Palantir Technologies Inc.PLTR

Palantir Technologies Inc. Segments Disclosure

10-KFiled Feb 17, 20263 min read
Segment and Geographic Information
The following reporting segment tables reflect the results of the Company’s reportable operating segments consistent with the manner in which the CODM evaluates the performance of each segment and allocates the Company’s resources. The CODM does not evaluate the performance of the Company’s assets on a segment basis for internal management reporting and, therefore, such information is not presented.
Contribution is used, in part, to evaluate the performance of, and allocate resources to, each of the segments, primarily by monitoring actual results versus historical periods. A segment’s contribution is calculated as segment revenue less the related costs of revenue and sales and marketing expenses. It excludes certain operating expenses that are not allocated to segments because they are separately managed at the consolidated corporate level, or are noncash costs. These unallocated and noncash costs include stock-based compensation expense, research and development expenses, and general and administrative expenses.
Financial information for each reportable segment was as follows (in thousands, except percentages):
Years Ended December 31,
202520242023
Amount%Amount%Amount%
Contribution:
Government revenue$2,402,287 $1,569,605 $1,222,215 
Expenses attributable to government segment(826,217)(621,165)(497,245)
Government contribution1,576,070 66 %948,440 60 %724,970 59 %
Commercial revenue2,073,159 1,295,902 1,002,797 
Expenses attributable to commercial segment(706,532)(524,394)(482,212)
Commercial contribution1,366,627 66 %771,508 60 %520,585 52 %
Total contribution$2,942,697 66 %$1,719,948 60 %$1,245,555 56 %
The reconciliation of total contribution to income from operations is as follows (in thousands):
Years Ended December 31,
202520242023
Income from operations$1,414,015 $310,403 $119,966 
Research and development expenses (1)
420,838 342,813 306,560 
General and administrative expenses (1)
423,811 375,094 343,126 
Total stock-based compensation expense684,033 691,638 475,903 
Total contribution$2,942,697 $1,719,948 $1,245,555 
—————
(1) Excludes stock-based compensation expense.
Geographic Information
Revenue by geography is based on the customer’s headquarters or agency location at the time of sale. Revenue is as follows (in thousands, except percentages):
Years Ended December 31,
202520242023
Amount%Amount%Amount%
Revenue:
United States$3,320,043 74 %$1,900,247 66 %$1,378,247 62 %
United Kingdom427,398 10 %304,575 11 %235,257 11 %
Rest of world (1)
728,005 16 %660,685 23 %611,508 27 %
Total revenue$4,475,446 100 %$2,865,507 100 %$2,225,012 100 %
—————
(1) No other country represented 10% or more of total revenue for the years ended December 31, 2025, 2024, or 2023.
Property and equipment, net is attributed to the Company’s office locations as follows (in thousands, except percentages):
As of December 31,
20252024
Amount%Amount%
Property and equipment, net:
United States$38,102 73 %$22,968 58 %
Japan7,063 14 %9,183 23 %
United Kingdom5,027 10 %5,634 14 %
Rest of world1,768 3 %1,853 5 %
Total property and equipment, net$51,960 100 %$39,638 100 %

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 24, 2022
2020Feb 26, 2021

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew Standards