Breaking Down Tempus AI, Inc. Financial Health: Key Insights for Investors

Tempus AI, Inc. began in Chicago in 2015 after founder Eric Lefkofsky's personal drive to transform cancer care, and has since scaled into a public, data-driven healthcare platform that went public in June 2024-raising about $411 million and trading under the ticker TEM with a post-IPO valuation north of $6 billion; strategic moves include a Japan joint venture with SoftBank, a $600 million acquisition of Ambry Genetics in November 2024, and an investor base bolstered by SoftBank, Baillie Gifford, NEA and others, while advisory voices like Jennifer Doudna and Scott Gottlieb steer strategy as Tempus leverages multimodal clinical, genomic and imaging libraries across products such as Insights, Trials, Next; Algos, Hub and Lens; the company reported full-year 2024 revenue of $693 million (up 30% year-over-year), employs about 2,300 people, and monetizes through genomics testing, data licensing, clinical trial matching and platform subscriptions as it expands globally and partners with major pharma players.

Tempus AI, Inc. (TEM): Intro

• Founded in 2015 in Chicago, Illinois by Eric Lefkofsky after his wife's breast cancer diagnosis, with a mission to advance precision medicine through data and AI.
• June 2024: IPO on Nasdaq (ticker: TEM), raised approximately $411 million and achieved a valuation exceeding $6 billion.
• June 2024: Launched SB Tempus, a Japan joint venture with SoftBank Group to develop AI-driven personalized treatment recommendations from medical data.
• November 2024: Acquired Ambry Genetics for $600 million in a cash-and-stock transaction to expand genetic testing and diagnostics capabilities.
• December 2025: Reported full-year 2024 revenue of $693 million, up 30% from 2023.
• As of December 2025: Workforce of ~2,300 employees, reflecting rapid growth across R&D, clinical services, and commercial teams.

• Public company listed on Nasdaq under TEM; institutional investors and founder-linked entities hold meaningful stakes post-IPO.
• Strategic partnerships and joint ventures (notably SB Tempus with SoftBank) expand international footprint and localized product development.
• Growth via acquisition - e.g., Ambry Genetics - integrates vertically across genomic testing and data services.

• Mission: Use clinical data, molecular profiling, and AI to deliver precision diagnostics and personalized treatment recommendations.
• Focus areas include oncology, rare diseases, and broader clinical decision support using multimodal data (genomics, clinical, imaging).
• See detailed corporate mission and vision: Mission Statement, Vision, & Core Values (2026) of Tempus AI, Inc.

• Data ingestion: Aggregates structured and unstructured clinical data, tumor sequencing, germline genetics, pathology, and imaging.
• Processing & harmonization: Normalizes disparate data sources, applies quality controls, and links clinical outcomes to molecular profiles.
• Modeling & AI: Develops predictive and prescriptive models for diagnosis, prognostication, and therapy selection using machine learning and deep learning.
• Clinical products: Delivers clinician-facing reports, decision-support tools, trial-matching solutions, and population-level analytics.

• IPO proceeds (June 2024): ~ $411 million raised; implied valuation > $6 billion.
• 2024 revenue: $693 million (reported Dec 2025), up 30% vs. 2023.
• Acquisition spend: $600 million for Ambry Genetics (Nov 2024) via cash-and-stock.
• Headcount (Dec 2025): ~2,300 employees.

• Operates in a regulated clinical diagnostics and health data environment; CLIA/CAP-accredited lab operations and compliance with HIPAA/GDPR frameworks are material.
• Competes with genomic diagnostics, clinical-AI vendors, and integrated health systems; differentiation via integrated data assets and proprietary AI models.

Tempus AI, Inc. (TEM): History

• IPO: June 2024 - Nasdaq listing under ticker 'TEM'.
• Pre-IPO backing: major private investors included SoftBank Group, Baillie Gifford, New Enterprise Associates (NEA), Novo Holdings, Franklin Templeton, T. Rowe Price, and Revolution LLC.
• Series G‑5 (June 2024): SoftBank Group invested an additional $200 million, reinforcing its position as a significant shareholder.
• Advisory board: includes prominent figures such as Jennifer Doudna and Scott Gottlieb, MD.
• Ownership profile (as of Dec 2025): market capitalization approximately $6.6 billion; ownership split across institutional investors, private equity, and public/individual shareholders.

• Major named institutional investors (historic and continuing holdings): SoftBank Group, Baillie Gifford, New Enterprise Associates, Novo Holdings, Franklin Templeton, T. Rowe Price, Revolution LLC.
• Investor mix: combination of strategic investors, mutual funds, venture capital/private equity, and retail/public shareholders post‑IPO.
• Strategic governance and scientific counsel provided by advisory board members, enhancing credibility with clinicians, regulators, and investors.

Tempus AI, Inc. (TEM): Ownership Structure

• Mission and core values: innovation, collaboration, data‑driven care, ethical AI, continuous improvement.
• Strategic partners: AstraZeneca, GSK, and a joint venture with SoftBank Group in Japan to accelerate deployment in Asia.
• Data footprint (reported): a multimodal clinical and molecular library measured in tens of petabytes and covering clinical/genomic profiles for roughly >1,000,000 patient records (reported scale as of 2023-2024).

• Founders & insiders: founder Eric Lefkofsky and early management remain significant shareholders (material insider stakes reported historically).
• Venture / growth investors: institutional backers participated across rounds-investors historically included large growth funds that contributed to the >$1B capital raised.
• Strategic partners / corporate investors: SoftBank (JV in Japan) and collaborations with major pharma (AstraZeneca, GSK) reflect non‑traditional strategic stakes and partnership agreements rather than typical passive equity ownership alone.
• Public investors / float: Depending on any recent liquidity events or public listings, institutional and mutual fund holdings can comprise meaningful portions of free float; prospective investors should check current filings for live ownership percentages.

• Clinical services: genomic and molecular testing for oncology and specialty diagnostics-fee‑for‑service revenue from hospitals, clinics, and labs.
• Clinical decision support: subscription and software licensing for oncologists and health systems to use AI‑driven treatment guidance and molecular tumor boards.
• Pharma & research partnerships: paid collaborations for drug discovery, biomarker development, and clinical trial optimization (multi‑year, multi‑million dollar agreements reported with large pharma partners).
• Data & analytics products: anonymized, aggregated insights sold or licensed for research and real‑world evidence generation.

• Tempus publicly emphasizes ethical AI development, transparent data governance, and compliance with HIPAA and other health data regulations.
• Partnerships with academic medical centers and pharma include data‑use agreements and governance frameworks to protect patient privacy.

Tempus AI, Inc. (TEM): Mission and Values

• Data sources: genomic sequences (DNA/RNA), tumor mutation profiles, pathology and radiology images, electronic health record (EHR) data, laboratory results, and curated clinical annotations.
• Ingestion & harmonization: clinical text abstraction, standardized ontologies (e.g., ICD, SNOMED, HGVS), and automated pipelines convert raw inputs into structured data linked to unique patient IDs.
• Multimodal modeling: proprietary ML/AI models correlate genotype, phenotype, and imaging features to predict treatment response, resistance mechanisms, and prognosis.
• De-identification & governance: data is de-identified and governed under privacy, consent, and security frameworks to enable licensed research and commercial applications.

• Insights: a licensed library of de-identified clinical, molecular, and imaging datasets for research and drug development partners.
• Trials: clinical-trial matching platform that links patients to active trials using genomic and clinical eligibility criteria.
• Next: high-throughput genomic testing platform for oncology profiling (targeted panels, TMB, MSI, fusion detection).
• Algos: an evolving suite of algorithmic tests and clinical decision-support algorithms focused on oncology diagnostics and treatment options.
• Hub: desktop and mobile clinician interface for ordering tests, tracking specimens, and viewing integrated reports and interpretations.
• Lens: researcher portal to query, access, analyze, and export Tempus datasets for hypothesis generation and validation.

• Clinical sample → Next sequencing / pathology imaging → centralized data warehouse.
• Automated processing → Algos and AI models generate variant interpretation, tumor profiling, and treatment match scores.
• Clinician access → Hub delivers reports and trial matches; researchers access de-identified datasets via Insights and Lens.

• Clinical testing revenue: fee-for-service revenue from genomic, transcriptomic, and pathology tests billed to hospitals, payers, and patients.
• Platform & software subscriptions: Hub, Lens, and Trials licensing fees for provider systems and research institutions.
• Data licensing & partnerships: recurring and transactional licensing of de-identified datasets (Insights) to pharmaceutical and biotech companies for R&D, model training, and biomarker discovery.
• Collaborative research & services: sponsored studies, companion diagnostic development, and co-development agreements with life-sciences partners.
• Clinical trial matching & enrollment services: commercial arrangements with sponsors and sites to improve trial recruitment efficiency.

• Tempus develops commercial collaborations with pharmaceutical and biotech companies for biomarker discovery, drug development support, and companion diagnostic strategies.
• Health system integrations: EHR connectivity and lab integrations to embed Tempus testing and reports directly into clinician workflows.
• Academic and research partnerships: co-sponsored studies and data access commitments to accelerate translational research.

• Personalized treatment decisions via AI-driven genomic testing and evidence-ranked therapy recommendations.
• Enhanced trial enrollment through automated eligibility matching and cohort identification.
• Accelerated discovery by providing researchers with searchable, curated multimodal datasets and analysis tools (Lens).

• Clinical tests and algorithms are developed under CLIA/CAP laboratory frameworks and relevant regulatory guidance for diagnostic performance.
• Data de-identification, patient consent, and HIPAA compliance are central to licensing and research access models.
• Ongoing validation and peer-reviewed evidence generation are used to support clinical utility and payer coverage discussions.

Tempus AI, Inc. (TEM): How It Works

• Founded in 2015 by Eric Lefkofsky; privately held through 2023 and completed a public offering in 2023 as Tempus AI, Inc. (TEM).
• Raised cumulative private financing in excess of $1.1 billion before going public; investors included venture and strategic life‑sciences backers and crossover funds.
• Executive and board ownership is meaningful post‑IPO, with institutional holders (healthcare and tech funds) accounting for the largest free‑float positions.

• Mission: accelerate precision medicine by linking molecular, clinical, and imaging data with analytics and clinical decision tools to improve diagnosis, treatment selection, and trial matching. See the company's formal positioning here: Mission Statement, Vision, & Core Values (2026) of Tempus AI, Inc.

• Genomics segment: clinical next‑generation sequencing (NGS), PCR profiling, molecular genotyping and pathology testing (tumor sequencing, liquid biopsy workflows) for oncology care.
• Data & Services segment: de‑identified clinical and molecular datasets, analytics, real‑world evidence (RWE) services, and commercial clinical‑trial support.
• Insights platform: licensed libraries of linked clinical, molecular, and imaging data used by pharma/biotech for drug discovery, biomarker validation, and regulatory submissions.
• Trials platform: clinical‑trial matching and site‑identification services that connect patient profiles to open trials and provide trial analytics to sponsors.
• Algorithmic/diagnostic offerings: oncology algorithmic tests (Next; Algos) that combine molecular signatures and outcome models for therapy selection and prognosis.
• Operational platforms: Hub (data ingestion, interoperability and workflow tools) and Lens (clinical decision support, visualization) that enable provider integration and partner adoption.

• Specimen & data capture - clinical sites send tumor/normal tissue or blood; sequencing and pathology generate molecular and imaging data; clinical data are abstracted from EHRs.
• Data linkage & curation - molecular, clinical, and imaging data are harmonized, de‑identified, and enriched with outcomes and annotations to create longitudinal patient records.
• Analytics & models - proprietary pipelines and machine‑learning models transform raw signals into diagnostic outputs, biomarkers, and trial‑matching scores.
• Product delivery - results provided as clinically actionable reports to oncologists, licensed datasets to life‑science customers, and software/subscription access for clinical workflows.

• Sequencing and dataset scale - company has reported sequencing and clinical data on the order of hundreds of thousands of tumors and multimillion de‑identified records across molecular, clinical, and imaging modalities.
• Customer footprint - partnerships with major oncology centers, health systems, and dozens of pharmaceutical sponsors for data licensing and trial services.
• Revenue mix - diagnostic/testing services historically form the bulk of billed revenue while Data & Services and Insights have higher margins and stronger growth rates (company pre‑IPO statements identified data licensing and analytics as strategic margin expansion drivers).
• R&D and capital intensity - sizable ongoing investment in laboratory capacity, bioinformatics, and ML model development; capital deployed for sequencing throughput and software integration.

• Testing revenues rely on a mix of commercial payer reimbursement, Medicare/CMS rules, and direct contracting with health systems; reimbursement variability is a key commercial consideration.
• Data licensing and trial services use negotiated contracts often based on cohort size, data granularity, and custom analytics - enabling multi‑year revenue visibility for larger deals.

• Provider pathway: clinician orders testing → Tempus conducts assay and returns report → billing to payer or provider contract.
• Sponsor pathway: pharma contracts for de‑identified datasets or trial‑matching services → licensing/analytics engagement → recurring invoicing or milestone payments.

Tempus AI, Inc. (TEM): How It Makes Money

• Clinical diagnostics and testing services: comprehensive genomic and pathology testing for oncology and other therapeutic areas (including capabilities expanded by the Ambry Genetics acquisition).
• Data and analytics subscriptions: recurring revenue from de-identified clinical-genomic datasets, machine-learning models, and decision-support tools sold to biopharma and health systems.
• Collaborative research and milestone payments: strategic partnerships with major pharma such as AstraZeneca and GSK provide upfront payments, development fees, and milestone-based income.
• Commercial products and software: licensing of Tempus-developed AI algorithms, clinical decision support platforms, and precision medicine services to hospitals and networks.
• International JV and market expansion: revenue sharing and fee-based services via the SoftBank joint venture in Japan and other global initiatives.