Total revenue for the quarter ended September 30 rose 84.7 % to $334.2 million, driven by a 117.2 % jump in Genomics revenue to $252.9 million and a 26.1 % increase in Data & Services to $81.3 million. Gross profit climbed 98.4 % to $209.9 million, lifting the gross‑margin to 63.6 % from 59.4 % a year earlier, a result of higher average revenue per test and a more favorable mix of high‑margin services.
Operating loss for the quarter was $22.9 million, a significant improvement from the $61 million loss reported in the original article. Net loss widened slightly to $80 million, reflecting ongoing investment in acquisitions and stock‑based compensation. Non‑GAAP earnings per share were $‑0.11, beating the consensus estimate of $‑0.18 by $0.07, while GAAP EPS of $‑0.46 missed the $‑0.45 estimate by $0.01. The non‑GAAP beat was largely due to tighter cost control and a higher mix of high‑margin services, whereas the GAAP miss reflects the impact of one‑time acquisition costs and higher depreciation.
The quarter marked the first time Tempus AI posted positive adjusted EBITDA, reporting $1.5 million versus a $‑1.5 million loss a year earlier. The improvement stems from a 98.4 % rise in gross profit and disciplined operating expenses, offsetting the net loss. The positive adjusted EBITDA signals that the company’s core AI‑enabled diagnostics platform is generating sustainable cash flow, even as it continues to invest heavily in integration of the Paige.AI and Ambry Genetics acquisitions.
Management raised full‑year 2025 revenue guidance to $1.265 billion, up from the prior $1.2 billion outlook, and forecast Q4 adjusted EBITDA of approximately $20 million. The guidance reflects confidence in continued demand for AI‑driven diagnostics and data services, and the expected synergies from recent acquisitions. The upward revision signals management’s belief that the company’s growth trajectory will accelerate, while the adjusted EBITDA forecast indicates a path to profitability for the full year.
After the announcement, the market reacted with a decline of roughly 4.8 % in after‑hours trading, driven by investor concerns over the widening net loss and the anticipated $5 million quarterly drag from the Paige acquisition. Analysts noted that while revenue and non‑GAAP EPS beat expectations, the persistent net loss and acquisition‑related expenses tempered enthusiasm, underscoring the importance of overall profitability to investors.
CEO Eric Lefkofsky said, “Reaching positive adjusted EBITDA is a milestone that demonstrates the strength of our underlying business. We are now able to slow the rate of reinvestment while maintaining growth, even with the additional drag from Paige.” CFO James Rogers added, “Our average reimbursement per test is $1,600, up $20 sequentially, and we expect to maintain a slightly positive adjusted EBITDA for the year.”
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