Tempus AI, Inc.

plays on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. I'll now turn the conference over to Liz Critaholo, VP of Investor Relations. You may begin.

Thank you. Good morning and welcome to Tempest's second quarter 2025 conference call. This morning, Tempest released results for the quarter ended June 30th, 2025. The press release, an overview of the quarter, and our latest presentation are available on our IR website. Joining me today from Tempest are Eric Lepkovsky, founder and CEO of Tempest, and Ben Rodgers, CFO. Before we begin, I would like to remind you that during this call, management may make forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For discussion of these risks, please refer to our 10-K and other subsequent filings with the SEC. During the call, we will discuss non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. Definitions of these non-GAAP financial measures, along with reconciliations to the most directly comparable GAAP financial measures, are included in our earnings release, which has been furnished to the SEC and is available on our website at investors.temphis.com. I would now like to turn the call over to Eric.

Good morning, everyone. So I'll provide a quick summary. U2 is a fantastic quarter. As I mentioned in my letter, the company is hitting its stride as we approach our 10th anniversary, which is great. Revenue increased 89.6% to $314.6 million. Genomics revenue increased 115% to $241.8 million. On accelerating volume growth in oncology, which increased from about 20 percent last quarter to 26 percent this quarter, which was great to see, and ereditary testing, which was 32 percent in the quarter. Data and services revenue increased 35.7 percent to roughly 73 million, led by Insights, which is our data licensing, which grew almost 41 percent. Quarterly gross profit was 195 million, roughly 160 percent increase. And as the business is growing, we continue to be disappointed about the investments we're making. As such, we saw another sequential improvement in adjusted EBITDA, which went from roughly negative $16 million last quarter to negative $5.6 million this quarter. So we're approaching adjusted EBITDA break-even. We increased our full-year 2025 revenue guidance to $1.26 billion and maintained our adjusted EBITDA forecast of about $5 million for the year, which would be a roughly $110 million improvement over last year. We also improved the balance sheet. We issued $750 million of 0.75% convertible notes, which will drive down interest expense and produce lots of cash savings. This, along with the fact that our cash and marketable securities finished the quarter about $290 million, and net of that, paying down some of the debt, as I mentioned, we added about $375 million additional, leaves our balance sheet in a really good spot as we approach Q3. So all in, the business is right where we want it to be.