Shares of Tempus AI (TEM) tumbled 9.02% in after-hours trading on Tuesday following the release of the company's third-quarter 2025 financial results. Despite reporting strong revenue growth, investors appear to be reacting negatively to the company's outlook and financial performance.

Tempus AI reported a 84.7% year-over-year increase in revenue, reaching $334.2 million for the quarter. The company also achieved positive adjusted EBITDA of $1.5 million, marking an important milestone. However, Tempus still recorded a net loss of $80.0 million, which included $35.0 million in stock compensation expense and related taxes, as well as a one-time $12.0 million expense related to debt extinguishment.

While Tempus increased its full-year 2025 revenue guidance to approximately $1.265 billion, representing 80% annual growth, the company's projection for Q4 Adjusted EBITDA of $20 million, resulting in only slightly positive Adjusted EBITDA for the full year, may have disappointed investors. Additionally, the recent acquisition of Paige, an AI company specializing in digital pathology, is expected to increase losses by approximately $5 million per quarter, potentially impacting near-term profitability expectations.