The Company
Tempus is an AI-enabled precision medicine company that combines clinical-grade genomic testing with a massive, multimodal real-world dataset and software tools to help clinicians and biopharma personalize care—initially in oncology and increasingly across other diseases. It offers comprehensive genomic profiling (tissue and liquid), MRD/monitoring and hereditary testing, plus data, models, and platforms (Lens, One, Next) used by health systems and life sciences partners. The company went public in June 2024 and completed the acquisition of Ambry Genetics in early 2025.
Financials
TAM / CAGR
- Addressable Market: Tempus cites a >$70B global opportunity for its Genomics product line across oncology and other disease areas; its broader data & AI offerings expand that opportunity within life sciences and healthcare software.
- Expected Growth: Precision oncology testing, liquid biopsy/MRD, and healthcare AI/data markets are widely expected to grow at mid- to high-teens CAGR over the next several years, driven by guideline expansion, payer coverage, and biopharma demand for large, multimodal datasets. (Inferred from Tempus disclosures and industry growth narratives reflected in company and analyst materials.)
Products
| Product / Service | What it is | % of FY2024 Revenue* |
|---|---|---|
| Genomics Oncology & Genomics Hereditary | Tempus Genomics / “Oncology” testing which includes solid tumor, liquid biopsies, germline, and MRD testing – basically everything ordered by an Oncologist. Ambry Genomics / “Hereditary” testing which includes inherited cancer risk, whole exome and genome profiling for rare conditions, including pediatrics, cardiology, neurology, and all other inherited screening – basically everything ordered by a genetic counselor. | ~65.1% |
| Data & Services | Data licensing, AI models, analytics platforms, research services for life sciences and health systems | ~34.9% |
Business Model
Diagnostics (Genomics)
Billed to payers (including Medicare), providers, and patients for clinical testing (CGP tissue/liquid, RNA, MRD, hereditary). Ambry expands hereditary and non-oncology testing breadth. Scale and automation aim to improve unit economics over time.
How it works
- Doctors (typically oncologists) order the appropriate Tempus test.
- Samples—usually tumor tissue (from a biopsy) and/or a blood sample—are collected at the clinic or hospital and sent to Tempus’s lab for analysis.
- Tempus analyzes the DNA and/or RNA from the sample, looking at hundreds of genes commonly associated with cancer (e.g., their “xT” tissue test examines up to ~1,700 genes)
- The analysis results include key findings—such as genetic mutations or biomarkers—and contextual recommendations, such as:Which existing treatments similar patients have had success with, whether the patient might be eligible for a clinical trial.
- The analysis results include key findings—such as genetic mutations or biomarkers—and contextual recommendations, such as:
- These findings are sent to the patient’s doctor (and often available via an online portal), enabling more personalized treatment decisions.
- Data & AI (Life Sciences / Providers): Multi-year contracts for de-identified data access, analytics, and modeling; platform subscriptions (Lens, One, Next); CDx partnerships; clinical trial matching; algorithm licensing. Remaining contract value and recent large agreements support visibility. Nasdaq
Customers
- Providers & Health Systems: Broad footprint with U.S. oncologists and academic medical centers; integrated testing plus software and trial matching.
- Life Sciences (Biopharma): Data/model licensing, RWD/RWE studies, discovery and development support; marquee multi-year agreements (e.g., AstraZeneca), and collaborations across top pharma.
- Payers: Coverage/reimbursement arrangements for clinical testing across assays and indications.
Competitors
- Foundation Medicine (Roche): Tissue and liquid comprehensive genomic profiling (FoundationOne®CDx, FoundationOne®Liquid CDx) directly compete with Tempus xT/xF.
- Guardant Health: Guardant360® CDx (FDA-approved liquid CGP) competes with Tempus xF in blood-based profiling; also expanding into tissue and MRD.
- Caris Life Sciences: WES/WTS-based tumor profiling (tissue and blood) and AI-enhanced reports overlap with Tempus xT/xR and liquid assays.
Main Investors
| Investor / Entity | Class A % | Class B % | Notes |
|---|---|---|---|
| Eric Lefkofsky | 23.2% | 100% | Combined voting power ~59.5% |
| Red Sky Ventures LLC | 14.2% | — | Significant Class A holder |
| BK TL21 LLC | 4.8% | — | Significant Class A holder |
| Baillie Gifford & Co. | 7.2% | — | Institutional holder |
| T. Rowe Price | 5.7% | — | Institutional holder |
| Fidelity (FMR LLC) | 5.6% | — | Institutional holder |
| The Vanguard Group | 4.6% | — | Institutional holder |
| BlackRock | 4.4% | — | Institutional holder |
| Google LLC | 3.2% | — | Strategic/institutional holder |
Founding History
Tempus was founded in 2015 by Eric Lefkofsky in Chicago after his wife’s cancer diagnosis—motivating a data-driven, AI-first approach to precision medicine. The company listed on Nasdaq in June 2024 and closed the acquisition of Ambry Genetics in early 2025, expanding into hereditary testing at scale.
Eric Lefkofsky, is a well-known serial entrepreneur who has successfully founded and scaled several companies before Tempus such as Groupon.
Invest Alpha 