Summary

• Tempus AI is a precision medicine leader leveraging AI and a unique data estate, with significant partnerships and a rapidly growing contract backlog exceeding $1 billion.
• TEM's recent share price decline and controversy around profitability have compressed valuation, creating an attractive entry point for risk-tolerant investors seeking positive alpha.
• Data licensing revenues rose nearly 70% last quarter, with foundation models and AI-driven products fueling high-margin growth and reinforcing TEM's competitive moat.
• Management projects a 25% CAGR, 4% adjusted EBITDA margin for 2026 and expects accelerating profitability as the high-margin data business scales.

A healthcare technology company that uses AI as the basis for its solutions

Tempus AI (TEM) is probably not the best-known company in the AI space at this stage of its evolution although

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of TEM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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