Palantir Technologies Inc. (NASDAQ:PLTR)

Gross Profit Margin

The gross profit margin exhibits a clear upward trend starting from 77.99% in March 2022, gradually increasing to a peak of 81.39% by September 2024. This improvement indicates enhanced efficiency in production or favorable pricing strategies. The margin slightly declines towards the end of the period, stabilizing near 80% by March 2025, suggesting a strong and consistent ability to generate profit from revenue over the observed intervals.

Operating Profit Margin

The operating profit margin shows significant progress over the analyzed periods. Initially, the margin is deeply negative at -26.66% in March 2022, reflecting substantial operating losses. Over subsequent quarters, the margin steadily improves, crossing into positive territory in September 2023 at 1.71%. From that point, it continues to rise, reaching a high of 13.8% in December 2024, before a slight reduction to 13.02% in March 2025. This trend reflects effective cost management or revenue growth that offsets operating expenses.

Net Profit Margin

The net profit margin closely parallels the operating margin's trajectory but starts from an even more negative position of -33.75% in March 2022, indicating substantial overall losses when including non-operating costs and taxes. The margin shows a steady recovery, turning positive in September 2023 at 6.93%, and continuing to increase with some variability, peaking at 18.32% in March 2025. This rebound displays an overall improvement in profitability after all expenses.

Return on Equity (ROE)

Return on equity begins from a negative base of -22.71% in March 2022, suggesting the company was generating negative returns for shareholders during this time. The metric improves steadily over the quarters, crossing into positive territory around September 2023 with 4.62%, and rising to 10.59% by December 2024. Although the value slightly fluctuates towards the end, settling at 10.52% by March 2025, the trend indicates growing profitability in relation to shareholder equity held.

Return on Assets (ROA)

Return on assets mirrors ROE in its starting point and progression, beginning at -16.02% in March 2022 and gradually moving upward to 3.51% in September 2023. It continues a positive climb, reaching 8.26% in December 2024. Despite minor dips, it maintains a healthy level near 8.47% by March 2025. This indicates increasingly efficient use of assets to generate net income over time.

Revenue Trend

The revenue exhibits a consistent upward trajectory from March 31, 2021, through March 31, 2025. Starting at approximately $341 million, revenue gradually increases each quarter, reaching about $884 million by the end of the observed period. This progression indicates sustained growth in the company's sales or service income over these four years.

Gross Profit Trend

Gross profit mirrors the upward trend seen in revenue, growing from roughly $267 million at the beginning of the timeline to approximately $711 million by March 31, 2025. The steady increase in gross profit further underscores strengthening core operational profitability alongside revenue growth.

Gross Profit Margin Trend

Gross profit margin percentages, available from the quarter ending March 31, 2022, onwards, demonstrate an improving margin profile. Margins rise from about 78% and consistently increase, peaking above 81% during 2023 and early 2024. Although a slight decline is observed in late 2024 and into early 2025, the margin remains above 80%. This improvement suggests enhanced efficiency or a favorable product/service mix leading to higher profitability per unit of revenue.

Overall Financial Performance Insights

The data reveals that the company has experienced robust growth in revenue and gross profit over the observed quarters, with gross profit margin improvements indicating operational gains. The combination of revenue growth and expanding margins points to solid underlying business performance and effective management of cost structures during this period.

Revenue Trends

Revenue has shown a consistent upward trajectory from March 31, 2021, through March 31, 2025. Starting at approximately $341 million, revenue increased steadily each quarter, reaching an estimated $884 million by the end of the observed period. This growth indicates a strong and expanding top line, with no quarters showing a decline in revenue.

Income (Loss) from Operations

The income from operations initially reflected significant losses, beginning with a loss of approximately $114 million as of March 31, 2021. Losses deepened to a peak negative value around mid-2021, then progressively decreased over time. By late 2022, the company began to report positive operating income, with a notable increase in profitability into 2023 and early 2024. There was a slight dip in the last quarters of 2024, but a substantial recovery and improvement in operating income occurred by March 31, 2025, reaching approximately $176 million. This trend demonstrates a turnaround from sustained operational losses to consistent profitability.

Operating Profit Margin

Operating profit margin data, available from September 30, 2021 onward, shows a marked improvement. Margins commenced at a negative rate close to -27%, indicating operational inefficiency during the earlier period. This deficit narrowed steadily, crossing into positive territory around mid-2023 and growing to double-digit percentages in 2024. Margins peaked at approximately 14% in late 2024 before a slight decrease followed by another rise near the end of the period, suggesting improved operational leverage and cost management aligned with revenue growth.

General Analysis

The financial data presents a company in transition from a loss-making phase to robust profitability, driven by strong revenue growth and expanding operating margins. The reduction in operating losses and eventual achievement of positive operating income reveals improved efficiency and business scalability. The increasing profit margins imply successful control over operational expenses relative to revenue gains. Such trends are indicative of growing market strength and potentially enhanced competitive positioning.

Revenue Trends

The revenue of the company shows a consistent upward trend over the entire period analyzed. Starting from approximately $341 million in the first quarter of 2021, revenue increased steadily each quarter, reaching over $883 million by the first quarter of 2025. The growth rate appears stable, with no notable periods of revenue decline. This indicates continuous business expansion and increasing sales over time.

Net Income (Loss) Attributable to Common Stockholders

Net income figures exhibit significant volatility throughout the period. During the initial quarters from 2021 to 2022, the company consistently reported net losses, with the lowest loss recorded in mid-2022 at approximately -$179 million. Starting from late 2022, a marked improvement occurs, transitioning from losses to positive net income. Notably, by December 2022, net income turned positive and generally increased through 2024, peaking at around $143 million in the third quarter of 2024. There is a slight decline in net income in the last quarters, but by early 2025 net income recovers sharply to its highest level observed at $214 million. This shift reflects a significant turnaround in profitability.

Net Profit Margin

The net profit margin data, available starting from the fourth quarter of 2021, mirrors the net income trend with initial substantial negative margins, indicating considerable losses relative to revenue. Margins ranged from approximately -34% to -19% during 2021 and 2022, demonstrating inefficient profitability or high costs relative to revenue. From early 2023 onwards, the margin improved continuously, becoming positive by the first quarter of 2023 and reaching up to 18.32% by the first quarter of 2025. This positive margin indicates that the company has moved into a profitable state, with an improving ability to convert revenue into net income effectively.

Summary of Financial Performance Patterns

The overall financial performance denotes a company in transition. Revenue growth is stable and robust, indicating solid business performance or market demand. Meanwhile, profitability measures reveal initial challenges with losses and negative margins, followed by a significant improvement and eventual sustained profitability. This pattern suggests that operational efficiencies, cost management, or business model adjustments have positively affected the bottom line over the analyzed quarters. The improving profit margins confirm that the company is managing costs relative to revenues more effectively as time progresses.

The financial data over the reported periods reveals a notable transformation in the company's profitability and equity position. Initially, the company experienced consistent net losses, with the worst loss recorded in the second quarter of 2022. However, from the fourth quarter of 2022 onward, there is a decisive shift as net income turns positive and continues to increase steadily through to the first quarter of 2025, where it peaks at a substantial positive value.

Simultaneously, the stockholders' equity shows a steady and robust upward trend throughout the entire timeline. Beginning at approximately 1.8 billion US dollars, the equity base nearly triples by the first quarter of 2025. This growth in equity suggests ongoing capital retention and reinvestment, contributing to strengthening the company's financial foundation.

The Return on Equity (ROE) metric follows a trajectory consistent with the changes in net income. The company faced negative ROE in the earlier periods, reflecting the losses and a lack of profitability relative to equity. The lowest ROE values occur around 2021 and early 2022. Starting from the fourth quarter of 2022, the ROE steadily turns positive and increases quarter over quarter, reaching over 10% by the end of the observation period. This improvement demonstrates a transition towards effective utilization of equity to generate earnings.

Net Income (Loss)

Persistent losses were observed until late 2022, with variability in the magnitude. A significant positive turnaround occurred in the fourth quarter of 2022, followed by consistent income growth, indicating successful operational or strategic changes.

Total Stockholders’ Equity

A continuous and solid increase was recorded, indicating accumulation of retained earnings and/or additional equity investments. The growth pace suggests ongoing financial strengthening and possibly improved investor confidence.

Return on Equity (ROE)

The ROE was negative during the periods of losses but improved steadily after profitability resumed. The progression to double-digit positive ROE levels by 2024–2025 reflects enhanced efficiency in generating returns on shareholders' investments.

Overall, the data demonstrates that the company has moved from a loss-making phase into a sustained profitability phase while simultaneously consolidating and expanding its equity base. The upward trajectory in ROE confirms improved financial performance and operational effectiveness. This progression indicates a positive trend in financial health and shareholder value creation over the assessed quarters.

Net Income (Loss) Attributable to Common Stockholders

The net income figures display significant volatility over the periods analyzed. Initially, from March 2021 through September 2022, the company experienced consistent net losses, ranging from approximately -$101 million to nearly -$179 million. Starting in December 2022, there is a clear positive reversal, with net income turning positive at about $30.9 million. This positive trend strengthens through 2023 and into 2024, with net income steadily increasing from $16.8 million in March 2023 to a peak of $143.5 million in September 2024. There is a notable decrease in December 2024, falling to $79.0 million, before recovering significantly to $214.0 million by March 2025. Overall, the data reveals a strong recovery from persistent losses, culminating in sizable profitability towards the latest period.

Total Assets

Total assets show a persistent growth trend over the entire period. Starting at approximately $3.0 billion in March 2021, the assets increased steadily each quarter, reaching around $6.7 billion by March 2025. The growth appears consistent without major fluctuations, indicating ongoing asset accumulation or investment over these years.

Return on Assets (ROA)

The ROA metric exhibits a marked improvement trend, corresponding with the changes observed in net income. Initially, data are missing or unavailable for the first few quarters. Starting from December 2021, the ROA is deeply negative, reflecting losses, with values from -16.02% to -16.9%. This negative performance continues but moves toward less severe losses, improving to -10.8% and then to -6.94% by mid-2022. The downward trend in negativity further softens, reaching -1.21% by September 2022. Notably, ROA crosses into positive territory in December 2022 at 3.51% and progressively increases to 8.47% by March 2025. This upward trend suggests improving profitability relative to the asset base and efficient asset utilization over time.

Summary and Insights

The analyzed data reveals a clear financial turnaround characterized by a transition from sustained net losses and negative returns on assets to a profitable and efficient operational phase. The steady growth in total assets suggests an expanding business scale or increasing investment capacity. Meanwhile, the transition from negative to positive net income and ROA indicates enhanced operational performance and possibly improved cost management or revenue growth. Despite some fluctuation near the end of the dataset, the overall pattern is one of recovery and strengthening profitability, signaling positive momentum in financial health.