10-QPeriod: Q1 FY2025

Palantir Technologies Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 6, 2025For Securities:PLTR

Summary

Palantir Technologies Inc. (PLTR) reported a strong first quarter for 2025, showcasing significant year-over-year revenue growth and a substantial increase in profitability. Total revenue reached $883.9 million, a 39% increase compared to the first quarter of 2024, driven by robust performance in both government and commercial sectors, with government revenue up 45% and commercial revenue up 33%. This top-line growth translated into improved operational efficiency, with income from operations more than doubling to $176.0 million, a 118% increase year-over-year. The company's gross margin remained strong at 80%, though slightly down from 82% in the prior year, primarily due to increased cost of revenue driven by higher cloud hosting and personnel-related expenses. The company demonstrated solid cash flow generation, with net cash provided by operating activities increasing significantly to $310.3 million. Palantir also continued its share repurchase program, buying back approximately $18.0 million of its Class A common stock during the quarter, with $917.8 million remaining authorization. The company ended the quarter with a strong liquidity position, holding $5.4 billion in cash, cash equivalents, and short-term U.S. Treasury securities, with no outstanding debt under its credit facility. Management expressed confidence in meeting operating requirements for the foreseeable future, indicating a healthy financial standing.

Financial Highlights

51 data points
Beta

Revenue

$883.86M

80.4% Gross Margin

Net Income

$214.03M

24.2% Net Margin

EPS (Diluted)

$0.08

Total Assets

$6.74B

Cash & Equivalents

$993.46M

Free Cash Flow

$304.08M

Financial Statements
Beta
Revenue$883.86M
Cost of Revenue$172.97M
Gross Profit$710.88M
R&D Expenses$134.89M
Operating Expenses$534.84M
Operating Income$176.05M
Net Income$214.03M
EPS (Basic)$0.09
EPS (Diluted)$0.08
Shares Outstanding (Basic)2.35B
Shares Outstanding (Diluted)2.55B

Key Highlights

  • 1Revenue surged by 39% year-over-year to $883.9 million in Q1 2025.
  • 2Government sector revenue grew by 45% year-over-year, demonstrating continued strong demand.
  • 3Commercial sector revenue increased by 33% year-over-year, indicating broadening market adoption.
  • 4Income from operations more than doubled, increasing by 118% to $176.0 million.
  • 5Net cash provided by operating activities saw a significant increase to $310.3 million.
  • 6The company ended the quarter with $5.4 billion in cash, cash equivalents, and marketable securities.
  • 7Palantir repurchased $18.0 million of its Class A common stock under its authorized share repurchase program.

Frequently Asked Questions

Palantir Technologies Inc. reported a significant increase in revenue, growing by 39% year-over-year from $634.3 million in Q1 2024 to $883.9 million in Q1 2025. This growth was fueled by strong performance across both its government (up 45%) and commercial (up 33%) segments.

The company demonstrated improved profitability, with income from operations increasing by 118% year-over-year to $176.0 million in Q1 2025, compared to $80.9 million in Q1 2024. This indicates enhanced operational efficiency alongside revenue growth.

Palantir ended Q1 2025 with a strong liquidity position, reporting $5.4 billion in cash, cash equivalents, and short-term U.S. Treasury securities. The company has no outstanding debt under its credit facility and generated positive cash flow from operations, indicating robust financial health.

During Q1 2025, Palantir repurchased approximately $18.0 million of its Class A common stock as part of its authorized share repurchase program. The company still has approximately $917.8 million remaining under its $1.0 billion authorization, signaling continued capital return to shareholders.