AI - Driven Precision Medicine
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Tempus AI, Inc. (NASDAQ:TEM) Earnings Overview: A Deep Dive into AI-Driven Precision Medicine
Financial Modeling Prep· 2026-02-25 03:04
Core Insights - Tempus AI, Inc. is a leader in AI-driven precision medicine, focusing on enhancing diagnostic and therapeutic solutions in oncology [1] Financial Performance - For Q4 2026, Tempus reported an earnings per share (EPS) of -$0.31, below the estimated EPS of -$0.04, while revenue reached $367.2 million, exceeding the estimated $362.6 million, representing an 83% increase year-over-year with 33.5% organic growth excluding Ambry contributions [2] - The diagnostics segment generated $266.9 million in revenue, showing a 121.6% year-over-year growth driven by a 29% increase in oncology volume and a 23% rise in hereditary volume [3] - The Data and Applications segment contributed $100 million, up 25%, and the Insights segment experienced a robust 68% growth [3] Financial Challenges - Tempus has a negative price-to-earnings (P/E) ratio of -41.21, indicating negative earnings, and an enterprise value to operating cash flow ratio of approximately -25.61, highlighting challenges in generating positive cash flow [4] - The earnings yield is negative at -2.43%, further emphasizing financial difficulties [4] - The debt-to-equity ratio stands at 1.66, indicating higher debt levels compared to equity, while the current ratio of 3.13 suggests a strong ability to cover short-term liabilities [5] - The company achieved positive adjusted EBITDA for the first time in the previous quarter, amounting to $1.5 million, marking a significant milestone [5]