How does Tempus AI (TEM) make money?

Tempus AI (TEM) generates revenue primarily from Diagnostics, which accounted for 100% of total revenue in TTM through Q1 2026. The company reported $1.36B in revenue and converted -22.2% of it into net profit, equivalent to roughly −$302.91M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Tempus AI (TEM)?

Tempus AI (TEM) reported a gross profit margin of 69.6% in TTM through Q1 2026, equivalent to $948.83M in gross profit on $1.36B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Tempus AI (TEM)?

Tempus AI (TEM) reported an operating profit margin of -18.1% in TTM through Q1 2026, equivalent to −$247.26M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Tempus AI (TEM)?

Tempus AI (TEM) reported a net profit margin of -22.2% in TTM through Q1 2026, equivalent to −$302.91M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Tempus AI (TEM) profitable?

Tempus AI (TEM) reported a net loss of $302.91M for TTM through Q1 2026, a net profit margin of -22.2%. Combined operating expenses, interest, and income taxes exceeded revenue, so the period closed in the red on a reported basis.

How much does Tempus AI (TEM) invest in research and development?

Tempus AI (TEM) invested $276.99M in research and development during TTM through Q1 2026, roughly 20.3% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Tempus AI (TEM) spend on capital expenditures?

Tempus AI (TEM) spent $30.75M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 2.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Tempus AI (TEM) generate?

Tempus AI (TEM) generated −$216.50M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of -15.9%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

How Tempus AI Makes Money: 2026 Visual Revenue Map

Tempus AI (TEM) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 5, 2026).

Tempus AI discloses geographic revenue only in annual filings. to view the full breakdown.

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Revenue Counter$43.26/s
Earnings Counter−$9.61/s
Economic Scale> Vanuatu

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Buybacks0.04% TTM

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