Tempus AI Q1 Revenue Jumps 36% to $348.1M, Data Margins at 73.1%
Tempus AI grew Q1 revenue by 36% to $348.1 million, with data segment revenue up 40.5% to $87.0 million at a 73.1% gross margin, boosting consolidated margin to 63.8%. The company posted a GAAP net loss of $125.9 million (–$0.71 per share) and forecasts $65 million in 2026 Adjusted EBITDA.
1. Q1 Financial Performance
Tempus AI delivered Q1 revenue of $348.1 million, up 36% year over year, with diagnostics services contributing $261.1 million (34.7% growth) and data and applications adding $87.0 million (40.5% growth). Consolidated non-GAAP gross margin improved to 63.8%, reflecting the higher margin mix.
2. Data and Applications Segment Growth
The data and applications division generated $87.0 million in Q1 revenue at a 73.1% non-GAAP gross margin, supported by over $1.1 billion in total contract value. Collaborations with pharmaceutical partners bolster the segment’s scalable licensing model as Tempus pivots toward recurring revenue.
3. Profitability Challenges and Guidance
GAAP net loss widened to $125.9 million in Q1, or $0.71 per share, driven by $56.3 million in stock-based compensation and heavy upfront investments. Management projects full-year 2026 Adjusted EBITDA of $65 million as operating leverage is expected to improve.
4. Valuation and Entry Point
Shares trade at roughly 6.6 times trailing revenues of $1.36 billion, below the 8.2x year-end average since IPO. Multiple compression reflects investor focus on current GAAP losses and expense variability, creating a tactical accumulation window before margin expansion materializes.