Tempus AI Inc. reported strong financial results for the second quarter of 2025, with adjusted earnings per share (EPS) of negative $0.22, beating the consensus estimate of negative $0.24. The company’s revenue surged 89.6% year-over-year to $314.6 million, surpassing the estimated $296.85 million. Gross profit rose 158.3% to $195 million, while adjusted EBITDA improved to a loss of $5.6 million from a larger loss in the prior year. The company performed 212,000 next-generation sequencing (NGS) tests during the quarter. Segment revenues included $241.8 million from genomics, marking a 115% increase, and $72.8 million from data and services, up 36%. Net loss narrowed significantly to $42.8 million from $552.2 million in the previous year. Cash reserves increased by $70 million quarter-over-quarter to $293 million, supported by a $750 million convertible note issuance at 0.75% interest. Management raised the full-year 2025 revenue guidance to approximately $1.26 billion, up from the prior estimate of $1.25 billion, representing an 82% increase year-over-year. The company also projects achieving a positive adjusted EBITDA of $5 million for the full year. The CEO highlighted faster-than-expected growth and improved margins, with clinical volumes increasing by 30% in the quarter. Following the earnings release, analysts raised price targets, with Morgan Stanley maintaining an overweight rating and increasing its target price to $68 from $65. Tempus AI shares rose over 10% in after-hours trading and have been closely watched for a move above the $65.60-$66 range.