A maker of AI-driven precision medicine tools, Tempus runs a platform that analyzes tumor samples and other health data to help doctors personalize cancer, hereditary, and neuropsychiatry care. Its Diagnostics line performs genomic tests, while Data & Applications sells anonymized health insights and trial-matching services to drugmakers. Founded in 2015 by Eric Lefkofsky, it takes its name from the Latin for "time" — a nod to giving patients more of it.
Tempus AI posts first GAAP net income of $5.6M in Q2 2026, driven by unrealized gains on equity securities.
Tempus AI reported its first quarter of positive . rose 22% to $382.5 million and turned positive at $8.0 million, but the $5.6 million net profit was driven by a $60.7 million increase in , not by . The company used a new $460 million convertible notes offering to fully repay its credit facilities, leaving it debt-free outside of its convertible notes.
Key takeaways
rose 22% to $382.5 million, with Diagnostics up 20% to $289.3 million on a 31% increase in oncology test volume and Data and applications up 28% to $93.2 million on higher Insights demand.
The company reported of $5.6 million, compared to a $42.8 million loss a year ago, as a $60.7 million increase in within Other income more than offset a widening operating loss.
Operating loss widened to $75.9 million from $61.8 million, as total costs and expenses rose 22%, with increasing $31.7 million across all functions alongside higher personnel and cloud infrastructure costs.
Section summaries
Management's Discussion and Analysis
Tempus Q2 2026 revenue grew 22% to $382.5M driven by higher test volumes and data sales, achieving net income of $5.6M.
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Total rose 22% to $382.5M, with Diagnostics up 20% to $289.3M on higher oncology and hereditary test volumes, and Data and applications up 28% to $93.2M driven by Insights demand and the Pathos Foundation Model agreement.
turned positive at $8.0 million, up from a loss of $5.6 million a year ago, reflecting higher and the exclusion of non-cash charges including the increased .
The company issued $460 million in due 2032 and used the proceeds to fully repay the remaining $307.7 million of debt, ending the quarter with $604.3 million in cash and equivalents and no outstanding credit facility borrowings.
What changed
returned to positive territory at $8.0 million, after slipping to a $2.8 million loss in Q1 2026, though the improvement was aided by non-cash adjustments rather than a reduction in cash operating costs.
The company fully repaid its debt, eliminating the $307.7 million in borrowings that were flagged as a liquidity concern in Q1 2026, using proceeds from a new $460 million convertible notes offering.
remained negative at an outflow of $13.6 million, a significant improvement from the $81.5 million outflow in Q1 2026 but still a reversal from the $36.6 million positive free cash flow generated in Q2 2025.
The deceleration in growth continued, with the 22% increase in Q2 2026 comparing to 90% in Q2 2025 and 36% in Q1 2026, as the initial boost from the Ambry Genetics acquisition annualized.
What to watch
Whether the company can sustain positive without relying on unrealized gains from marketable equity securities, given the $75.9 million operating loss.
The trajectory of and whether the company can return to sustained positive territory after a $13.6 million outflow this quarter, now that debt is fully repaid.
Any development in the Guardant Health patent litigation that leads to a loss accrual or affects sales of the xF, xF+, xM Monitor, or xM MRD liquid biopsy products.
Whether the proposed acquisition of Personalis closes, given the termination triggers including a stock-price floor of $46.00 and a mutual break fee of $76.8 million.
Oncology test volume increased 31% to ~96,500 tests, while hereditary test volume grew 2% to ~141,500 tests; Data growth was primarily from existing customers and new adopters.
Operating loss widened to $75.9M from $61.8M as total costs rose 22%, with notable increases in (+$31.7M across all functions), personnel costs, and cloud infrastructure spending.
The company reported of $5.6M versus a $42.8M loss last year, largely due to a $60.7M increase in within Other income.
turned positive at $8.0M compared to -$5.6M a year ago, reflecting higher and non-cash adjustments.
Liquidity was bolstered by a $460M convertible notes offering; proceeds were used to fully repay the remaining $307.7M of credit facilities, leaving $604.3M in cash and equivalents with no outstanding debt.
Tempus AI is defending patent suits from Guardant Health and a new genetic-privacy class action, with no loss accruals recorded.
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Guardant Health filed two patent complaints in Delaware alleging Tempus xF, xF+, xM Monitor, and xM MRD products infringe eight U.S. patents, seeking injunctive relief, unspecified damages, and a future royalty.
Tempus counterclaimed under the alleging Guardant’s advertisements were false and misleading, and filed its own patent suit in California that was later .
In February 2026, four companion class-action lawsuits were filed in Illinois alleging violations of the Illinois Genetic Information Privacy Act and other state privacy and common-law claims.
The company states it believes the privacy lawsuits are without merit and intends to vigorously defend them.
No loss accruals have been recorded because the likelihood of loss is not deemed probable or a loss amount cannot be reasonably estimated.
New risks center on the proposed Personalis acquisition and convertible notes, while prior risk factors remain materially unchanged.
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The proposed acquisition of Personalis may not close, with termination triggers including a stock-price floor of $46.00 and a mutual break fee of $76.8 million.
Failure to complete the deal could harm the stock price, disrupt client and employee relationships, and waste management time and resources.
Integration challenges may cause loss of key personnel, higher-than-expected costs, and failure to realize anticipated synergies, diluting stockholders without commensurate benefit.
The $750M 2030 Notes and $460M 2032 Notes create risks around cash-flow strain, potential upon conversion, and downward pressure on the stock.
intended to offset expose the company to counterparty default risk and may not function as expected, especially in volatile markets.