Earnings release
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Exhibit 99.1 Palantir Reports Q1 2025 Revenue Growth of 39% Y/Y, U.S. Revenue Growth of 55% Y/Y; Raises FY 2025 Revenue Guidance to 36% Y/Y Growth and U.S. Comm Revenue Guidance to 68% Y/Y, Crushing Consensus Expectations 5/5/2025 DENVER — (BUSINESS WIRE) — Palantir Technologies Inc. (NASDAQ:PLTR) today announced financial results for the first quarter ended March 31, 2025. “Our Rule of 40 score increased to 83% in the last quarter, once again breaking the metric. We are in the middle of a tectonic shift in the adoption of our software, particularly in the U.S. where our revenue soared 55% year-over-year, while our U.S. commercial revenue expanded 71% year-over-year in the first quarter to surpass a one-billion-dollar annual run rate,” said Alexander C. Karp, co-founder and chief executive officer of Palantir Technologies. “We are delivering the operating system for the modern enterprise in the era of AI.Consequently, we are raising our full-year guidance for total revenue growth to 36% and our guidance for U.S. commercial revenue growth to 68%.” Q1 2025 Highlights • U.S. revenue grew 55% year-over-year and 13% quarter-over-quarter to $628 million ◦ U.S. commercial revenue grew 71% year-over-year and 19% quarter-over-quarter to $255 million ◦ U.S. government revenue grew 45% year-over-year and 9% quarter-over-quarter to $373 million • Revenue grew 39% year-over-year and 7% quarter-over-quarter to $884 million • Closed 139 deals of at least $1 million, 51 deals of at least $5 million, and 31 deals of at least $10 million • Booked our highest quarter of U.S. commercial total contract value (“TCV”) of $810 million, up 183% year-over-year • U.S. commercial remaining deal value (“RDV”) of $2.32 billion, up 127% year-over-year and 30% quarter-over-quarter • Customer count grew 39% year-over-year and 8% quarter-over-quarter • GAAP income from operations of $176 million, representing a 20% margin • Adjusted income from operations of $391 million, representing a 44% margin • Rule of 40 score of 83% • GAAP net income of $214 million, representing a 24% margin • Cash from operations of $310 million, representing a 35% margin • Adjusted free cash flow of $370 million, representing a 42% margin • GAAP earnings per share (“EPS”) of $0.08 • Adjusted EPS of $0.13 • Cash, cash equivalents, and short-term U.S. Treasury securities of $5.4 billion
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Q1 2025 Financial Summary (Unaudited) (Amounts in thousands, except percentages and per share amounts) First Quarter Amount Revenue $ 883,855 Year-over-year growth 39 % Amount Margin Income from Operations $ 176,048 20 % Adjusted Income from Operations $ 390,710 44 % Cash from Operations $ 310,263 35 % Adjusted Free Cash Flow $ 370,377 42 % Net Income Attributable to Common Stockholders $ 214,031 24 % Adjusted Net Income Attributable to Common Stockholders $ 334,405 Adjusted EBITDA $ 397,332 45 % GAAP EPS, Diluted $ 0.08 Adjusted EPS, Diluted $ 0.13 Outlook For Q2 2025, we expect: • Revenue of between $934 – $938 million. • Adjusted income from operations of between $401 – $405 million. For full year 2025: • We are raising our revenue guidance to between $3.890 – $3.902 billion. • We are raising our U.S. commercial revenue guidance to in excess of $1.178 billion, representing a growth rate of at least 68%. • We are raising our adjusted income from operations guidance to between $1.711 – $1.723 billion. • We are raising our adjusted free cash flow guidance to between $1.6 – $1.8 billion. • And we continue to expect GAAP operating income and net income in each quarter of this year. CEO Letter Palantir CEO Alex Karp’s quarterly letter is available through Palantir’s website at https://www.palantir.com/newsroom/letters. Earnings Webcast A live public webcast will be held at 3:00 PM MT / 5:00 PM ET today to discuss the results for our first quarter ended March 31, 2025 andfinancial outlook. The webcast can be accessed by registering online at https://palantir.events/palantirearnings-q12025. A replay of thewebcast will be available at https://investors.palantir.com following the event. An investor presentation, including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will be available through Palantir’s Investor Relations website at https://investors.palantir.com. Forward-Looking Statements This press release and statements on our earnings webcast contain “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 andmarketing 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,”
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“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 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 Quarterly Report on Form 10-Q for the quarter endedMarch 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 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 globalmacroeconomic 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 press release represent our views as of the date of this press release. 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 press release. Past performance is not necessarily indicative of future results. Additional Definitions For the purpose of this press release, our earnings webcast, and our CEO’s letter: • Total contract value (“TCV”) is the total potential lifetime value of contracts entered into with, or awarded by, our customers at the time of contract execution, annual contract value (“ACV”) is defined as the total value of contracts closed in the period divided by thedollar-weighted average contract duration of those same contracts, and remaining deal value (“RDV”) is the total remaining value ofcontracts as of the end of the reporting period. Except as noted below, TCV, ACV, and RDV each presume the exercise of all contractoptions available to our customers and no termination of contracts. However, the majority 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 beexercised. Further, RDV may exclude all or some portion of the value of certain commercial contracts as a result of our ongoingassessments of customers’ financial condition, including the consideration of such customers’ ability and intention to pay, and whethersuch contracts continue to meet the criteria for revenue recognition, among other factors. • Remaining performance obligations (“RPO”) reflect the total values of contracts that have been entered into with, or awarded by, ourcustomers, and represent non-cancelable contracted revenue that has not yet been recognized, which includes deferred revenue and, incertain instances, amounts that will be invoiced. We have elected the practical expedient, as permitted under Accounting Standards Codification 606—Revenue from Contracts with Customers, to not disclose remaining performance obligations for contracts withoriginal terms of twelve months or less. • The term “strategic commercial contracts” is as defined in our annual report on Form 10-K for the fiscal year ended December 31,2024. • “Dollar-weighted duration basis” is the total value of contracts closed in the applicable period, divided by the dollar-weighted averagecontract duration of those same contracts. • The term “Rule of 40” refers to the sum of our revenue growth rate year-over-year and our adjusted operating margin for each of theperiods presented.
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Non-GAAP Financial Measures This press release and the accompanying tables, as well as our earnings webcast, and our CEO’s letter, contain the non-GAAP financial measures adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes; adjusted operating margin; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”); adjusted EBITDA margin; adjusted net income attributable to common stockholders; and adjusted EPS, diluted. We believe these non-GAAP financial measures and other metrics described in this press release help us evaluate our business, identify trends affecting Palantir’s business, formulate business plans and financial projections, and make strategic decisions. We exclude stock- based compensation, which is a non-cash 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. We exclude employer payroll taxes related to stock-based compensation as it is difficult to predict and outside of Palantir’s control. 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 as they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. For example, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease in our cash balances for a given period. Thus, our 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 a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure. A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future, such as stock-based compensation and related employer payroll taxes, the effect of which may besignificant. Available Information Palantir uses its Investor Relations website at https://investors.palantir.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Palantir’s Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. About Palantir Technologies Inc. Foundational software of tomorrow. Delivered today. Additional information is available at https://www.palantir.com. Contacts Investor Relations investors@palantir.com Media media@palantir.com
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Palantir Technologies Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) Three Months Ended March 31, 2025 2024 Revenue $ 883,855 $ 634,338 Cost of revenue 172,970 116,256 Gross profit 710,885 518,082 Operating expenses: Sales and marketing 236,309 193,177 Research and development 134,889 110,040 General and administrative 163,639 133,984 Total operating expenses 534,837 437,201 Income from operations 176,048 80,881 Interest income 50,441 43,352 Other income (expense), net (3,173) (13,507) Income before provision for income taxes 223,316 110,726 Provision for income taxes 5,599 4,655 Net income 217,717 106,071 Less: Net income attributable to noncontrolling interests 3,686 541 Net income attributable to common stockholders $ 214,031 $ 105,530 Earnings per share attributable to common stockholders, basic $ 0.09 $ 0.05 Earnings per share attributable to common stockholders, diluted $ 0.08 $ 0.04 Weighted-average shares of common stock outstanding used in computing earnings per share attributableto common stockholders, basic 2,348,679 2,213,545 Weighted-average shares of common stock outstanding used in computing earnings per share attributableto common stockholders, diluted 2,552,818 2,400,107 ————— Includes stock-based compensation expense as follows (in thousands): Three Months Ended March 31, 2025 2024 Cost of revenue $ 15,016 $ 10,416 Sales and marketing 52,513 42,156 Research and development 31,834 26,874 General and administrative 55,976 46,205 Total stock-based compensation $ 155,339 $ 125,651 (1) (1) (1) (1) (1)
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Palantir Technologies Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) As of March 31, As of December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 993,464 $ 2,098,524 Marketable securities 4,437,225 3,131,463 Accounts receivable, net 725,205 575,048 Prepaid expenses and other current assets 126,705 129,254 Total current assets 6,282,599 5,934,289 Property and equipment, net 39,669 39,638 Operating lease right-of-use assets 209,348 200,740 Other assets 205,301 166,217 Total assets $ 6,736,917 $ 6,340,884 Liabilities and Equity Current liabilities: Accounts payable $ 2,330 $ 103 Accrued liabilities 371,061 427,046 Deferred revenue 318,556 259,624 Customer deposits 231,077 265,252 Operating lease liabilities 44,419 43,993 Total current liabilities 967,443 996,018 Deferred revenue, noncurrent 36,372 39,885 Customer deposits, noncurrent 1,463 1,663 Operating lease liabilities, noncurrent 200,177 195,226 Other noncurrent liabilities 12,489 13,685 Total liabilities 1,217,944 1,246,477 Palantir's stockholders’ equity: Common stock 2,360 2,339 Additional paid-in capital 10,398,181 10,193,970 Accumulated other comprehensive income (loss), net (2,994) (5,611) Accumulated deficit (4,973,392) (5,187,423) Total Palantir's stockholders’ equity 5,424,155 5,003,275 Noncontrolling interests 94,818 91,132 Total equity 5,518,973 5,094,407 Total liabilities and equity $ 6,736,917 $ 6,340,884
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Palantir Technologies Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2025 2024 Operating activities Net income $ 217,717 $ 106,071 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,622 8,438 Stock-based compensation 155,339 125,651 Unrealized and realized (gain) loss from marketable securities, net 10,688 12,354 Noncash consideration (17,313) (11,907) Other operating activities 3,531 5,592 Changes in operating assets and liabilities: Accounts receivable, net (134,959) (121,884) Prepaid expenses and other assets 40,730 22,924 Accounts payable and accrued liabilities 22,395 4,704 Contract liabilities 18,760 (6,849) Other liabilities (13,247) (15,515) Net cash provided by operating activities 310,263 129,579 Investing activities Purchases of property and equipment (6,184) (2,664) Purchases of marketable securities (1,704,720) (1,260,327) Proceeds from sales and redemption of marketable securities 350,627 751,746 Other investing activities (30,000) — Net cash used in investing activities (1,390,277) (511,245) Financing activities Proceeds from the exercise of common stock options 66,584 83,840 Repurchases of common stock (17,998) (9,000) Taxes paid related to net share settlement of equity awards (77,573) — Other financing activities 90 408 Net cash provided by (used in) financing activities (28,897) 75,248 Effect of foreign exchange on cash, cash equivalents, and restricted cash 3,980 (4,024) Net decrease in cash, cash equivalents, and restricted cash (1,104,931) (310,442) Cash, cash equivalents, and restricted cash - beginning of period 2,119,936 850,107 Cash, cash equivalents, and restricted cash - end of period $ 1,015,005 $ 539,665
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Palantir Technologies Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Non-GAAP Reconciliations Adjusted Income from Operations and Adjusted Operating Margin (in thousands, except percentages) Three Months Ended March 31, 2025 2024 Income from operations $ 176,048 $ 80,881 Add: stock-based compensation 155,339 125,651 Add: employer payroll taxes related to stock-based compensation 59,323 19,926 Adjusted income from operations $ 390,710 $ 226,458 Adjusted operating margin 44 % 36 % Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin (in thousands, except percentages) Three Months Ended March 31, 2025 2024 Net cash provided by operating activities $ 310,263 $ 129,579 Add: cash paid for employer payroll taxes related to stock-based compensation 66,298 21,719 Less: purchases of property and equipment (6,184) (2,664) Adjusted free cash flow $ 370,377 $ 148,634 Adjusted free cash flow margin 42 % 23 % Adjusted EBITDA and Adjusted EBITDA Margin (in thousands, except percentages) Three Months Ended March 31, 2025 2024 Net income attributable to common stockholders $ 214,031 $ 105,530 Add: net income attributable to noncontrolling interests 3,686 541 Less: interest income (50,441) (43,352) Add: other (income) expense, net 3,173 13,507 Add: provision for income taxes 5,599 4,655 Add: depreciation and amortization 6,622 8,438 Add: stock-based compensation 155,339 125,651 Add: employer payroll taxes related to stock-based compensation 59,323 19,926 Adjusted EBITDA $ 397,332 $ 234,896 Adjusted EBITDA margin 45 % 37 %
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Palantir Technologies Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Adjusted Net Income Attributable to Common Stockholders and Adjusted Earnings Per Share, Diluted (in thousands, except per share amounts and percentages) Three Months Ended March 31, 2025 2024 Net income attributable to common stockholders $ 214,031 $ 105,530 Add: stock-based compensation 155,339 125,651 Add: employer payroll taxes related to stock-based compensation 59,323 19,926 Less: income tax effects and adjustments (94,288) (54,170) Adjusted net income attributable to common stockholders $ 334,405 $ 196,937 Weighted-average shares used in computing adjusted earnings per share, diluted 2,552,818 2,400,107 Adjusted earnings per share, diluted $ 0.13 $ 0.08 ———— Income tax effect is based on an estimated long-term annual effective tax rate of 23.0% for each of the periods presented. (1) (1)