Tempus AI Q2 2026 Earnings Call Transcript

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July 30, 2026

Key Takeaways

  • Positive Sentiment: Q2 revenue rose 22% to $382.5 million, with diagnostics revenue up 20% and data and applications revenue up 28%; Insights revenue increased 36%. Management raised 2026 revenue guidance to $1.595 billion–$1.605 billion and expects adjusted EBITDA of approximately $65 million.
  • Positive Sentiment: FDA approval of tumor-only xT CDx enables unified ADLT pricing for Tempus’ solid-tumor DNA portfolio, which management estimates could add about $85 million of annual revenue beginning in 2027. A future xF liquid-biopsy approval could bring total revenue uplift from the two products to approximately $400 million in 2028.
  • Positive Sentiment: The data business showed strong commercial momentum, including a multi-year BioNTech agreement, deals with several other biopharma companies, and approximately $200 million in quarterly bookings. Management said demand for its Lens platform, data licensing, and modeling capabilities is strengthening visibility into 2026 and 2027 growth.
  • Positive Sentiment: Tempus completed a $460 million zero-coupon convertible-notes offering and used part of the proceeds to repay Ares Capital debt, reducing annual interest expense by more than $30 million. Operating cash use improved to $7.5 million, and management expects to achieve positive free cash flow by year-end.
  • Neutral Sentiment: Tempus agreed to acquire Personalis in an all-stock transaction, adding its MRD testing platform to the portfolio; MRD test volumes increased 38% sequentially to approximately 9,000 in Q2. However, Tempus plans to expand sales coverage gradually because current MRD economics are near break-even, and the deal may involve additional debt and some shareholder dilution.
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Earnings Conference Call
Tempus AI Q2 2026
00:00 / 00:00

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Operator

Ladies and gentlemen, thank you for standing by. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the Tempus AI Second Quarter 2026 Financial Results Conference Call. I'd like to remind everyone that this call is being recorded and that all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Elizabeth Krutoholow, Vice President, Investor Relations. Please go ahead.

Elizabeth Krutoholow
Elizabeth Krutoholow
VP of Investor Relations at Tempus AI

Thank you. Good afternoon, and welcome to Tempus' second quarter 2026 conference call. This afternoon, Tempus released results for the quarter ended June 30th, 2026. The press release, an overview of the quarter, and our latest presentation are available on our IR website at investors.tempus.com. Joining me today from Tempus are Eric Lefkofsky, Founder and CEO of Tempus, and Jim Rogers, CFO. Before we begin, I would like to remind you that during this call, management will be making forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please refer to our 10-K and other subsequent filings with the SEC. During the call, we will discuss non-GAAP financial measures which are not prepared in accordance with generally accepted accounting principles.

Elizabeth Krutoholow
Elizabeth Krutoholow
VP of Investor Relations at Tempus AI

Definitions of these non-GAAP financial measures, along with reconciliations to the most directly comparable GAAP financial measures are included in our earnings release, which is available on our IR page. I would now like to turn the call over to Eric.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Thank you, and good afternoon, everyone. Q2 was an exceptional quarter for Tempus. Overall, our revenues increased 22% to $382.5 million, with this being the first quarter where we are lapping Ambry being fully integrated into our results. Our Diagnostics business delivered $289.3 million of revenue, an increase of 20% year-over-year, as slower growth in hereditary cancer testing was offset by higher growth in CGP testing due to acceleration in the business. Momentum continues as June saw some of the strongest growth we have seen to date across the portfolio. Hereditary revenue for the quarter was up 5% to $107.4 million, as Q2 of 2025 was a period of abnormally high growth, which we are now lapping. Data and Apps revenues were $93.2 million, increasing 28% year-over-year, with our data licensing and modeling business, Insights, growing at 36% in the quarter.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

There were also several notable highlights in the quarter. We received FDA approval for tumor-only xT CDx. This approval allows the migration of our entire solid tumor DNA portfolio to be under unified ADLT pricing. We expect an estimated $200 uplift in ASP, which equates to approximately $85 million on an annual basis beginning in 2027. It's also important to note that we have our liquid biopsy, xF, in front of the FDA now, and when that is approved and in-market, which should be in the latter half of 2027, we expect the incremental ASP lift to be an additional $550. Between xT CDx and xF approvals, we anticipate approximately $400 million of revenue uplift in 2028. We introduced initial results from and successfully delivered the first version of our foundation model to AstraZeneca. The model was used to predict which patients responded in several public and blinded clinical trials.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

We're thrilled to have achieved this milestone and are now working on the next version of the model. We signed a large multi-year data licensing and modeling agreement with BioNTech, who now joins the ranks of AstraZeneca, GlaxoSmithKline, Bristol Myers Squibb, and others. This, along with Merck last quarter, is further evidence that our data and modeling capabilities are becoming instrumental to pharma. We also signed large deals with Daiichi Sankyo, LevelSet Bio, and Incyte Pharmaceuticals, contributing to the approximately $200 million in total bookings this quarter. We completed a $460 million offering of 0.0% convertible senior notes due 2032. The proceeds of this offering were used in part to repay an outstanding loan from Ares Capital. Importantly, this transaction allows us to save over $30 million annually in interest expense, enabling us to achieve positive free cash flow by year-end.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

GAAP net income was $5.6 million, and Adjusted EBITDA was $8 million, a $13.6 million year-over-year improvement. We finished the quarter with $820.7 million of cash equivalents, and marketable securities compared to $643.8 million last quarter. As expected, cash used in operating activities improved significantly to negative $7.5 million in the quarter. On top of all this, on July 20th, we announced an agreement to acquire Personalis. Minimal residual disease, MRD testing represents a $20 billion+ market and is one of the fastest-growing segments in oncology diagnostics. Bringing Personalis under our roof accelerates commercial adoption of our MRD test, rounds out our overall portfolio, and strengthens the multimodal data flywheel that differentiates our business. Given their improving financial profile, we felt now was the right time to pursue a strategic acquisition.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Up until now, we have phased our sales efforts, as only about 10% of our sales force is selling MRD today based on these reimbursed indications. Even with that, we are delivering growth rates that have exceeded our expectations, running approximately 6,500 tests in Q1 and approximately 9,000 tests in Q2, growing 38% quarter-over-quarter. With reimbursement in place for several indications and more coming, we believe volumes will be materially higher as we equip additional sales reps with NeXT over time. The transaction is structured as a 100% stock transaction, with Tempus having the option to elect payment in cash, capped at 50% of the consideration paid. We have already begun working with parties to put a debt facility in place as our intention, obviously depending on our stock price, is to finance a large portion of the proceeds with debt to minimize shareholder dilution.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Even with this acquisition, we intend to see continued improvement in Adjusted EBITDA and free cash flow in 2027. Turning to guidance. We are increasing guidance to $1.595 billion-$1.605 billion in 2026, representing approximately 25% growth. We expect 2026 Adjusted EBITDA to be approximately $65 million, an improvement of about $72 million over 2025. We're exceptionally proud of our results this quarter and look forward to carrying this momentum into the second half of the year. Operator, we are ready to open the line for questions.

Operator

Thank you. We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, simply press star one again. For today's event, we kindly request everyone to please limit yourself to one question only. Thank you. Your first question comes from the line of Kallum Titchmarsh with Morgan Stanley. Your line is now open.

Kallum Titchmarsh
Kallum Titchmarsh
Analyst at Morgan Stanley

Great. Thanks a lot for the question, guys. Maybe one for Jim, just on Personalis. We've had quite a lot of questions coming through just on your underlying assumptions on the ASP front and just how those economics could become more favorable to you with time. Just any incremental color on that would be fantastic. Eric, I think you touched on this a little on the call last week, but maybe just talk us through how the incremental MRD data you'll now have access to could feed back into your data business, and I guess why that would perhaps be more of a compelling data set now for customers. Thanks a lot.

Jim Rogers
Jim Rogers
CFO at Tempus AI

I'll start on the ASP, and then Eric can take the second piece. On the ASP, obviously they've gotten coverage in several indications over the last several quarters, and so there's been improvement on the Personalis front. They have more indications that are coming down the pipeline as well. Over time, obviously we would anticipate ASPs to continue to improve as they secure coverage and additional indications. Also from a volume perspective, our ability to expand the sales force that is able to sell that test, which today is around 10%, will help us drive volume. They're early on in the ASP curve, but they've obviously had a tremendous amount of success in getting the first couple indications approved, and we anticipate that continuing.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Just to maybe a bit more color there, and then I'll jump into the data.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

I think the part of their story that is so compelling is that they have a really nice pipeline of studies that are being run, and we, like others, are watching and reacting to those studies that read out to turn into papers that eventually turn into approvals. They've done a great job of getting three approvals so far. They have a whole pipeline of others coming. The real clarity that's come into focus over the last 30, 60, 90 days is that you can start to see how this ASP story is going to turn for them in 2027.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

All of a sudden, the economics that were more favorable for us or that are more favorable for us today because we get paid and don't lose money, will actually flip, and all of a sudden they'll be getting paid, they'll have more margin, and we'll wish we had that deal instead of our deal. That certainly is a great piece of the story, as Jim mentioned. There's also, I think, compelling aspects in terms of their data. Almost every major biopharma client we have that's running large studies is trying to understand the endpoint of those studies. Historically, we think a lot about scans as a major endpoint to understand if disease is recurring or there's progression or what's happening.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

More and more, you're getting earlier signals from these MRD tests that are showing signs of cancer recurring six months or 12 months before a scan. As you can imagine, if you're a drug company, being able to see when patients recur and being able to get them on a drug earlier is a really big deal. We have a consistent stream of people wanting us to include MRD data with the current data that they're using for licensing and modeling purposes. I would suspect over time, it becomes a really compelling component of our overall data offering.

Operator

Your next question comes from the line of Brad Bowers with Mizuho. Your line is now open.

Brad Bowers
Brad Bowers
Analyst at Mizuho

Hey, there. Thanks for the question. First off, congrats on the large deals that you got this quarter. Wanted to focus specifically on the AstraZeneca piece. Another congratulations on delivering the first version of the model. Maybe just to double-click on what that looks like, then I think there's a little bit of the elephant in the room on what the agreement looks like for 2027 and beyond. To me, I think it seems that the foundation model is obviously a big piece of that. Maybe just some help on where that contracting fits. Just a reminder on the kind of escalators that can exist, whether the foundation model catalysts come at some point after this year such that the contract needs to be in place. Thank you.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Yeah. The foundation model was accepted by AZ. That was a big deal because we had to hit certain criteria. The cool part of that is you train this very large multimodal model trained on billions of parameters, very complicated, and it had to perform as well as certain models that both we had developed and they had developed that were highly tuned for specific use cases, including predicting response to both public and private trials. We would send them these models, they would basically see how our big model performed against their own internal models and in a blinded manner. We didn't have access to a bunch of that data.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

The fact that we've met the acceptance criteria means that they're comfortable this model's predictive and can now serve as the foundation, even though it's a foundation model, for all kinds of R&D and development work they're doing. That's a huge hurdle, we're ecstatic, we're consistent to invest in that. Separate from our foundation model efforts, they're obviously a licensee of our data and a whole bunch of our products. Their current agreement we have with the AZ, I think, goes for another couple of years. It doesn't end at the end of this year. I think the current agreement goes, I don't even know, through 2028 or something. I have no idea. It has several years left on it, even at the end of this year.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

There are certain criteria that they can opt into preferential pricing, if not, they would just pay more for the data they're licensing. First of all, there's a bunch of projects they've already committed to that will extend into 2027. They will be a very large client in 2027, no matter what happens. I can't imagine a scenario literally where they don't want to lock in for a longer period of time to avail themselves of discounts. It just wouldn't make any sense. They haven't given us any indication that they're not going to want to lock in for a long period of time and avail themselves of discounts. I would suspect that we will be delivering a similar amount of data and revenue to them next year.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

I would suspect that at some point we'll have a long-term extension in place, or they'll just use the contract they currently have and commit to similar dollar amounts of data. Every indication we have, including their CEO talking about it, I think on CNBC or whatever, is that they're super happy and intend to be a long-term partner of ours.

Operator

Your next question comes from the line of Kyle Mikson with Canaccord. Your line is now open.

Kyle Mikson
Kyle Mikson
Analyst at Canaccord

Hey, guys. Thanks for the questions. Congrats, very good quarter. First one on the xF FDA clearance tailwind, that looks like it's now $550 using 2Q data compared to $230 that you had at the investor day that was using 4Q data. Just I don't think you called out the reason for the change there. Can you just comment on that? Secondly, with your shares trading below $46, there's a possible that Personalis to terminate. Can you just talk about what you can do to avoid that as well as what makes you confident they don't do that, they don't terminate? Thanks.

Jim Rogers
Jim Rogers
CFO at Tempus AI

Yeah. On the xF pricing, as others have gone down the approval for liquid biopsies and indicated the prices that they're going after, our thinking around the ADLT pricing for xF has evolved, and we think that there's additional upside from what we had pegged it for earlier on. That assay is in front of the FDA now. As Eric mentioned, as we get later into 2027, we would anticipate getting approval and then following the ADLT pathway. That's the rationale behind the change.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Yeah. Look, it's an evolving market. Our assay is most comparable in terms of size, like literally size-like megabases in size totality to Guardant's recent assay that they got approved, and I believe their ADLT pricing is something like $83 or $8,400. It would be very hard for us to go to the market with a almost identical, at least in terms of size and complexity assay that's radically less expensive. We have to follow people who've come before us that have set ADLT pricing when we have comparable products in terms of complexity and size. The pricing here is just higher than we expected, and so it's a significant benefit to us. Will be a significant benefit to us once it's approved and in market. That's the big uplift.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

In terms of Personalis, I can't see a scenario where they would want to terminate, even if we were slightly below the floor. We established the floor because we weren't willing to have more dilution than X amount. We obviously have cash as a lever. We've got stock as a lever. We don't want to have more than X amount of dilution. Given where we're trading now, obviously my preference would be to fund maybe close to half the transaction in cash and the balance in stock to keep the dilution quite low. I believe we'll have that opportunity, and I can't see any scenario upon which this doesn't close. As you can imagine, they very much want to do this deal. We're a current partner of theirs now.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

It would be highly disruptive if this deal didn't get done on their side, and I just can't envision any scenario where even if they end up getting a few less shares where it doesn't go forward.

Operator

Your next question comes from the line of Ryan MacDonald with Needham. Your line is now open.

Matt Shea
Matt Shea
Analyst at Needham

Hey, this is Matt Shea on for Ryan. Thanks for taking the question. Eric, you've seen some really nice momentum in the data and Insights business throughout the first half of 2026, including the BMS expansion in May and a number of deals you announced today. Maybe can you talk about the level of momentum you have going into the back half of the year? Maybe for Jim, as we layer in that BMS expansion and $200 million of bookings in the quarter on top of the $350 million of TCV that was already earmarked for revenue in 2026, how much visibility and confidence do you have in hitting the implied $410 million of data revenue guidance, if that's even still the right number? It might be a bit higher with the guidance raise. How are you thinking about levers for upside?

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Yeah. I can, Jim, maybe add on, but my comment I think will tackle both, which is, in light of the deals we've been signing, first of all, we've had more momentum. I mentioned this, I think on the last call or before that, the data business is just on fire. We've had more momentum in terms of signing deals than we've had in a long time, in years. Other than the Foundation model, it's probably the single best run of three or four quarters we've had ever in terms of momentum. We're having just an awesome moment. More and more people want our data, more importantly, what's really exciting is they don't just want our data, they want access to Lens. They want us connecting and provisioning GPUs for them in Lens. They're uploading data. They're building models that remain in Lens.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

The business just feels super healthy, super sticky, and we just have a stronger pipeline and more demand than we've had, which means we have great visibility into our growth rates, not just in 2026, but 2027. That's how we think about the data business. We really are interested in maintaining long-term growth in that close to 30% range plus. We want to plot these things out in a way that we feel like we can grow at that level for years, three years, five years, seven years. We feel great. We're in a great spot for 2026. We're in a great spot for 2027, and we now spend a lot of time thinking about 2028.

Operator

Your next question comes from the line of Mark Massaro with BTIG. Your line is now open.

Mark Massaro
Mark Massaro
Analyst at BTIG

Hey, guys. Thank you for taking the questions and congrats. I wanted to start maybe just to clarify the higher pricing assumptions on xT CDx, or pardon me, the xF. Can you just walk us through what rates or what prices are you estimating on the Medicare side? Because I know you cited Guardant, but if you could be more explicit, that would be helpful. Eric, when do you think you can take that 10% promoting the Personalis test now? Why not take that up faster? Do you think you could take that up sooner rather than later, or are you waiting for the deal to perhaps close?

Jim Rogers
Jim Rogers
CFO at Tempus AI

Yeah. For xF, Mark, we're assuming a $7,500 ADLT price.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

In terms of taking MRD up faster, the same constraints we had when we didn't own Personalis will be the same constraints we'll have even after this transaction closes, which is we just want to time the full unshackling of these efforts to having the tests at an ASP level be basically break even. If you're losing money, if your margin's negative and you rush to run an extra 100,000 tests, you're just burning money. If we felt like this market was such that this was beachfront real estate that you had to procure, we would do that. We would tell the world, "Hey, we want to burn a bunch of money, and here's why we think it makes sense." We don't believe that. We didn't believe it with therapy selection, and if that was the case, Foundation Medicine would dominate the space instead of Tempus and Caris.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

We don't believe there's beachfront real estate to be procured. We do believe it's important that we're in market with an offering that is comprehensive and people want. We think we can meter this out and not lose the market opportunity. Obviously, we're growing super fast. We're growing at 38% quarter-over-quarter, and we're getting to some real scale, and we will get to even more significant scale in 2027. At some point, you'll see this pivot where the ASPs will start to climb up and you can see break-even in sight, and that's the point where I think you should expect us to ramp up the sales force pretty dramatically.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

That said, you won't even notice it because the core economics of our business from a gross margin growth perspective. The variable investments we make are so significant that if we wanted to invest an extra $50 million in the sales force, we just would spend $50 million less on cloud or things that you don't even see, and we still would be EBITDA-positive, we still would be cash-flow-positive. We just are in a great spot where the core business is now starting to generate so much gross margin and gross profit dollar growth, and we're making so many incremental investments that are long-term in duration that we can make some of these investments, like sales force growth, without negative EBITDA or negative cash flow or going backwards. I think we're in a good spot.

Operator

Your next question comes from the line of Subbu Nambi with Guggenheim. Your line is now open.

Ricki Levitus
Ricki Levitus
Analyst at Guggenheim

Hi, this is Ricki on for Subbu. Thanks for taking our questions. Following the launch of GenomeNext, do you have any updates on your outlook for the rare disease ramp within Ambry? In the letter you'd mentioned you're expecting this to pick up in the second half. Would you be able to quantify this for us? What would a successful second half for rare disease within Ambry look like?

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Yeah. I'll take the first one. The launch was great. Great, meaning we had an expectation for the first month, and I think I'm going to say something like two or three weeks in, we were already 50% higher than our expectation. That said, these are small numbers. At the end of the day, this is a new product for us, so when you get to market and sell 500 or 1,000 tests, that's a good start. I do think there is some upside that is going to come in the back half of the year related to whole genome. We don't yet have enough insight to know. Right now, it's not cannibalistic to our whole exome business. It doesn't become cannibalistic at some point.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

It's not, but we only have one month of data, obviously, we're trying to ramp up our hereditary growth rates, we view that business as getting to mid-teens growth by the end of the year. We're being conservative about our whole genome estimates, although it will pick up. I think we're in a bit of a wait and see on how that's going to shake out, again, fortunate that we don't need it because our two main businesses, oncology testing and data, are over-performing, we'll be fine.

Operator

Your next question comes from the line of Brendan Smith with TD Cowen. Your line is now open.

Brendan Smith
Brendan Smith
Analyst at TD Cowen

Great, guys. Thanks for taking the question. Maybe just another follow-up on the data and Insights business. Following up on your commentary about momentum in that part of the business. You mentioned some of the newer deals being, it sounds like potentially more expansive with some of these pharma guys looking to leverage Lens, you mentioned some of the other data and apps offerings. Just in terms of economics to Tempus, should we assume that some of the concept of those deals drive potentially better revenue to you all over the course of the partnership? Is it maybe faster recognition of booking revs versus backlog?

Brendan Smith
Brendan Smith
Analyst at TD Cowen

Really just trying to understand how some of the levers there manifest and how we should think about the ramp in reported versus TCV as more of those guys get online and get their use of the platform up and running.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

Yeah, I can start and then Jim can jump in. It's probably maybe worth some history. We used to have a business where we would go to people and say, "We have this de-identified data. If you want to license it, we'll send you 5,000 files and you can pay us." Our revenue was very lumpy, but we'd recognize revenue instantaneously. Then we made a shift several years back where we stopped all that upfront revenue and moved people to one-year or two-year or three-year or five-year licenses and really deferred a bunch of that revenue, which was tough to swallow back then, but great for the long-term health of the business because we now have awesome visibility multiple years out.

Eric Lefkofsky
Eric Lefkofsky
Founder and CEO at Tempus AI

I don't expect these new deals where people are getting more ingrained with Lens and getting more ingrained with building small or large models in our environment, accessing GPUs at some scale. I don't think they'll change revenue recognition at all. They just are another element of stickiness that locks people into our ecosystem. They are first locked in because they sign long-term contracts that are fixed in term, and you can't cancel whatever the fixed term is. Number two, they're now locked in because they're building models in our environment, they can't take the models. That said, the main reason they're locked in, we think, is because our data is awesome and the tools are really helpful. If that weren't the case, we wouldn't have this healthy of a data business, and one that continues to grow really fast.

Operator

In the interest of time, our last question comes from the line of Robert Bamberger with Baird. Your line is now open.

Robert Bamberger
Robert Bamberger
Analyst at Baird

Yeah, thanks for taking my question. You guys have cited about a 40% algorithm attach rate on solid tumor. Is that still the case in Q2? I guess, what's the algorithm that drives it and what attach rate is then embedded in your guidance here?

Jim Rogers
Jim Rogers
CFO at Tempus AI

The algorithm attach rate in Q2 is 45%, a slight uptick from the 40% that we had quoted in Q1. It's really broad-based. Obviously, we've got a suite of algorithms that address a number of different questions or insights that physicians may be asking for, and so it's pretty broad-based in terms of which algorithms are being ordered. Then in terms of the guide, many of those algorithms remain not being paid, and so there's no impact on revenue from the number of algorithms. Although it does highlight, again, our advantage in diagnostics are the insights that we provide physicians beyond just the test results. It helps drive that core volume growth, which accelerated to 31% in Q2, is just another factor of the data advantage that we have.

Operator

That concludes our question-and-answer session. I will now turn the conference back over to Liz Krutoholow for closing remarks.

Elizabeth Krutoholow
Elizabeth Krutoholow
VP of Investor Relations at Tempus AI

Thanks everyone for joining us. If you have any questions, please reach out to the IR team. Have a great day.

Operator

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Executives
    • Elizabeth Krutoholow
      Elizabeth Krutoholow
      VP of Investor Relations
    • Eric Lefkofsky
      Eric Lefkofsky
      Founder and CEO
    • Jim Rogers
      Jim Rogers
      CFO
Analysts
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