Tempus AI's Q2 Earnings Update: Analysts Reassess Valuation

Tempus AI reported Q2 earnings with revenues of $315m, a 5.7% increase from analyst forecasts. Statutory losses per share were $0.25, 5.7% lower than expected. Analysts have updated their forecasts, with revenues expected to reach $1.26b in 2025, a 32% improvement from the last 12 months. However, the consensus price target remains at $68.20, with estimates ranging from $60 to $75 per share.

Tempus AI, Inc. (NASDAQ: TEM) reported its second-quarter 2025 financial results on August 8, 2025, with revenues of $314.6 million, an 89.6% year-over-year increase. This figure exceeded analyst forecasts by 5.7%. The company's quarterly gross profit of $195.0 million reflected a 158.3% year-over-year increase, while net loss per share attributable to common shareholders was $0.25, 5.7% lower than expected [1].

Tempus AI's genomics revenue grew by 115.3% year-over-year to $241.8 million, driven by accelerating volume growth in Oncology (26%) and Hereditary (32%) testing. Data and services revenue increased by 35.7% year-over-year to $72.8 million, led by Insights (data licensing), which grew by 40.7% year-over-year. The company issued $750 million of 0.75% convertible senior notes to enhance its balance sheet and reduce interest expenses [1].

The company's adjusted EBITDA for the second quarter 2025 was $5.6 million, an improvement of $25.6 million year-over-year. Tempus AI expects full-year 2025 revenue of approximately $1.26 billion, representing approximately 82% annual growth, and adjusted EBITDA of $5 million, an improvement of approximately $110 million over 2024 [1].

Analysts have updated their forecasts, expecting revenues to reach $1.26 billion in 2025, a 32% improvement from the last 12 months. However, the consensus price target remains at $68.20, with estimates ranging from $60 to $75 per share [1].

Tempus AI's operational highlights include the upsized offering of $750 million 0.75% convertible senior notes, the expansion of its Tempus Next™ care pathway intelligence platform into breast cancer, and the integration of Tempus One™ into leading electronic health record (EHR) systems. Additionally, Tempus AI introduced Tempus xM™ for treatment and response monitoring (TRM), a liquid biopsy assay designed to monitor immunotherapy response in patients with advanced solid tumors [1].

As Tempus AI approaches its 10-year anniversary, the company has achieved significant milestones, including more than 2,000 publications and over 4,500 integrations, connecting to more than 40 million clinical patient records [1].

References:
[1] https://investors.tempus.com/news-releases/news-release-details/tempus-reports-second-quarter-2025-results