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Tempus AI Inc

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Tempus AI Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-12

Snapshot

  • Revenue TTM 1.1B growing 85% YoY vs industry median 7% - 12x faster growth rate signals rapid market capture in AI diagnostics[Total Revenue 1Y Growth]
  • Gross margin 62% TTM with 98% YoY gross profit growth - operating leverage emerging as scale increases[Gross Margin TTM]
  • Tangible book value -330M with goodwill 92% of equity (465M/508M) - balance sheet quality risk if growth stalls[Goodwill]

Watch Triggers

  • Total Revenue 1Y Growth: Falls below 50%Current valuation assumes hyper-growth; deceleration invalidates premium multiple
  • Gross Margin TTM: Falls below 55%Margin compression signals pricing pressure or mix shift away from high-margin genomics
  • Cash and Equivalents: Falls below 400MAt -249M FCF burn, triggers dilutive financing or strategic pivot concerns

Bull Case

Hyper-growth at scale: 85% revenue growth TTM at 1.1B run-rate with 62% gross margins creates clear path to profitability as R&D leverage kicks in

Total Revenue 1Y GrowthGross Margin TTMGross Profit 1Y Growth

656M cash with 442M recent debt issuance provides 2+ years runway at current burn (-249M FCF TTM) to reach scale

Cash and EquivalentsFree Cash Flow TTMNet Long Term Debt Issuance

Bear Case

P/S 11.2x vs industry median 1.7x requires sustained 85%+ growth to justify - any deceleration triggers multiple compression

PS RatioTotal Revenue 1Y Growth

Debt/equity 2.6x with 68M interest expense TTM on -242M operating income - refinancing risk if growth capital markets tighten

Debt to EquityInterest Expense TTMOperating Income TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
45%

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Forward Thesis

Path to profitability within 18-24 months as gross margins scale against fixed R&D base

1-3ymed
  • R&D 290M is 26% of revenue - will decline as % with growth
  • Gross profit grew 98% vs opex grew slower
  • Operating leverage inflection visible in margin trajectory
Gross margin 62% TTM vs -22% operating marginRevenue 3Y CAGR 56% sustaining scaleOperating expense 924M relatively fixed

Valuation Context

Caveats

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Fundamental company data provided by Morningstar, updated daily.

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