Tempus AI (TEM) just posted its FY 2025 numbers with Q4 revenue of US$367.2 million, a basic EPS loss of US$0.30, and net income loss of US$54.2 million, setting the tone for how investors will read the rest of the year. The company reported revenue of US$200.7 million in Q4 2024 and US$367.2 million in Q4 2025, while quarterly basic EPS moved from a loss of US$0.07 to a loss of US$0.30 over the same period, so the key question now is how to weigh that top line against the still negative earnings profile. Margins remain under pressure, which places more attention on how efficiently Tempus AI can convert its growing revenue base into future profitability.

See our full analysis for Tempus AI.

With the headline numbers on the table, the next step is to see how this mix of revenue growth and ongoing losses aligns with the main narratives around Tempus AI and where those stories might need a reset.

TTM revenue passes US$1.2b while losses remain heavy

• On a trailing twelve month basis to Q4 2025, Tempus AI booked about US$1.27b of revenue and a net loss of US$245.0 million, so the business is bringing in a lot of sales while still burning a significant amount of money.
• Consensus narrative points to strong testing volumes and biopharma partnerships as the engine for this revenue. However, the trailing loss profile shows the bullish view depends on:
  • Revenue growth staying strong enough to make use of the existing cost base, given losses have been widening at about 10.8% per year over the past five years.
  • Gross margin and operating discipline continuing to improve so that sizeable losses like the US$54.2 million Q4 2025 shortfall narrow over time rather than staying at current levels.

Unprofitable status vs 29.7% growth hopes

• Analysts in the supplied data expect about 29.7% annual revenue growth over the next three years, even though Tempus AI is not forecast to be profitable over that period and has trailing twelve month EPS of a US$1.41 loss.
• Bulls argue that expanding AI and genomics adoption can support those growth expectations and eventually better margins. Yet the current numbers keep that thesis on a tight leash:
  • The most recent full year shows four straight quarterly EPS losses between roughly US$0.25 and US$0.46 per share, which means the model still needs to carry ongoing losses while growth plays out.
  • Forecasts that revenue can grow around 17.6% per year in the recent context support the growth side of the bullish case, but the absence of a profitability inflection in the next three years tempers how much weight you might give to those long term margin assumptions.

Have a closer look at how bullish investors connect these growth expectations to Tempus AI's longer term story in the detailed narrative: 🐂 Tempus AI Bull Case

Rich 7.5x P/S and a higher DCF fair value

• Tempus AI trades on a P/S of 7.5x compared with about 5.3x for peers and 2.8x for the wider US life sciences group, while the supplied DCF fair value of US$141.13 sits well above the current share price of US$53.71.
• Bears focus on the risk that this higher multiple could be hard to justify if losses persist, and the current data gives that concern some grounding:
  • The trailing twelve month net loss of US$245.0 million and lack of a forecast move into profit within three years mean there is no P/E anchor, so the valuation is largely riding on sales and future margin assumptions.
  • If the company does not move meaningfully towards profit from its recent quarterly net losses between US$42.8 million and US$79.9 million in 2025, the current 7.5x P/S could come under pressure even with the DCF fair value sitting much higher than today’s price.

Skeptical about paying a premium multiple while losses continue, but still curious what a full bear case looks like for Tempus AI? 🐻 Tempus AI Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Tempus AI on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of growth hopes and ongoing losses leaves you on the fence, it is worth looking through the numbers yourself and deciding quickly where you stand, especially given the balance of 3 key rewards and 1 important warning sign.

See What Else Is Out There

Tempus AI is still carrying heavy losses alongside a rich 7.5x P/S multiple, with no clear path to profitability in the supplied three year forecasts.

If that mix of ongoing losses and premium pricing feels like too much risk, take a few minutes to scan our 80 resilient stocks with low risk scores that focus on steadier profiles and potentially calmer sleep at night.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.