TEM

Tempus AI pairs a fast-scaling diagnostics and genomic-data business with an AI platform for precision medicine, and the top line is exploding — FY2025 revenue grew 83.4% to $1.27B, nearly quadruple FY2022's $321M. The commercial footprint is genuine: per the 10-K, its offerings have been used by 8,500+ physicians and 250+ biotech companies, including 19 of the 20 largest pharma firms. Reimbursement is also improving, with average oncology NGS reimbursement rising to ~$1,600 (from $1,510). This is a real, differentiated business riding the secular shift to data-driven oncology.

But it is not yet investable on fundamentals for a conservative investor. The company lost $245M in FY2025 (net margin -19.3%, ROE -49.9%) and burned $218M of operating cash — cash burn that actually worsened 15.4% year over year despite the revenue surge. R&D and technology investment remain heavy (R&D $173M) and management explicitly expects to 'maintain high levels of investment over the coming years,' so profitability is not imminent. The balance sheet is stretched for a pre-profit company: liabilities of $1.78B against $491M equity (3.63x), and an accumulated deficit of -$2.40B. Liquidity is adequate but finite — $605M cash against the current ~$218M annual burn gives a runway of only a couple of years absent improvement or new financing.