AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Integrated operational software, ongoing updates and customer training support switching friction, corroborated by expansion within existing customers. Replacement difficulty and comparative superiority remain unquantified, so the structural advantage is qualified.
durability · 2/4 · Gotham's decade-plus operating history and existing-customer expansion support persistence. Offered one-to-five-year terms provide limited protection because many contracts permit termination; neither customer tenure nor durable replacement barriers are established.
customer dependency · 3/4 · Existing government and commercial customers generated substantial additional revenue in 2025, generally attributed to broader adoption. Integration and training support meaningful embeddedness. This is indirect evidence of dependency, not proof that customers cannot replace the platforms.
erosion resilience · 2/4 · Strong revenue growth and improving operating results show current resilience. Bundled alternatives, third-party compatibility requirements and costly expansion efforts remain credible weaknesses; the passages do not demonstrate sustained resistance to specific competitive displacement attempts.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · The passages establish monetized demand and expansion, but generally attribute existing-customer growth to increased adoption. They disclose neither comparable-unit pricing outcomes nor realized concessions sufficient to assess price realization separately. Higher margins cannot resolve this gap.
retention · 3/4 · Substantial incremental revenue from existing government and commercial customers demonstrates repeat demand and expansion despite customer termination rights. Assessment is indirect: no renewal or churn rate is disclosed, and expansion may mask losses elsewhere.
margin resilience · 3/4 · GAAP gross margins were 81%, 80% and 82% in 2023–2025, and improved to 85% in the second quarter of 2026 from 81% a year earlier. GAAP operating income also increased substantially. These demonstrate margin resilience during expansion, while leaving price, mix and operating leverage effects unresolved.
contractual freedom · 1/4 · Actual terms materially constrain commercial freedom: many contracts permit convenience termination, some lack enforceable obligations beyond notice, government contracts provide specified price reduction rights, and exclusivity arrangements restrict some sales. These are disclosed constraints, not merely hypothetical competitive risks; unilateral repricing authority is not established.
Predictability78
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 14.97
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 13.29
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, interestCoverageGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- currentRatioGrade
- 100.00
- Current ratio (x)
- 7.11
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 4.72
- 3-year average SBC / revenue (%)
- 20.27
- cashConversionGrade
- 100.00
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Operating cash generation reached $2.1 billion in the first half of 2026, debt remained absent, and 2025 revenue grew much faster than operating expenses. Against this, first-half equity statements show $467.3 million of stock-based compensation and outstanding shares increasing from about 2.391 billion to 2.403 billion. The repurchase program ended in January 2026, and outstanding awards carry further expense. Actual outcomes support a mixed assessment rather than unqualified capital discipline.
incentive alignment · 2/4 · Actual executive SAR grants above the grant-date share price and disclosed stock-price-linked awards provide alignment with shareholder gains. Dilution and voting rights that can preserve substantial influence at a relatively low ownership threshold weaken that alignment. Complete executive economic ownership and links to durable per-share operating value are not established.
execution · 3/4 · 2025 revenue grew 56% with substantial existing-customer expansion; first-half 2026 revenue grew 89%, operating income increased and operating cash generation strengthened. The absence of historical warranty claims provides limited additional support. Execution is assessed from reported operating outcomes, not CEO reputation or a demonstrated causal attribution to individual managers.
governance · 1/4 · The current multiple-class structure concentrates voting influence and materially restricts outside shareholders' ability to influence important transactions. An independent Audit Committee and related-party review procedures provide safeguards but do not remove this structural weakness. Potential future controlled-company status is not treated as a current exemption.
Evidence
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.
MD&A—platform overview; Gotham integration · Filed 04/08/2026
Apollo, which we began offering as a commercial solution in 2021, is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems.
MD&A—platform overview; Apollo operational role · Filed 04/08/2026
Our customers typically need training in the proper use of and the variety of benefits that can be derived from our platforms to maximize the potential of our platforms.
Risk Factors—customer training requirements · Filed 04/08/2026
Of the increase, $774.0 million was from government customers existing as of December 31, 2024.
MD&A—2025 revenue growth from existing government customers · Filed 17/02/2026
Of the increase, $425.2 million was from commercial customers existing as of December 31, 2024, including a decrease of $37.0 million of revenue from Strategic Commercial Contracts.
MD&A—2025 revenue growth from existing commercial customers · Filed 17/02/2026
Generally, increases in revenue from our existing customers are related to the increased adoption of our products and services within their organizations.
MD&A—attribution of existing-customer revenue growth · Filed 17/02/2026
For over a decade, Gotham has surfaced insights for global defense agencies, the intelligence community, disaster relief organizations and beyond.
MD&A—Gotham operating history · Filed 04/08/2026
In addition, some of our larger competitors have substantially broader and more diverse product and service offerings and may be able to leverage their relationships with distribution partners and customers based on other products or incorporate functionality into existing products to gain business in a manner that discourages customers from purchasing our platforms, including by selling at zero or negative margins, product bundling, or offering closed technology platforms.
Risk Factors—larger competitors' bundling and subsidized offerings · Filed 04/08/2026
The competitive position of our platforms depends in part on their ability to operate with third-party products and services, and if we are not successful in maintaining and expanding the compatibility of our platforms with such third-party products and services, our business, financial condition, and results of operations could be adversely impacted.
Risk Factors—third-party compatibility dependence · Filed 04/08/2026
Many of our contracts, including our government contracts, contain termination for convenience provisions.
Risk Factors—termination for convenience · Filed 04/08/2026
Achieving renewal or expansion of deployments may require us to increasingly engage in sophisticated and costly sales efforts that may not result in additional sales.
Risk Factors—cost of renewal and deployment expansion efforts · Filed 17/02/2026
We historically have not realized all of the revenue from the full deal value of our customer contracts, and we may not do so in the future.
Risk Factors—historical failure to realize full contractual deal value · Filed 17/02/2026
Results of Operations The following table summarizes our consolidated statements of operations data (in thousands): Years Ended December 31, 2025 2024 2023 Revenue $ 4,475,446 $ 2,865,507 $ 2,225,012 Cost of revenue 789,177 565,990 431,105 Gross profit 3,686,269 2,299,517 1,793,907 Operating expenses: Sales and marketing 1,056,859 887,755 744,992 Research and development 557,677 507,878 404,624 General and administrative 657,718 593,481 524,325 Total operating expenses 2,272,254 1,989,114 1,673,941 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) Income before provision for income taxes 1,657,368 489,173 237,091 Provision for income taxes 22,724 21,255 19,716 Net income 1,634,644 467,918 217,375 Less: Net income attributable to noncontrolling interests 9,611 5,728 7,550 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: Years Ended December 31, 2025 2024 2023 Revenue 100 % 100 % 100 % Cost of revenue 18 20 19 Gross margin 82 80 81 Operating expenses: Sales and marketing 23 31 34 Research and development 12 18 18 General and administrative 15 20 24 Total operating expenses 50 69 76 Income from operations 32 11 5 Interest income 5 7 6 Other income (expense), net — (1) — Income before provision for income taxes 37 17 11 Provision for income taxes 1 1 1 Net income 36 16 10 Less: Net income attributable to noncontrolling interests — — 1 Net income attributable to common stockholders 36 % 16 % 9 % 74 Table of Contents Comparison of the Years Ended December 31, 2025 and 2024 Revenue Years Ended December 31, Change 2025 2024 Amount % Revenue: Government $ 2,402,287 $ 1,569,605 $ 832,682 53 % Commercial 2,073,159 1,295,902 777,257 60 % Total revenue $ 4,475,446 $ 2,865,507 $ 1,609,939 56 % Revenue increased by $1.6 billion, or 56%, for the year ended December 31, 2025 compared to 2024.
MD&A—2023–2025 GAAP operating results and expenses · Filed 17/02/2026
For the six months ended June 30, 2026, we generated $3.6 billion in revenue, reflecting a 89% growth rate from the six months ended June 30, 2025 when we generated $1.9 billion in revenue.
MD&A—first-half 2026 revenue and growth · Filed 04/08/2026
In the six months ended June 30, 2026 and 2025, we generated income from operations of $1.7 billion and $0.4 billion, respectively, or adjusted income from operations of $2.2 billion and $0.9 billion, respectively, when excluding stock-based compensation and related employer payroll taxes.
MD&A—first-half 2026 and 2025 operating income · Filed 04/08/2026
In the three months ended June 30, 2026 and 2025, our gross profit was $1.6 billion and $0.8 billion, respectively, reflecting a gross margin of 85% and 81%, respectively, or 86% and 82%, respectively, when excluding stock-based compensation.
MD&A—second-quarter 2026 and 2025 GAAP gross margins · Filed 04/08/2026
Net cash provided by operating activities was $2.1 billion and $0.8 billion for the six months ended June 30, 2026 and 2025, respectively.
MD&A—first-half operating cash generation · Filed 04/08/2026
As of June 30, 2026, we had no outstanding debt balances and additional available and undrawn revolving commitments of $500 million under our credit facility.
Liquidity and Capital Resources—debt and undrawn facility · Filed 04/08/2026
Condensed Consolidated Statements of Equity (in thousands) (unaudited) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity Shares Amount Balance as of March 31, 2026 2,397,133 $ 2,397 $ 11,138,528 $ 601 $ (2,691,863) $ 8,449,663 $ 106,618 $ 8,556,281 Issuance of common stock from the exercise of stock options 1,029 1 4,857 — — 4,858 — 4,858 Issuance of common stock upon release of restricted stock units (“RSUs”) and performance-based RSUs (“P-RSUs”) 4,735 5 (5) — — — — — Stock-based compensation — — 265,487 — — 265,487 — 265,487 Other comprehensive loss — — — (7,704) — (7,704) — (7,704) Net income — — — — 1,061,890 1,061,890 4,072 1,065,962 Balance as of June 30, 2026 2,402,897 $ 2,403 $ 11,408,867 $ (7,103) $ (1,629,973) $ 9,774,194 $ 110,690 $ 9,884,884 Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net Accumulated Deficit Total Palantir’s Stockholders’ Equity Noncontrolling Interests Total Equity Shares Amount Balance as of December 31, 2025 2,391,192 $ 2,391 $ 10,933,325 $ 13,942 $ (3,562,390) $ 7,387,268 $ 100,743 $ 7,488,011 Issuance of common stock from the exercise of stock options 2,067 2 9,755 — — 9,757 — 9,757 Issuance of common stock upon release of RSUs and P-RSUs 9,646 10 (10) — — — — — Repurchases of common stock (8) — (1,500) — — (1,500) — (1,500) Stock-based compensation — — 467,297 — — 467,297 — 467,297 Other comprehensive loss — — — (21,045) — (21,045) — (21,045) Net income — — — — 1,932,417 1,932,417 9,947 1,942,364 Balance as of June 30, 2026 2,402,897 $ 2,403 $ 11,408,867 $ (7,103) $ (1,629,973) $ 9,774,194 $ 110,690 $ 9,884,884 The accompanying notes are an integral part of these condensed consolidated financial statements.
Unaudited condensed consolidated statements of equity—compensation, issuance and repurchases · Filed 04/08/2026
While we generally offer contract terms of one to five years in length, our customers sometimes enter into shorter-term contracts.
MD&A—offered contract durations · Filed 04/08/2026
In these arrangements, the Company concluded there are no enforceable rights and obligations after such notice period and therefore the consideration received or due from the customer that is subject to termination for convenience is recorded as customer deposits.
Revenue recognition policy—absence of enforceable obligations beyond termination notice · Filed 17/02/2026
•for contracts subject to the Truth in Negotiations Act, reduce the contract price or cost where it was increased because a contractor or subcontractor furnished cost or pricing data during negotiations that was not complete, accurate, and current;
Risk Factors—government contractual price reduction rights · Filed 04/08/2026
These exclusivity provisions limit our ability to license our platforms and provide services to specific customers, or to compete in certain geographic markets or industries, which may limit our growth and negatively impact our results.
Risk Factors—existing exclusivity restrictions on sales · Filed 04/08/2026
The SARs granted to Messrs. Glazer and Taylor in April 2025 were granted with a per share exercise price of $150 per share, which price was significantly higher than our stock price on the awards’ grant date.
Executive compensation—SARs granted in April 2025 · Filed 24/04/2026
Tabular List of Financial Performance Measures The financial performance measure used in 2025 to link CAP to performance is our stock price, based on its impact on the value of equity-based awards granted prior to 2025, including awards granted as out-of-the-money options in 2020, which remained outstanding during part or all of 2025.
Pay versus performance—stock-price linkage of executive awards · Filed 24/04/2026
The Class F common stock generally gives the Founders the ability to control up to 49.999999% of the total voting power of the Company’s capital stock, so long as the Founders and certain of their affiliates collectively meet a minimum ownership threshold, which was 100 million of the Company's equity securities as of June 30, 2026.
Stockholders' equity—Class F voting rights and ownership threshold · Filed 04/08/2026
Risks Related to the Multiple Class Structure of our Common Stock, the Founder Voting Trust Agreement, and the Founder Voting Agreement The multiple class structure of our common stock has the effect of concentrating voting power with certain stockholders, in particular, our Founders and their affiliates, which will effectively eliminate your ability to influence the outcome of important transactions, including a change in control.
Risk Factors—current effects of multiple-class voting structure · Filed 04/08/2026
The Audit Committee is a committee of the Board of Directors composed solely of independent directors as required by Nasdaq listing rules and the rules and regulations of the SEC.
Audit committee report—independent committee composition · Filed 24/04/2026
In determining whether to approve, ratify, or disapprove any such transaction, our Audit Committee will consider, among other factors, whether the related person transaction would affect the independence of any director and is on terms that reflect an arms-length transaction – in other words, terms that are no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances, as well as the extent of the related person’s interest in the transaction.
Related person transactions—Audit Committee review criteria · Filed 24/04/2026
Due to the absence of historical warranty claims, the Company’s expectations of future claims related to products under warranty continue to be insignificant.
Commitments and contingencies—absence of historical warranty claims · Filed 04/08/2026
The Share Repurchase Program was terminated in January 2026.
Issuer purchases—January 2026 termination of repurchase program · Filed 17/02/2026
Stock-Based Compensation Stock Options and SARs The following table summarizes stock option and SAR activity for the six months ended June 30, 2026 (in thousands, except per share amounts, years, and aggregate intrinsic value): Options Outstanding SARs Outstanding Number of Awards Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value (millions) Number of Awards Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value (millions) Balance as of December 31, 2025 152,202 $ 9.98 6.1 $ 25,536 11,271 $ 130.00 7.1 $ 794 Granted — — 2,889 143.59 Exercised (2,067) 4.72 — — Canceled and forfeited (458) 6.22 (489) 165.15 Balance as of June 30, 2026 149,677 $ 10.06 5.7 $ 15,957 13,671 $ 131.61 11.1 $ 377 Vested and exercisable as of June 30, 2026 79,177 $ 8.89 5.3 $ 8,534 1,772 $ 113.27 40.0 $ 6 As of June 30, 2026, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $361 million, and $136 million, respectively, which is expected to be recognized over a weighted-average service period of five and eight years, respectively.
Stock-based compensation—outstanding awards and future expense · Filed 04/08/2026
