What changed in this filing

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Item 1. Financial Statements

2025-05-06 compared with 2024-11-05 · 161 added, 277 removed, 429 unchanged (51% of the section changed)

3 unchanged sentences

(in thousands, except per share amounts)

As of September 30, As of December 31,

As of March 31,

2025 As of December 31,

Current assets:

22 unchanged sentences

Commitments and Contingencies (Note 7)

Stockholders’ equity:

Palantir's stockholders’ equity:

Common stock, $ 0.001 par value:

20,000,000 Class A shares authorized as of September 30, 2024 and December 31, 2023;

2,172,437 and 2,096,982 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively;

2,700,000 Class B shares authorized as of September 30, 2024 and December 31, 2023;

96,367 and 102,141 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively;

and 1,005 Class F shares authorized, issued, and outstanding as of September 30, 2024 and December 31, 2023

20,000,000 Class A shares authorized as of March 31, 2025 and December 31, 2024;

2,262,655 and 2,242,389 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively;

2,700,000 Class B shares authorized as of March 31, 2025 and December 31, 2024;

96,003 and 95,401 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively;

and 1,005 Class F shares authorized, issued, and outstanding as of March 31, 2025 and December 31, 2024

Additional paid-in capital 10,398,181 10,193,970

Accumulated other comprehensive income, net 4,925 801

Accumulated other comprehensive income (loss), net ( 2,994 ) ( 5,611 )

Accumulated deficit ( 4,973,392 ) ( 5,187,423 )

Total stockholders’ equity 4,498,143 3,475,561

Total Palantir's stockholders’ equity 5,424,155 5,003,275

Noncontrolling interests 94,818 91,132

5 unchanged sentences

(in thousands, except per share amounts)

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Revenue $ 883,855 $ 634,338

22 unchanged sentences

(in thousands)

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Net income $ 217,717 $ 106,071

1 unchanged sentence

Foreign currency translation adjustments 3,853 ( 1,899 )

Net unrealized gain (loss) on available-for-sale securities 4,094 168 ( 581 ) ( 604 )

Net unrealized loss on available-for-sale securities ( 1,236 ) ( 4,622 )

Comprehensive income 220,334 99,550

5 unchanged sentences

(in thousands)

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss, Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

Balance as of June 30, 2024 2,237,939 $ 2,238 $ 9,463,178 $ ( 4,935 ) $ ( 5,409,957 ) $ 4,050,524 $ 87,282 $ 4,137,806

Balance as of December 31, 2024 2,338,795 $ 2,339 $ 10,193,970 $ ( 5,611 ) $ ( 5,187,423 ) $ 5,003,275 $ 91,132 $ 5,094,407

Issuance of common stock from the exercise of stock options 13,574 14 66,570 — — 66,584 — 66,584

2 unchanged sentences

Stock-based compensation — — 155,646 — — 155,646 — 155,646

Other comprehensive income (loss) — — — 9,860 — 9,860 121 9,981

Other comprehensive income — — — 2,617 — 2,617 — 2,617

Net income — — — — 214,031 214,031 3,686 217,717

Balance as of September 30, 2024 2,269,809 $ 2,270 $ 9,757,380 $ 4,925 $ ( 5,266,432 ) $ 4,498,143 $ 93,219 $ 4,591,362

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity

Balance as of March 31, 2025 2,359,663 $ 2,360 $ 10,398,181 $ ( 2,994 ) $ ( 4,973,392 ) $ 5,424,155 $ 94,818 $ 5,518,973

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

4 unchanged sentences

Stock-based compensation — — 125,817 — — 125,817 — 125,817

Other comprehensive income (loss) — — — 4,124 — 4,124 14 4,138

Net income — — — — 383,181 383,181 7,801 390,982

Balance as of September 30, 2024 2,269,809 $ 2,270 $ 9,757,380 $ 4,925 $ ( 5,266,432 ) $ 4,498,143 $ 93,219 $ 4,591,362

Palantir Technologies Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss, Net Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

Balance as of June 30, 2023 2,149,980 $ 2,149 $ 8,773,043 $ ( 5,209 ) $ ( 5,814,509 ) $ 2,955,474 $ 79,664 $ 3,035,138

Issuance of common stock from the exercise of stock options 10,889 11 50,545 — — 50,556 — 50,556

Issuance of common stock upon vesting of RSUs 14,372 14 ( 14 ) — — — — —

Stock-based compensation — — 114,476 — — 114,476 — 114,476

Other comprehensive loss — — — ( 6,521 ) — ( 6,521 ) — ( 6,521 )

Other, net — — — — — — 284 284

Net income — — — — 105,530 105,530 541 106,071

Balance as of September 30, 2023 2,175,241 $ 2,174 $ 8,938,050 $ ( 7,205 ) $ ( 5,743,004 ) $ 3,190,015 $ 81,882 $ 3,271,897

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss, Net Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

Balance as of December 31, 2022 2,099,075 $ 2,099 $ 8,427,998 $ ( 5,333 ) $ ( 5,859,438 ) $ 2,565,326 $ 77,111 $ 2,642,437

Issuance of common stock from the exercise of stock options 35,332 35 166,794 — — 166,829 — 166,829

Issuance of common stock upon vesting of RSUs 40,834 40 ( 40 ) — — — — —

Stock-based compensation — — 343,298 — — 343,298 — 343,298

Other comprehensive loss — — — ( 1,872 ) — ( 1,872 ) — ( 1,872 )

Other, net — — — — — — 743 743

Net income — — — — 116,434 116,434 4,028 120,462

Balance as of September 30, 2023 2,175,241 $ 2,174 $ 8,938,050 $ ( 7,205 ) $ ( 5,743,004 ) $ 3,190,015 $ 81,882 $ 3,271,897

Balance as of March 31, 2024 2,226,963 $ 2,227 $ 9,322,803 $ ( 5,720 ) $ ( 5,544,083 ) $ 3,775,227 $ 85,945 $ 3,861,172

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Operating activities

3 unchanged sentences

Stock-based compensation 155,339 125,651

Noncash operating lease expense 32,041 34,810

Unrealized and realized (gain) loss from marketable securities, net 10,688 12,354

3 unchanged sentences

Accounts receivable, net ( 134,959 ) ( 121,884 )

Prepaid expenses and other current assets ( 19,547 ) ( 75 )

Other assets 4,056 1,941

Accounts payable 7,710 ( 32,387 )

Accrued liabilities 42,149 2,552

Deferred revenue, current and noncurrent ( 27,117 ) 64,464

Customer deposits, current and noncurrent 159,457 84,272

Operating lease liabilities, current and noncurrent ( 35,205 ) ( 37,767 )

Other noncurrent liabilities 5,943 184

Prepaid expenses and other assets 40,730 22,924

Accounts payable and accrued liabilities 22,395 4,704

Contract liabilities 18,760 ( 6,849 )

Other liabilities ( 13,247 ) ( 15,515 )

Net cash provided by operating activities 310,263 129,579

3 unchanged sentences

Proceeds from sales and redemption of marketable securities 350,627 751,746

Proceeds from sales of alternative investments — 51,072

Other investing activities ( 30,000 ) —

3 unchanged sentences

Repurchases of common stock ( 17,998 ) ( 9,000 )

Taxes paid related to net share settlement of equity awards ( 77,573 ) —

Other financing activities 90 408

Net cash provided by financing activities 224,700 167,607

Net cash provided by (used in) financing activities ( 28,897 ) 75,248

Effect of foreign exchange on cash, cash equivalents, and restricted cash 3,980 ( 4,024 )

23 unchanged sentences

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods.

Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to, the identification of performance obligations in customer contracts, the valuation of deferred tax assets and uncertain tax positions, and the collectability of contract consideration, including accounts receivable.

Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to, the identification of performance obligations in customer contracts, the valuation of deferred tax assets and uncertain tax positions, the valuation and recognition of stock-based compensation awards, and the collectability of contract consideration, including accounts receivable.

Estimates and judgments are based on historical experience, forecasted events, and various other assumptions that management believes to be reasonable under the circumstances.

3 unchanged sentences

Significant Accounting Policies in the notes to consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 18, 2025.

There have been no significant changes to these policies during the nine months ended September 30, 2024, except for the changes noted below.

There have been no significant changes to these policies during the three months ended March 31, 2025, except for the changes noted below.

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid investments purchased with an original maturity of three months or less at the time of purchase to be cash equivalents.

Cash equivalents primarily consist of amounts invested in money market funds and available-for-sale debt securities.

Restricted cash primarily consists of cash and certificates of deposit that are held as collateral against letters of credit and guarantees that the Company is required to maintain for operating lease agreements, certain customer contracts, and other guarantees and financing arrangements.

Cash equivalents primarily consist of amounts invested in money market funds and U.S.

Treasury securities with original maturities of three months or less.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the amounts shown in the condensed consolidated statements of cash flows (in thousands):

As of September 30,

As of March 31,

Cash and cash equivalents $ 993,464 $ 520,388

2 unchanged sentences

Total cash, cash equivalents, and restricted cash $ 1,015,005 $ 539,665

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are recorded at the invoiced amount, net of an allowance for credit losses.

The Company generally grants non-collateralized credit terms to its customers.

Allowance for credit losses is based on the Company’s best estimate of probable losses inherent in its accounts receivable portfolio and is determined based on expectations of the customer’s ability to pay by considering factors such as customer type (commercial or government), historical experience, financial position of the customer, age of the accounts receivable, current economic conditions, and reasonable and supportable forward-looking factors about its portfolio and future economic conditions.

Accounts receivable are written-off and charged against an allowance for credit losses when the Company has exhausted collection efforts without success.

Based upon the Company’s assessment as of September 30, 2024 and December 31, 2023, the Company recorded an allowance for credit losses of $ 1.5 million and $ 10.5 million, respectively.

Concentrations of Credit Risk

6 unchanged sentences

The Company is exposed to concentrations of credit risk with respect to accounts receivable presented on the condensed consolidated balance sheets.

The Company’s accounts receivable balances as of September 30, 2024 and December 31, 2023 were $ 668.1 million and $ 364.8 million, respectively.

Customer I represented 21 % and 15 % of total accounts receivable as of September 30, 2024 and December 31, 2023, respectively, and Customer J represented 17 % of total accounts receivable as of September 30, 2024.

No other customer represented more than 10% of total accounts receivable as of September 30, 2024 or December 31, 2023.

For the three and nine months ended September 30, 2024 and 2023, no customer represented more than 10% of total revenue.

Share Repurchase Program

Share repurchases are recorded at trade date and the repurchase price is inclusive of any related fees and commissions.

Upon retirement, the par value of the Class A common stock repurchased is deducted from common stock with the excess of repurchase price recorded to additional paid-in capital on the Company’s condensed consolidated balance sheets.

Stock-Based Compensation

The Company accounts for stock-based compensation expense in accordance with the fair value recognition and measurement provisions of GAAP, which require compensation cost for the grant-date fair value of stock-based awards to be recognized over the requisite service period.

The Company determines the fair value of stock-based awards granted or modified on the grant date or modification date using appropriate valuation techniques.

The assumptions used to determine the grant-date fair value of the awards represent management’s best estimates.

These estimates involve inherent uncertainties and the application of management’s judgment.

The Company recognizes forfeitures as they occur.

Service-Based Awards

The Company grants awards, including RSUs, stock option awards, and stock appreciation rights (“SARs”), which vest based upon the satisfaction of a service condition.

For such awards, the Company records stock-based compensation expense on a

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

straight-line basis over the requisite service period.

The Company determines the grant-date fair value of the RSUs based on the fair value of the Company’s common stock on the grant date.

For stock option awards and SARs that vest over an explicit service period and are exercisable at expiration, during a limited window (“Time-Vesting SARs”), the Company uses the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the grant-date fair value of the awards.

The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the expected term of the award, the expected volatility rate, risk-free interest rate, and the expected dividend yield of the common stock.

Performance-Based Awards

The Company also grants awards, including RSUs, that vest upon the satisfaction of both a service condition and a performance condition.

The Company determines the grant-date fair value of RSUs with both a service-based vesting condition and a performance-based vesting condition based on the fair value of the Company’s common stock on the grant date and records stock-based compensation expense using the accelerated attribution method over the service period.

The performance-based vesting condition for the RSUs granted prior to September 30, 2020, the date the Company completed a direct listing of its Class A common stock on the New York Stock Exchange (the “Direct Listing”) was satisfied upon the occurrence of the Company’s Direct Listing.

For P-RSUs granted after the Direct Listing, the Company recognizes expense for the number of P-RSUs expected to vest, determined based on the level of achievement against certain performance conditions, over the requisite service period when it is probable that the performance condition will be achieved.

Market-Based Awards

The Company grants awards, including SARs, that vest upon the satisfaction of market-based vesting conditions.

For SARs that vest upon the satisfaction of a market-based vesting condition without an explicit service-based condition (“Market-Vesting SARs”), the Company estimates the grant-date fair value of the awards and the corresponding derived service period using a Monte Carlo simulation model, which requires the use of various assumptions including the contractual term, expected volatility rate, risk-free interest rate, suboptimal exercise factor, annual post-vest termination rate, and cost of equity as of the grant date.

Stock-based compensation expense for these awards is recognized over the derived service period.

If the market condition is achieved earlier than its derived service period, the remaining stock-based compensation expense will be accelerated, and a cumulative catch-up expense will be recorded during the period in which the market condition is met.

Once the derived service period is complete, previously recognized stock-based compensation expense related to Market-Vesting SARs will not be reversed even if the specified market condition is not achieved.

The Company’s accounts receivable balances as of March 31, 2025 and December 31, 2024 were $ 725.2 million and $ 575.0 million, respectively.

Customer I represented 23 % and 26 % of total accounts receivable as of March 31, 2025 and December 31, 2024, respectively.

No other customer represented more than 10% of total accounts receivable as of March 31, 2025 and December 31, 2024.

For the three months ended March 31, 2025 and 2024, no customer represented more than 10% of total revenue.

Recent Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes – Improvements to Income Tax Disclosures , requiring enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid.

This ASU is effective for fiscal years beginning after December 15, 2024 on a prospective basis and retrospective application is permitted.

The Company is currently evaluating the impacts of the new standard on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures, which requires the disclosure of additional information about specific expense categories in the notes to the consolidated financial statements on an annual and interim basis.

The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 on either a prospective or retrospective basis, with early adoption permitted.

The Company is currently evaluating the impacts of the new standard on its consolidated financial statements.

Contract Liabilities and Remaining Performance Obligations

1 unchanged sentence

The Company’s contract liabilities consist of deferred revenue and customer deposits.

As of September 30, 2024 and December 31, 2023, the Company's contract liability balances were $ 615.1 million and $ 486.3 million, respectively.

Revenue of $ 440.9 million and $ 314.9 million was recognized during the nine months ended September 30, 2024 and 2023, respectively, that was included in the contract liability balances as of December 31, 2023 and 2022, respectively.

As of March 31, 2025 and December 31, 2024 the Company's contract liabilities were $ 587.5 million and $ 566.4 million, respectively.

Revenue of $ 258.6 million and $ 244.3 million was recognized during the three months ended March 31, 2025 and 2024, respectively, that was included in contract liabilities as of December 31, 2024 and 2023, respectively.

Remaining Performance Obligations

The Company’s arrangements with its customers often have terms that span over multiple years.

However, the Company allows many of its customers to terminate contracts for convenience prior to the end of the stated term with less than twelve months’ notice.

However, the Company allows many of its customers to terminate contracts for convenience prior to the end of the stated term with less than twelve months’

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Revenue allocated to remaining performance obligations represents noncancelable contracted revenue that has not yet been recognized, which includes deferred revenue and, in certain instances, amounts that will be invoiced.

1 unchanged sentence

Cancelable contracted revenue, which includes customer deposits, is not considered a remaining performance obligation.

The Company’s remaining performance obligations were $ 1.6 billion as of September 30, 2024, of which the Company expects to recognize approximately 46 % as revenue over the next 12 months, 39 % as revenue over the subsequent 13 to 36 months, and the remainder thereafter.

The Company’s remaining performance obligations were $ 1.9 billion as of March 31, 2025, of which the Company expects to recognize approximately 47 % as revenue over the next 12 months, 41 % as revenue over the subsequent 13 to 36 months, and the remainder thereafter.

Disaggregation of Revenue

Segment and Geographic Information for disaggregated revenue by customer segment and geographic region.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Investments and Fair Value Measurements

The following tables present the Company’s assets that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation (in thousands):

As of September 30, 2024

As of March 31, 2025

Total Level 1 Level 2 Level 3

11 unchanged sentences

Money market funds $ 1,823,046 $ 1,823,046 $ — $ —

U.S Treasury securities 10,079 — 10,079 —

Certificates of deposit 938 — 938 —

Prepaid expenses and other current assets and other assets:

8 unchanged sentences

These inputs include interest rate curves, foreign exchange rates, and credit ratings.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Debt Securities

As of September 30, 2024, available-for-sale debt securities, all of which are included in marketable securities on the condensed consolidated balance sheet, consisted of the following (in thousands):

As of September 30, 2024

As of March 31, 2025, available-for-sale debt securities, all of which are included in marketable securities on the condensed consolidated balance sheet, consisted of the following (in thousands):

As of March 31, 2025

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

1 unchanged sentence

Total debt securities $ 4,426,621 $ 464 $ ( 1,291 ) $ 4,425,794

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

As of December 31, 2023, available-for-sale debt securities consisted of the following (in thousands):

As of December 31, 2024, available-for-sale debt securities, all of which are included in marketable securities on the condensed consolidated balance sheet, consisted of the following (in thousands):

As of December 31, 2024

2 unchanged sentences

Total debt securities $ 3,110,278 $ 1,022 $ ( 613 ) $ 3,110,687

Included in cash and cash equivalents $ 10,078 $ 1 $ — $ 10,079

Included in marketable securities $ 2,821,427 $ 4,519 $ ( 1,085 ) $ 2,824,861

The Company did not sell any available-for-sale debt securities during the three and nine months ended September 30, 2024 or for the three months ended September 30, 2023.

The Company sold $ 694.6 million of available-for-sale debt securities during the nine months ended September 30, 2023 and immediately reinvested such proceeds into additional debt securities.

The Company sold $ 279.7 million of available-for-sale debt securities during the three months ended March 31, 2025.

The realized gains and losses from those sales were immaterial.

No credit or non-credit losses related to debt securities were recorded during the three and nine months ended September 30, 2024 and 2023.

As of September 30, 2024 and December 31, 2023, available-for-sale debt securities of $ 76.9 million and $ 236.0 million, respectively, were in an unrealized loss position primarily due to unfavorable changes in interest rates subsequent to initial purchase.

None of the available-for-sale debt securities held as of September 30, 2024 or December 31, 2023 were in a continuous unrealized loss position for greater than 12 months.

The decline in fair value below amortized cost basis was not considered other than temporary as it is more likely than not that the Company will hold the securities until maturity or a recovery of the cost basis, and no credit-related impairment losses were recorded as of September 30, 2024 or December 31, 2023.

No available-for-sale debt securities were sold during the three months ended March 31, 2024.

No credit or non-credit losses related to debt securities were recorded as of March 31, 2025 or 2024.

As of March 31, 2025 and December 31, 2024, available-for-sale debt securities of $ 3.1 billion and $ 0.7 billion, respectively, were in an unrealized loss position primarily due to unfavorable changes in interest rates subsequent to initial purchase.

None of the available-for-sale debt securities held as of March 31, 2025 or December 31, 2024 were in a continuous unrealized loss position for greater than 12 months.

The decline in fair value below amortized cost basis was not attributed to credit-related factors and it is more likely than not that the Company will hold the securities until maturity or a recovery of the cost basis.

No credit-related impairment losses were recorded as of March 31, 2025 or December 31, 2024.

All of the Company’s U.S.

Treasury securities had remaining contractual maturities due within one year as of September 30, 2024.

Treasury securities had contractual maturities due within one year as of March 31, 2025 and December 31, 2024.

Equity Securities

1 unchanged sentence

Realized and unrealized gains and losses are recorded in other income (expense), net on the condensed consolidated statements of operations.

For the three months ended September 30, 2024 and 2023, net unrealized losses from publicly-traded equity securities held at the end of each period were $ 5.4 million and $ 0.7 million, respectively.

For the nine months ended September 30, 2024 and 2023, net unrealized losses from publicly-traded equity securities held at the end of each period were $ 12.2 million and $ 5.6 million, respectively.

For the three months ended March 31, 2025 and 2024, net unrealized losses from publicly-traded equity securities held at the end of each period were $ 10.7 million and $ 10.9 million, respectively.

The Company also holds equity securities in privately-held companies without readily determinable fair values that are recorded using the measurement alternative.

As of September 30, 2024 and December 31, 2023, the total amount of privately-held equity securities included in other assets on the consolidated balance sheets was $ 52.6 million and $ 32.6 million, respectively.

As of March 31, 2025 and December 31, 2024, the total amount of privately-held equity securities included in other assets on the consolidated balance sheets was $ 104.5 million and $ 64.9 million, respectively.

The Company classifies these fair value measurements as Level 3 within the fair value hierarchy.

The Company did not record any material adjustments or impairments for the privately-held equity securities held during the three and nine months ended September 30, 2024 and 2023.

The Company recorded upward adjustments of $ 4.7 million due to observable price changes and no material downward adjustments or impairments for the privately-held equity securities during the three months ended March 31, 2025;

and did not record any material adjustments or impairments for the privately-held equity securities during the three months ended March 31, 2024.

Cumulative downward adjustments and impairments were not material and cumulative upward adjustments were $ 4.7 million on privately-held equity securities held by the Company as of March 31, 2025.

Additionally, we have accepted, and may continue to accept, securities as noncash consideration.

Total equity securities received as noncash consideration was $ 41.5 million and $ 17.3 million during the nine months ended September 30, 2024 and 2023, respectively.

Total equity securities received as noncash consideration was $ 6.2 million and $ 10.9 million during the three months ended March 31, 2025 and 2024, respectively.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Strategic Commercial Contracts

From 2021 through 2022, the Company approved and entered into certain agreements (“Investment Agreements”) to purchase shares of various entities, including special purpose acquisition companies and/or other privately-held or publicly-traded entities (each, an “Investee,” and such purchases, the “Investments”).

No Investments were purchased under such Investment Agreements during the nine months ended September 30, 2024 or the fiscal year ended December 31, 2023.

No Investments were purchased under such Investment Agreements during the three months ended March 31, 2025 or the fiscal year ended December 31, 2024.

In connection with signing the Investment Agreements, each Investee or an associated entity and the Company entered into a commercial contract for access to the Company’s products and services (collectively, the “Strategic Commercial Contracts”).

1 unchanged sentence

The Company performs ongoing assessments of customers’ financial condition, including the consideration of customers’ ability and intention to pay, and whether all or some portion of the value of such contracts continue to meet the criteria for revenue recognition, among other factors.

During the three months ended September 30, 2024 and 2023, revenue recognized from Strategic Commercial Contracts was $ 9.6 million and $ 14.7 million, respectively.

During the nine

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

months ended September 30, 2024 and 2023, revenue recognized from Strategic Commercial Contracts was $ 42.7 million and $ 67.4 million, respectively.

During the three months ended March 31, 2025 and 2024, revenue recognized from Strategic Commercial Contracts was $ 5.1 million and $ 23.9 million, respectively.

Balance Sheet Components

1 unchanged sentence

Property and equipment, net consisted of the following (in thousands):

As of September 30, 2024 As of December 31, 2023

As of March 31, 2025 As of December 31, 2024

Leasehold improvements $ 89,216 $ 85,284

5 unchanged sentences

Total property and equipment, net $ 39,669 $ 39,638

Depreciation and amortization expense related to property and equipment, net was $ 6.1 million and $ 6.3 million for the three months ended September 30, 2024 and 2023, respectively, and $ 18.2 million and $ 18.2 million for the nine months ended September 30, 2024 and 2023, respectively.

Depreciation and amortization expense related to property and equipment, net was $ 5.5 million and $ 6.0 million for the three months ended March 31, 2025 and 2024, respectively.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

As of September 30, 2024 As of December 31, 2023

As of March 31, 2025 As of December 31, 2024

Accrued payroll and related expenses $ 205,705 $ 306,939

Accrued taxes 31,952 47,257

Accrued other liabilities 165,356 120,107

2 unchanged sentences

In October 2014, the Company entered into an unsecured revolving credit facility, which has been subsequently secured by substantially all of the Company’s assets and amended from time to time (as amended, the “2014 Credit Facility”).

As of September 30, 2024, the Company had no outstanding debt balances and had undrawn revolving commitments of $ 500.0 million available to fund working capital and general corporate expenditures under the 2014 Credit Facility, which has a maturity date of March 31, 2027.

As of March 31, 2025, the Company had no outstanding debt balances and had undrawn revolving commitments of $ 500.0 million available to fund working capital and general corporate expenditures under the 2014 Credit Facility, which has a maturity date of March 31, 2027.

The 2014 Credit Facility contains customary representations and warranties, and certain financial and nonfinancial covenants, including but not limited to maintaining minimum liquidity of $ 50.0 million, and certain limitations on liens and indebtedness.

The Company was in compliance with all covenants associated with the 2014 Credit Facility as of September 30, 2024.

Commitments and Contingencies

Purchase Commitments

The Company has commitments with various third parties to purchase cloud hosting services.

In September 2023, the Company amended one of its third-party cloud hosting services agreements.

Under this amendment, the Company has committed to spend at least $ 1.95 billion over ten contract years through September 30, 2033, as well as certain additional minimum usage commitments, among other things.

The Company satisfied its $ 154.0 million commitment for the contract year ending September 30, 2024.

The commitment amount for the contract year beginning October 1, 2024 and ending September 30, 2025 is $ 160.2 million.

Additionally, as of September 30, 2024, there were no material changes outside the ordinary course of

The Company was in compliance with all covenants associated with the 2014 Credit Facility as of March 31, 2025.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

business of the Company’s commitments, as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023.

Commitments and Contingencies

Purchase Commitments

The Company has commitments with various third parties to purchase primarily cloud hosting services.

Under one of its third-party cloud services agreements, as amended, the Company has committed to spend at least $ 1.95 billion over ten contract years through September 30, 2033, as well as certain additional minimum usage commitments, among other things.

As of March 31, 2025, the Company satisfied $ 113.0 million of its $ 160.2 million commitment for the contract year beginning October 1, 2024 and ending September 30, 2025.

Additionally, as of March 31, 2025, there were no material changes outside the ordinary course of business to the Company’s commitments, as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024.

Litigation and Legal Proceedings

From time to time, third parties may assert patent infringement claims against the Company.

In addition, from time to time, the Company may be subject to other legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, copyrights, and other intellectual property rights;

employment claims;

securities claims;

investor claims;

corporate claims;

class action claims;

and general contract, tort, or other claims.

The Company may from time to time also be subject to various legal or government claims, disputes, or investigations.

Such matters may include, but not be limited to, claims, disputes, allegations, or investigations related to warranty;

breach of contract;

The Company has been, is currently party to, and may, from time to time, be subject to various legal proceedings, claims, disputes, government investigations, or similar matters arising in the normal course of business.

These may include proceedings, claims, disputes, allegations, or investigations related to, but not limited to, intellectual property;

class actions;

contract or breach of contract;

breach, leak, or misuse of personal data or confidential information;

government procurement;

intellectual property;

government regulation or compliance (including but not limited to anti-corruption requirements, export or other trade controls, data privacy or data protection, cybersecurity requirements, or antitrust/competition law requirements);

government regulation or compliance;

or other matters.

The Company establishes an accrual for loss contingencies when the loss is both probable and reasonably estimable.

The Company evaluates associated developments on a regular basis and establishes an accrual for loss contingencies when the loss is both probable and reasonably estimable.

On September 15, 2022, October 25, 2022, and November 4, 2022, putative securities class action complaints were filed in the United States District Court for the District of Colorado, captioned Cupat v.

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On May 24, 2024, plaintiffs filed a second amended complaint.

On April 4, 2025, the Court dismissed the Cupat matter with prejudice and entered judgment for the defendants on the same day.

On May 2, 2025, plaintiffs filed a Notice of Appeal from the final judgment with the United States Court of Appeals for the Tenth Circuit.

On November 21, 2022, a stockholder derivative action was filed in the United States District Court for the District of Colorado, captioned Li v.

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2023-0864 against certain current and former officers and directors asserting breach of fiduciary duty and related claims relating to the allegations of the securities class action complaints and seeks unspecified damages and injunctive relief under Delaware law.

Because the litigation is in early stages, the Company is unable to estimate the reasonably possible loss or range of loss, if any, that may result from these matters.

As of September 30, 2024, the Company was not aware of any currently pending legal matters or claims, individually or in the aggregate, that were expected to have a material adverse impact on its condensed consolidated financial statements.

On April 25, 2025, the Court dismissed the Central Laborers’ Pension Fund matter in its entirety under Rule 23.1.

As of March 31, 2025, the Company was not aware of any currently pending legal matters or claims, individually or in the aggregate, that were expected to have a material adverse impact on its condensed consolidated financial statements.

Warranties and Indemnification

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The Company’s services are generally warranted to be performed in a professional manner and by an adequate staff with knowledge about the products.

In the event there is a failure of such warranties, the Company generally is obligated to correct the product or service to conform to the warranty provision or, if the Company is unable to do so, the customer is entitled to seek a refund of the purchase price of the product and service (generally prorated over the contract term).

In the event there is a failure of such warranties, the Company generally is obligated to correct the product or service to conform to the warranty provision, or, if the Company is unable to do so, the customer is entitled to seek a refund of the

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

purchase price of the product and service (generally prorated over the contract term).

Due to the absence of historical warranty claims, the Company’s expectations of future claims related to products under warranty continue to be insignificant.

The Company has not recorded warranty expense or related accruals as of September 30, 2024 and December 31, 2023.

The Company has not recorded warranty expense or related accruals as of March 31, 2025 and December 31, 2024.

The Company generally agrees to indemnify its customers against legal claims that the Company’s software products infringe certain third-party intellectual property rights and accounts for its indemnification obligations.

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In addition, in the event of an infringement, the Company generally agrees to secure the right for the customer to continue using the infringing product;

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

modify or replace the infringing product;

to modify or replace the infringing product;

or, if those options are not commercially practicable, to refund the cost of the software, as prorated over the period.

To date, the Company has not been required to make any payment resulting from infringement claims asserted against its customers and does not believe that the Company will be liable for such claims in the foreseeable future.

As such, the Company has not recorded a liability for infringement costs as of September 30, 2024 and December 31, 2023.

As such, the Company has not recorded a liability for infringement costs as of March 31, 2025 and December 31, 2024.

The Company has obligations under certain circumstances to indemnify each of the defendant directors and certain officers against judgments, fines, settlements, and expenses related to claims against such directors and certain officers and otherwise to the fullest extent permitted under the law and the Company’s Amended and Restated Bylaws and Amended and Restated Certificate of Incorporation.

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All shares of Class F common stock are held in a voting trust established by Stephen Cohen, Alexander Karp, and Peter Thiel (the “Founders”).

The Class F common stock generally gives the Founders the ability to control up to 49.999999 % of the total voting power of the Company’s capital stock, so long as the Founders and certain of their affiliates collectively meet a minimum ownership threshold, which was 100.0 million of the Company's equity securities as of September 30, 2024.

Holders of the common stock are entitled to dividends when, as, and if declared by the Company’s Board of Directors, subject to the rights of the holders of all classes of stock outstanding having priority rights to dividends.

No dividends have been declared as of September 30, 2024.

No dividends have been declared as of March 31, 2025.

The following represented the total authorized, issued, and outstanding shares for each class of common stock (in thousands):

As of September 30, 2024 As of December 31, 2023

As of March 31, 2025 As of December 31, 2024

Authorized Issued and Outstanding Authorized Issued and Outstanding

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The Company may repurchase shares of its Class A common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act in accordance with applicable securities laws and other restrictions.

The timing and the amount of stock repurchases under the Share Repurchase Program will be determined by the Company’s management, based on its evaluation of factors including business and market conditions, corporate and regulatory requirements, and other considerations.

The timing and the amount of stock repurchases under the Share Repurchase Program have been, and in the future will be, determined by the Company’s management, based on its evaluation of factors including business and market conditions, corporate and regulatory requirements, and other considerations.

The Share Repurchase Program does not obligate the Company to repurchase any specific number of shares and may be discontinued at any time.

During the three and nine months ended September 30, 2024, the Company repurchased and subsequently retired 0.6 million and 1.8 million shares, respectively, of its Class A common stock for an aggregate amount, including commissions, of $ 18.9 million and $ 45.6 million, respectively under the Share Repurchase Program.

As of September 30, 2024, approximately $ 954.4 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

During the three months ended March 31, 2025, the Company repurchased and subsequently retired 0.2 million shares of its Class A common stock for an aggregate amount, including commissions, of $ 18.0 million under the Share Repurchase Program.

As of March 31, 2025, approximately $ 917.8 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.

Stock-Based Compensation

Stock Options and SARs

The following table summarizes stock option and SAR activity for the nine months ended September 30, 2024 (in thousands, except per share amounts and years):

The following table summarizes stock option and stock appreciation right (“SAR”) activity for the three months ended March 31, 2025 (in thousands, except per share amounts and years):

Options Outstanding SARs Outstanding

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Balance as of December 31, 2024 178,109 $ 9.26 6.9 $ 11,821,740 6,437 $ 55.75 6.7 $ 127,976

Granted — — 51,458 50.71

Exercised ( 13,574 ) 4.91 — —

Canceled and forfeited ( 30 ) 6.03 ( 84 ) 50.55

Balance as of September 30, 2024 233,357 $ 9.10 7.1 $ 6,556,252 47,963 $ 50.76 35.0 $ —

Vested and exercisable as of September 30, 2024 130,807 $ 7.32 6.5 $ 3,908,239 — $ — 0.0 $ —

As of September 30, 2024, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $ 524.3 million and $ 176.5 million, respectively, which is expected to be recognized over a weighted-average service period of six and five years , respectively.

Of the total SARs outstanding, $ 119.7 million of unrecognized expense would be accelerated if the market condition related to Market-Vesting SARs is achieved earlier than its derived service period.

The weighted-average grant-date fair value of SARs granted during the nine months ended September 30, 2024 was $ 4.06 per share.

Market-Vesting SARs

During the nine months ended September 30, 2024, the Company granted Market-Vesting SARs that vest upon the satisfaction of a market-based vesting condition and are subject to continued service.

The market-based vesting condition is satisfied when the price per share of the Company’s Class A common stock exceeds $ 50 within an open trading window (measured based on the closing price on the immediately prior trading day) (an “Above Price Day”).

Following the satisfaction of such condition, Market-Vesting SARs may only be exercised on an Above Price Day.

The maximum appreciation is up to $ 20 per Market-Vesting SAR.

The Company determined the grant-date fair value of Market-Vesting SARs using a Monte Carlo simulation model which incorporates various assumptions including the contractual term, expected stock price volatility, risk-free interest rate, suboptimal exercise factor, annual post-vest termination rate, and cost of capital as of the grant date.

For the Market-Vesting SARs granted during the nine months ended September 30, 2024, the assumptions used in the Monte Carlo simulation model included the following:

Nine Months Ended

September 30, 2024

Expected volatility rate 58.2 % - 58.9 %

Risk-free interest rate 4.1 % - 4.7 %

Grant-date fair value per share $ 3.30 - $ 6.15

The expected volatility rate is based on a combination of the Company’s implied volatility and the historical volatility of comparable publicly-traded companies.

The risk-free interest rate is based on the U.S.

Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of the SAR.

The Market-Vesting SARs granted during the nine months ended September 30, 2024 had derived service periods of up to five years .

Balance as of March 31, 2025 164,505 $ 9.62 6.8 $ 12,302,358 6,448 $ 56.02 6.5 $ 182,962

Vested and exercisable as of March 31, 2025 71,129 $ 7.30 6.0 $ 5,484,036 — $ — 0.0 $ —

As of March 31, 2025, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $ 477.1 million and $ 53.2 million, respectively, which is expected to be recognized over a weighted-average service period of six and seven years , respectively.

The weighted-average grant date fair value of SARs granted during the three months ended March 31, 2025 was $ 15.92 per share.

Time-Vesting SARs

During the nine months ended September 30, 2024, the Company granted Time-Vesting SARs which vest over explicit service periods of up to nine years .

Additionally, such Time-Vesting SARs become exercisable at expiration, during a limited window

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(“Exercise Window”), if the Company’s stock price reaches a certain threshold.

The Company grants SARs that vest over explicit service periods of up to nine years and are exercisable at expiration, during a limited window, if the Company’s stock price reaches a certain threshold (“Time-Vesting SARs”).

Time-Vesting SARs have exercise prices of between $ 39 –$ 70 and maximum appreciation values of between $ 60 –$ 180 .

The Company determined the grant-date fair value of Time-Vesting SARs using a Black-Scholes option-pricing model, calculated as the difference in fair value between a SAR with a strike price at the exercise price and a SAR with the strike price at its maximum appreciation, using the following assumptions:

Nine Months Ended

September 30, 2024

The Company determined the grant-date fair value of Time-Vesting SARs granted during the three months ended March 31, 2025 using a Black-Scholes option-pricing model, calculated as the difference in fair value between a SAR with a strike price at the exercise price and a SAR with the strike price at its maximum appreciation, using the following assumptions:

Three Months Ended

March 31, 2025

Expected volatility rate 61.0 % - 66.1 %

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The Company has never paid and has no plans to pay dividends on its common stock, therefore the expected dividend yield is zero.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

RSUs and P-RSUs

The following table summarizes the RSU and P-RSU activity for the nine months ended September 30, 2024 (in thousands, except per share amounts):

The following table summarizes the RSU and P-RSU activity for the three months ended March 31, 2025 (in thousands, except per share amounts):

RSUs Outstanding Weighted Average Grant Date Fair Value per Share P-RSUs Outstanding Weighted Average Grant Date Fair Value per Share

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Adjustment for performance achievement (1)

— — ( 1,370 ) 17.46

Unvested and outstanding as of September 30, 2024 72,201 $ 14.36 862 $ 28.81

Unvested and outstanding as of March 31, 2025 58,126 $ 15.61 319 $ 68.14

(1) This amount represents the difference between the maximum number of shares that could have been issued under the grant and the actual number of shares earned based on final performance.

As of September 30, 2024, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $ 789.2 million, which the Company expects to recognize over a weighted-average service period of three years .

As of September 30, 2024, there was no unrecognized stock-based compensation expense related to the P-RSUs outstanding.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

As of March 31, 2025, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $ 663.7 million, which the Company expects to recognize over a weighted-average service period of three years .

As of March 31, 2025, there was no unrecognized stock-based compensation expense related to the P-RSUs outstanding.

Stock-based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Cost of revenue $ 15,016 $ 10,416

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Total stock-based compensation expense $ 155,339 $ 125,651

The Company recorded a provision for income taxes of $ 7.8 million and $ 6.5 million for the three months ended September 30, 2024 and 2023, respectively, and of $ 17.7 million and $ 10.4 million for the nine months ended September 30, 2024 and 2023, respectively.

The Company recorded a provision for income taxes of $ 5.6 million and $ 4.7 million for the three months ended March 31, 2025 and 2024, respectively.

The Company is subject to income tax in the U.S.

as well as other tax jurisdictions in which it conducts business.

The Company’s effective tax rate as of September 30, 2024 differs from the U.S.

The Company’s effective tax rate as of March 31, 2025 differs from the U.S.

statutory rate primarily due to foreign income taxed at different rates, non-deductible stock-based compensation, other non-deductible expenses, and valuation allowances recorded on its deferred tax assets from the U.S., United Kingdom (“U.K.”), and other jurisdictions .

The provision for income taxes increased by $ 1.3 million and $ 7.3 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 primarily related to increased foreign tax expense as a result of higher foreign taxable income and withholding taxes.

The provision for income taxes increased by an immaterial amount for the three months ended March 31, 2025 compared to the same period in 2024.

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods.

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net operating tax losses, the Company has maintained a full valuation allowance on its U.S.

deferred tax assets as of September 30, 2024.

deferred tax assets as of March 31, 2025.

However, given the Company’s recent earnings and anticipated future earnings, there is a reasonable possibility that it will have sufficient positive evidence in the future to release all or a portion of the valuation allowance it recorded against its deferred tax assets.

On August 16, 2022, the Inflation Reduction Act was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax on global adjusted financial statement income and a 1% excise tax on the value of net share repurchases.

The Inflation Reduction Act became effective beginning in fiscal year 2023.

Based on the Company’s current analysis of the provisions, the law has not had a material impact on the Company’s condensed consolidated financial statements.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Organization for Economic Co-operation and Development (“OECD”) global minimum tax provision (“Pillar 2”) rules are at varying stages of adoption across jurisdictions where the Company operates.

While the United States has not yet adopted Pillar 2, several countries have enacted Pillar 2 and these rules were applicable to the Company starting January 1, 2024.

The adoption of Pillar 2 rules may affect the Company’s effective tax rates and current tax obligations and liabilities.

Based on the Company’s current analysis of Pillar Two provisions, these tax law changes did not have a material impact on the Company’s consolidated financial statements.

Net Earnings Per Share Attributable to Common Stockholders

The following table presents the calculation of basic and diluted net earnings per share attributable to common stockholders (in thousands, except per share amounts):

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Net income attributable to common stockholders for diluted net earnings per share $ 214,031 $ 105,530

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Diluted $ 0.08 $ 0.04

Diluted net earnings per share is calculated using our weighted-average shares of outstanding common stock including the dilutive effect of stock awards as determined under the treasury stock method.

The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net earnings per share attributable to common stockholders for the periods presented due to their anti-dilutive effect (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Options issued and outstanding — — — 162,000

Three Months Ended March 31,

RSUs and P-RSUs outstanding 347 3,500

Warrants to purchase common stock — 13,042 — 13,042

Total 347 3,500

For the three and nine months ended September 30, 2024, the Company also excluded the impact of 48.0 million SARs that may settle in shares of Class A common stock from the computation of diluted net earnings per share because the exercise price of such SARs was greater than the average market price of the Class A common stock for the applicable period.

The maximum number of potentially dilutive Class A common shares is the fraction that equals the maximum appreciation divided by the Company’s Class A common stock price at that time.

As of March 31, 2025, the Company had 6.4 million Time-Vesting SARs outstanding, of which the maximum number of potentially dilutive shares of Class A common stock upon vesting would be the fraction that equals the maximum appreciation divided by the Company’s Class A common stock price at that time.

Segment and Geographic Information

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Notes to Unaudited Condensed Consolidated Financial Statements

Financial information for each reportable segment was as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Government $ 408,341 $ 307,603 $ 1,114,481 $ 898,178

Commercial 317,175 250,556 923,507 718,484

Total revenue $ 725,516 $ 558,159 $ 2,037,988 $ 1,616,662

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Financial information for each reportable segment was as follows (in thousands, except percentages):

Three Months Ended March 31,

Amount % Amount %

Contribution:

Government $ 243,227 $ 185,867 $ 674,009 $ 526,330

Commercial 189,997 135,101 550,171 362,188

Government revenue $ 486,963 $ 335,373

Expenses attributable to government segment ( 186,003 ) ( 135,985 )

Government contribution 300,960 62 % 199,388 59 %

Commercial revenue 396,892 298,965

Expenses attributable to commercial segment ( 155,747 ) ( 120,876 )

Commercial contribution 241,145 61 % 178,089 60 %

Total contribution $ 542,105 61 % $ 377,477 60 %

The reconciliation of contribution to income from operations is as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Income from operations $ 176,048 $ 80,881

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Revenue is as follows (in thousands, except percentages):

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Amount % Amount % Amount % Amount %

Three Months Ended March 31,

Amount % Amount %

United States $ 628,494 71 % $ 406,389 64 %

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Total revenue $ 883,855 100 % $ 634,338 100 %

(1) No other country represents 10 % or more of total revenue for the three and nine months ended September 30, 2024 or 2023.

(1) No other country represented 10 % or more of total revenue for the three months ended March 31, 2025 or 2024.

Palantir Technologies Inc.

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Intangible assets subject to amortization that are not fully amortized are as follows (in thousands, except years):

Weighted average useful life As of September 30, 2024 As of December 31, 2023

Weighted average useful life (years)

As of March 31, 2025 As of December 31, 2024

Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

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Reacquired rights 4.6 17,618 ( 6,082 ) 11,536 17,618 ( 5,453 ) 12,165

Backlog 0.1 6,700 ( 6,421 ) 279 6,700 ( 3,908 ) 2,792

Other 0.0 4,225 ( 4,225 ) — 4,225 ( 3,770 ) 455

Total intangible assets $ 28,018 $ ( 11,109 ) $ 16,909 $ 28,018 $ ( 9,960 ) $ 18,058

Amortization expense of intangible assets was not material for the three and nine months ended September 30, 2024 or 2023.

As of September 30, 2024, expected amortization expense for the unamortized finite-lived intangible assets is as follows (in thousands):

Year ended December 31, Amount

Amortization expense of intangible assets was not material for the three months ended March 31, 2025 or 2024.

As of March 31, 2025, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in thousands):

Year ended December 31,

Remainder of 2025 $ 3,448

Thereafter 2,097

Total $ 16,909

Related Party Transactions

Alexander Karp, the Company’s Chief Executive Officer, flies on a non-commercial aircraft beneficially owned by him (the “Executive Aircraft”) for business and personal travel.

During the three months ended March 31, 2025, the Company incurred expenses related to the use of the Executive Aircraft of $ 5.0 million.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

• our expectations regarding financial performance and liquidity, including but not limited to our expectations regarding revenue, cost of revenue, operating expenses, stock-based compensation, our ability to achieve and maintain future profitability, and cash flows;

• our ability to successfully execute our business and growth strategy;

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• our ability to develop and protect our brand;

• our ability to maintain the security and availability of our platforms;

• our ability to maintain the security and availability of our platforms, including preventing and mitigating any product bugs or defects, as well as any cybersecurity or similar incidents;

• our expectations and management of future growth;

• our expectations concerning relationships with third parties, including our customers, equity method investment partners, and vendors;

• our expectations regarding our investments in, and enterprise agreements with, various entities, including special purpose acquisition companies and/or other privately-held or publicly-traded entities;

• our expectations regarding our investments in, and enterprise agreements with, various publicly-traded and privately-held entities, including special purpose acquisition companies;

• our ability to maintain, protect, and enhance our intellectual property;

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• our expectations regarding our multi-class stock and governance structure and the benefits thereof;

• our expectations regarding macroeconomic conditions, including global political and economic uncertainty, heightened interest rates, or monetary policy changes;

• our expectations regarding macroeconomic conditions, including global political and economic uncertainty, heightened interest rates, monetary policy changes, or the imposition of tariffs or other impacts on trade relations;

• the impacts of catastrophic events, including natural disasters, global pandemics, geopolitical tensions, terrorism, or other events beyond our control, on our and our customers’, vendors’, and partners’ respective businesses and the markets in which we and our customers, vendors, and partners operate;

• the impacts of the volatility and fluctuations in currency exchange rates, including an increase in the strength of the United States (“U.S.”) dollar, on the costs of our products outside of the United States and on customer demand;

• the increased expenses associated with being a public company.

• the significant expenses associated with being a public company.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements