Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Palantir Technologies Inc., consolidated income statement
US$ in thousands
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 income statement reveals a significant transformation in financial performance over the five-year period. Initially, the company experienced net losses, but transitioned to profitability and substantial growth in later years. Revenue demonstrates a consistent upward trajectory, accelerating significantly from 2023 onwards. While costs generally increased alongside revenue, the rate of cost growth was not always commensurate, contributing to improved profitability.
- Revenue Growth
- Revenue increased from US$1.54 billion in 2021 to US$4.48 billion in 2025, representing a substantial compound annual growth rate. The growth rate accelerated markedly between 2023 and 2025, indicating increasing market penetration or successful product/service expansion. Revenue growth in 2024 and 2025 was significantly higher than in the preceding years.
- Profitability Analysis
- The company initially reported losses from operations in 2021 and 2022, amounting to US$411.05 million and US$161.20 million respectively. However, income from operations turned positive in 2023, reaching US$119.97 million, and continued to grow substantially to US$1.41 billion in 2025. Net income followed a similar pattern, moving from a loss of US$520.38 million in 2021 to a profit of US$1.63 billion in 2025. This improvement is attributable to both revenue growth and better cost management.
- Cost of Revenue & Gross Margin
- Cost of revenue increased steadily throughout the period, from US$339.40 million in 2021 to US$789.18 million in 2025. However, the rate of increase in cost of revenue slowed relative to revenue growth, resulting in an improving gross margin. Gross profit increased from US$1.20 billion in 2021 to US$3.69 billion in 2025.
- Operating Expenses
- Operating expenses, encompassing sales and marketing, research and development, and general and administrative costs, consistently increased year-over-year. Sales and marketing expenses represent the largest component of operating expenses. While these expenses grew, the impact on overall profitability was mitigated by the faster growth in revenue. The increase in research and development spending suggests continued investment in innovation.
- Other Income and Expenses
- Interest income increased significantly over the period, contributing positively to income before taxes. Other income (expense), net, was negative in the earlier years but became positive in 2025. These fluctuations, while present, had a relatively smaller impact on the overall net income compared to revenue and cost trends.
- Net Income Attributable to Common Stockholders
- Net income attributable to common stockholders mirrored the overall net income trend, transitioning from a loss of US$520.38 million in 2021 to a profit of US$1.63 billion in 2025. The impact of net income attributable to noncontrolling interests remained relatively small, though consistently negative.
In summary, the financial performance demonstrates a clear turnaround and period of accelerated growth. The company successfully increased revenue, improved gross margins, and ultimately achieved substantial profitability. Continued monitoring of expense management and revenue growth rates will be crucial to sustaining this positive trend.
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