Palantir Technologies Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) Palantir Technologies Inc. Condensed Consolidated Balance Sheets (in thousands, except per share amounts) (unaudited) As of September 30, 2025 As of December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,615,967 $ 2,098,524 Marketable securities 4,821,850 3,131,463 Accounts receivable, net 1,005,910 575,048 Prepaid expenses and other current assets 142,429 129,254 Total current assets 7,586,156 5,934,289 Property and equipment, net 45,706 39,638 Operating lease right-of-use assets 204,315 200,740 Other assets 277,783 166,217 Total assets $ 8,113,960 $ 6,340,884 Liabilities and Equity Current liabilities: Accounts payable $ 67,503 $ 103 Accrued liabilities 381,737 427,046 Deferred revenue 316,722 259,624 Customer deposits 368,170 265,252 Operating lease liabilities 46,271 43,993 Total current liabilities 1,180,403 996,018 Deferred revenue, noncurrent 43,901 39,885 Customer deposits, noncurrent 1,570 1,663 Operating lease liabilities, noncurrent 189,165 195,226 Other noncurrent liabilities 10,652 13,685 Total liabilities 1,425,691 1,246,477 Commitments and Contingencies (Note 7) Palantir's stockholders’ equity: Common stock, $ 0.001 par value: 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 2,383 2,339 Additional paid-in capital 10,747,603 10,193,970 Accumulated other comprehensive income (loss), net 11,537 ( 5,611 ) Accumulated deficit ( 4,171,066 ) ( 5,187,423 ) Total Palantir's stockholders’ equity 6,590,457 5,003,275 Noncontrolling interests $ 97,812 $ 91,132 Total equity $ 6,688,269 $ 5,094,407 Total liabilities and equity $ 8,113,960 $ 6,340,884 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of contents Palantir Technologies Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $ 1,181,092 $ 725,516 $ 3,068,644 $ 2,037,988 Cost of revenue 207,307 146,639 573,211 391,457 Gross profit 973,785 578,877 2,495,433 1,646,531 Operating expenses: Sales and marketing 274,636 209,474 754,733 599,460 Research and development 144,191 117,555 414,123 336,376 General and administrative 161,702 138,708 487,956 411,335 Total operating expenses 580,529 465,737 1,656,812 1,347,171 Income from operations 393,256 113,140 838,621 299,360 Interest income 59,762 52,120 166,458 142,065 Other income (expense), net 27,483 ( 8,110 ) 30,906 ( 32,790 ) Income before provision for income taxes 480,501 157,150 1,035,985 408,635 Provision for income taxes 3,753 7,809 12,948 17,653 Net income 476,748 149,341 1,023,037 390,982 Less: Net income attributable to noncontrolling interests 1,149 5,816 6,680 7,801 Net income attributable to common stockholders $ 475,599 $ 143,525 $ 1,016,357 $ 383,181 Earnings per share attributable to common stockholders, basic $ 0.20 $ 0.06 $ 0.43 $ 0.17 Earnings per share attributable to common stockholders, diluted $ 0.18 $ 0.06 $ 0.40 $ 0.16 Weighted-average shares of common stock outstanding used in computing earnings per share attributable to common stockholders, basic 2,377,167 2,250,032 2,363,785 2,231,790 Weighted-average shares of common stock outstanding used in computing earnings per share attributable to common stockholders, diluted 2,571,057 2,459,589 2,562,367 2,424,864 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of contents Palantir Technologies Inc. Condensed Consolidated Statements of Comprehensive Income (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 476,748 $ 149,341 $ 1,023,037 $ 390,982 Other comprehensive income (loss), net of tax Foreign currency translation adjustments ( 1,870 ) 5,887 10,795 4,719 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 Less: Comprehensive income attributable to noncontrolling interests 1,149 5,937 6,680 7,815 Comprehensive income attributable to common stockholders $ 482,415 $ 153,385 $ 1,033,505 $ 387,305 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of contents Palantir Technologies Inc. Condensed Consolidated Statements of Equity (in thousands) (unaudited) 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 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 Issuance of common stock upon release of restricted stock units (“RSUs”) and performance-based RSUs (“P-RSUs”) 6,697 7 ( 7 ) — — — — — Repurchases of common stock ( 120 ) — ( 19,195 ) — — ( 19,195 ) — ( 19,195 ) Stock-based compensation — — 172,698 — — 172,698 — 172,698 Other comprehensive income — — — 6,816 — 6,816 — 6,816 Net income — — — — 475,599 475,599 1,149 476,748 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 Shares Amount 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 23,992 23 120,816 — — 120,839 — 120,839 Issuance of common stock upon release of RSUs and P-RSUs 21,022 21 ( 21 ) — — — — — Repurchases of common stock ( 495 ) — ( 55,789 ) — — ( 55,789 ) — ( 55,789 ) Stock-based compensation — — 488,627 — — 488,627 — 488,627 Other comprehensive income — — — 17,148 — 17,148 — 17,148 Net income — — — — 1,016,357 1,016,357 6,680 1,023,037 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 6 Table of contents Palantir Technologies Inc. Condensed Consolidated Statements of Stockholders’ Equity (in thousands) (unaudited) 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 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 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 — — — 9,860 — 9,860 121 9,981 Net income — — — — 143,525 143,525 5,816 149,341 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 Balance as of December 31, 2023 2,200,128 $ 2,200 $ 9,122,173 $ 801 $ ( 5,649,613 ) $ 3,475,561 $ 85,404 $ 3,560,965 Issuance of common stock from the exercise of stock options 44,188 45 270,162 — — 270,207 — 270,207 Issuance of common stock upon release of RSUs and P-RSUs 27,273 27 ( 27 ) — — — — — Repurchases of common stock ( 1,780 ) ( 2 ) ( 45,596 ) — — ( 45,598 ) — ( 45,598 ) Stock-based compensation — — 410,668 — — 410,668 — 410,668 Other comprehensive income — — — 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 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 Table of contents Palantir Technologies Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Nine Months Ended September 30, 2025 2024 Operating activities Net income $ 1,023,037 $ 390,982 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 19,127 24,581 Stock-based compensation 487,628 409,840 Unrealized and realized (gain) loss from marketable securities, net 5,005 26,021 Noncash consideration ( 32,053 ) ( 34,789 ) Other operating activities 15,833 51,156 Changes in operating assets and liabilities: Accounts receivable, net ( 422,977 ) ( 311,699 ) Prepaid expenses and other assets 50,343 ( 15,491 ) Accounts payable and accrued liabilities 90,582 49,859 Contract liabilities 160,154 132,340 Other liabilities ( 39,501 ) ( 29,262 ) Net cash provided by operating activities 1,357,178 693,538 Investing activities Purchases of property and equipment ( 20,610 ) ( 9,528 ) Purchases of marketable securities ( 6,091,513 ) ( 3,418,699 ) Proceeds from sales and redemption of marketable securities 4,360,327 2,451,378 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 ) Financing activities Proceeds from the exercise of common stock options 120,839 270,207 Repurchases of common stock ( 55,789 ) ( 45,598 ) Taxes paid related to net share settlement of equity awards ( 81,117 ) — Other financing activities 55 91 Net cash provided by (used in) financing activities ( 16,012 ) 224,700 Effect of foreign exchange on cash, cash equivalents, and restricted cash 9,444 960 Net decrease in cash, cash equivalents, and restricted cash ( 475,110 ) ( 61,651 ) Cash, cash equivalents, and restricted cash - beginning of period 2,119,936 850,107 Cash, cash equivalents, and restricted cash - end of period $ 1,644,826 $ 788,456 The accompanying notes are an integral part of these condensed consolidated financial statements. 8 Table of contents Palantir Technologies Inc. Notes to Unaudited Condensed Consolidated Financial Statements 1. Organization Palantir Technologies Inc. (including its subsidiaries, “Palantir” or the “Company”) was incorporated in Delaware on May 6, 2003. The Company builds and deploys software platforms that serve as the central operating systems for its customers. 2. Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The accompanying condensed consolidated financial statements include the accounts of Palantir Technologies Inc. and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Investments in entities where the Company holds at least a 20% ownership interest and has the ability to exercise significant influence over, but does not control, the investee are accounted for using the equity method of accounting. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, income from operations, net income, or cash flows. The Company's fiscal year ends on December 31. The unaudited condensed consolidated balance sheet as of December 31, 2024 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. In management’s opinion, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets and statements of operations, comprehensive income, stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes included 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. Use of Estimates 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, 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. Actual results could differ from those estimates and such differences could affect the Company’s financial position and results of operations. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2. 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, 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 U.S. Treasury securities with original maturities of three months or less. 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. 9 Table of contents 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, 2025 2024 Cash and cash equivalents $ 1,615,967 $ 768,710 Restricted cash included in prepaid expenses and other current assets 9,454 79 Restricted cash included in other assets 19,405 19,667 Total cash, cash equivalents, and restricted cash $ 1,644,826 $ 788,456 Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, accounts receivable, marketable securities, and privately-held equity securities. Cash equivalents primarily consist of money market funds and U.S. Treasury securities with original maturities of three months or less, which are invested primarily with U.S. financial institutions. Cash deposits with financial institutions, including restricted cash, generally exceed federally insured limits. Management believes minimal credit risk exists with respect to these financial institutions and the Company has not experienced any losses on such amounts. 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, 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 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 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. 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. 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 10 Table of contents 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 . 3. Contract Liabilities and Remaining Performance Obligations Contract Liabilities The Company’s contract liabilities consist of deferred revenue and customer deposits. 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 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. 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 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 $ 2.6 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 See Note 12. Segment and Geographic Information for disaggregated revenue by customer segment and geographic region. 4. 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, 2025 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 971,705 $ 971,705 $ — $ — Prepaid expenses and other current assets and other assets: Certificates of deposit 4,834 — 4,834 — Marketable securities: U.S. Treasury securities 4,779,769 — 4,779,769 — Publicly-traded equity securities 42,081 42,081 — — Total $ 5,798,389 $ 1,013,786 $ 4,784,603 $ — 11 Table of contents Palantir Technologies Inc. Notes to Unaudited Condensed Consolidated Financial Statements As of December 31, 2024 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 1,823,046 $ 1,823,046 $ — $ — Prepaid expenses and other current assets and other assets: Certificates of deposit 4,826 — 4,826 — Marketable securities: U.S. Treasury securities 3,110,687 — 3,110,687 — Publicly-traded equity securities 20,776 20,776 — — Total $ 4,959,335 $ 1,843,822 $ 3,115,513 $ — Certificates of Deposit The Company’s certificates of deposit are Level 2 instruments. The fair value of such instruments is estimated based on valuations obtained from third-party pricing services that utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable either directly or indirectly. These inputs include interest rate curves, foreign exchange rates, and credit ratings. Debt Securities 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 U.S. Treasury securities $ 4,773,008 $ 7,095 $ ( 334 ) $ 4,779,769 Total debt securities $ 4,773,008 $ 7,095 $ ( 334 ) $ 4,779,769 As of December 31, 2024 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities $ 3,110,278 $ 1,022 $ ( 613 ) $ 3,110,687 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 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 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 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 September 30, 2025 and December 31, 2024. Equity Securities The Company holds equity securities in publicly-traded companies, which are recorded at fair market value each reporting period in marketable securities on the condensed consolidated balance sheets. 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 12 Table of contents 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 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 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 $ 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 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”). The Company assessed the concurrent agreements under the noncash consideration and consideration payable to a customer guidance within Accounting Standards Codification 606, Revenue from Contracts with Customers, as well as the commercial substance of each arrangement considering the customer’s ability and intention to pay as well as the Company’s obligation to perform under each contract. 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, 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. 5. Balance Sheet Components Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): As of September 30, 2025 As of December 31, 2024 Leasehold improvements $ 97,182 $ 85,284 Computer equipment, software, and other 70,280 55,815 Furniture and fixtures 15,075 13,906 Construction in progress 5,959 7,632 Total property and equipment, gross 188,496 162,637 Less: accumulated depreciation and amortization ( 142,790 ) ( 122,999 ) Total property and equipment, net $ 45,706 $ 39,638 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. 13 Table of contents Palantir Technologies Inc. Notes to Unaudited Condensed Consolidated Financial Statements Accrued Liabilities Accrued liabilities consisted of the following (in thousands): As of September 30, 2025 As of December 31, 2024 Accrued payroll and related expenses $ 174,527 $ 306,939 Accrued other liabilities 207,210 120,107 Total accrued liabilities $ 381,737 $ 427,046 6. Debt 2014 Credit Facility 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 September 30, 2025. 7. 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, among other things. 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 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; employment; securities; investors; taxes; class actions; contract or breach of contract; tort; warranty; refund; breach, leak, or misuse of personal data or confidential information; government procurement; government regulation or compliance; or other matters. 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. Palantir Technologies Inc., et al. , Case No. 1:22-cv-02384, Allegheny County Employees’ Retirement System v. Palantir Technologies, Inc., et al. , Case No. 1:22-cv-02805, and S hijun Liu, Individually and as Trustee of the Liu Family Trust 2019 v. Palantir Technologies Inc., et al. , Case No. 1:22-cv-02893, respectively, naming the Company and certain current and former officers and directors as defendants. The suits allege false and misleading statements about our business and prospects, and purport to allege claims under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Securities Act of 1933, as amended (the “Securities Act”), and seek unspecified damages and remedies under Sections 10(b), 20(a), and 20(A) of the Exchange Act and Sections 11 and 15 of the Securities Act. These three actions subsequently were consolidated as Cupat v. Palantir Technologies Inc., et al. , Lead Civil Action No. 1:22-cv-02834-CNS-SKC, consolidated with civil actions 1:22-cv-02805-CNS-SKC and 1:22-cv-02893-CNS-SKC. On March 31, 2024, the Court dismissed the Cupat matter without prejudice. 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. Karp, et al. , Case No. 22-cv-3028 and on January 27, 2023, a stockholder derivative action was filed 14 Table of contents Palantir Technologies Inc. Notes to Unaudited Condensed Consolidated Financial Statements in the United States District Court for the District of Delaware, captioned Miao v. Karp, et al. , Case No. 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. On August 22, 2023, a stockholder derivative action was filed in the Court of Chancery of the State of Delaware captioned Central Laborers’ Pension Fund v. Karp, et al. , Case No. 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. On April 25, 2025, the Court dismissed the Central Laborers’ Pension Fund matter in its entirety under Rule 23.1. 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 The Company generally provides a warranty for its software products and services and a service level agreement (“SLA”) for the Company’s performance of software operations. The Company’s products are generally warranted to perform substantially as described in the associated product documentation during the subscription term or for a period of up to 90 days where the software is hosted by the customer, and the Company includes operations and maintenance (“O&M”) services as part of its subscription and license agreements to support this warranty and maintain the operability of the software. 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). 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. In the event of such a claim, the Company is generally obligated to defend its customer against the claim and to either settle the claim at the Company’s expense or pay damages that the customer is legally required to pay to the third-party claimant. 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; 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, 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. 8. Stockholders’ Equity The Company’s Class A, Class B, and Class F common stock (collectively, the “common stock”) all have the same rights, except with respect to voting and conversion rights. Class A and Class B common stock have voting rights of 1 and 10 votes per share, respectively. The Class F common stock has the voting rights generally described herein, and each share of Class F common stock is convertible at any time, at the option of the holder thereof, into one share of Class B common stock. 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, 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 September 30, 2025. 15 Table of contents 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 September 30, 2025 As of December 31, 2024 Authorized Issued and Outstanding Authorized Issued and Outstanding Class A Common Stock 20,000,000 2,284,210 20,000,000 2,242,389 Class B Common Stock 2,700,000 98,099 2,700,000 95,401 Class F Common Stock 1,005 1,005 1,005 1,005 Total 22,701,005 2,383,314 22,701,005 2,338,795 Share Repurchase Program In August 2023, the Company’s Board of Directors authorized a stock repurchase program of up to $ 1.0 billion of the Company’s outstanding shares of Class A common stock (the “Share Repurchase Program”). 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 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, 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. 9. Stock-Based Compensation Stock Options and SARs 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 Number of Awards Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value Number of Awards Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance as of December 31, 2024 178,109 $ 9.26 6.9 $ 11,821,740 6,437 $ 55.75 6.7 $ 127,976 Granted — — 5,061 218.86 Exercised ( 23,992 ) 5.04 — — Canceled and forfeited ( 168 ) 6.45 ( 237 ) 53.81 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 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 –$ 250 and maximum appreciation values of between $ 60 –$ 300 . 16 Table of contents 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 % Expected term (in years) 3.4 - 9.3 Risk-free interest rate 4.0 % - 4.6 % Expected dividend yield — % The expected volatility rate is based on a combination of the Company’s implied and historical volatility, and the historical volatility of comparable publicly-traded companies. The expected term represents the period of time the SARs are expected to be outstanding. 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 Company has never paid and has no plans to pay dividends on its common stock, therefore the expected dividend yield is zero. RSUs and P-RSUs 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 Unvested and outstanding as of December 31, 2024 65,236 $ 14.89 577 $ 41.93 Granted 4,976 129.64 695 93.75 Vested ( 19,893 ) 18.57 ( 1,047 ) 59.29 Canceled and forfeited ( 2,730 ) 25.08 ( 18 ) 93.98 Adjustment for performance achievement (1) ( 74 ) 68.14 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 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 September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of revenue $ 15,789 $ 13,123 $ 45,778 $ 35,941 Sales and marketing 63,148 50,698 171,701 141,168 Research and development 35,049 30,715 98,951 87,532 General and administrative 58,332 47,889 171,198 145,199 Total stock-based compensation expense $ 172,318 $ 142,425 $ 487,628 $ 409,840 17 Table of contents Palantir Technologies Inc. Notes to Unaudited Condensed Consolidated Financial Statements 10. Income Taxes 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 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 $ 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. The Company assesses its ability to realize the deferred tax assets on a quarterly basis, and it establishes a valuation allowance if it is more likely than not that some portion of the deferred tax assets will not be realized. The Company weighs all available positive and negative evidence, including its earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. For example, due to the weight of objectively verifiable negative evidence, including its history of U.S. and U.K. net operating tax losses, the Company has maintained a full valuation allowance on its U.S. and U.K. 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. 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 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. 11. 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 September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Numerator Net income attributable to common stockholders for diluted earnings per share $ 475,599 $ 143,525 $ 1,016,357 $ 383,181 Denominator Weighted-average shares used in computing earnings per share: Basic 2,377,167 2,250,032 2,363,785 2,231,790 Effect of dilutive shares 193,890 209,557 198,582 193,074 Diluted 2,571,057 2,459,589 2,562,367 2,424,864 Earnings per share Earnings per share attributable to common stockholders: Basic $ 0.20 $ 0.06 $ 0.43 $ 0.17 Diluted $ 0.18 $ 0.06 $ 0.40 $ 0.16 18 Table of contents 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 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. 12. Segment and Geographic Information The following reporting segment tables reflect the results of the Company’s reportable operating segments consistent with the manner in which the chief operating decision maker (“CODM”) evaluates the performance of each segment and allocates the Company’s resources. The CODM does not evaluate the performance of the Company’s assets on a segment basis for internal management reporting and, therefore, such information is not presented. Contribution is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. A segment’s contribution is calculated as segment revenue less the related costs of revenue and sales and marketing expenses. It excludes certain operating expenses that are not allocated to segments because they are separately managed at the consolidated corporate level or are noncash costs. These unallocated and noncash costs include stock-based compensation expense, research and development expenses, and general and administrative expenses. Financial information for each reportable segment was as follows (in thousands, except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Amount % Amount % Amount % Amount % Contribution: Government revenue $ 632,676 $ 408,341 $ 1,672,622 $ 1,114,481 Expenses attributable to government segment ( 214,967 ) ( 165,114 ) ( 603,541 ) ( 440,472 ) Government contribution 417,709 66 % 243,227 60 % 1,069,081 64 % 674,009 60 % Commercial revenue 548,416 317,175 1,396,022 923,507 Expenses attributable to commercial segment ( 188,039 ) ( 127,178 ) ( 506,924 ) ( 373,336 ) Commercial contribution 360,377 66 % 189,997 60 % 889,098 64 % 550,171 60 % Total contribution $ 778,086 66 % $ 433,224 60 % $ 1,958,179 64 % $ 1,224,180 60 % The reconciliation of contribution to income from operations is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Income from operations $ 393,256 $ 113,140 $ 838,621 $ 299,360 Research and development expenses (1) 109,142 86,840 315,172 248,844 General and administrative expenses (1) 103,370 90,819 316,758 266,136 Total stock-based compensation expense 172,318 142,425 487,628 409,840 Total contribution $ 778,086 $ 433,224 $ 1,958,179 $ 1,224,180 ————— (1) Excludes stock-based compensation expense. 19 Table of contents Palantir Technologies Inc. Notes to Unaudited Condensed Consolidated Financial Statements Geographic Information Revenue by geography is based on the customer’s headquarters or agency location at the time of sale. Revenue is as follows (in thousands, except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Amount % Amount % Amount % Amount % Revenue: United States $ 882,571 75 % $ 498,986 69 % $ 2,243,657 73 % $ 1,342,564 66 % United Kingdom 114,713 10 % 69,496 10 % 301,539 10 % 209,688 10 % Rest of world (1) 183,808 15 % 157,034 21 % 523,448 17 % 485,736 24 % 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 nine months ended September 30, 2025 or 2024. 13. 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 September 30, 2025 As of December 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 2.1 $ 10,400 $ ( 6,066 ) $ 4,334 $ 10,400 $ ( 4,507 ) $ 5,893 Reacquired rights 4.1 17,618 ( 7,341 ) 10,277 17,618 ( 5,453 ) 12,165 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 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 Remainder of 2025 $ 1,150 2026 4,597 2027 4,250 2028 2,517 2029 2,097 Thereafter — Total $ 14,611 14. 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 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. 20 Table of contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “can,” “would,” “intend,” “target,” “goal,” “outlook,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “future,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. 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 maintain future profitability, and cash flows; • our ability to successfully execute our business and growth strategy; • the sufficiency of our available funds to meet our liquidity needs; • the demand for our platforms in general; • our ability to increase our number of customers and revenue generated from customers; • our expectations regarding the future contribution margin of our existing and future customers; • our expectations regarding our ability to quickly and effectively integrate our platforms for our existing and future customers; • our ability to develop new platforms, and enhancements to existing platforms, and bring them to market in a timely manner; • our market share, category positions, and market trends, including our ability to grow our business in large government and commercial organizations, including our expectations regarding the impact of Federal Acquisition Streamlining Act of 1994 (“FASA”); • our ability to compete with existing and new competitors in existing and new markets and products; • our expectations regarding anticipated technology needs and developments and our ability to address those needs and developments with our platforms; • our expectations regarding litigation and legal and regulatory matters; • our expectations regarding our ability to meet existing performance obligations and maintain the operability of our products; • our expectations regarding the effects of existing and developing laws and regulations, including with respect to taxation, privacy, data protection, cybersecurity, and artificial intelligence (“AI”); • our expectations regarding new and evolving markets, such as AI; • our ability to develop and protect our brand; • 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 publicly-traded and privately-held entities, including special purpose acquisition companies; • our ability to maintain, protect, and enhance our intellectual property; • our expectations regarding the amount, timing, and manner of any stock repurchases; • 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, monetary policy changes, or the potential or actual imposition of tariffs or other impacts on trade relations; 21 Table of contents • 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; and • 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. You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described in the section titled “ Risk Factors ” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on any forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in such forward-looking statements. Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Moreover, the forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, restructurings, joint ventures, partnerships, channel sales relationships, or investments we may make. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. 22 Table of contents