Stock Analysis on Net
Stock Analysis on Net

Palantir Technologies Inc. (NASDAQ:PLTR)

Common-Size Income Statement 

Palantir Technologies Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Revenue 100.00 100.00 100.00 100.00 100.00
Cost of revenue -17.63 -19.75 -19.38 -21.44 -22.01
Gross profit 82.37% 80.25% 80.62% 78.56% 77.99%
Sales and marketing -23.61 -30.98 -33.48 -36.86 -39.85
Research and development -12.46 -17.72 -18.19 -18.87 -25.13
General and administrative -14.70 -20.71 -23.57 -31.29 -39.66
Operating expenses -50.77% -69.42% -75.23% -87.02% -104.65%
Income (loss) from operations 31.59% 10.83% 5.39% -8.46% -26.66%
Interest income 5.12 6.87 5.96 1.07 0.10
Interest expense 0.00 0.00 -0.16 -0.21 -0.24
Other income (expense), net 0.32 -0.63 -0.54 -11.34 -4.89
Income (loss) before provision for income taxes 37.03% 17.07% 10.66% -18.94% -31.68%
Provision for income taxes -0.51 -0.74 -0.89 -0.53 -2.07
Net income (loss) 36.52% 16.33% 9.77% -19.47% -33.75%
Net income attributable to noncontrolling interests -0.21 -0.20 -0.34 -0.14 0.00
Net income (loss) attributable to common stockholders 36.31% 16.13% 9.43% -19.61% -33.75%

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.

AI Ask an analyst for more