📊 TEM Key Takeaways
Is Tempus AI, Inc. (TEM) a Good Investment?
Tempus AI demonstrates exceptional revenue growth of 83.4% YoY and a strengthening profitability trajectory with net losses improving 67.2% year-over-year, supported by a solid balance sheet with $604.8M in cash and zero long-term debt. However, the company remains deeply unprofitable with -$245M net income and concerning negative free cash flow of -$239.1M, indicating material cash burn that requires demonstration of a clear path to positive cash generation before representing a compelling investment.
Why Buy Tempus AI, Inc. Stock? TEM Key Strengths
- Exceptional revenue growth at 83.4% YoY, indicating strong market demand and scaling ability
- Improving loss trajectory with net income loss contracting 67.2% YoY, suggesting operational leverage emerging
- Fortress balance sheet with $604.8M cash, zero long-term debt, and strong liquidity ratios (3.13x current ratio, 3.00x quick ratio)
TEM Stock Risks: Tempus AI, Inc. Investment Risks
- Persistent unprofitability with -$245M net income and -$252.9M operating loss demonstrates inability to convert revenue growth to earnings
- Negative free cash flow of -$239.1M indicates cash burn despite revenue growth; at current burn rate, cash reserves would deplete within 2-3 years if trajectory does not improve
- No gross profit margin disclosed and negative operating margin of -19.9% raise concerns about unit economics and whether the business model can achieve sustainable profitability
- Negative ROE (-49.9%) and ROA (-10.8%) indicate value destruction, showing invested capital is not generating positive returns
Key Metrics to Watch
- Operating cash flow trajectory toward positive; must reverse from -$218.1M burn
- Gross margin expansion and path to operating margin breakeven, critical for assessing unit economics
- Net income progression toward profitability; current 67.2% YoY improvement must sustain to reach positive earnings
- Cash burn rate and remaining runway; monitor monthly cash consumption relative to $604.8M reserve
Tempus AI, Inc. (TEM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.13x current ratio provides a solid financial cushion.
TEM Profit Margin, ROE & Profitability Analysis
TEM vs Technology Sector: How Tempus AI, Inc. Compares
How Tempus AI, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Tempus AI, Inc. Stock Overvalued? TEM Valuation Analysis 2026
Based on fundamental analysis, Tempus AI, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Tempus AI, Inc. Balance Sheet: TEM Debt, Cash & Liquidity
TEM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Tempus AI, Inc.'s revenue has grown significantly by 83% over the 5-year period, indicating strong business expansion. The most recent EPS of $-4.20 indicates the company is currently unprofitable.
TEM Revenue Growth, EPS Growth & YoY Performance
TEM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $180.9M | -$75.8M | $-0.46 |
| Q2 2025 | $166.0M | -$42.8M | $-0.25 |
| Q1 2025 | $145.8M | -$64.7M | $-0.40 |
| Q3 2024 | $136.1M | -$53.4M | $-0.46 |
| Q2 2024 | $132.4M | -$55.8M | $-1.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Tempus AI, Inc. Dividends, Buybacks & Capital Allocation
TEM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Tempus AI, Inc. (CIK: 0001717115)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TEM
What is the AI rating for TEM?
Tempus AI, Inc. (TEM) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TEM's key strengths?
Claude: Exceptional revenue growth at 83.4% YoY, indicating strong market demand and scaling ability. Improving loss trajectory with net income loss contracting 67.2% YoY, suggesting operational leverage emerging.
What are the risks of investing in TEM?
Claude: Persistent unprofitability with -$245M net income and -$252.9M operating loss demonstrates inability to convert revenue growth to earnings. Negative free cash flow of -$239.1M indicates cash burn despite revenue growth; at current burn rate, cash reserves would deplete within 2-3 years if trajectory does not improve.
What is TEM's revenue and growth?
Tempus AI, Inc. reported revenue of $1.3B.
Does TEM pay dividends?
Tempus AI, Inc. does not currently pay dividends.
Where can I find TEM SEC filings?
Official SEC filings for Tempus AI, Inc. (CIK: 0001717115) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TEM's EPS?
Tempus AI, Inc. has a diluted EPS of $-1.41.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TEM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Tempus AI, Inc. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TEM stock overvalued or undervalued?
Valuation metrics for TEM: ROE of -49.9% (sector avg: 22%), net margin of -19.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy TEM stock in 2026?
Our dual AI analysis gives Tempus AI, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TEM's free cash flow?
Tempus AI, Inc.'s operating cash flow is $-218.1M, with capital expenditures of $21.0M. FCF margin is -18.8%.
How does TEM compare to other Technology stocks?
Vs Technology sector averages: Net margin -19.3% (avg: 18%), ROE -49.9% (avg: 22%), current ratio 3.13 (avg: 2.5).