Free cash flow generation has matured significantly, reaching a 54.6% margin in 2026Q1, supported by a capital-light model where CapEx represents only 0.5% of revenue.
| Cash from Operations | 2.72B | 2.13B | 1.15B | 712.18M | 223.74M | 333.85M | -296.61M | -165.22M | -39.01M |
| Operating CF Margin % | - | 47.69% | 40.27% | 32.01% | 11.74% | 21.65% | -27.15% | -22.25% | -6.55% |
| Operating CF Growth % | 552.9% | 84.98% | 62.02% | 218.31% | -32.98% | 212.56% | -79.53% | -323.5% | - |
| Net Income | 2.28B | 1.63B | 467.92M | 217.38M | -371.09M | -520.38M | -1.17B | -579.65M | -580.03M |
| Depreciation & Amortization | 26.29M | 26.14M | 31.59M | 33.35M | 22.52M | 14.9M | 13.87M | 12.26M | 13.91M |
| Stock-Based Compensation | 730.29M | 684.03M | 691.64M | 475.9M | 564.8M | 778.22M | 1.27B | 241.97M | 248.5M |
| Deferred Taxes | 0 | 0 | 0 | -4.81M | -174K | 43.32M | -20.39M | -7.2M | 0 |
| Other Non-Cash Items | -49.32M | -386K | 32.82M | -15.88M | 268.9M | 109.9M | 39.33M | 26.18M | -23.97M |
| Working Capital Changes | -275.28M | -209.96M | -70.1M | 6.24M | -261.22M | -92.1M | -433.73M | 141.23M | 302.57M |
| Change in Receivables | -676.44M | -450.43M | -211.16M | -106.16M | -72.82M | -35.24M | -108.48M | -23.91M | -10.48M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 63.05M | 4.66M | -18.84M | -31.83M | -29.86M | 57.77M | -34.68M | 23.42M | 10.97M |
| Cash from Investing | -1.42B | -2.78B | -340.65M | -2.71B | -45.43M | -397.91M | -14.92M | -21.96M | -6.78M |
| Capital Expenditures | -35.1M | -33.88M | -12.63M | -15.11M | -40.03M | -12.63M | -12.24M | -13.1M | -13M |
| CapEx % of Revenue | 0.67% | 0.76% | 0.44% | 0.68% | 2.1% | 0.82% | 1.12% | 1.76% | 2.18% |
| Acquisitions | 0 | 0 | 0 | 0 | 66.71M | 0 | -2.93M | -8.87M | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -988.48M | -1M | -5.62M | 51.07M | 73K | -3.87M | 250K | 0 | 6.22M |
| Cash from Financing | 5.38M | -26.91M | 463.36M | 218.84M | 86M | 306.75M | 1.04B | 324.53M | 46.15M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -200M | -200.63M | 394.41M | -56.49M |
| Equity Issued (Net) | 13.41M | 54.12M | 681.2M | 218.24M | 86.09M | 507.45M | 938.75M | -11.2M | 88.77M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -56.99M | -74.98M | -64.2M | 0 | 0 | 0 | -3.78M | -11.2M | -7.71M |
| Other Financing | -8.03M | -81.03M | -217.84M | 601K | -93K | -708K | 298.33M | -58.68M | 13.87M |
| Net Change in Cash | 1.3B | -682.43M | 1.27B | -1.78B | 260.42M | 238.77M | 726.18M | 135.13M | -3.35M |
| Free Cash Flow | 2.69B | 2.1B | 1.14B | 697.07M | 183.71M | 321.22M | -308.84M | -178.31M | -52.02M |
| FCF Margin % | 51.48% | 46.94% | 39.83% | 31.33% | 9.64% | 20.83% | -28.27% | -24.01% | -8.74% |
| FCF Growth % | 103.98% | 84.06% | 63.72% | 279.44% | -42.81% | 204.01% | -73.21% | -242.8% | - |
| FCF per Share | 1.05 | 0.82 | 0.47 | 0.30 | 0.09 | 0.17 | -0.32 | -0.25 | -0.07 |
| FCF Conversion (FCF/Net Income) | 1.18x | 1.31x | 2.50x | 3.39x | -0.60x | -0.64x | 0.25x | 0.29x | 0.07x |
| Interest Paid | 0 | 0 | 0 | 0 | 5K | 0 | 11.43M | 2.71M | 2.44M |
| Taxes Paid | 0 | 0 | 16.18M | 13.52M | 2.9M | 4.13M | 14.28M | 8.58M | 17.1M |
High Valuation Multiple Sensitivity
According to recent quarterly filings, Palantir's operating cash flow to net income ratio has stabilized near 1.03 as of 2026Q1, signaling a transition from early-stage cash volatility to a more predictable alignment between GAAP earnings and actual cash generation as the business model scales effectively.
The historical divergence between net income and operating cash flow, which previously saw ratios exceeding 5.0, has narrowed significantly as the company achieves consistent profitability. This convergence suggests that the underlying earnings quality is improving, as the business relies less on non-cash adjustments and more on core operational cash inflows.
As reported in financial statements, Palantir's free cash flow margin reached 54.6% in 2026Q1, demonstrating a substantial improvement from the 20.0% levels observed in early 2024 and highlighting the high operating leverage inherent in the company's proprietary software-as-a-service model as it captures enterprise market share.
The trajectory of free cash flow indicates that the company is successfully converting its rapid revenue growth into significant liquidity. Investors should monitor whether this margin expansion is sustainable or if it remains sensitive to the timing of large, milestone-based government contract payments.
Based on Palantir's reported figures, capital expenditures remain remarkably low at just 0.5% of revenue in 2026Q1, confirming that the company's software-centric business model requires negligible physical asset investment to support its ongoing global expansion and the deployment of its artificial intelligence platform.
The consistently low capital intensity underscores the scalability of the ontology-based software, as the company does not need to reinvest heavily in hardware or infrastructure to maintain its competitive moat. This capital-light profile allows for the efficient conversion of operating cash flow into free cash flow, providing management with significant flexibility for future capital allocation.
Data from recent quarterly reports reveals significant fluctuations in working capital, including a $131.6 million outflow in 2026Q1, which suggests that the timing of large-scale enterprise and government contract collections continues to create periodic pressure on the company's short-term cash flow generation capabilities.
The erratic nature of these working capital swings appears tied to the lumpy revenue recognition patterns inherent in long-cycle project work. Analysts should interpret these shifts as a reflection of contract milestones rather than operational inefficiency, though they remain a source of quarterly cash flow volatility.
As indicated by the provided cash flow data, stock-based compensation remains a material component of the company's cost structure, totaling $201.6 million in 2026Q1, which effectively masks the true economic cost of talent acquisition and dilutes the cash-based benefits of the company's recent GAAP profitability.
While the company has achieved GAAP profitability, the persistent reliance on equity-based incentives suggests that the cash flow statement may overstate the company's ability to generate value for shareholders without ongoing dilution. Investors should carefully evaluate the extent to which these non-cash expenses are necessary to retain the engineering talent required to maintain the company's technological advantage.
Quick answers to the most common questions about buying PLTR stock.
Palantir Technologies Inc. (PLTR) generated $2.13B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Palantir Technologies Inc. (PLTR) generated $2.10B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Palantir Technologies Inc. (PLTR) spent $33.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Palantir Technologies Inc. (PLTR) spent $75.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.