Frontier Small Cap Growth Fund praised Tempus AI for significant gains and positive EBITDA

Frontier Capital Management released its first quarter 2025 investor letter for the Frontier Small Cap Growth Fund, showing a return of -14.43% for Class N shares, compared to the benchmark Russell 2000 Growth Index’s -11.12%. The fund returned -14.50% for the 12 months ended March 31, 2025. US equities traded lower in the first quarter.

In the investor letter, Frontier Small Cap Growth Fund highlighted Tempus AI, Inc. (NASDAQ:TEM), a healthcare technology company. The one-month return of TEM was -1.77%, and shares gained 97.44% over the last 52 weeks. On July 3, 2025, TEM stock closed at $60.99 per share, with a market capitalization of $10.558 billion.

Frontier Small Cap Growth Fund praised Tempus AI, Inc. in its investor letter, citing a 43% gain due to robust growth and IPO lockup period end. Tempus is a healthcare company providing diagnostics platforms and data analytics. Despite not yet being profitable, Tempus guided slightly positive EBITDA for 2025, showing significant growth compared to previous periods.

Tempus AI, Inc. (NASDAQ:TEM) saw an increase in revenue of 75.4% year-over-year to $255.7 million in the first quarter of 2025. While the potential for TEM as an investment is acknowledged, greater promise is seen in AI stocks for higher returns within a shorter timeframe. Hedge funds held 21 portfolios with TEM at the end of the quarter.

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Read more at Yahoo Finance: Here’s What Boosted Tempus AI (TEM) in Q1