To The Moon

**Bullish Points:**

1. Palantir Technologies Inc. achieved a significant revenue growth of 56% year-over-year, reaching $4.5 billion for the fiscal year ended December 31, 2025.

2. Gross profit was $3.7 billion, with an improved gross margin of 82%, up from 80% in the previous year.

3. Income from operations reached $1.4 billion, or $2.3 billion when excluding stock-based compensation and related employer payroll taxes.

4. The average revenue from the top twenty customers increased substantially to $93.9 million, up from $64.6 million in the previous year.

5. Total remaining deal value of contracts surged by 105% to $11.2 billion, with commercial contracts increasing by 117% to $6.8 billion and government contracts rising by 90% to $4.4 billion.

6. Net income attributable to common stockholders increased significantly to $1.6 billion, compared to $462.2 million in 2024.

7. Interest income rose by $32.4 million due to higher interest-bearing cash, cash equivalents, and investments in short-term U.S. Treasury securities.

8. The company had no outstanding debt balances and additional available and undrawn revolving commitments of $500 million under its credit facility.

9. Palantir repurchased and retired 0.6 million shares of Class A common stock for $75 million under its Share Repurchase Program, signaling confidence in its financial position.

**Bearish Points:**

1. Operating expenses increased by $283.1 million (14%) year-over-year, driven by higher sales and marketing expenses ($169.1 million), research and development expenses ($49.8 million), and general and administrative expenses ($64.2 million).

2. Cost of revenue increased by $223.2 million (39%) due to higher expenses related to third-party cloud hosting services, subcontractor costs, field-service representatives, and payroll-related costs.

3. Stock-based compensation expenses, while slightly reduced by 1%, remain a significant factor in the company's financials.

4. Revenue concentration remains high, with 54% of revenue derived from government customers and 74% from U.S.-based customers, indicating potential risks related to dependency on specific customer segments and geographic regions.

**Summary:**

Palantir Technologies Inc. demonstrated strong financial performance in 2025, with substantial revenue growth, improved gross margins, and a significant increase in net income. The company's ability to secure large contracts, particularly in the commercial sector, and maintain a robust financial position with no debt are positive indicators for future growth. However, rising operating expenses and cost of revenue, along with dependency on government customers and U.S.-based revenue, pose potential risks that should be monitored. Overall, the financial report reflects a solid performance with opportunities for continued expansion, balanced by areas requiring strategic attention.

For more information, you can read the original text of Palantir Technologies Inc.'s financial report.