Tempus AI, Inc.

Good day, and thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tempest AI Board Quarter 2025 Fiscal Results Conference Call. At this time, all lines are in a listen-only mode to prevent any background noise. After the speaker's remarks, there will be a question and answer session. We respectfully request that you limit questions to one. To ask a question, simply press star 1 on your touchtone phone. To withdraw your question, press star 1 again. It is now my pleasure to turn today's call over to Liz Cruduhallo, Vice President of Investor Relations. Please go ahead.

Thank you, Tina. Good afternoon, and welcome to Tempest's fourth quarter 2025 and full year 2025 conference call. This afternoon, Tempest released results for the quarter and year ended December 31st, 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 Laskowski, founder and CEO of Tempest, and Jim Rogers, 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 is available on our IR page. I would now like to turn the call over to Eric.

Thanks, Liz. 2025 was an exceptional year for Tempest, with both of our businesses growing rapidly and performing well above expectation. Total revenue of our core business was up over 33% when you factor in the acquisition of Ambri, obviously much higher. If you look at our two main businesses, I'll start with diagnostics. In oncology, we had unit growth of 29%, which was and has been accelerating throughout the year. We called out that our MRD growth rate was actually 56% quarter over quarter, which is extraordinary. Hereditary held up well with 23% unit growth. So all in our diagnostic business is accelerating and performing above expectations. In terms of data, that business is growing even faster. It's made up of really two product lines, our licensing business and our applications. Our licensing business, or Insights, was up 69% in the quarter when you factor in the one-time impact of the AstraZeneca warrant, and we're projecting roughly 40% growth this quarter. Total contract value was greater than $1.1 billion, and most importantly, has been rising faster than revenue over the past several quarters. And net revenue retention was 126%, which is super strong, all things considered. We guided to $1.59 billion, which is in line with our 25% long-term growth expectations, and approximately $65 million of positive adjusted EBITDA. Our balance sheet is in great shape. Our products are resonating. Our AI advantages are continuing to take hold. So all in, we're poised for a phenomenal 2026.