Tempus AI, a leader in artificial intelligence and precision medicine, announced strong fourth quarter and full year 2024 results, highlighted by the completion of its strategic acquisition of Ambry Genetics on February 3, 2025. The company also reported significant advancements in its diagnostic capabilities and network expansion.
Strategic Acquisition Strengthens Market Position
The acquisition of Ambry Genetics represents a major milestone in Tempus AI's growth strategy, expanding its capabilities in genomic testing and precision medicine. This strategic move is expected to significantly enhance the company's ability to deliver AI-enabled healthcare solutions across a broader patient population.
"This acquisition positions us to better serve patients and healthcare providers through our combined expertise in genomic testing and artificial intelligence," said Eric Lefkofsky, Founder and CEO of Tempus, during the company's earnings call.
Diagnostic Advancements and Reimbursement Wins
A key highlight of Tempus's fourth quarter was the national launch of its FDA-approved, next-generation sequencing (NGS) based in vitro diagnostic device, xT CDx. The diagnostic tool received Advanced Diagnostic Laboratory Test (ADLT) status, securing a reimbursement rate of $4,500 per test—a significant achievement that enhances the commercial viability of this precision medicine solution.
Additionally, Tempus announced a favorable decision from the Centers for Medicare and Medicaid Services (CMS) that will allow reimbursement for cardiac dysfunction assessments using the company's ECG-AF algorithm at a rate of $138 per algorithm. This development opens new revenue streams in cardiovascular care, expanding beyond the company's traditional oncology focus.
Network Expansion and Payer Relationships
Tempus continued to strengthen its healthcare network, now connecting to approximately 3,000 providers across the United States. The company also made significant progress in securing in-network provider status with major insurers, including Blue Cross Blue Shield of Illinois, Blue Shield of California, and Avalon Healthcare Solutions.
These payer relationships are crucial for improving patient access to Tempus's diagnostic tools and AI-powered solutions, potentially accelerating adoption among healthcare providers and expanding the company's market reach.
Strong Financial Outlook for 2025
Following these developments, Tempus has provided an optimistic financial outlook for 2025. The company expects consolidated revenue of approximately $1.24 billion for the combined Tempus and Ambry Genetics business, representing approximately 79% annual growth.
Tempus also projects Adjusted EBITDA of $5 million for full year 2025, marking an improvement of approximately $110 million over 2024. This trajectory toward profitability reflects the company's successful execution of its growth strategy and the anticipated synergies from the Ambry Genetics acquisition.
AI-Driven Precision Medicine Strategy
Tempus continues to leverage its extensive library of multimodal data and AI capabilities to advance precision medicine. The company's operating system makes complex healthcare data accessible and useful for physicians, enabling more personalized patient care while simultaneously facilitating the discovery and development of optimal therapeutics.
"Our goal remains for each patient to benefit from the treatment experiences of those who came before, by providing physicians with tools that continuously learn as we gather more data," explained Lefkofsky.
Market Position and Future Outlook
As a publicly traded company on NASDAQ under the ticker symbol TEM, Tempus is positioning itself at the intersection of artificial intelligence and healthcare—two rapidly evolving sectors with significant growth potential.
The company's expanding network of providers, growing portfolio of reimbursable diagnostic tests, and strategic acquisition activities suggest a comprehensive approach to addressing the complex challenges of modern healthcare through technology-driven solutions.
With its robust data library and AI capabilities, Tempus appears well-positioned to capitalize on the increasing demand for precision medicine approaches that can improve patient outcomes while potentially reducing healthcare costs through more targeted interventions.
