AI-generated · cited to primary sources · not investment advice
Tempus AI, Inc. - Class A Common Stock (TEM) Jun 2025 Filing Analysis
Does management do what it says?
The company has successfully transitioned to a large accelerated filer as indicated on the cover page of the Q1 2026 report. (1 met across 1 tracked commitment)
“Based on the aggregate market value of shares of the Company’s Class A common stock held by non-affiliates as of June 30, 2025, the Company expects to become a “large accelerated filer” and no longer qualify as an emerging growth company as of December 31, 2025.”
See the full cited Management analysis of Tempus AI, Inc. - Class A Common Stock
How durable is the business?
The Genomics segment (formerly Diagnostics) saw massive expansion, primarily driven by the acquisition of Ambry Genetics in February 2025, which contributed $97.3 million in the quarter. Organic oncology test volume also grew from 66,500 to 84,000 tests. (2 expanding)
“Genomics revenue of $241,843 for the three months ended June 30, 2025... an increase of 115%... primarily due to an increase in the number of Oncology tests and the addition of Hereditary tests through the acquisition of Ambry.”
See the full cited Business Model analysis of Tempus AI, Inc. - Class A Common Stock
What could break the thesis?
The risk is stable; while cloud costs rose to $30.4 million for the quarter, management is using principal reductions on a Google note to offset these spends. (1 stable, 2 intensifying)
“The principal amount is automatically reduced each year based on a formula taking into account the aggregate value of the Google Cloud Platform services used by the Company.”
The risk is intensifying due to the issuance of $750 million in new convertible notes in July 2025, significantly increasing the total debt load. (2 intensifying)
“On July 3, 2025, the Company completed the Offering of $750.0 million aggregate principal amount of 0.75% Convertible Senior Notes due 2030.”
See the full cited Risk analysis of Tempus AI, Inc. - Class A Common Stock
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