PALANTIR TECHNOLOGIES INC.

Red flags

• Customer I represented 25% of accounts receivable at December 31, 2025, up from 26% a year earlier; accounts receivable increased to $1.0 billion from $0.6 billion, creating collection concentration even though no customer represented 10% of revenue.
• The $11.2 billion remaining deal value assumes all contractual options are exercised and no termination occurs, while many contracts permit termination for convenience; the $12.3 billion IDIQ balance is unfunded and excluded.
• Stock-based compensation was $684.0 million in 2025, plus $156.1 million of related employer payroll taxes. Adjusted operating income was $2.254 billion versus GAAP operating income of $1.414 billion, making SBC a material gap between headline and economic profitability.
• The company committed to spend at least $1.95 billion on one third-party cloud-services agreement through September 2033, creating a substantial long-term infrastructure obligation.
• Founders can control up to 49.999999% of total voting power through Class F shares, despite the Class F shares representing only 1,005 shares outstanding.
• Shares outstanding rose to 2.391 billion from 2.339 billion during 2025, while the $1.0 billion repurchase program was terminated in January 2026; future dilution and capital-allocation support should be monitored.