Tempus AI's Q2 2025 Earnings Call: Unpacking Key Contradictions in Genomics Growth and AI Strategy

Genomics volume growth and drivers, Pathos revenue contribution expectations, Ambry's growth projections, AI revenue distribution and growth, AI market evolution and Microsoft's positioning are the key contradictions discussed in Tempus AI's latest 2025Q2 earnings call.



Revenue Growth and Genomics Performance:
- Tempus AI, Inc. reported a revenue increase of 89.6% to $314.6 million for Q2 2025, with Genomics revenue increasing by 115% to $241.8 million.
- The growth was driven by accelerating volume growth in oncology, which increased from 20% in the previous quarter to 26% this quarter, and strong hereditary testing growth at 32%.

Data and Services Expansion:
- Data and Services revenue increased by 35.7% to $73 million, with Insights, the data licensing arm, growing by almost 41%.
- This expansion was a result of building a foundation model for AstraZeneca, indicating strong visibility for the remainder of the year.

Adjusted EBITDA Improvement:
- Adjusted EBITDA improved from a negative $16 million in the previous quarter to a negative $5.6 million.
- The improvement is attributed to disciplined investments and operating leverage as the company approaches adjusted EBITDA breakeven.

Liquid Biopsy and Market Share:
- Tempus's liquid biopsy volume grew significantly faster than the market, with the xT assay representing about 25% to 30% of total volume.
- Growth was driven by the company's competitive assay and market share gains, benefiting from investments in hereditary testing and rare disease areas.