Tempus AI Raises Outlook, CEO Cites Faster-Than-Expected Growth And Improved Margins
The AI-focused precision medicine and patient care company reported a second-quarter adjusted loss of 22 cents per share, beating analyst estimates for a loss of 24 cents per share.
Tempus AI reported quarterly revenue of $314.64 million, beating the consensus estimates of $296.85 million. Revenue increased 89.6% year-over-year.
Genomics contributed $241.8 million in revenue in the quarter, growing 115.3% year over year.Oncology testing (Tempus genomics) delivered $133.2 million of revenue, up 32.9%, with approximately 26% volume growth versus 20% last quarter.
Hereditary testing sales (Ambry genetics) reached $97.3 million, up 33.6% year-over-year on a pro forma basis with approximately 32% volume growth.
Revenue from Data and services totaled $72.8 million, delivering 35.7% growth versus the second quarter of 2024, led by Insights (data licensing), which grew 40.7% year-over-year.
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.
View more earnings on TEM
'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,' Lefkofsky said in a statement on Friday.
Database Update
Through more than 4,500 integrations, Tempus said it connected to more than 40 million clinical patient records, with around 9 million de-identified and ingested, spanning approximately 1.1 billion healthcare documents, a significant percentage of which are connected to the around 4 million samples the company has sequenced.
As a result, the company's database stands at over 350 petabytes of connected clinical and molecular data.
Tempus AI ended the quarter with $293.0 million in cash and marketable securities, an improvement of around $70 million over last quarter.
Outlook
Tempus AI increased its guidance and expects a full year of 2025 revenue of approximately $1.26 billion for the consolidated business, representing approximately 82% annual growth, compared to the consensus of $1.25 billion.
Earlier, the company expected revenue between $1.24 billion and $1.25 billion for its consolidated Tempus and Ambry Genetics business.
The company reaffirms full-year 2025 adjusted EBITDA of $5 million, an improvement of approximately $110 million over 2024.
Tempus AI received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its ejection fraction software in July.
Tempus said the FDA granted it 510(k) clearance for its Tempus ECG-Low EF software, which uses AI to identify patients with a potential left ventricular ejection fraction.
Price Action: Tempus AI shares were up 5.79% after hours, trading at $55.21 at the time of publication on Tuesday.
Read Next:Photo by Piotr Swat via Shutterstock
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This article Tempus AI Raises Outlook, CEO Cites Faster-Than-Expected Growth And Improved Margins originally appeared on Benzinga.com
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