Cash generation remains highly erratic, with the OCF/NI ratio swinging to 0.58 in 2026Q1, while stock-based compensation of $52.7 million continues to obscure the true economic cost of operations.
| Cash from Operations | -185.74M | -218.09M | -189.04M | -214.34M | -168.2M | -211.98M | -206.56M | -117.11M |
| Operating CF Margin % | - | -17.15% | -27.26% | -40.3% | -52.45% | -82.21% | -109.87% | -188.72% |
| Operating CF Growth % | -163.87% | -15.36% | 11.8% | -27.43% | 20.65% | -2.62% | -76.38% | - |
| Net Income | -302.91M | -245.03M | -705.81M | -214.12M | -289.81M | -259.19M | -209.85M | -114.95M |
| Depreciation & Amortization | 84.93M | 4.09M | 37.24M | 33.33M | 30.41M | 23.88M | 23.05M | 15.02M |
| Stock-Based Compensation | 154.48M | 124.75M | 534.14M | 0 | 0 | 559K | 399K | 529K |
| Deferred Taxes | -6.45M | -52.66M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -61.3M | 129.31M | -16.82M | 4.28M | 19.38M | 8.22M | 15.29M | 3.65M |
| Working Capital Changes | -54.49M | -178.55M | -37.8M | -37.84M | 71.82M | 14.55M | -35.45M | -21.36M |
| Change in Receivables | -43.24M | -90.4M | -61.04M | -7.35M | -8.2M | 4.75M | -55.84M | -13.37M |
| Change in Inventory | -2.79M | -3.37M | -9.54M | -6.56M | -1.31M | 14.65M | -29.28M | -3.47M |
| Change in Payables | -55.81M | -7.24M | -23.85M | -23.36M | -7.92M | -30.47M | 38.13M | 0 |
| Cash from Investing | -22.54M | -398.36M | -130.39M | -40.31M | -57.94M | -21.72M | -13.42M | -43.03M |
| Capital Expenditures | -18.98M | -27.27M | -22.12M | -34.61M | -18.38M | -11.77M | -13.42M | -17.04M |
| CapEx % of Revenue | 1.39% | 2.14% | 3.19% | 6.51% | 5.73% | 4.56% | 7.14% | 27.45% |
| Acquisitions | 4.1M | -376.67M | -95.19M | -5.71M | -39.56M | -5.96M | 0 | -25.99M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -4.92M | 0 | 0 | 0 | 0 | -4M | 0 | 0 |
| Cash from Financing | 591.08M | 884.12M | 494.33M | 117.55M | 251.39M | -2.04M | 506.11M | 196.69M |
| Debt Issued (Net) | 726.5M | 735.76M | 0 | 82.59M | 170.25M | -796K | 329.11M | -919K |
| Equity Issued (Net) | -3.04M | 192.46M | 579.45M | 41.28M | 92.2M | 8.89M | 182.62M | 202.9M |
| Dividends Paid | 0 | 0 | -5.63M | -5.63M | -5.63M | -5.63M | -5.63M | -5.29M |
| Share Repurchases | -3.04M | -3.04M | 0 | -3.6M | 0 | 0 | -7.31M | 0 |
| Other Financing | -132.38M | -44.1M | -79.5M | -698K | -5.43M | -4.51M | 0 | 0 |
| Net Change in Cash | 456.13M | 263.83M | 175.23M | -137.12M | 25.27M | -235.75M | 286.12M | 36.54M |
| Free Cash Flow | -208.3M | -239.14M | -211.17M | -248.95M | -186.58M | -223.75M | -219.98M | -134.15M |
| FCF Margin % | -15.27% | -18.8% | -30.45% | -46.81% | -58.19% | -86.77% | -117.01% | -216.17% |
| FCF Growth % | 2.06% | -13.25% | 15.18% | -33.43% | 16.61% | -1.72% | -63.98% | - |
| FCF per Share | -1.16 | -1.37 | -1.30 | -1.61 | -1.10 | -1.32 | -1.29 | -0.83 |
| FCF Conversion (FCF/Net Income) | 0.69x | 0.89x | 0.27x | 1.00x | 0.58x | 0.82x | 0.98x | 1.02x |
| Interest Paid | 26.5M | 0 | 28.05M | 16.91M | 4.66M | 80K | 2.05M | 0 |
| Taxes Paid | 136K | 0 | 206K | 161K | 6K | 3K | 8K | 0 |
Persistent operating cash deficits
According to quarterly financial disclosures, the relationship between net income and operating cash flow remains highly erratic, with OCF/NI ratios swinging from 0.18 in 2024Q2 to 3.02 in 2024Q4, indicating that reported earnings are currently poor proxies for the company's actual cash-generating capacity.
The significant divergence between net losses and operating cash flow suggests that non-cash items and working capital fluctuations are the primary drivers of cash movement rather than core operational profitability. Investors should interpret this instability as a sign that the business model has not yet reached a steady state of cash conversion.
As reported in recent filings, Tempus AI continues to experience persistent free cash flow deficits, with a quarterly burn rate that reached $73.3 million in 2026Q1, highlighting the ongoing challenge of funding high-growth infrastructure through internal operations rather than external capital raises.
The trajectory of FCF margins remains deeply negative, reflecting the heavy investment required to maintain the company's clinical-genomic data flywheel. This trend suggests that the firm remains in a capital-intensive scaling phase where cash outflows are structurally decoupled from current revenue generation.
Based on the provided cash flow statements, working capital changes have been a major source of quarterly volatility, including a $71.4 million outflow in 2025Q3 followed by a $64.6 million inflow in 2025Q2, suggesting that timing of collections and payables significantly impacts liquidity.
These large, inconsistent swings in working capital appear to be tied to the lumpy nature of data licensing milestones and diagnostic testing volumes. Such fluctuations warrant further investigation into whether the company is effectively managing its cash conversion cycle or if it is overly reliant on specific, irregular payment events.
Data from recent SEC filings reveals that stock-based compensation has become a substantial component of the company's expense structure, peaking at $488.3 million in 2024Q2, which effectively obscures the true economic cost of talent acquisition and retention on the firm's cash position.
While SBC is a non-cash expense, the scale of these grants suggests that the company is utilizing equity to preserve cash, which may lead to significant shareholder dilution over time. Analysts should monitor whether this reliance on equity-based incentives persists as the company attempts to transition toward positive operating cash flow.
Quick answers to the most common questions about buying TEM stock.
Tempus AI, Inc. (TEM) generated $-218.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tempus AI, Inc. (TEM) reported negative free cash flow of $239.1M in 2025, indicating capital requirements exceeded cash from operations.
Tempus AI, Inc. (TEM) spent $27.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Tempus AI, Inc. (TEM) spent $3.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.