Palantir Technologies Inc. (PLTR) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Palantir Technologies Inc. surfaced in its latest filing.

• As of December 31, 2025, total remaining deal value was $11.2 billion, with $6.8 billion from commercial customers and $4.4 billion from government customers.December 31, 2025
• Selected by the U.S. Army in March 2024 to develop and deliver the Tactical Intelligence Targeting Access Node ground station system, the Army's first AI-defined vehicle.March 2024
• In November 2019, created a jointly controlled entity in Japan with SOMPO Holdings, Inc., obtaining a controlling interest in November 2022.November 2019
• Created a jointly-owned entity in South Korea with HD Hyundai Co. Ltd. in December 2022 in which the company has a controlling interest.December 2022
• Existing revolving credit facility matures in March 2027, providing total commitments of up to $500 million, all undrawn as of the date of the Quarterly Report.March 2027
• The company and certain officers and directors were sued in purported class action lawsuits and derivative lawsuits.
• Total value of Strategic Commercial Contracts was $326 million as of June 30, 2026, with cumulative revenue recognized of $325 million.June 30, 2026
• The federal government shut down in the third quarter of 2025.2025
• The company joined the S&P 500 index in September 2024.September 2024
• On August 10, 2020, Mr. Karp and Mr. Cohen received options and RSUs for 207.0 million shares of Class B common stock.August 10, 2020
• As of June 30, 2026, approximately 1.69 million options will expire through December 2026 if not exercised prior to their respective expiration dates.June 30, 2026
• South Korea's AI Basic Act took effect January 2026, imposing transparency and risk management obligations for high-impact AI systems.January 2026
• EU AIA entered into force August 2024, phasing in, with penalties up to €35 million or 7% of worldwide annual turnover.August 2024
• GDPR took effect in May 2018 with penalties up to 4% of worldwide annual revenue or €20 million.May 2018
• CPRA effective January 1, 2023, established the California Privacy Protection Agency.January 1, 2023
• CCPA went into effect January 1, 2020, enforced by California Attorney General.January 1, 2020
• CPPA finalized regulations in September 2025 requiring risk assessments, cybersecurity audits, and consumer rights for automated decision-making, with compliance deadlines January 2026 to April 2030.September 2025
• The SEC adopted cybersecurity risk management and disclosure rules requiring disclosure of cybersecurity incidents and risk management.
• The EU Parliament adopted the EU AIA, which will impose onerous obligations on AI systems.
• The company became subject to OECD Pillar Two rules starting January 1, 2024 in some jurisdictions.January 1, 2024
• OECD released Pillar Two Side-by-Side Package on January 5, 2026, which reduces the impact of Pillar Two rules on the company.January 5, 2026
• European Commission renewed U.K. adequacy decisions in December 2025 for six years, expiring December 2031, with mid-point review after four years.December 2025
• U.K. Data (Use and Access) Act 2025 largely conforms to EU GDPR standards.2025
• EU Data Act became applicable September 12, 2025, affecting termination and data portability obligations.September 12, 2025
• NIS2 replaced the original NIS Directive as of October 2024.October 2024
• DORA introduced new ICT risk management and incident reporting standards for financial and insurance entities.
• Washington's My Health My Data Act includes a private right of action for consumer health data.
• Nevada's Senate Bill No. 370 imposes health data privacy obligations.
• U.S. Department of Justice issued regulations restricting transfers of sensitive personal information.
• Colorado passed a Consumer Protections for AI bill introducing oversight of high-risk AI systems, similar to the EU AIA.
• South Korea's PIPA amendments effective September 2026 and July 2027, adopted February 2026, permitting fines up to 10% of total revenue.February 2026
• The company has signed on to voluntary AI commitments encouraged by certain administrations.
• As of mid-2026, twenty states have operative comprehensive consumer privacy laws.2026
• As of June 30, 2026, there were 2,300,516,590 shares of Class A common stock outstanding, 101,375,151 shares of Class B common stock outstanding, and 1,005,000 shares of Class F common stock outstanding.June 30, 2026
• As of June 30, 2026, the Founders were 58, 58, and 43 years old.June 30, 2026
• As of July 27, 2026, Founders and affiliates held approximately 22% of outstanding capital stock voting power (excluding Class F).July 27, 2026
• Mr. Thiel identified a portion of Class B and Class A shares beneficially owned by him and his affiliates as Designated Founders' Excluded Shares, not subject to the Founder Voting Agreement.
• The shares identified by Mr. Thiel represented less than 5% of voting power as of July 27, 2026.July 27, 2026
• Founders and their affiliates could acquire over 50% of voting power via issuance of Class F common stock.
• As of June 30, 2026, there were options to purchase 19,746,179 shares of Class A common stock and 129,930,461 shares of Class B common stock.June 30, 2026
• As of June 30, 2026, there were 14,167,216 shares of Class A common stock subject to RSUs and 19,500,000 shares of Class B common stock subject to RSUs.June 30, 2026
• As of June 30, 2026, there were 13,690,664 shares of Class A common stock subject to SARs and 121,393 shares of Class A common stock subject to P-RSUs.June 30, 2026
• The company has never declared nor paid cash dividends on its capital stock, and its credit facility contains restrictions on its ability to pay dividends.
• The company has entered into investment agreements to purchase shares of various entities, including SPACs, and does not currently anticipate entering into new investment agreements to purchase securities of special purpose acquisition companies.
• Some early-stage Investee customers filed for bankruptcy or terminated their contracts with the company.
• The company has received notices claiming it has infringed, misappropriated, misused or otherwise violated other parties' intellectual property rights.
• The company has previously been, and is currently, involved in legal, regulatory, and administrative inquiries and proceedings.
• The company is subject to examination of income tax returns by U.S. and foreign tax authorities, which have disagreed with its calculation of research and development tax credits, cross-jurisdictional transfer pricing, or other matters.
• The company has business operations in the San Francisco Bay Area, a seismically active region, and in the Miami, Florida area, which regularly experiences active hurricane seasons.
• The company's Colorado location has experienced drought, water scarcity, heat waves, and wildfires causing air quality impacts and power shutoffs.
• The company is exposed to the ongoing Russia-Ukraine conflict, economic sanctions on Russia, Hamas-Israel conflict, and Middle East hostilities including U.S. and Israel strikes on Iran and retaliatory strikes.
• Following Russia’s invasion of Ukraine, the U.S. and other countries have imposed economic sanctions and severe export control restrictions against Russia, Belarus, and certain regions of Ukraine.
• The company has contracts with governments that involve classified programs, and access to classified information requires appropriate personnel security clearances, facility clearances, and specialized infrastructure.
• The company maintains FedRAMP, IL2, IL4, IL5, and IL6 authorizations.
• The company is subject to the U.S. Foreign Corrupt Practices Act (FCPA), U.K. Bribery Act, 18 U.S.C. § 201, and U.S. Travel Act.
• The company has exposure to foreign currency exchange rate fluctuations, particularly EUR, JPY, and GBP.
• The company is required to annually comply with SEC rules implementing Section 404 of the Sarbanes-Oxley Act and make a formal assessment of internal control over financial reporting, with the independent registered public accounting firm annually formally attesting to effectiveness.
• The company is subject to reporting requirements of the Exchange Act, Sarbanes-Oxley Act, Dodd-Frank Act, and Nasdaq rules.
• The company's amended and restated bylaws designate Delaware state or federal court as exclusive forum for substantially all stockholder disputes, and federal district courts as exclusive forum for Securities Act claims.
• The company's multi-class common stock structure provides Founders and their affiliates with effective control over stockholder approval matters even if they own less than a majority of outstanding shares.
• The Founder Voting Agreement and Founder Voting Trust Agreement concentrate voting power with Founders and their affiliates.
• Class F common stock is held in a voting trust with Wilmington Trust, National Association as trustee.
• The U.S. Federal Reserve, European Central Bank, and Bank of England have raised and could maintain or raise interest rates and implement fiscal policy interventions.
• The company may be exposed to potential or actual imposition of tariffs or other impacts on trade relations that may negatively affect industries to which it sells.
• The company relies on AWS and Microsoft Azure to host key platform functions, including Palantir Cloud, AI features, CRM, billing, cybersecurity, and financial accounting.