The Filing Desk

Tempus AI

TEM · Nasdaq · Health Care · Financials, fiscal 2022 to 2025

TEM · Last close · October 26, 2026
$67.16
Value Tempus AI yourself

Tempus AI's revenue rose 83.4% to $1.3 billion in fiscal 2025. Its operating margin was −19.9%, up from −99.7% a year earlier. Free cash flow was −$239 million. It paid out $3 million in dividends and buybacks. The diluted share count rose 45.4%.

Tempus AI, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 24, 2026 · 0001193125-26-066961 Updated
Revenue
$1.3B
83.4%
Operating margin
−19.9%
79.8 pts
Net income
−$245M
 
Free cash flow
−$239M
 
Return on equity
−89.5%
 
Market cap
$13M
Oct 26 close
P/E
—
Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Tempus AI does

Tempus AI runs medical laboratories and a large database of patient health data, mostly in cancer care in the United States. Doctors order its genetic and other lab tests to help choose treatments for patients, and Tempus links the results to patients' medical records and uses artificial intelligence, or AI, to put them in context. It gets data through connections with more than 5,000 hospital and clinic sites that order its tests, and strips out personal details before using it in its other products.

Tempus has two product lines. Diagnostics, its testing business for cancer treatment and inherited cancer risk, brought in $955.4 million of its $1,271.8 million in 2025 revenue. Data and applications licenses that de-identified data to drug companies for research, helps them find patients for clinical trials, and sells AI tools that flag patients who may need care. It names Foundation Medicine, Caris Life Sciences, Guardant Health and Natera as testing competitors, and Flatiron Health, IQVIA and ConcertAI as data competitors.

Tempus had more than 3,800 employees at the end of 2025, with its headquarters in Chicago. It bought Ambry Genetics, a maker of tests for inherited cancer risk, in February 2025, and Paige, a company that uses AI to read pathology slides, in August 2025. It reported a net loss of $245.0 million for 2025.

Its biggest risks, as it describes them

  • A history of losses: it may keep losing money and need to raise more capital.
  • Its reliance on continued access to patient data, and its ability to earn money from it.
  • Insurers and government health programs that may not cover its tests or pay enough for them.
  • Changing rules on lab tests and on health data privacy that could raise its costs or limit its products.
  • Strong competition and fast-changing technology that could make its tests and tools less useful.
From Tempus AI's annual report on Form 10-K, filed February 24, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue
US$ billions, fiscal years
Margins
Percent of revenue
GrossOperatingNetFree cash flow

Net income and earnings per share

Tempus AI lost money in fiscal 2025: a net loss of $245 million.

Net income
US$ billions, fiscal years; loss years in red.
Diluted earnings per share
US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity
Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.
Return on capitalReturn on equity

Cash flow

Free cash flow
US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks
US$ billions, cash paid in each fiscal year
DividendsShare buybacks
Diluted share count
Weighted-average diluted shares, millions

Valuation

Two ways to value Tempus AI yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Tempus AI's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

The example scenarios need a positive starting cash flow. Tempus AI's free cash flow was negative in fiscal 2025 and over the last three years, and so is cash from operations minus depreciation. You can still enter your own figures in the calculator.

From the filings
Cash from operations minus capital spending in fiscal 2025.
Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.
Weighted-average diluted shares in fiscal 2025.
Your assumptions
Start from
Fitted to Tempus AI's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 10% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 8% discount rate.
Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.
The yearly return an investor wants for the risk. A higher rate gives a lower value.
Value per share on these assumptions
—
—
Last close, October 26, 2026
$67.16
Value on these assumptions, against the last close
—

Cash flows in years 1 to 10, valued today
—
Everything after year 10, valued today
—
Plus net cash
—
Share of value from after year 10
—
Projected free cash flow
US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.
Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.
How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Tempus AI's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year endFY22FY23FY24FY25
Cash and short-term investments303166341605
Debt incl. finance leases—193168209
Net debt (negative means net cash)—27−173−396
Net debt to EBITDA————
Debt to equity——3.0x0.4x
Interest coverage−12.1x−4.2x−12.9x−3.6x
Current ratio—1.5x2.3x3.1x
Quick ratio—1.4x2.2x3.0x
US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Tempus AI shares on the open market, and 11 insiders sold $220.9 million, $206.2 million of it under trading plans set up in advance.

DateInsiderTradeSharesPriceValueFiling
Sep 25, 2026Thomas Edward SchoenherrCEO, DiagnosticsSold plan10,281$85.00$873,885Form 4
Sep 22, 2026Eric P LefkofskyCEO and Chairman, Director, 10% ownerSold plan250,000$77.47$19.4 millionForm 4
Sep 17, 2026Eric P LefkofskyCEO and Chairman, Director, 10% ownerSold plan200,000$80.57$16.1 millionForm 4
Sep 17, 2026Ryan M BartolucciChief Accounting OfficerSold plan7,062$75.00$529,650Form 4
Sep 17, 2026Andrew PolovinEVP, Chief Legal OfficerSold plan2,951$75.00$221,325Form 4
Sep 16, 2026Ryan FukushimaCEO, DataSold plan700$70.00$49,000Form 4
Sep 1, 2026Ryan FukushimaCEO, DataSold plan30,846$62.71$1.9 millionForm 4
Sep 1, 2026Jennifer A DoudnaDirectorSold plan676$65.55$44,312Form 4
Sep 1, 2026David R EpsteinDirectorSold plan250$65.55$16,388Form 4
Aug 28, 2026Nadja WestDirectorSold plan3,000$69.00$207,000Form 4
Aug 25, 2026Eric P LefkofskyCEO and Chairman, Director, 10% ownerSold plan238,152$68.39$16.3 millionForm 4
Aug 25, 2026Eric P LefkofskyCEO and Chairman, Director, 10% ownerSold plan11,848$69.87$827,857Form 4
The latest 12 of 77 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

TestFY23FY24FY25
Net income is positive—FailFail
Cash from operations is positiveFailFailFail
Return on assets rose——Pass
Cash from operations exceeds net incomeFailPassPass
Debt fell relative to assets——Pass
Current ratio rose—PassPass
Share count didn't riseFailFailFail
Gross margin rose———
Revenue rose relative to assets——Pass
F-score——5 of 8
Accruals ratio—−69.4%−1.7%
The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Tempus AI side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

CompanyYearRevenue growthOperating marginFree cash flow marginReturn on capitalNet debt to EBITDAF-scoreCompare
Tempus AIFY2583.4%−19.9%−18.8%——5
Sotera HealthFY255.7%—12.8%6.7%—7Compare
Addus HomeCareFY2523.2%9.7%7.3%9.4%0.2x5Compare
Lifestance HealthFY2513.8%1.7%7.7%1.2%0.5x7Compare
CorVelFY267.0%—11.5%———Compare
Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

4 years of figures

Fiscal yearFY22FY23FY24FY25
Income statement
Revenue3215326931,272
Revenue growth—65.8%30.4%83.4%
Gross profit————
Research and development8390149173
Operating income−265−196−691−253
Net income−290−214−706−245
Diluted EPS (US$)−5.30−4.20−6.23−1.41
Diluted shares (millions)0000
Cash flow
Cash from operations−168−214−189−218
Capital expenditure18352221
Free cash flow−187−249−211−239
Dividends paid6660
Share buybacks0403
Acquisitions4060377
Stock-based compensation00534125
Balance sheet at fiscal year end
Cash and short-term investments303166341605
Debt incl. finance leases—193168209
Total assets—5649262,275
Total liabilities—8418701,784
Shareholders' equity−1,129−1,38256491
Margins and ratios
Gross margin————
Operating margin−82.8%−36.9%−99.7%−19.9%
Net margin−90.4%−40.3%−101.8%−19.3%
Free cash flow margin−58.2%−46.8%−30.4%−18.8%
Return on capital————
Return on equity———−89.5%
Return on assets——−94.7%−15.3%
Net debt to EBITDA————
US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)
Source: Tempus AI's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Tempus AI.