Tempus AI (TEM) Plunges 4.88% in Steepest Drop Since Year Start Amid Regulatory Hurdles, Mixed Earnings

The share price fell to its lowest level so far this month today, with an intraday decline of 3.86%. Tempus AI (TEM) has now fallen 4.88% over three consecutive sessions, marking its steepest drop since the start of the year. The decline follows a string of challenges, including regulatory uncertainties and mixed financial results, that have weighed on investor confidence despite strategic expansion efforts.

The company reported positive adjusted EBITDA in Q3 2025 but posted a net loss of $79.9 million, highlighting ongoing profitability struggles. A debt-to-equity ratio of 1.2 and negative margins underscore financial leverage risks. Meanwhile, the acquisition of Paige.AI, aimed at bolstering AI-driven healthcare capabilities, has introduced integration complexities and regulatory hurdles, further complicating its growth trajectory.

Technical indicators show a bearish trend, with the stock trading below key resistance levels. Analysts caution that without significant cost reductions or revenue diversification, Tempus AI may struggle to turn a profit. While strategic partnerships and R&D investments offer long-term potential, near-term pressures—including compliance delays and competitive pressures—remain critical headwinds for the stock.