Overview
- Revenue fell 20% year over year to $33.1 million, topping the $31.8 million consensus as management cited lower U.S. Army work.
- Gross margin declined to 22.4% from 25.9%, reflecting fewer higher-margin programs and the on‑premises nature of much government work.
- Adjusted EBITDA swung to a $9.4 million loss, with operating cash flow at negative $9.6 million and free cash flow at negative $9.8 million.
- The company ended the quarter with $586.7 million in cash and investments and $104.9 million in debt after raising over $637 million in equity this year.
- Full-year revenue guidance remains $125 million to $140 million, below 2024’s $158.2 million, as analysts caution the stock’s valuation looks rich and not directly comparable to Palantir’s higher-margin, more recurring model.