Tempus AI (TEM, C+, Halal) is a healthcare technology company that utilizes artificial intelligence and one of the world’s largest structured, multimodal data libraries to advance precision medicine. It provides next-generation sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing to healthcare providers, pharmaceutical companies, biotechnology companies, researchers, and other third parties. The company's market capitalization is $10.64 billion, with Tempus AI stock currently priced at $53.25.

Business analysis

The company reported total revenue of $1.27 billion for the full year 2025 in the recent Tempus AI 2025 results. The main portion came from Diagnostics, accounting for 75% of total revenue, while the remaining 25% was generated by the data and applications segment. The Diagnostics segment primarily provides advanced molecular and genomic testing to help physicians personalize patient care.

The company’s main revenue driver is the Diagnostics segment, which generates revenue every time a physician orders a test. Tempus delivered around 212,000 tests per quarter, with an average of around $760 per test. In addition, the recent Ambry Genetics acquisition helped increase this segment’s revenue by expanding its menu to include hereditary cancer and carrier screening (BBAE). Tempus is also connected to over 5,500 hospitals and roughly 50% of all U.S. oncologists, which has led to a high-volume stream of diagnostic orders (Tempus).

The data and applications segment represents the “AI” and software-driven side of the company. The main drivers of this segment are Insights (linked clinical, molecular, and imaging de-identified data), TIME (trial matching), and NEXT (identifies and minimizes care gaps) (Nanalyze).

Financial analysis

Tempus AI recorded negative net income and EBITDA because it is in a “hyper-growth” phase, with a focus on massive reinvestment in R&D, market expansion, and acquisitions. In 2024, the company’s loss was the highest among the years, driven by non-cash expenses that significantly inflated its net loss. The company also spends hundreds of millions annually to build its AI models, while there was an increase in operational expenses due to the acquisition of several companies, including Ambry Genetics, Paige AI, and OneOme.

By contrast, these figures decreased in 2025 because of increases in Diagnostics, data partnerships, and other factors. In 2025, the company’s revenue surged about 83.4% to $1.27 billion, driven by the acquisition of Ambry Genetics, which added significant testing volume (Tempus).

Earnings History

Even though the TEM earnings beat market expectations, they remained negative over the last year. As Tempus AI is a high-growth technology company that prioritizes reinvestment over immediate net profit, it has experienced consistent net losses over the years. In 2024, Tempus recorded a massive $534.1 million in SBC and related payroll taxes, while this expense decreased to $136.3 million (Biospace ). In addition, the company invested heavily in R&D to maintain its competitive edge in AI and genomics. This also led to increased expenses and net losses. Another reason is that the acquisition of Ambry increased amortization of intangible assets and operational overhead, despite increasing the company’s revenue.

Valuation analysis

In 2024, the company’s D/E ratio was high because it relied on convertible debt and private loans to fund its massive R&D and lab infrastructure. Tempus also carried significant debt, including a large term loan and convertible loans, before going public. The ratio decreased significantly in 2025 thanks to IPO capital inflow, debt conversion, and the Ambry Genetics deal. When the company went public in 2024, it raised over $400 million in cash (Fierce Healthcare). This equity injection balanced its debt levels.

When it comes to liquidity, Tempus AI maintains a strong current ratio of 3.13 according to the fiscal year 2025 annual report. This means the company has more than three times its current assets to cover its short-term liabilities, indicating high liquidity. According to the FY 2025 annual report, the company ended 2025 with $759.6 million in cash and marketable securities, and its short-term assets exceeded its short-term liabilities. As a result, its current ratio increased in 2025.

It is clear that the company generated net losses over the period despite maintaining a large asset base. In addition, total assets increased in 2024, while one of the highest net losses was recorded. These negative losses and ratios may concern investors, despite the company's improvement in 2025.

Risks

Several risks should be considered when deciding on the company:

• Tempus AI is currently facing legal challenges regarding the Illinois Genetic Information Privacy Act. It is suggested that acquiring databases such as Ambry Genetics without explicit new consent could result in massive statutory damages (JDSPURA).
• In addition, if AI models are trained on limited data, bias in results for particular patient populations could lead to errors or loss of trust among physicians.
• Founder Eric Lefkofsky holds more than 70% of the voting power through special shares. This implies that the influence of the company’s public investors is negligible (SeekingAlpha).

Conclusion

Tempus AI has a strong revenue growth trend, driven by its expanding Diagnostics business and strategic acquisitions, including Ambry Genetics. The company still faces net losses due to its high reinvestments in R&D and expansion. The company's improving financial profile, strong liquidity, and data-driven platform suggest a promising future for Tempus. Profitability issues, legal issues, and voting control of the company are other factors investors looking into when considering healthcare AI stocks and Shariah-compliant stocks TEM should consider.

Sources

1. Musaffa

2. BBAE

3. Tempus

4. Nanalyze

5. Tempus

6. BioSpace

7. Fierce Healthcare

8. JDSUPRA

9. SeekingAlpha