Tempus AI Enters Non-Exclusive Distribution Deal with Median for Cancer Diagnosis Software

What happened

Tempus AI has announced a non-exclusive distribution agreement with Median Technologies to expand access to the eyonis® LCS Software as a Medical Device in the United States, enhancing its AI-powered diagnostic toolkit. This move aligns with Tempus' ongoing strategy to scale integrated diagnostics and data applications, as highlighted in its recent filings and growth initiatives. However, the partnership is non-exclusive and relatively minor compared to larger deals like the AstraZeneca collaboration, limiting its potential competitive advantage. Given Tempus' high valuation, persistent GAAP losses, and unresolved legal risks from class actions and billing scrutiny, this news does little to address core financial vulnerabilities. Thus, while it supports the growth narrative, the impact on Tempus' operational or risk profile is likely incremental at best.

Implication

The agreement could provide a slight uplift to Tempus' Data and applications segment, which grew 31% in 2025, by adding new software tools for early cancer detection and integration into its multimodal platform. It reinforces Tempus' expansion into AI diagnostics, potentially aiding cross-sell with existing oncology and hereditary testing customers, as outlined in its roadmap. However, the non-exclusive nature limits strategic value, and the financial contribution is likely minimal compared to major contracts like the $200M AstraZeneca deal, not addressing the high fixed costs or working capital drag. Investors should remain wary, as this does not resolve the legal, regulatory, and reimbursement risks that underpin the POTENTIAL SELL rating and bear case valuation of $45. Overall, this is a positive but insufficient catalyst, emphasizing the need for clearer evidence of EBITDA leverage or risk resolution before any bullish shift.

Thesis delta

This news does not materially change the investment thesis for Tempus AI. The core thesis remains cautious due to high valuation, persistent GAAP losses, and unresolved legal and reimbursement risks, which overshadow incremental partnerships. Any bullish shift still requires sustained data growth above 30% with improving EBITDA margins or resolution of legal overhangs, neither of which this deal addresses.