Tempus AI Posts 83% Revenue Growth Yet Stumbles on Full Year Profitability Target

Tempus AI released full-year and Q4 2025 results that partially validated its profitability narrative. Q4 revenue of $367 million met pre-announced expectations with 83% year-over-year growth. Non-GAAP EPS beat estimates at -4 cents versus -5 cents expected, and adjusted EBITDA improved to $12.9 million in Q4 from $1.5 million in Q3. However, full-year 2025 adjusted EBITDA came in at -$7.4 million, below management's prior guidance for slightly positive results. The GAAP net loss widened significantly due to $48.7 million in stock-based compensation and tax expenses. Management guided 2026 revenue to approximately $1.59 billion with 25% growth and adjusted EBITDA of $65 million, signaling confidence in achieving profitability and operational leverage.

"Revenue was never really in question. The $367 million Q4 print, up 83% year over year, had been pre-announced in January and came in essentially as expected. What moved the stock last night was the fuller picture around profitability and forward targets."

"As 24/7 Wall St. flagged in last night's coverage, the GAAP net loss widened sharply year over year in Q4, with $48.7 million in stock-based compensation and tax-related expenses driving much of the gap. That's a one-time composition issue worth noting, but investors are still weighing it against the pace of operating leverage."

"The 2026 guidance, particularly the $65 million adjusted EBITDA target, is the clearest signal yet that profitability is no longer aspirational language. Management Confident, Market Measured CEO Eric Lefkofsky struck a bullish tone, stating 'We enter 2026 in an exceptionally strong position with both of our main businesses accelerating in growth and delivering the financial leverage inherent in our platform.'"

Read at 24/7 Wall St.