To The Moon

Michael Burry recently highlighted Palantir’s accounts receivable (AR) as a potential red flag. The concern is understandable — in many software or contracting businesses, rapidly rising receivables can signal aggressive revenue recognition or weakening cash conversion. However, a closer reading of Palantir’s latest 10-K suggests the situation is more nuanced than the headline implies. First, AR growth in FY2025 broadly tracked revenue growth. Receivables rose from about $575M to $1.04B (~+81%), while revenue increased from ~$2.4B to $4.5B (+86%). This kept days-sales-outstanding (DSO) roughly stable at ~85 days, slightly better than the prior year (~87 days). In other words, collections efficiency did not deteriorate. Second, credit quality indicators remain benign. The company reports it

$Palantir Technologies Inc.(PLTR)$  Michael Burry recently highlighted Palantir’s accounts receivable (AR) as a potential red flag. The concern is understandable — in many software or contracting businesses, rapidly rising receivables can signal aggressive revenue recognition or weakening cash conversion. However, a closer reading of Palantir’s latest 10-K suggests the situation is more nuanced than the headline implies. First, AR growth in FY2025 broadly tracked revenue growth. Receivables rose from about $575M to $1.04B (~+81%), while revenue increased from ~$2.4B to $4.5B (+86%). This kept days-sales-outstanding (DSO) roughly stable at ~85 days, slightly better than the prior year (~87 days). In other words, collections efficiency did not