Tempus AI, Inc.'s Net Loss Improves 92% on Strong Quarter

For Q2 2025, Tempus AI, Inc. reported total net revenue of $314.6 million, a substantial increase from $166.0 million in Q2 2024. The company's net loss for the quarter was $42.8 million, a significant improvement compared to a net loss of $552.2 million in the same period last year. Revenue exceeded the analyst estimate of $297.8 million, while the reported EPS of -$0.25 was higher than the analyst estimate of -$0.23.

Genomics Segment Drives Revenue Growth

The increase in revenue was primarily driven by growth in the Genomics segment, which saw revenue rise by 115% to $241.8 million in Q2 2025, up from $112.3 million in Q2 2024. This growth was largely due to an increase in Oncology tests and the addition of Hereditary tests following the acquisition of Ambry Genetics Corporation in February 2025. Oncology tests increased from approximately 66,500 to 84,000, with average revenue per test rising to $1,580, driven by increased Medicare reimbursement rates. Hereditary tests contributed approximately 128,000 tests, adding $97.3 million to Genomics revenue.

Data and Services Expansion

Data and services revenue also increased by 36% to $72.8 million in Q2 2025, compared to $53.6 million in Q2 2024. This growth was primarily due to increased demand for Insights products, with a notable contribution from the Pathos Foundation Model agreement, reflecting continued expansion within the existing customer base.

Strategic Investments and Acquisitions Impact Operating Expenses

Total cost and operating expenses decreased significantly to $376.4 million in Q2 2025, down from $699.5 million in Q2 2024. This reduction was largely attributable to a substantial decrease in stock-based compensation expense, particularly related to Restricted Stock Units (RSUs) where performance-based vesting conditions were met in connection with the company's IPO in the prior period. However, personnel-related costs and amortization of intangibles increased due to the Ambry acquisition. Research and development expenses decreased by 39%, while selling, general, and administrative expenses fell by 61%.

Other Financial Highlights

Other income (expense), net, saw a significant positive swing, reaching $41.7 million in Q2 2025 compared to a negative $7.0 million in Q2 2024. This change was driven by an increase in income from unrealized gains on marketable equity securities and the Intellectual Property License Agreement with SB Tempus. Interest expense increased to $21.6 million from $13.3 million due to compounding interest on the Second Amended Note and additional debt facilities.