Tempus Ai,Inc.(TEM) - 2025 Q2 - Quarterly Results

Tempus Second Quarter 2025 Earnings Release Second Quarter 2025 Highlights 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] - Genomics revenue grew 115.3% YoY to $241.8 million, while Data and services revenue increased 35.7% YoY to $72.8 million[6][7] 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 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][6] - 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] - 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] - 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] Financial Outlook and Guidance 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 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 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 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 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 This section details adjustments from GAAP to non-GAAP metrics, showing significant underlying performance improvement in key areas Gross Profit & Gross Margin Reconciliation 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 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 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 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][15][16] - 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][23] - A conference call and webcast to discuss the results were scheduled for August 8, 2025[10]