Tempus Reports First Quarter 2026 Results
TEM
Published on 05/05/2026 at 04:02 pm EDT
Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine and patient care, today reported financial results for the quarter ended March 31, 2026.
“Our strong financial and operational performance this quarter underscores the accelerating demand for our AI-driven diagnostic platform and the immense value of our multimodal data and corresponding AI models,” said Eric Lefkofsky, Founder and CEO of Tempus. “We continue to see strong momentum as we deploy more sophisticated algorithms across our platform, driving 36% revenue growth year-over-year, with particular strength in our Oncology diagnostic business and data and modeling business.”
First Quarter Summary Results
Recent Operational Highlights
First Quarter Financial Results
Three Months Ended March 31,
2026
2025
Change
(in thousands, except percentages and per share amounts)
(unaudited)
Revenue
$
348,116
$
255,737
36.1
%
Gross profit
$
222,041
$
155,203
43.1
%
Loss from operations
$
(84,711
)
$
(68,689
)
23.3
%
Non-GAAP loss from operations
$
(11,580
)
$
(25,777
)
(55.1
)%
Net loss
$
(125,919
)
$
(68,037
)
85.1
%
Non-GAAP net loss
$
(22,612
)
$
(41,561
)
(45.6
)%
Adjusted EBITDA
$
(2,833
)
$
(16,174
)
82.5
%
Net loss per share, basic
$
(0.70
)
$
(0.40
)
75.0
%
Non-GAAP net loss per share, basic
$
(0.13
)
$
(0.24
)
(45.8
)%
Financial Outlook and Guidance
Tempus is increasing full year 2026 revenue guidance to $1.59 billion - $1.60 billion, which represents ~25% annual growth. We continue to expect 2026 Adjusted EBITDA to be ~$65 million.
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, May 5, 2026 after market close at 4:30 p.m. Eastern Time. Interested parties may access details at:
Conference ID: 4294068 Domestic Dial-in Number: (646) 307-1963 International Dial-in Number: (800) 715-9871 Live webcast: https://edge.media-server.com/mmc/p/rv7jv7ti
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.
Tempus Inaugural Investor Day and Webcast Details
Tempus will host its inaugural Investor Day for analysts and institutional investors on Friday, May 29, 2026.
The event will feature comprehensive presentations from several senior Tempus leaders, highlighting key developments across the company's Diagnostics and Data & Applications organizations. The live webcast of management presentations is scheduled to begin at 8:00 a.m. Central Time.
The Investor Day will be broadcast live and can be accessed through the Investor Relations section of the Tempus website under the “News & Events” tab at investors.tempus.com. Institutional investors can request in-person attendance at our Chicago headquarters by emailing [email protected].
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, and amortization of intangibles due to acquisition. Non-GAAP loss from operations is defined as loss from operations, adjusted to exclude (i) the stock-based compensation adjustments, (ii) acquisition-related expenses, and (iii) amortization of intangibles due to acquisition. Non-GAAP net loss is defined as net 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) benefit from income taxes, and (vii) amortization of deferred other income from our IP License Agreement with SB Tempus. Non-GAAP net loss per share is defined as non-GAAP net loss divided by weighted average common shares outstanding, basic and diluted.
Adjusted EBITDA is defined as net loss, adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) 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.
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 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; and Tempus' growth expectations. 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 realize the expected benefits of the acquisition of Paige AI, Ambry Genetics and Deep 6 AI; 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 LOSS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended March 31,
2026
2025
Net revenue
Diagnostics
$
261,098
$
193,804
Data and applications(1)
87,018
61,933
Total net revenue
$
348,116
$
255,737
Cost and operating expenses
Cost of revenues, diagnostics
100,960
84,783
Cost of revenues, data and applications
25,115
15,751
Technology research and development
45,921
33,391
Research and development
48,237
35,874
Selling, general and administrative
212,594
154,627
Total cost and operating expenses
432,827
324,426
Loss from operations
$
(84,711
)
$
(68,689
)
Interest income
3,866
1,813
Interest expense
(14,341
)
(18,003
)
Other expense, net
(27,709
)
(27,455
)
Loss before benefit from income taxes
$
(122,895
)
$
(112,334
)
Benefit from income taxes
62
46,180
Losses from equity method investments
(3,086
)
(1,883
)
Net Loss
$
(125,919
)
$
(68,037
)
Net loss per share
Basic
$
(0.70
)
$
(0.40
)
Diluted
$
(0.71
)
$
(0.40
)
Weighted-average shares outstanding used to compute net loss per share
Basic
178,880
170,506
Diluted
178,964
170,506
Comprehensive Loss, net of tax
Net loss
$
(125,919
)
$
(68,037
)
Foreign currency translation adjustment
(1,810
)
4,598
Comprehensive loss
$
(127,729
)
$
(63,439
)
(1)
Includes related party revenue of $21,823 and $631 for the three months ended March 31, 2026 and 2025, respectively.
Tempus AI, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)
March 31, 2026
December 31, 2025
Assets
Current Assets
Cash and cash equivalents
$
521,170
$
604,787
Accounts receivable(1), net of allowances of $2,872 and $2,755 at March 31, 2026 and December 31, 2025, respectively
308,599
311,170
Inventory
51,831
51,724
Related party asset
11,910
8,785
Prepaid expenses and other current assets
42,530
40,498
Marketable equity securities
117,902
150,211
Total current assets
$
1,053,942
$
1,167,175
Property and equipment, net
88,593
89,156
Goodwill
470,169
470,211
Intangible assets, net
330,587
349,202
Capitalized software, net
9,505
6,051
Investments and other assets
20,530
21,111
Investment in joint venture
81,675
86,557
Related party asset, less current portion
13,090
16,215
Operating lease right-of-use assets
62,306
64,496
Restricted cash
4,694
4,664
Total Assets
$
2,135,091
$
2,274,838
Liabilities, Convertible redeemable preferred stock, and Stockholders' equity
Current Liabilities
Accounts payable
41,023
81,994
Accrued expenses
160,628
155,370
Deferred revenue(2)
72,866
92,673
Deferred other income
15,955
15,955
Other current liabilities
10,248
8,680
Operating lease liabilities
12,639
13,355
Accrued data licensing fees
4,597
4,361
Total current liabilities
$
317,956
$
372,388
Operating lease liabilities, less current portion
72,723
74,272
Convertible promissory note
199,279
208,672
Other long-term liabilities
54,115
56,600
Revolving credit facility
100,000
100,000
Interest payable
15,844
12,393
Long-term debt, net
204,624
202,753
Convertible senior notes, net
729,267
728,078
Deferred other income, less current portion
3,989
7,977
Deferred revenue, less current portion
20,889
20,379
Total Liabilities
$
1,718,686
$
1,783,512
(1)
Includes related party accounts receivable of $15,690 and $6,428 as of March 31, 2026 and December 31, 2025, respectively.
(2)
Includes related party deferred revenue of $403 and $3,938 as of March 31, 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, 20,000,000 shares authorized at March 31, 2026 and December 31, 2025, respectively, no shares issued and outstanding at March 31, 2026 and December 31, 2025
$
—
$
—
Stockholders' equity
Class A Common Stock, $0.0001 par value, 1,000,000,000 shares authorized at March 31, 2026 and December 31, 2025, respectively; 174,360,831 and 173,235,428 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively
17
17
Class B Common Stock, $0.0001 par value, 5,500,000 shares authorized at March 31, 2026 and December 31, 2025, respectively; 5,043,789 issued and outstanding at March 31, 2026 and December 31, 2025, respectively
1
1
Treasury Stock, 183,229 shares at March 31, 2026 and December 31, 2025, respectively, at cost
(6,642
)
(6,642
)
Additional Paid-In Capital
2,945,718
2,892,910
Accumulated Other Comprehensive (Loss) Income
(908
)
902
Accumulated deficit
(2,521,781
)
(2,395,862
)
Total Stockholders' equity
$
416,405
$
491,326
Total Liabilities, Convertible redeemable preferred stock, and Stockholders' equity
$
2,135,091
$
2,274,838
Tempus AI, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended March 31,
2026
2025
Operating activities
Net loss
$
(125,919
)
$
(68,037
)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation
52,706
22,974
Loss on marketable equity securities
32,309
31,805
Loss on disposal of property and equipment
334
—
Deferred income taxes
—
(46,216
)
Losses from equity method investments
3,086
1,883
Amortization of original issue discount
1,448
560
Amortization of deferred financing fees
86
157
Change in fair value of holdback liability
(1,167
)
46
Depreciation and amortization
26,175
20,353
Provision for bad debt expense
636
316
Provision for obsolete inventory
225
—
Non-cash operating lease costs
3,502
2,089
Minimum accretion expense
57
248
PIK interest added to principal
1,674
3,274
Change in assets and liabilities
Accounts receivable(1)
1,990
(45,175
)
Inventory
(332
)
(911
)
Prepaid expenses and other current assets
(2,032
)
(5,798
)
Investments and other assets
433
(3,358
)
Accounts payable
(50,553
)
23,572
Deferred revenue(2)
(19,297
)
(12,377
)
Deferred other income
(3,989
)
(3,988
)
Accrued data licensing fees
(6
)
(250
)
Accrued expenses & other
5,257
(27,606
)
Interest payable
3,677
3,508
Operating lease liabilities
(3,577
)
(2,693
)
Net cash used in operating activities
$
(73,277
)
$
(105,624
)
(1) Includes increase in related party accounts receivable of $9,262 for the three months ended March 31, 2026. Includes decrease in related party accounts receivable of $3,603 for the three months ended March 31, 2025.
(2) Includes decrease in related party deferred revenue of $3,535 for the three months ended March 31, 2026. Includes increase in related party deferred revenue of $300 for the three months ended March 31, 2025.
Tempus AI, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended March 31,
2026
2025
Investing activities
Purchases of property and equipment
$
(8,202
)
$
(2,074
)
Proceeds from sale of marketable equity securities
—
8,316
Business combinations, net of cash acquired (Note 4)
—
(380,762
)
Capitalized software costs
(1,865
)
(1,298
)
Net cash used in investing activities
$
(10,067
)
$
(375,818
)
Financing activities
Payment of deferred offering costs
(45
)
—
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
(226
)
(958
)
Net cash (used in) provided by financing activities
$
(271
)
$
293,042
Effect of foreign exchange rates on cash
$
28
$
(109
)
Net decrease in Cash, Cash Equivalents and Restricted Cash
$
(83,587
)
$
(188,509
)
Cash, cash equivalents and restricted cash, beginning of period
609,451
341,835
Cash, cash equivalents and restricted cash, end of period
$
525,864
$
153,326
Cash, Cash Equivalents and Restricted Cash are Comprised of:
Cash and cash equivalents
$
521,170
$
151,603
Restricted cash and cash equivalents
4,694
1,723
Total cash, cash equivalents and restricted cash
$
525,864
$
153,326
Supplemental disclosure of cash flow information
Cash paid during the year for interest
$
9,322
$
10,849
Cash (received from) paid for income taxes
$
(56
)
$
—
Supplemental disclosure of noncash investing and financing activities
Purchases of property and equipment, accrued but not paid
$
4,592
$
7,003
Redemption of convertible promissory note
$
9,393
$
7,060
Capitalized software costs, accrued but not yet paid
$
2,129
$
—
Deferred offering costs, accrued but not yet paid
$
100
$
—
Class A Common Stock issued in connection with business combinations
$
—
$
310,320
Convertible promissory note principal reset due to amendment
$
—
$
72,488
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 March 31,
2026
2025
Diagnostics revenue
$
261,098
$
193,804
Cost of revenues, diagnostics
100,960
84,783
Gross profit, diagnostics
$
160,138
$
109,021
Stock-based compensation expense
2,122
1,035
Employer payroll tax related to stock-based compensation
334
48
Non-GAAP gross profit, diagnostics
$
162,594
$
110,104
Diagnostics gross margin
61.3
%
56.3
%
Stock-based compensation expense
0.8
%
0.5
%
Employer payroll tax related to stock-based compensation
0.1
%
0.0
%
Non-GAAP gross margin, diagnostics
62.3
%
56.8
%
Data and applications Gross Profit & Gross Margin
Three Months Ended March 31,
2026
2025
Data and applications revenue
$
87,018
$
61,933
Cost of revenues, data and applications
25,115
15,751
Gross profit, data and applications
$
61,903
$
46,182
Stock-based compensation expense
1,553
611
Employer payroll tax related to stock-based compensation
184
44
Non-GAAP gross profit, data and applications
$
63,640
$
46,837
Gross margin, data and applications
71.1
%
74.6
%
Stock-based compensation expense
1.8
%
1.0
%
Employer payroll tax related to stock-based compensation
0.2
%
0.1
%
Non-GAAP gross margin, data and applications
73.1
%
75.6
%
Total Gross Profit & Gross Margin
Three Months Ended March 31,
2026
2025
Net revenue
$
348,116
$
255,737
Cost of revenues
126,075
100,534
Gross profit
$
222,041
$
155,203
Stock-based compensation expense
3,675
1,646
Employer payroll tax related to stock-based compensation
518
91
Non-GAAP gross profit
$
226,234
$
156,940
Gross margin
63.8
%
60.7
%
Stock-based compensation expense
1.1
%
0.6
%
Employer payroll tax related to stock-based compensation
0.1
%
0.0
%
Non-GAAP gross margin
65.0
%
61.4
%
Operating Expenses
Three Months Ended March 31,
2026
2025
Technology research and development
$
45,921
$
33,391
Stock-based compensation expense
9,506
3,319
Employer payroll tax related to stock-based compensation
812
261
Non-GAAP technology research and development
$
35,603
$
29,811
Research and development
$
48,237
$
35,874
Stock-based compensation expense
4,565
1,982
Employer payroll tax related to stock-based compensation
483
176
Non-GAAP research and development
$
43,189
$
33,716
Selling, general and administrative
$
212,594
$
154,627
Stock-based compensation expense
34,960
16,027
Employer payroll tax related to stock-based compensation
1,745
4,725
Acquisition related expenses(1)
(4
)
3,529
Amortization of intangibles due to acquisition
16,871
11,156
Non-GAAP selling, general and administrative
$
159,022
$
119,190
Operating expenses
$
306,752
$
223,892
Stock-based compensation expense
49,031
21,328
Employer payroll tax related to stock-based compensation
3,040
5,162
Acquisition related expenses(1)
(4
)
3,529
Amortization of intangibles due to acquisition
16,871
11,156
Non-GAAP operating expenses
$
237,814
$
182,717
(1)
Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three months ended March 31, 2026 and 2025.
Loss from Operations
Three Months Ended March 31,
2026
2025
Loss from operations
$
(84,711
)
$
(68,689
)
Stock-based compensation expense
52,706
22,974
Employer payroll tax related to stock-based compensation
3,558
5,253
Acquisition related expenses(1)
(4
)
3,529
Amortization of intangibles due to acquisition
16,871
11,156
Non-GAAP loss from operations
$
(11,580
)
$
(25,777
)
(1)
Acquisition related expenses consist of legal, diligence, accounting, and financing costs incurred for acquisitions during the three months ended March 31, 2026 and 2025.
Earnings per Share
Three Months Ended March 31,
2026
2025
Net loss
$
(125,919
)
$
(68,037
)
Fair value changes(1)
31,141
31,850
Stock-based compensation expense
52,706
22,974
Employer payroll tax related to stock-based compensation
3,558
5,253
Acquisition related expenses(2)
(4
)
3,529
Amortization of intangibles due to acquisition
16,871
11,156
Losses from equity method investments
3,086
1,883
Benefit from income taxes
(62
)
(46,180
)
Amortization of technology license
(3,989
)
(3,989
)
Non-GAAP net loss
$
(22,612
)
$
(41,561
)
Non-GAAP net loss per share, basic
$
(0.13
)
$
(0.24
)
Weighted average common shares outstanding, basic
178,880
170,506
(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 months ended March 31, 2026 and 2025.
Adjusted EBITDA
Three Months Ended March 31,
2026
2025
Net loss
$
(125,919
)
$
(68,037
)
Interest income
(3,866
)
(1,813
)
Interest expense
14,341
18,003
Depreciation
7,425
7,883
Amortization
18,750
12,470
Benefit from income taxes
(62
)
(46,180
)
EBITDA
$
(89,331
)
$
(77,674
)
Losses from equity method investments
3,086
1,883
Fair value changes(1)
31,141
31,850
Stock-based compensation expense
52,706
22,974
Employer payroll tax related to stock-based compensation
3,558
5,253
Acquisition related expenses(2)
(4
)
3,529
Amortization of technology license
(3,989
)
(3,989
)
Adjusted EBITDA
$
(2,833
)
$
(16,174
)
(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 of during the three months ended March 31, 2026 and 2025.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260505411869/en/