SB Tempus

On May 18, 2024, the Company entered into a Joint Venture Agreement (the "Joint Venture Agreement") with SoftBank Group Corporation ("SoftBank") to form SB Tempus Corp. (the "Joint Venture" or "SB Tempus"). The Joint Venture closed on July 18, 2024, at which time the Company and SoftBank each contributed ¥15 billion ($95.2 million). Each party received 50% of SB Tempus's outstanding capital stock and board seats. SB Tempus will engage in certain business activities in Japan similar to those conducted by the Company in the United States, including performing clinical sequencing, organizing patient data, and building a real world data business in Japan.

SB Tempus is considered a VIE as the Company does not have sufficient equity at risk and is entitled to receive residual returns of SB Tempus through its equity stake. Decisions that significantly impact the economic performance of SB Tempus require the consent of both the Company and SoftBank. Therefore, the Company concluded that neither party is deemed to have predominant control over SB Tempus, and the Company is not considered to be the primary beneficiary.

The Company's maximum exposure to loss from SB Tempus is equal to the carrying value of the Company's investment. As of September 30, 2026, the carrying value of the investment in SB Tempus was $77.6 million. The Company's share of losses from SB Tempus are recorded in Losses from equity method investments. As of September 30, 2026 and December 31, 2025, accounts receivable related to SB Tempus was $0.3 million and $0.2 million, respectively.

In connection with entering into the Joint Venture Agreement, the Company entered into a Data License Agreement (the "Data License Agreement"), under which the Company granted SB Tempus a limited, non-exclusive, transferable license with a limited right to sublicense certain de-identified data for certain specified uses solely in Japan. Under the Data License Agreement, SB Tempus paid the Company ¥7.5 billion ($47.9 million) in exchange for the license to an initial records batch, which is recorded in deferred revenue and has been fully recognized into Data and applications revenue over the term of the license subscription which ended on March 31, 2026. For the three months ended September 30, 2026 and 2025, the Company recognized $0 and $6.2 million in Data and applications revenue related to the Data License Agreement, respectively. For the nine months ended September 30, 2026 and 2025, the Company recognized $6.2 million and $18.7 million in Data and applications revenue related to the Data License Agreement, respectively. As of September 30, 2026 and December 31, 2025, deferred revenue related to SB Tempus was $0.0 million and $6.2 million, respectively.

In addition, on July 18, 2024, the Company and SB Tempus entered into an Intellectual Property Agreement (the "IP License Agreement") under which SB Tempus paid the Company an additional ¥7.5 billion ($47.9 million) in exchange for a non-exclusive license to certain of the Company's technologies for certain specified uses solely in Japan. The payment is recorded in deferred other income and will be amortized into Other income, net over three years, based on the estimated time for SB Tempus' systems and technologies to diverge from the Company's. As of September 30, 2026, Deferred other income and Deferred other income, less current portion were $12.0 million and $0 million, respectively, which solely represent deferred other income from SB Tempus. As of December 31, 2025, Deferred other income and Deferred other income, less current portion were $16.0 million and $8.0 million, respectively, which solely represent deferred other income from SB Tempus. For each of the three months ended September 30, 2026 and 2025, the Company recognized $4.0 million related to the IP License Agreement. For each of the nine months ended September 30, 2026 and 2025, the Company recognized $12.0 million related to the IP License Agreement.