Financial Data and Key Metrics Changes - Total revenue for the core business increased by over 33% in 2025, with the acquisition of Ambry contributing to even higher growth [5] - Net revenue retention was reported at 126%, indicating strong customer loyalty and increased spending [7] - The company guided for $1.59 billion in revenue for 2026, aligning with long-term growth expectations of approximately 25% [7] Business Line Data and Key Metrics Changes - In the diagnostics segment, oncology unit growth reached 29%, with a remarkable 56% quarter-over-quarter growth in minimal residual disease (MRD) testing [5][36] - The hereditary testing segment maintained a solid 23% unit growth [5] - The data business, particularly the licensing segment, saw a 69% increase in the quarter, with projections of around 40% growth for the upcoming quarter [6] Market Data and Key Metrics Changes - The company has established connections with over 5,500 hospitals and more than 8,500 oncologists, enhancing its market presence [12] - The total contract value for the data business exceeded $1.1 billion, indicating robust demand and growth potential [6] Company Strategy and Development Direction - The company aims to leverage its unique data advantages and AI capabilities to enhance diagnostic offerings and maintain a competitive edge in the healthcare sector [11][12] - The strategic focus includes expanding the comprehensive nature of its testing portfolio, particularly through the integration of hereditary and oncology testing [61] - The company plans to continue investing in technology and AI to drive growth and improve diagnostic accuracy [74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, citing strong demand for data products and a solid foundation for revenue growth [49] - The company anticipates continued strong performance in oncology diagnostics, with expectations of high teens growth in hereditary testing [30][56] - Management highlighted the importance of proprietary data in training AI models, which is expected to enhance the company's offerings and market position [11][12] Other Important Information - The company is in the process of developing a foundation model for AI, with expectations of significant advancements in diagnostic capabilities [28] - The average selling price (ASP) for tests was reported at approximately $1,640, with potential for significant increases in the coming years [22] Q&A Session Summary Question: Concerns about AI and market competition - Management emphasized the unique position of the company due to its proprietary data and established relationships with healthcare providers, which are difficult for competitors to replicate [11][12] Question: Strategic value of Paige Predict and its impact - Management discussed the importance of contextualizing diagnostics and how new technologies like Paige Predict enhance the value of their offerings [17][19] Question: Update on foundation model development - Management confirmed that benchmarks for the foundation model have been met and that testing is ongoing, with expectations for significant value delivery [28] Question: Volume growth assumptions for 2026 - Management indicated that oncology growth is off to a strong start, with expectations of continued growth, while hereditary testing may see some moderation [30][56] Question: Insights on MRD testing and sales force effectiveness - Management highlighted the strong performance of MRD testing despite a constrained sales effort, indicating potential for significant growth once fully deployed [36][37] Question: ASP outlook and gross margin implications - Management noted that increases in ASP would likely lead to improved gross margins, while balancing the need for comprehensive testing panels [78]

Financial Data and Key Metrics Changes - Total revenue for the core business increased by over 33% in 2025, with the acquisition of Ambry contributing to even higher growth [4] - The diagnostics business in oncology experienced a unit growth of 29%, with a remarkable 56% quarter-over-quarter growth in minimal residual disease (MRD) testing [4][5] - The licensing business, referred to as Insights, grew by 69% in the quarter, with a projected growth of approximately 40% for the upcoming quarter [5] - Net revenue retention stood at 126%, indicating strong customer loyalty and increased ordering from existing clients [5] Business Line Data and Key Metrics Changes - The diagnostics segment showed strong performance, particularly in oncology, with unit growth of 29% and hereditary testing holding steady at 23% [4] - The data business, which includes licensing and applications, is growing even faster, with total contract value exceeding $1.1 billion [5] - The MRD testing segment is highlighted as having significant growth potential, with only a small percentage of the sales force currently selling it [33] Market Data and Key Metrics Changes - The company is well-positioned in the healthcare AI market, leveraging over 450 petabytes of connected multimodal data to enhance its offerings [9][10] - The oncology market is experiencing healthy growth rates, with the company capturing additional market share due to its data advantage [41] Company Strategy and Development Direction - The company aims to integrate technology and AI into diagnostics, ensuring that decisions in clinical and research settings are data-driven [73] - The acquisition of Ambry was primarily to broaden the comprehensive nature of the testing compendium, aligning with the trend of providers seeking comprehensive solutions [60] - The company is focused on enhancing its data offerings and maintaining a competitive edge through proprietary data and technology [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, with guidance of $1.59 billion in revenue and approximately $65 million in positive adjusted EBITDA [5] - The company anticipates continued strong demand for its data products, indicating a unique position in the market [48] - There is an expectation of moderation in hereditary testing growth rates, while oncology remains robust [30] Other Important Information - The average selling price (ASP) for tests in Q4 was around $1,640, with expectations of reaching over $2,200 in the coming years [21] - The company is actively working on enhancing its tumor-naive assays to compete in the market, with a focus on improving performance [70] Q&A Session Summary Question: Concerns about AI and market competition - Management highlighted the unique position of the company in the AI space, emphasizing its proprietary data and technology advantages [9][10] Question: Strategic value of Paige Predict and ASP expectations - Management discussed the importance of contextualizing diagnostics and the expected ASP growth driven by FDA-approved versions of tests [15][21] Question: Update on foundation model development - Management confirmed that benchmarks for the foundation model have been met and that testing is ongoing with AstraZeneca [26] Question: Volume growth assumptions for oncology and hereditary testing - Management indicated strong growth in oncology and moderate expectations for hereditary testing, with a focus on high teens growth rates [30][29] Question: Insights on MRD testing and sales force effectiveness - Management noted the strong performance of MRD testing despite a constrained sales effort, indicating significant potential for future growth [33] Question: Changes to sales organization and investment priorities - Management stated that no major changes were made to the sales organization, with a focus on leveraging technology and AI for diagnostics [73]

Core Insights - Tempus AI is adopting a dual-engine model focusing on a rapidly growing Genomics franchise and a scaling data business supported by an expanding AI toolkit [1][2] - The company achieved non-GAAP profitability in Q3 2025, indicating operational momentum as revenue increases [1][8] - The revenue mix is primarily from North America, driven by oncology testing, hereditary screening, and a developing minimal residual disease (MRD) offering [1][2] Genomics and Data Services - Tempus AI aggregates multimodal clinical and lab data, commercializing it through Genomics and Data services, including an Insights platform [2] - The Genomics portfolio aids in therapy selection and disease monitoring through various DNA and RNA-based tests, while the Insights platform monetizes de-identified datasets and analytics for life sciences partners [2][9] - In 2024, Genomics accounted for approximately 65% of revenue, with Data and services contributing 35%, highlighting the growing significance of data licensing [9] Operating Performance - The company reached a key milestone of non-GAAP profitability in Q3, supported by disciplined MRD expansion and cost management [3][8] - EPS history and estimates show a trend towards reduced losses into 2026, reflecting operational leverage from scaling and improved revenue mix [3] Regulatory and Payment Factors - Tempus AI is working on Advanced Diagnostic Laboratory Test (ADLT) migrations, which could enhance pricing and reimbursement opportunities [4][8] - Current average reimbursement rates are below peers, and successful execution of ADLT transitions and payer coverage expansion is crucial for revenue quality and margin improvement [4][8] Growth Drivers - Growth is expected to be driven by increased MRD volumes as the adoption of the xM test expands and new use cases are identified [11] - Recent performance included a 31.3% EPS surprise and a 2.4% sales surprise, providing a positive context for upcoming financial results [11] Competitive Landscape - Illumina and Guardant Health are key competitors in the genomic tools and clinical applications space, providing insights into oncology testing demand and reimbursement pathways relevant to Tempus AI [12]

As filed with the Securities and Exchange Commission on June 13, 2024 Registration No. 333-279558 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Amendment No. 2 to FORM S-1 REGISTRATION STATEMENT UNDER Table of Contents THE SECURITIES ACT OF 1933 Tempus AI, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 7370 47-4903308 (Primary Standard Industrial Classification Code Number) 600 West Chicago Avenue, ...