TEM: From losing money to making itTempus AI, Inc. Class ABATS:TEMTotoshkaTradesTEM Tempus AI builds the largest platform of clinical and genomic data, combining diagnostics, artificial intelligence, and drug development. The company partners with AstraZeneca, Bristol Myers Squibb, BioNTech, and other major pharmaceutical companies. The stock trades on NASDAQ. Fundamentals The Q2 2026 report confirmed a fundamental business turnaround. Revenue grew 22 percent year-over-year to $382.5 million, beating analyst consensus. Diagnostics contributed $289.3 million (+20 percent), while the Data & Applications segment grew to $93.2 million (+28 percent). Adjusted loss per share came in at $0.04, beating expectations by 4 cents. The main event of the quarter was the company's first-ever GAAP profit of $5.6 million, compared to a $42.8 million loss a year earlier. Adjusted EBITDA turned positive for the first time at $8.0 million. Gross profit rose to $246.5 million, with gross margin reaching 64.4 percent, confirming the scalability of the business model. Cash and liquid investments on the balance sheet grew to $820.7 million. Operating cash flow remained negative at $7.5 million due to M&A expenses, but management confirmed a path to positive free cash flow by the end of 2026. In July, the company raised $460 million in convertible notes at 0 percent interest, fully refinancing expensive debt from Ares Capital, saving over $30 million in annual interest expenses. Management raised full-year 2026 revenue guidance to $1.595–1.605 billion, raised adjusted EBITDA guidance to $65 million, and confirmed positive free cash flow by year-end. Catalysts Oncology test volume grew 31 percent year-over-year. MRD testing increased to approximately 9,000 tests per quarter. The medical data licensing segment grew 36 percent, with new long-term contracts signed during the quarter totaling around $200 million. AI attachment to core solid tumor tests reached 45 percent, serving as a powerful client retention driver. Tempus is acquiring Personalis for $1.6 billion, strengthening its position in the $20 billion MRD diagnostics market. FDA approval for the xT CDx test will add approximately $85 million in annual revenue starting in 2027 through premium ADLT pricing. An FDA decision on the xF liquid biopsy is expected in the second half of 2027, with potential to generate up to $400 million in incremental net revenue by 2028. Risks The integration of Personalis remains the main operational risk. Temporary pressure on free cash flow and moderate dilution from the deal are possible. The legacy diagnostics segment shows slower growth rates. Capital structure Institutional investors control 61.5 percent of shares. Short interest stands at approximately 6.8 percent of the float with Days to Cover at 2.4 days. Analyst consensus remains Strong Buy with an average price target around $68. The next earnings report is scheduled for early November 2026, with the Personalis deal expected to close around the end of 2026 or early 2027. Technicals On the weekly timeframe, the long-term decline from historical highs near $104.32 has concluded, and price has entered a phase of deep medium-term consolidation. The key support level is the strong horizontal zone of $40.00–$41.00, representing a major historical demand area. The recent local low of $40.77 proved to be a false breakdown: the market quickly absorbed all selling, and the weekly close significantly above support with a long lower wick confirmed strong buyer interest and defense of this zone by large participants. The strength of the reversal impulse is confirmed by a significant rise in vertical trading volume on the rebound candles, as well as RSI and MACD beginning to exit extreme weekly oversold territory, signaling seller exhaustion. The upward movement from support breaks down into several sequential phases: the first local target is full closure of the gap in the $48.00–$50.00 range. Since this segment lacks traded volume and horizontal resistance levels, price can move quickly through this vacuum up to the gap's upper boundary at $51.00. Successful gap closure opens the path to the first independent technical target — strong mirror resistance at $63.61, which previously served as a key local high and a profit-taking zone. A confirmed break above this level would signal a full medium-term trend reversal. Above $63.61, the next medium-term target is historical resistance at $73.21. Tempus is gradually transitioning from a story about AI spending to a story about a profitable healthcare business. The first GAAP profit, raised full-year guidance, nearly $821 million in liquidity, a path to positive FCF, and an expanding product pipeline create a foundation for the next phase of revaluation. This publication is for informational purposes only and does not constitute individual investment advice. Share your thoughts in the comments and don‘t forget to like this idea if you found it helpful!