Nasdaq:PLTR
Palantir Technologies Inc.
A leading provider of AI-driven data analytics and decision-making platforms for government and commercial clients with rapidly accelerating revenue growth.
Key Metrics
Investment Thesis
Bull Case
Investors may buy this stock due to its proven ability to scale profitability, the high barriers to entry in government data analytics, and the expanding addressable market for AI-driven decision-making tools in both public and private sectors.
Bear Case
Cautious investors might avoid the stock given the company's historically large retained earnings deficit, significant capital expenditures relative to current cash flow, and the potential for revenue concentration risks tied to specific large government contracts.
About Palantir Technologies Inc.
Palantir Technologies Inc. develops and deploys data analytics platforms, including its flagship Gotham and Foundry software, serving government agencies, defense sectors, and commercial enterprises in healthcare and finance.
Analysis
Management Discussion
The company demonstrated exceptional financial turnaround, shifting from a loss-making history to generating $1.63B net profit in 2025 with revenue surging to $4.48B, reflecting strong adoption of its commercial platform and successful defense contracts.
Industry Overview
The data analytics industry is experiencing a boom driven by the integration of artificial intelligence and machine learning into enterprise operations, creating strong demand for platforms that can unify disparate data sources for actionable insights.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.91B | $2.23B | $2.87B | $4.48B |
| Cost of Revenue | $408.5M | $431.1M | $566.0M | $789.2M |
| Gross Profit | $1.50B | $1.79B | $2.30B | $3.69B |
| Operating Expenses | $1.66B | $1.67B | $1.99B | $2.27B |
| Operating Income | $-161.2M | $120.0M | $310.4M | $1.41B |
| R&D | $359.7M | $404.6M | $507.9M | $557.7M |
| G&A | $596.3M | $524.3M | $593.5M | $657.7M |
| Marketing | $702.5M | $745.0M | $887.8M | $1.06B |
| Stock-Based Comp | $564.8M | $475.9M | $691.6M | $684.0M |
| D&A | $22.5M | $33.4M | $31.6M | $26.1M |
| Depreciation | $19.5M | $23.7M | $23.7M | — |
| Amortization | — | $9.6M | $7.8M | — |
| Other OpEx | $0 | $0 | $0 | $0 |
| Non-Operating Income | $-199.8M | $117.1M | $178.8M | $243.4M |
| Interest Expense | $4.1M | $3.5M | — | — |
| Interest Income | $20.3M | $132.6M | $196.8M | $229.2M |
| Pre-Tax Income | $-361.0M | $237.1M | $489.2M | $1.66B |
| Income Tax | $10.1M | $19.7M | $21.3M | $22.7M |
| Continuing Ops | $-371.1M | $217.4M | $467.9M | $1.63B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-371.1M | $217.4M | $467.9M | $1.63B |
| Minority Interest | $2.6M | $7.5M | $5.7M | $9.6M |
| Net to Common | $-373.7M | $209.8M | $462.2M | $1.63B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.04B | $4.14B | $5.93B | $8.36B |
| Cash & Equivalents | $2.60B | $831.0M | $2.10B | $1.42B |
| Marketable Securities | $35.1M | $2.84B | $3.13B | $5.75B |
| Accounts Receivable | $258.3M | $364.8M | $575.0M | $1.04B |
| Prepaid Expenses | $133.3M | $99.7M | $129.3M | $139.1M |
| Other Current Assets | $16.2M | $0 | $0 | $0 |
| Long-Term Assets | $419.7M | $383.8M | $406.6M | $542.2M |
| PP&E (Net) | $69.2M | $47.8M | $39.6M | $52.0M |
| Goodwill | $37.9M | — | — | — |
| Operating Leases | $200.2M | $182.9M | $200.7M | $200.1M |
| Other LT Assets | $112.3M | $153.2M | $166.2M | $290.2M |
| Total Assets | $3.46B | $4.52B | $6.34B | $8.90B |
| Current Liabilities | $587.9M | $746.0M | $996.0M | $1.18B |
| Accounts Payable | $44.8M | $12.1M | $103.0K | $8.1M |
| Current Leases | $45.1M | $54.2M | $44.0M | $45.9M |
| Taxes Payable | $41.3M | $47.3M | $42.2M | — |
| Other Current Liab | $284.0M | $409.5M | $482.6M | $766.0M |
| Long-Term Liabilities | $230.9M | $215.4M | $250.5M | $236.8M |
| LT Operating Leases | $204.3M | $175.2M | $195.2M | $183.5M |
| Other LT Liab | $26.6M | $40.2M | $55.2M | $53.3M |
| Total Liabilities | $818.8M | $961.5M | $1.25B | $1.41B |
| Shareholders' Equity | $2.64B | $3.56B | $5.09B | $7.49B |
| Paid-In Capital | $8.43B | $9.12B | $10.19B | $10.93B |
| Retained Earnings | $-5.86B | $-5.65B | $-5.19B | $-3.56B |
| AOCI | $-5.3M | $801.0K | $-5.6M | $13.9M |
| Total L&E | $3.46B | $4.52B | $6.34B | $8.90B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-371.1M | $217.4M | $467.9M | $1.63B |
| Non-Cash Adjustments | $632.4M | $220.7M | $308.5M | $-87.1M |
| Working Capital Changes | $-37.5M | $274.1M | $377.4M | $586.9M |
| Cash from Operations | $223.7M | $712.2M | $1.15B | $2.13B |
| Capital Expenditures | $40.0M | $15.1M | $12.6M | $33.9M |
| Cash from Investing | $-45.4M | $-2.71B | $-340.7M | $-2.78B |
| Share Buybacks | — | — | $64.2M | $75.0M |
| Cash from Financing | $86.0M | $218.8M | $463.4M | $-26.9M |
| FX Effect | $-3.9M | $2.9M | $-6.7M | $7.5M |
| Net Change in Cash | $260.4M | $-1.78B | $1.27B | $-668.5M |
| Beginning Cash | $2.37B | $2.63B | $850.1M | $2.12B |
| Ending Cash | $2.63B | $850.1M | $2.12B | $1.45B |
Frequently Asked Questions
How does Palantir Technologies Inc. make money?
Revenue is driven primarily by the Government segment, which includes federal, state, and local contracts, and the Commercial segment serving private sector customers across industries like healthcare, finance, and manufacturing.
What are the main risks for PLTR?
High dependence on large contract renewals with government entities, potential sensitivity to fiscal year budget cuts in defense spending, and the risk of competition from emerging AI-native startups disrupting traditional analytics markets.
What is PLTR's competitive advantage?
Proprietary machine learning models that improve data integration accuracy, a deep moat in government contracting relationships, and a scalable platform architecture that reduces customer acquisition costs over time.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.