Tempus AI Stock Sinks On Spruce Point’s Short Report

The report stated that Tempus AI’s management and board members have a history of promoting “disruptive technology companies” and cashing out early.

In this photo illustration logo of Tempus AI is seen on a smartphone against a screen displaying a trade markets illustration on April 15, 2024 in Krakow, Poland. (Photo by Dominika Zarzycka/NurPhoto via Getty Images)

Rounak Jain·Stocktwits

Updated Jul 02, 2025 | 8:31 PM GMT-04

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Tempus AI Inc. (TEM) stock tumbled nearly 18% in Wednesday’s regular trading session after Spruce Point published a report and announced it is shorting the shares.

Spruce Point highlighted a series of concerns with Tempus AI in its report, questioning the credibility of the company’s management and its financial reporting practices.

Spruce Point is a New York-based short seller that claims to have published more than 100 reports, wherein it shorts the stocks being reported on.

The report stated that Tempus AI’s management and board members have a history of promoting “disruptive technology companies” and cashing out early. This, it says, has resulted in shareholder losses and lackluster returns.

Spruce Point also stated that Tempus AI and Masayoshi Son-led SoftBank are involved in round-tripping capital to create revenue for Tempus.

The short seller also expressed skepticism about Tempus AI’s artificial intelligence (AI) capabilities, based on the company’s minimal revenue generation and product demonstrations. It says these have resulted in “irreconcilable” results so far.

Spruce Point’s report also pointed out that Tempus AI’s revenue from AI applications stood at $12.4 million, or about 2% of its total revenue, in 2024. It added that, 10 years since its founding, Tempus AI has not yet generated a profit or net positive cash flow.

Tempus AI reported a revenue of $693.4 million in 2024, missing Wall Street estimates of $696.27 million. Its loss per share for the year was $1.58.

In the first quarter of 2025, Tempus AI reported $255.74 million in revenue, ahead of Wall Street's expectations of $248.13 million. Its loss per share during the quarter was $0.24, slightly lower than the estimated $0.26 loss per share.

Tempus AI’s stock has surged 58.03% year-to-date and 32.42% over the past 12 months.

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