Common-Size Income Statement
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- Income Statement
- Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Return on Assets (ROA) since 2020
- Price to Earnings (P/E) since 2020
- Analysis of Revenues
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Palantir Technologies Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals a significant improvement in profitability over the five-year period. Initially experiencing substantial losses, the company demonstrates a clear trajectory towards increasing revenue retention and operational efficiency. A notable shift occurs in operating performance, transitioning from significant losses to substantial income.
- Revenue and Cost of Revenue
- Revenue remains consistently at 100% throughout the period, as expected in a common-size analysis. Cost of revenue as a percentage of revenue demonstrates a decreasing trend, moving from -22.01% in 2021 to -17.63% in 2025. This suggests improved cost management or increased pricing power over time.
- Gross Profit
- Consequently, gross profit as a percentage of revenue increases steadily from 77.99% in 2021 to 82.37% in 2025. This positive trend indicates a growing ability to generate profit from core operations before considering operating expenses.
- Operating Expenses
- Operating expenses, encompassing sales and marketing, research and development, and general and administrative costs, exhibit a substantial decline as a percentage of revenue. In 2021, these expenses consumed -104.65% of revenue, indicating a loss. By 2025, this figure improved dramatically to -50.77%. Each component of operating expenses – sales and marketing, research and development, and general and administrative – all show decreasing percentages over the period, suggesting successful cost control initiatives.
- Operating Income
- The improvement in gross profit and the reduction in operating expenses combine to drive a significant turnaround in income from operations. Starting at -26.66% of revenue in 2021, it rises to 31.59% in 2025, demonstrating a substantial increase in core operational profitability.
- Non-Operating Items
- Interest income as a percentage of revenue increases from 0.10% to 6.87% before decreasing to 5.12% in 2025. Interest expense remains relatively stable. Other income (expense), net, fluctuates, but generally moves towards a smaller negative impact, becoming positive in 2025.
- Net Income
- Net income (loss) as a percentage of revenue mirrors the trend in income before taxes, moving from -33.75% in 2021 to 36.52% in 2025. This represents a substantial improvement in overall profitability. Net income attributable to noncontrolling interests is a small, but growing, negative percentage of revenue.
- Net Income Attributable to Common Stockholders
- Net income attributable to common stockholders follows a similar pattern to overall net income, increasing from -33.75% to 36.31% over the period. This indicates a significant increase in profitability for shareholders.
In summary, the common-size income statement illustrates a compelling narrative of operational improvement and increasing profitability. The company has demonstrably reduced its cost structure relative to revenue, leading to a substantial turnaround in both operating and net income.