 340,954 Accounts receivable, net of allowances of $1,545 and $1,141 at June 30, 2025 and December 31, 2024, respectively 266,284 154,819 Inventory 47,600 38,386 Related party asset 2,535 — Prepaid expenses and other current assets 36,476 26,135 Marketable equity securities 104,996 107,309 Total current assets $ 644,201 $ 667,603 Property and equipment, net 92,563 58,056 Goodwill 325,793 73,343 Intangible assets, net 387,564 11,716 Investments and other assets 16,669 8,305 Investment in joint venture 95,718 91,450 Related party asset, less current portion 22,465 — Operating lease right-of-use assets 38,651 14,762 Restricted cash 1,741 881 Total Assets $ 1,625,365 $ 926,116 Liabilities, Convertible redeemable preferred stock, and Stockholders' equity Current Liabilities Accounts payable 79,323 53,804 Related party payable 25,000 — Accrued expenses 165,903 130,407 Deferred revenue(1) 100,477 75,981 Deferred other income 15,955 15,955 Other current liabilities 16,554 6,964 Operating lease liabilities 9,381 6,459 Accrued data licensing fees 5,567 1,500 Total current liabilities $ 418,160 $ 291,070 Operating lease liabilities, less current portion 45,866 26,199 Convertible promissory note 226,342 168,192 Other long-term liabilities 9,508 15,980 Revolving credit facility 100,000 — Interest payable 5,084 70,450 Long-term debt, net 471,663 267,244 Deferred other income, less current portion 15,955 23,932 Deferred revenue, less current portion 23,225 6,710 Total Liabilities $ 1,315,803 $ 869,777 (1) Includes related party deferred revenue of $36,685 and $0 as of June 30, 2025 and December 31, 2024, respectively. Commitments and contingencies (Note 8) Convertible redeemable preferred stock, $0.0001 par value, 20,000,000 shares authorized at June 30, 2025 and December 31, 2024, respectively, no shares issued and outstanding at June 30, 2025 and December 31, 2024; aggregate liquidation preference of $0 at June 30, 2025 and December 31, 2024, respectively $ — $ — Stockholders' equity Class A Voting Common Stock, $0.0001 par value, 1,000,000,000 shares authorized at June 30, 2025 and December 31, 2024, respectively; 168,580,827 and 157,076,972 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 17 16 Class B Voting Common Stock, $0.0001 par value, 5,500,000 shares authorized at June 30, 2025 and December 31, 2024, respectively; 5,043,789 issued and outstanding at June 30, 2025 and December 31, 2024, respectively 1 1 Non-voting Common Stock, $0.0001 par value, no shares authorized at June 30, 2025 and December 31, 2024, respectively; no shares issued and outstanding at June 30, 2025, and December 31, 2024, respectively — — Treasury Stock, 145,466 shares at June 30, 2025 and December 31, 2024, at cost (3,602 ) (3,602 ) Additional Paid-In Capital 2,566,412 2,210,664 Accumulated Other Comprehensive Income 8,448 94 Accumulated deficit (2,261,714 ) (2,150,834 ) Total Stockholders' equity $ 309,562 $ 56,339 Total Liabilities, Convertible redeemable preferred stock, and Stockholders' equity $ 1,625,365 $ 926,116 Tempus AI, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands, except per share amounts) Six Months EndedJune 30, 2025 2024 Operating activities Net loss $ (110,880 ) $ (616,955 ) Adjustments to reconcile net loss to net cash used in operating activities Change in fair value of warrant liability $ — $ (900 ) Stock-based compensation 45,429 488,313 Gain on warrant exercise — (173 ) Gain on marketable equity securities (6,007 ) (2,541 ) Deferred income taxes (46,216 ) — Losses from equity method investments 3,983 — Amortization of original issue discount 1,169 691 Amortization of deferred financing fees 332 255 Change in fair value of contingent consideration — 165 Change in fair value of holdback liability 312 — Amortization of warrant contract asset — 2,422 Depreciation and amortization 48,385 18,348 Provision for bad debt expense 625 327 Change in fair value of warrant asset — 7,700 Non-cash operating lease costs 4,573 3,252 Minimum accretion expense 108 92 PIK interest added to principal 7,157 4,366 Change in assets and liabilities Accounts receivable (49,155 ) (23,971 ) Inventory 1,974 (3,845 ) Prepaid expenses and other current assets (188 ) (12,409 ) Investments and other assets (11,073 ) 1,294 Accounts payable 7,025 (33,371 ) Deferred revenue(1) 36,836 (28,669 ) Deferred other income (7,977 ) — Accrued data licensing fees 3,957 (2,749 ) Accrued expenses & other 6,991 (2,805 ) Interest payable 7,122 7,287 Operating lease liabilities (5,942 ) (4,582 ) Net cash used in operating activities $ (61,460 ) $ (198,458 ) Investing activities Purchases of property and equipment $ (9,588 ) $ (14,116 ) Proceeds from sale of marketable equity securities 8,316 23,098 Business combinations, net of cash acquired (Note 4) (380,762 ) — Purchases of capitalized software (3,295 ) — Net cash (used in) provided by investing activities $ (385,329 ) $ 8,982 (1) Includes increase in related party deferred revenue of $36,685 and $0 as of June 30, 2025 and December 31, 2024, respectively. Financing activities Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions $ — $ 381,951 Tax withholding related to net share settlement of restricted stock units — (69,918 ) Issuance of Series G-5 Preferred Stock — 199,750 Payment of deferred offering costs — (2,714 ) Dividends paid — (5,625 ) Proceeds from revolving credit facility, net of original issue discount 98,000 — Proceeds from long-term debt, net of original issue discount 196,000 — Payment of deferred financing fees (958 ) — Payment of indemnity holdback related to acquisition — (813 ) Net cash provided by financing activities $ 293,042 $ 502,631 Effect of foreign exchange rates on cash $ (37 ) $ (90 ) Net (decrease) increase in Cash, Cash Equivalents and Restricted Cash $ (153,784 ) $ 313,065 Cash, cash equivalents and restricted cash, beginning of period 341,835 166,607 Cash, cash equivalents and restricted cash, end of period $ 188,051 $ 479,672 Cash, Cash Equivalents and Restricted Cash are Comprised of: Cash and cash equivalents $ 186,310 $ 478,811 Restricted cash and cash equivalents 1,741 861 Total cash, cash equivalents and restricted cash $ 188,051 $ 479,672 Supplemental disclosure of cash flow information Cash paid during the year for interest $ 23,980 $ 13,921 Cash paid for income taxes $ 136 $ 89 Supplemental disclosure of noncash investing and financing activities Dividends payable $ — $ 5,487 Purchases of property and equipment, accrued but not paid $ 6,863 $ 1,108 Redemption of convertible promissory note $ 14,338 $ 12,476 Non-voting common stock issued in connection with business combinations $ — $ 344 Deferred financing fees, accrued but not yet paid $ 545 $ — Deferred offering costs, accrued but not yet paid $ 95 $ 6,051 Operating lease liabilities arising from obtaining right-of-use assets $ 606 $ — Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering $ — $ 1,348,809 Taxes related to net share settlement of restricted stock units not yet paid $ — $ 164 Reclassification of deferred offering costs to additional paid-in capital upon initial public offering $ — $ 12,347 Class A Voting Common Stock issued in connection with business combinations $ 310,320 $ — Issuance of Series G-3 Preferred Stock $ — $ 3,809 Issuance of Series G-4 Preferred Stock $ — $ 611 Convertible promissory note principal reset due to amendment $ 72,488 $ — Tempus AI, Inc. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except percentages and per share amounts) Genomics Gross Profit & Gross Margin Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Genomics revenue $ 241,843 $ 112,324 $ 435,647 $ 214,893 Cost of revenues, genomics 99,756 68,324 184,539 121,159 Gross profit, genomics $ 142,087 $ 44,000 $ 251,108 $ 93,734 Stock-based compensation expense 1,420 11,327 2,455 11,327 Employer payroll tax related to stock-based compensation 254 136 302 136 Non-GAAP gross profit, genomics $ 143,761 $ 55,463 $ 253,865 $ 105,197 Genomics gross margin 58.8 % 39.2 % 57.6 % 43.6 % Stock-based compensation expense 0.6 % 10.1 % 0.6 % 5.3 % Employer payroll tax related to stock-based compensation 0.1 % 0.1 % 0.1 % 0.1 % Non-GAAP gross margin, genomics 59.4 % 49.4 % 58.3 % 49.0 % Data and Services Gross Profit & Gross Margin Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Data and services revenue $ 72,792 $ 53,645 $ 134,725 $ 96,896 Cost of revenues, data and services 19,840 22,132 35,591 37,420 Gross profit, data and services $ 52,952 $ 31,513 $ 99,134 $ 59,476 Stock-based compensation expense 693 7,229 1,304 7,229 Employer payroll tax related to stock-based compensation 114 119 158 119 Non-GAAP gross profit, data and services $ 53,759 $ 38,861 $ 100,596 $ 66,824 Gross margin, data and services 72.7 % 58.7 % 73.6 % 61.4 % Stock-based compensation expense 1.0 % 13.5 % 1.0 % 7.5 % Employer payroll tax related to stock-based compensation 0.2 % 0.2 % 0.1 % 0.1 % Non-GAAP gross margin, data and services 73.9 % 72.4 % 74.7 % 69.0 % Total Gross Profit & Gross Margin Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Net revenue $ 314,635 $ 165,969 $ 570,372 $ 311,789 Cost of revenues 119,596 90,456 220,130 158,579 Gross profit $ 195,039 $ 75,513 $ 350,242 $ 153,210 Stock-based compensation expense 2,113 18,556 3,759 18,556 Employer payroll tax related to stock-based compensation 369 255 460 255 Non-GAAP gross profit $ 197,521 $ 94,324 $ 354,461 $ 172,021 Gross margin 62.0 % 45.5 % 61.4 % 49.1 % Stock-based compensation expense 0.7 % 11.2 % 0.7 % 6.0 % Employer payroll tax related to stock-based compensation 0.1 % 0.2 % 0.1 % 0.1 % Non-GAAP gross margin 62.8 % 56.8 % 62.1 % 55.2 % Operating Expenses Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Technology research and development $ 34,482 $ 77,908 $ 67,873 $ 104,975 Stock-based compensation expense 3,285 50,434 6,604 50,434 Employer payroll tax related to stock-based compensation 495 1,248 756 1,248 Non-GAAP technology research and development $ 30,702 $ 26,226 $ 60,513 $ 53,293 Research and development $ 41,619 $ 68,025 $ 77,493 $ 92,365 Stock-based compensation expense 2,335 42,233 4,317 42,233 Employer payroll tax related to stock-based compensation 235 676 411 676 Non-GAAP research and development $ 39,049 $ 25,116 $ 72,765 $ 49,456 Selling, general and administrative $ 180,712 $ 463,072 $ 335,339 $ 542,636 Stock-based compensation expense 14,722 377,090 30,749 377,090 Employer payroll tax related to stock-based compensation 774 2,582 5,499 2,582 Acquisition related expenses 1,992 — 5,521 — Amortization of intangibles due to acquisition 16,771 — 27,927 — Franchise taxes related to IPO 1,647 — 1,647 — Non-GAAP selling, general and administrative $ 144,806 $ 83,400 $ 263,996 $ 162,964 Operating expenses $ 256,813 $ 609,005 $ 480,705 $ 739,976 Stock-based compensation expense 20,342 469,757 41,670 469,757 Employer payroll tax related to stock-based compensation 1,504 4,506 6,666 4,506 Acquisition related expenses 1,992 — 5,521 — Amortization of intangibles due to acquisition 16,771 — 27,927 — Franchise taxes related to IPO 1,647 — 1,647 — Non-GAAP operating expenses $ 214,557 $ 134,742 $ 397,274 $ 265,713 Earnings per Share Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Net loss $ (42,843 ) $ (552,212 ) $ (110,880 ) $ (616,955 ) Fair value changes(1) (37,546 ) 4,870 (5,696 ) 4,280 Stock-based compensation expense 22,455 488,313 45,429 488,313 Employer payroll tax related to stock-based compensation 1,873 4,762 7,126 4,762 Acquisition related expenses(2) 1,992 — 5,521 — Amortization of intangibles due to acquisition 16,771 — 27,927 — Losses on equity method investments 2,100 — 3,983 — Provision for (benefit from) income taxes 212 95 (45,968 ) 106 G-4 Special Payment — 2,250 — 2,250 Franchise taxes related to IPO 1,647 — 1,647 — Amortization of technology license (3,988 ) — (7,977 ) — Non-GAAP net loss $ (37,327 ) $ (51,922 ) $ (78,888 ) $ (117,244 ) Non-GAAP net loss per share $ (0.22 ) $ (0.63 ) $ (0.46 ) $ (1.61 ) Weighted average common shares outstanding, basic and diluted 173,381 82,325 171,960 72,930 (1) Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities. (2) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three and six months ended June 30, 2025. Adjusted EBITDA Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Net loss $ (42,843 ) $ (552,212 ) $ (110,880 ) $ (616,955 ) Interest income (1,093 ) (1,718 ) (2,906 ) (2,749 ) Interest expense 21,579 13,295 39,582 26,533 Depreciation 8,347 6,415 16,230 12,684 Amortization 19,685 2,744 32,155 5,664 Provision for (benefit from) income taxes 212 95 (45,968 ) 106 EBITDA $ 5,887 $ (531,381 ) $ (71,787 ) $ (574,717 ) Losses on equity method investments 2,100 — 3,983 — Fair value changes(1) (37,546 ) 4,870 (5,696 ) 4,280 Stock-based compensation expense 22,455 488,313 45,429 488,313 Employer payroll tax related to stock-based compensation 1,873 4,762 7,126 4,762 Acquisition related expenses(2) 1,992 — 5,521 — G-4 Special Payment — 2,250 — 2,250 Amortization of technology license (3,988 ) — (7,977 ) — Franchise taxes related to IPO 1,647 — 1,647 — Adjusted EBITDA $ (5,580 ) $ (31,186 ) $ (21,754 ) $ (75,112 ) (1) Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities. (2) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions of during the three and six months ended June 30, 2025. Loss from Operations Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Loss from operations $ (61,774 ) $ (533,492 ) $ (130,463 ) $ (586,766 ) Stock-based compensation expense 22,455 488,313 45,429 488,313 Employer payroll tax related to stock-based compensation 1,873 4,762 7,126 4,762 Acquisition related expenses(1) 1,992 — 5,521 — Franchise taxes related to IPO 1,647 — 1,647 — Amortization of intangibles due to acquisition 16,771 — 27,927 — Non-GAAP loss from operations $ (17,036 ) $ (40,417 ) $ (42,813 ) $ (93,691 ) (1) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three and six months ended June 30, 2025. View source version on Contacts Tempus CommunicationsErin Carronmedia@ Tempus Investor RelationsElizabeth Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Tom's Guide
25 minutes ago
- Tom's Guide
ChatGPT-5 can now see and hear better than ever — here's why that matters
In the case of an AI, multimodality is the ability to understand and interact with input beyond just text. That means voice, image or video input. A multimodal chatbot can work with multiple types of input and output. This week's GPT-5 upgrade to ChatGPT dramatically raises the chatbot's speed and performance when it comes to coding, math and response accuracy. But arguably the most useful improvement in the grand scheme of AI development will be its multimodal capabilities. ChatGPT-5 brings an enhanced voice mode and a better ability to process visual information. While Sam Altman didn't go into details on multimodality specifically in this week's GPT-5 reveal livestream, he previously confirmed to Bill Gates on an episode of the latter's podcast that ChatGPT is moving towards "speech in, speech out. Images. Eventually video." The improved voice mode courtesy of GPT-5 now works with custom GPTs and will adapts its tone and speech style based on user instruction. For example, you could ask it to slow down if it's going to fast or make the voice style a bit warmer if you feel the tone is too harsh. OpenAI has also confirmed the old Standard Voice Mode across all its models is being phased out over the next 30 days. Of course, the majority of interaction with ChatGPT, or any of its best alternatives, will be through text. But as AI becomes an increasing part of every human's digital lives, it will need to transition fully into predominantly multimodal input. We've seen this before; social media only really got going when it moved off laptops and desktops and onto smartphones. Suddenly, users could snap pictures and upload them with the same device. Whether or not it's your phone or — as Zuckerberg will have you believe — a set of the best smart glasses is beside the point. The most successful AI will be the one that can make sense of the world around it. GPT‑5 has been designed to natively handle (and generate) across multiple different types of data within a single model. Previous iterations had used a plugin-style approach so moving away from that should result in more seamless interactions, whichever type of input you choose. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. There are a huge amount of benefits to a more robust multimodal AI, including for users who may have hearing or sight impairments. The ability to refine the responses from the chatbot to suit disabilities will do wonders for tech accessibility. There are a huge amount of benefits to a more robust multimodal AI, including for users who may have hearing or sight impairments. The increasing use of voice mode could be what drives the adoption of ChatGPT Plus, since the premium tier has unlimited responses while free users are still limited to a select number of hours. Meanwhile, improved image understanding means that, for example, the AI will be less prone to hallucinations when analyzing a chart or a picture you give it. That works in tandem with the tool's "Visual Workspace" feature that means it can interact with charts and diagrams. In turn, this will also train ChatGPT to produce better and more accurate images when prompted. If you think about this in an educational context, it's going to be a huge help. Especially since GPT-5 can now understand information across much longer stretches of conversation — users can refer back to images earlier in the conversation and it will remember them. While everyone knows that AI image generation has a dark side, there's no doubt that effective multimodality is the future of AI models and it'll be interesting to see what Google Gemini's response is to these GPT-5 upgrades. Follow Tom's Guide on Google News to get our up-to-date news, how-tos, and reviews in your feeds. Make sure to click the Follow button.
Business Wire
25 minutes ago
- Business Wire
Tempus Reports Second Quarter 2025 Results
CHICAGO--(BUSINESS WIRE)--Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine and patient care, today reported financial results for the quarter ended June 30, 2025. Revenue increased 89.6% year-over-year to $314.6 million in the second quarter Genomics revenue increased 115.3% year-over-year to $241.8 million on accelerating year-over-year volume growth in Oncology (26%) and Hereditary (32%) testing Data and services revenue increased 35.7% year-over-year to $72.8 million, led by Insights (data licensing), which grew 40.7% year-over-year Quarterly gross profit was $195.0 million, a 158.3% year-over-year increase Issued $750 million of 0.75% convertible senior notes that will drive significant interest expense and cash savings Increasing full year 2025 revenue guidance to $1.26 billion, along with positive adjusted EBITDA of $5 million, a $110 million improvement over 2024 'The business is performing well with revenues and margins growing faster than expected, contributing to our continued improvement in adjusted EBITDA on a year-over-year basis,' said Eric Lefkofsky, Founder and CEO of Tempus. 'We saw significant re-acceleration of our clinical volumes which grew 30% in the quarter, as we delivered more than 212,000 NGS tests. Combined with our continued leadership in AI and progress toward building the largest foundation model in oncology, 'we're hitting our stride' as we approach our 10th anniversary.' Second Quarter Summary Results Quarterly revenue increased 89.6% year-over-year to $314.6 million. Genomics contributed $241.8 million in revenue in the quarter, growing 115.3% compared to the second quarter of 2024. Oncology testing (Tempus genomics) delivered $133.2 million of revenue, up 32.9% year-over-year with approximately 26% volume growth versus 20% last quarter. Hereditary testing (Ambry genetics) contributed $97.3 million of revenue, up 33.6% year-over-year on a pro forma basis 1 with approximately 32% volume growth. Revenue from Data and services totaled $72.8 million in the second quarter, delivering 35.7% growth versus the second quarter of 2024, led by Insights (data licensing), which grew 40.7% year-over-year. Generated $195.0 million in quarterly gross profit, reflecting a 158.3% increase year-over-year. Improvement in reported net loss of ($42.8 million) in the second quarter of 2025, including fair value gains of $37.8 million related to our marketable equity securities and stock compensation and employer payroll tax related to stock-based compensation of ($24.3) million, compared to a net loss of ($552.2 million) in the second quarter of 2024. Adjusted EBITDA of ($5.6 million) in the second quarter of 2025 compared to ($31.2 million) in the second quarter of 2024, an improvement of $25.6 million year-over-year. Second Quarter and Recent Operational Highlights Strengthened Financial Flexibility: Just after quarter end, we completed an upsized offering of $750 million 0.75% convertible senior notes, enhancing our balance sheet and allowing us to replace a portion of the existing term loan with a significantly lower interest debt instrument. We also ended the quarter with $293.0 million in cash and marketable securities, an improvement of ~$70 million over last quarter. Expanded AI-Powered Clinical Tools: Extended Tempus Next™ care pathway intelligence platform into breast cancer, furthering AI-driven decision support across oncology. In addition, Tempus One™, our generative AI clinical assistant, was integrated into leading electronic health record (EHR) systems to enhance physician workflows and point-of-care insights. Advanced MRD and monitoring: Introduced Tempus xM™ for treatment and response monitoring (TRM), a liquid biopsy assay designed to monitor immunotherapy response in patients with advanced solid tumors, providing clinicians with actionable, real-time insights. We also expanded our exclusive collaboration with Personalis to include colorectal cancer as the fourth indication under the NeXT Personal® MRD commercial partnership. Reached new database milestone: Through more than 4,500 integrations, we are now connected to more than 40 million clinical patient records, with ~9 million de-identified and ingested, spanning ~1.1 billion healthcare documents, a significant percentage of which are connected to the ~4 million samples we have sequenced. As a result, our database now stands at >350 petabytes of connected clinical and molecular data. Approaching 10-Year anniversary: As we near Tempus' 10-year anniversary, we're reflecting on a decade of innovation and collaboration which now spans more than 2,000 publications including ~700 peer reviewed articles and ~180 oral presentations. ____________ (1) Not meaningful due to the impact of stock compensation expense and employer payroll tax related to stock-based compensation associated with the initial public offering in June 2024 Expand Financial Outlook and Guidance Tempus is increasing its guidance and now expects full year 2025 revenue of approximately $1.26 billion for the consolidated business, which represents approximately 82% annual growth, and Adjusted EBITDA of $5 million for full year 2025, an improvement of approximately $110 million over 2024. For additional information on the quarter, including a letter from our CEO and CFO, please visit our investors relations site at Webcast and Conference Call Information A conference call and webcast will be held on Friday, August 8, 2025 at 8:00 a.m. Eastern Time. Interested parties may access details using: Conference ID: 7005219 Domestic Dial-in Number: (800) 715 - 9871 International Dial-in Number: (646) 307 - 1963 Live webcast: The webcast may be accessed on the company's investor relations website at For those unable to listen to the live webcast, a recording will be made available on the company's website after the event and will be accessible for one year. Visit the investor relations website to find the company's latest deck, and commentary on the quarter and year by Eric Lefkofsky, Founder and CEO and Jim Rogers, CFO, which will be discussed on the conference call and webcast. About Tempus Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world's largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit Non-GAAP Financial Measures In addition to the financial information presented in this release in accordance with accounting principles generally accepted in the United States of America (GAAP), Tempus also presents adjusted non-GAAP financial measures. Non-GAAP gross profit is defined as GAAP gross profit, excluding stock-based compensation expense and employer payroll tax related to stock-based compensation (collectively, the 'stock-based compensation adjustments'). Non-GAAP gross margin is defined as gross profit, excluding the stock-based compensation adjustments, as a percentage of revenue. Non-GAAP operating expenses are calculated as the sum of technology research and development expense, research and development expense, and selling, general and administrative expense, excluding the stock-based compensation adjustments, acquisition-related expenses, amortization of intangibles due to acquisition, and franchise taxes related to our IPO. Non-GAAP loss from operations is defined as loss from operations, adjusted to exclude (i) stock-based compensation expense, (ii) employer payroll tax related to stock-based compensation expense, (iii) acquisition-related expenses, (iv) franchise taxes related to our IPO, and (v) amortization of intangibles due to acquisition. Non-GAAP net loss is defined as net loss, adjusted to exclude (i) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, (ii) stock-based compensation expense, (iii) employer payroll tax related to stock-based compensation expense, (iv) acquisition-related expenses, (v) amortization of intangibles due to acquisition, (vi) losses on equity method investments, (vii) (benefit from) provision for income taxes, (viii) the payment of $2.3 million of our Series G-4 convertible preferred stock in connection with the initial public offering (the "G-4 Special Payment"), (ix) franchise taxes related to our IPO, and (x) amortization of deferred other income from our IP License Agreement with SB Tempus. Non-GAAP net loss per share is defined as non-GAAP net loss divided by weighted average common shares outstanding, basic and diluted. Adjusted EBITDA is defined as net loss, adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) provision for (benefit from) income taxes, (v) losses on equity method investments, (vi) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, (vii) stock-based compensation expense, (viii) employer payroll tax related to stock-based compensation expense, (ix) acquisition related expenses, (x) the G-4 Special Payment, (xi) amortization of deferred other income from our IP License Agreement with SB Tempus, and (xii) franchise taxes related to our IPO. Tempus believes these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by institutional investors and the analyst community to help them analyze the health of Tempus' business. In particular, Adjusted EBITDA is a key measurement used by Tempus management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures. Tempus does not provide guidance for net loss, the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA, and similarly cannot provide a reconciliation between Tempus' forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of reliable estimates for certain components of net income (loss) and the respective reconciliations. These forecasted items are not within Tempus' control, may vary greatly between periods, and could significantly impact future financial results. Other Key Metrics Total Remaining Contract Value (TCV) is equal to the total potential value of signed contracts and assumes the exercise of all contract options, all discretionary opt-ins, and no early termination. Remaining TCV excludes any revenue recognized to date on these contracts or any future adjustments made to the contractual value as a result of amendments or terminations. Net Revenue Retention compares the annual Insights product revenue generated from all customers that made an Insights purchase in one year to the annual Insights product revenue generated from the same cohort of customers in the subsequent year. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the 'Securities Act'), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and its industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, Tempus' expected financial results for full year 2025; expectations concerning the interest and cost savings associated with our convertible senior notes; and other statements that are not historical fact. In some cases, you can identify forward-looking statements because they contain words such as 'anticipate,' 'believe,' 'contemplate,' 'continue,' 'could,' 'estimate,' 'expect,' 'going to,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'should,' 'target,' 'will,' or 'would' or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release. You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus' business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: the intended use of Tempus' products and services; Tempus' financial performance; the ability to attract and retain customers and partners; managing Tempus' growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus' intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments, including Tempus' ability to realize the expected benefits of the acquisition of Ambry Genetics and Deep 6 AI; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, trade tensions and tariffs, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled 'Risk Factors' in Tempus' Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission ('the SEC') on February 24, 2025, as supplemented by Tempus' Form 10-Q for the quarter ended June 30, 2025, filed with the SEC on August 8, 2025, as well as in other filings Tempus may make with the SEC in the future. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. (1) Includes related party revenue of $15,908, $108, $16,539, $215 for the three and six months ended June 30, 2025 and 2024, respectively. Expand Tempus AI, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) December 31, 2024 Assets Current Assets Cash and cash equivalents $ 186,310 $ 340,954 Accounts receivable, net of allowances of $1,545 and $1,141 at June 30, 2025 and December 31, 2024, respectively 266,284 154,819 Inventory 47,600 38,386 Related party asset 2,535 — Prepaid expenses and other current assets 36,476 26,135 Marketable equity securities 104,996 107,309 Total current assets $ 644,201 $ 667,603 Property and equipment, net 92,563 58,056 Goodwill 325,793 73,343 Intangible assets, net 387,564 11,716 Investments and other assets 16,669 8,305 Investment in joint venture 95,718 91,450 Related party asset, less current portion 22,465 — Operating lease right-of-use assets 38,651 14,762 Restricted cash 1,741 881 Total Assets $ 1,625,365 $ 926,116 Liabilities, Convertible redeemable preferred stock, and Stockholders' equity Current Liabilities Accounts payable 79,323 53,804 Related party payable 25,000 — Accrued expenses 165,903 130,407 Deferred revenue (1) 100,477 75,981 Deferred other income 15,955 15,955 Other current liabilities 16,554 6,964 Operating lease liabilities 9,381 6,459 Accrued data licensing fees 5,567 1,500 Total current liabilities $ 418,160 $ 291,070 Operating lease liabilities, less current portion 45,866 26,199 Convertible promissory note 226,342 168,192 Other long-term liabilities 9,508 15,980 Revolving credit facility 100,000 — Interest payable 5,084 70,450 Long-term debt, net 471,663 267,244 Deferred other income, less current portion 15,955 23,932 Deferred revenue, less current portion 23,225 6,710 Total Liabilities $ 1,315,803 $ 869,777 Expand (1) Includes related party deferred revenue of $36,685 and $0 as of June 30, 2025 and December 31, 2024, respectively. Expand Commitments and contingencies (Note 8) Convertible redeemable preferred stock, $0.0001 par value, 20,000,000 shares authorized at June 30, 2025 and December 31, 2024, respectively, no shares issued and outstanding at June 30, 2025 and December 31, 2024; aggregate liquidation preference of $0 at June 30, 2025 and December 31, 2024, respectively $ — $ — Stockholders' equity Class A Voting Common Stock, $0.0001 par value, 1,000,000,000 shares authorized at June 30, 2025 and December 31, 2024, respectively; 168,580,827 and 157,076,972 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 17 16 Class B Voting Common Stock, $0.0001 par value, 5,500,000 shares authorized at June 30, 2025 and December 31, 2024, respectively; 5,043,789 issued and outstanding at June 30, 2025 and December 31, 2024, respectively 1 1 Non-voting Common Stock, $0.0001 par value, no shares authorized at June 30, 2025 and December 31, 2024, respectively; no shares issued and outstanding at June 30, 2025, and December 31, 2024, respectively — — Treasury Stock, 145,466 shares at June 30, 2025 and December 31, 2024, at cost (3,602 ) (3,602 ) Additional Paid-In Capital 2,566,412 2,210,664 Accumulated Other Comprehensive Income 8,448 94 Accumulated deficit (2,261,714 ) (2,150,834 ) Total Stockholders' equity $ 309,562 $ 56,339 Total Liabilities, Convertible redeemable preferred stock, and Stockholders' equity $ 1,625,365 $ 926,116 Expand Tempus AI, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands, except per share amounts) Six Months Ended June 30, 2025 2024 Operating activities Net loss $ (110,880 ) $ (616,955 ) Adjustments to reconcile net loss to net cash used in operating activities Change in fair value of warrant liability $ — $ (900 ) Stock-based compensation 45,429 488,313 Gain on warrant exercise — (173 ) Gain on marketable equity securities (6,007 ) (2,541 ) Deferred income taxes (46,216 ) — Losses from equity method investments 3,983 — Amortization of original issue discount 1,169 691 Amortization of deferred financing fees 332 255 Change in fair value of contingent consideration — 165 Change in fair value of holdback liability 312 — Amortization of warrant contract asset — 2,422 Depreciation and amortization 48,385 18,348 Provision for bad debt expense 625 327 Change in fair value of warrant asset — 7,700 Non-cash operating lease costs 4,573 3,252 Minimum accretion expense 108 92 PIK interest added to principal 7,157 4,366 Change in assets and liabilities Accounts receivable (49,155 ) (23,971 ) Inventory 1,974 (3,845 ) Prepaid expenses and other current assets (188 ) (12,409 ) Investments and other assets (11,073 ) 1,294 Accounts payable 7,025 (33,371 ) Deferred revenue (1) 36,836 (28,669 ) Deferred other income (7,977 ) — Accrued data licensing fees 3,957 (2,749 ) Accrued expenses & other 6,991 (2,805 ) Interest payable 7,122 7,287 Operating lease liabilities (5,942 ) (4,582 ) Net cash used in operating activities $ (61,460 ) $ (198,458 ) Investing activities Purchases of property and equipment $ (9,588 ) $ (14,116 ) Proceeds from sale of marketable equity securities 8,316 23,098 Business combinations, net of cash acquired (Note 4) (380,762 ) — Purchases of capitalized software (3,295 ) — Net cash (used in) provided by investing activities $ (385,329 ) $ 8,982 Expand (1) Includes increase in related party deferred revenue of $36,685 and $0 as of June 30, 2025 and December 31, 2024, respectively. Expand Financing activities Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions $ — $ 381,951 Tax withholding related to net share settlement of restricted stock units — (69,918 ) Issuance of Series G-5 Preferred Stock — 199,750 Payment of deferred offering costs — (2,714 ) Dividends paid — (5,625 ) Proceeds from revolving credit facility, net of original issue discount 98,000 — Proceeds from long-term debt, net of original issue discount 196,000 — Payment of deferred financing fees (958 ) — Payment of indemnity holdback related to acquisition — (813 ) Net cash provided by financing activities $ 293,042 $ 502,631 Effect of foreign exchange rates on cash $ (37 ) $ (90 ) Net (decrease) increase in Cash, Cash Equivalents and Restricted Cash $ (153,784 ) $ 313,065 Cash, cash equivalents and restricted cash, beginning of period 341,835 166,607 Cash, cash equivalents and restricted cash, end of period $ 188,051 $ 479,672 Cash, Cash Equivalents and Restricted Cash are Comprised of: Cash and cash equivalents $ 186,310 $ 478,811 Restricted cash and cash equivalents 1,741 861 Total cash, cash equivalents and restricted cash $ 188,051 $ 479,672 Supplemental disclosure of cash flow information Cash paid during the year for interest $ 23,980 $ 13,921 Cash paid for income taxes $ 136 $ 89 Supplemental disclosure of noncash investing and financing activities Dividends payable $ — $ 5,487 Purchases of property and equipment, accrued but not paid $ 6,863 $ 1,108 Redemption of convertible promissory note $ 14,338 $ 12,476 Non-voting common stock issued in connection with business combinations $ — $ 344 Deferred financing fees, accrued but not yet paid $ 545 $ — Deferred offering costs, accrued but not yet paid $ 95 $ 6,051 Operating lease liabilities arising from obtaining right-of-use assets $ 606 $ — Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering $ — $ 1,348,809 Taxes related to net share settlement of restricted stock units not yet paid $ — $ 164 Reclassification of deferred offering costs to additional paid-in capital upon initial public offering $ — $ 12,347 Class A Voting Common Stock issued in connection with business combinations $ 310,320 $ — Issuance of Series G-3 Preferred Stock $ — $ 3,809 Issuance of Series G-4 Preferred Stock $ — $ 611 Convertible promissory note principal reset due to amendment $ 72,488 $ — Expand Tempus AI, Inc. (Unaudited) (in thousands, except percentages and per share amounts) Genomics Gross Profit & Gross Margin Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Genomics revenue $ 241,843 $ 112,324 $ 435,647 $ 214,893 Cost of revenues, genomics 99,756 68,324 184,539 121,159 Gross profit, genomics $ 142,087 $ 44,000 $ 251,108 $ 93,734 Stock-based compensation expense 1,420 11,327 2,455 11,327 Employer payroll tax related to stock-based compensation 254 136 302 136 Non-GAAP gross profit, genomics $ 143,761 $ 55,463 $ 253,865 $ 105,197 Genomics gross margin 58.8 % 39.2 % 57.6 % 43.6 % Stock-based compensation expense 0.6 % 10.1 % 0.6 % 5.3 % Employer payroll tax related to stock-based compensation 0.1 % 0.1 % 0.1 % 0.1 % Non-GAAP gross margin, genomics 59.4 % 49.4 % 58.3 % 49.0 % Expand Data and Services Gross Profit & Gross Margin Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Data and services revenue $ 72,792 $ 53,645 $ 134,725 $ 96,896 Cost of revenues, data and services 19,840 22,132 35,591 37,420 Gross profit, data and services $ 52,952 $ 31,513 $ 99,134 $ 59,476 Stock-based compensation expense 693 7,229 1,304 7,229 Employer payroll tax related to stock-based compensation 114 119 158 119 Non-GAAP gross profit, data and services $ 53,759 $ 38,861 $ 100,596 $ 66,824 Gross margin, data and services 72.7 % 58.7 % 73.6 % 61.4 % Stock-based compensation expense 1.0 % 13.5 % 1.0 % 7.5 % Employer payroll tax related to stock-based compensation 0.2 % 0.2 % 0.1 % 0.1 % Non-GAAP gross margin, data and services 73.9 % 72.4 % 74.7 % 69.0 % Expand Total Gross Profit & Gross Margin Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net revenue $ 314,635 $ 165,969 $ 570,372 $ 311,789 Cost of revenues 119,596 90,456 220,130 158,579 Gross profit $ 195,039 $ 75,513 $ 350,242 $ 153,210 Stock-based compensation expense 2,113 18,556 3,759 18,556 Employer payroll tax related to stock-based compensation 369 255 460 255 Non-GAAP gross profit $ 197,521 $ 94,324 $ 354,461 $ 172,021 Gross margin 62.0 % 45.5 % 61.4 % 49.1 % Stock-based compensation expense 0.7 % 11.2 % 0.7 % 6.0 % Employer payroll tax related to stock-based compensation 0.1 % 0.2 % 0.1 % 0.1 % Non-GAAP gross margin 62.8 % 56.8 % 62.1 % 55.2 % Expand Operating Expenses Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Technology research and development $ 34,482 $ 77,908 $ 67,873 $ 104,975 Stock-based compensation expense 3,285 50,434 6,604 50,434 Employer payroll tax related to stock-based compensation 495 1,248 756 1,248 Non-GAAP technology research and development $ 30,702 $ 26,226 $ 60,513 $ 53,293 Research and development $ 41,619 $ 68,025 $ 77,493 $ 92,365 Stock-based compensation expense 2,335 42,233 4,317 42,233 Employer payroll tax related to stock-based compensation 235 676 411 676 Non-GAAP research and development $ 39,049 $ 25,116 $ 72,765 $ 49,456 Selling, general and administrative $ 180,712 $ 463,072 $ 335,339 $ 542,636 Stock-based compensation expense 14,722 377,090 30,749 377,090 Employer payroll tax related to stock-based compensation 774 2,582 5,499 2,582 Acquisition related expenses 1,992 — 5,521 — Amortization of intangibles due to acquisition 16,771 — 27,927 — Franchise taxes related to IPO 1,647 — 1,647 — Non-GAAP selling, general and administrative $ 144,806 $ 83,400 $ 263,996 $ 162,964 Operating expenses $ 256,813 $ 609,005 $ 480,705 $ 739,976 Stock-based compensation expense 20,342 469,757 41,670 469,757 Employer payroll tax related to stock-based compensation 1,504 4,506 6,666 4,506 Acquisition related expenses 1,992 — 5,521 — Amortization of intangibles due to acquisition 16,771 — 27,927 — Franchise taxes related to IPO 1,647 — 1,647 — Non-GAAP operating expenses $ 214,557 $ 134,742 $ 397,274 $ 265,713 Expand Earnings per Share Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss $ (42,843 ) $ (552,212 ) $ (110,880 ) $ (616,955 ) Fair value changes (1) (37,546 ) 4,870 (5,696 ) 4,280 Stock-based compensation expense 22,455 488,313 45,429 488,313 Employer payroll tax related to stock-based compensation 1,873 4,762 7,126 4,762 Acquisition related expenses (2) 1,992 — 5,521 — Amortization of intangibles due to acquisition 16,771 — 27,927 — Losses on equity method investments 2,100 — 3,983 — Provision for (benefit from) income taxes 212 95 (45,968 ) 106 G-4 Special Payment — 2,250 — 2,250 Franchise taxes related to IPO 1,647 — 1,647 — Amortization of technology license (3,988 ) — (7,977 ) — Non-GAAP net loss $ (37,327 ) $ (51,922 ) $ (78,888 ) $ (117,244 ) Non-GAAP net loss per share $ (0.22 ) $ (0.63 ) $ (0.46 ) $ (1.61 ) Weighted average common shares outstanding, basic and diluted 173,381 82,325 171,960 72,930 Expand (1) Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities. (2) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three and six months ended June 30, 2025. Expand Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss $ (42,843 ) $ (552,212 ) $ (110,880 ) $ (616,955 ) Interest income (1,093 ) (1,718 ) (2,906 ) (2,749 ) Interest expense 21,579 13,295 39,582 26,533 Depreciation 8,347 6,415 16,230 12,684 Amortization 19,685 2,744 32,155 5,664 Provision for (benefit from) income taxes 212 95 (45,968 ) 106 EBITDA $ 5,887 $ (531,381 ) $ (71,787 ) $ (574,717 ) Losses on equity method investments 2,100 — 3,983 — Fair value changes (1) (37,546 ) 4,870 (5,696 ) 4,280 Stock-based compensation expense 22,455 488,313 45,429 488,313 Employer payroll tax related to stock-based compensation 1,873 4,762 7,126 4,762 Acquisition related expenses (2) 1,992 — 5,521 — G-4 Special Payment — 2,250 — 2,250 Amortization of technology license (3,988 ) — (7,977 ) — Franchise taxes related to IPO 1,647 — 1,647 — Expand (1) Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities. (2) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions of during the three and six months ended June 30, 2025. Expand Loss from Operations Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Loss from operations $ (61,774 ) $ (533,492 ) $ (130,463 ) $ (586,766 ) Stock-based compensation expense 22,455 488,313 45,429 488,313 Employer payroll tax related to stock-based compensation 1,873 4,762 7,126 4,762 Acquisition related expenses (1) 1,992 — 5,521 — Franchise taxes related to IPO 1,647 — 1,647 — Amortization of intangibles due to acquisition 16,771 — 27,927 — Non-GAAP loss from operations $ (17,036 ) $ (40,417 ) $ (42,813 ) $ (93,691 ) Expand (1) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three and six months ended June 30, 2025. Expand
