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TEMPUS ALERT: Bragar Eagel & Squire, P.C. is Investigating Tempus AI, Inc. on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm
GlobeNewswire News Room· 2025-08-14 22:49
Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Tempus AI, Inc. following a class action complaint that alleges breaches of fiduciary duties by the company's board of directors during the specified class period [1][2]. Group 1: Allegations and Issues - The complaint alleges that Tempus inflated the value of contract agreements, many of which were with related parties and included non-binding opt-ins or were self-funded [2]. - Concerns were raised regarding the credibility of Tempus' joint venture with SoftBank, suggesting it appeared to involve "round-tripping" capital to create revenue [2]. - The business model of Tempus-acquired Ambry is criticized for aggressive and potentially unethical billing practices, risking scrutiny and sustainability [2]. - AstraZeneca reportedly reduced its financial commitments to Tempus through a questionable "pass-through payment" arrangement [2]. - These issues collectively indicate weaknesses in Tempus' core operations and revenue prospects [2]. Group 2: Financial Impact - Following the release of a report by Spruce Point Capital Management that raised significant concerns about Tempus' management and financial reporting, the stock price of Tempus fell by $12.67 per share, or 19.23%, from $65.87 to $53.20 on May 28, 2025 [3][4]. Group 3: Legal and Contact Information - Long-term stockholders of Tempus are encouraged to contact Bragar Eagel & Squire for discussions regarding their legal rights and potential claims [1][5]. - The law firm specializes in representing individual and institutional investors in complex litigation across various courts [6].
Tempus AI's Strong Q2 Fuels Growth Story—More Upside Ahead?
MarketBeat· 2025-08-13 20:39
Core Viewpoint - Tempus AI has emerged as a notable player in the healthcare IPO space, distinguishing itself from typical biotech companies by generating significant revenue and showing strong profitability improvements [1][2]. Financial Performance - In Q2 2025, Tempus generated sales of just under $315 million, reflecting a growth rate of nearly 90%, surpassing Wall Street's estimate of around 79% [3]. - The company's adjusted gross margin increased to 62.8%, up from 61.4% in Q1 2025 and 56.8% in Q2 2024 [4]. - Tempus improved its adjusted EBITDA margin to -1.8%, compared to -6.3% in Q1 2025 and -18.8% in Q2 2024 [4]. - The firm raised its full-year revenue guidance from $1.25 billion to $1.26 billion [4]. Profitability Outlook - Tempus is on track to generate $5 million of adjusted EBITDA in 2025, a significant improvement from an adjusted EBITDA loss of $110 million in 2024 [5]. - The company is experiencing robust demand growth for its offerings, indicating a positive trajectory towards achieving adjusted operating profitability this year [5]. Analyst Ratings and Price Targets - Morgan Stanley raised its price target for Tempus from $65 to $68 following the Q2 earnings release, while the MarketBeat consensus price target is slightly over $65, suggesting a potential downside from the current price [6]. - The average target among analysts updated since June 25 is approximately $68.60, indicating just over 3% upside potential [7]. Long-Term Growth Potential - Despite short-term challenges, Tempus AI has a significant long-term opportunity, as pharmaceutical and biotechnology companies spent $276 billion on R&D in 2021, which could translate into revenue for Tempus as it enhances R&D efforts [9]. - The expected revenue of $1.26 billion in 2025 represents a small fraction of the total R&D spending, highlighting a substantial runway for long-term revenue growth [10].
Tempus AI Stock Jumps Post Q2 as EBITDA Breakeven Nears: Buy or Hold?
ZACKS· 2025-08-13 20:02
Core Insights - Tempus AI's stock has increased nearly 13% since the release of its second-quarter 2025 earnings, driven by strong revenue growth and strategic positioning in a high-value market [1] - The company reported an 89.6% year-over-year revenue increase, primarily due to a significant rise in Genomics revenues and growth in its Data and Services segment [1][6] - Gross profit more than doubled, and adjusted EBITDA losses narrowed, indicating a clear path to profitability [2][6] Financial Performance - Revenues rose 89.6% year over year, surpassing the Zacks Consensus Estimate by 5.12%, with Genomics revenues surging by 115% and Data and Services increasing by 35.7% [6][9] - Adjusted operating expenses decreased by 57.8%, leading to a reduction in adjusted EBITDA losses to $5.6 million from $31.2 million a year ago [7][9] - The company has raised its full-year revenue guidance and strengthened liquidity through a $750 million convertible note offering [2][8] Market Position - In August, Tempus AI's shares surged 17.3%, outperforming the Medical Info Systems industry, which declined by 3% [3] - The stock is trading above its 50-day and 200-day moving averages, indicating upward momentum and price stability [10] - Despite strong performance, the stock is currently overvalued compared to its industry, with a forward price-to-sales ratio of 7.98, higher than the industry average of 5.57 [12] Future Outlook - Tempus AI is positioned to achieve sustainable profitability soon, supported by high-margin revenue growth and disciplined cost control [8][13] - Management has reaffirmed its $5 million adjusted EBITDA target for 2025, representing a $110 million improvement over 2024 [7] - The company's ability to maintain growth momentum and control costs will be crucial for its path to sustained profitability [13]
TEM Once Again Raises Its 2025 Sales Guidance: What's Driving the Move?
ZACKS· 2025-08-13 13:40
Core Insights - Tempus AI (TEM) has revised its 2025 sales guidance to approximately $1.26 billion, reflecting a nearly 82% annual growth, following a strong second-quarter performance [1][9] Financial Performance - The company reported second-quarter revenues of $314.6 million, representing an 89.6% increase year over year [2] - The Genomics business contributed $193.8 million to revenues, showing a 115.3% growth year over year, driven by a 26% increase in oncology volume [2] - Gross profit reached $195 million, up 158.3% from the previous year, with an adjusted gross margin expanding by 1649 basis points to 62% despite a 32.2% rise in the cost of revenues [3] - Adjusted EBITDA improved from a negative $16 million to a negative $5.6 million, with expectations of a positive adjusted EBITDA of $5 million in 2025 [3] Product Developments - Tempus AI has expanded its Tempus Next care pathway intelligence platform into breast cancer and introduced Tempus xM for treatment and response monitoring, enhancing AI-driven decision support in oncology [4] Competitor Performance - Exact Sciences Corporation (EXAS) reported a record 1.3 million test results, with revenue growth of 16% and an adjusted EBITDA of $138 million, prompting a raise in its 2025 revenue guidance to $3.13-$3.17 billion [5] - Guardant Health (GH) achieved a 31% year-over-year revenue increase to $232.2 million, leading to a revised 2025 revenue guidance of $915-$925 million [6] Stock Performance - Tempus AI shares have increased by 42.6% over the past year, outperforming the industry growth of 23.4% and the S&P 500's 18.3% improvement [7] Valuation Metrics - The current forward Price-to-Sales (P/S) ratio for TEM is 7.32X, compared to the industry average of 5.57X [10] Earnings Estimates - In the past 30 days, Tempus AI's projected loss per share has improved by 2.9% for 2025 and 12% for 2026 [11]
Tempus AI Stock: Is It A Buy Following Guidance Raise?
Seeking Alpha· 2025-08-12 11:45
Group 1 - Tempus AI, Inc. (NASDAQ: TEM) reported earnings and raised guidance but remains unprofitable [1] - The company is experiencing rapid growth, but there are execution risks involved [1] - The investment community is advised that Tempus AI may not be a must-own investment at this time [1] Group 2 - Cash Flow Club focuses on businesses with strong cash generation and significant durability [1] - The community offers access to a leader's personal income portfolio targeting yields of 6% or more [1] - Coverage includes sectors such as energy midstream, commercial mREITs, BDCs, and shipping [1]
TEMPUS FINAL DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Tempus Investors of the August 11th Deadline and Urges Investors to Contact the Firm
GlobeNewswire News Room· 2025-08-11 15:31
Core Viewpoint - A class action lawsuit has been filed against Tempus AI, Inc. for allegedly failing to disclose critical information regarding its financial practices and operations, leading to significant losses for investors [1][3][4]. Group 1: Allegations Against Tempus - The complaint alleges that Tempus inflated the value of contract agreements, many of which were with related parties and included non-binding opt-ins or were self-funded [3]. - Concerns were raised about the credibility of Tempus' joint venture with SoftBank, suggesting it appeared to involve "round-tripping" capital to create revenue [3]. - The business model of Tempus-acquired Ambry was criticized for potentially unethical billing practices, risking scrutiny and sustainability [3]. - AstraZeneca's reduced financial commitments to Tempus were questioned due to a "pass-through payment" arrangement, indicating operational weaknesses [3]. - The issues highlighted in the lawsuit suggest significant weaknesses in Tempus' core operations and revenue prospects [3]. Group 2: Impact of the Allegations - Following the release of a report by Spruce Point Capital Management that raised multiple concerns about Tempus' management and financial reporting, the company's stock price fell by $12.67, or 19.23%, from $65.87 to $53.20 per share [4][5]. - The report indicated that Tempus' actual AI capabilities were overstated and that there were signs of aggressive accounting practices [4]. - The involvement of board members and executives with troubled companies that had restated financial results was also noted as a red flag [4].
Tempus AI: Buy or Sell TEM Stock At $65?
Forbes· 2025-08-11 14:25
Core Viewpoint - Tempus AI stock has surged by 10% in the past week due to strong quarterly results and an optimistic sales forecast, predicting an 82% year-over-year sales increase to approximately $126 million, contributing to a nearly 80% year-to-date rise in shares [2][3] Group 1: Financial Performance - Tempus AI's revenues have shown significant growth, with quarterly revenues increasing by 89.6% to $315 million from $166 million year-over-year, compared to a 4.3% increase for the S&P 500 [7] - The company has experienced an average revenue growth rate of 53.6% over the past three years, significantly outpacing the S&P 500's 5.2% growth [7] - Operating income for Tempus AI over the last four quarters was -$235 million, resulting in an operating margin of -25%, while the S&P 500 had an operating margin of 18.4% [12] - The net income for the last four quarters was -$200 million, leading to a net income margin of -21%, compared to 12.3% for the S&P 500 [12] Group 2: Valuation Metrics - Tempus AI has a price-to-sales (P/S) ratio of 10.9, significantly higher than the S&P 500's ratio of 3.0, indicating a premium valuation [7] - Despite the high valuation multiple, the strong revenue growth justifies this premium, as seen in comparisons with other fast-growing companies [9] Group 3: Financial Stability - Tempus AI's balance sheet is robust, with a debt of $527 million against a market capitalization of $10 billion, resulting in a low debt-to-equity ratio of 5% compared to 24.1% for the S&P 500 [12] - Cash and cash equivalents amount to $291 million out of $1.6 billion in total assets, yielding a strong cash-to-assets ratio of 17.9%, compared to 6.7% for the S&P 500 [12] Group 4: Investment Consideration - Given the favorable momentum and strong operational performance, Tempus AI stock is considered a compelling investment at its current price of approximately $65 [3][9] - The company is expected to continue its growth trajectory, despite its current valuation being higher than the broader market [9]
INVESTOR DEADLINE TOMORROW: Robbins Geller Rudman & Dowd LLP Announces that Tempus AI, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit - TEM
Prnewswire· 2025-08-11 08:14
Core Viewpoint - The Tempus AI class action lawsuit alleges that the company and its executives made misleading statements and failed to disclose critical information regarding its financial practices and operations, leading to significant stock price declines [3][4]. Group 1: Allegations Against Tempus AI - The lawsuit claims that Tempus AI inflated the value of contract agreements, many of which were with related parties and included non-binding opt-ins or were self-funded [3]. - Concerns were raised about the credibility of Tempus AI's joint venture with SoftBank Group Corporation, suggesting it created an appearance of "round-tripping" capital to inflate revenue [3]. - The business model of Ambry Genetics Corporation, acquired by Tempus AI, is alleged to be based on aggressive and potentially unethical billing practices, risking scrutiny and sustainability [3]. - AstraZeneca PLC reportedly reduced its financial commitments to Tempus AI through a questionable "pass-through payment" arrangement, raising further concerns about the company's financial health [3]. - These issues collectively indicate weaknesses in Tempus AI's core operations and revenue prospects [3]. Group 2: Impact of Research Report - On May 28, 2025, a research report from Spruce Point Capital Management raised numerous red flags regarding Tempus AI's management, operations, and financial reporting, resulting in a stock price drop of over 19% [4]. Group 3: Class Action Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Tempus AI common stock during the specified Class Period to seek appointment as lead plaintiff in the class action lawsuit [5]. - The lead plaintiff is typically the investor with the greatest financial interest in the case and acts on behalf of all other class members [5]. - Investors can choose their own law firm to represent them in the lawsuit, and participation as lead plaintiff does not affect the ability to share in any potential recovery [5].
Why Tempus AI Stock Jumped Today
The Motley Fool· 2025-08-08 22:42
Core Insights - Tempus AI's second-quarter results exceeded Wall Street expectations, leading to increased investor confidence [2][5] - The company raised its full-year sales guidance following strong performance in Q2 [2][6] Financial Performance - Tempus AI reported an adjusted loss of $0.22 per share on revenue of $314.6 million for Q2, outperforming analyst estimates of a $0.25 loss on $297.8 million in sales [4] - Sales increased approximately 90% year over year, driven by strong growth in the genomics segment [5] Future Outlook - The company now expects full-year revenue to reach approximately $1.26 billion, indicating an annual sales growth of around 86% [6] - Tempus AI anticipates adjusted EBITDA of $5 million for the year, reflecting a $110 million improvement over the previous year's performance [7]
Compared to Estimates, Tempus (TEM) Q2 Earnings: A Look at Key Metrics
ZACKS· 2025-08-08 14:30
Core Insights - Tempus AI reported $314.64 million in revenue for the quarter ended June 2025, marking an 89.6% year-over-year increase [1] - The EPS for the same period was -$0.22, an improvement from -$0.63 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $299.32 million by 5.12% [1] - The company also delivered an EPS surprise of 4.35%, compared to the consensus estimate of -$0.23 [1] Financial Performance Metrics - Net Revenue from Data and Services was $72.79 million, slightly below the four-analyst average estimate of $73.93 million [4] - Net Revenue from Genomics reached $241.84 million, surpassing the four-analyst average estimate of $224.3 million [4] - Non-GAAP Gross Profit from Genomics was $143.76 million, exceeding the three-analyst average estimate of $129.5 million [4] - Non-GAAP Gross Profit from Data and Services was $53.76 million, slightly above the average estimate of $53.46 million based on three analysts [4] Stock Performance - Tempus shares have returned -1.4% over the past month, while the Zacks S&P 500 composite increased by 1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]