Tempus AI 2025 Q1 Earnings Revenue Soars 75.4%

Tempus AI (TEM) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company exceeded revenue expectations, achieving a significant 75.4% year-over-year increase with total revenue rising to $255.74 million. This impressive growth was primarily driven by strong performance across its key business segments. tempus ai also raised its full-year 2025 revenue guidance to $1.25 billion. Despite the revenue growth, the company's net loss widened slightly compared to the previous year. The results reflect Tempus AI's robust market position and strategic partnerships.

Revenue
Tempus AI's revenue for 2025 Q1 climbed to $255.74 million, marking a 75.4% increase compared to 2024 Q1. Genomics was the leading contributor, generating $193.8 million and experiencing an 88.9% increase from the previous year. Oncology testing revenues reached $119.0 million, up by 31%, with hereditary testing bringing in $63.5 million, showing a 23% unit growth. Meanwhile, data and services revenue rose to $61.9 million, a 43.2% increase, driven by a 58% growth in data licensing.

Earnings/Net Income
Tempus AI narrowed its EPS loss to $0.40 in 2025 Q1 from $1.47 in 2024 Q1, a 72.8% improvement. However, the net loss increased to $68.04 million from $64.74 million last year, indicating continued financial challenges. The EPS improvement suggests better operational efficiency.

Post-Earnings Price Action Review
Tempus AI's historical strategy of buying shares after a revenue drop quarter-over-quarter and holding for 30 days has consistently yielded strong returns over the past five years. This approach has delivered a 25.93% return, significantly outperforming the benchmark's -2.83% return. The strategy's excess return of 28.76% reflects its ability to capitalize on market opportunities following revenue declines. The compound annual growth rate (CAGR) of 31.35% underscores its robust performance over the period. While the Sharpe ratio remains moderate at 0.61, the strategy carries notable risk with high volatility at 51.21% and a maximum drawdown of -32.52%. Overall, the strategy demonstrates an adeptness at exploiting market downturns, albeit with inherent risks and periods of volatility.

CEO Commentary
Eric Lefkofsky, Founder and CEO of Tempus AI, highlighted the record Q1 performance with a 75.4% revenue increase, driven by strong growth in genomics and oncology testing. He emphasized cost management and operating leverage improvements, announcing a significant $200 million data license agreement with AstraZeneca and Pathos. Lefkofsky expressed optimism about the company's future, focusing on precision medicine advancements.

Guidance
Tempus AI has raised its full-year 2025 revenue guidance to $1.25 billion, anticipating 80% year-over-year growth. This projection includes expectations from the AstraZeneca and Pathos agreement and ongoing business performance. The company aims to sustain its growth in genomics and data services while remaining vigilant about market dynamics and customer demand.

Additional News
Tempus AI recently made significant strides in strategic collaborations and acquisitions. The company announced a multi-year partnership with AstraZeneca and Pathos to develop a multimodal foundation model in oncology, securing $200 million in additional data licensing and development fees over three years. In a strategic move to expand its capabilities, Tempus completed the acquisition of Ambry Genetics, enhancing its genomic testing and molecular diagnostics portfolio. Additionally, Tempus disclosed a collaboration with Illumina to integrate AI technologies with its multimodal data platform, aiming to accelerate the clinical adoption of molecular testing. These developments underscore Tempus AI's commitment to advancing precision medicine and its strong position in the healthcare technology sector.

Ask Aime: What's the outlook for Tempus AI after its impressive Q1 earnings?