Tempus AI reported Q1 revenue of $348.1 million, a 36% increase year over year, driven by its Data and Applications segment, which generated $87.0 million in sales (up 40.5%) at a 73.1% Non-GAAP gross margin. The diagnostics unit contributed $261.1 million (up 34.7%), supporting the data division’s push toward a recurring-revenue healthcare platform backed by over $1.1 billion in contracted licensing agreements and partnerships with major pharma firms.

Despite strong topline growth, the company posted a GAAP net loss of $125.9 million (-$0.71 per share) as operating leverage remains delayed by $56.3 million in stock-based compensation and elevated cash burn tied to upfront data investments. Management maintains a full-year 2026 Adjusted EBITDA target of $65 million, highlighting a path toward margin expansion once scale efficiencies materialize.

Tempus AI shares trade at approximately 6.6 times trailing revenues of $1.36 billion, below its historical year-end P/S average of 8.2x since going public. This multiple compression reflects investor focus on current GAAP losses and expense variability, creating a tactical accumulation window ahead of anticipated profitability improvements.