Tempus Reports Second Quarter 2026 Results
Tempus Reports Second Quarter 2026 Results
Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine, today reported financial results for the quarter ended June 30, 2026.
“Q2 was another exceptional quarter for us,” said Eric Lefkofsky, Founder and CEO of Tempus. “Our strategy is working given the investments we have made in AI over the past several years are driving some of the best growth rates we have seen in our two largest businesses - Oncology Diagnostics and Data Licensing.”
Second Quarter 2026 Highlights
- Total revenue of $382.5 million, up 22% year-over-year
- Oncology volume growth of 31% year-over-year, up from 28% last quarter
* Molecular residual disease (MRD) volume was 9,000 tests, up from 6,500 last quarter
- Data Licensing & Modeling (Insights) revenue up 36% year-over-year
- Signed ~$200 million in new Data and Applications licenses
- FDA approved xT Tumor Only which will migrate tissue testing to ADLT pricing
- Successfully delivered our first oncology foundation model to AstraZeneca
- Completed a $460 million offering of 0.0% convertible senior notes due 2032
- GAAP net income of $5.6 million and Adjusted EBITDA of $8.0 million
- Cash and marketable securities of $820.7 million as of June 30, 2026
* Increasing revenue guidance to $1.595 to $1.605 billion for 2026 and expect full year Adjusted EBITDA of ~$65 million
On July 20, 2026, Tempus also announced an agreement to acquire Personalis, a leader in the tumor-informed MRD space. “Through our existing collaboration with Personalis, we have already demonstrated the strength of combining highly sensitive MRD technology with our commercial infrastructure,” said Mr. Lefkofsky. “With clinical adoption and reimbursement momentum building, we believe we are collectively well positioned to capture this opportunity, which makes this acquisition particularly exciting.”
Second Quarter 2026 Summary Results
- Revenue increased 22% year-over-year to $382.5 million.
* Diagnostics generated $289.3 million of revenue, representing 20% year-over-year growth, driven by Oncology volume growth of 31%, offset by Hereditary revenue growth of 5%.
* Data and Applications generated $93.2 million of revenue, representing 28% year-over-year growth, with Insights growing 36%.
* Gross profit increased 26% year-over-year to $246.5 million, led by growth in Data and Applications.
* Net income was $5.6 million, which included $55.6 million of stock compensation expense and related employer payroll taxes and $98.5 million in unrealized gains on marketable securities, compared to a net loss of $(42.8 million) in Q2 of 2025.
- Adjusted EBITDA was $8.0 million, compared to ($5.6 million) in Q2 of 2025.
- $820.7 million in cash and marketable securities as of June 30, 2026.
Recent Operational Highlights
* Entered into a definitive agreement to acquire Personalis for $16.25 per share (~$1.5 billion enterprise value), tightly integrating its ultrasensitive NeXT Personal® MRD technology into Tempus' diagnostic platform
* Received FDA approval for tumor-only xT CDx assay, becoming the first laboratory to hold FDA companion diagnostic (CDx) approval for both tumor-only and tumor-normal comprehensive genomic profiling
* Launched digital pathology IMS Open-Source Consortium along with Yale New Haven Hospital (YNHH) and Memorial Sloan Kettering Cancer Center (MSK) to accelerate the democratization and standardization of digital pathology
* Introduced Tempus Preview to provide preliminary results for high impact biomarkers within ~24 hours of tissue receipt
* Announced a strategic collaboration with the Keck School of Medicine of USC to integrate Tempus' AI platform, molecular diagnostics, and clinical trial matching across more than 1.5 million annual patient visits to accelerate precision oncology care
* Introduced initial results from and successfully delivered the first version of our foundation model to AstraZeneca
* Signed large deals with BioNTech, Daiichi Sankyo, Level Set Bio, and Incyte Pharmaceuticals, contributing to ~$200 million in total bookings this quarter
| Second Quarter Financial Results Three Months Ended June 30, | 2026 | 2025 | |
|---|---|---|---|
| Change (in thousands, except percentages and per share amounts) (unaudited) Revenue | $382,486 | $314,635 | 22% |
| Gross profit | $246,498 | $195,039 | 26% |
| Loss from operations $(75,913) $(61,774) | 23% | ||
| Non-GAAP loss from operations $(2,708) $(17,036) | (84)% | ||
| Net income (loss) | $5,642 | ||
| $(42,843) | 113% | ||
| Non-GAAP net loss $(7,726) $(37,327) | (79)% | ||
| Adjusted EBITDA | $8,044 | ||
| $(5,580) | 244% | ||
| Net income (loss) per share, basic | $0.03 | ||
| $(0.25) | 112% | ||
| Non-GAAP net loss per share, basic $(0.04) $(0.22) | (82)% |
Financial Outlook and Guidance
Tempus is increasing its full year 2026 revenue guidance to $1.595 to $1.605 billion, which represents ~25% annual growth. We continue to expect 2026 Adjusted EBITDA to be ~$65 million. Guidance assumes no impact from the Personalis transaction, which is expected to close in late Q4 2026 or early 2027.
For additional information on the quarter, including a letter from our CEO and CFO, please visit our investor relations site at investors.tempus.com.
Webcast and Conference Call Information
A conference call and webcast will begin today, July 30, 2026 after market close at 4:30 p.m. Eastern Time. Interested parties may access details at:
Conference ID: 9053038
United States - New York: (646) 307-1963
USA & Canada - Toll-Free: (800) 715-9871
Live webcast can be accessed here
The webcast may be accessed on the company’s investor relations website at investors.tempus.com. For those unable to listen to the live webcast, a recording will be made available on the company’s website after the event and will be accessible for one year. Visit the investor relations website to find the company’s latest deck, and commentary on the quarter by Eric Lefkofsky, Founder and CEO, and Jim Rogers, CFO, which will be discussed on the conference call and webcast.
About Tempus
Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit tempus.com.
Non-GAAP Financial Measures
In addition to the financial information presented in this release in accordance with accounting principles generally accepted in the United States of America (GAAP), Tempus also presents adjusted non-GAAP financial measures.
Non-GAAP gross profit is defined as GAAP gross profit, excluding stock-based compensation expense and employer payroll tax related to stock-based compensation (collectively, the “stock-based compensation adjustments”). Non-GAAP gross margin is defined as gross profit, excluding the stock-based compensation adjustments, as a percentage of revenue. Non-GAAP operating expenses are calculated as the sum of technology research and development expense, research and development expense, and selling, general and administrative expense, excluding the stock-based compensation adjustments, acquisition-related expenses, amortization of intangibles due to acquisition, and franchise taxes related to IPO. Non-GAAP loss from operations is defined as loss from operations, adjusted to exclude (i) the stock-based compensation adjustments, (ii) acquisition-related expenses, (iii) franchise taxes related to IPO, and (iv) amortization of intangibles due to acquisition. Non-GAAP net loss is defined as net income (loss), adjusted to exclude (i) changes in fair value of our marketable equity securities and indemnity-related holdback liabilities, (ii) the stock-based compensation adjustments, (iii) acquisition-related expenses, (iv) amortization of intangibles due to acquisition, (v) losses from equity method investments, (vi) provision for (benefit from) income taxes, (vii) franchise taxes related to IPO, and (viii) amortization of deferred other income from our IP License Agreement with SB Tempus, and (ix) loss on debt extinguishment. Non-GAAP net loss per share is defined as non-GAAP net loss divided by weighted average common shares outstanding, basic.
Adjusted EBITDA is defined as net (income) loss, adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) provision for (benefit from) income taxes, (v) losses from equity method investments, (vi) changes in fair value of our marketable equity securities and indemnity-related holdback liabilities, (vii) the stock-based compensation adjustments, (viii) acquisition-related expenses, and (ix) amortization of deferred other income from our IP License Agreement with SB Tempus, (x) franchise taxes related to our IPO, and (xi) loss on debt extinguishment.
Tempus believes these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by institutional investors and the analyst community to help them analyze the health of Tempus’ business. In particular, Adjusted EBITDA is a key measurement used by Tempus management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.
Tempus does not provide guidance for net (income) loss, the most directly comparable GAAP measure to Adjusted EBITDA, and similarly cannot provide a reconciliation between Tempus’ forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of reliable estimates for certain components of net loss and the respective reconciliations. These forecasted items are not within Tempus’ control, may vary greatly between periods, and could significantly impact future financial results.
Other Key Metrics
Total Remaining Contract Value (TCV) is equal to the total potential value of signed contracts and assumes the exercise of all contract options, all discretionary opt-ins, and no early termination. Remaining TCV excludes any revenue recognized to date on these contracts or any future adjustments made to the contractual value as a result of amendments or terminations.
Net Revenue Retention compares the annual Insights product revenue generated from all customers that made an Insights purchase in one year to the annual Insights product revenue generated from the same cohort of customers in the subsequent year.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and its industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, Tempus’ expected financial results for full year 2026; expectations concerning Tempus' collaborations and partnerships; Tempus' growth expectations; and the pending acquisition of Personalis. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus’ business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: the intended use of Tempus’ products and services; Tempus’ financial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments, including Tempus' ability to consummate the acquisition of Personalis on the contemplated terms or at all and Tempus’ ability to realize the expected benefits of the acquisition of Paige AI, Ambry Genetics, Deep 6 AI and, if consummated, Personalis; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, trade tensions and tariffs, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled “Risk Factors” in Tempus’ Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“the SEC”) on February 24, 2026, as well as in other filings Tempus may make with the SEC from time to time. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Tempus AI, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands, except per share amounts)
| Three Months Ended June 30, Six Months Ended June 30, | 2026 | 2025 | 2026 | 2025 |
|---|---|---|---|---|
| Net revenue Diagnostics ((1)) | $289,333 | $241,843 | $550,431 | $435,647 |
| Data and applications ((2)) | 93,153 | 72,792 | 180,171 | 134,725 |
| Total net revenue | $382,486 | $314,635 | $730,602 | $570,372 |
| Cost and operating expenses | ||||
| Cost of revenues, diagnostics | 108,233 | 99,756 | 209,193 | 184,539 |
| Cost of revenues, data and applications | 27,755 | 19,840 | 52,870 | 35,591 |
| Technology research and development | 43,929 | 34,482 | 89,850 | 67,873 |
| Research and development | 52,637 | 41,619 | 100,874 | 77,493 |
| Selling, general and administrative | 225,845 | 180,712 | 438,439 | 335,339 |
| Total cost and operating expenses | 458,399 | 376,409 | 891,226 | 700,835 |
| Loss from operations $(75,913) $(61,774) $(160,624) $(130,463) Interest income | 3,897 | 1,093 | 7,763 | 2,906 |
| Interest expense | (10,283) | (21,579) | (24,624) | (39,582) |
| Loss on debt extinguishment | (11,643) | — | (11,643) | — |
| Other income, net | 102,757 | 41,729 | 75,048 | 14,274 |
| Income (loss) before (provision for) benefit from income taxes | $8,815 | |||
| $(40,531) $(114,080) $(152,865) (Provision for) benefit from income taxes | (309) | (212) | (247) | 45,968 |
| Losses from equity method investments | (2,864) | (2,100) | (5,950) | (3,983) |
| Net income (loss) | $5,642 | |||
| $(42,843) $(120,277) $(110,880) Net income (loss) per share Basic | $0.03 | |||
| $(0.25) $(0.67) $(0.64) Diluted | $0.03 | |||
| $(0.25) $(0.67) $(0.64) Weighted-average shares outstanding used to compute net income (loss) per share Basic | 179,917 | 173,381 | 179,404 | 171,960 |
| Diluted | 182,397 | 173,381 | 179,404 | 171,960 |
| Comprehensive income (loss), net of tax Net income (loss) | $5,642 | |||
| $(42,843) $(120,277) $(110,880) Foreign currency translation adjustment | (1,033) | 3,756 | (2,843) | 8,354 |
| Comprehensive income (loss) | $4,609 | |||
| $(39,087) $(123,120) $(102,526) | ||||
((1)) Includes related party revenue of $40 and $0 for the three months ended June 30, 2026 and 2025, respectively. Includes related party revenue of $190 and $1 for the six months ended June 30, 2026 and 2025, respectively. ((2)) Includes related party revenue of $21,984 and $15,908 for the three months ended June 30, 2026 and 2025, respectively. Includes related party revenue of $43,657 and $16,538 for the six months ended June 30, 2026 and 2025, respectively.
Tempus AI, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)
| June 30, | 2026 | ||
| December 31, | 2025 | ||
| Assets Current Assets Cash and cash equivalents | $599,614 | $604,787 | |
| Accounts receivable ((1)), net of allowances of | $2,794 | ||
| and | $2,755 | ||
| at June 30, | 360,924 | 311,170 | 2026 |
| and December 31, 2025, respectively Inventory | 53,512 | 51,724 | |
| Related party asset | 17,500 | 8,785 | |
| Prepaid expenses and other current assets | 42,938 | 40,498 | |
| Marketable equity securities | 216,377 | 150,211 | |
| Total current assets | $1,290,865 | $1,167,175 | |
| Property and equipment, net | 89,066 | 89,156 | |
| Goodwill | 470,166 | 470,211 | |
| Intangible assets, net | 312,457 | 349,202 | |
| Capitalized software, net | 19,772 | 6,051 | |
| Investments and other assets | 17,164 | 21,111 | |
| Investment in joint venture | 77,811 | 86,557 | |
| Investment in related party | 8,750 | — | |
| Related party asset, less current portion | 14,583 | 16,215 | |
| Operating lease right-of-use assets | 60,553 | 64,496 | |
| Restricted cash | 4,724 | 4,664 | |
| Total Assets | $2,365,911 | $2,274,838 | |
| Liabilities, Convertible redeemable preferred stock, and Stockholders' equity | |||
| Current Liabilities Accounts payable | 73,818 | 81,994 | |
| Related party payable | 10,000 | — | |
| Accrued expenses | 181,271 | 155,370 | |
| Deferred revenue ((2)) | 87,251 | 92,673 | |
| Deferred other income | 15,955 | 15,955 | |
| Other current liabilities | 8,293 | 8,680 | |
| Operating lease liabilities | 12,192 | 13,355 | |
| Accrued data licensing fees | 2,712 | 4,361 | |
| Total current liabilities | $391,492 | $372,388 | |
| Operating lease liabilities, less current portion | 71,266 | 74,272 | |
| Convertible promissory note | 187,929 | 208,672 | |
| Other long-term liabilities | 56,270 | 56,600 | |
| Revolving credit facility | — | 100,000 | |
| Interest payable | 19,155 | 12,393 | |
| Long-term debt, net | — | 202,753 | |
| Convertible senior notes, net | 1,172,781 | 728,078 | |
| Deferred other income, less current portion | — | 7,977 | |
| Deferred revenue, less current portion | 22,084 | 20,379 | |
| Total Liabilities | $1,920,977 | $1,783,512 | |
((1) )Includes related party accounts receivable of $10,924 and $6,428 as of June 30, 2026 and December 31, 2025, respectively. ((2) )Includes related party deferred revenue of $403 and $3,938 as of June 30, 2026 and December 31, 2025, respectively.
Tempus AI, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)
| Commitments and contingencies (Note | 8) | |
| Convertible redeemable preferred stock, | $0.0001 | |
| par value, | 2 | 0,000,000 |
| shares $— $— authorized at June 30, | 2026 | |
| and December 31, 2025, respectively, no shares issued and outstanding at June 30, | 2026 | |
| and December 31, | 2025 | |
| Stockholders' equity Class A Common Stock, | $0.0001 | |
| par value, | 1,000,000,000 | |
| shares authorized at | 18 | 17 |
| June 30, | 2026 | |
| and December 31, 2025, respectively; | 175,200,077 | |
| and | 173,235,428 | |
| shares issued and outstanding at June 30, | 2026 | |
| and December 31, 2025, respectively Class B Common Stock, | $0.0001 | |
| par value, | 5,500,000 | |
| shares authorized at June | 1 | 1 |
| 30, | 2026 | |
| and December 31, 2025, respectively; | 5,043,789 | |
| issued and outstanding at June 30, | 2026 | |
| and December 31, 2025, respectively Treasury Stock, | 183,229 | |
| shares at June 30, | 2026 | |
| and December 31, 2025, | (6,642) | (6,642) |
| respectively, at cost Additional Paid-In Capital | 2,969,637 | 2,892,910 |
| Accumulated Other Comprehensive (Loss) Income | (1,941) | 902 |
| Accumulated deficit | (2,516,139) | (2,395,862) |
| Total Stockholders' equity | $444,934 | $491,326 |
| Total Liabilities, Convertible redeemable preferred stock, and Stockholders' | $2,365,911 | $2,274,838 |
| equity | ||
Tempus AI, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands, except per share amounts)
| Six Months Ended June 30, | 2026 | 2025 |
|---|---|---|
| Operating activities Net loss $(120,277) $(110,880) Adjustments to reconcile net loss to net cash used in operating activities | ||
| Stock-based compensation | 106,827 | 45,429 |
| Gain on marketable equity securities | (66,166) | (6,007) |
| Loss on disposal of property and equipment | 375 | — |
| Deferred income taxes | — | (46,216) |
| Losses from equity method investments | 5,950 | 3,983 |
| Amortization of original issue discount | 3,125 | 1,169 |
| Amortization of deferred financing fees | 194 | 332 |
| Change in fair value of holdback liability | (94) | 312 |
| Loss on debt extinguishment | 11,643 | — |
| Depreciation and amortization | 52,161 | 48,385 |
| Provision for bad debt expense | 866 | 625 |
| Provision for obsolete inventory | 400 | — |
| Non-cash operating lease costs | 6,896 | 4,573 |
| Minimum accretion expense | 88 | 108 |
| PIK interest added to principal | 1,674 | 7,157 |
| Change in assets and liabilities | ||
| Accounts receivable ((1)) | (50,565) | (49,155) |
| Inventory | (2,188) | 1,974 |
| Prepaid expenses and other current assets | (2,440) | (188) |
| Investments and other assets | 960 | (11,073) |
| Accounts payable | (30,225) | 7,025 |
| Related party asset | 2,917 | — |
| Deferred revenue ((2)) | (12,467) | 36,836 |
| Deferred other income | (7,977) | (7,977) |
| Accrued data licensing fees | (1,568) | 3,957 |
| Accrued expenses & other | 19,941 | 6,991 |
| Interest payable | 6,270 | 7,122 |
| Operating lease liabilities | (7,122) | (5,942) |
| Net cash used in operating activities $(80,802) $(61,460) | ||
((1)) Includes increase in related party accounts receivable of $4,496 for the six months ended June 30, 2026. Includes decrease in related party accounts receivable of $2,089 for the six months ended June 30, 2025. ((2)) Includes decrease in related party deferred revenue of $3,535 for the six months ended June 30, 2026. Includes increase in related party deferred revenue of $36,685 for the six months ended June 30, 2025.
Tempus AI, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands, except per share amounts)
Six Months Ended June 30, 2026 2025 Investing activities Purchases of property and equipment $ (14,327 ) $ (9,588 ) Proceeds from sale of marketable equity securities — 8,316 Business combinations, net of cash acquired (Note 4) — (380,762 ) Capitalized software costs (6,832 ) (3,295 ) Net cash used in investing activities $ (21,159 ) $ (385,329 ) Financing activities Proceeds from convertible senior notes, net of initial purchasers' discount 443,132 — Principal payments on long-term debt (207,717 ) — Principal payments on revolving credit facility (100,000 ) — Prepayment premium on long-term debt (6,433 ) — Payment of deferred offering costs (147 ) — Purchases of capped call (31,234 ) — Proceeds from revolving credit facility, net of original issue discount — 98,000 Proceeds from long-term debt, net of original issue discount — 196,000 Payment of deferred financing fees (751 ) (958 ) Net cash provided by financing activities $ 96,850 $ 293,042 Effect of foreign exchange rates on cash $ (2 ) $ (37 ) Net decrease in Cash, Cash Equivalents and Restricted Cash $ (5,113 ) $ (153,784 ) Cash, cash equivalents and restricted cash, beginning of period 609,451 341,835 Cash, cash equivalents and restricted cash, end of period $ 604,338 $ 188,051 Cash, Cash Equivalents and Restricted Cash are Comprised of: Cash and cash equivalents $ 599,614 $ 186,310 Restricted cash and cash equivalents 4,724 1,741 Total cash, cash equivalents and restricted cash $ 604,338 $ 188,051 Supplemental disclosure of cash flow information Cash paid during the year for interest $ 12,299 $ 23,980 Cash paid for income taxes $ 247 $ 136 Preferred stock received on accounts receivable((3)) $ 8,750 $ — Supplemental disclosure of noncash investing and financing activities Purchases of property and equipment, accrued but not paid $ 6,106 $ 6,863 Redemption of convertible promissory note $ 20,743 $ 14,338 Deferred financing fees, accrued but not yet paid $ 726 $ 545 Deferred offering costs, accrued but not yet paid $ 129 $ 95 Operating lease liabilities arising from obtaining right-of-use assets $ 360 $ 606 Capitalized software costs, accrued but not yet paid $ 6,564 $ — Class A Common Stock issued in connection with business combinations $ — $ 310,320 Convertible promissory note principal reset due to amendment $ — $ 72,488
((3)) Includes related party preferred stock of $8,750 for the six months ended June 30, 2026.
Tempus AI, Inc.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(in thousands, except percentages and per share amounts)
Diagnostics Gross Profit & Gross Margin
| Three Months Ended June 30, Six Months Ended June 30, | 2026 | 2025 | 2026 | 2025 |
|---|---|---|---|---|
| Diagnostics revenue | $289,333 | $241,843 | $550,431 | $435,647 |
| Cost of revenues, diagnostics | 108,233 | 99,756 | 209,193 | 184,539 |
| Gross profit, diagnostics | $181,100 | $142,087 | $341,238 | $251,108 |
| Stock-based compensation expense | 3,636 | 1,420 | 5,758 | 2,455 |
| Employer payroll tax related to stock-based compensation | 124 | 254 | 458 | 302 |
| Non-GAAP gross profit, diagnostics | $184,860 | $143,761 | $347,454 | $253,865 |
| Diagnostics gross margin | 62.6% | 58.8% | 62.0% | 57.6% |
| Stock-based compensation expense | 1.3% | 0.6% | 1.0% | 0.6% |
| Employer payroll tax related to stock-based compensation | 0.0% | 0.1% | 0.1% | 0.1% |
| Non-GAAP gross margin, diagnostics | 63.9% | 59.4% | 63.1% | 58.3% |
Data and applications Gross Profit & Gross Margin
| Three Months Ended June 30, Six Months Ended June 30, | 2026 | 2025 | 2026 | 2025 |
|---|---|---|---|---|
| Data and applications revenue | $93,153 | $72,792 | $180,171 | $134,725 |
| Cost of revenues, data and applications | 27,755 | 19,840 | 52,870 | 35,591 |
| Gross profit, data and applications | $65,398 | $52,952 | $127,301 | $99,134 |
| Stock-based compensation expense | 968 | 693 | 2,521 | 1,304 |
| Employer payroll tax related to stock-based compensation | 53 | 114 | 237 | 158 |
| Non-GAAP gross profit, data and applications | $66,419 | $53,759 | $130,059 | $100,596 |
| Gross margin, data and applications | 70.2% | 72.7% | 70.7% | 73.6% |
| Stock-based compensation expense | 1.0% | 1.0% | 1.4% | 1.0% |
| Employer payroll tax related to stock-based compensation | 0.1% | 0.2% | 0.1% | 0.1% |
| Non-GAAP gross margin, data and applications | 71.3% | 73.9% | 72.2% | 74.7% |
Total Gross Profit & Gross Margin
| Three Months Ended June 30, Six Months Ended June 30, | 2026 | 2025 | 2026 | 2025 |
|---|---|---|---|---|
| Net revenue | $382,486 | $314,635 | $730,602 | $570,372 |
| Cost of revenues | 135,988 | 119,596 | 262,063 | 220,130 |
| Gross profit | $246,498 | $195,039 | $468,539 | $350,242 |
| Stock-based compensation expense | 4,604 | 2,113 | 8,279 | 3,759 |
| Employer payroll tax related to stock-based compensation | 177 | 369 | 695 | 460 |
| Non-GAAP gross profit | $251,279 | $197,521 | $477,513 | $354,461 |
| Gross margin | 64.4% | 62.0% | 64.1% | 61.4% |
| Stock-based compensation expense | 1.2% | 0.7% | 1.1% | 0.7% |
| Employer payroll tax related to stock-based compensation | 0.0% | 0.1% | 0.1% | 0.1% |
| Non-GAAP gross margin | 65.7% | 62.8% | 65.4% | 62.1% |
Operating Expenses
| Three Months Ended June 30, Six Months Ended June 30, | 2026 | 2025 | 2026 | 2025 |
|---|---|---|---|---|
| Technology research and development | $43,929 | $34,482 | $89,850 | $67,873 |
| Stock-based compensation expense | 8,641 | 3,285 | 18,147 | 6,604 |
| Employer payroll tax related to stock-based compensation | 358 | 495 | 1,170 | 756 |
| Non-GAAP technology research and development | $34,930 | $30,702 | $70,533 | $60,513 |
| Research and development | $52,637 | $41,619 | $100,874 | $77,493 |
| Stock-based compensation expense | 5,287 | 2,335 | 9,852 | 4,317 |
| Employer payroll tax related to stock-based compensation | 248 | 235 | 731 | 411 |
| Non-GAAP research and development | $47,102 | $39,049 | $90,291 | $72,765 |
| Selling, general and administrative | $225,845 | $180,712 | $438,439 | $335,339 |
| Stock-based compensation expense | 35,589 | 14,722 | 70,549 | 30,749 |
| Employer payroll tax related to stock-based compensation | 711 | 774 | 2,456 | 5,499 |
| Acquisition related expenses ((1)) | 990 | 1,992 | 986 | 5,521 |
| Amortization of intangibles due to acquisition | 16,601 | 16,771 | 33,472 | 27,927 |
| Franchise taxes related to IPO | — | 1,647 | — | 1,647 |
| Non-GAAP selling, general and administrative | $171,954 | $144,806 | $330,976 | $263,996 |
| Operating expenses | $322,411 | $256,813 | $629,163 | $480,705 |
| Stock-based compensation expense | 49,517 | 20,342 | 98,548 | 41,670 |
| Employer payroll tax related to stock-based compensation | 1,317 | 1,504 | 4,357 | 6,666 |
| Acquisition related expenses ((1)) | 990 | 1,992 | 986 | 5,521 |
| Amortization of intangibles due to acquisition | 16,601 | 16,771 | 33,472 | 27,927 |
| Franchise taxes related to IPO | — | 1,647 | — | 1,647 |
| Non-GAAP operating expenses | $253,986 | $214,557 | $491,800 | $397,274 |
((1)) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three and six months ended June 30, 2026 and 2025.
Loss from Operations
| Three Months Ended June 30, Six Months Ended June 30, | 2026 | 2025 | 2026 | 2025 |
|---|---|---|---|---|
| Loss from operations $(75,913) $(61,774) $(160,624) $(130,463) Stock-based compensation expense | 54,121 | 22,455 | 106,827 | 45,429 |
| Employer payroll tax related to stock-based compensation | 1,493 | 1,873 | 5,051 | 7,126 |
| Acquisition related expenses ((1)) | 990 | 1,992 | 986 | 5,521 |
| Franchise taxes related to IPO | — | 1,647 | — | 1,647 |
| Amortization of intangibles due to acquisition | 16,601 | 16,771 | 33,472 | 27,927 |
| Non-GAAP loss from operations $(2,708) $(17,036) $(14,288) $(42,813) | ||||
((1)) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three and six months ended June 30, 2026 and 2025.
Earnings per Share
| Three Months Ended June 30, Six Months Ended June 30, | 2026 | 2025 | 2026 | 2025 |
|---|---|---|---|---|
| Net income (loss) | $5,642 | |||
| $(42,843) $(120,277) $(110,880) Fair value changes ((1)) | (97,401) | (37,546) | (66,260) | (5,696) |
| Stock-based compensation expense | 54,121 | 22,455 | 106,827 | 45,429 |
| Employer payroll tax related to stock-based compensation | 1,493 | 1,873 | 5,051 | 7,126 |
| Acquisition related expenses ((2)) | 990 | 1,992 | 986 | 5,521 |
| Amortization of intangibles due to acquisition | 16,601 | 16,771 | 33,472 | 27,927 |
| Losses from equity method investments | 2,864 | 2,100 | 5,950 | 3,983 |
| Provision for (benefit from) income taxes | 309 | 212 | 247 | (45,968) |
| Franchise taxes related to IPO | — | 1,647 | — | 1,647 |
| Amortization of technology license | (3,988) | (3,988) | (7,977) | (7,977) |
| Loss on debt extinguishment | 11,643 | — | 11,643 | — |
| Non-GAAP net loss $(7,726) $(37,327) $(30,338) $(78,888) Non-GAAP net loss per share, basic $(0.04) $(0.22) $(0.17) $(0.46) Weighted average common shares outstanding, basic | 179,917 | 173,381 | 179,404 | 171,960 |
((1)) Fair value changes include gains and losses related to quarterly fair value adjustments of our marketable equity securities and indemnity-related holdback liabilities. ((2)) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three and six months ended June 30, 2026 and 2025.
Adjusted EBITDA
| Three Months Ended June 30, Six Months Ended June 30, | 2026 | 2025 | 2026 | 2025 |
|---|---|---|---|---|
| Net income (loss) | $5,642 | |||
| $(42,843) $(120,277) $(110,880) Interest income | (3,897) | (1,093) | (7,763) | (2,906) |
| Interest expense | 10,283 | 21,579 | 24,624 | 39,582 |
| Depreciation | 7,125 | 8,347 | 14,550 | 16,230 |
| Amortization | 18,860 | 19,685 | 37,610 | 32,155 |
| Provision for (benefit from) income taxes | 309 | 212 | 247 | (45,968) |
| EBITDA | $38,322 | $5,887 | ||
| $(51,009) $(71,787) Losses from equity method investments | 2,864 | 2,100 | 5,950 | 3,983 |
| Fair value changes ((1)) | (97,401) | (37,546) | (66,260) | (5,696) |
| Stock-based compensation expense | 54,121 | 22,455 | 106,827 | 45,429 |
| Employer payroll tax related to stock-based compensation | 1,493 | 1,873 | 5,051 | 7,126 |
| Acquisition related expenses ((2)) | 990 | 1,992 | 986 | 5,521 |
| Amortization of technology license | (3,988) | (3,988) | (7,977) | (7,977) |
| Franchise taxes related to IPO | — | 1,647 | — | 1,647 |
| Loss on debt extinguishment | 11,643 | — | 11,643 | — |
| Adjusted EBITDA | $8,044 | |||
| $(5,580) | $5,211 | |||
| $(21,754) | ||||
((1)) Fair value changes include gains and losses related to quarterly fair value adjustments of our marketable equity securities and indemnity-related holdback liabilities. ((2)) Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three and six months ended June 30, 2026 and 2025.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260730328545/en/
Investors
Elizabeth Krutoholow
Kendra Webster
investorrelations@tempus.com (mailto:investorrelations@tempus.com)
Media
Kelli Manalli
media@tempus.com (mailto:media@tempus.com)
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