Tempus AI, Inc.

Ladies and gentlemen, thank you for standing by at this time. I would like to welcome everyone to the Tempus AI first quarter 2026 financial results conference call. All lines have been placed 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 will now turn the conference over to Liz Crutoholo. You may begin.

Thank you. Good afternoon and welcome to Tempest's first quarter 2026 conference call. This afternoon, Tempest released results for the quarter and March 31st, 2026. The press release and overview of the quarter and our latest presentation are available on our IR website. Joining me today from Tempest are Eric Likovsky, 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 a 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.

Thank you. Welcome, everybody. We had a great quarter. Revenue was $348.1 million, up a little over 36% year over year. Our diagnostic revenue was $261.1 million, representing almost 35% growth, driven by particular strength in our oncology business, which had unit growth of about 28%. It was strong across the board with our solid tumor and liquid biopsies performing well and our MRD volume performing even better. Hereditary slowed down a bit, which was to be expected given that we're lapping some extreme growth rates from a year ago. We expect that business to return to mid-teens in the second half of the year. Our data business, data applications business did extraordinarily well, 87 million of revenue representing 40.5% year-over-year growth with particular strength in our data licensing and modeling business insights, which grew over 44%. We had three, this is our third straight quarter of bookings north of $100 million with TCV rising and visibility in the best place it's been for our data and apps business in quite some time. So all in, the business is doing extremely well. Our main businesses are performing at or above plan. We're on track for a great year, and as a result, increased our guidance to now a range of $1.59 to $1.6 billion for the year, with adjusted EBITDA of about $65 million.