Should You Have Tempus Company In Your Basket-TEM

Acrobull UK Advisory Services Ltd.

February 12			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Tempus AI.	TEM-NASDAQ	Healthcare		$9.538 Billion	Medium

Tempus AI, Inc. is a healthcare technology company that delivers advanced diagnostic solutions. Its services include next-generation sequencing diagnostics, polymerase chain reaction (PCR) profiling, molecular genotyping, and a range of anatomic and molecular pathology tests for healthcare providers, pharmaceutical and biotechnology firms, researchers, and other organizations.

Recent Highlights

Tempus Reveals Its AI-Driven IPS Test More Accurately Predicts Immunotherapy Benefit Compared to Conventional Biomarkers- A leading technology company focused on accelerating the adoption of artificial intelligence in precision medicine today announced findings from a new study highlighting the performance of its algorithm-based diagnostic test, Immune Profile Score (IPS).

The study showed that IPS more accurately predicts clinical outcomes for patients treated with immune checkpoint inhibitors (ICIs) compared with traditional biomarkers. Specifically, IPS outperformed commonly used measures such as tumor mutational burden (TMB), microsatellite instability (MSI), and PD-L1 expression. These results suggest that IPS may provide clinicians with a more reliable tool for identifying patients most likely to benefit from immunotherapy treatments.

Fourth Quarter 2025 Financial Highlights

Revenue totaled approximately $367 million, representing an 83% year-over-year increase and reflecting strong overall business momentum, continued customer adoption, and sustained expansion across the company’s core operating segments during the reporting period.

Diagnostics revenue reached approximately $266 million, delivering 121% growth compared with the prior year and driven by expanding demand for advanced testing services and broader adoption across oncology and hereditary clinical applications.

This performance was supported by oncology testing volume growth of approximately 29% and hereditary testing volume growth of approximately 23%, highlighting continued market penetration, stronger provider engagement, and increased utilization of the company’s diagnostic offerings.

Data and applications revenue totaled approximately $100 million, increasing 25% year-over-year, while Insights revenue grew 68% excluding the impact of the AstraZeneca warrant recorded in the fourth quarter of 2024.

Observations- The Company expects future revenue growth to build upon the approximately $367 million reported, which represented an 83% year-over-year increase, supported by strong business momentum, continued customer adoption, and ongoing expansion across its core operating segments. However, these expectations are forward-looking in nature and subject to various risks and uncertainties that could cause actual results to differ materially from current projections.

The company’s future financial performance, operational developments, and external market factors may influence its share price. Equity investments are subject to market risk, and past or current financial metrics are not indicative of future performance.

Based on our review of the company’s publicly available financial information and market data, Acrobull UK has identified several constructive fundamental and technical indicators at this time. Accordingly, we are initiating a Buy recommendation.

Disclaimer-The information published by Acrobull UK is provided for general informational and educational purposes only. Our analysis is based on publicly available information and incorporates fundamental and technical research methodologies.

The content does not constitute investment advice, a personal recommendation, or an offer or solicitation to buy or sell any financial instrument. Nothing in this material should be construed as being tailored to the investment objectives, financial situation, or particular needs of any individual.

Financial markets involve risk, and the value of investments can go down as well as up. Past performance is not indicative of future results.

Readers are solely responsible for conducting their own due diligence and risk assessment before making any investment decision. Acrobull UK does not provide regulated financial advice and does not accept liability for any loss or gain arising from reliance on the information provided.

Acrobull UK Research View Based on Independent Evaluation

Current Market Price	$53.61 USD
Research Classification:	Positive- Buy
Illustrative Valuation Estimate:	$61.25 USD
RSI Level	42 RSI
Total Shares Outstanding	172.86 Million
Shares Held by Insiders Shares Held by Institutions Internal Risk Assessment: Medium Illustrative Risk Parameter	39.90% 56.46% Medium 5%