10-Q · May 5, 2026
Tempus AI, Inc. reported a strong Q1 2026 with revenue of $348.1 million, exceeding consensus estimates of $345.5 million, and reflecting a 36% year-over-year increase. However, the company incurred a net loss of $125.9…
Earnings analysis · 10-Q
TEM earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
Tempus delivered strong third-quarter growth, with revenue up 23.1% year over year to $411.5 million, gross margin rising to 64.8%, and operating losses narrowing to $56.9 million. Diagnostics and Data and applications…
Read full summary
Tempus delivered strong third-quarter growth, with revenue up 23.1% year over year to $411.5 million, gross margin rising to 64.8%, and operating losses narrowing to $56.9 million. Diagnostics and Data and applications both grew, while GAAP net loss improved to $14.9 million, although the result benefited materially from a $42.8 million unrealized securities gain. Cash burn improved year over year and liquidity was substantial at $595.2 million, but the pending $1.5 billion Personalis acquisition, $1.21 billion of convertible-note principal, continuing operating losses and negative operating cash flow remain material risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.08
What stood out
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Revenue growth accelerated
Revenue increased to $411.5 million from $334.2 million year over year, a $77.3 million, or 23.1%, increase. Revenue also rose from $382.0 million in Q2 2026, while management attributed growth to higher clinical test volumes and increased data deliveries.
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Margins continued to improve
Gross margin improved to 64.8% from 62.8% year over year and 64.5% in Q2 2026. Operating margin improved to negative 13.8% from negative 18.3% year over year and negative 19.9% sequentially.
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GAAP loss narrowed materially
GAAP net loss narrowed to $14.9 million, or $0.08 per diluted share, from a $80.0 million loss, or $0.46 per share, in the prior-year quarter. The improvement included $47.1 million of other income, including a $42.8 million unrealized gain on marketable equity securities.
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Diagnostics volumes expanded
Diagnostics revenue grew 20.0% to $303.5 million, with oncology tests increasing to approximately 101,500 from 77,000 and hereditary tests increasing to approximately 143,000 from 140,000.
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Data products gained traction
Data and applications revenue rose 32.9% to $108.1 million. Insights revenue increased to $88.9 million from $69.0 million, while Next revenue increased to $9.6 million from $3.2 million.
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Cash burn improved
Operating cash use improved to $71.6 million from $181.3 million in the first nine months of 2025. Capital expenditures were $23.7 million and capitalized software costs were $12.3 million, while cash and restricted cash ended at $595.2 million.
What to watch
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Personalis closing and funding risk
The proposed Personalis acquisition has an enterprise value of $1.5 billion and may require up to 50% of consideration in cash. The transaction is subject to shareholder approval and other conditions; termination fees are approximately $76.8 million, and Personalis may terminate if Tempus's 15-day volume-weighted average price is below $46.00 per share.
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Convertible debt and dilution
The company issued $750.0 million of 2030 Notes and $460.0 million of 2032 Notes, while 15,550,198 shares issuable upon conversion were excluded from diluted EPS as anti-dilutive. Conversion, refinancing or cash-settlement obligations could pressure liquidity and create shareholder dilution.
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Receivables and reimbursement exposure
Accounts receivable increased to $380.7 million from $311.2 million at December 31, 2025, while operating cash flow for the first nine months was negative $71.6 million. Management identified a $71.8 million increase in receivables as a use of cash and noted that lower reimbursement rates could increase financing needs.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. It states that the company expects additional operating losses in the near term and expects continued high investment in research and development and technology. The company says cash, cash equivalents, marketable equity securities and anticipated operating cash flows should fund requirements for more than twelve months.
Earlier filings 4
10-Q · November 4, 2025
Tempus AI, Inc. reported Q3 2025 results with total revenue of $334.2 million, representing a significant growth from $180.9 million in Q3 2024. Although the company sustained a net loss of $80 million, the improvement…
10-Q · August 8, 2025
Tempus AI, Inc. reported better-than-expected Q2 2025 results with revenues of $314.635 million, exceeding estimates of $298.385 million, and an EPS loss of $-0.22 compared to the consensus estimate of -$0.34. This…
10-Q · May 6, 2025
Tempus AI, Inc. reported strong revenue growth in Q1 2025, achieving $255.7 million, a 75% increase from $145.8 million in Q1 2024, driven by a surge in Genomics and Data services revenues. Despite this growth, the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.