What changed in this filing

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Item 1. Financial Statements

2025-11-04 compared with 2025-08-05 · 154 added, 131 removed, 494 unchanged (37% of the section changed)

3 unchanged sentences

(in thousands, except per share amounts)

As of June 30,

As of September 30,

2025 As of December 31,

25 unchanged sentences

Common stock, $ 0.001 par value:

20,000,000 Class A shares authorized as of June 30, 2025 and December 31, 2024;

2,273,764 and 2,242,389 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively;

2,700,000 Class B shares authorized as of June 30, 2025 and December 31, 2024;

97,078 and 95,401 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively;

and 1,005 Class F shares authorized, issued, and outstanding as of June 30, 2025 and December 31, 2024

20,000,000 Class A shares authorized as of September 30, 2025 and December 31, 2024;

2,284,210 and 2,242,389 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively;

2,700,000 Class B shares authorized as of September 30, 2025 and December 31, 2024;

98,099 and 95,401 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively;

and 1,005 Class F shares authorized, issued, and outstanding as of September 30, 2025 and December 31, 2024

Additional paid-in capital 10,747,603 10,193,970

9 unchanged sentences

(in thousands, except per share amounts)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

23 unchanged sentences

(in thousands)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

2 unchanged sentences

Foreign currency translation adjustments ( 1,870 ) 5,887 10,795 4,719

Net unrealized loss on available-for-sale securities ( 1,097 ) ( 53 ) ( 2,333 ) ( 4,675 )

Net unrealized gain (loss) on available-for-sale securities 8,686 4,094 6,353 ( 581 )

Comprehensive income 483,564 159,322 1,040,185 395,120

5 unchanged sentences

(in thousands)

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

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

Shares Amount

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

Balance as of June 30, 2025 2,371,847 $ 2,372 $ 10,568,473 $ 4,721 $ ( 4,646,665 ) $ 5,928,901 $ 96,663 $ 6,025,564

Issuance of common stock from the exercise of stock options 4,890 4 25,634 — — 25,638 — 25,638

4 unchanged sentences

Net income — — — — 475,599 475,599 1,149 476,748

Balance as of June 30, 2025 2,371,847 $ 2,372 $ 10,568,473 $ 4,721 $ ( 4,646,665 ) $ 5,928,901 $ 96,663 $ 6,025,564

Balance as of September 30, 2025 2,383,314 $ 2,383 $ 10,747,603 $ 11,537 $ ( 4,171,066 ) $ 6,590,457 $ 97,812 $ 6,688,269

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

7 unchanged sentences

Net income — — — — 1,016,357 1,016,357 6,680 1,023,037

Balance as of June 30, 2025 2,371,847 $ 2,372 $ 10,568,473 $ 4,721 $ ( 4,646,665 ) $ 5,928,901 $ 96,663 $ 6,025,564

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

Balance as of September 30, 2025 2,383,314 $ 2,383 $ 10,747,603 $ 11,537 $ ( 4,171,066 ) $ 6,590,457 $ 97,812 $ 6,688,269

Palantir Technologies Inc.

Condensed Consolidated Statements of Equity

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

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

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

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

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

Issuance of common stock from the exercise of stock options 23,312 24 170,313 — — 170,337 — 170,337

Issuance of common stock upon release of restricted stock units (“RSUs”) and performance-based RSUs (“P-RSUs”) 8,369 8 ( 8 ) — — — — —

Issuance of common stock upon release of RSUs and P-RSUs 9,183 9 ( 9 ) — — — — —

Repurchases of common stock ( 625 ) ( 1 ) ( 18,898 ) — — ( 18,899 ) — ( 18,899 )

Stock-based compensation — — 142,796 — — 142,796 — 142,796

Other comprehensive income (loss) — — — 785 — 785 ( 107 ) 678

Other comprehensive income — — — 9,860 — 9,860 121 9,981

Net income — — — — 143,525 143,525 5,816 149,341

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

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

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, Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

4 unchanged sentences

Stock-based compensation — — 410,668 — — 410,668 — 410,668

Other comprehensive loss — — — ( 5,736 ) — ( 5,736 ) ( 107 ) ( 5,843 )

Other comprehensive income — — — 4,124 — 4,124 14 4,138

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

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

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

2 unchanged sentences

(in thousands)

Six Months Ended June 30,

Nine Months Ended

September 30,

Operating activities

18 unchanged sentences

Purchases of privately-held securities ( 72,924 ) ( 4,000 )

Other investing activities ( 1,000 ) —

Net cash used in investing activities ( 1,825,720 ) ( 980,849 )

36 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 six months ended June 30, 2025, except for the changes noted below.

There have been no significant changes to these policies during the nine months ended September 30, 2025, except for the changes noted below.

Cash, Cash Equivalents, and Restricted Cash

6 unchanged sentences

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 June 30,

As of September 30,

Cash and cash equivalents $ 1,615,967 $ 768,710

10 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 June 30, 2025 and December 31, 2024 were $ 747.5 million and $ 575.0 million, respectively.

Customer I represented 22 % and 26 % of total accounts receivable as of June 30, 2025 and December 31, 2024, respectively, and no other customer represented more than 10% of total accounts receivable as of June 30, 2025 or December 31, 2024.

For the three and six months ended June 30, 2025 and 2024, no customer represented more than 10% of total revenue.

The Company’s accounts receivable balances as of September 30, 2025 and December 31, 2024 were $ 1.0 billion and $ 0.6 billion, respectively.

Customer I represented 16 % and 26 % of total accounts receivable as of September 30, 2025 and December 31, 2024, respectively, and Customer J represented 11 % of total accounts receivable as of September 30, 2025.

No other customer represented more than 10% of total accounts receivable as of September 30, 2025 or December 31, 2024.

For the three and nine months ended September 30, 2025 and 2024, no customer represented more than 10% of total revenue.

Recent Accounting Pronouncements Not Yet Adopted

1 unchanged sentence

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.

The Company plans to adopt the standard in its consolidated financial statement for the year ending December 31, 2025, and expects the adoption to result in expanded income tax disclosures, but does not expect it to have a material impact on its financial position or 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.

1 unchanged sentence

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

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software , which simplifies the capitalization guidance related to internal-use software by removing all references to software development project stages so the guidance is neutral to different software development methods.

This ASU is effective for fiscal years beginning after December 15, 2027, including interim periods within those annual reporting periods, with early adoption permitted and can be applied using a prospective, retrospective, or modified transition approach.

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

In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging and Revenue from Contracts with Customers , which refines the scope of the guidance on derivatives in Accounting Standards Codification (“ASC”) 815 and clarifies the guidance on share-based payments from a customer in ASC 606.

This ASU is effective for fiscal years beginning after December 15, 2026, including interim periods within those annual reporting periods, with early adoption permitted.

The guidance can be applied prospectively to new contracts entered into on or after the date of adoption or on a modified

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

retrospective basis for contracts existing as of the beginning of the annual reporting period of adoption.

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 June 30, 2025 and December 31, 2024, the Company's contract liabilities were $ 685.9 million and $ 566.4 million, respectively.

Revenue of $ 403.6 million and $ 362.4 million was recognized during the six months ended June 30, 2025 and 2024, respectively, that was included in contract liabilities as of December 31, 2024 and 2023, respectively.

As of September 30, 2025 and December 31, 2024, the Company's contract liabilities were $ 730.4 million and $ 566.4 million, respectively.

Revenue of $ 506.9 million and $ 440.9 million was recognized during the nine months ended September 30, 2025 and 2024, respectively, that was included in contract liabilities as of December 31, 2024 and 2023, respectively.

Remaining Performance Obligations

2 unchanged sentences

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.

The Company has elected the practical expedient allowing the Company to not disclose remaining performance obligations for contracts with

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

original terms of twelve months or less.

The Company has elected the practical expedient allowing the Company to not disclose remaining performance obligations for contracts with original terms of twelve months or less.

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

The Company’s remaining performance obligations were $ 2.4 billion as of June 30, 2025, of which the Company expects to recognize approximately 42 % 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 $ 2.6 billion as of September 30, 2025, of which the Company expects to recognize approximately 44 % as revenue over the next 12 months, 41 % as revenue over the subsequent 13 to 36 months, and the remainder thereafter.

Disaggregation of Revenue

2 unchanged sentences

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 June 30, 2025

As of September 30, 2025

Total Level 1 Level 2 Level 3

7 unchanged sentences

Total $ 5,798,389 $ 1,013,786 $ 4,784,603 $ —

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

As of December 31, 2024

12 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 June 30, 2025 and 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 June 30, 2025

As of September 30, 2025 and 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 September 30, 2025

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

5 unchanged sentences

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

The Company did not sell any available-for-sale debt securities during the three months ended June 30, 2025 or the three and six months ended June 30, 2024.

The Company sold $ 279.7 million of available-for-sale debt securities during the six months ended June 30, 2025.

The Company did not sell any available-for-sale debt securities during the three months ended September 30, 2025 or during the three and nine months ended September 30, 2024.

The Company sold $ 279.7 million of available-for-sale debt securities during the nine months ended September 30, 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 six months ended June 30, 2025 and 2024.

As of June 30, 2025 and December 31, 2024, available-for-sale debt securities of $ 4.9 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 June 30, 2025 or December 31, 2024 were in a continuous unrealized loss position for greater than 12 months.

No credit or non-credit losses related to debt securities were recorded during the three and nine months ended September 30, 2025 and 2024.

As of September 30, 2025 and December 31, 2024, available-for-sale debt securities of $ 1.3 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 September 30, 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 June 30, 2025 or December 31, 2024.

No credit-related impairment losses were recorded as of September 30, 2025 or December 31, 2024.

All of the Company’s U.S.

Treasury securities had contractual maturities due within one year as of June 30, 2025 and December 31, 2024.

Treasury securities had contractual maturities due within one year as of September 30, 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 and six months ended June 30, 2025, net unrealized gains from publicly-traded equity securities held at the end of the period were $ 12.6 million and $ 1.9 million, respectively.

For the three and six months ended June 30, 2024, net unrealized losses from publicly-traded equity securities held at the end of the period were $ 6.6 million and $ 12.2 million, respectively.

For the three months ended

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

September 30, 2025 and 2024, net unrealized losses from publicly-traded equity securities held at the end of each period were $ 6.0 million and $ 5.4 million, respectively.

For the nine months ended September 30, 2025 and 2024, net unrealized losses from publicly-traded equity securities held at the end of each period were $ 2.8 million and $ 12.2 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 June 30, 2025 and December 31, 2024, the total amount of privately-held equity securities included in other assets on the consolidated balance sheets was $ 122.9 million and $ 64.9 million, respectively.

As of September 30, 2025 and December 31, 2024, the total amount of privately-held equity securities included in other assets on the consolidated balance sheets was $ 163.2 million and $ 64.9 million, respectively.

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

There were no material upward or downward adjustments or impairments for the privately-held equity securities during the three and six months ended June 30, 2025 or 2024.

Cumulative downward adjustments and impairments and cumulative upward adjustments were not material on privately-held equity securities held by the Company as of June 30, 2025.

There were upward adjustments on privately-held equity securities of $ 30.7 million during the three and nine months ended September 30, 2025, and no upward adjustments on privately-held equity securities during the three and nine months ended September 30, 2024.

There were no downward adjustments or impairments on the privately-held equity securities during the three and nine months ended September 30, 2025 and 2024.

Cumulative upward adjustments were $ 30.7 million and cumulative downward adjustments and impairments were not material on privately-held equity securities held by the Company as of September 30, 2025.

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

Total equity securities received as noncash consideration was $ 16.8 million and $ 30.3 million during the six months ended June 30, 2025 and 2024, respectively.

Total equity securities received as noncash consideration was $ 26.2 million and $ 41.5 million during the nine months ended September 30, 2025 and 2024, respectively.

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 six months ended June 30, 2025 or the fiscal year ended December 31, 2024.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

No Investments were purchased under such Investment Agreements during the nine months ended September 30, 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 June 30, 2025 and 2024, revenue recognized from Strategic Commercial Contracts was $ 5.1 million and $ 9.2 million, respectively.

During the six months ended June 30, 2025 and 2024, revenue recognized from Strategic Commercial Contracts was $ 10.2 million and $ 33.1 million, respectively.

During the three months ended September 30, 2025 and 2024, revenue recognized from Strategic Commercial Contracts was $ 2.9 million and $ 9.6 million, respectively.

During the nine months ended September 30, 2025 and 2024, revenue recognized from Strategic Commercial Contracts was $ 13.2 million and $ 42.7 million, respectively.

Balance Sheet Components

1 unchanged sentence

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

As of June 30,

2025 As of December 31,

As of September 30, 2025 As of December 31, 2024

Leasehold improvements $ 97,182 $ 85,284

5 unchanged sentences

Total property and equipment, net $ 45,706 $ 39,638

Depreciation and amortization expense related to property and equipment, net was $ 5.4 million and $ 6.0 million for the three months ended June 30, 2025 and 2024, respectively, and $ 10.9 million and $ 12.1 million for the six months ended June 30, 2025 and 2024, respectively.

Depreciation and amortization expense related to property and equipment, net was $ 4.8 million and $ 6.1 million for the three months ended September 30, 2025 and 2024, respectively, and $ 15.7 million and $ 18.2 million for the nine months ended September 30, 2025 and 2024, respectively.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

As of June 30,

2025 As of December 31,

As of September 30, 2025 As of December 31, 2024

Accrued payroll and related expenses $ 174,527 $ 306,939

Accrued taxes 63,765 42,243

Accrued other liabilities 207,210 120,107

1 unchanged sentence

2014 Credit Facility

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 June 30, 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 Company has a secured revolving credit facility, which provides for aggregate revolving commitments of $ 500.0 million, and has a maturity date of March 31, 2027 (as amended, the “2014 Credit Facility”).

As of September 30, 2025, the Company had no outstanding debt balances under the 2014 Credit Facility.

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 June 30, 2025.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company was in compliance with all covenants associated with the 2014 Credit Facility as of September 30, 2025.

Commitments and Contingencies

2 unchanged sentences

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, among other things.

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

Additionally, as of June 30, 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.

The Company satisfied its $ 160.2 million commitment for the contract year ending September 30, 2025.

The commitment amount for the contract year beginning October 1, 2025 and ending September 30, 2026 is $ 170.2 million.

Additionally, as of September 30, 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

25 unchanged sentences

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

22-cv-3028 and on January 27, 2023, a stockholder derivative action was filed in the United States District Court for the District of Delaware, captioned Miao v.

22-cv-3028 and on January 27, 2023, a stockholder derivative action was filed

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

in the United States District Court for the District of Delaware, captioned Miao v.

1:23-cv-00103-MN, each 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 seek unspecified damages and injunctive remedies under Section 14(a) of the Exchange Act and Delaware law.

2 unchanged sentences

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

As of June 30, 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.

As of September 30, 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

3 unchanged sentences

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).

Due to the absence of historical warranty

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

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 June 30, 2025 and December 31, 2024.

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, 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.

4 unchanged sentences

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 June 30, 2025 and December 31, 2024.

As such, the Company has not recorded a liability for infringement costs as of September 30, 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.

4 unchanged sentences

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 June 30, 2025.

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 June 30, 2025.

No dividends have been declared as of September 30, 2025.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

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

As of June 30, 2025 As of December 31, 2024

As of September 30, 2025 As of December 31, 2024

Authorized Issued and Outstanding Authorized Issued and Outstanding

8 unchanged sentences

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 six months ended June 30, 2025, the Company repurchased and subsequently retired 0.2 million and 0.4 million shares, respectively, of its Class A common stock for an aggregate amount, including commissions, of $ 18.6 million

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

and $ 36.6 million, respectively under the Share Repurchase Program.

As of June 30, 2025, approximately $ 899.2 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.

During the three and nine months ended September 30, 2025, the Company repurchased and subsequently retired 0.1 million and 0.5 million shares, respectively, of its Class A common stock for an aggregate amount, including commissions, of $ 19.2 million and $ 55.8 million, respectively under the Share Repurchase Program.

As of September 30, 2025, approximately $ 880.0 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 stock appreciation right (“SAR”) activity for the six months ended June 30, 2025 (in thousands, except per share amounts and years):

The following table summarizes stock option and stock appreciation right (“SAR”) activity for the nine months ended September 30, 2025 (in thousands, except per share amounts and years):

Options Outstanding SARs Outstanding

9 unchanged sentences

Canceled and forfeited ( 168 ) 6.45 ( 237 ) 53.81

Balance as of June 30, 2025 158,910 $ 9.77 6.6 $ 20,109,743 7,228 $ 65.31 6.5 $ 522,117

Vested and exercisable as of June 30, 2025 70,110 $ 7.73 5.9 $ 9,015,071 — $ — 0.0 $ —

As of June 30, 2025, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $ 453.6 million, and $ 60.6 million, respectively, which is expected to be recognized over a weighted-average service period of six years .

The weighted-average grant date fair value of SARs granted during the six months ended June 30, 2025 was $ 18.56 per share.

Balance as of September 30, 2025 153,949 $ 9.92 6.4 $ 26,556,634 11,261 $ 129.10 7.3 $ 831,612

Vested and exercisable as of September 30, 2025 69,724 $ 8.15 5.7 $ 12,150,790 — $ — 0.0 $ —

As of September 30, 2025, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $ 429.8 million and $ 151.3 million, respectively, which is expected to be recognized over a weighted-average service period of five and eight years , respectively.

The weighted-average grant-date fair value of SARs granted during the nine months ended September 30, 2025 was $ 22.43 per share.

Time-Vesting SARs

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Time-Vesting SARs have exercise prices of between $ 39 –$ 250 and maximum appreciation values of between $ 60 –$ 300 .

The Company determined the grant date fair value of Time-Vesting SARs granted during the six months ended June 30, 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:

Six Months Ended

June 30, 2025

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company determined the grant-date fair value of Time-Vesting SARs granted during the nine months ended September 30, 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:

Nine Months Ended

September 30, 2025

Expected volatility rate 56.9 % - 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 six months ended June 30, 2025 (in thousands, except per share amounts):

The following table summarizes the RSU and P-RSU activity for the nine months ended September 30, 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)

Unvested and outstanding as of June 30, 2025 53,162 $ 19.42 225 $ 93.99

Unvested and outstanding as of September 30, 2025 47,589 $ 24.76 133 $ 154.86

(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 June 30, 2025, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $ 800.2 million, which the Company expects to recognize over a weighted-average service period of three years .

As of June 30, 2025, there was no unrecognized stock-based compensation expense related to the P-RSUs outstanding.

As of September 30, 2025, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $ 947.1 million, which the Company expects to recognize over a weighted-average service period of three years .

As of September 30, 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 June 30, Six Months Ended June 30,

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Total stock-based compensation expense $ 172,318 $ 142,425 $ 487,628 $ 409,840

The Company recorded a provision for income taxes of $ 3.6 million and $ 5.2 million for the three months ended June 30, 2025 and 2024, respectively, and of $ 9.2 million and $ 9.8 million for the six months ended June 30, 2025 and 2024, respectively.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The Company recorded a provision for income taxes of $ 3.8 million and $ 7.8 million for the three months ended September 30, 2025 and 2024, respectively, and of $ 12.9 million and $ 17.7 million for the nine months ended September 30, 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 June 30, 2025 differs from the U.S.

The Company’s effective tax rate as of September 30, 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 decreased by an immaterial amount for each of the three and six months ended June 30, 2025 compared to the same periods in 2024.

The provision for income taxes decreased by $ 4.1 million and $ 4.7 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024.

The decreases were primarily related to non-recurring foreign tax expense in the prior year related to foreign tax audits, as well as decreased foreign withholding taxes.

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 June 30, 2025.

deferred tax assets as of September 30, 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.

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.

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

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

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

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

On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses.

The Company is evaluating the full effects of the legislation on its estimated annual effective tax rate but does not expect that the legislation will have a material impact on the Company’s consolidated financial statements.

As the legislation was signed into law after the close of the second quarter ended June 30, 2025, any potential impacts are not included in the Company’s operating results included in this Quarterly Report on Form 10-Q.

The provisions have multiple effective dates, with certain provisions effective in the current fiscal year and others in subsequent years.

The Company is evaluating the full effects of the legislation and, based on preliminary analysis, does not expect that the legislation will have a material impact on the Company’s estimated annual effective tax rate or its consolidated financial statements in the current fiscal year.

Earnings Per Share Attributable to Common Stockholders

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

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Diluted $ 0.18 $ 0.06 $ 0.40 $ 0.16

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Diluted 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.

For the three and six months ended June 30, 2025 and 2024, outstanding potentially dilutive common stock equivalents of RSUs were 1.1 million and 0.8 million, respectively, and were excluded from the computation of diluted earnings per share attributable to common stockholders due to their anti-dilutive effect.

As of June 30, 2025, the Company had 7.2 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.

For the three and nine months ended September 30, 2025 and 2024, outstanding potentially dilutive common stock equivalents of RSUs were 1.3 million and 6.7 million, respectively, and were excluded from the computation of diluted earnings per share attributable to common stockholders due to their anti-dilutive effect.

As of September 30, 2025, the Company had 11.3 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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These unallocated and noncash costs include stock-based compensation expense, research and development expenses, and general and administrative expenses.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

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

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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(1) Excludes stock-based compensation expense.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Geographic Information

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

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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Total revenue $ 1,181,092 100 % $ 725,516 100 % $ 3,068,644 100 % $ 2,037,988 100 %

(1) No other country represented 10 % or more of total revenue for the three and six months ended June 30, 2025 or 2024.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(1) No other country represented 10 % or more of total revenue for the three and nine months ended September 30, 2025 or 2024.

Intangible Assets

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

Weighted average useful life As of June 30, 2025 As of December 31, 2024

Weighted average useful life As of September 30, 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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Total intangible assets $ 28,018 $ ( 13,407 ) $ 14,611 $ 28,018 $ ( 9,960 ) $ 18,058

Amortization expense of intangible assets was not material for the three and six months ended June 30, 2025 or 2024.

As of June 30, 2025, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in thousands):

Amortization expense of intangible assets was not material for the three and nine months ended September 30, 2025 or 2024.

As of September 30, 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, Amount

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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 six months ended June 30, 2025, the Company incurred expenses related to the use of the Executive Aircraft of $ 10.2 million.

During the nine months ended September 30, 2025, the Company incurred expenses related to the use of the Executive Aircraft of $ 13.8 million, and were not material during the nine months ended September 30, 2024.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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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