Tempus AI Posts 83% Revenue Growth Yet Stumbles on Full Year Profitability Target

Core Insights - Tempus AI reported a significant revenue growth of 83% year-over-year in Q4, reaching $367 million, but faced challenges in achieving its full-year profitability target for 2025 [1] - The company guided for an adjusted EBITDA of approximately $65 million for 2026, indicating a shift towards profitability, despite finishing 2025 with a negative adjusted EBITDA of $7.4 million [1] - Diagnostics revenue surged by 121% to $266 million, while data and applications revenue increased by 25% to $100 million [1] Revenue Performance - Q4 revenue was $367 million, reflecting an 83% increase compared to the previous year [1] - The diagnostics segment experienced a 121% growth, contributing $266 million to the total revenue [1] - Data and applications revenue grew by 25%, amounting to $100 million [1] Profitability Outlook - The adjusted EBITDA guidance for 2026 is set at approximately $65 million, suggesting a positive trajectory towards profitability [1] - The adjusted EBITDA for Q4 was reported at $12.9 million, a significant increase from $1.5 million in Q3 [1] - The full-year adjusted EBITDA for 2025 was negative at $7.4 million, which was below previous management expectations [1] Market Reaction - Following the earnings report, Tempus AI shares fell by 5% to $57.95, indicating investor caution despite the strong revenue growth [1] - CEO Eric Lefkofsky expressed confidence in the company's position and growth potential, highlighting the acceleration in both main business segments [1] - Analysts, including BTIG, maintained a Buy rating, reflecting ongoing confidence in the company's long-term growth despite short-term adjustments [1]