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We later began working with commercial enterprises, who often faced fundamentally similar challenges in working with data.
−Removed: We have built four principal software platforms, Gotham, Foundry, Apollo, and our Artificial Intelligence Platform (“AIP”).
−Removed: Gotham and Foundry enable institutions to transform massive amounts of information into an integrated data asset that reflects their operations, and AIP leverages the power of our existing machine learning technologies alongside generative AI models, including large language models (“LLMs”), directly within Gotham and/or Foundry to help operationalize AI on enterprise data.
+Added: We have built four principal software platforms, Gotham, Foundry, Apollo, and AIP.
+Added: Foundry is our foundational data operations platform, which provides the core capabilities for data management, logic authoring, systemic mapping development through our Ontology, analytics, and workflow development.
+Added: AIP is our generative AI platform, which provides secure connectivity to third-party-provided LLMs, a development toolchain for building AI-powered agents and automations, an array of AI-enabled end user applications, a broad evaluations framework for governing AI workflows in production, and more.
+Added: Apollo is our continuous delivery platform, enabling the orchestration of upgrades of services and assets every day to manage the underlying infrastructure that hosts our other platforms.
+Added: Gotham integrates with our other platforms, as well as our broader defense offerings, to power a wide array of missions across allied defense and intelligence operations.
For over a decade, Gotham has surfaced insights for global defense agencies, the intelligence community, disaster relief organizations and beyond.
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We believe AIP uniquely allows users to connect LLMs and other AI with their data and operations to facilitate decision-making within the legal, ethical, and security constraints that they require.
+Added: The Ontology has continuously evolved over time, serving as the heart of our platforms by activating data and analytics inside operations, enabling real-time connectivity between data, analytics, and operational teams, as well as AI.
+Added: Ontology generally refers to the systematic mapping of data to meaningful context.
+Added: The Palantir Ontology goes far beyond the traditional concept by integrating the elements of a decision—the data, logic, and actions—into a foundational representation of the organization, and allowing users to build interconnected workflows, turning specialized expertise into shared infrastructure to dynamically optimize decision-making across the enterprise.
+Added: The Ontology can help create a shared understanding across all users in a data ecosystem regardless of technical skills, enabling organizations to scale more efficiently and rapidly.
While our focus in the short term remains on making our software platforms available to increasingly broad swaths of the market, we are also working to identify additional component parts and products embedded within those platforms that have potential as commercial offerings on their own.
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For the year ended December 31, 2025, we generated $4.5 billion in revenue, reflecting a 56% growth rate from the year ended December 31, 2024, when we generated $2.9 billion in revenue.
+Added: In the year ended December 31, 2025, we generated income from operations of $1.4 billion, or adjusted income from operations of $2.3 billion when excluding stock-based compensation and related employer payroll taxes.
In the year ended December 31, 2024, we generated income from operations of $310.4 million, or adjusted income from operations of $1.1 billion when excluding stock-based compensation and related employer payroll taxes.
−Removed: In the year ended December 31, 2023, we generated income from operations of $120.0 million, or adjusted income from operations of $632.8 million when excluding stock-based compensation and related employer payroll taxes.
In the year ended December 31, 2025, our gross profit was $3.7 billion, reflecting a gross margin of 82%, or 84% when excluding stock-based compensation.
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and gross profit and gross margin, when excluding stock-based compensation;
−Removed: as well as reconciliations from income (loss) from operations and gross profit, see the section titled “Non-GAAP Reconciliations” below.
+Added: as well as reconciliations from income from operations and gross profit, see the section titled “Non-GAAP Reconciliations” below.
Our Customers
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We have built lasting and significant customer relationships and partnerships with some of the world’s leading government institutions and companies.
−Removed: As of December 31, 2024, we expect to generate revenue from contracts closed during the three months and year ended December 31, 2024 for an additional 4.7 and 3.6 years, respectively, on a dollar-weighted average contract duration basis.
+Added: As of December 31, 2025, we expect to generate revenue from contracts closed during each of the three months and year ended December 31, 2025 for an additional four years, on a dollar-weighted average contract duration basis.
Dollar-weighted average contract duration represents the length of time we expect to generate revenue on average, based on the total potential lifetime length and value of contracts entered into with, or awarded by, our customers at the time of contract execution, presuming that our customers will exercise all of the contractual options available to them and no termination of contracts, although many of our contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised.
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Total remaining deal value presumes the exercise of all contract options available to our customers and no termination of contracts.
−Removed: However, many of our contracts are subject to termination provisions, including
−Removed: for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised.
+Added: However, many of our contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised.
Further, total remaining deal value may exclude all or some portion of the value of certain commercial contracts as a result of our ongoing assessments of customers’ financial condition, including the consideration of such customers’ ability and intention to pay, and whether such contracts continue to meet the criteria for revenue recognition, among other factors.
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Macroeconomic Trends
−Removed: As a corporation with an international presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, geopolitical tensions, heightened interest rates, monetary policy changes, and foreign currency fluctuations.
+Added: As a corporation with an international presence, we are subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to, geopolitical tensions, fluctuating interest rates, monetary policy changes, foreign currency fluctuations, and the potential or actual imposition of tariffs or other impacts on trade relations.
Additionally, these macroeconomic impacts have disrupted, and may continue to disrupt, the operations of our customers and prospective customers.
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We continue to closely monitor the impact of various geopolitical tensions and their global impacts on our business.
−Removed: While the ongoing Russia-Ukraine and Israel conflicts are still evolving and the outcomes remain highly uncertain, we do not expect that the resulting challenging macroeconomic conditions will have a material impact on our business or results of operations.
+Added: While the ongoing Russia-Ukraine, Israel and broader Middle East, and other global conflicts are still evolving and the outcomes remain highly uncertain, we do not expect that the resulting challenging macroeconomic conditions will have a material impact on our business or results of operations.
We do not currently have office locations in Russia or Palestinian territories and none of our revenues came from sales to entities headquartered in those countries or territories.
−Removed: In 2023, we announced partnerships with Ukraine to support its defense and reconstruction efforts and investigations of potential war crimes, among other activities.
−Removed: In 2024, we agreed to a strategic partnership with the Israeli Defense Ministry to supply technology to Israel to assist in the ongoing war.
−Removed: However, our current operations related to Ukraine and Israel are not material to our financial position or results of operations.
+Added: Our current operations related to Ukraine and Israel are not material to our financial position or results of operations.
If the respective conflicts continue or worsen, leading to greater disruptions and uncertainty within the technology industry or global economy, our business and results of operations could be negatively impacted.
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Additionally, certain of our U.S.
−Removed: subsidiaries may hold monetary assets and
−Removed: liabilities in currencies other than their functional currency (primarily the JPY, Euro, and GBP), which could subject our results of operations and cash flows to adverse fluctuations due to changes in such foreign currency exchange rates as compared to the U.S.
+Added: subsidiaries may hold monetary assets and liabilities in currencies other than their functional currency (primarily the JPY, Euro, and GBP), which could subject our results of operations and cash flows to adverse fluctuations due to changes in such foreign currency exchange rates as compared to the U.S.
For the year ended December 31, 2025, such impacts were not material to our financial position or results of operations.
Customer Impacts
−Removed: Current macroeconomic conditions have impacted, and may continue to adversely impact, our customers’ businesses, particularly our early- and growth-stage customers.
−Removed: Relationships with early- or growth-stage customers carry inherent risks because, among other things, such customers may be unable to generate sufficient revenues or profitability or to access any necessary financing or funding in a timely manner or on favorable terms to them in the current macroeconomic environment, which has impacted, and may continue to impact, our expected revenue and collections.
−Removed: As a result, current macroeconomic conditions have impacted, and may continue to impact, our ability to realize the full value of our commercial contracts with such early- or growth-stage customers.
+Added: Macroeconomic conditions have impacted, and may continue to adversely impact, our customers’ businesses.
+Added: With economic uncertainty, we may experience additional negative impacts on new customer acquisition, customer renewals, and customer collections, among other things, which could negatively impact our business and results of operations.
Key Business Measure
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and adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes, to help us evaluate our business, identify trends affecting our business, formulate business plans and financial projections, and make strategic decisions.
−Removed: We exclude stock-based compensation, which is a noncash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in
−Removed: the same manner as our management team.
+Added: We exclude stock-based compensation, which is a noncash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team.
Additionally, we exclude employer payroll taxes related to stock-based compensation as it is difficult to predict and outside of our control.
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Adjusted Income from Operations
−Removed: The following table provides a reconciliation of adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes for the years ended December 31, 2024 and 2023 (in thousands):
+Added: The following table provides a reconciliation of adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes for the years ended December 31, 2025 and 2024 (in thousands, except percentages):
Years Ended December 31,
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Cost of Revenue
−Removed: Cost of revenue primarily includes salaries, stock-based compensation expense, and benefits for personnel involved in performing O&M and professional services, as well as subcontractor expenses, field-service representatives, third-party cloud hosting services, hardware costs, travel costs, allocated overhead, and other direct costs.
+Added: Cost of revenue primarily includes salaries, stock-based compensation expense, and benefits for personnel involved in performing O&M and professional services, as well as subcontractor expenses, field-service representatives, third-party cloud hosting services, hardware costs, and other direct costs.
We expect that cost of revenue will increase in absolute dollars as our revenue grows and will vary from period to period as a percentage of revenue.
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Our sales and marketing efforts span all stages of our sales cycle, including personnel involved with sales functions, and executing pilots at new or existing customers.
−Removed: Sales and marketing costs primarily include salaries, stock-based compensation expense, variable compensation, including commissions, and benefits for our sales force and personnel involved in sales functions, executing on pilots, including bootcamps, and customer growth activities;
−Removed: as well as third-party cloud hosting services for our pilots, marketing and sales event-related costs, travel costs, and allocated overhead.
+Added: Sales and marketing costs primarily include salaries, stock-based compensation expense, variable compensation, including commissions, and benefits for our sales force and personnel involved in sales
+Added: functions, executing on pilots, and customer growth activities;
+Added: as well as third-party cloud hosting services for our pilots, and marketing and sales event-related costs.
Sales and marketing costs are generally expensed as incurred.
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Our research and development efforts are aimed at continuing to develop and refine our offerings, including adding new platforms, features, and modules, increasing their functionality, and enhancing the usability of our platforms.
−Removed: Research and development costs primarily include salaries, stock-based compensation expense, and benefits for personnel involved in performing the activities to develop and refine our platforms and products, as well as third-party cloud hosting services and other IT-related costs, travel costs, and allocated overhead.
+Added: Research and development costs primarily include salaries, stock-based compensation expense, and benefits for personnel involved in performing the activities to develop and refine our platforms and products, as well as third-party cloud hosting services and other IT-related costs.
Research and development costs are expensed as incurred.
2 unchanged sentences
General and Administrative
−Removed: General and administrative costs include salaries, stock-based compensation expense, and benefits for personnel involved in our executive, finance, legal, human resources, and administrative functions, as well as third-party professional services and fees, travel costs, and allocated overhead.
+Added: General and administrative costs include salaries, stock-based compensation expense, and benefits for personnel involved in our executive, finance, legal, human resources, and administrative functions, as well as third-party professional services and fees.
We expect that general and administrative expenses will increase in absolute dollars as we hire additional personnel and enhance our systems, processes, and controls to support the growth in our business as well as our continuing compliance and reporting requirements as a public company.
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Other income (expense), net consists primarily of realized and unrealized losses from equity securities and foreign currency exchange gains and losses.
−Removed: The year ended December 31, 2022 also included a gain from a step acquisition.
Provision for Income Taxes
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Net Income Attributable to Noncontrolling Interests
−Removed: Net income attributable to noncontrolling interests represents the share of income (loss) that is not attributable to the Company.
+Added: Net income attributable to noncontrolling interests represents the share of income that is not attributable to the Company.
We have two operating segments, commercial and government, which were determined based on the manner in which the chief operating decision maker, who is our Chief Executive Officer, manages our operations for purposes of allocating resources and evaluating performance.
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To the extent costs of revenue or sales and marketing expenses are not directly attributable to a particular segment, they are allocated based upon headcount at each operating segment during the period.
−Removed: We use it, in part, to evaluate the performance of, and allocate resources to, each of our operating segments, which excludes certain operating expenses that are not allocated to operating segments because they are separately managed at the consolidated corporate level, or are noncash costs.
+Added: We use it, in part, to evaluate the performance of, and allocate resources to, each of our operating segments, which excludes certain operating expenses that are not allocated to operating segments because they are separately managed at the consolidated corporate level,
+Added: or are noncash costs.
These noncash or unallocated costs include stock-based compensation expense, research and development costs, and general and administrative costs.
11 unchanged sentences
Total operating expenses 2,272,254 1,989,114 1,673,941
−Removed: Income (loss) from operations 310,403 119,966 (161,201)
+Added: Income from operations 1,414,015 310,403 119,966
Interest income 229,181 196,792 132,572
Other income (expense), net 14,172 (18,022) (15,447)
−Removed: Income (loss) before provision for income taxes 489,173 237,091 (361,027)
+Added: Income before provision for income taxes 1,657,368 489,173 237,091
Provision for income taxes 22,724 21,255 19,716
−Removed: Net income (loss) 467,918 217,375 (371,094)
+Added: Net income 1,634,644 467,918 217,375
Net income attributable to noncontrolling interests 9,611 5,728 7,550
−Removed: Net income (loss) attributable to common stockholders $ 462,190 $ 209,825 $ (373,705)
+Added: Net income attributable to common stockholders $ 1,625,033 $ 462,190 $ 209,825
The following table sets forth the components of our consolidated statements of operations data as a percentage of revenue:
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Total operating expenses 50 69 76
−Removed: Income (loss) from operations 11 5 (8)
+Added: Income from operations 32 11 5
Interest income 5 7 6
Other income (expense), net — (1) —
−Removed: Income (loss) before provision for income taxes 17 11 (19)
+Added: Income before provision for income taxes 37 17 11
Provision for income taxes 1 1 1
−Removed: Net income (loss) 16 10 (20)
+Added: Net income 36 16 10
Net income attributable to noncontrolling interests — — 1
−Removed: Net income (loss) attributable to common stockholders 16 % 9 % (20) %
+Added: Net income attributable to common stockholders 36 % 16 % 9 %
Comparison of the Years Ended December 31, 2025 and 2024
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Total revenue $ 4,475,446 $ 2,865,507 $ 1,609,939 56 %
−Removed: Revenue increased by $640.5 million, or 29%, for the year ended December 31, 2024 compared to 2023.
+Added: Revenue increased by $1.6 billion, or 56%, for the year ended December 31, 2025 compared to 2024.
Revenue from government customers increased by $832.7 million, or 53%, for the year ended December 31, 2025 compared to 2024.
1 unchanged sentence
Revenue from U.S.
−Removed: government customers was $1.2 billion for the year ended December 31, 2024 compared to $921.2 million for the same period in 2023.
+Added: government customers was $1.9 billion for the year ended December 31, 2025 compared to $1.2 billion for the same period in 2024.
Revenue from commercial customers increased by $777.3 million, or 60%, for the year ended December 31, 2025 compared to 2024.
1 unchanged sentence
Revenue from U.S.
−Removed: commercial customers was $702.3 million for the year ended December 31, 2024 compared to $457.1 million for the same period in 2023, a 54% increase.
+Added: commercial customers was $1.5 billion for the year ended December 31, 2025 compared to $702.3 million for the same period in 2024, a 109% increase.
Generally, increases in revenue from our existing customers are related to the increased adoption of our products and services within their organizations.
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Cost of revenue for the year ended December 31, 2025 increased by $223.2 million, or 39%, compared to 2024.
−Removed: The increase was primarily due to increases of $56.6 million in subcontractor expenses, $42.3 million in stock-based compensation expense and related expenses, and $37.4 million in third-party cloud hosting services.
−Removed: Our gross margin for the year ended December 31, 2024 decreased from 81% for the same period in 2023 to 80% as a result of the growth of cost of revenue slightly outpacing revenue growth.
+Added: The increase was primarily due to increases of $94.6 million in third-party cloud hosting services, $38.0 million in subcontractor expenses, $29.1 million in field-service representatives, and $26.9 million in payroll and other payroll-related costs.
+Added: Our gross margin for the year ended December 31, 2025 increased from 80% for the same period in 2024 to 82%.
For additional information related to stock-based compensation expense, see the section titled “Stock-Based Compensation” below.
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Sales and marketing expenses increased by $169.1 million, or 19%, for the year ended December 31, 2025 compared to 2024.
−Removed: The increase was primarily due to increases of $111.4 million in stock-based compensation expense and related expenses, $13.9 million in third-party cloud hosting services, and $12.9 million in payroll and other payroll-related costs.
+Added: The increase was primarily due to increases of $76.4 million in payroll and other payroll-related costs, $18.3 million in marketing expenses, and $16.4 million in stock-based compensation expense and related expenses.
For additional information related to stock-based compensation expense, see the section titled “Stock-Based Compensation” below.
1 unchanged sentence
Research and development expenses increased by $49.8 million, or 10%, for the year ended December 31, 2025 compared to 2024.
−Removed: The increase was primarily due to increases of $87.4 million in stock-based compensation expense and related expenses and $17.5 million in third-party cloud hosting services.
+Added: The increase was primarily due to increases of $35.6 million in third-party cloud hosting services and $19.0 million in payroll and other payroll-related costs.
+Added: These were partially offset by a decrease of $19.8 million in stock-based compensation expense and related expenses
For additional information related to stock-based compensation expense, see the section titled “Stock-Based Compensation” below.
1 unchanged sentence
General and administrative expenses increased by $64.2 million, or 11%, for the year ended December 31, 2025 compared to 2024.
−Removed: The increase was primarily due to increases of $63.7 million in stock-based compensation expense and related expenses and $11.6 million in travel costs.
+Added: The increase was primarily due to increases of $22.7 million in stock-based compensation expense and related expenses, and $19.4 million in payroll and other payroll-related costs.
For additional information related to stock-based compensation expense, see the section titled “Stock-Based Compensation” below.
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Total stock-based compensation expense $ 684,033 $ 691,638 $ (7,605) (1) %
−Removed: Stock-based compensation expenses increased by $215.7 million, or 45%, for the year ended December 31, 2024 compared to 2023.
−Removed: The increase was primarily driven by the acceleration of $115.8 million of expense for Market-Vesting SARs upon achieving the applicable market condition, as well as expense from new equity grants awarded since December 31, 2023, including grants for RSUs, P-RSUs, and SARs.
−Removed: These were partially offset by a reduction in expense from equity awards that became fully vested, forfeitures, and lower expense under the accelerated attribution method for RSUs granted prior to September 30, 2020, the date we completed the direct listing of our Class A common stock on the NYSE.
+Added: Stock-based compensation expenses decreased by $7.6 million, or 1%, for the year ended December 31, 2025 compared to 2024.
+Added: The decrease was driven by reductions in expense from SARs that fully vested and expensed during the year ended December 31, 2024, partially offset by expense from new grants awarded since and within the year ended December 31, 2024, including RSUs, P-RSUs, and SARs.
Interest Income
8 unchanged sentences
Other income (expense), net $ 14,172 $ (18,022) $ 32,194
−Removed: Other income (expense), net changed by $2.6 million for the year ended December 31, 2024 compared to 2023 primarily due to an increase in net realized and unrealized losses from our shares held in equity securities.
+Added: Other income (expense), net changed by $32.2 million for the year ended December 31, 2025 compared to 2024 primarily due to upward adjustments in privately-held securities and lower realized losses from marketable securities, partially offset by an increase in unrealized losses on marketable securities.
Provision for Income Taxes
2 unchanged sentences
Provision for income taxes $ 22,724 $ 21,255 $ 1,469
−Removed: Provision for income taxes increased by $1.5 million for the year ended December 31, 2024 compared to 2023 primarily due to the increased foreign tax expense as the result of higher foreign taxable income and withholding taxes.
+Added: The increase in the provision for income taxes was not material for the year ended December 31, 2025 compared to 2024.
For additional information see Note 11.
−Removed: Income Taxes in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
+Added: Taxes in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
Liquidity and Capital Resources
−Removed: We generated positive cash flow from operations for the year ended December 31, 2024.
−Removed: We had cash, cash equivalents, and short-term U.S.
−Removed: Treasury securities totaling $5.2 billion available as of December 31, 2024.
−Removed: We believe that cash flows generated from operations, available funds, and access to financing sources, including our undrawn credit facility, will be sufficient to meet our anticipated operating cash needs for at least the next twelve months.
−Removed: However, any projections of future cash needs and cash flows are subject to substantial uncertainty.
−Removed: While we have generated income from operations and positive cash flows from operations in the year ended December 31, 2024, the amounts may fluctuate for the foreseeable future.
−Removed: As of December 31, 2024, our accumulated deficit balance was $5.2 billion, and our principal sources of liquidity were cash, cash equivalents, and short-term U.S.
+Added: As of December 31, 2025, our principal sources of liquidity were cash, cash equivalents, and short-term U.S.
Treasury securities totaling $7.2 billion.
−Removed: As of December 31, 2024, we had no outstanding debt balances and additional available and undrawn revolving commitments of $500.0 million under our credit facility.
−Removed: For more information, see Note 6.
−Removed: Debt in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
−Removed: During the year ended December 31, 2024, the Company repurchased and subsequently retired 2.1 million shares of its Class A common stock for an aggregate amount, including commissions, of $64.2 million under our Share Repurchase Program.
−Removed: As of December 31, 2024, approximately $935.8 million of the originally authorized amount under our Share Repurchase Program remained available for future repurchases.
−Removed: Our future capital requirements will depend on many factors, including, but not limited to, the rate of our growth, our ability to attract and retain customers and their willingness and ability to pay for our products and services, and the timing and extent of spending to support our efforts to market and develop our products.
−Removed: Further, we may enter into future arrangements to acquire or invest in businesses, products, services, strategic partnerships, and technologies;
−Removed: additionally, we have, and may in the future, repurchase shares of our Class A common stock from time to time under our Share Repurchase Program.
−Removed: As such, we may seek additional equity or debt financing on an as needed or opportunistic basis.
−Removed: In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.
−Removed: If additional funds are not available to us on acceptable terms, or at all, our business, financial condition, and results of operations could be adversely affected.
−Removed: For additional information on our Share Repurchase Program, see Note 9.
−Removed: Stockholders’ Equity in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
+Added: We generated positive cash flow from operations for the year ended December 31, 2025.
+Added: We believe that we have sufficient liquidity to meet our operating requirements for at least the next twelve months and thereafter for the foreseeable future.
+Added: We continue to evaluate our liquidity and capital resources, including our access to external capital, to ensure we can finance future capital requirements.
The following table summarizes our cash flows for the periods indicated (in thousands):
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Operating Activities
−Removed: Net cash provided by operating activities was $1.2 billion and $712.2 million for the year ended December 31, 2024 and 2023, respectively.
−Removed: The increase was primarily driven by the growth of our business and timing of payments to vendors.
+Added: Net cash provided by operating activities was $2.1 billion and $1.2 billion for the year ended December 31, 2025 and 2024, respectively.
+Added: The increase was primarily driven by revenue growth and timing of payments from customers, partially offset by timing of billings to customers.
Investing Activities
−Removed: Net cash used in investing activities was $340.7 million and $2.7 billion for the year ended December 31, 2024 and 2023, respectively.
−Removed: The decrease in cash used in investing activities was primarily due to increased proceeds from maturities of short-term U.S.
−Removed: Treasury securities compared to the prior year.
+Added: Net cash used in investing activities was $2.8 billion and $0.3 billion for the year ended December 31, 2025 and 2024, respectively.
+Added: The increase in cash used in investing activities was primarily due to more purchases of short-term U.S.
+Added: Treasury securities and privately-held securities compared to the prior year, partially offset by sales and redemptions of marketable securities.
Financing Activities
−Removed: Net cash provided by financing activities was $463.4 million and $218.8 million for the year ended December 31, 2024 and 2023, respectively, each of which primarily consisted of proceeds from the exercise of common stock options.
−Removed: During the year ended December 31, 2024, these were partially offset by taxes paid related to the net settlement of SARs and repurchases of Class A common stock.
−Removed: Contractual Obligations and Commitments
−Removed: The following table summarizes our contractual obligations and commitments as of December 31, 2024 (in thousands):
+Added: Net cash used in financing activities was $26.9 million for the year ended December 31, 2025 and net cash provided by financing activities was $463.4 million for the year ended December 31, 2024.
+Added: Financing cash inflows consisted primarily of proceeds from the exercise of common stock options.
+Added: Financing cash outflows were driven by taxes paid in the current year related to the net share settlement of SARs during the year ended December 31, 2024 and repurchases of our Class A common stock.
+Added: Material Cash Requirements
+Added: The following table summarizes our contractual obligations and commitments, which are associated with agreements that are enforceable and legally binding, as of December 31, 2025 (in thousands):
Payments Due by Period
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Leases in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for additional information.
−Removed: The contractual obligations and commitments in the table above are associated with agreements that are enforceable and legally binding.
−Removed: Contract Liabilities
−Removed: Our contract liabilities consist of deferred revenue and customer deposits.
−Removed: Deferred revenue represents billings under noncancelable contracts before the related product or service is transferred to the customer.
−Removed: The portion of deferred revenue that is anticipated to be recognized as revenue during the succeeding twelve-month period is recorded as deferred revenue and the remaining portion is recorded as deferred revenue, noncurrent.
−Removed: Customer deposits consist of amounts billed and/or paid for anticipated revenue generating activities in advance of the start of the contractual term or for the portion of a contract term that is subject to cancellation by our customers.
−Removed: The portion of customer deposits that is anticipated to be recognized as revenue during the succeeding twelve-month period is recorded as customer deposits and the remaining portion is recorded as customer deposits, noncurrent.
−Removed: Our deferred revenue and deferred revenue, noncurrent as of December 31, 2024 were $259.6 million and $39.9 million, respectively.
−Removed: Our customer deposits and customer deposits, noncurrent as of December 31, 2024 were $265.3 million and $1.7 million, respectively.
−Removed: Our deferred revenue and deferred revenue, noncurrent as of December 31, 2023 were $246.9 million and $28.0 million, respectively.
−Removed: Our customer deposits and customer deposits, noncurrent as of December 31, 2023 were $209.8 million and $1.5 million, respectively.
+Added: As of December 31, 2025, we had no outstanding debt balances and additional available and undrawn revolving commitments of $500.0 million under our credit facility.
+Added: For more information, see Note 6.
+Added: Debt in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
+Added: In August 2023, our Board of Directors authorized a stock repurchase program of up to $1.0 billion of our outstanding shares of Class A common stock (the “Share Repurchase Program”).
+Added: During the year ended December 31, 2025, the Company repurchased and subsequently retired 0.6 million shares of its Class A common stock for an aggregate amount, including commissions, of $75.0 million under our Share Repurchase Program.
+Added: In January 2026, the Company terminated the Share Repurchase Program.
+Added: For additional information on our Share Repurchase Program, see Note 9.
+Added: Stockholders’ Equity in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
+Added: Our future capital requirements will depend on many factors, including, but not limited to, the rate of our growth, our ability to attract and retain customers and their willingness and ability to pay for our products and services, and the timing and extent of spending to support our efforts to market and develop our products.
+Added: Further, we may enter into future arrangements to acquire or invest in businesses, products, services, strategic partnerships, and technologies.
+Added: As such, we may seek additional equity or debt financing on an as needed or opportunistic basis.
+Added: In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.
+Added: If additional funds are not available to us on acceptable terms, or at all, our business, financial condition, and results of operations could be adversely affected.
Critical Accounting Policies and Estimates
34 unchanged sentences
Our contracts with customers can include multiple promises to transfer goods or services to the customer.
−Removed: Determining whether promises are distinct performance obligations that should be accounted for separately – or not distinct within the context of the contract and, thus, accounted for together – requires significant judgment.
We concluded that the promise to provide a software license is highly interdependent and interrelated with the promise to provide O&M services and such promises are not distinct within the context of our contracts and are accounted for as a single performance obligation for our On-Premises Software.
3 unchanged sentences
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.