--- title: "Tempus AI's first profit came with $47.1 million of other income and a fifth of data revenue from Pathos AI" description: "Tempus booked record revenue and its first non-GAAP profit on November 2. The filing behind the headline carries a $47.1 million other-income line, a fifth of data revenue from the CEO's own Pathos AI, and a Personalis vote on November 30." publisher: "The Inference" section: "Health" published: 2026-11-03T16:23:23.892Z modified: 2026-11-03T16:23:23.892Z canonical: https://theinference.org/article/tempus-ai-s-first-profit-came-with-47-1-million-of-other-income-and-a-fifth-of-data-revenue-from-pathos-ai language: en keywords: "Tempus AI, Earnings, Pathos AI, Personalis, Genomics" --- # Tempus AI's first profit came with $47.1 million of other income and a fifth of data revenue from Pathos AI > Tempus booked record revenue and its first non-GAAP profit on November 2. The filing behind the headline carries a $47.1 million other-income line, a fifth of data revenue from the CEO's own Pathos AI, and a Personalis vote on November 30. Eric Lefkofsky, founder and chief executive of [Tempus AI](https://theinference.org/markets/companies/tempus-ai), told analysts on November 2: "This quarter, we made the turn [1][3]." The company behind that line, a Chicago genomic-testing and data-licensing firm, had just reported [record revenue of $411.5 million, up 23%](https://finance.yahoo.com/healthcare/articles/tempus-reports-third-quarter-2026-120000226.html), raised full-year guidance to $1.60–1.605 billion, and booked its first non-GAAP profit: $13.4 million, with adjusted EBITDA of $25.6 million against $1.5 million a year earlier [1][3]. The stock closed at $78.48, up 8.7%, valuing Tempus at about $14.3 billion [4]. ## The turn, against the GAAP ledger The audited-basis lines are quieter. Loss from operations improved 7%, to $56.9 million from $61.0 million [2]. The net loss narrowed 81% to $14.9 million because [other income jumped to $47.1 million from $2.6 million](https://www.sec.gov/Archives/edgar/data/1717115/000119312526442624/tem-20260930.htm): currency gains, marks on marketable securities, and license income from SB Tempus, its Japanese joint venture [2]. Strip that line out and the pretax loss is about $59.6 million [1]. The non-GAAP profit, in turn, exists only after excluding $50.8 million of stock compensation [1]. *Chart: **Revenue more than doubled in two years; the operating loss ended where it started** Line chart of nine quarters of Tempus revenue and GAAP operating income, revenue rising from about 181 to 411.5 million dollars while the operating loss stays between 50 and 85 million dollars* *Revenue more than doubled in two years; the operating loss ended where it started [8][1]* ## A fifth of the data business is the founder's other company Of $108.1 million in Data and Applications revenue, $22.1 million came from Pathos AI, the drug-development company Lefkofsky co-founded and chairs [2]. One dollar in five of the data revenue carrying Tempus's premium multiple was billed to a company its own founder controls. Pathos owes $200 million in license fees over three years and has settled $17.5 million of them, in two $8.8 million instalments paid in Pathos Series D preferred stock, not cash [2]. The arm's-length business is real: [Bristol Myers Squibb](https://theinference.org/markets/companies/bristol-myers-squibb) is paying up to $137.5 million over five years, bookings top $550 million year to date, and related-party revenue actually fell year over year while the segment grew 33% [1][2]. The $55 million Alzheimer's tranche still runs through Pathos, as [we reported on October 23](https://theinference.org/article/tempus-ai-banks-192-5-million-from-bms-and-55-million-of-it-goes-through-a-related-party) [1][2]. ## The vote that prices it, four weeks out Minimal residual disease (MRD) tests, which look for cancer traces after treatment, reached about 12,000 in the quarter, up 300% from roughly 3,000, inside a test book that grew about 13%, to 244,500 [1][2]. The assay, NeXT Personal Dx, is made by Personalis, which Tempus agreed on July 20 to buy for $16.25 a share in stock; Personalis holders vote on November 30, and can walk if Tempus's 15-day average price before closing falls below $46 [2]. [Lefkofsky's own economics warning on the call](https://seekingalpha.com/news/4662769-tempus-projects-1_60b-1_605b-2026-revenue-while-targeting-65m-adjusted-ebitda-backed-by-bms): "when Personalis runs these tests, they lose money" [3]. [Jefferies](https://theinference.org/markets/companies/jefferies) set Hold at $70 on November 3, BTIG set $100 [5][6], and [at 9.9 times sales against a peer group at 7.8](https://sg.finance.yahoo.com/news/tempus-ai-tem-stock-looks-110703334.html) [7], the multiple keeps assuming the arm's-length data arrives on schedule. *Chart: **Jefferies at $70 and BTIG at $100 bracket the $78.48 close** Column chart of analyst price targets for Tempus AI against its November 2 close: Jefferies at $70, the close at $78.48, BTIG at $100* *Jefferies upgraded Tempus to Hold with a $70 target on November 3, BTIG raised its target to $100 the same day, and the stock closed November 2 at $78.48. Sources: Investing.com; Yahoo Finance. [5][6][4]* ## Takeaway Tempus's first non-GAAP profit rests on $47.1 million of other income and $50.8 million of excluded stock pay, a fifth of data revenue is billed to the founder's own Pathos AI, and Personalis holders vote on the buyout November 30. ## Sources 1. [Business Wire via Yahoo Finance, Tempus Reports Third Quarter 2026 Results, 2 November 2026](https://finance.yahoo.com/healthcare/articles/tempus-reports-third-quarter-2026-120000226.html) 2. [Tempus AI, Inc., Form 10-Q for the quarter ended 30 September 2026, filed with the SEC 2 November 2026](https://www.sec.gov/Archives/edgar/data/1717115/000119312526442624/tem-20260930.htm) 3. [Seeking Alpha, Tempus projects $1.60B-$1.605B 2026 revenue while targeting $65M adjusted EBITDA, Q3 2026 earnings call insights, 2 November 2026](https://seekingalpha.com/news/4662769-tempus-projects-1_60b-1_605b-2026-revenue-while-targeting-65m-adjusted-ebitda-backed-by-bms) 4. [Yahoo Finance Singapore, Tempus AI Inc. (TEM) quote page, close of 2 November 2026](https://sg.finance.yahoo.com/quote/TEM/) 5. [Investing.com, Jefferies upgrades Tempus AI stock rating to hold, raises price target to $70, 3 November 2026](https://www.investing.com/news/analyst-ratings/jefferies-upgrades-tempus-ai-stock-rating-to-hold-raises-price-target-to-70-93CH-4993557) 6. [Investing.com, BTIG raises Tempus AI stock price target to $100 on data deals, 3 November 2026](https://www.investing.com/news/analyst-ratings/btig-raises-tempus-ai-stock-price-target-to-100-on-data-deals-93CH-4993891) 7. [Simply Wall St via Yahoo Finance Singapore, Tempus AI (TEM) Stock Looks Fully Priced Following Its 26% Run, 3 November 2026](https://sg.finance.yahoo.com/news/tempus-ai-tem-stock-looks-110703334.html) 8. [Tempus AI, quarterly revenue and operating income from its SEC filings, retrieved 3 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001717115) --- Tempus AI's first profit came with $47.1 million of other income and a fifth of data revenue from Pathos AI — The Inference. Canonical: https://theinference.org/article/tempus-ai-s-first-profit-came-with-47-1-million-of-other-income-and-a-fifth-of-data-revenue-from-pathos-ai