Shareholder letter
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Letter to Shareholders May 5, 2025 I. We have taken repeated and enormous risks to build this company—risks that in hindsight seem to many almost prudent and banal. To spend years constructing an artificial intelligence platform long before the market understood its value or potential applications was repeatedly derided. Many were skeptical, if not outright hostile. Early investors were skittish; their commitment was often fleeting, at best. Our results are not and will never be the ultimate measure of the value, broadly defined, of our business. We have grander and more idiosyncratic aims. Yet we are subtle enough students of history to understand that strength, 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 1/14
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particularly the type that makes possible the nonconsensual compliance of a foreign adversary, is often, and indeed unfortunately, an essential component of forward progress. Our financial performance, that crude yardstick by which the market attempts to measure worth in this world, continues to exceed many of our greatest expectations. We generated $884 million in revenue in the first quarter of the year, a 7% increase from the prior quarter and a 39% increase from the same period the year before. This is a level of surging and ferocious growth that would be spectacular for a company a tenth of our size. At this scale, however, our ascent is, we believe, unparalleled. And it has been our essentially aesthetic instincts, our willingness to embrace the cultivation and nurturing of taste, in particular, as a virtue, in building software and constructing teams, that has propelled our rise. 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 2/14
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This breed of company will never spring from the mind of a committee; it would never have been permitted to endure in its current form, with thousands of employees organizing themselves around problems at hand, if we had submitted to the conventional managerial model in American corporate life. II. The rush towards large language models, as well as the foundational software architecture that is capable of making them valuable to large organizations, has turned into a stampede. What was once a relatively orderly process of assessment and evaluation of these novel technologies has evolved into a ravenous whirlwind of adoption as an increasing number of institutions grasp the magnitude of the shift that is washing over industry and government. And nowhere has the change been more evident than in the United States. Our total U.S. revenue grew 55% year- over-year to $628 million in the first three months of the year, while commercial revenue from our U.S. customers soared 71% in the same period to $255 million. 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 3/14
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Similarly, our U.S. government revenue increased 45% year-over-year to $373 million in the first three months of 2025, as our software systems for planning and executing special forces and other military operations, and for assessing and selecting targets, has been embraced by the American defense sector. These are not incremental advances. We believe our results are indicative of a revolution sweeping across our business and industry. III. Our interest in arming the United States of America, in ensuring that its defense and intelligence agencies had software capabilities that were far more lethal and precise than those of its adversaries—an aim that should be uncontroversial and nearly uninteresting 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 4/14
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—was for years dismissed as politically fraught and ill-advised. We, the heretics, this motley band of characters, were cast out and nearly discarded by Silicon Valley. And yet there are signs that some within the Valley have now turned a corner and begun following our lead. We note only that our commitment to building software for the U.S. military, to those whom we have asked to step into harmʼs way, remains steadfast, when such a commitment is fashionable and convenient and when it is not. The establishment consensus had in recent decades moved towards a posture of skepticism of the American project and national identity. A belief in defending the United States and its interests was cast as regressive; the logic of this recent era has been that the nation should be allowed to wither, to die a natural death, and that our primary allegiance ought to be redirected to humanity as a whole. While such an aspiration may have been noble, it has also been wildly premature. Our interest in protecting those dearest to us should never have been cast as standing in moral opposition to advancing and encouraging the rise of humanity at large. One will be of no use to others if he is incapable of standing for himself; the strength that we aspire to see directed 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 5/14
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at protecting those around us must first find root and grow in ourselves. Saint Augustine, who was born in the fourth century on the fringe of the Roman empire, reminds us to acknowledge and yet move beyond that central thorn in moral philosophy, rightly making the case that an abstract obligation to come to the aid of all need not prevent us from fulfilling our obligations to those with whom we are closest. “All men are to be loved equally,” he wrote. “But since you cannot do good to all, you are to pay special regard to those who, by the accidents of time, or place, or circumstance, are brought into closer connection with you.” IV. The culture of this company has always been and continues to be the precondition for the creation of our software. The company we have built is a communal endeavor, unafraid to nurture and advance a Weltanschauung—a community that is bound together by a short but evolving history and patterns of discourse and shared beliefs. It is that culture that allows and encourages some four thousand people to band together in shifting and often odd amalgamations to build something of value to themselves and to the world. 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 6/14
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We admittedly are not always the most pleasant of partners. Our messaging can be too abstract and a deterrent to some. Yet the next chapter belongs not to the critics and bystanders, those at the margins of creative empires, but to those who build them. There is no question that both cultures and companies, including the one we have built, must over a long period of time be judged “by their fruits.” Matt. 7:16. V. The establishment in this country is not merely adrift, as many have claimed, but has lost a sense of confidence, self- possession, and internal resolve. It is not quite clear what much of the establishment even holds dear, beyond its own self-regard. And the learned class, our new educational and cultural aristocracy, is far more entrenched and resilient than previous nobilities, whose positions were more precarious. “Nobility had nothing to explain their right to stay in power, apart from their birth,” Michel Houellebecq, the sardonic and uncomfortably insightful French author, said in an interview last year. “Contemporary elites claim intellectual and moral superiority.” 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 7/14
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The empathy for and interest in protecting the powerless and a ruthless pursuit of opportunity for all, no matter of high or low birth, that once defined a righteous and productive political movement has been set aside in favor of a performative politics—whose most zealous adherents are often more interested in signaling membership in a caste—that has turned off vast swaths of the public. When there is no yardstick, no willingness to measure and quantify the success or failure of a political movement or policy, and no intellectual curiosity in assessing whether an ideology or worldview has delivered for its constituents, we must be willing to expose our purported shepherds as corrupt. This argument and broader critique is set forth in more depth in The Technological Republic, which opens with a still timely reminder from Michael Sandel of Harvard: “Fundamentalists rush in where liberals fear to tread.” Indeed, if we fail to act, to formulate an affirmative view of what technology can accomplish, the undirected logic of the market will decide for us; it will fill the chasm that has opened as a result of our contemporary skittishness to define who we are as a people and what we aspire to create. We are, and have always been, ready to partner with anybody, of any stripe or affiliation, who is willing to hold themself 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 8/14
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accountable and quantify and measure their output. We seek partners who are interested in disposing of theater in favor of outcomes and willing to engage in a degree of forgiveness for the sins and missteps of those whose intentions are sufficiently noble. The future belongs not to those who style themselves as creators, or even to the merely brave, but to those who actually build something substantial and lasting. The skeptics and cynics, those who doubt without putting anything at risk, and those who deride the work of others without even feigning constructing something of their own, will be swept aside. On August 9, 1974, the day that he resigned from the presidency, Richard Nixon spoke to his staff, reminding us to “never be petty.” He added, “Always remember, others may hate you. But those who hate you donʼt win, unless you hate them. And then, you destroy yourself.” Sincerely, Alexander C. Karp Chief Executive Officer & Co-Founder 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 9/14
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Palantir Technologies Inc. Forward-Looking Statements This letter contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial outlook, product development and related timing, distribution, and pricing, expected benefits of and applications for our software platforms, business strategy, and plans (including strategy and plans relating to our Artificial Intelligence Platform (“AIP”), sales and marketing efforts, sales force, partnerships, and customers), investments in our business, market trends and market size, opportunities (including growth opportunities), our expectations regarding our existing and potential investments in, and commercial contracts with, various entities, our expectations regarding macroeconomic events, our expectations regarding our share repurchase program, and positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 10/14
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uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including in our annual report on Form 10-K for the fiscal year ended December 31, 2024 and other filings and reports that we may file from time to time with the SEC, including our current report on Form 8-K furnishing our earnings press release for the fiscal quarter ended March 31, 2025 and our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2025. In particular, the following factors, among others, could cause our results to differ materially from those expressed or implied by such forward- looking statements: 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, product offerings, and services in general; our ability to increase our number of new customers and revenue generated from customers; our ability to realize some or all of the total contract value of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; our long and unpredictable sales cycle; our ability to successfully execute our channel sales and other strategic initiatives with third parties; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the implementation process for our platforms, which may be complex and lengthy; our ability to successfully develop and deploy 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 11/14
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new technologies to address the needs of our existing or prospective customers; our ability to make our platforms and product offerings easier to install, consume, and use; our ability to maintain and enhance our brand and reputation; our ability to maintain and enhance our culture as our business grows and as we pursue our business and financial goals; news or social media coverage about us or our leadership, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; the impact of recent or future global macroeconomic and geopolitical events, such as the ongoing Russia-Ukraine, and Israel and broader Middle East conflicts, heightened interest rates, monetary policy changes, foreign currency fluctuations, or the imposition of tariffs or other impacts on trade relations on the business and operations of our company or of our existing or prospective customers and partners; issues raised by the use of artificial intelligence in our platforms; and any breach or access to our or customer or third-party data. The forward-looking statements included in this letter represent our views as of the date of this letter. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this letter. Past performance is not necessarily indicative of future results. Other Notes 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 12/14
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This letter may contain certain non-GAAP financial measures. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. Thus, these non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP. We compensate for these limitations by providing reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, which can be found in our investor presentation and/or earnings release, which are available on our investor relations website (investors.palantir.com). We encourage investors and others to review our business, results of operations, and financial information in its entirety, not to rely on any single financial measure, and to view these non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. This letter may contain statistical data, estimates, forecasts, and statements that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 13/14
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data after the date of this letter. This letter may refer to various growth rates when discussing our business. These rates reflect year-over-year comparisons unless otherwise stated. By receiving this letter, you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the information provided, including regarding the potential future performance of our business. 2025-09-25 16:11 Q1 2025 | Letter to the Shareholders https://www.palantir.com/q1-2025-letter/en/ 14/14