Core Insights - The article discusses the potential for investors to identify undervalued stocks that are mispriced by the market during Q4 [1] Group 1: Company Overview - Stone Fox Capital is an RIA based in Oklahoma, led by Mark Holder, a CPA with 30 years of investing experience, including 15 years as a portfolio manager [2] - The investing group "Out Fox The Street" provides stock picks and in-depth research aimed at uncovering potential multibaggers while managing portfolio risk through diversification [2] Group 2: Features and Offerings - The group offers various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direct communication with Mark for inquiries [2]

Core Insights - The article discusses the potential for undervalued stocks that are mispriced by the market during Q4, suggesting that investors may benefit from joining the investment group Out Fox The Street for insights and stock picks [1]. Group 1: Company Overview - Stone Fox Capital is identified as a Registered Investment Advisor (RIA) based in Oklahoma, led by Mark Holder, a CPA with extensive experience in investing and portfolio management [2]. - Mark Holder has 30 years of investing experience, including 15 years as a portfolio manager, and leads the investing group Out Fox The Street [2]. Group 2: Investment Strategy - The investment group offers various features such as model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat for direct interaction with Mark Holder [2].

Core Insights - Tempus AI is strengthening its position in the genomics sector with recent FDA clearances and new product launches [1][8] - The company is developing a companion diagnostic test in collaboration with Verastem Oncology, which is currently in clinical trials [3][8] - Tempus plans to introduce a whole-genome sequencing test next year, anticipating further growth due to regulatory advancements [4][8] Product Developments - In September 2025, Tempus received FDA 510(k) clearance for its xR IVD, a next-generation sequencing-based diagnostic device [1] - The company launched the xM assay for Treatment Response Monitoring, aimed at tracking tumor fraction changes in patients on immune-checkpoint inhibitor therapy [2] - Tempus is working on a companion diagnostic test with Verastem, leveraging its xT CDx assay in ongoing clinical trials [3] Market Position and Performance - Tempus AI shares have increased by 20% over the past year, outperforming the industry growth of 11.1% and the S&P 500's 17.5% [7] - The company is expected to benefit from the introduction of its Xh whole-genome sequencing test and ongoing reimbursement progress for MRD [4][8] Competitive Landscape - Exact Sciences launched its Cancerguard multi-cancer early detection test and is seeing strong uptake of its Oncotype DX genomic test [5] - Guardant Health expanded its Shield product for multi-cancer detection and received new companion diagnostic approvals [6] Valuation Metrics - Tempus AI currently trades at a forward Price-to-Sales ratio of 8.13, higher than the industry average of 5.81 [9] - The company's loss per share estimate for 2025 has improved by 3 cents over the past 60 days [10]

Core Insights - Tempus AI is participating in the 2025 Stifel Healthcare Conference, indicating its active engagement in the healthcare sector [1] Company Overview - Jim Rogers, the CFO of Tempus AI, is representing the company at the conference, highlighting the importance of leadership presence in investor relations [1]

Summary of Tempus AI Conference Call Company Overview - **Company**: Tempus AI - **Industry**: Life Sciences and Diagnostics Key Points AI Integration in Diagnostics and Biopharma - Tempus AI leverages AI across its operations, focusing on enhancing patient care through data and technology [4][5][6] - The company has developed platforms like Hub and Lens to facilitate interaction with diagnostic tests and build patient cohorts, respectively [4][5] - A partnership with AstraZeneca and Pathos aims to create a foundation model to extract insights from large datasets [6] Financial Performance - The third quarter reported a **28% organic growth**, with specific segments showing: - **Genomics**: High 20s growth - **Ambry**: 33% growth - **Data Licensing**: 37% growth [10][12] - Adjusted EBITDA turned positive, marking a significant milestone for the company [13] Oncology and Hereditary Testing - Oncology volumes grew by **27%**, while Ambry benefited from market disruptions in hereditary screening [12][42] - The hereditary testing market is expected to moderate as share gains stabilize [12] Data Licensing and Contracts - Total remaining contract value exceeded **$1 billion**, with a net revenue retention rate of **140%** [48] - New contracts included a **$66 million deal** with a biotech customer and expansions with existing clients [48] - The company anticipates strong engagement from both big pharma and biotech sectors [48] Market Position and Competition - Tempus AI has established connections with over **5,000 institutions**, enhancing its data collection and diagnostic capabilities [19] - The company emphasizes ease of use and connectivity as key differentiators against competitors [20] Reimbursement Trends - Average Selling Prices (ASPs) have increased to approximately **$1,600**, with expectations for **40%** of xT volumes to transition to ADLT pricing by year-end [22][23] - The company aims for **85%** of xT volumes to shift to ADLT pricing by the end of 2026 [23] Clinical Trials and CRO Business - The CRO segment has faced headwinds, but the acquisition of a small CRO aims to enhance clinical trial matching capabilities [61] - The company does not prioritize aggressive growth in the CRO sector but sees potential stabilization as funding for CROs improves [61] Investment and Growth Strategy - Tempus AI plans to reinvest about **two-thirds** of incremental gross profit back into the business over the next three years to support growth [64] - The company aims for long-term growth rates of **25-30%**, focusing on sustainable growth rather than maximizing quarterly revenue [58][64] Gross Margins and Future Outlook - Genomics business margins are expected to stabilize around **low 60%**, while data operations may achieve **mid 70%** margins [66] - AI applications, though currently a small revenue source, are anticipated to positively impact margins as they scale [68] Upcoming Developments - Data from a new ultra-high sensitivity assay for MRD is expected in **2026**, with further developments in breast cancer and immuno-oncology to follow in **2027** [38][39] Additional Insights - The company is cautious about the competitive landscape in MRD testing, focusing on leveraging existing data connections and insights to gain market share [34][35] - Tempus AI's strategy emphasizes long-term relationships with clients to ensure sustained growth and value delivery [58][59]

Group 1 - Tempus AI has been a focal point in discussions regarding AI trends, with its name potentially influencing investor perceptions [1] - Despite skepticism, Tempus AI has demonstrated effective execution in its operations [1]

Core Insights - Tempus AI has been a focal point in discussions surrounding AI trends, with its name potentially influencing investor perceptions negatively [1] Company Analysis - The presence of "AI" in Tempus AI's name may lead to skepticism among investors regarding the company's credibility and seriousness in the market [1] - Despite the challenges posed by its name, Tempus AI has demonstrated effective execution in its operations [1]

Core Insights - The medical field is highlighted as a promising area for the application of artificial intelligence, particularly for conditions that are currently untreatable [1] Group 1 - The focus on Tempus AI, Inc. (NASDAQ: TEM) indicates a specific interest in how AI can transform healthcare [1] - The article emphasizes the importance of excellence, integrity, transparency, and respect as core values for long-term success in investment [1]

Core Insights - Tempus AI Inc. reported third-quarter 2025 results with earnings and revenues exceeding consensus estimates [1] - The company achieved a narrower loss of $0.11 per share and an 84.7% year-over-year revenue increase to $252.9 million [2][10] - For the first time, Tempus reported positive adjusted EBITDA, marking a significant milestone [2] Financial Performance - Genomics revenues surged 117.2% year over year to $252.9 million, with Oncology testing generating $139.5 million (up 31.7%) and Hereditary testing contributing $102.6 million (up 32.8%) [6] - Data and Services revenues reached $81.3 million, a 26.1% increase year over year, driven by Insights bookings of $150 million, reflecting 37.6% growth [12] Competitive Landscape - Rivals such as 10x Genomics and Doximity also reported strong performances, with 10x Genomics posting a loss of $0.22 per share and revenues of $149 million, while Doximity achieved adjusted EPS of $0.45 and revenues of $168.5 million [3] Stock Performance - TEM stock increased by 35.7% during the third quarter, outperforming the broader industry gain of 6.7% and the S&P 500's 9.6% [4] - The stock is currently trading at a price-to-sales (P/S) ratio of 8.21X, above the industry average of 5.81X, indicating potential overvaluation [10][18] Future Outlook - Tempus plans to launch its first whole-genome sequencing test, Xh, next year, and is developing a companion diagnostic with Verastem Oncology [8][11] - The company expects 80% revenue growth in the fourth quarter of 2025 and a full-year growth of 81.8%, although earnings per share are projected to remain negative [15] Strategic Initiatives - Tempus received FDA 510(k) clearance for its xR IVD and launched xM for Treatment Response Monitoring, enhancing its product offerings [7] - The acquisition of Paige, an AI leader in digital pathology, strengthens Tempus' data and AI capabilities [13]

Group 1 - Tempus AI is an AI company focused on healthcare, boasting one of the largest clinical and genomic datasets in the US [1] - The company presents an exciting investment thesis due to its unique position in the healthcare AI market [1] Group 2 - The article does not provide specific financial metrics or performance data related to Tempus AI [2]