Tempus AI Inc. (NASDAQ: TEM) reported fourth‑quarter and full‑year 2025 results on February 24, 2026, with revenue of $367.2 million—an 83% year‑over‑year increase that surpassed consensus estimates of $362.29 million to $365.9 million. The company also posted its first positive adjusted EBITDA of $12.9 million, a milestone that signals the operational leverage of its AI‑enabled diagnostics flywheel.
Revenue growth was driven by a 56% quarter‑over‑quarter acceleration in minimal residual disease (MRD) testing volumes, a high‑margin revenue driver, and continued expansion of the Diagnostics and Data & Applications businesses. The Ambry Genetics acquisition, completed in February 2025, contributed to the diagnostics revenue surge, while the Data & Applications segment grew through increased data licensing and AI‑powered insights.
Adjusted earnings per share fell to a loss of $0.04, beating the consensus estimate of a loss of $0.14 or $0.20. The beat was largely attributable to tighter cost control, improved gross margins, and a favorable mix shift toward higher‑margin data and application contracts that offset the continued investment in AI infrastructure and cloud expansion.
Management guided for full‑year 2026 revenue of $1.59 billion and adjusted EBITDA of roughly $65 million, implying a 4.1% margin. The guidance reflects a deceleration from the 83% growth seen in 2025 but signals confidence that the company can sustain profitability as it scales its diagnostics, data, and AI application businesses. The company’s net revenue retention of 126% and total contract value exceeding $1.1 billion reinforce the strength of its customer base.
Investors noted the guidance’s slower growth trajectory and the modest implied margin, which tempered enthusiasm despite the earnings beat. Headwinds cited by management include reimbursement timing and competitive pressure in the diagnostics market, while tailwinds include the continued compounding of AI network effects and the company’s unique data assets.
CEO Eric Lefkofsky said, "We enter 2026 in an exceptionally strong position with both of our main businesses accelerating in growth and delivering the financial leverage inherent in our platform." He added that the company’s data and AI capabilities are "proof that we are unique in this space" and that the network effects from AI investments will "not only drive significant growth over the next several years, but also enhance the lives of millions of patients around the world."
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.