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Tempus AI Raises 2026 Revenue Outlook Following Profitable Second Quarter

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TEM$64.02 −1.09%

Tempus AI, Inc. (TEM) reported second-quarter 2026 revenue of $382.5 million, up 22% from the prior-year period. The company achieved GAAP net income of $5.6 million, while adjusted EBITDA reached $8 million, improving from a loss of $5.6 million a year earlier. Operating cash outflows narrowed to $7.5 million for the quarter.

The improved operating performance was supported by revenue growth and interest savings from capital restructuring. Tempus AI completed a $460 million offering of 0.0% convertible senior notes due 2032 and used part of the proceeds to pay off an outstanding loan from Ares Capital. This debt repayment is expected to lower annual interest costs by more than $30 million and help fund ongoing operations.

Following the quarterly results, Tempus AI raised its full-year 2026 revenue guidance to between $1.595 billion and $1.605 billion, representing approximately 25% annual growth. The company reaffirmed its full-year adjusted EBITDA forecast of about $65 million and expects to achieve positive free cash flow by the end of 2026.

Key points

  • Second-quarter 2026 revenue rose 22% year over year to $382.5 million, generating GAAP net income of $5.6 million.
  • Adjusted EBITDA reached $8 million, marking a $13.6 million improvement from a loss of $5.6 million a year ago.
  • A $460 million convertible note transaction enabled repayment of an Ares Capital loan, cutting expected annual interest by over $30 million.
  • Full-year 2026 revenue guidance was increased to $1.595-$1.605 billion, while adjusted EBITDA guidance was kept at about $65 million.
  • The company held $820.7 million in cash, cash equivalents, and marketable securities at quarter end.

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Questions and answers

What were Tempus AI's revenue results for the second quarter of 2026?

Tempus AI generated $382.5 million in revenue during the second quarter of 2026, representing a 22% increase compared to the same period in the prior year.

Did Tempus AI update its full-year 2026 financial guidance?

Yes, Tempus AI raised its full-year 2026 revenue outlook to between $1.595 billion and $1.605 billion, implying around 25% growth. It maintained its full-year adjusted EBITDA forecast of about $65 million.

How does Tempus AI plan to reduce its annual interest expenses?

Tempus AI completed a $460 million offering of zero-percent convertible senior notes to pay off an outstanding loan, which is projected to lower annual interest costs by more than $30 million.