"Anthropic told investors that it will profit on a measure called adjusted operating income.
"According to the report, adjusted operating income excludes stock-based compensation, which is not unusual for technology companies. However, the report also quotes its gross margins - above 80% - exclude revenue shared with distribution partners, as well as the cost of training its models."
I wonder how they account for free credits given in this spend. We got given US$5k free API credits from them a couple months ago and even accounting for our Claude Code subscription spend, I think we're still ahead overall - they haven't made any money from us! And they just gave us another few hundred bucks a month of API credit as part of our subscription.
Antropic's revenue is up [1], [2], [3] and if you calculate adjusted operating income (by excluding most expenses like training costs) then by that measure it is profitable. However, if you factor in all the numbers it is operating at a loss.
Source? Only reports I’ve seen was they were profitable for one month in last quarter due to xAI discount of renting out colossus . Be interested to learn otherwise.
After investments. Investments they can cut if they need to. Their daily operation is very profitable, they just decided to use that to bring cash in and go on the crazy growing trajectory, instead of taking it slow and steady. But if AI progress suddenly stops, they can just scale investments back and became profitable immediately. Calling them unprofitable is highly misleading. It's not like they are an early venture company still trying to figure out their product-market fit, with totally inflated numbers based merely on a theoretical number of potential customers (while having close to zero paying ones).
I'm not arguing that their product is not valuable or that it doesn't have customers.
I'm stating that their current business model, prices, and behavior they are trying to instill is not profitable. For example, token maxing every code change is great for Anthropic and terrible advise for Anthropic customers.
The moment they stop training, they become irrelevant. The moment they become irrelevant their valuation crashes down to normal valuation ranges for a company with their revenue and future growth
"Anthropic told investors that it will profit on a measure called adjusted operating income.
"According to the report, adjusted operating income excludes stock-based compensation, which is not unusual for technology companies. However, the report also quotes its gross margins - above 80% - exclude revenue shared with distribution partners, as well as the cost of training its models."
From https://www.morningstar.com/news/marketwatch/2026091414/the-...
I wonder how they account for free credits given in this spend. We got given US$5k free API credits from them a couple months ago and even accounting for our Claude Code subscription spend, I think we're still ahead overall - they haven't made any money from us! And they just gave us another few hundred bucks a month of API credit as part of our subscription.
How so? Can you link to the numbers?
Antropic's revenue is up [1], [2], [3] and if you calculate adjusted operating income (by excluding most expenses like training costs) then by that measure it is profitable. However, if you factor in all the numbers it is operating at a loss.
[1] https://finance.yahoo.com/technology/ai/articles/anthropic-v...
[2] https://fortune.com/2026/09/29/anthropic-leaked-ipo-prospect...
[3] https://www.cnbc.com/2026/10/15/anthropics-third-quarter-rev...
Source? Only reports I’ve seen was they were profitable for one month in last quarter due to xAI discount of renting out colossus . Be interested to learn otherwise.
That's factually incorrect, and shouldn't be allowed here.
Profitable as in after expenses.
https://youtu.be/T-oXyXwD6sE?si=tauzXVyGmQ6MhI_5
After investments. Investments they can cut if they need to. Their daily operation is very profitable, they just decided to use that to bring cash in and go on the crazy growing trajectory, instead of taking it slow and steady. But if AI progress suddenly stops, they can just scale investments back and became profitable immediately. Calling them unprofitable is highly misleading. It's not like they are an early venture company still trying to figure out their product-market fit, with totally inflated numbers based merely on a theoretical number of potential customers (while having close to zero paying ones).
I'm not arguing that their product is not valuable or that it doesn't have customers.
I'm stating that their current business model, prices, and behavior they are trying to instill is not profitable. For example, token maxing every code change is great for Anthropic and terrible advise for Anthropic customers.
The moment they stop training, they become irrelevant. The moment they become irrelevant their valuation crashes down to normal valuation ranges for a company with their revenue and future growth
We're talking about being actually profitable, not fake profitable.
“I think that, every time you see the word EBITDA, you should substitute the words "bullshit earnings.” ― Charles T. Munger
And what they're reporting is adjusted even further than EBITDA
Yes when you subtract expenses and capex
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