TEMPUS AI INC (NASDAQ:TEM) Beats Q2 2025 Revenue and Earnings Estimates, Stock Surges 8.7% in Pre-Market Trading

TEMPUS AI INC (NASDAQ:TEM) reported its second-quarter 2025 financial results, delivering revenue and earnings that exceeded analyst expectations. The company posted revenue of $314.6 million, a 89.6% year-over-year increase, surpassing the consensus estimate of $299.8 million. Adjusted earnings per share (EPS) came in at -$0.22, beating the estimated -$0.26.

Key Financial Highlights

• Revenue Growth: Genomics revenue surged 115.3% year-over-year to $241.8 million, driven by strong volume growth in oncology (26%) and hereditary testing (32%). Data and services revenue grew 35.7% to $72.8 million.
• Profitability Improvements: Gross profit increased 158.3% to $195.0 million, while adjusted EBITDA improved to -$5.6 million from -$31.2 million in Q2 2024.
• Balance Sheet Strength: The company ended the quarter with $293.0 million in cash and marketable securities, up ~$70 million from the prior quarter. It also issued $750 million in convertible senior notes to optimize its capital structure.

Market Reaction

The stock is up 8.7% in pre-market trading, reflecting investor optimism around the earnings beat and accelerating revenue growth. Over the past month, shares had declined slightly (-1.4%), but the strong quarterly performance appears to be reversing that trend.

Outlook vs. Analyst Estimates

Tempus raised its full-year 2025 revenue guidance to $1.26 billion, aligning closely with the analyst consensus of $1.259 billion. The company also expects positive adjusted EBITDA of $5 million, a $110 million improvement over 2024. For Q3 2025, analysts project revenue of $330.8 million and EPS of -$0.17, suggesting continued sequential growth.

Operational Highlights

• Expanded AI-powered clinical tools, including the Tempus Next™ care pathway platform and Tempus One™ clinical assistant.
• Launched Tempus xM™, a liquid biopsy assay for immunotherapy monitoring.
• Connected to over 40 million clinical patient records, with a database exceeding 350 petabytes.

View more earnings estimates and historical data for TEMPUS AI INC here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.