Tempus AI Reports Strong Q4 & FY2025 Results, Guides for Positive $65M Adjusted EBITDA in 2026
Summary
Tempus AI reported strong Q4 and full-year 2025 financial results, with revenue up 83% year-over-year and Adjusted EBITDA turning positive in Q4. The company provided optimistic 2026 guidance, projecting $1.59 billion in revenue and $65 million in positive Adjusted EBITDA.
Key Events
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Strong Q4 and Full Year 2025 Revenue Growth
Tempus AI reported fourth-quarter revenue of $367.2 million, an 83.0% increase year-over-year, with full-year 2025 revenue reaching $1.3 billion, also up 83.4% year-over-year. Diagnostics revenue grew 121.6% in Q4, and Data and Applications revenue increased 25.1%.
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Significant Adjusted EBITDA Improvement
The company achieved positive Adjusted EBITDA of $12.9 million in Q4 2025, a substantial improvement from a ($7.8 million) loss in Q4 2024. For the full year 2025, Adjusted EBITDA improved to ($7.4 million) from ($104.7 million) in 2024, nearing breakeven.
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Positive 2026 Financial Guidance
Tempus AI provided full-year 2026 revenue guidance of approximately $1.59 billion, representing about 25% annual growth. Crucially, the company expects full-year 2026 Adjusted EBITDA to be approximately $65 million, signaling a strong move into profitability.
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Robust Cash and Contract Value Position
As of December 31, 2025, Tempus AI held $759.7 million in cash and marketable securities. The company also ended the year with over $1.1 billion in Total Remaining Contract Value and a 126% Net Revenue Retention rate.
Analysis
Tempus AI, Inc. delivered robust financial results for Q4 and the full year 2025, highlighted by significant revenue growth and a positive shift in Adjusted EBITDA. The company's Q4 Adjusted EBITDA turned positive, and its full-year 2025 Adjusted EBITDA dramatically improved to near breakeven. The most impactful news is the 2026 guidance, projecting $1.59 billion in revenue and a substantial positive Adjusted EBITDA of $65 million. This outlook signals a strong operational turnaround and a clear path to profitability, which is a critical positive development for investor confidence and the company's long-term financial health. The strong cash position further supports future growth initiatives.
At the time of this filing, TEM was trading at $58.34 on NASDAQ in the Technology sector, with a market capitalization of approximately $10.3B. The 52-week trading range was $36.22 to $104.32. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.