Palantir Technologies Inc. (NASDAQ:PLTR)

Gross Profit Margin

The gross profit margin demonstrated a consistent upward trend throughout the observed period. Starting at approximately 78.16% in March 2022, the margin gradually increased, reaching a peak of around 81.39% by June 2024. Toward the end of the timeframe, values stabilized slightly above 80%, indicating improved cost control or pricing power over time.

Operating Profit Margin

The operating profit margin showed significant improvement across the quarters. Initially, the margin was negative at -20.43% in March 2022, progressively rising towards positive territory by September 2023 at 1.71%. From this point onward, the margin strengthened considerably, culminating at 21.81% by September 2025. This indicates enhanced operational efficiency and reduced operating costs relative to revenue.

Net Profit Margin

The net profit margin mirrored the operating margin's trend, starting with a substantial deficit of -30.25% in March 2022. Improvements became apparent over subsequent quarters, with the margin turning positive at 6.93% by September 2023. The margin continued to rise steadily, reaching a robust 28.11% by September 2025, reflecting higher overall profitability after accounting for all expenses, taxes, and other income or losses.

Return on Equity (ROE)

Return on equity displayed a marked recovery from negative levels. Beginning at -21.07% in March 2022, it declined further before improving to a positive 4.62% by September 2023. Following this reversal, ROE maintained an upward trajectory, achieving 16.62% by September 2025, evidencing more effective utilization of shareholder equity to generate earnings.

Return on Assets (ROA)

Return on assets followed a pattern similar to ROE, starting with negative results of -15.01% in March 2022. The metric improved steadily, crossing into positive territory at 3.51% by September 2023. Subsequently, ROA continued increasing, reaching 13.5% by September 2025, which suggests better asset efficiency in generating profits.

Overall Observations

All key profitability margins and returns showed consistent and substantial improvement over the timeframe. Gross profit margin increased smoothly, indicating stable cost control. Both operating and net profit margins transitioned from considerable losses to strong profitability. Returns on equity and assets improved from significant negative values to healthy positive returns, highlighting enhanced operational effectiveness and financial performance.

The financial data reveals a consistent upward trajectory in both revenue and gross profit for the company over the observed periods. Revenue has steadily increased quarter over quarter, beginning from approximately $446 million in early 2022 and reaching over $1.18 billion by the third quarter of 2025. This steady growth suggests a strong expansion in sales or service delivery capabilities.

Gross profit follows a similar ascending pattern, rising from around $352 million to nearly $974 million over the same timeframe. This increase in gross profit, in conjunction with the revenue growth, indicates effective management of direct costs and successful scaling of operations.

The gross profit margin percentage notably improves throughout the period, starting at about 78.16% and advancing to over 80.8%. This enhancement in gross margin suggests that the company is either achieving greater operational efficiencies, benefiting from economies of scale, or possibly experiencing improved pricing power. The margin increase also signifies that the cost of goods sold has not escalated at the same pace as revenue, reflecting positively on cost control measures.

Overall, the data highlights robust financial health with continuous growth in top-line revenue and bottom-line gross profit, accompanied by improving profitability margins. This trend of increasing gross profit margin alongside rising revenues is indicative of strengthening competitive positioning and operational effectiveness within the company’s business model.

Revenue Trends

Revenue has demonstrated consistent quarterly growth over the observed period. Beginning at approximately $446 million in the first quarter of 2022, the revenue increased steadily each quarter, reaching over $1.18 billion by the third quarter of 2025. This represents a substantial expansion in the company's top-line performance, highlighting a positive and sustained upward trajectory.

Income (Loss) from Operations

The income from operations transitioned notably throughout the period. Initially, the company experienced operational losses, with the largest loss being approximately $62 million in the third quarter of 2022. However, from the first quarter of 2023 onwards, operating income turned positive and showed a strong upward trend. By the third quarter of 2025, income from operations reached around $393 million, indicating significant improvement and operational profitability enhancement.

Operating Profit Margin

The operating profit margin mirrored the changes seen in operating income. Starting negative at over -20% in early 2022, the margin improved consistently quarter over quarter. It crossed into positive territory by the third quarter of 2023 and continued to improve, reaching an impressive level of nearly 22% by the third quarter of 2025. This indicates increasing efficiency and effective cost management alongside revenue growth.

Overall Insights

The financial data illustrates a company transitioning from operation losses to strong profitability, supported by robust revenue growth. The steady improvement in operating profit margins suggests effective scaling benefits and cost optimization. The consistent upward trends in both revenue and operational income imply a solid operational foundation and expanding market presence.

The company's financial data over the observed quarters reflect significant improvements in profitability and revenue generation, indicating a positive trend in operational performance and financial health.

Net Income (Loss) Attributable to Common Stockholders

Initially, the company recorded substantial net losses, with a peak loss of approximately $179 million in the second quarter of 2022. However, from the fourth quarter of 2022 onwards, net income turned positive and exhibited a steady upward trajectory. This improvement culminated in a notable net income of nearly $476 million by the third quarter of 2025, demonstrating enhanced profitability and effective cost management over time.

Revenue

Revenue showed consistent growth across the entire period, starting from $446 million in the first quarter of 2022 and rising steadily to over $1.18 billion by the third quarter of 2025. This sustained upward trend underscores successful market expansion or increased sales volume, contributing to the company’s expanding top line.

Net Profit Margin

The net profit margin followed a marked transition from negative to positive territory throughout the period. Initially deeply negative, with margins exceeding -30%, the margin improved consistently, crossing into positive figures by the third quarter of 2022. From there, the margin increased progressively, reaching over 28% by the third quarter of 2025. This progression indicates enhanced operational efficiency, effective cost control, and profitable scaling of the business.

Overall, the data indicate that the company has overcome early financial challenges, achieving significant revenue growth coupled with a strong turnaround in profitability. The improvement in net profit margin suggests that the company is not only growing top-line revenue but is also increasingly successful in converting sales into earnings.

The quarterly financial analysis reveals significant improvement in profitability and overall equity strength over the observed periods.

Net Income (Loss) Attributable to Common Stockholders

The company experienced initial losses in early 2022, with net losses deepening from approximately -101 million USD in Q1 to -179 million USD in Q2, before slightly improving in Q3. A positive turnaround is observed starting from Q4 2022, where net income becomes positive and generally increases each quarter through to Q3 2025. The net income shows a consistent upward trajectory with marked growth, reaching over 475 million USD by Q3 2025.

Total Stockholders’ Equity

Stockholders' equity shows steady growth throughout the entire period. Starting around 2.36 billion USD in Q1 2022, equity increases every quarter without any decline, reaching approximately 6.59 billion USD by Q3 2025. This consistent rise indicates strengthening capital base and potential reinvestment of earnings or capital inflows.

Return on Equity (ROE)

ROE reflects the company’s improving profitability relative to equity. Initially, ROE is negative throughout the first three quarters of 2022, dropping to a low of approximately -23.5%. However, starting from Q4 2022, ROE moves from negative to positive territory, improving quarter over quarter. By Q3 2025, ROE achieves a high of 16.62%, indicating enhanced efficiency in generating earnings from equity investment.

Overall, the financial data demonstrates a transition from significant losses and negative returns on equity to sustained profitability and increasing shareholder value, supported by steady growth in equity capital and improving returns.

The analysis of the quarterly financial data reveals several notable trends in the company's performance and financial position over the specified periods.

Net Income (Loss) Attributable to Common Stockholders

The net income figures demonstrate significant volatility initially, with losses observed in the early quarters, notably reaching a low point near the second quarter of 2022. Subsequently, from the last quarter of 2022 onward, the company transitioned to positive net income, showing a consistent upward trajectory. This positive trend continued strongly through all subsequent quarters up to the third quarter of 2025, indicating improved profitability and operational efficiency over time.

Total Assets

Total assets exhibit a steady and continuous increase throughout all the reporting periods. Beginning from approximately 3.3 billion US dollars, the asset base grew consistently, reaching over 8.1 billion US dollars by the third quarter of 2025. This persistent growth in assets suggests ongoing investment and expansion activities, potentially supporting enhanced business operations and future revenue generation.

Return on Assets (ROA)

The ROA metric displays a clear improvement trend over the analyzed quarters. Initially, the company experienced negative ROA values, reflecting the net losses and inefficient asset utilization during the early period. However, starting from the third quarter of 2022, the ROA entered positive territory and continued to rise steadily. By the last quarter of 2025, the ROA reached 13.5%, indicating increasingly efficient use of assets to generate net income. This metric aligns with the growing profitability evidenced in the net income figures.

In summary, the company has demonstrated a marked recovery from earlier losses to sustained profitability, supported by a consistent increase in asset base and improved asset utilization efficiency as reflected in the ROA. These trends collectively indicate strengthening financial health and operational performance over the observed timeline.