Operating leverage remains elusive as evidenced by a persistent negative operating margin of -24.3% in 2026Q1, despite gross margins that have fluctuated between 45.5% and 89.7% over the last two years.
| Sales/Revenue | 1.36B | 1.27B | 693.4M | 531.82M | 320.67M | 257.85M | 188M | 62.06M |
| Revenue Growth % | 69.82% | 83.41% | 30.38% | 65.85% | 24.36% | 37.15% | 202.95% | - |
| Cost of Goods Sold | 386.53M | 386.1M | 312.29M | 245.65M | 190.48M | 174.21M | 159.29M | 46.02M |
| COGS % of Revenue | - | 30.36% | 45.04% | 46.19% | 59.4% | 67.56% | 84.73% | 74.15% |
| Gross Profit | 977.64M | 885.69M | 381.11M | 286.18M | 130.19M | 83.64M | 28.71M | 16.04M |
| Gross Margin % | 71.67% | 69.64% | 54.96% | 53.81% | 40.6% | 32.44% | 15.27% | 25.85% |
| Gross Profit Growth % | - | 132.39% | 33.17% | 119.82% | 55.64% | 191.3% | 78.99% | - |
| Operating Expenses | 1.23B | 1.12B | 1.07B | 482.26M | 395.63M | 327.36M | 222.17M | 135.82M |
| OpEx % of Revenue | - | 88.4% | 154.63% | 90.68% | 123.38% | 126.95% | 118.17% | 218.87% |
| Selling, General & Admin | 784.62M | 731.74M | 755.35M | 296.76M | 233.38M | 199M | 130.89M | 78.96M |
| SG&A % of Revenue | - | 57.54% | 108.93% | 55.8% | 72.78% | 77.18% | 69.62% | 127.24% |
| Research & Development | 276.99M | 146.11M | 316.84M | 185.5M | 162.25M | 128.35M | 91.28M | 56.86M |
| R&D % of Revenue | - | 11.49% | 45.69% | 34.88% | 50.6% | 49.78% | 48.55% | 91.63% |
| Other Operating Expenses | 2M | 246.48M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -254.66M | -238.63M | -691.08M | -196.08M | -265.44M | -243.71M | -193.45M | -119.78M |
| Operating Margin % | -18.67% | -18.76% | -99.67% | -36.87% | -82.78% | -94.52% | -102.9% | -193.02% |
| Operating Income Growth % | - | 65.47% | -252.44% | 26.13% | -8.92% | -25.98% | -61.51% | - |
| EBITDA | -270.92M | -234.55M | -653.84M | -162.75M | -235.03M | -219.83M | -170.4M | -104.76M |
| EBITDA Margin % | -19.86% | -18.44% | -94.29% | -30.6% | -73.29% | -85.25% | -90.64% | -168.81% |
| EBITDA Growth % | 58.83% | 64.13% | -301.74% | 30.75% | -6.92% | -29.01% | -62.66% | - |
| D&A (Non-Cash Add-back) | -16.27M | 4.09M | 37.24M | 33.33M | 30.41M | 23.88M | 23.05M | 15.02M |
| EBIT | -216.82M | -226.44M | -647.66M | -166.66M | -267.26M | -243.4M | -192.43M | -114.92M |
| Net Interest Income | -126.05M | -57.64M | -42.57M | -39.27M | -18.86M | -14.56M | -17.43M | 4.83M |
| Interest Income | 14.68M | 12.63M | 11.08M | 7.6M | 3.03M | 623K | 1.5M | 4.86M |
| Interest Expense | 122.52M | 70.27M | 53.65M | 46.87M | 21.89M | 15.18M | 18.93M | 28K |
| Other Income/Expense | -50.73M | -58.08M | -14.46M | -17.75M | -24.3M | -15.48M | -16.4M | 4.83M |
| Pretax Income | -305.39M | -296.71M | -705.54M | -213.83M | -289.75M | -259.19M | -209.85M | -114.95M |
| Pretax Margin % | -22.39% | -23.33% | -101.75% | -40.21% | -90.36% | -100.52% | -111.62% | -185.23% |
| Income Tax | -5.44M | -51.68M | 266K | 288K | 66K | 0 | 0 | 0 |
| Effective Tax Rate % | 1.78% | 17.42% | -0.04% | -0.13% | -0.02% | 0% | 0% | 0% |
| Net Income | -302.91M | -245.03M | -705.81M | -214.12M | -289.81M | -259.19M | -209.85M | -114.95M |
| Net Margin % | -22.2% | -19.27% | -101.79% | -40.26% | -90.38% | -100.52% | -111.62% | -185.23% |
| Net Income Growth % | 57.28% | 65.28% | -229.64% | 26.12% | -11.81% | -23.51% | -82.56% | - |
| Net Income (Continuing) | -302.91M | -245.03M | -705.81M | -214.12M | -289.81M | -259.19M | -209.85M | -114.95M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.69 | -1.41 | -4.60 | -1.73 | -1.97 | -1.75 | -1.49 | -0.92 |
| EPS Growth % | 62.61% | 69.35% | -165.9% | 12.18% | -12.57% | -17.45% | -61.96% | - |
| EPS (Basic) | - | -1.41 | -4.60 | -1.73 | -1.97 | -1.75 | -1.49 | -0.92 |
| Diluted Shares Outstanding | 178.96M | 174.26M | 162.12M | 154.17M | 169.88M | 169.88M | 169.88M | 160.71M |
| Basic Shares Outstanding | 178.88M | 174.26M | 162.12M | 154.17M | 169.88M | 169.88M | 169.88M | 160.71M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent operating margin deficits
As reported in recent financial filings, Tempus AI's revenue growth has fluctuated significantly, peaking at 89.6% in 2025Q2 before decelerating to 36.1% by 2026Q1, suggesting that the company's reliance on lumpy, project-based data licensing milestones may be creating inconsistent top-line performance across reporting periods.
The wide variance in quarterly growth rates implies that the company's revenue model is not yet characterized by the predictable, recurring SaaS-like streams often attributed to its data platform. Investors should monitor whether the recent deceleration reflects a saturation in diagnostic testing volume or simply the timing of large-scale pharmaceutical partnership renewals.
Based on reported figures, gross margins have demonstrated extreme instability, ranging from a low of 45.5% in 2024Q2 to a high of 89.7% in 2025Q4, which suggests that the company's cost of revenue is highly sensitive to shifts in product mix or accounting adjustments.
The significant margin expansion observed in late 2025 warrants further investigation into whether this represents a structural shift toward higher-margin data licensing or merely a temporary reduction in sequencing-related costs. Without sustained stability in these margins, it remains difficult to determine the true profitability potential of the core diagnostic business.
According to the income statement data, operating expenses continue to outpace gross profit generation, as evidenced by a persistent negative operating margin that reached -24.3% in 2026Q1, indicating that the company has yet to achieve the necessary scale to leverage its fixed laboratory and data infrastructure.
The lack of clear operating leverage suggests that every incremental dollar of revenue is still accompanied by significant overhead, particularly in SG&A and R&D. Until the company can demonstrate a decoupling of revenue growth from expense growth, the path to operating break-even appears to remain speculative.
As disclosed in recent quarterly statements, the company's net income is heavily impacted by substantial stock-based compensation, which reached $52.7 million in 2026Q1, significantly exacerbating the reported net loss and complicating the assessment of the firm's underlying operational cash-generating capability.
The reliance on equity-based incentives suggests that the company is prioritizing talent retention and growth at the expense of shareholder dilution. Analysts should carefully adjust for these non-cash charges to understand the true economic cost of operations, as the current GAAP losses may understate the actual cash burn required to sustain the business.
Quick answers to the most common questions about buying TEM stock.
For fiscal year 2025, Tempus AI, Inc. (TEM) reported total revenue of $1.27B. This represents a 1949.4% increase compared to $62.1M in 2019.
Tempus AI, Inc. (TEM) reported a net loss of $245.0M for the fiscal year ending 2025.
Tempus AI, Inc. (TEM) reported an operating income of $-238.6M, resulting in an operating profit margin of -18.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Tempus AI, Inc. (TEM) generated $885.7M in gross profit for the year, representing a gross profit margin of 69.6%. This demonstrates the company's core pricing power and production efficiency.