Financial Performance - Revenue for Q2 2025 increased by 896% year-over-year to $3146 million from $1660 million in Q2 2024[52, 55] - Genomics revenue reached $2418 million, a 1153% increase compared to Q2 2024[55] - Data and Services revenue totaled $728 million, growing 357% year-over-year, with Insights (data licensing) growing 407%[55] - Gross profit improved by 1583% year-over-year, reaching $1950 million in Q2 2025[52, 55] - Adjusted EBITDA improved by 821%, with a loss of $(56) million in Q2 2025 compared to $(312) million in Q2 2024[52, 55] Genomics Business - Oncology testing (Tempus Genomics) revenue was $1332 million, up 329% year-over-year, with approximately 26% volume growth[55] - Hereditary testing (Ambry Genetics) contributed $973 million of revenue, up 336% year-over-year on a pro forma basis, with approximately 32% volume growth[55] - Average reimbursement per hereditary test was $760 in Q2 2025[24] Data and AI - Total Remaining Contract Value for Data and Services was >$940 million at the end of 2024[39] - Data Licensing Retention was ~140% at the end of 2024[39] - Tempus has >350 petabytes of rich multimodal healthcare data[12, 37]

Part I – Financial Information [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Quarterly%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Tempus AI, Inc. as of **June 30, 2025**, show significant revenue growth and a narrowed net loss compared to the prior year. The balance sheet expanded considerably due to the Ambry Genetics acquisition, which increased assets, liabilities, and goodwill. Cash flow from operations remained negative, while financing activities were driven by new debt to fund the acquisition, and investing activities reflected the cash used for this purchase [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of **June 30, 2025**, the company's total assets increased to **$1.63 billion** from **$926.1 million** at year-end **2024**, primarily driven by a significant rise in goodwill and intangible assets from the Ambry acquisition. Total liabilities also grew to **$1.32 billion** from **$869.8 million**, largely due to increased long-term debt and a new revolving credit facility used to finance the acquisition. Consequently, total stockholders' equity increased to **$309.6 million** from **$56.3 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $186,310 | $340,954 | | Total current assets | $644,201 | $667,603 | | Goodwill | $325,793 | $73,343 | | Intangible assets, net | $387,564 | $11,716 | | **Total Assets** | **$1,625,365** | **$926,116** | | Total current liabilities | $418,160 | $291,070 | | Long-term debt, net | $471,663 | $267,244 | | Revolving credit facility | $100,000 | $— | | **Total Liabilities** | **$1,315,803** | **$869,777** | | **Total Stockholders' equity** | **$309,562** | **$56,339** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the second quarter of **2025**, Tempus AI reported a **90% year-over-year increase** in total net revenue to **$314.6 million**. The net loss significantly narrowed to **$42.8 million** from **$552.2 million** in **Q2 2024**, primarily because the prior-year period included a substantial one-time stock-based compensation expense related to the IPO. For the six-month period, revenue grew **83%** to **$570.4 million**, and the net loss was reduced to **$110.9 million** from **$617.0 million** Q2 Financial Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Net Revenue | $314,635 | $165,969 | 90% | | - Genomics | $241,843 | $112,324 | 115% | | - Data and services | $72,792 | $53,645 | 36% | | Loss from Operations | $(61,774) | $(533,492) | 88% | | Net Loss | $(42,843) | $(552,212) | 92% | | Net Loss Per Share | $(0.25) | $(6.86) | 96% | H1 Financial Performance (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Net Revenue | $570,372 | $311,789 | 83% | | - Genomics | $435,647 | $214,893 | 103% | | - Data and services | $134,725 | $96,896 | 39% | | Loss from Operations | $(130,463) | $(586,766) | 78% | | Net Loss | $(110,880) | $(616,955) | 82% | | Net Loss Per Share | $(0.64) | $(9.02) | 93% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended **June 30, 2025**, net cash used in operating activities was **$61.5 million**, a significant improvement from the **$198.5 million** used in the same period of **2024**. Net cash used in investing activities was **$385.3 million**, primarily for business acquisitions, a sharp contrast to the **$9.0 million** provided by investing activities in the prior year. Net cash provided by financing activities was **$293.0 million**, sourced from new debt facilities, compared to **$502.6 million** in **2024** which was driven by the IPO Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(61,460) | $(198,458) | | Net cash (used in) provided by investing activities | $(385,329) | $8,982 | | Net cash provided by financing activities | $293,042 | $502,631 | | **Net (decrease) increase in Cash** | **$(153,784)** | **$313,065** | - The primary use of cash in investing activities for **H1 2025** was **$380.8 million** for business combinations, net of cash acquired[17](index=17&type=chunk) - Financing activities in **H1 2025** were driven by proceeds from a new revolving credit facility (**$98.0 million**) and long-term debt (**$196.0 million**) to fund acquisitions[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies and events during the period. Key highlights include the revenue breakdown showing strong growth in both Genomics and Data services, the major acquisition of Ambry Genetics for approximately **$695 million**, the establishment of a joint venture in Japan with SoftBank, and details on the company's substantial debt facilities. The notes also cover subsequent events, including a **$750 million** convertible note offering and an agreement to sell up to **$500 million** in stock through an ATM facility - The company operates as a single operating and reportable segment, with the CEO acting as the chief operating decision maker (CODM)[30](index=30&type=chunk) - The company expects to become a 'large accelerated filer' and no longer qualify as an 'emerging growth company' as of **December 31, 2025**[42](index=42&type=chunk) - On **February 3, 2025**, the company completed its acquisition of Ambry Genetics for consideration of **$375.0 million** in cash and **4.84 million shares** of Class A common stock. Ambry contributed **$97.3 million** in revenue for **Q2 2025**[67](index=67&type=chunk)[68](index=68&type=chunk)[76](index=76&type=chunk) - In **May 2024**, the company formed a 50/50 joint venture, SB Tempus, with SoftBank in Japan, with each party contributing **¥15 billion ($95.2 million)**[93](index=93&type=chunk) - Subsequent to the quarter end, in **July 2025**, the company completed a **$750.0 million** convertible senior notes offering and entered into an 'At the Market' (ATM) sales agreement to offer and sell up to **$500.0 million** of Class A common stock[168](index=168&type=chunk)[177](index=177&type=chunk) - The company reincorporated from a Delaware corporation to a Nevada corporation, effective **August 7, 2025**[29](index=29&type=chunk)[341](index=341&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **90% YoY revenue growth** in **Q2 2025** to increased test volumes in Genomics, driven by both organic growth and the Ambry acquisition, and higher demand for data products. The significant reduction in net loss was primarily due to a large, one-time stock-based compensation expense in **Q2 2024** post-IPO. The company's liquidity was bolstered by new debt to fund the Ambry acquisition and a subsequent **$750 million** convertible note offering in **July 2025**, which management believes provides sufficient capital for over twelve months [Overview](index=48&type=section&id=Overview) Tempus positions itself as a technology company applying AI to healthcare to create 'Intelligent Diagnostics'. Its platform integrates data to support physicians and researchers across three product lines: Genomics, Data, and AI Applications. Recent strategic developments include the acquisition of Ambry Genetics to expand hereditary testing capabilities and major multi-year data and service collaborations with pharmaceutical companies like AstraZeneca, GSK, and Recursion - The company's core strategy is to create 'Intelligent Diagnostics' by applying AI to make laboratory tests more accurate and personal, leveraging its platform that integrates clinical, molecular, and imaging data[187](index=187&type=chunk) - The acquisition of Ambry Genetics expands the company's testing capabilities into new disease categories such as pediatrics, rare disease, immunology, and cardiology[69](index=69&type=chunk)[193](index=193&type=chunk) - The company has established several multi-year strategic collaborations, including a **$220 million** commitment from AstraZeneca, a **$180 million** commitment from GSK, and a **$160 million** agreement with Recursion[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) [Results of Operations](index=59&type=section&id=Results%20of%20Operations) In **Q2 2025**, total revenue increased **90%** YoY to **$314.6 million**. Genomics revenue grew **115%**, driven by a **26%** increase in Oncology test volume and the addition of **$97.3 million** from the newly acquired Ambry. Data and services revenue rose **36%** due to higher demand for Insights products. Total operating expenses decreased **61%** to **$376.4 million**, primarily because **Q2 2024** included **$488.3 million** in stock-based compensation from IPO-related RSU vesting. Excluding this, underlying operating costs increased due to the Ambry acquisition and business growth Revenue Comparison - Q2 2025 vs Q2 2024 (in thousands) | Revenue Line | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Genomics | $241,843 | $112,324 | $129,519 | 115% | | Data and services | $72,792 | $53,645 | $19,147 | 36% | | **Total Net Revenue** | **$314,635** | **$165,969** | **$148,666** | **90%** | - The increase in Genomics revenue was driven by a rise in Oncology test volume from **~66,500** to **~84,000** and the addition of **~128,000 Hereditary tests** from the Ambry acquisition, which contributed **$97.3 million**[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) - The decrease in operating expenses was primarily due to a **$465.7 million** YoY reduction in stock-based compensation expense. **Q2 2024** included a large expense related to RSU vesting upon the company's IPO[232](index=232&type=chunk)[235](index=235&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) - Other income (net) was **$41.7 million** in **Q2 2025**, compared to an expense of **$(7.0) million** in **Q2 2024**, primarily driven by a **$41.5 million** increase in income from unrealized gains on marketable equity securities[241](index=241&type=chunk) [Non-GAAP Financial Measure](index=68&type=section&id=Non-GAAP%20Financial%20Measure) The company uses Adjusted EBITDA as a non-GAAP measure to assess operating performance. For **Q2 2025**, the Adjusted EBITDA loss was **$5.6 million**, a significant improvement from the **$31.2 million** loss in **Q2 2024**. For the first six months of **2025**, the Adjusted EBITDA loss was **$21.8 million**, compared to a **$75.1 million** loss in the prior-year period. The improvement reflects revenue growth and operating leverage Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Net loss | $(42,843) | $(552,212) | $(110,880) | $(616,955) | | Adjustments... | ... | ... | ... | ... | | **Adjusted EBITDA** | **$(5,580)** | **$(31,186)** | **$(21,754)** | **$(75,112)** | [Liquidity and Capital Resources](index=69&type=section&id=Liquidity%20and%20Capital%20Resources) As of **June 30, 2025**, Tempus had **$188.1 million** in cash, cash equivalents, and restricted cash. The company has a history of operating losses but has funded operations through equity and debt financing. Subsequent to the quarter, the company raised approximately **$725.9 million** in net proceeds from a convertible senior notes offering in **July 2025**. Management believes current cash, securities, and anticipated cash flows are sufficient to fund operations for more than twelve months - The company had an accumulated deficit of **$2.3 billion** as of **June 30, 2025**[267](index=267&type=chunk) - In **July 2025**, the company completed a private offering of **$750.0 million** in **0.75%** Convertible Senior Notes due **2030**, with net proceeds of approximately **$725.9 million**[191](index=191&type=chunk)[269](index=269&type=chunk) - A portion of the note proceeds was used to repay **$293.5 million** of existing term loans and to pay **$41.8 million** for capped call transactions to reduce potential dilution[192](index=192&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk) - The company believes its current cash, marketable securities, and anticipated cash flows will be sufficient to meet requirements for more than twelve months from the report's filing date[269](index=269&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposures relate to interest rates, foreign currency, and inflation. Interest rate risk stems from its variable-rate debt facilities. Foreign currency risk is currently insignificant but is expected to grow with international expansion. Inflation risk could adversely affect margins and operating costs, though its impact to date has not been material - The company is exposed to interest rate risk on its **$579.6 million** outstanding debt under its Term Loan and Revolving Credit Facilities[307](index=307&type=chunk) - Foreign currency risk is currently not material as the majority of revenue is generated in the U.S., but this may change with international growth[308](index=308&type=chunk) - Inflation is a potential risk that could impair operating results by increasing raw material and overhead costs[310](index=310&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of **June 30, 2025**. There were no material changes to the company's internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of **June 30, 2025**[311](index=311&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[312](index=312&type=chunk) Part II – Other Information [Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal matters, including ongoing patent infringement litigation with Guardant Health Inc. filed in **June 2024**. Additionally, a federal securities class-action lawsuit was filed against the company and its officers in **June 2025**. The company has also received and responded to government inquiries, including a Civil Investigative Demand from the U.S. Attorney's Office for the Eastern District of New York related to compliance with healthcare laws - The company is engaged in patent litigation with Guardant Health Inc., with complaints and counterclaims filed by both parties regarding alleged infringement and false advertising[320](index=320&type=chunk) - A federal securities class-action lawsuit was filed in **June 2025**, alleging false or misleading statements between **August 2024 and May 2025**. The company believes the complaint is without merit[321](index=321&type=chunk) - The company received a Civil Investigative Demand (CID) from the U.S. Attorney's Office in **March 2024** related to compliance with the False Claims Act and Anti-Kickback statute, and has been producing documents in response[318](index=318&type=chunk) [Risk Factors](index=83&type=section&id=Item%201A.%20Risk%20Factors) The company highlights new risks associated with its **July 2025** issuance of **$750.0 million** in convertible senior notes. These risks include potential adverse effects on financial condition if the conditional conversion feature is triggered, dilution to stockholders upon conversion, and counterparty risk related to the associated capped call transactions designed to limit dilution - New risks have emerged related to the **July 2025** issuance of **$750.0 million** in **0.75%** Convertible Senior Notes due **2030**[325](index=325&type=chunk) - Risks associated with the notes include potential dilution to stockholders, downward pressure on the stock price, and the requirement to pay cash upon conversion, which could affect liquidity[326](index=326&type=chunk)[328](index=328&type=chunk) - The company is subject to counterparty credit risk with the financial institutions involved in the associated capped call transactions, which could lead to greater than anticipated dilution if a counterparty defaults[331](index=331&type=chunk)[332](index=332&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=85&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the quarter. The company details the use of proceeds from its Initial Public Offering (IPO) in **June 2024**, which generated net proceeds of **$382.0 million**. A portion of these funds was used to satisfy tax withholding obligations for RSU settlements and for general working capital - The company completed its IPO on **June 17, 2024**, selling **11,100,000 shares** of Class A common stock at **$37.00 per share**, resulting in net proceeds of **$382.0 million**[335](index=335&type=chunk) - A portion of the IPO proceeds was used to satisfy tax withholding and remittance obligations related to the net settlement of employee RSUs[336](index=336&type=chunk) [Other Information](index=88&type=section&id=Item%205.%20Other%20Information) This section discloses several significant corporate actions that occurred after the quarter ended. On **August 7, 2025**, the company reincorporated from Delaware to Nevada. On **August 8, 2025**, it entered into an 'At the Market' (ATM) sales agreement to offer and sell up to **$500 million** of its Class A common stock. Additionally, on **August 7, 2025**, the Compensation Committee granted performance-based restricted stock units (PSUs) to its named executive officers - On **August 7, 2025**, the company changed its state of incorporation from Delaware to Nevada[341](index=341&type=chunk) - On **August 8, 2025**, the company entered into a Controlled Equity Offering (ATM) Sales Agreement, allowing it to sell up to **$500.0 million** of Class A Common Stock from time to time[345](index=345&type=chunk) - On **August 7, 2025**, the Compensation Committee granted **2,569,600 Performance-Based Restricted Stock Units (PSUs)** to executive officers, vesting based on revenue growth and total shareholder return performance goals over three overlapping periods[178](index=178&type=chunk)[352](index=352&type=chunk)[353](index=353&type=chunk)

[Tempus Second Quarter 2025 Earnings Release](index=1&type=section&id=Tempus%20Reports%20Second%20Quarter%202025%20Results) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%20Summary%20Results) Tempus reported strong Q2 2025 performance with 89.6% revenue growth, a 30% increase in clinical volumes, and significantly narrowed net and Adjusted EBITDA losses - CEO Eric Lefkofsky highlighted that revenues and margins are growing faster than expected, with a significant re-acceleration of clinical volumes, which grew **30% in the quarter**, delivering over **212,000 NGS tests**[3](index=3&type=chunk) - **Genomics revenue grew 115.3% YoY** to $241.8 million, while **Data and services revenue increased 35.7% YoY** to $72.8 million[6](index=6&type=chunk)[7](index=7&type=chunk) Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $314.6M | $166.0M | +89.6% | | **Gross Profit** | $195.0M | $75.5M | +158.3% | | **Net Loss** | ($42.8M) | ($552.2M) | NM | | **Adjusted EBITDA** | ($5.6M) | ($31.2M) | +82.1% | | **Net Loss per Share** | ($0.25) | ($6.86) | +96.4% | | **Non-GAAP Net Loss per Share** | ($0.22) | ($0.63) | +65.1% | [Operational Highlights](index=1&type=section&id=Second%20Quarter%20and%20Recent%20Operational%20Highlights) Tempus strengthened its finances via a notes offering, expanded its AI clinical tools, advanced its monitoring capabilities, and grew its data assets - Completed an upsized offering of **$750 million 0.75% convertible senior notes** to enhance the balance sheet and reduce interest expenses[5](index=5&type=chunk)[6](index=6&type=chunk) - Expanded AI-powered clinical tools: **Tempus Next™ care pathway intelligence platform was extended into breast cancer**, and the **Tempus One™ generative AI assistant was integrated into leading EHR systems**[11](index=11&type=chunk) - Advanced monitoring capabilities by introducing **Tempus xM™**, a liquid biopsy assay for monitoring immunotherapy response, and expanded its collaboration with Personalis to include colorectal cancer for MRD testing[11](index=11&type=chunk) - Reached a new database milestone, now connected to over **40 million clinical patient records** and holding over **350 petabytes of connected clinical and molecular data**[11](index=11&type=chunk) [Financial Outlook and Guidance](index=3&type=section&id=Financial%20Outlook%20and%20Guidance) Tempus raised its full-year 2025 guidance, anticipating approximately $1.26 billion in revenue and positive Adjusted EBITDA of $5 million Full Year 2025 Guidance | Metric | Full Year 2025 Guidance | | :--- | :--- | | **Revenue** | ~$1.26 billion (~82% YoY growth) | | **Adjusted EBITDA** | $5 million (~$110M improvement vs. 2024) | [Consolidated Financial Statements](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) This section provides the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2025, and 2024 [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) For Q2 2025, total net revenue increased significantly while the loss from operations and net loss per share both narrowed sharply YoY Statement of Operations Summary (Q2 2025 vs Q2 2024, in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total net revenue** | $314,635 | $165,969 | | Genomics Revenue | $241,843 | $112,324 | | Data and services Revenue | $72,792 | $53,645 | | **Loss from operations** | $(61,774) | $(533,492) | | **Net Loss** | $(42,843) | $(552,212) | | **Net loss per share** | $(0.25) | $(6.86) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets, liabilities, and stockholders' equity all increased substantially compared to year-end 2024 Balance Sheet Summary (in thousands) | Category | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $644,201 | $667,603 | | Cash and cash equivalents | $186,310 | $340,954 | | **Total Assets** | **$1,625,365** | **$926,116** | | **Total Current Liabilities** | $418,160 | $291,070 | | **Total Liabilities** | **$1,315,803** | **$869,777** | | **Total Stockholders' equity** | **$309,562** | **$56,339** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the first six months of 2025, net cash used in operating activities improved significantly, while investing activities increased cash use Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(61,460) | $(198,458) | | **Net cash (used in) provided by investing activities** | $(385,329) | $8,982 | | **Net cash provided by financing activities** | $293,042 | $502,631 | | **Net (decrease) increase in Cash** | $(153,784) | $313,065 | | **Cash, cash equivalents and restricted cash, end of period** | $188,051 | $479,672 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=11&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) This section details adjustments from GAAP to non-GAAP metrics, showing significant underlying performance improvement in key areas [Gross Profit & Gross Margin Reconciliation](index=11&type=section&id=Total%20Gross%20Profit%20%26%20Gross%20Margin) Non-GAAP gross profit and margin improved significantly year-over-year, driven by expansion in both Genomics and Data and Services segments Total Non-GAAP Gross Profit & Margin (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Gross Profit (GAAP)** | $195.0M | $75.5M | | **Non-GAAP Gross Profit** | $197.5M | $94.3M | | **Gross Margin (GAAP)** | 62.0% | 45.5% | | **Non-GAAP Gross Margin** | 62.8% | 56.8% | [Earnings per Share Reconciliation](index=12&type=section&id=Earnings%20per%20Share) After adjustments, the Non-GAAP net loss and net loss per share both showed marked improvement compared to the prior-year quarter Non-GAAP Net Loss per Share (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Loss (GAAP)** | ($42.8M) | ($552.2M) | | **Non-GAAP Net Loss** | ($37.3M) | ($51.9M) | | **Non-GAAP Net Loss per Share** | ($0.22) | ($0.63) | [Adjusted EBITDA Reconciliation](index=13&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA improved by $25.6 million year-over-year, reflecting a substantially narrowed loss after key non-cash adjustments Adjusted EBITDA Reconciliation (Q2 2025 vs Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net loss** | $(42,843) | $(552,212) | | EBITDA | $5,887 | $(531,381) | | Stock-based compensation expense | $22,455 | $488,313 | | Fair value changes | $(37,546) | $4,870 | | **Adjusted EBITDA** | **$(5,580)** | **$(31,186)** | [Other Information](index=3&type=section&id=Other%20Information) This section provides supplementary details on conference calls, non-GAAP definitions, and forward-looking statements - Tempus defines and uses several **non-GAAP financial measures**, such as Non-GAAP gross profit, Non-GAAP operating expenses, and Adjusted EBITDA, to provide additional information on its financial and operational performance[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - The report includes **forward-looking statements** regarding expected financial results and the benefits of its convertible notes, which are subject to risks and uncertainties[22](index=22&type=chunk)[23](index=23&type=chunk) - A conference call and webcast to discuss the results were scheduled for **August 8, 2025**[10](index=10&type=chunk)

Core Viewpoint - Tempus AI, Inc. is facing a class action lawsuit due to allegations of misleading statements and undisclosed material information during the Class Period from August 6, 2024, to May 27, 2025 [1][3]. Company Overview - Tempus AI is a technology company focused on advancing precision medicine through artificial intelligence, including generative AI [2]. Allegations of the Lawsuit - The lawsuit claims that Tempus AI inflated the value of certain contract agreements, many involving related parties, which included non-binding opt-ins or were self-funded [3]. - It is alleged that the company's joint venture with SoftBank Group Corporation risked credibility due to the appearance of "round-tripping" capital to artificially inflate revenue [3]. - The acquisition of Ambry Genetics Corporation is said to have operated under a business model reliant on aggressive and potentially unethical billing practices, exposing it to regulatory and financial risk [3]. - AstraZeneca PLC reportedly reduced its financial support to Tempus AI through a questionable "pass-through payment" structure involving a joint agreement with Pathos AI, Inc. [3]. - These issues are indicative of broader weaknesses in Tempus AI's core operations and long-term revenue outlook [3]. Impact on Stock Price - Following the publication of a research report by Spruce Point Capital Management, LLC on May 28, 2025, which raised serious concerns regarding Tempus AI's management and financial disclosures, the company's stock price fell by over 19% [4].

SAN DIEGO , Aug. 6, 2025 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of Tempus AI, Inc. (NASDAQ: TEM) common stock between August 6, 2024 and May 27, 2025, all dates inclusive (the "Class Period"), have until Tuesday, August 12, 2025 to seek appointment as lead plaintiff of the Tempus AI class action lawsuit.  Captioned Shouse v. Tempus AI, Inc., No. 25-cv-06534 (N.D. Ill.), the Tempus AI class action lawsuit charges Tempus AI as well as certain of Tempus AI's ...

Core Insights - Tempus AI has experienced significant stock price fluctuations since its IPO in June 2024, with a notable initial drop followed by substantial gains [4][5]. - The company has shown a 56% increase in stock value for early investors and a 51% increase for those who invested one year ago [6]. Company Performance - Tempus AI shares debuted at $40 but fell 29% in the first week of trading [4]. - The stock reached a peak closing price of $89.44 on February 14, 2025, marking a 124% increase from its opening price [5]. - As of now, an investment of $1,000 made one year ago is valued at $1,510 [6]. Market Context - The enthusiasm for artificial intelligence has positively impacted many stocks, including Tempus AI, although it took time for investors to show interest post-IPO [2]. - Traditional valuation metrics are not applicable due to the company's unprofitability, but a price-to-sales ratio of approximately 10 is considered reasonable given its market potential [7].

Core Viewpoint - The Tempus AI class action lawsuit alleges that the company and its executives made misleading statements and failed to disclose critical information that inflated the company's stock value during the specified class period [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]. - It is alleged that the credibility of Tempus AI's joint venture with SoftBank Group Corporation was compromised, giving the appearance of "round-tripping" capital to create revenue [3]. - The business model of Ambry Genetics Corporation, acquired by Tempus AI, is said 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 [3]. - These issues collectively indicate weaknesses in Tempus AI's core operations and revenue prospects [3]. Group 2: Impact of Allegations - Following a research report from Spruce Point Capital Management on May 28, 2025, which raised concerns about Tempus AI's management and financial reporting, the company's stock price fell by more than 19% [4]. Group 3: Class Action Process - Investors who purchased Tempus AI common stock during the class period can seek appointment as lead plaintiff in the class action lawsuit, representing the interests of all class members [5]. - The lead plaintiff can select a law firm of their choice to litigate the case, and their ability to share in any potential recovery is not contingent upon serving as lead plaintiff [5]. Group 4: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [6]. - The firm has been ranked 1 in securing monetary relief for investors in securities class action cases for four out of the last five years [6].

Core Viewpoint - A class action lawsuit has been filed against Tempus AI, Inc. for allegedly misleading investors regarding its financial practices and operations, leading to significant stock price decline [1][4]. 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 [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 is criticized for aggressive and potentially unethical billing practices, risking scrutiny and sustainability [3]. - AstraZeneca reportedly reduced its financial commitments to Tempus through a questionable "pass-through payment" arrangement [3]. - The issues highlighted indicate weaknesses in Tempus' core operations and revenue prospects [3]. Group 2: Impact of Reports - On May 28, 2025, Spruce Point Capital Management issued a report raising multiple concerns about Tempus' management, operations, and financial reporting [4]. - The report pointed out that Tempus' actual AI capabilities may be overstated and that executives have ties to companies that have restated financial results [4]. - It also noted signs of aggressive accounting practices and issues with the AstraZeneca and Pathos AI deal that warrant further scrutiny [4]. - Following the release of this report, Tempus' stock price fell by $12.67 per share, or 19.23%, from $65.87 to $53.20 [5].

Core Viewpoint - Tempus AI, Inc. is facing a class action lawsuit due to allegations of misleading statements and undisclosed material information during the Class Period from August 6, 2024, to May 27, 2025 [1][3]. Group 1: Allegations Against Tempus AI - The lawsuit claims that Tempus AI inflated the value of certain contract agreements, many of which involved related parties and included non-binding opt-ins or were self-funded [3]. - It is alleged that the joint venture with SoftBank Group Corporation risked credibility due to the appearance of "round-tripping" capital to artificially inflate revenue [3]. - The acquisition of Ambry Genetics Corporation is said to have operated under a business model reliant on aggressive and potentially unethical billing practices, exposing it to regulatory and financial risks [3]. - AstraZeneca PLC reportedly reduced its financial support to Tempus AI through a questionable "pass-through payment" structure involving a joint agreement with Pathos AI, Inc. [3]. - These issues are indicative of broader weaknesses in Tempus AI's core operations and long-term revenue outlook [3]. Group 2: Impact of Research Report - On May 28, 2025, Spruce Point Capital Management, LLC published a research report that raised serious concerns regarding Tempus AI's management, operations, and financial disclosures [4]. - Following the release of this report, Tempus AI's stock price fell by over 19% [4].

Company Overview - Tempus AI has expanded its AI-enabled care pathway intelligence platform, Tempus Next, into breast cancer to address critical care gaps, initially designed for lung cancer [1][7] - The platform now focuses on five different biomarker testing gaps specific to breast cancer, aiming to help physicians deliver guideline-directed medical care [1][3] Market Insights - Breast cancer is one of the fastest-growing oncology segments globally, with a projected market value of $89.91 billion by 2034, growing at a CAGR of 9.9% from 2025 to 2034 [2] - The breast cancer diagnostics subsegment is expected to reach $8.47 billion by 2030, with a CAGR of 7.6% from 2025 to 2030 [2] Competitive Landscape - Hologic has expanded its Breast Health portfolio to cover the full breast cancer care continuum, including biopsy and surgery, and has started selling Endomag products in North America [4] - GE HealthCare launched the Invenia Automated Breast Ultrasound Premium, designed to improve early cancer detection through enhanced automation and AI [5] Financial Performance - Tempus AI shares have surged 70.8% year to date, outperforming the industry's 20% growth and the S&P 500 composite's 5.7% improvement [6] - The company currently trades at a forward 12-month Price-to-Sales (P/S) ratio of 6.96X, compared to the industry average of 5.91X [8] Earnings Estimates - In the past 30 days, Tempus AI's projected loss per share has improved by 2.8% for 2025 and 12% for 2026 [10]