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Tempus AI (TEM): Where Your DNA Meets Wall Street Drama
If you thought your genome was boring, Tempus AI (NASDAQ: TEM) would like to have a word. Founded in 2015 by Eric Lefkofsky (yes, the Groupon guy who went from “half-off pizza” to “full-price oncology data”), Tempus has one mission: turn healthcare into a big data, AI-powered juggernaut.
Tempus isn’t just a biotech. It isn’t just an AI company. It’s the weird lovechild of a sequencing lab, a software startup, and a Wall Street growth stock. Which is why investors keep watching TEM like it’s the season finale of a medical drama.
What Does Tempus Actually Do?
Tempus is in the precision medicine business. That’s a fancy way of saying: “We take your DNA, clinical notes, and medical images, run them through our AI engines, and spit out answers your doctor actually wants.”
They make money in two big ways:
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Diagnostics & Sequencing Services – Hospitals, labs, and research centers pay Tempus to run next-generation sequencing, molecular profiling, and genotyping tests. Basically, if you’re worried your tumor has secrets, Tempus will decode it.
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Data & Analytics – The real juice. Tempus runs a giant linked database of clinical, molecular, and imaging data. Drug companies, researchers, and clinicians can license access and run analytics through Tempus’s platform. Think Bloomberg Terminal, but instead of bond yields, it’s your genes.
The Money Math: Revenue, Losses, and “Almost Profitable”
Tempus has been growing like crazy—because nothing sells quite like hope and machine learning.
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2023 revenue: about $532 million (up from $321 million in 2022).
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Q2 2025 revenue: $314.6 million, up 89.6% year-over-year.
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Gross profit: $195 million in that same quarter, a 158% jump.
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Net loss: ($42.8M), which sounds bad until you remember they lost over half a billion a year ago.
They even raised their 2025 revenue guidance to $1.26 billion and now expect to be adjusted EBITDA positive. Translation: the “losing money” part is shrinking, and they might soon cross into the magical realm of “actually making money.”
For context: trailing twelve-month revenue sits near $952 million with gross profit at $578 million. The losses are still there, but they’re slimming down faster than your buddy who suddenly “found CrossFit.”
Stock Snapshot: TEM on the Ticker
As of late August 2025, TEM trades around $76 a share. It’s been a classic growth stock ride—equal parts exhilarating and nausea-inducing. But with nearly 90% YoY revenue growth, analysts are less focused on the bottom line and more on how big this can get before anyone else catches up.
Why Investors Care
Here’s why TEM has captivated Wall Street (and biotech nerds everywhere):
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Explosive Growth – Few companies outside of AI chipmakers are clocking near-90% revenue growth.
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Operating Leverage – Expenses aren’t scaling as fast as sales, meaning break-even is finally in sight.
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Massive Market – Healthcare is a trillion-dollar sandbox, and precision medicine is one of the fastest-growing corners.
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Strategic Deals – They acquired Ambry Genetics for $600M in 2024 and launched a Japanese joint venture with SoftBank. That’s global ambition, not regional tinkering.
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Star Power – Board members include Nobel laureate Jennifer Doudna (CRISPR pioneer) and former FDA commissioner Scott Gottlieb.
The Fine Print (a.k.a. Investor Risks)
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Still Unprofitable – Net losses persist, though the hole is shrinking.
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Capital Hungry – Sequencing labs and AI infrastructure don’t build themselves. Expect continued spending.
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Crowded Space – AI + healthcare is hot. Competitors are circling, and proprietary data is the moat Tempus must defend.
The Takeaway
Tempus AI (TEM) is betting that the future of medicine is data-driven, algorithm-assisted, and AI-interpreted. For now, the financials say “high growth, almost profitable, and definitely expensive to run.” For investors, TEM is the kind of stock that could either become the “Google of genomics” or remind us that not every science experiment belongs on the NASDAQ.
But hey—if your DNA can predict your risk of cancer, maybe your portfolio should predict your risk of missing the next big AI-biotech wave.
DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.
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