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Planet Labs PBC (PL)·Q2 2026 Earnings Summary

Executive Summary

  • Record Q2 revenue of $73.4M (+20% YoY) with non-GAAP gross margin at 61% and adjusted EBITDA profit of $6.4M; backlog surged to $736.1M (+245% YoY) and RPOs to $690.1M (+516% YoY), providing strong visibility into FY27 .
  • Material beats vs S&P Global consensus: revenue +$7.2M (+10.9%) and non-GAAP EPS (-$0.03) above estimates (-$0.045); EBITDA (unadjusted) missed vs consensus, but adjusted EBITDA surprised positively at $6.4M *.
  • FY26 guidance raised: revenue to $281–$289M (from $265–$280M) and adjusted EBITDA loss to -$7M to breakeven (from -$12M to -$7M); capex lifted to $65–$75M (from $50–$65M) reflecting accelerated Pelican/Tanager buildout .
  • Strategic wins underpin momentum: €240M German satellite services (rev begins Jan 2026), NATO, DIU option expansion, U.S. Navy MDA; Pelican-3/-4 launched Aug 26, advancing space systems execution .
  • Management expects full-year free cash flow positive—over a year ahead of prior target—driven by strong operating cash generation and working-capital-positive satellite services contracts; cash and ST investments ended Q2 at $271.5M (+$45.4M QoQ) .

What Went Well and What Went Wrong

What Went Well

  • Defense & Intelligence sector strength: revenue +41% YoY and +14% QoQ, aided by usage outperformance and JSAT contribution; non-GAAP gross margin upside from high-margin usage-based revenue .
  • Backlog/RPOs inflection: backlog to $736.1M (+245% YoY) and RPOs to $690.1M (+516% YoY), with ~35% and ~32% recognizable within 12 months respectively, supporting growth acceleration into FY27 .
  • Strategic contracting wins and execution: DIU option, NRO EOCL expansion, U.S. Navy MDA; two Pelican launches (Pelican-3/-4) commissioned, with production ramp and multiple launches slated over the next year .

Selected quotes:

  • “We generated $73.4 million in revenue… adjusted EBITDA profit came in at $6.4 million… our backlog increased to $736.1 million…” .
  • “These satellite services contracts are positive for us from a working capital perspective… enables us to build out the fleet without needing to fund those build-outs from our balance sheet.” .

What Went Wrong

  • Civil Government softness: revenue -4% YoY (impact from Norway NIKFI expiration); North America flat YoY and LATAM down slightly, highlighting regional variability and budget pacing constraints .
  • EBITDA (unadjusted) below consensus despite adjusted EBITDA beat; mix shifts (early build-phase satellite services lower margin) may pressure reported EBITDA and gross margins in near-term *.
  • EoP customer count fell sequentially to 908 as sales strategy prioritizes larger accounts, necessitating continued execution to sustain average revenue per customer gains .

Financial Results

Core Financials vs prior periods and consensus

MetricQ4 2025Q1 2026Q2 2026Q2 2026 Consensus
Revenue ($USD Millions)$61.554 $66.265 $73.386 $66.149*
GAAP EPS ($)-$0.12 -$0.04 -$0.07 -$0.045*
Non-GAAP EPS ($)-$0.08 $0.00 -$0.03 -$0.045*
GAAP Gross Margin (%)62% 55% 58% N/A
Non-GAAP Gross Margin (%)65% 59% 61% N/A
Adjusted EBITDA ($USD Millions)$2.378 $1.199 $6.406 N/A
EBITDA (unadjusted, $USD Millions)N/AN/A-$8.038*-$3.399*

Notes:

  • Revenue beat vs consensus by $7.237M (+10.9%); non-GAAP EPS beat by $0.015 *.
  • EBITDA line reflects standard EBITDA (not adjusted) from S&P Global; company-reported adjusted EBITDA was positive .
    Values retrieved from S&P Global.*

YoY/Sequential change (Revenue)

PeriodRevenue ($USD Millions)YoY GrowthSeq Growth
Q2 2025$61.092 ——
Q1 2026$66.265 +9.6% vs Q1’25 ($60.440) —
Q2 2026$73.386 +20.1% vs Q2’25 ($61.092) +10.7% vs Q1’26 ($66.265)

Sector/Segment growth (company disclosed)

SectorYoY GrowthQoQ Growth
Defense & Intelligence+41% +14%
Commercial+6% +13%
Civil Government-4% ~Flat

KPIs and Operating Metrics (Q2 2026)

KPIQ2 2026Prior Period Reference
RPOs ($USD Millions)$690.066 $451.928 (Q1’26)
Backlog ($USD Millions)$736.077 $527.047 (Q1’26)
Percent Recurring ACV (%)98% 97% (Q1’26)
EoP Customer Count908 976 (Q4’25)
Net Dollar Retention (%)107% N/A
NDR incl. winbacks (%)108% N/A
Free Cash Flow ($USD Millions)$46.288 (Q2) $8.002 (Q1)
Free Cash Flow YTD ($USD Millions)$54.290 N/A
Cash & ST Investments ($USD Millions)$271.5 $226.1 (Q1’26)
Cash from Ops YTD ($USD Millions)$85.120 $17.346 (Q1’26)
Capex in Quarter ($USD Millions)~$21.5 $9.34 (Q1’26 total PPE+software)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q3 FY26N/A$71–$74 New
Non-GAAP Gross Margin (%)Q3 FY26N/A55–56 New
Adjusted EBITDA ($USD Millions)Q3 FY26N/A-$4 to $0 New
Capex ($USD Millions)Q3 FY26N/A$18–$24 New
Revenue ($USD Millions)FY26$265–$280 $281–$289 Raised
Non-GAAP Gross Margin (%)FY2655–57 55–57 Maintained
Adjusted EBITDA ($USD Millions)FY26-$12 to -$7 -$7 to $0 Raised
Capex ($USD Millions)FY26$50–$65 $65–$75 Raised

Additional timing note: Germany €240M satellite services revenue recognition expected to begin January 2026 and ramp over several years .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25, Q1 FY26)Current Period (Q2 FY26)Trend
Satellite Services (JSAT, Germany)JSAT $230M multi-year agreement signed (Q4) ; European D&I eight-figure ACV (Q1) €240M German multi-year satellite services; pipeline “maturing very well” Accelerating
AI-enabled SolutionsAI strategic focus (Q4) ; Aircraft Detection analytic feed (Q1) Uptake in government markets; partnerships with Anthropic, Google, NVIDIA; MDA most mature solution Expanding
Gross Margin65% non-GAAP (Q4) 59% (Q1) 61% (Q2); upside from usage-based revenue
Defense & Intelligence demandMultiple US/NATO wins (Q4) European eight-figure ACV (Q1) +41% YoY, +14% QoQ; DIU option/NRO EOCL expansion
Civil GovernmentVarious gov’t expansions (Q1) -4% YoY; Norway NIKFI expiration Mixed/Headwind
CommercialBayer/Syngenta expansions (Q4) ; onX expansion (Q1) Return to YoY growth (+6%) and +13% QoQ; Farmdar, Swiss Re proof points Turning Positive
Space Systems executionPelican-2 first light (Q4) ; Pelican-2 commissioned (Q1) Pelican-3/-4 launched; 4 Pelicans in orbit, more launches slated Advancing

Management Commentary

  • Will Marshall (CEO): “We generated $73.4 million in revenue… adjusted EBITDA… $6.4 million… backlog increased to $736.1 million… we are now expecting to be free cash flow positive this fiscal year, over a year ahead of our prior target…” .
  • Ashley F. Johnson (CFO): “Non-GAAP gross margin… 61%… driven by revenue outperformance… usage-based data subscription customers… Adjusted EBITDA profit was $6.4 million… disciplined OpEx spend.” .
  • On satellite services: “Very strong demand signals… desire for sovereign access to space… pipeline is maturing very well… synergistic with core business, enabling more capacity for other customers.” .

Q&A Highlights

  • Backlog composition and working capital: Large satellite services contracts (Japan, Germany) drive backlog; cash collections/working capital profile are positive, front-weighted to early milestones, easing fleet build financing .
  • Gross margin sustainability: Upside in Q2 from high-margin usage; margins will vary with revenue mix; early build phases of satellite services are lower margin, with later managed services phases higher margin .
  • Usage dynamics and renewals: Elevated government usage in Q2; guidance assumes normalization to budget pacing; potential for early renewals depending on budget access .
  • EOCL and MDA capacity: NRO EOCL expansion includes PlanetScope monitoring and MDA; U.S. Navy sole-source expansion underscores unique large-area maritime monitoring capability .
  • Capacity allocation (JSAT/Germany): Dedicated capacity for sovereign contexts remains a small fraction of overall constellation capacity; Germany’s structure leverages existing Pelicans .

Estimates Context

  • Revenue beat: Actual $73.386M vs consensus $66.149M (+$7.237M, +10.9%)* .
  • EPS beat: Non-GAAP EPS -$0.03 vs consensus -$0.045 (better by $0.015)* .
  • EBITDA (unadjusted) miss: Actual -$8.038M vs consensus -$3.399M*, while adjusted EBITDA surprised positively at $6.406M *.
  • Implications: Raised FY26 revenue and adjusted EBITDA guidance likely necessitates upward revisions to revenue and EBITDA trajectories, with margin profile dependent on mix (usage vs satellite services build).
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Growth acceleration is tangible: record revenue, usage-driven margin upside, and backlog/RPOs inflection provide multi-quarter visibility into FY27 .
  • Mix matters for margins: expect gross margin variability as satellite services enter build phases; later phases and high-margin usage can lift margins—monitor sector/contract mix .
  • Cash discipline and funding: strong operating cash flow ($85.1M YTD) and FCF ($54.3M YTD) plus positive working capital from satellite services support capex ramp without balance-sheet stress .
  • Strategic contracts as catalysts: Germany (€240M, rev from Jan 2026), NATO, DIU, U.S. Navy MDA underpin defense/intelligence momentum and could drive estimate and multiple expansion as revenue recognition ramps .
  • Portfolio positioning: defense/intelligence exposure and AI-enabled solutions reduce cyclical risk; commercial sector inflecting back to growth (+6% YoY) improves diversification .
  • Watch guidance execution: FY26 revenue raised to $281–$289M; adjusted EBITDA path to breakeven; capex lift to $65–$75M aligns with accelerated fleet builds—track quarterly margin and capex pacing .
  • Near-term trading lens: emphasize revenue/EPS beats and raised guide; balance with EBITDA (unadjusted) optics and margin mix narrative—stock reaction likely keyed to backlog visibility and FCF trajectory .
S&P Global disclaimer: Consensus estimate values (marked with *) were retrieved from S&P Global.