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Tempus AI's Q2 revenue exceeded expectations, with $314.6M in revenue. The company raised its 2025 revenue outlook for the second time this year, posting a 9% gain in pre-market trading on Friday.

Tempus AI Inc. (NASDAQ:TEM) reported its second-quarter (Q2) 2025 financial results, revealing a significant surge in revenue that exceeded analyst expectations. The company’s Q2 revenue reached $314.6 million, marking an 89.6% year-over-year increase, which surpassed the consensus estimate of $297.8 million [1]. This robust performance was driven by strong growth across its genomics and data services businesses.

Tempus AI’s non-GAAP loss per share narrowed to $0.22, a notable improvement from the expected $0.23, and the company’s full-year 2025 revenue guidance was raised to $1.26 billion [1]. The company also expects adjusted EBITDA profitability for fiscal 2025, a significant milestone for the company’s first decade [1].

The quarter saw substantial growth in genomics revenue, which climbed to $241.8 million, up 115.3% year-over-year. Oncology testing revenue reached $133.2 million, with a 26% volume increase, while hereditary testing sales (Ambry genetics) contributed $97.3 million, growing 32% year-over-year [1]. Data and services revenue grew by 35.7% to $72.8 million, with Insights (data licensing) alone increasing by 40.7% [1].

Gross profit (GAAP) for Q2 2025 was $195.0 million, with gross margins (GAAP) climbing to 62.0% from 45.5% in Q2 2024. Genomics gross margin (non-GAAP) increased from 49.4% to 59.4%, and data and services gross margin (GAAP) also improved [1]. Operating expenses as a percent of revenue declined, leading to narrower operating losses and driving adjusted EBITDA closer to breakeven.

Tempus AI’s CEO, Eric Lefkofsky, commented on the company’s performance, stating, "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. We saw significant re-acceleration of our clinical volumes, which grew 30% in the quarter, as we delivered more than 212,000 NGS tests" [2].

The company’s database now comprises over 40 million patient records, more than 350 petabytes of clinical and molecular data, and over 4,500 healthcare system integrations [1]. Tempus AI ended the quarter with $293.0 million in cash and marketable securities [1].

Tempus AI has also been actively pursuing strategic collaborations, particularly with large pharmaceutical companies, to drive growth and product development. The company’s ability to harness AI for intelligent diagnostics and scale its proprietary data sets underpins its long-term competitive positioning.

In conclusion, Tempus AI’s Q2 2025 results demonstrate strong operational execution and growth potential. The company’s continued focus on AI and data partnerships, along with its expanding database, positions it well for future success. Investors should keep an eye on Tempus AI’s progress in securing regulatory reimbursement for new diagnostic assays and its ongoing investments in its database, clinical integration capacity, and AI foundation model development.

References:
[1] https://www.nasdaq.com/articles/tempus-ai-tem-q2-revenue-surges-90
[2] https://finance.yahoo.com/news/tempus-ai-raises-outlook-ceo-111348147.html