Tempus AI's Loss Shrinks To $14.9 Million, Helped By $44.0 Million Jump In Paper Gains On Stock It Holds
Tempus AI cut its third-quarter net loss, but unrealized stock gains did much of the work while operations lost $56.9 million.
Tempus AI, which runs cancer-focused labs and sells de-identified patient data to drugmakers, cut its third-quarter net loss to $14.9 million from $80.0 million a year earlier. Most of the improvement came below the operating line: other income rose to $47.1 million, driven by a $44.0 million jump in unrealized gains on marketable equity securities, while loss from operations was $56.9 million.
Gains carry the bottom line
Other income was $2.6 million in the year-earlier quarter. The 10-Q attributes the change mainly to unrealized gains on marketable equity securities. Tempus holds shares of Recursion and of Personalis, the company it has agreed to buy, and marks them to market each reporting period.
Operations improved less. Loss from operations narrowed to $56.9 million from $61.0 million, even as revenue rose 23% to $411.5 million. Diagnostics brought in $303.5 million, up 20%, and Data and applications $108.1 million, up 33%. Adjusted EBITDA, a measure that strips out items including stock pay and securities gains, was $25.6 million against $1.5 million a year earlier.
The prior quarter's 10-Q reported net income of $5.6 million, so the company swung back to a loss this quarter. For the first nine months, stock-based compensation reached $154.9 million, against $79.4 million a year earlier.
Personalis stake and deal timing
Because of the pending purchase, Tempus moved its Personalis shares into long-term marketable equity securities, which stood at $212.3 million. Current holdings were $46.9 million.
The company now anticipates closing the Personalis deal in the fourth quarter of 2026, where the prior filing said late 2026 or early 2027. Personalis stockholders vote on November 30, 2026. Tempus will pay $16.25 per share, planned as all Class A stock, though it may pay up to 50% in cash. A termination fee of about $76.8 million applies in either direction under specified circumstances, and regulatory waiting periods have cleared.
The filing says any cash could be funded from a combination of sources. Tempus ended September with cash, cash equivalents and restricted cash of $595.2 million, and carries convertible notes due 2030 and 2032 plus a Google note due in 2030.
Outlook and the business
In its earnings release, Tempus raised full-year revenue guidance to $1.60 billion to $1.605 billion and kept its adjusted EBITDA expectation at about $65 million. Founder and CEO Eric Lefkofsky called the quarter "another record quarter."
Tempus operates labs that sequence tumors and licenses de-identified data to pharmaceutical partners. Oncology test volume rose to about 101,500 in the quarter from about 77,000. The company's market value was $13.2 billion in the original report.
Personalis stockholders vote on the merger on November 30, 2026.
Sources
- 10-Q Filing — Tempus AI (TEM) — SEC EDGAR
- 10-Q Filing — Tempus AI (TEM), Q2 FY2026 filed 2026-07-30 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, tem-ex99_1.htm) — Tempus AI, filed 2026-11-02 — SEC EDGAR
- Tempus AI Earnings Ahead: Is TEM Set Up To Pop or Drop? — benzinga.com
- Tempus AI, Inc. (TEM) Stock Price, News, Quote & History - Yahoo Finance — Yahoo Finance
- Tempus Reports Third Quarter 2026 Results – Company Announcement - FT.com — Financial Times
- TEM vs. DOCS: Which Medical Info Systems Stock Is the Better Pick Now? — Yahoo Finance
- Tempus AI Stock Offers Juicy Premiums, But Also Is Highly Risky | Investor's Business Daily — investors.com
