$TEM · Tempus AI, Inc.
Tempus AI filed its Q3 2026 10-Q, reporting total net revenue of $411.5M (+23% YoY), with Diagnostics contributing $303.5M (+20%) and Data & Applications $108.1M (+33%). Net loss narrowed to $(14.9M) or $(0.08) per share from $(80.0M)/$(0.46) a year ago, helped by $47.1M in other income. Operating loss was $(56.9M) with SG&A rising to $231.9M. Cash and equivalents stood at $590.5M against $1.35B in total liabilities including convertible notes.
- Revenue rose 23% YoY to $411.5M: Diagnostics +20% to $303.5M, Data & Applications +33% to $108.1M.
- Net loss narrowed sharply to $(14.9M) from $(80.0M) YoY, driven by $47.1M in other income (vs. $2.6M prior year).
- Operating loss was $(56.9M) vs. $(61.0M) YoY; SG&A ballooned to $231.9M from $187.9M, consuming 56% of revenue.
- Cash and equivalents fell to $590.5M from $604.8M at year-end; $443.1M in new convertible notes were issued.
- Nine-month operating cash burn improved to $(71.6M) from $(181.3M) YoY, aided by $108.9M in gains on marketable equity securities.
Extended-hours trading shows TEM at $75.70, up +4.82% vs the regular-session close of $72.22, suggesting the market is rewarding the sharply narrowed net loss and 23% revenue growth despite persistent operating losses. The regular session had closed down -7.22% before the filing.
Tempus is approaching breakeven on paper but the quality of that improvement depends heavily on non-operating income; the core business still lost $(56.9M) from operations.
Tempus's 23% revenue growth and Data & Applications segment accelerating to +33% YoY signal strong AI-healthcare adoption, though the 56% SG&A-to-revenue ratio remains elevated versus profitable health-tech peers.
SG&A at $231.9M (56% of revenue) continues to outpace revenue growth, and the company carries $1.35B in total debt including $1.17B in convertible senior notes. The accumulated deficit reached $2.53B. Related-party revenue concentration with Pathos AI ($22.1M in Q3 Data & Applications) and SB Tempus joint venture warrants monitoring.