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Planet Labs PBC (PL)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2026 (quarter ended Oct 31, 2025) results and 8‑K/earnings call have not been filed as of this writing; this recap synthesizes Planet’s Q2 FY2026 actuals, Q3 guidance, and Q3-period press releases to frame the setup into the print and trajectory since Q1 FY2026 .
  • Q2 FY2026 was a material top-line and profitability beat vs prior guidance: revenue $73.4M (guidance $65–67M), non‑GAAP gross margin 61% (guide 56–57%), and adjusted EBITDA +$6.4M; upside was driven by strong D&I usage, new wins, and JSAT milestones .
  • Backlog and RPO inflected sharply: RPOs +516% YoY to $690.1M; backlog +245% YoY to $736.1M, providing multi‑year visibility and supporting raised FY26 revenue outlook to $281–289M and an expectation to be FCF positive for FY26 .
  • Q3 period news flow stayed constructive: $12.8M NGA Luno B award (AI-enabled MDA), $7.5M U.S. Navy renewal for vessel monitoring, and an 8‑figure D&I imagery renewal; Pelican‑3/‑4 launched and commissioning commenced—positive for capacity and solutions road map .

What Went Well and What Went Wrong

  • What Went Well

    • Record Q2 revenue with broad outperformance: “record revenue” $73.4M (+20% YoY) with 61% non‑GAAP gross margin and +$6.4M adjusted EBITDA; YTD FCF $54.3M and YTD operating cash flow $85.1M .
    • Contract momentum and visibility: RPOs to $690.1M (+516% YoY) and backlog to $736.1M (+245% YoY), underpinned by German-funded €240M satellite services, NATO, U.S. Navy, NRO, and DIU expansions; CEO: “business is humming… confidence about solid growth acceleration, locked in for FY 2027” .
    • AI-enabled solutions traction: NGA Luno B $12.8M AAMOR award for MDA; management emphasized partnerships with Anthropic/Google/NVIDIA to fine‑tune multimodal models on Planet’s data—“Planet is the only space company that’s truly central to AI” .

  • What Went Wrong

    • Government budget uncertainty and EOCL risk: management flagged fluid U.S. federal budgets/CRs and potential program mix (EOCL/NASA) as uncertainties; tone: more opportunity than risk but still a watch item .
    • Civil Government softness and customer count: Civil revenue down ~4% YoY in Q2 (NICFI roll‑off), and EoP customer count declined to 908 as sales focus shifted to larger accounts/self‑serve for smaller customers .
    • Gross margin mix variability ahead: Q2 gross margin beat aided by high‑margin usage; management cautioned margin may vary with revenue mix (early‑phase satellite services are lower‑margin; expand later) .

Financial Results

Note: Q3 FY2026 actuals are not yet reported. Table shows trajectory (Q1→Q2) and Q3 guidance.

MetricQ1 FY2026 (Apr 30, 2025)Q2 FY2026 (Jul 31, 2025)Q3 FY2026 Guidance (as of Sep 8)
Revenue ($M)$66.3 $73.4 $71–$74
GAAP Gross Margin55% 58% 55–56%
Non‑GAAP Gross Margin59% 61% 55–56%
GAAP Net Loss ($M)$(12.6) $(22.6) N/A
GAAP EPS$(0.04) $(0.07) N/A
Non‑GAAP EPS$0.00 $(0.03) N/A
Adjusted EBITDA ($M)$1.2 $6.4 $(4) to $0
Free Cash Flow ($M, quarterly)$8.0 $46.3 N/A
Cash, Cash Equivalents & ST Inv. ($M)$226.1 $271.5 N/A

Segment and regional growth (YoY) context:

CategoryQ1 FY2026 YoYQ2 FY2026 YoY
Defense & Intelligence>20% ~41%
Civil GovernmentDown (NICFI roll‑off) ~4% decline
CommercialFlat ~6%
APAC Region>30% >50%
EMEA Region>30% >30%
North AmericaDown Roughly flat
Latin AmericaDown Slightly down

Key KPIs

KPIQ1 FY2026Q2 FY2026
RPOs ($M)$451.9 $690.1
Backlog ($M)$527.0 $736.1
% Recurring ACV97% 98%
NDR103% 107%
NDR incl. Winbacks104% 108%
EoP Customer Count919 908

Guidance Changes

MetricPeriodPrevious Guidance (Q1 call, Jun 4)Current Guidance (Q2 PR/call, Sep 8)Change
Revenue ($M)Q3 FY2026N/A$71–$74 New quarterly outlook
Non‑GAAP Gross MarginQ3 FY2026N/A55–56% New quarterly outlook
Adjusted EBITDA ($M)Q3 FY2026N/A$(4) to $0 New quarterly outlook
CapEx ($M)Q3 FY2026N/A$18–$24 New quarterly outlook
Revenue ($M)FY2026$265–$280 $281–$289 Raised (higher range, higher low end)
Non‑GAAP Gross MarginFY202655–57% 55–57% Maintained
Adjusted EBITDA ($M)FY2026$(12) to $(7) $(7) to $0 Raised (narrower loss to breakeven)
CapEx ($M)FY2026$50–$65 $65–$75 Raised (fleet build)
Free Cash FlowFY2026N/AExpect FCF positive for FY26 New qualitative target

Note: On the Q2 call, management cited 55–57% for Q3 non‑GAAP gross margin; the press release guides 55–56%—we anchor to the press release and note the call remark for context .

Earnings Call Themes & Trends

TopicQ1 FY2026 (Prior)Q2 FY2026 (Latest Call)Current Period (Q3 FY2026 pre‑earnings)
AI/TechnologyAircraft Detection analytic feed; partnering with Anthropic/Google to fine‑tune models on Planet data .“Only space company truly central to AI”; AI “upstairs and downstairs” on Pelican/Tanager; Anthropic/Google/NVIDIA partnerships .NGA Luno B $12.8M award for AI‑enabled Maritime Operations (AAMOR) with SynMax .
Product/ConstellationsPelican‑2 commissioned; Tanager‑1 >300k sq km/day; modular platform progress .Launched two additional Pelicans; 4 Pelicans in orbit; multiple launches slated next year .Pelican‑3/‑4 launched Aug 26; commissioning underway .
D&I MomentumEuropean 8‑figure MDA expansion; JSAT satellite services progressing .D&I +41% YoY; NRO EOCL expansion; DIU option; backlog drivers (Germany, JSAT) .US Navy $7.5M renewal for vessel detection (Pacific) ; 8‑figure D&I imagery renewal .
Civil/GovernmentNICFI roll‑off; CARB SDPP (Tanager data) opportunity; BKG expansion .Civil down ~4% YoY; workshops and monitoring/enforcement use cases .Continued activity with NGA Luno B; broader policy enforcement and MDA themes .
Regional TrendsAPAC/EMEA >30% YoY; NA/LATAM down .APAC >50% YoY; EMEA >30% YoY; NA flat; LATAM slightly down .Reinforced by defense awards in APAC and Europe .
Regulatory/BudgetCRs common; budgets fluid; opportunities in efficient commercial solutions .EOCL/NASA budget uncertainty; “more opportunities than risks” .No new disclosures; monitoring U.S. federal budget dynamics [—].

Management Commentary

  • Will Marshall (CEO): “Our second quarter results demonstrate incredibly strong momentum across our business, with record revenue and substantial growth in our backlog… reinforcing our commitment to delivering the most comprehensive and timely data and insights to our customers worldwide.”
  • Ashley F. Johnson (President & CFO): “We delivered record revenue, our third quarter of adjusted EBITDA profitability, and our second quarter of positive free cash flow… our significant backlog gives us good visibility into FY’27 and beyond.”
  • On AI positioning (CEO): “Planet is the only space company that’s truly central to AI… AI upstairs and AI downstairs.”
  • On growth visibility (CEO): “Our financials are humming, the cash and backlog in particular are unparalleled… gives us confidence about solid growth acceleration, locked in for FY 2027.”

Q&A Highlights

  • Backlog composition and working capital: Satellite services contracts are working-capital positive and help fund fleet build-outs; payment milestones front‑weighted in early years, then managed services .
  • Gross margin cadence: Q2 upside aided by high‑margin usage; margins may vary with mix as satellite services are lower margin early and expand later .
  • Usage dynamics: Elevated government usage may revert to budgeted levels; early renewals possible but not assumed in guide .
  • Satellite services capacity: JSAT/Germany deals utilize a small fraction of total capacity; strong synergy with core data business .
  • MDA competitiveness: Sole-sourced US Navy MDA due to unmatched broad‑area scan; MDA is Planet’s most mature AI‑enabled solution .
  • Budget/EOCL/NASA: Management acknowledges uncertainty but sees shift toward efficient commercial buys; CRs limit “new starts” but maintain continuity .

Estimates Context

  • S&P Global consensus estimates for Q3 FY2026 (or “Q3 2025”) could not be retrieved at this time due to API request limits; therefore, we cannot provide a vs‑consensus comparison in this report. Values would be retrieved from S&P Global if available.
  • For orientation, Planet guided Q3 revenue to $71–$74M and non‑GAAP gross margin to 55–56%, with adjusted EBITDA of $(4) to $0; use these to frame expectations pending published Street consensus and actuals .

Key Takeaways for Investors

  • Setup into Q3 print is constructive: momentum in D&I, AI-enabled solutions, and satellite services, plus multi‑year visibility from RPO/backlog provide support for raised FY26 revenue and FCF‑positive target .
  • Mix is the swing factor for gross margin and EBITDA quarter‑to‑quarter; near‑term margin variability likely as satellite services ramp, but longer‑term margins expected to normalize higher as contracts enter managed‑service phase .
  • Q3 period order flow validates demand: NGA Luno B ($12.8M), US Navy ($7.5M), and an 8‑figure D&I renewal, alongside Pelican fleet expansion, should underpin usage and solutions velocity into FY2027 .
  • Civil government remains a watch item (post‑NICFI), but policy monitoring/enforcement and disaster response use cases provide a path to re‑acceleration; regional growth is skewing toward APAC/EMEA .
  • U.S. federal budget dynamics (EOCL/NASA/CRs) introduce uncertainty; management’s thesis leans toward commercial efficiency and solution‑based buying, which is favorable to Planet’s model .
  • Near‑term trading implication: stock likely sensitive to Q3 print vs raised guide and any updates on large satellite services pipeline; catalysts include additional sovereign services, MDA deployments, and Pelican milestones .
  • Medium‑term thesis: increasing embeddedness of AI‑enabled solutions, rising high‑value D&I contracts, and capital‑efficient satellite services funding fleet deployment can expand TAM and improve cash generation durability .

Appendix: Additional Q3 FY2026 Period Press Releases

  • NGA Luno B (AAMOR) award: $12.8M for AI‑enabled MDA (Planet + SynMax) .
  • U.S. Navy vessel detection/monitoring renewal: $7.5M for Pacific monitoring (SeaVision, SynMax integration) .
  • 8‑figure D&I high‑resolution imagery renewal .
  • Pelican‑3/‑4 launch and commissioning; multiple SuperDoves shipped to launch site .

Notes on sources:

  • Q2 FY2026 8‑K/press release (Sep 8, 2025) contain full financials, reconciliations, KPIs, and FY/Q3 guidance -.
  • Q1 FY2026 8‑K/press release (Jun 4, 2025) provides prior quarter comps and initial FY26 guidance -.
  • Q2 FY2026 earnings call transcript (Sep 8, 2025) provides segment/region growth, margin and cash flow color, and pipeline commentary -.
  • As of this report, Q3 FY2026 (Q3 2025) 8‑K/earnings call were not available in the document set searched (Nov 1–Dec 31 window returned no 8‑K 2.02 filings) [—].