Tempus AI, Inc.
TEM Healthcare Health Information Services
Tempus AI, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.3 billion, up 83.4% from fiscal 2024. In the quarter to June 2026, revenue grew 21.6%, EPS grew 112.0%, free cash flow fell 153.7% and total debt rose 70.5%, each against the same quarter a year earlier. Dividend growth for three consecutive years, revenue growth for three.
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Tempus AI, Inc. (TEM) Altman Z-score
Tempus AI, Inc.'s Altman Z-score for fiscal 2025 is 2.60, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.60 | 4.29 |
| FY2024 | −1.69 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.35 | — | 0.42 | |
| Retained earnings / total assets | (1.05) | — | −1.47 | |
| EBIT / total assets | (0.11) | — | −0.37 | |
| Market value of equity / total liabilities | 5.77 | — | 3.46 | |
| Sales / total assets | 0.56 | — | 0.56 | |
| Altman Z-score | Grey zone | 2.60 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −1.60 | ||
Z and Z″ put Tempus AI, Inc. in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| DOCS Doximity, Inc. compare | 17.1× |
| VEEV Veeva Systems Inc. compare | 13.6× |
| HTFL Heartflow, Inc. compare | 7.2× |
| HQY HealthEquity, Inc. compare | 4.4× |
| TXG 10x Genomics compare | 4.0× |
| BTSG BrightSpring Health Services, Inc. compare | 3.3× |
| TEM Tempus AI, Inc. | 2.6× |
| WAY Waystar Holding Corp. compare | 2.2× |
| HNGE Hinge Health Inc. compare | −0.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets