Tempus Ai,Inc.(TEM) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue grew 84.7% year-over-year to $334.2 million in Q3 2025[5] - Gross profit reached $209.9 million in Q3 2025, an improvement of 98.4% year-over-year[5] - Adjusted EBITDA of $1.5 million in Q3 2025 compared to a loss of $21.8 million in Q3 2024, an improvement of $23.3 million year-over-year[5] - Total net revenue for Q3 2025 reached $334.2 million, a 84.5% increase from $180.9 million in Q3 2024[23] - Genomics revenue was $252.9 million for Q3 2025, compared to $116.4 million in Q3 2024, representing a 116.7% year-over-year growth[23] - The company reported a net loss of $80.0 million for Q3 2025, slightly higher than the net loss of $75.8 million in Q3 2024[23] - The company reported a comprehensive loss of $82.9 million for Q3 2025, compared to a comprehensive loss of $65.5 million in Q3 2024[23] - Non-GAAP net loss per share for Q3 2025 was $0.11, an improvement from $0.24 in Q3 2024[39] - Total net loss for the nine months ended September 30, 2025, was $190,862, a decrease from $692,795 in the same period of 2024[39] Revenue Segmentation - Oncology testing contributed $139.5 million, up 31.7% year-over-year, with approximately 27% volume growth[5] - Hereditary testing contributed $102.6 million, an increase of 32.8% year-over-year, with approximately 37% volume growth[5] - Genomics revenue for the nine months ended September 30, 2025, reached $688.5 million, a 107.5% increase from $331.3 million in 2024[35] - Data and services revenue for the nine months ended September 30, 2025, was $216.1 million, up 33.9% from $161.4 million in 2024[36] - Total net revenue for the nine months ended September 30, 2025, was $904.6 million, compared to $492.7 million in 2024, reflecting an increase of 83.6%[37] Expenses and Liabilities - Total operating expenses for Q3 2025 were $395.2 million, up from $234.5 million in Q3 2024, marking a 68.4% increase[23] - Operating expenses for the nine months ended September 30, 2025, totaled $751.6 million, down from $899.4 million in 2024, indicating a reduction of 16.4%[38] - Total liabilities increased to $1.77 billion as of September 30, 2025, compared to $869.8 million at December 31, 2024[25] - The company incurred $12.0 million in loss on debt extinguishment during the nine months ended September 30, 2025[23] Cash and Assets - The company ended the quarter with $764.3 million of cash and marketable securities[5] - Cash and cash equivalents increased to $655.9 million as of September 30, 2025, compared to $341.0 million at December 31, 2024[25] - Total assets grew to $2.28 billion as of September 30, 2025, up from $926.1 million at December 31, 2024[25] - Cash, cash equivalents, and restricted cash at the end of the period were $660.5 million, up from $388.9 million at the beginning of the period, marking an increase of 70%[32] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $887.7 million, compared to $494.5 million in 2024, an increase of 79.6%[32] Investments and Acquisitions - Acquired Paige, an AI company specializing in digital pathology, to expand dataset and technical team[5] - The company invested $375.0 million in business combinations during the nine months ended September 30, 2025[32] Regulatory and Program Participation - Selected by ARPA-H to provide testing and CRO services for the ADAPT program[5] - Obtained 510(k) clearance from the U.S. FDA for xR IVD, supporting life sciences' drug development programs[5] Stock and Shareholder Information - Stock-based compensation expenses for the nine months ended September 30, 2025, were $79.4 million, down from $509.4 million in the same period of 2024[29] - Stock-based compensation expense increased to $33,979 in Q3 2025 from $21,038 in Q3 2024, reflecting a rise of 61.5%[41] - Weighted average common shares outstanding increased to 174,945 in Q3 2025 from 165,612 in Q3 2024[39] Other Financial Metrics - Non-GAAP gross margin for the nine months ended September 30, 2025, improved to 62.7%, compared to 56.8% in 2024[37] - The company incurred $37.3 million in cash paid for interest during the nine months ended September 30, 2025, compared to $20.9 million in 2024[32] - Fair value changes resulted in a gain of $1,255 in Q3 2025, compared to a gain of $15,605 in Q3 2024[41] - Loss from operations for Q3 2025 was $60,996, compared to $53,616 in Q3 2024, indicating a decline of 13.5% year-over-year[43] - Acquisition-related expenses for Q3 2025 amounted to $552, while there were no such expenses in Q3 2024[40] - Amortization of intangibles due to acquisition was $16,764 in Q3 2025, with no corresponding expense in Q3 2024[43]