$TEM DOWN OVER 16% AFTER SPRUCE POINT SHORT REPORT
Spruce alleges AI drives just 2% of revenue, cites questionable leadership and aggressive accounting — sees 50–60% downside 👀 pic.twitter.com/ONPxUYyYQM
— Shay Boloor (@StockSavvyShay) May 28, 2025
Tempus AI is facing a sharp selloff after Spruce Point Capital released a scathing short report questioning the company’s financial practices and leadership. Shares have plunged over 16 percent, with Spruce Point warning of a potential 50 to 60 percent downside. This report is not just another bearish call. It raises serious concerns about the company’s core business model and the credibility of its leadership.
Spruce Point alleges that less than 2 percent of Tempus AI’s revenue comes from AI applications, despite the company’s branding as an AI-driven healthcare firm. The report highlights CEO Eric Lefkofsky’s history of promoting disruptive technology companies, only to cash out early while shareholders are left with losses. This pattern of behavior raises red flags about the long-term viability of Tempus AI’s business strategy.
The forensic review also points to aggressive accounting tactics, including questionable revenue recognition and potential round-tripped sales. Spruce Point scrutinized Tempus AI’s billing practices, warning that the company may be inflating revenue through high-risk billing codes. These findings suggest that Tempus AI’s financials may not be as solid as investors once believed.
Despite the selloff, Tempus AI stock remains up 62 percent year-to-date, but analysts are watching closely to see if further declines follow. The market reaction reflects growing skepticism about the company’s ability to sustain its valuation. Investors should take a hard look at the numbers and consider whether the AI narrative is backed by real revenue or just market hype.