Tempus AI, Inc. Q4 FY2025 earnings call

• Eric noted Tempus uniquely positioned with over 450 petabytes of connected multimodal data from Diagnostic business, able to deliver insights in real-time to over 5,500 hospitals and 8,500+ oncologists. • Paige Predict and Immune Profile Score are examples of insights generated. • Foundation model development: Hit benchmarks with AstraZeneca, have additional compute clusters, running models across data. • MRD growth with highly constrained sales effort, potential for significant growth when unblocked. • Ambry acquisition broadens testing compendium, trend of institutions contributing de-identified data for research. • No major sales org reorgs, investment priorities remain data-driven diagnostics and AI for decisions.

Core business total revenue up over 33% including Ambry acquisition. Diagnostic business: Oncology had 29% unit growth with MRD growth rate 56% q-over-q, Hereditary had 23% unit growth. Data business: Licensing business (Insights) up 69% in the quarter (factoring in AstraZeneca warrant one-time impact), projecting ~40% growth this quarter, total contract value >$1.1B, net revenue retention 126%.

• Data business projecting ~40% growth this quarter. • 2026 guidance: $1.59B revenue, ~$65M positive adjusted EBITDA. • ASPs expected to reach over 2,200 in coming years, xT CDx migration to FDA-approved version a key driver for ASP in 2026. • Oncology volume growth expected to continue, Hereditary growth to moderate with lapping share gains but still high teens long-term growth achievable.

Q: Zoomed out on AI market, position on data side, why large pharma keep coming back, customer feedback on success.

A: Tempus unique with proprietary data and distribution, data set from Diagnostic business, clients get insights from products.

Q: Paige Predict strategic value, xT and xR case frequency, ASP guidance for '26.

A: Paige Predict provides insights when sequencing fails, some frequency of such cases, Jim discussed ASP guidance.

Q: Foundation model development status, '26 Oncology and Hereditary volume growth assumptions.

A: Foundation model hit benchmarks, Oncology growth strong, Hereditary growth to moderate.

Q: MRD sales force constraint, 20x higher potential.

A: MRD has small sales force selling, potential 20x growth when unblocked.

Q: Oncology test growth drivers, data and services revenue guide.

A: Core technology advantage drives all Oncology tests, strong bookings for data revenue.

Q: Oncology volume growth durability, liquid vs tissue CGP growth.

A: Oncology growth durable, liquid growing slightly faster.

Q: Ambry acquisition impact on data business.

A: Ambry broadens testing compendium, trend of data contribution for research.

Q: MRD CRC assay, tumor-naive assay performance.

A: Back and forth with MolDX on CRC assay, tumor-naive assay in development.

Q: Sales org changes, key investment priorities.

A: No major sales org changes, investment in data-driven diagnostics.

Q: ASP outlook and gross margin progression.

A: ASP increase leads to gross margin increase, balancing to offer broad panels.