Tempus delivered the kind of quarter that forces you to reconsider where the company sits in its maturity curve. Revenue in Q3 2025 grew 84.7% year-over-year to $334.2 million, driven primarily by continued strength in genomic testing and accelerating demand across both oncology and hereditary diagnostics. Importantly, the company did not just grow the top line; it expanded profitability leverage as well. Gross profit nearly doubled to $209.9 million, reflecting scale efficiencies and a tightening operational cost structure. The company delivered 217,000 clinical tests in the period, a 33% year-over-year volume increase, which is meaningful because volume growth remains the core long-term driver of model accuracy and competitive data advantage in precision medicine.
Within genomics, oncology testing revenue reached $139.5 million, up 31.7% year-over-year, supported by approximately 27% volume growth. Hereditary testing contributed $102.6 million, rising 32.8% on a pro forma basis with volume growing 37%. These figures suggest broad-based momentum, not a narrow spike. The Data and Services segment added $81.3 million in revenue, up 26%, led by the Insights business, which grew 37.6%. This is worth noting, because the Insights line is effectively the monetization layer for Tempus’ data network. As the company increases the breadth and clinical depth of its dataset, the monetization path becomes less tied to pure testing revenue and more to platform-derived value, which generally carries higher incremental margins.
Adjusted EBITDA turned positive in the quarter at $1.5 million, compared to a loss of $21.8 million last year. While net loss remained elevated at $80 million due to stock-based compensation, amortization tied to the Ambry acquisition, and a one-time debt extinguishment expense, the core operational signal is improving. The company ended the quarter with $764.3 million in cash and marketable securities, providing sufficient liquidity to support continued investment. The acquisition of Paige brings digital pathology assets that introduce another significant data modality into the Tempus network. Management expects this acquisition to add roughly $5 million of quarterly operating losses in the near term, but strategically it strengthens Tempus’ footprint across cancer diagnosis, treatment selection, and outcome monitoring.
The company raised full-year revenue guidance to $1.265 billion, representing approximately 80% year-over-year growth. Management expects Q4 adjusted EBITDA of ~$20 million and slightly positive adjusted EBITDA for the full year. The key takeaway is that Tempus is beginning to demonstrate operating leverage while still sustaining high growth rates. That is a signal of a business transitioning into scale rather than one still dependent on outsized reinvestment to drive expansion.
From a positioning standpoint, Tempus is increasingly operating less like a testing vendor and more like a data and AI infrastructure provider embedded directly into clinical workflows. The pace of FDA clearances, healthcare system integrations, and government program involvement (including ARPA-H) all point toward institutional entrenchment rather than transactional adoption. For investors, the path forward hinges on the durability of test volume growth and the expansion of the Insights revenue line. If Tempus continues to show that it can convert its growing data corpus into recurring, high-margin software and analytics revenue, the long-term margin profile shifts materially upward. The quarter indicates that this transition is underway and gaining speed.