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
| 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 | |||||||
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 and financial outlook. The webcast can be accessed by registering online at https://palantir.events/palantirearnings-q12025. A replay of the webcast 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.