Tempus AI | 10-K: FY2025 Annual Report

Tempus, a healthcare technology company specializing in AI-enabled precision medicine, reported revenue of $1.27B for fiscal year 2025, marking an 83% YoY increase. The company's Diagnostics segment generated $955.4M in revenue, while Data/Applications contributed $316.4M. Despite growth, the company recorded a net loss of $245M, with cash and equivalents standing at $609.5M at year-end.The company strengthened its market position through strategic acquisitions, including Ambry Genetics ($692.3M) and Paige.AI ($101.5M). Major partnerships were established with pharmaceutical giants, securing commitments from AstraZeneca ($220M), GSK ($180M), and Recursion ($160M). Additionally, Tempus expanded into the Japanese market through a joint venture with SoftBank and raised $750M through convertible senior notes.Management highlighted improved gross margins driven by increased test volumes and higher reimbursement rates, with oncology NGS test reimbursement reaching $1,600 and hereditary testing averaging $770 per test. However, the company faces ongoing challenges including continued operating losses, regulatory complexities, and cybersecurity risks in the healthcare/AI sector.

Tempus, a healthcare technology company specializing in AI-enabled precision medicine, reported revenue of $1.27B for fiscal year 2025, marking an 83% YoY increase. The company's Diagnostics segment generated $955.4M in revenue, while Data/Applications contributed $316.4M. Despite growth, the company recorded a net loss of $245M, with cash and equivalents standing at $609.5M at year-end.The company strengthened its market position through strategic acquisitions, including Ambry Genetics ($692.3M) and Paige.AI ($101.5M). Major partnerships were established with pharmaceutical giants, securing commitments from AstraZeneca ($220M), GSK ($180M), and Recursion ($160M). Additionally, Tempus expanded into the Japanese market through a joint venture with SoftBank and raised $750M through convertible senior notes.Management highlighted improved gross margins driven by increased test volumes and higher reimbursement rates, with oncology NGS test reimbursement reaching $1,600 and hereditary testing averaging $770 per test. However, the company faces ongoing challenges including continued operating losses, regulatory complexities, and cybersecurity risks in the healthcare/AI sector.