Earnings release
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NEWS RELEASE Tempus Reports Third Quarter 2026 Results 2026-11-02 CHICAGO--(BUSINESS WIRE)-- Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine, today reported nancial results for the quarter ended September 30, 2026. “Q3 was another record quarter, as we delivered $411.5 million of revenue, led by accelerating unit growth of 32% in our oncology business and increasing momentum of 33% revenue growth in Data & Applications,” said Eric Lefkofsky, founder and CEO of Tempus. “These results reinforce the durability of our model as our best-in-class diagnostic platform enhances our data and AI o erings, distinguishes our business from our many competitors, and helps drive our performance quarter after quarter.” Third Quarter 2026 Highlights For the three-month period ended September 30, 2026, as compared to the same period in 2025: Total revenue of $411.5 million, an increase of 23% Oncology volume growth accelerated to 32% Minimal Residual Disease (MRD) volume of ~12,000 tests, up 300% Data & Apps revenue increased 33%, with Insights increasing 29% Increasing full year 2026 revenue guidance to $1.60 to $1.605 billion and expect full year Adjusted EBITDA of ~$65 million Announced multi-year strategic collaboration with Merck and Moderna to support commercialization of their individualized neoantigen therapy (INT) class of drugs In October, announced a strategic collaboration with BMS bringing Tempus’ total data licensing bookings to >$550 million year to date 1
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Third Quarter 2026 Summary Results For the three-month period ended September 30, 2026, as compared to the same period in 2025: Total revenue increased 23% to $411.5 million. Diagnostics generated $303.5 million of revenue, representing 20% growth, driven by Oncology volume growth of 32%, o set by Hereditary revenue growth of 3%. Data and Applications generated $108.1 million of revenue, representing 33% growth, with Insights growing 29%. Gross pro t increased 27% to $266.7 million, led by growth in Data and Applications. Net loss was $(14.9) million, which included $50.8 million of stock-based compensation expense and related employer payroll taxes and $42.8 million in unrealized gains on marketable securities, compared to a net loss of $(80.0) million in Q3 of 2025. Adjusted EBITDA was $25.6 million, compared to $1.5 million in Q3 of 2025. Ended the quarter with cash and marketable securities of $854.4 million. Detailed Operational Highlights Announced a strategic collaboration with BMS in October through which Tempus is directly licensing to BMS oncology data and models for up to $137.5 million over a ve-year term. In addition, BMS and Pathos are licensing data for patients with Alzheimer's or dementia for $55 million over a ve-year term, extending Tempus’ data and modeling platform beyond oncology. Announced a multi-year strategic collaboration with Merck and Moderna to support the potential commercialization of intismeran autogene, a novel, potential rst-in-class individualized neoantigen therapy (INT) being evaluated in combination with KEYTRUDA (pembrolizumab), Merck’s anti-PD-1 therapy, in patients with completed resected stage IIB-IV melanoma and other cancer types. Cleared regulatory review of pending acquisition of Personalis (Nasdaq: PSNL). Personalis' shareholder meeting to approve the acquisition is planned for November 30, 2026. Received two 510(k) clearances from the U.S. Food and Drug Administration (FDA) for Tempus ECG-PH and ECG-MR, expanding our non-invasive AI cardiology footprint. Announced an initiative to build a research platform containing 100,000 whole genomes linked to longitudinal clinical information over the next several years. Third Quarter Financial ResultsThree Months EndedS b30 2
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September 30, 2026 2025Change (in thousands, exceptpercentages and per shareamounts)(unaudited) Revenue $ 411,537$ 334,20623%Gross pro t $ 266,701$ 209,94227%Loss from operations $ (56,864) $ (60,996) 7%Non-GAAP income (loss) from operations$ 14,422$ (8,662) 267%Net loss $ (14,851) $ (79,982) 81%Non-GAAP net income (loss) $ 13,359$ (19,590) 168%Adjusted EBITDA $ 25,572$ 1,476 1,633%Net loss per share, basic and diluted$ (0.08) $ (0.46) 83%Non-GAAP net income (loss) per share, basic and diluted$ 0.07$ (0.11) 164% Financial Outlook and Guidance Tempus is increasing its full year 2026 revenue guidance to $1.60 to $1.605 billion, which represents ~25% annual growth. We continue to expect 2026 Adjusted EBITDA to be ~$65 million. For additional information on the quarter, including a letter from our CEO and CFO, please visit our investor relations site at investors.tempus.com. Webcast and Conference Call Information A conference call and webcast will begin today, November 2, 2026 at 8:45 a.m. Eastern Time. Interested parties may access details at: Conference ID: 579 261 752 United States (Toll-Free): (833) 461-5787 International (Toll): +1 (585) 542-9983 Live webcast can be accessed here The webcast may be accessed on the company’s investor relations website at investors.tempus.com. For those unable to listen to the live webcast, a recording will be made available on the company’s website after the event and will be accessible for one year. Visit the investor relations website to nd the company’s latest deck, and commentary on the quarter by Eric Lefkofsky, Founder and CEO, and Jim Rogers, CFO, which will be discussed on the conference call and webcast. About Tempus Tempus is a technology company making precision medicine a reality through the practical application of arti cial intelligence in healthcare. With one of the world’s largest libraries of de-identi ed multimodal data and an intelligent operating system that makes that data accessible and actionable, Tempus connects AI, diagnostics and 3
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clinical work ows to deliver more personalized patient care and accelerate the discovery, development and delivery of better medicines. By continuously transforming data into insights, Tempus is building a learning healthcare ecosystem in which every patient can bene t from the treatment and experiences of those who came before. For more information, visit tempus.com and follow Tempus on LinkedIn, Instagram, and X. Non-GAAP Financial Measures In addition to the nancial information presented in this release in accordance with accounting principles generally accepted in the United States of America (GAAP), Tempus also presents adjusted non-GAAP nancial measures. Non-GAAP gross pro t is de ned as GAAP gross pro t, excluding stock-based compensation expense and employer payroll tax related to stock-based compensation (collectively, the “stock-based compensation adjustments”). Non-GAAP gross margin is de ned as gross pro t, excluding the stock-based compensation adjustments, as a percentage of revenue. Non-GAAP operating expenses are calculated as the sum of technology research and development expense, research and development expense, and selling, general and administrative expense, excluding the stock-based compensation adjustments, acquisition-related expenses, amortization of intangibles due to acquisition, and franchise taxes related to IPO. Non-GAAP income (loss) from operations is de ned as loss from operations, adjusted to exclude (i) the stock-based compensation adjustments, (ii) acquisition-related expenses, (iii) franchise taxes related to IPO, and (iv) amortization of intangibles due to acquisition. Non-GAAP net income (loss) is de ned as net loss, adjusted to exclude (i) changes in fair value of our marketable equity securities and indemnity-related holdback liabilities, (ii) the stock-based compensation adjustments, (iii) acquisition-related expenses, (iv) amortization of intangibles due to acquisition, (v) losses (gains) from equity method investments, (vi) provision for (bene t from) income taxes, (vii) franchise taxes related to IPO, (viii) amortization of deferred other income from our IP License Agreement with SB Tempus, and (ix) loss on debt extinguishment. Non-GAAP net income (loss) per share is de ned as non-GAAP net income (loss) divided by weighted average common shares outstanding, basic and diluted. Adjusted EBITDA is de ned as net loss, adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) provision for (bene t from) income taxes, (v) losses (gains) from equity method investments, (vi) changes in fair value of our marketable equity securities and indemnity-related holdback liabilities, (vii) the stock-based compensation adjustments, (viii) acquisition-related expenses, (ix) amortization of deferred other income from our IP License Agreement with SB Tempus, (x) franchise taxes related to our IPO, and (xi) loss on debt extinguishment. Tempus believes these non-GAAP nancial measures are useful to investors and others because they allow for 4
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additional information with respect to nancial measures used by management in its nancial and operational decision-making and they may be used by institutional investors and the analyst community to help them analyze the health of Tempus’ business. In particular, Adjusted EBITDA is a key measurement used by Tempus management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, there are a number of limitations related to the use of non-GAAP nancial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our nancial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP nancial measures di erently or not at all, which reduces their usefulness as comparative measures. Tempus does not provide guidance for net loss, the most directly comparable GAAP measure to Adjusted EBITDA, and similarly cannot provide a reconciliation between Tempus’ forecasted Adjusted EBITDA and net loss without unreasonable e ort due to the unavailability of reliable estimates for certain components of net loss and the respective reconciliations. These forecasted items are not within Tempus’ control, may vary greatly between periods, and could signi cantly impact future nancial results. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and its industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, Tempus’ expected nancial results for full year 2026; expectations concerning Tempus' collaborations and partnerships; Tempus' competitive position; and the pending acquisition of Personalis. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release. You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward- looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may a ect Tempus’ business, nancial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: the intended use of Tempus’ products and services; Tempus’ nancial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the arti cial intelligence space; 5
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the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain quali ed team members and key personnel; the ability to repay or re nance outstanding debt, or to access additional nancing; future acquisitions, divestitures or investments, including Tempus' ability to consummate the acquisition of Personalis on the contemplated terms or at all and Tempus’ ability to realize the expected bene ts of the acquisition of Paige AI, Ambry Genetics, Deep 6 AI, Center Health, and, if consummated, Personalis; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed con ict, as well as risks, uncertainties, and other factors described in the section titled “Risk Factors” in Tempus’ Form 10-K for the year ended December 31, 2025, led with the Securities and Exchange Commission (the "SEC") on February 24, 2026, as well as in other lings Tempus may make with the SEC from time to time. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to re ect events or circumstances after the date of this press release or to re ect new information or the occurrence of unanticipated events, except as required by law. Tempus AI, Inc.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(Unaudited)(in thousands, except per share amounts)Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 2026 2025 2026 2025 Net revenue Diagnostics $ 303,470$ 252,878$ 853,901$ 688,525 Data and applications 108,06781,328288,238216,053 Total net revenue $ 411,537$ 334,206$ 1,142,139$ 904,578 Cost and operating expenses Cost of revenues, diagnostics114,04298,643323,235283,182Cost of revenues, data and applications30,794 25,621 83,664 61,212Technology research and development45,708 38,087135,558105,960Research and development 46,000 44,960146,874122,453Selling, general and administrative231,857187,891670,296523,230 Total cost and operating expenses468,401395,2021,359,6271,096,037 Loss from operations $ (56,864) $ (60,996) $ (217,488) $ (191,459) Interest income 3,985 4,600 11,748 7,506Interest expense (6,701) (15,399) (31,325) (54,981)Loss on debt extinguishment — (12,034) (11,643) (12,034) Other income, net 47,132 2,605 122,18016,879 Loss before (provision for) bene t from income taxes$ (12,448) $ (81,224) $ (126,528) $ (234,089)(Provision for) bene t from income taxes(35) (276) (282) 45,692 (Losses) gains from equity method investments(2,368) 1,518 (8,318) (2,465) Net loss $ (14,851) $ (79,982) $ (135,128) $ (190,862) Net loss per share, basic and diluted$ (0.08) $ (0.46) $ (0.75) $ (1.10)Weighted-average shares outstanding used to compute net loss pershare, basic and diluted 181,311174,945180,049172,969 Comprehensive loss, net of tax Net loss $ (14,851) $ (79,982) $ (135,128) $ (190,862) Foreign currency translation adjustment2,107 (2,915) (736) 5,439 Comprehensive loss $ (12,744) $ (82,897) $ (135,864) $ (185,423) Includes related party revenue from Pathos AI, Inc. of $0 and $225 for the three months ended September 30, 2026 and 2025, respectively. Includesrelated party revenue from Pathos AI, Inc. of $190 and $226 for the nine months ended September 30, 2026 and 2025, respectively. Refer to Note 16,Related Parties. Includes related party revenue from Pathos AI, Inc. of $22,061 and $24,907 for the three months ended September 30, 2026 and 2025, respectively.Includes related party revenue from Pathos AI, Inc. of $65,718 and $41,445 for the nine months ended September 30, 2026 and 2025, respectively.Rf N 16Rl dPi Ali ld l d f SBT C f$0d$6253f hh h ddS b (1) (2) (3) (1) (2) 6
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Refer to Note 16, Related Parties. Also includes related party revenue from SB Tempus Corp. of $0 and $6,253 for the three months ended September30, 2026 and 2025, respectively. Includes related party revenue from SB Tempus Corp. of $6,241 and $18,743 for the nine months ended September30, 2026 and 2025, respectively. Refer to Note 7, Joint Venture.Includes related party other income from SB Tempus Corp. of $3,989 for each of the three months ended September 30, 2026 and 2025. Includesrelated party other income from SB Tempus Corp. of $11,966 for each of the nine months ended September 30, 2026 and 2025. Refer to Note 7, JointVenture. Tempus AI, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(in thousands, except share and per share amounts)September 30, 2026December 31, 2025Assets Current AssetsCash and cash equivalents $ 590,479$ 604,787Accounts receivable, net of allowances of $4,378 and $2,755 at September 30, 2026 andDecember 31, 2025, respectively 380,744 311,170Inventory 53,773 51,724Related party asset 17,500 8,785Prepaid expenses and other current assets47,507 40,498 Marketable equity securities 46,874 150,211 Total current assets $ 1,136,877$ 1,167,175Property and equipment, net 95,186 89,156Goodwill 488,142 470,211Intangible assets, net 293,815 349,202Capitalized software, net 40,561 6,051Marketable equity securities, less current portion212,276 —Investments and other assets 16,241 21,111Investment in joint venture 77,635 86,557Investment in related party 17,500 —Related party asset, less current portion 10,208 16,215Operating lease right-of-use assets 58,402 64,496 Restricted cash 4,755 4,664 Total Assets $ 2,451,598$ 2,274,838 Liabilities, Convertible redeemable preferred stock, and Stockholders'equity Current LiabilitiesAccounts payable 70,506 81,994Related party payable 10,000 —Accrued expenses 232,976 155,370Deferred revenue 85,931 92,673Deferred other income 11,966 15,955Other current liabilities 12,146 8,680Operating lease liabilities 11,584 13,355 Accrued data licensing fees 1,296 4,361 Total current liabilities $ 436,405$ 372,388Includes related party accounts receivable from Pathos AI, Inc. of $12,092 and $6,428 as of September 30, 2026 and December 31, 2025,respectively. Refer to Note 16, Related Parties. Also includes related party accounts receivable from SB Tempus Corp. of $318 and $173 as ofSeptember 30, 2026 and December 31, 2025, respectively. Refer to Note 7, Joint Venture.Includes related party deferred revenue from Pathos AI, Inc. of $103 and $3,938 as of September 30, 2026 and December 31, 2025, respectively.Refer to Note 16, Related Parties. Also includes related party deferred revenue from SB Tempus Corp. of $0 and $6,235 as of September 30, 2026 andDecember 31, 2025, respectively. Refer to Note 7, Joint Venture.Deferred other income balances solely related to SB Tempus Corp. Refer to Note 7, Joint Venture. Tempus AI, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(in thousands, except share and per share amounts)September 30, 2026December 31, 2025 Operating lease liabilities, less current portion69,483 74,272Convertible promissory note 175,967 208,672Other long-term liabilities 51,449 56,600Revolving credit facility — 100,000Interest payable 22,501 12,393Long-term debt, net — 202,753C ibl i 1174877 728078 (3) (1) (2) (3) (1) (2) (3) 7
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Convertible senior notes, net 1,174,877 728,078Deferred other income, less current portion— 7,977 Deferred revenue, less current portion 20,514 20,379 Total Liabilities $ 1,951,196$ 1,783,512 Commitments and contingencies (Note 8)Convertible redeemable preferred stock, $0.0001 par value, 20,000,000 shares authorizedat September 30, 2026 and December 31, 2025, respectively, no shares outstanding atSeptember 30, 2026 and December 31, 2025$ —$ — Stockholders' equity Class A Common Stock, $0.0001 par value, 1,000,000,000 shares authorized at September30, 2026 and December 31, 2025, respectively; 177,182,062 and 173,235,428 sharesoutstanding at September 30, 2026 and December 31, 2025, respectively18 17Class B Common Stock, $0.0001 par value, 5,500,000 shares authorized at September 30,2026 and December 31, 2025, respectively; 5,043,789 outstanding at September 30, 2026and December 31, 2025, respectively 1 1Treasury Stock, 203,431 and 183,229 shares at September 30, 2026 and December 31,2025, respectively, at cost (6,642) (6,642)Additional paid-in capital 3,037,849 2,892,910Accumulated other comprehensive income166 902 Accumulated de cit (2,530,990) (2,395,862) Total Stockholders' equity $ 500,402$ 491,326 Total Liabilities, Convertible redeemable preferred stock, andStockholders' equity $ 2,451,598$ 2,274,838 Deferred other income balances solely related to SB Tempus Corp. Refer to Note 7, Joint Venture. Tempus AI, Inc.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(in thousands) Nine Months Ended September 30, 20262025 Operating activities Net loss $(135,128) $(190,862)Adjustments to reconcile net loss to net cash used in operating activitiesStock-based compensation 154,90179,408Gain on marketable equity securities (108,939) (4,731)Loss on disposal of property and equipment 375 —Deferred income taxes — (46,216)Losses from equity method investments 8,3182,465Amortization of original issue discount 5,0082,615Amortization of deferred nancing fees 260 398Change in fair value of holdback liability 1,189 291Loss on debt extinguishment 11,64312,034Depreciation and amortization 78,39275,416Provision for bad debt expense 2,450 767Provision for obsolete inventory 111 1,135Non-cash operating lease costs 10,2967,866Minimum accretion expense 97 109PIK interest added to principal 1,6748,839Change in assets and liabilitiesAccounts receivable (71,839) (63,199)Inventory (2,160) (6,537)Prepaid expenses and other current assets (6,997) (3,991)Investments and other assets 1,883(16,700)Accounts payable (49,250) (18,528)Related party asset 7,292(25,000)Deferred revenue (24,107) 17,398Deferred other income (11,966) (11,966)Accrued data licensing fees (3,180) 3,730Accrued expenses & other 58,493(5,179)Interest payable 10,36010,288 Operating lease liabilities (10,762) (11,152) Net cash used in operating activities$ (71,586) $(181,302) Includes increase in related party accounts receivable from Pathos AI, Inc. of $5,664 and $2,352 for the nine months ended September 30, 2026 and2025, respectively. Refer to Note 16, Related Parties. Includes increase in related party accounts receivable from SB Tempus Corp. of $145 and $108for the nine months ended September 30, 2026 and 2025, respectively. Refer to Note 7, Joint Venture. Includes decrease in related party deferred revenue from Pathos AI, Inc. of $3,835 for the nine months ended September 30, 2026. Includesincrease in related party deferred revenue from Pathos AI, Inc. of $19,918 for the nine months ended September 30, 2025, respectively. Refer to Note16, Related Parties. Also includes decrease in related party deferred revenue from SB Tempus Corp. of $6,235 and $18,737 for the nine months endedSeptember 30, 2026 and 2025, respectively. Refer to Note 7, Joint Venture.Includes decrease in related party deferred other income from SB Tempus Corp. of $11,966 for each of the nine months ended September 30, 2026 d2025Rf N 7Ji V (3) (3) (1) (2) (3) (1) (2) (3) 8
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and 2025. Refer to Note 7, Joint Venture. Tempus AI, Inc.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(in thousands) Nine Months Ended September 30, 20262025 Investing activities Purchases of property and equipment $ (23,665) $ (16,294)Proceeds from sale of marketable equity securities— 8,316Business combinations, net of cash acquired (Note 4)(2,763) (375,025) Capitalized software costs (12,252) (4,635) Net cash used in investing activities$ (38,680) $(387,638) Financing activities Proceeds from convertible senior notes, net of initial purchasers' discount443,132726,497Principal payments on long-term debt (207,717) (276,892)Principal payments on revolving credit facility (100,000) —Prepayment premium on long-term debt (6,433) (7,841)Payment of deferred o ering costs (264) (501)Purchases of capped call (31,234) (41,775)Proceeds from revolving credit facility, net of original issue discount— 98,000Proceeds from long-term debt, net of original issue discount— 196,000Proceeds from issuance of common stock in connection with at-the-market o ering, net of commissions— 195,499 Payment of deferred nancing fees (1,349) (1,255) Net cash provided by nancing activities$ 96,135$887,732 E ect of foreign exchange rates on cash $ (86) $ (78) Net (decrease) increase in Cash, Cash Equivalents and Restricted Cash$ (14,217) $318,714 Cash, cash equivalents and restricted cash, beginning of period609,451341,835 Cash, cash equivalents and restricted cash, end of period$595,234$660,549 Cash, Cash Equivalents and Restricted Cash are Comprised of: Cash and cash equivalents $590,479$655,918 Restricted cash and cash equivalents 4,7554,631 Total cash, cash equivalents and restricted cash$595,234$660,549 Supplemental disclosure of cash ow information Cash paid during the year for interest $ 15,111$ 37,349 Cash paid for income taxes $ 246$ 573 Preferred stock received on accounts receivable$ 17,500$ — Includes related party preferred stock of Pathos AI, Inc. of $17,500 for the nine months ended September 30, 2026. Tempus AI, Inc.Condensed Consolidated Statements of Cash Flows(Unaudited)(in thousands) Nine Months Ended September 30, 20262025 Supplemental disclosure of noncash investing and nancing activities 10226 3724 (4) (4) 9
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Purchases of property and equipment, accrued but not paid$ 10,226$ 3,724 Redemption of convertible promissory note$ 32,705$ 22,721 Deferred nancing fees, accrued but not yet paid$ —$ 489 Deferred o ering costs, accrued but not yet paid$ 71$ 320 Reclassi cation of deferred o ering costs to additional paid-in capital upon at-the-market o ering$ —$ 821 Operating lease liabilities arising from obtaining right-of-use assets$ 360$ 22,670 Capitalized software costs, accrued but not yet paid$ 21,536$ — Class A Common Stock issued in connection with business combinations$ 13,319$403,154 Class A Common Stock issued in connection with license agreement$ —$ 1,443 Class A Common Stock issued in connection with holdback liability$ 6,173$ — Convertible promissory note principal reset due to amendment$ —$ 72,488 Tempus AI, Inc.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited)(in thousands, except percentages and per share amounts) Diagnostics Gross Pro t & Gross MarginThree Months Ended September 30,Nine Months Ended September 30, 2026202520262025 Diagnostics revenue $ 303,470$ 252,878$ 853,901$ 688,525Cost of revenues, diagnostics 114,04298,643323,235283,182 Gross pro t, diagnostics $ 189,428$ 154,235$ 530,666$ 405,343Stock-based compensation expense3,037 1,631 8,795 4,086Employer payroll tax related to stock-based compensation150 36 608 338 Non-GAAP gross pro t, diagnostics$ 192,615$ 155,902$ 540,069$ 409,767 Diagnostics gross margin 62.4% 61.0% 62.1% 58.9%Stock-based compensation expense1.0% 0.6% 1.0% 0.6%Employer payroll tax related to stock-based compensation0.0% 0.0% 0.1% 0.0% Non-GAAP gross margin, diagnostics63.5% 61.7% 63.2% 59.5% Data and applications Gross Pro t & Gross MarginThree Months Ended September 30,Nine Months Ended September 30, 2026202520262025 Data and applications revenue$ 108,067$ 81,328$ 288,238$ 216,053Cost of revenues, data and applications30,79425,62183,66461,212 Gross pro t, data and applications$ 77,273$ 55,707$ 204,574$ 154,841Stock-based compensation expense1,214 894 3,735 2,198Employer payroll tax related to stock-based compensation94 62 331 220 Non-GAAP gross pro t, data and applications$ 78,581$ 56,663$ 208,640$ 157,259 Gross margin, data and applications71.5% 68.5% 71.0% 71.7%Stock-based compensation expense1.1% 1.1% 1.3% 1.0%Employer payroll tax related to stock-based compensation0.1% 0.1% 0.1% 0.1% Non-GAAP gross margin, data and applications72.7% 69.7% 72.4% 72.8% 10
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Total Gross Pro t & Gross MarginThree Months Ended September 30,Nine Months Ended September 30, 2026202520262025 Net revenue $ 411,537$ 334,206$1,142,139$ 904,578Cost of revenues 144,836124,264406,899344,394 Gross pro t $ 266,701$ 209,942$ 735,240$ 560,184Stock-based compensation expense4,251 2,525 12,5306,284Employer payroll tax related to stock-based compensation245 98 940 558 Non-GAAP gross pro t $ 271,197$ 212,565$ 748,710$ 567,026 Gross margin 64.8% 62.8% 64.4% 61.9%Stock-based compensation expense1.0% 0.8% 1.1% 0.7%Employer payroll tax related to stock-based compensation0.1% 0.0% 0.1% 0.1% Non-GAAP gross margin 65.9% 63.6% 65.6% 62.7% Operating Expenses Three Months Ended September 30,Nine Months Ended September 30, 2026202520262025 Technology research and development$ 45,708$ 38,087$ 135,558$ 105,960Stock-based compensation expense7,954 5,46326,10112,067Employer payroll tax related to stock-based compensation615 278 1,785 1,034 Non-GAAP technology research and development$ 37,139$ 32,346$ 107,672$ 92,859 Research and development $ 46,000$ 44,960$ 146,874$ 122,453Stock-based compensation expense5,432 3,30115,2847,618Employer payroll tax related to stock-based compensation274 122 1,005 533 Non-GAAP research and development$ 40,294$ 41,537$ 130,585$ 114,302 Selling, general and administrative$ 231,857$ 187,891$ 670,296$ 523,230Stock-based compensation expense30,43722,690100,98653,439Employer payroll tax related to stock-based compensation1,615 541 4,071 6,040Acquisition related expenses 3,728 552 4,714 6,073Amortization of intangibles due to acquisition16,73516,76450,20744,691Franchise taxes related to IPO — — — 1,647 Non-GAAP selling, general and administrative$ 179,342$ 147,344$ 510,318$ 411,340 Operating expenses $ 323,565$ 270,938$ 952,728$ 751,643Stock-based compensation expense43,82331,454142,37173,124Employer payroll tax related to stock-based compensation2,503 941 6,860 7,607Acquisition related expenses 3,728 552 4,714 6,073Amortization of intangibles due to acquisition16,73516,76450,20744,691Franchise taxes related to IPO — — — 1,647 Non-GAAP operating expenses$ 256,776$ 221,227$ 748,576$ 618,501 Acquisition related expenses consist of legal, diligence, accounting, and nancing costs incurred for acquisitions during the three and nine monthsended September 30, 2026 and 2025. Loss from Operations Three Months Ended September 30,Nine Months Ended September 30, 2026202520262025 (1) (1) (1) 11
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Loss from operations $ (56,864) $ (60,996) $ (217,488) $ (191,459)Stock-based compensation expense48,07433,979154,90179,408Employer payroll tax related to stock-based compensation2,749 1,039 7,800 8,165Acquisition related expenses 3,728 552 4,714 6,073Franchise taxes related to IPO — — — 1,647Amortization of intangibles due to acquisition16,73516,76450,20744,691 Non-GAAP income (loss) from operations$ 14,422$ (8,662) $ 134$ (51,475) Acquisition related expenses consist of legal, diligence, accounting, and nancing costs incurred for acquisitions during the three and nine monthsended September 30, 2026 and 2025. Earnings per Share Three Months Ended September 30,Nine Months Ended September 30, 2026 2025 20262025 Net loss $ (14,851) $ (79,982) $ (135,128) $ (190,862)Fair value changes (41,490) 1,255(107,750) (4,441)Stock-based compensation expense48,07433,979154,90179,408Employer payroll tax related to stock-based compensation2,749 1,039 7,800 8,165Acquisition related expenses 3,728 552 4,714 6,073Amortization of intangibles due to acquisition16,73516,76450,20744,691Losses (gains) from equity method investments2,368 (1,518) 8,318 2,465Provision for (bene t from) income taxes35 276 282 (45,692)Franchise taxes related to IPO — — — 1,647Amortization of technology license(3,989) (3,989) (11,966) (11,966)Loss on debt extinguishment — 12,03411,64312,034 Non-GAAP net income (loss) $ 13,359$ (19,590) $ (16,979) $ (98,478)Non-GAAP net income (loss) per share, basic and diluted$ 0.07$ (0.11) $ (0.09) $ (0.57)Weighted average common shares outstanding, basic and diluted181,311174,945180,049172,969 Fair value changes include gains and losses related to quarterly fair value adjustments of our marketable equity securities and indemnity-relatedholdback liabilities.Acquisition related expenses consist of legal, diligence, accounting, and nancing costs incurred for acquisitions during the three and nine monthsended September 30, 2026 and 2025. Adjusted EBITDA Three Months Ended September 30,Nine Months Ended September 30, 2026202520262025 Net loss $ (14,851) $ (79,982) $ (135,128) $ (190,862)Interest income (3,985) (4,600) (11,748) (7,506)Interest expense 6,70115,39931,32554,981Depreciation 7,338 8,12021,88824,350Amortization 18,89418,91156,50451,066Provision for (bene t from) income taxes35 276 282 (45,692) EBITDA $ 14,132$ (41,876) $ (36,877) $ (113,663)Losses (gains) from equity method investments2,368 (1,518) 8,318 2,465Fair value changes (41,490) 1,255(107,750) (4,441)Stock-based compensation expense48,07433,979154,90179,408Employer payroll tax related to stock-based compensation2,749 1,039 7,800 8,165A iii l d 3728 552 4714 6073 (1) (1) (1) (2) (1) (2) (1) (2) 12
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Acquisition related expenses 3,728 552 4,714 6,073Amortization of technology license(3,989) (3,989) (11,966) (11,966)Franchise taxes related to IPO — — — 1,647Loss on debt extinguishment — 12,03411,64312,034 Adjusted EBITDA $ 25,572$ 1,476$ 30,783$ (20,278) Fair value changes include gains and losses related to quarterly fair value adjustments of our marketable equity securities and indemnity-relatedholdback liabilities.Acquisition related expenses consist of legal, diligence, accounting, and nancing costs incurred for acquisitions during the three and nine monthsended September 30, 2026 and 2025. Investors Kendra Webster investorrelations@tempus.com Media Kelli Manalli kelli.manalli@tempus.com Source: Tempus AI, Inc. (2) (1) (2) 13