TE
TEM
Latest · Mar 31, 2026
Quarter ended Mar 31, 2026 · FY2026 Q1

Tempus AI, Inc. stock research

Tempus AI (TEM) Free Cash Flow — Quarter Ended Mar 31, 2026

Revenue decreased from the prior quarter and the year-ago quarter; operating cash flow and free cash flow were negative and weaker than the prior quarter but improved relative to the year-ago quarter. The free cash flow margin was negative, lower than the prior quarter but significantly better than the same quarter one year earlier.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue decreased from the prior quarter and the year-ago quarter; operating cash flow and free cash flow were negative and weaker than the prior quarter but improved relative to the year-ago quarter. The free cash flow margin was negative, lower than the prior quarter but significantly better than the same quarter one year earlier.

  • Operating cash flow was negative and substantially higher in absolute terms than capital expenditure, leading to a free cash flow deficit. The free cash flow margin was negative, reflecting that operating cash generation did not cover capital spending.
  • Compared to the immediately preceding quarter, revenue was lower and the free cash flow deficit widened, with free cash flow margin weakening from negative to a more negative level. Relative to the same quarter one year earlier, revenue was higher and the free cash flow deficit narrowed substantially, with free cash flow margin improving from a deeply negative level.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

-$212.9M

Trailing twelve-month free cash flow.

Quarter free cash flow

-$81.5M

Free cash flow in the selected fiscal quarter.

Operating cash flow

-$73.3M

Cash generated by operations before capital spending.

CapEx

$8.2M

Capital spending and related asset purchases.

FCF margin

-23.4%

The share of revenue converted into free cash flow.

TTM FCF yield

n/a

TTM FCF divided by market capitalization.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-06-30$314.6M$44.2M$7.5M$36.6M11.6%
2025-09-30$334.2M-$119.8M$6.7M-$126.5M-37.9%
2025-12-31$367.2M-$36.8M$4.8M-$41.5M-11.3%
2026-03-31$348.1M-$73.3M$8.2M-$81.5M-23.4%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income64.7%Shows whether accounting earnings convert into cash.
CapEx / revenue2.4%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Watch

Operating Cash Flow Deficit

Operating cash flow was negative for the quarter and worsened sequentially, while capital expenditure increased. The combination produced a larger free cash flow deficit compared to the prior quarter.

The free cash flow deficit increased sequentially, reflecting a weakening in cash conversion relative to the prior quarter.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow was negative and substantially higher in absolute terms than capital expenditure, leading to a free cash flow deficit. The free cash flow margin was negative, reflecting that operating cash generation did not cover capital spending.

Compared to the immediately preceding quarter, revenue was lower and the free cash flow deficit widened, with free cash flow margin weakening from negative to a more negative level. Relative to the same quarter one year earlier, revenue was higher and the free cash flow deficit narrowed substantially, with free cash flow margin improving from a deeply negative level.

Monitor operating cash flow trajectory, which swung from a smaller deficit last quarter to a larger deficit this quarter.

Valuation context

A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.

Market capitalizationn/aUsed as the denominator for FCF yield.
TTM FCF yieldn/aTTM free cash flow divided by market capitalization.
EV / TTM FCFn/aA quick valuation bridge, not a full DCF.

Peer context

Free cash flow quality is easier to read against related public companies.

TE
TEM

Tempus AI, Inc.

FCF margin

-23.4%

FCF yield

n/a

TEM Free Cash Flow — Quarter Ended Mar 31, 2026