TempusAI (TEM, Financial) and Personalis have expanded their collaboration to include a new focus on colorectal cancer (CRC) within their exclusive commercialization agreement. This partnership will now bring the NeXT Personal ultra-sensitive, tumor-informed minimal residual disease test to market, aimed at detecting cancer recurrence in breast, lung, and colorectal cancers, alongside solid tumor immunotherapy monitoring.
The inclusion of CRC follows impressive interim analysis results from the VICTORI study, showcased at the 2025 American Association for Cancer Research Annual Meeting. These findings highlighted the effectiveness of NeXT Personal in identifying early indications of residual or recurrent CRC.
Under the revised agreement, TempusAI will continue as Personalis’ exclusive commercial partner for this test across four cancer types. The partnership has been extended until November 2029, with TempusAI's exclusivity lasting until 2028, furthering efforts to accelerate the adoption of NeXT Personal.
TEM Key Business Developments
Release Date: May 06, 2025
- Quarterly Revenue: Increased 75.4% year-over-year to $255.7 million.
- Genomics Revenue: $193.8 million, representing 89% year-over-year growth.
- Oncology Testing Growth: 31% year-over-year with approximately 20% volume growth.
- Hereditary Testing Revenue: $63.5 million, with unit growth of 23%.
- Data and Services Revenue: $61.9 million, a 43% year-over-year increase.
- Gross Profit: $155.2 million, a 99.8% year-over-year growth.
- Adjusted EBITDA: Negative $16.2 million, improved by $27.8 million year-over-year.
- Full Year 2025 Revenue Guidance: Increased to $1.25 billion, representing about 80% year-over-year growth.
- Data and Modeling License Agreement: 3-year $200 million agreement with AstraZeneca and Pathos.
- Total Remaining Contract Value: Greater than $1 billion as of April 30.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quarterly revenue increased by 75.4% year-over-year to $255.7 million, showcasing strong financial performance.
- Genomics revenue saw an impressive 89% year-over-year growth, contributing significantly to overall revenue.
- The company announced a 3-year $200 million data and modeling license agreement with AstraZeneca and Pathos, enhancing its strategic partnerships.
- Adjusted EBITDA improved significantly, reducing the loss from $43.9 million in Q1 2024 to $16.2 million in Q1 2025.
- Tempus AI Inc (TEM, Financial) raised its full-year 2025 revenue guidance to $1.25 billion, indicating confidence in continued growth.
Negative Points
- Despite revenue growth, the company reported a negative adjusted EBITDA of $16.2 million, indicating ongoing financial challenges.
- The cost of compute for the new data model is significant, although partially covered by partners.
- The MRD (Minimal Residual Disease) tests are not yet reimbursed by MolDx, leading to metered volumes and potential revenue limitations.
- There is a risk of over-reliance on large pharma contracts, which could be impacted by broader economic conditions.
- The hereditary testing business, while performing well, is still subject to market perceptions of commoditization and long-term growth uncertainty.
