01—Abstract
Summary
Summary of the 10-Q filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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 millionb. 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 billionc 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.
02—Key points
Key Highlights
- Revenue surged by 39% year-over-year to $883.9 million in Q1 2025.
- Government sector revenue grew by 45% year-over-year, demonstrating continued strong demand.
- Commercial sector revenue increased by 33% year-over-year, indicating broadening market adoption.
- Income from operations more than doubled, increasing by 118% to $176.0 million.
- Net cash provided by operating activities saw a significant increase to $310.3 million.
- The company ended the quarter with $5.4 billion in cash, cash equivalents, and marketable securities.
- Palantir repurchased $18.0 million of its Class A common stock under its authorized share repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Palantir Technologies Inc. kept $0.24.
- Revenue$883.9M100.0%
- Cost of revenue−$173.0M19.6%
- Gross profit$710.9M80.4%
- Operating costs−$534.8M60.5%
- Operating income$176.0M19.9%
- Interest, other & tax$38.0M4.3%
- Net income$214.0M24.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 6, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $883.86M$634.34M | +39.3% |
| Cost of Revenue | $172.97M$116.26M | +48.8% |
| Gross Profit | $710.88M$518.08M | +37.2% |
| R&D Expenses | $134.89M$110.04M | +22.6% |
| Operating Expenses | $534.84M$437.20M | +22.3% |
| Operating Income | $176.05M$80.88M | +117.7% |
| Net Income | $214.03M$105.53M | +102.8% |
| EPS (Basic) | $0.09$0.05 | +80.0% |
| EPS (Diluted) | $0.08$0.04 | +100.0% |
| Shares Outstanding (Basic) | 2.35B2.21B | +6.1% |
| Shares Outstanding (Diluted) | 2.55B2.40B | +6.4% |
05—Questions
Frequently Asked Questions
How did Palantir's revenue perform in Q1 2025 compared to Q1 2024?
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.
What was Palantir's profitability in Q1 2025, and how does it compare to the previous year?
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.
How is Palantir's cash position and liquidity?
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.
What is the status of Palantir's share repurchase program?
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.
06—Continue