Tempus AI, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $411.5 million, a 23% increase year-over-year compared to $334.2 million in Q3 2025.
• Gross profit increased 27% to $266.7 million in Q3 2026, compared to $209.9 million in Q3 2025.
• Net loss was $14.9 million for Q3 2026, a significant improvement from a net loss of $80.0 million in Q3 2025.
• Adjusted EBITDA was $25.6 million for Q3 2026, compared to $1.5 million in Q3 2025.
• The company ended the quarter with $854.4 million in cash and marketable securities.
• For the nine months ended September 30, 2026, total net revenue was $1.14 billion, compared to $904.6 million in the same period of 2025.
• Net loss for the nine months ended September 30, 2026, was $135.1 million, compared to $190.9 million in the prior year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $30.8 million, compared to a loss of $20.3 million in the prior year period.
• Stock-based compensation expense was $50.8 million for Q3 2026, compared to $33.9 million in Q3 2025.
• Unrealized gains on marketable securities were $42.8 million in Q3 2026.

Guidance and Future Outlook:

• Tempus increased its full-year 2026 revenue guidance to a range of $1.60 billion to $1.605 billion, representing approximately 25% annual growth.
• The company expects full-year 2026 Adjusted EBITDA to be approximately $65 million.
• Management anticipates continued momentum in unit growth and data licensing bookings.

Business Segments and Product Lines:

• Diagnostics revenue was $303.5 million, representing 20% growth, driven by a 32% increase in Oncology volume.
• Hereditary revenue growth was 3%, partially offsetting the strong Oncology performance.
• Data and Applications revenue was $108.1 million, representing 33% growth.
• Insights revenue within Data and Applications grew 29%.
• Minimal Residual Disease (MRD) volume reached approximately 12,000 tests, a 300% increase year-over-year.
• Tempus received two 510(k) clearances from the FDA for Tempus ECG-PH and ECG-MR, expanding its non-invasive AI cardiology footprint.
• Tempus announced an initiative to build a research platform containing 100,000 whole genomes linked to longitudinal clinical information over the next several years.

Market and Competitive Landscape:

• Tempus data licensing bookings exceeded $550 million year-to-date as of October 2026.
• The company highlighted its best-in-class diagnostic platform as a key differentiator against competitors.
• Strategic collaborations with BMS, Merck, and Moderna indicate strong market demand for Tempus' data and AI capabilities in oncology and personalized medicine.

Risks and Challenges:

• The press release notes forward-looking statements involve risks including the ability to consummate the acquisition of Personalis, competition, and evolving regulations in the AI space.
• Risks include the ability to attract and retain qualified team members, maintain intellectual property, and manage growth expenses.
• The company does not provide guidance for net loss, noting that components such as changes in fair value of marketable securities are outside its control and could significantly impact future results.

Management Commentary and Tone:

• CEO Eric Lefkofsky described Q3 as another record quarter, citing accelerating unit growth in oncology and increasing momentum in Data & Applications.
• Management stated that results reinforce the durability of their model and the value of their diagnostic platform in enhancing data and AI offerings.
• The tone is confident, emphasizing quarter-over-quarter performance and the expansion of the company's ecosystem.

Other Key Points:

• Tempus announced a multi-year strategic collaboration with Merck and Moderna to support the commercialization of their individualized neoantigen therapy (INT) class of drugs.
• In October, Tempus announced a strategic collaboration with BMS to directly license oncology data and models for up to $137.5 million over a five-year term.
• BMS and Pathos are also licensing data for patients with Alzheimer's or dementia for $55 million over a five-year term.
• Tempus cleared regulatory review of the pending acquisition of Personalis, with a shareholder meeting planned for November 30, 2026.
• The company repaid its revolving credit facility, which had a balance of $100 million as of December 31, 2025, reducing it to zero by September 30, 2026.
• Convertible senior notes increased to $1.17 billion as of September 30, 2026, from $728.1 million as of December 31, 2025.
• Deferred revenue decreased to $85.9 million from $92.7 million year-end 2025.