Alex

$TEM has Q2 earnings coming up July 30th. Last year they reported August 8th, so they pulled it forward by over a week. Could mean absolutely nothing. But in my experience, when a company moves earnings *earlier* it’s usually because they’re not trying to bury bad news. What I’m watching for Q2: I think profitability should look a lot cleaner this quarter. Two reasons: 1. Payroll/bonus stuff normalizes- Q1 had some weird oneoff accruals tied to comp/bonuses that dinged margins. Those should be out of the system now, so opex gets a natural tailwind + PSNL mark to mark gain. 2. Topline is still holding up- Revenue trends have been solid, and if that continues while costs normalize, you get real operating leverage which is what im hoping for. If I’m right, we should see margins step up meaningfully vs Q1 and maybe even vs last year. I don’t think the Street is fully modeling that yet. Other Q2 things to keep an eye on: - Cash flow conversion — did those bonus payments hit FCF last quarter and now reverse? - Any update to full year guide. If margins are inflecting, they’ll either raise or at least sound more confident. - Commentary on hiring/pace of investment. If they’re still seeing growth, they might lean back into spending. -Data side of the business. How is the mix shifting from diagnostics? We need to see continued growth. -Updates on $PSNL partnership and pipeline. -Potential new Pharma partnerships Basically, this could be the first “clean” quarter in a while without the BS. If it shows up in the numbers, I think people will notice.