Tempus AI (TEM.US) Q3 revenue increased by 84.7% year-on-year, exceeding market expectations. Net loss widened by 5.5% year-on-year to $80 million.

Tempus AI announced its third quarter performance for 2025 after the market closed on November 4, Eastern Time. The financial report shows that the company's third quarter revenue reached $334.2 million, a year-on-year increase of 84.7%, exceeding the market's general expectation of $328.73 million. The company reported a net loss of $80 million for the quarter, which is slightly higher than the net loss of $75.8 million in the third quarter of 2024. However, it should be noted that this quarter's loss includes one-time expenses such as $35 million in stock compensation expenses and employer payroll taxes, an increase in intangible asset amortization expenses related to the acquisition of Ambry, and $12 million in one-time debt repayment losses. The net loss per share attributable to common stockholders (basic and diluted) was $0.46, the same as the previous year; the non-GAAP net loss per share was $0.11, better than the loss of $0.24 in the same period last year, and also better than the market's expected loss of $0.17 per share. In terms of business structure, Tempus AI's genomics revenue for the third quarter totaled $252.9 million, a year-on-year increase of 117.2%. Among them, tumor testing (Tempus genomics) contributed $139.5 million, a year-on-year increase of 31.7%, with a testing volume increase of approximately 27%; genetic testing (Ambry genetics) revenue reached $102.6 million, a growth of 32.8% according to comparable basis, with a testing volume increase of approximately 37%. Data and services revenue reached $81.3 million, a year-on-year increase of 26.1%, with the Insights (data license) business performing well, with a year-on-year increase of 37.6%. Tempus AI's gross profit for the third quarter was $209.9 million, an increase of 98.4% compared to the same period last year. The adjusted EBITDA for the third quarter was $1.5 million, while in the same period last year, there was a loss of $21.8 million. In addition, the company's operational highlights for the third quarter include: acquiring the digital pathology AI company Paige to expand the data set and technology team; being selected by ARPA-H for the ADAPT program to provide testing and CRO services; obtaining FDA 510(k) clearance for xR IVD (RNA NGS in vitro diagnostic equipment), Tempus Pixel cardiac imaging platform, and ECG-Low ejection fraction software; expanding the collaborative AI clinical assistant David with Northwestern Medicine to the EHR platform; and expanding Tempus Next to the breast cancer field to bridge the care gap. Looking ahead, the company has raised its full-year revenue forecast for 2025 to approximately $1.265 billion, an increase of about 80% year-on-year. Considering the acquisition of Paige is expected to increase the quarterly loss by approximately $5 million, the company expects the adjusted EBITDA for the fourth quarter to be around $20 million, and the full-year adjusted EBITDA to be slightly positive. As of the end of this quarter, the company held cash and marketable securities totaling $764.3 million.