Tempus AI (NASDAQ: TEM), a healthcare technology company, posted impressive Q1 results with revenue reaching $255.7 million, up 75.4% year-over-year. Adjusted EBITDA improved significantly to $-16.2 million compared to $-43.9 million in Q1 2024, representing a $27.8 million improvement. The company has raised its full-year 2025 guidance to $1.25 billion in revenue (approximately 80% growth) and expects positive Adjusted EBITDA of $5 million, a $110 million improvement over 2024. As an aside, will Tesla get back to basics? See Tesla’s Lost Cause.
Since its June 14, 2024 listing, TEM stock has experienced volatility—dropping 16% from $40 to $34 by the end of 2024, before rebounding to $52 currently. For investors seeking growth with less volatility than individual stocks, the High-Quality portfolio offers an alternative, having outperformed the S&P with >91% returns since inception. Separately see – What’s Next For HIMS Stock After A Solid Q1?
Tempus AI specializes in advanced medical diagnostics using next-generation sequencing, PCR profiling, molecular genotyping, and various pathology tests. The company serves healthcare providers, pharmaceutical and biotech companies, and researchers by analyzing genetic and molecular information to advance medical research and treatments.
Despite underperforming the broader market in 2024 (-16% vs. S&P’s 23% gain), TEM stock appears poised for continued growth. Analysts’ average price target of $61 suggests a 17% upside from current levels. At $52, TEM trades at 11x trailing revenues—a valuation that seems justified given its 39% average annual sales growth over the past four years. With genomics remaining the largest revenue contributor, this growth trajectory is expected to continue.
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