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PL

Planet Labs PBC (PL)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 delivered record revenue of $66.3M (+10% YoY) and second sequential quarter of adjusted EBITDA profitability, with first-ever positive free cash flow ($8.0M); outperformance driven by defense and intelligence wins, elevated usage from government accounts, and progress on JSAT satellite services .
  • Results beat Wall Street consensus: revenue $66.27M vs $62.25M estimate and EPS $0.00 vs -$0.035 estimate; beats were fueled by stronger-than-expected usage and disciplined OpEx spend (S&P Global) .
  • Non-GAAP gross margin improved to 59% (55% GAAP), reflecting mix and efficiencies; management flagged near-term margin variability from partner solutions and early-phase satellite services costs .
  • Guidance raised later in Q2: FY26 revenue increased to $281–$289M (from $265–$280M in Q1 release), with expectation of annual free cash flow positivity; Q3 revenue guided to $71–$74M .
  • Strategic catalysts: AI-enabled solutions (notably Maritime Domain Awareness), satellite services pipeline expansion (Germany, JSAT), and ramping Pelican/Tanager capacity; strong backlog ($527.0M in Q1, $736.1M by Q2) supports growth acceleration into FY27 .

What Went Well and What Went Wrong

What Went Well

  • “We generated $66.3M in revenue…non-GAAP gross margin was 59%…adjusted EBITDA profit came in at $1.2M…first ever quarter of positive free cash flow at $8.0M” — validation of strategy, execution, and cash discipline .
  • AI-enabled solutions momentum: eight-figure ACV expansion in Europe for PlanetScope and MDA; seven-figure MDA expansion with a long-term customer; strong demand for downstream solutions embedding Planet into operations .
  • Backlog/RPO strength and cash position: Q1 RPO $451.9M (+262% YoY), backlog $527.0M (+140% YoY), ending cash/short-term investments ~$226.1M; sets visibility to growth acceleration into FY27 .

What Went Wrong

  • Civil government revenue down YoY, primarily due to expiration of Norway’s NICFI program; North America revenue down QoQ amid agricultural contract adjustments in Q4 .
  • Management highlighted rising cost of revenue from satellite depreciation, partner solutions, and costs tied to new JSAT contract; near-term margin variability likely as satellite services enter build phase .
  • Customer count declined as direct sales refocus on large accounts; smaller customers shift to self-serve platform; despite this, ARPC rose and revenue grew, mitigating investor concerns on churn optics .

Financial Results

MetricQ4 2025Q1 2026Q2 2026
Revenue ($USD Millions)$61.6 $66.3 $73.4
GAAP Gross Margin (%)62% 55% 58%
Non-GAAP Gross Margin (%)65% 59% 61%
GAAP EPS ($)($0.12) ($0.04) ($0.07)
Non-GAAP EPS ($)($0.08) $0.00 ($0.03)
Adjusted EBITDA ($USD Millions)$2.4 $1.2 $6.4
Net Cash from Operations ($USD Millions)—$17.3 $67.8
Free Cash Flow ($USD Millions)—$8.0 $46.3

Estimates comparison (Q1 FY26):

MetricConsensus EstimateActualSurprise
Revenue ($USD)$62,252,170*$66,265,000 +$4,012,830 (Beat)
Primary EPS ($)($0.03516)*$0.00 +$0.03516 (Beat)
Revenue - # of Estimates11*——
Primary EPS - # of Estimates7*——

Values retrieved from S&P Global.*

Segment/sector snapshot:

  • Q1 FY26: D&I revenue grew >20% YoY; commercial flat YoY; civil down YoY due to NICFI end .
  • Q2 FY26: D&I +41% YoY; commercial +6% YoY; civil -4% YoY .

KPIs and balance sheet:

KPIQ4 2025Q1 2026Q2 2026
Percent of Recurring ACV (%)97% 97% 98%
EoP Customer Count976 919 908
Net Dollar Retention (%)106% (FY) 103% 107%
NDR with Winbacks (%)107% (FY) 104% 108%
RPO ($USD Millions)$407.5 $451.9 $690.1
Backlog ($USD Millions)$498.5 $527.0 $736.1
Cash & ST Investments ($USD Millions)$222.1 $226.1 $271.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD)Q2 FY26$65M–$67M —Maintained in Q1 release
Non-GAAP Gross Margin (%)Q2 FY2656%–57% —Maintained
Adjusted EBITDA ($USD)Q2 FY26($4M)–($2M) —Maintained
CapEx ($USD)Q2 FY26$17M–$22M —Maintained
Revenue ($USD)FY26$265M–$280M $281M–$289M (as of Q2) Raised (range up)
Non-GAAP Gross Margin (%)FY2655%–57% 55%–57% Maintained
Adjusted EBITDA ($USD)FY26($12M)–($7M) ($7M)–$0 Raised (toward breakeven)
CapEx ($USD)FY26$50M–$65M $65M–$75M Raised (higher investment)
Revenue ($USD)Q3 FY26—$71M–$74M New (Q2 release)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25)Previous Mentions (Q1 FY26)Current Period (Q1 FY26)Trend
AI initiativesAnnounced Anthropic collaboration; focus on AI to accelerate solutions Continued AI-enabled MDA and GMS solutions; foundation model fine-tuning Emphasis on AI-enabled solutions driving government wins Strengthening
Satellite servicesLandmark $230M JSAT; pipeline across geos Execution on JSAT; pursuing strategic deals Subsequent €240M Germany deal announced in Q2; pipeline maturing Expanding
Government budgets/EOCLEfficiency focus and commercial leverage; uncertainty monitored Tracked CR dynamics; opportunities outweigh risks EOCL/DoD demand pockets; MDA expansion; budget seasonality in usage Mixed risk, net positive
Commercial sectorStabilization after ag headwinds Flat YoY; QoQ step-down from ag adjustments Return to YoY growth in Q2 (+6%) Recovering
Regional trendsEMEA/APAC strength; NA variability EMEA/APAC +30% YoY; NA/LatAm down APAC >50% YoY, EMEA >30% YoY in Q2; NA flat Strength outside NA
Profitability/cash flowFirst adjusted EBITDA positive quarter; plan to positive FCF in 24 months Second adjusted EBITDA positive quarter; first positive FCF Expect annual FCF positive in FY26 (Q2) Accelerating

Management Commentary

  • “We generated $66.3M in revenue…non-GAAP gross margin was 59%…adjusted EBITDA profit came in at $1.2M…first ever quarter of positive free cash flow at $8.0M” .
  • “Revenue outperformance was driven by key wins with defense and intelligence customers, higher than expected usage by some government accounts and steady progress across our new JSAT contract” .
  • “Our remaining performance obligations…~$451.9M…backlog ~ $527.0M…we believe this backlog provides good visibility to meaningful growth rate acceleration into fiscal 2027” .
  • “We’re responding to strong demand signals by prioritizing delivery of global insights at scale via AI-enabled solutions and rapidly expanding our satellite services offering” .

Q&A Highlights

  • AI partnerships and model fine-tuning: Anthropic, Google, NVIDIA collaborations aim to improve multimodal accuracy on satellite data and accelerate time-to-value in solutions like MDA and GMS .
  • Government budget dynamics and EOCL: Management sees opportunities from efficiency-driven shifts; monitors CRs and EOCL uncertainty while expanding into DoD solutions and MDA use cases .
  • Usage-driven outperformance and seasonality: Elevated Q1 usage may normalize due to annual budget constraints; some early renewals possible, but guidance assumes historical pacing .
  • Satellite services working capital and pipeline: Contracts are positive for working capital (front-loaded payments); pipeline across regions maturing, leveraging Planet’s rapid satellite build/launch capability .

Estimates Context

  • Q1 FY26 revenue beat: $66.27M actual vs $62.25M estimate; EPS beat: $0.00 actual vs -$0.035 estimate (S&P Global). Beats reflect stronger-than-expected usage and disciplined OpEx .
  • Post-Q1, guidance and backlog strength imply upward pressure on estimates for FY26 revenue and EBITDA trajectory as satellite services revenue ramps and AI-enabled solutions expand .

Key Takeaways for Investors

  • Usage and defense/intelligence wins drove a clean revenue/EPS beat; watch for normalization in usage but continued solution adoption and satellite services milestones as offsets .
  • Non-GAAP margin trend is positive, yet near-term variability is likely from partner solution mix and early-phase satellite services costs; longer-term margins expected to stabilize/accrete .
  • Backlog and RPO growth de-risk FY26–FY27 trajectories; Germany/JSAT contracts plus MDA expansions underpin visibility to growth acceleration and earlier free cash flow positivity .
  • Strategic focus on AI-enabled global insights and rapid satellite services positions Planet as a scaled partner for sovereign access and persistent monitoring, a catalyst for re-rating .
  • Reallocation to large accounts and platform-driven long tail improves ARPC and retention; expect commercial sector momentum to improve from stabilization toward growth in coming quarters .
  • For trading: catalysts include additional satellite services awards, Pelican/Tanager launches/commissioning updates, MDA wins, Investor Day disclosures, and sustained FCF delivery .

Notes on document sourcing:

  • Read in full: Q1 FY26 8‑K earnings press release and exhibits , the standalone press release –, and Q1 FY26 earnings call transcript –.
  • Prior quarters reviewed: Q4 FY25 8‑K and call – –; Q2 FY26 8‑K and call – –.
  • Attempted to locate Q3 FY25 earnings materials; not available in returned search results.