Tempus AI Raises Earnings Guidance, Sees Revenue Jump 11% Amid $500M Equity Offering

Tempus AI raises 2025 earnings guidance and reports improved Q2 2025 financial results with revenue up from last year and reduced net losses. The company pursues a $500 million equity offering, boosting its share price 11% over the past week. With strong growth potential and strategic partnerships, Tempus AI's total shareholder return over the last year was 57.08%, outperforming the life sciences sector. However, challenges such as reliance on pharma partnerships and data privacy issues remain.

Tempus AI, Inc. (NASDAQ: TEM) has reported robust financial results for the second quarter of 2025, with revenue increasing by 89.6% year-over-year to $314.6 million. The company's genomics revenue surged 115.3% to $241.8 million, driven by significant growth in oncology and hereditary testing. Data and services revenue also grew by 35.7% to $72.8 million, with Insights (data licensing) contributing to this growth [1].

Tempus AI's gross profit for the quarter jumped 158.3% to $195.0 million, while the company reported a net loss of $42.8 million, an improvement over the $552.2 million net loss in the same period last year. Adjusted EBITDA improved by $25.6 million to $5.6 million [1].

The company's financial performance was bolstered by strategic initiatives such as the expansion of Tempus Next™ care pathway intelligence platform into breast cancer, the integration of Tempus One™ into leading electronic health record (EHR) systems, and the introduction of Tempus xM™ for treatment and response monitoring (TRM) [1].

Tempus AI also issued $750 million of 0.75% convertible senior notes, enhancing its balance sheet and reducing interest expenses. The company ended the quarter with $293.0 million in cash and marketable securities, an improvement of ~$70 million over the previous quarter [1].

The company has raised its full-year 2025 revenue guidance to approximately $1.26 billion, representing approximately 82% annual growth. Adjusted EBITDA for the full year 2025 is expected to be $5 million, an improvement of approximately $110 million over 2024 [1].

Tempus AI's share price has seen an 11% increase over the past week, boosted by the company's strong financial performance and strategic initiatives. The company's total shareholder return over the last year was 57.08%, outperforming the life sciences sector [1].

However, Tempus AI faces challenges such as reliance on pharma partnerships and data privacy issues. The company will need to address these challenges to maintain its growth trajectory [1].

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