Capital · Position · Nasdaq, PLTR
Palantir.
One Of Five.
Palantir builds software platforms that integrate an organisation’s data and connect it to operational decisions. Its products are Gotham for defence and intelligence work, Foundry for commercial data operations, Apollo for software delivery, and AIP for applying large language models to that data.
One of five single company positions in the book, alongside XEQT. Palantir builds software platforms that integrate an organisation’s data and connect it to operational decisions. Its products are Gotham for defence and intelligence work, Foundry for commercial data operations, Apollo for software delivery, and AIP for applying large language models to that data. Held, not traded. Not advice.
What Palantir Is
The company itself, before anything about the book.
What It Does
Palantir builds software platforms that integrate an organisation’s data and connect it to operational decisions. Its products are Gotham for defence and intelligence work, Foundry for commercial data operations, Apollo for software delivery, and AIP for applying large language models to that data.
How It Makes Money
Palantir sells software subscriptions, hosting and deployment services under term contracts. It reports revenue across its Government and Commercial segments, and also splits results between United States and international customers.
Who Buys It
Defence, intelligence and civil government agencies, plus commercial firms in areas including manufacturing, healthcare, energy and financial services.
Listing
Nasdaq, PLTR
Where It Sits In The Book
One line of a published portfolio, not a pick.
The Sleeve
Stocks and ETFs are forty percent of the book. An all equity index fund does the market exposure and five single company positions sit on top of it.
The Job Of This Half
Software that is hard to remove once installed. The published rule is that each of the five has to be a sentence that can be defended, and if the sentence cannot be said the position does not belong.
Turnover
These are held. The turnover in this sleeve is close to nothing, which is the point of splitting it this way rather than running one concentrated book and hoping.
The Last Full Year
Figures from the Form 10-K filed 17 February 2026 and the fourth quarter earnings release.
Revenue, FY2025
Up 56%. US commercial revenue grew 109% to $1.465b and US government 55% to $1.855b.
Adjusted Operating Margin
Adjusted income from operations $2.254b, against 39% and $1.128b in FY2024. GAAP operating margin was 32%.
Stock Comp To Revenue
$684.0m of stock based compensation, down from $691.6m while revenue grew 56%. It was 24.1% of revenue in FY2024.
Remaining Deal Value
$6.8b commercial and $4.4b government, against $5.4b a year earlier.
Where The Revenue Comes From
The segments, the mix, and which line is actually carrying it. FY2025, the year ended 31 December 2025.
The United States Is Three Quarters Of It
US revenue was $3.320b of $4.475b, up 75%. The 10-K states 74% of revenue came from US customers in 2025, against 66% in 2024. International revenue grew about 19.7%, computed, so the mix shift is US growth rather than international decline.
Commercial Caught Up With Government
The Government segment booked $2.402b and Commercial $2.073b, 54% and 46%. Both segments reported a 66% contribution margin, up from 60%.
Gross Margin 82.4%
Gross profit $3.686b on $4.475b, computed, up from 80.2%. Operating expenses grew 16% while revenue grew 56%, which is where the margin expansion came from.
Nine Hundred And Fifty Four Customers
Up 34% from 711. The top three are 16% of revenue, down from 17%. Average revenue across the top twenty was $93.9m, up from $64.6m.
What It Does With The Cash
Capital allocation is the decision management actually controls.
No Debt At All
Zero borrowings outstanding, both years. The $500m revolving credit facility is completely undrawn. Cash, equivalents and short term US Treasury securities were $7.2b at year end and $9.2b at 30 June 2026.
Adjusted Free Cash Flow $2.270b
A 51% margin on revenue, against $1.249b and 44% in FY2024. Operating cash flow was $2.134b. Capital expenditure was $33.9m, which is the entire physical footprint of a $4.5b revenue business.
The Dilution Is The Cost
Diluted weighted average shares went from 2.451bn to 2.565bn, up 4.67%. The gap between diluted and basic shares was 195.6 million, 8.3% of basic. There is no buyback offsetting it.
What Is Not Published
Palantir no longer publishes a net dollar retention rate or a US commercial customer count, and does not publish a plain free cash flow figure or a full year total contract value. Those are absent here because they are absent there.
The Last Reported Quarter
Q2 2026, the three months ended 30 June 2026, with the guidance quoted rather than paraphrased.
Revenue Up Ninety Three Percent
Revenue $1.935b, up 93% year over year and 19% on the quarter. US revenue $1.573b up 115%. US commercial $764m, up 149%. US government $809m, up 90%.
Adjusted Operating Margin 62%
Adjusted income from operations $1.194b. GAAP income from operations $912m, a 47% margin. Rule of 40 score of 155%, on the company’s own definition of growth rate plus adjusted operating margin.
Cash Conversion Held
Cash from operations $1.216b, a 63% margin. Adjusted free cash flow $1.220b, also 63%. GAAP EPS $0.41.
The Guidance, In Their Words
“We are raising our revenue guidance to between $8.150 – $8.158 billion.” “We are raising our U.S. commercial revenue guidance to in excess of $3.424 billion, representing a growth rate of at least 134%.” “We are raising our adjusted free cash flow guidance to between $4.5 – $4.7 billion.”
The Case Against
The strongest arguments not to hold it, with figures attached and at the same weight as everything above.
The Customer Can Leave Whenever It Likes
The 10-K heading reads “Many of our customer contracts may be terminated by the customer at any time for convenience”. On the government side it adds that “the U.S. federal government is prohibited from exercising contract options more than one year in advance”, and 54% of revenue came from government customers in 2025.
Deal Value Is Not Revenue
The $11.2b of remaining deal value sits under a risk factor headed “We may not realize the full deal value of our customer contracts”. The GAAP remaining performance obligation, which is the contracted part, is $4.1b, and 38% of that is expected in the following twelve months.
Shareholders Pay The Wage Bill In Stock
Stock based compensation was $684.0m, and diluted shares rose 4.67% with no buyback against it. Adjusted operating income of $2.254b is GAAP operating income of $1.414b plus that $684.0m and $156.1m of employer payroll taxes on it. The adjustment is the story.
Sixteen Percent In Three Accounts
The top three customers were 16% of revenue in 2025 and 17% in 2024. Average revenue across the top twenty rose from $64.6m to $93.9m, so the largest relationships are growing faster than the base.
Control Is Not With The Shareholders
The 10-K carries a risk factor on the multi class structure, the Founder Voting Trust Agreement and the Founder Voting Agreement concentrating voting power with Stephen Cohen, Alexander Karp and Peter Thiel and their affiliates.
Company facts from each company’s most recent annual report on Form 10-K, read September 2026. No price, market cap or forecast appears on this page. Live prices for every position are on the investing page. Every figure on this page comes from a filing with the US Securities and Exchange Commission, read on 4 September 2026. NVIDIA: Form 10-K for the year ended 25 January 2026 filed 25 February 2026, Form 10-Q for the quarter ended 26 July 2026, the Q2 FY2027 earnings release and CFO commentary, and the Form 8-K filed 17 August 2026. Tesla: Form 10-K for the year ended 31 December 2025 filed 29 January 2026, the Q4 2025 and Q2 2026 shareholder updates, and the Form 10-Q for the quarter ended 30 June 2026. Apple: Form 10-K for the year ended 27 September 2025 filed 31 October 2025, and the Q2 and Q3 fiscal 2026 earnings releases. Amazon: Form 10-K for the year ended 31 December 2025 filed 5 February 2026, the Q4 2025 and Q2 2026 earnings releases, and the Form 10-Q for the quarter ended 30 June 2026. Palantir: Form 10-K for the year ended 31 December 2025 filed 17 February 2026, and the Q4 2025 and Q2 2026 earnings releases. Where a figure is a ratio the company does not itself publish, the line says “computed”. No share price, market capitalisation, valuation multiple, price target or analyst view appears anywhere on this page, because every one of those needs a price and a price printed into a static page is wrong within the hour. Live prices for every position are on the investing page. Not financial advice.
The Other Four
The rest of the concentrated half, one page each.
NVIDIA · NVDA
NVIDIA designs graphics processing units, networking hardware and the CUDA software stack used for accelerated computing.
Tesla · TSLA
Tesla designs, manufactures and sells electric vehicles and battery energy storage systems.
Apple · AAPL
Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, and sells related software and services.
Amazon · AMZN
Amazon operates online and physical stores, a marketplace for third party sellers and a logistics network.
XEQT · The Index Half
The all equity index fund the five positions sit on top of.
Common Questions
Palantir builds software platforms that integrate an organisation’s data and connect it to operational decisions. Its products are Gotham for defence and intelligence work, Foundry for commercial data operations, Apollo for software delivery, and AIP for applying large language models to that data.
Palantir sells software subscriptions, hosting and deployment services under term contracts. It reports revenue across its Government and Commercial segments, and also splits results between United States and international customers.
It sits in the concentrated half of the stocks sleeve under software that is hard to remove once installed. The published rule for that half is that each position has to be a sentence that can be defended, and the sleeve is held rather than traded.
Government contracts allow termination for convenience and depend on annual budget appropriations. A small number of customers account for a large share of revenue. Long, complex sales cycles and deployments make quarterly results uneven. These are structural risks the company itself discloses, not a forecast.
$4.475b in FY2025, the year ended 31 December 2025, per the company’s own filing with the SEC. Up 56%. US commercial revenue grew 109% to $1.465b and US government 55% to $1.855b.
The Customer Can Leave Whenever It Likes. Deal Value Is Not Revenue. Shareholders Pay The Wage Bill In Stock. Sixteen Percent In Three Accounts. Control Is Not With The Shareholders. Each of those is set out with figures on this page, taken from the company’s filings rather than from an opinion about them.
No. This is a published position with the reasoning attached, which is a different thing. Nothing here is financial advice and Cody Wise is not a licensed advisor.
One Line Of The Book.
The Rest Is Published Too.
Every position, the split behind them, and live prices on all of it.
Not financial advice.