Quarterly Report — Q3 2025
Filed November 4, 2025
Revenue surged in Q3 2025 with the company continuing its profitable streak, building on what has been a multi-quarter run of GAAP profitability since turning that corner in late 2023. The U.S. market dominates the revenue mix at roughly two-thirds or more of total sales, with both the Government and Commercial segments contributing, while stock-based compensation remains a significant ongoing expense line across the business. Palantir maintains a strong cash position anchored by money market funds and U.S. Treasury securities, with no debt drawn on its revolving credit facility — giving it financial flexibility as AI-driven demand accelerates.
Filing details
Performance by segment
Government
Government segment revenue was $632.7 million in Q3 2025, up 55% from $408.3 million in Q3 2024, with nine-month revenue reaching $1.67 billion, up 50% from $1.11 billion in the prior year period. Government contribution was $417.7 million at a 66% contribution margin in Q3 2025, up from $243.2 million at a 60% margin in Q3 2024; for the nine months, contribution was $1.07 billion at a 64% margin versus $674.0 million at 60%. Of the Q3 2025 year-over-year increase, $205.7 million came from government customers existing as of December 31, 2024, indicating strong expansion within the existing base. U.S. government revenue was $485.9 million in Q3 2025, up from $319.8 million in Q3 2024, and $1.3 billion for the nine months ended September 30, 2025 versus $854.5 million in the prior year period. Nine-month government segment expenses were $603.5 million, up from $440.5 million, reflecting increased investment in deployment and sales efforts to support expanding government customer relationships.
“We continue to believe that our government customers remain a meaningful source of revenue for our business, particularly during periods of economic uncertainty.”
Commercial
Commercial segment revenue was $548.4 million in Q3 2025, up 73% from $317.2 million in Q3 2024, with nine-month revenue of $1.40 billion, up 51% from $923.5 million in the prior year period. Commercial contribution was $360.4 million at a 66% contribution margin in Q3 2025, a significant improvement from $190.0 million at a 60% margin in Q3 2024; for the nine months, contribution was $889.1 million at 64% versus $550.2 million at 60%. Of the Q3 2025 year-over-year increase, $124.1 million came from commercial customers existing as of December 31, 2024, including a $6.7 million decrease from Strategic Commercial Contracts. U.S. commercial revenue was $396.7 million in Q3 2025, up 121% from $179.2 million in Q3 2024, and $958.6 million for the nine months versus $488.1 million, a 96% increase. Revenue from Strategic Commercial Contracts declined to $2.9 million in Q3 2025 from $9.6 million in Q3 2024, and to $13.2 million from $42.7 million for the nine-month periods, as the company's reliance on investment-linked commercial contracts continues to diminish. The company had 911 total customers as of September 30, 2025, up from 629 in the prior year period.
No developments were identified in this filing. It may contain financial results, routine disclosures, or operational updates that don't represent specific execution events.