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Planet Labs PBC (PL)·Q4 2025 Earnings Summary

Executive Summary

  • Record revenue of $61.6M (+5% YoY), record GAAP/non-GAAP gross margins (62%/65%), and the company’s first quarter of adjusted EBITDA profitability ($2.4M); backlog surged to $498.5M (+115% QoQ) and RPOs to $407.5M (+179% QoQ), underpinning growth visibility .
  • Versus consensus, Q4 revenue slightly missed ($61.6M vs $61.9M*) and EPS was a larger miss (-$0.08 non-GAAP vs -$0.02*), while prior quarters showed revenue misses but EPS beats; Q4 margin outperformance and adjusted EBITDA profitability were notable positives .
  • Strategic catalysts: signed $230M Pelican satellite services contract with SKY Perfect JSAT (cash payments weighted to early years, ~7-year revenue recognition), selected as a prime for NGA’s Luno B IDIQ ($200M ceiling), and Pelican-2 achieved First Light; management signaled line of sight to positive free cash flow within 24 months .
  • FY26 guidance: revenue $260–$280M, non-GAAP GM 55–57%, adjusted EBITDA loss ($13)–($7)M, CapEx $50–$65M; Q1 FY26 revenue $61–$63M, non-GAAP GM 58–60%, adjusted EBITDA loss ($3)–($2)M .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EBITDA positive for the first time ($2.4M) on record gross margins; management highlighted margin improvement driven by cloud infrastructure efficiencies despite satellite depreciation and partner costs .
  • Backlog and RPOs expanded sharply (Backlog $498.5M; RPOs $407.5M), with ~38% of backlog expected to be recognized in the next 12 months, supporting management’s confidence to “at least double” revenue growth rate in FY’27 vs FY’26 .
  • Strategic wins: $230M JSAT Pelican constellation (Planet monetizes global capacity), Luno B IDIQ prime selection, and expansions with Bayer and Syngenta; “we expect the deal to be meaningfully accretive to cash flow, including in fiscal ’26” .

What Went Wrong

  • Non-GAAP EPS was -$0.08 in Q4 (a larger loss vs consensus), impacted by an ~($16.2)M warrant liability fair-value change tied to stock price appreciation; GAAP net loss widened to ($35.2)M .
  • Commercial sector revenue declined >10% YoY in FY’25 (though stabilizing), reflecting lingering ag-sector headwinds despite recent signs of improvement and targeted solutions focus .
  • Customer count fell sequentially to 976 (intentional focus on larger accounts), which may weigh on headline adoption optics; churn was primarily sub-$50k ACV accounts, as the company steers smaller customers to the platform .

Financial Results

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Millions)$61.092 $61.266 $61.554
GAAP Gross Margin (%)53% 61% 62%
Non-GAAP Gross Margin (%)58% 64% 65%
GAAP EPS ($)($0.13) ($0.07) ($0.12)
Non-GAAP EPS ($)($0.06) ($0.02) ($0.08)
Adjusted EBITDA ($USD Millions)($4.367) ($0.242) $2.378
Actual vs S&P Global ConsensusQ2 2025Q3 2025Q4 2025
Revenue Actual ($M)61.092 61.266 61.554
Revenue Consensus ($M)61.823*63.116*61.885*
EPS Actual (Non-GAAP, $)(0.06) (0.02) (0.08)
EPS Consensus ($)(0.063)*(0.040)*(0.023)*

Values retrieved from S&P Global.*

Segment and Region Commentary (FY’25; directional trends):

CategoryFY’25 Performance
Defense & IntelligenceRevenue grew >20% YoY; strong interest in MDA and GMS solutions
Civil GovernmentRevenue grew ~15% YoY; ESA and Hellenic Space Center wins
CommercialDown >10% YoY; showing stabilization, improvement into planting season; Bayer and insurance expansions
EMEA>15% YoY revenue growth
Latin America~30% YoY revenue growth
Asia PacificNearly 15% YoY revenue growth
North America~5% YoY revenue growth

KPIs and Balance Sheet

KPIQ4 2025
Percent of Recurring ACV (%)97%
End-of-Period Customer Count976
Net Dollar Retention Rate (%)106% (107% with win-backs)
Remaining Performance Obligations ($M)$407.5
Backlog ($M)$498.5
Cash, Cash Equivalents & STI ($M)$222.1

Non-GAAP Adjustments Note: Q4 GAAP net loss includes ~($16.2)M loss from change in fair value of warrant liabilities; per-share impact ~($0.06) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q1 FY26N/A$61–$63 New
Non-GAAP Gross Margin (%)Q1 FY26N/A58–60 New
Adjusted EBITDA ($M)Q1 FY26N/A($3)–($2) New
CapEx ($M)Q1 FY26N/A$11–$16 New
Revenue ($M)FY26N/A$260–$280 New
Non-GAAP Gross Margin (%)FY26N/A55–57 New
Adjusted EBITDA ($M)FY26N/A($13)–($7) New
CapEx ($M)FY26N/A$50–$65 New

Management further guided that cash burn should decline ~50% in FY26, with line of sight to positive free cash flow within 24 months .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 FY25)Current Period (Q4 FY25)Trend
AI/Technology InitiativesAnnounced Tanager-1 launch and AI-enabled products; NVIDIA Jetson on Pelican-2 Collaboration with Anthropic to fine-tune Claude on satellite data; AI focus as strategic theme to accelerate solutions Intensifying
Satellite Services StrategyPursued pilots and government wins; building Pelican/Tanager fleets $230M JSAT Pelican constellation; monetizing global capacity outside partner AOI; selective pipeline of similar deals Expanding
Government Demand & IDIQsNASA CSDA $19.95M order; NATO APS Selected as prime for NGA Luno B (Luno B IDIQ, $200M ceiling) Strengthening
Margins & ProfitabilitySequential gross margin improvements; target for adjusted EBITDA profitability in Q4 Record GAAP/non-GAAP GMs; first adjusted EBITDA positive quarter Improving
Regional TrendsBroad growth across geographies; EMEA/LATAM leading EMEA >15%, LATAM ~30%, APAC nearly 15%, NA ~5% YoY (FY’25) Stable-to-positive
Commercial Ag HeadwindsDeclines in ag; focusing on solutions Stabilization; Bayer and Syngenta expansions; ramp into growing season Stabilizing
CapEx CycleElevated due to fleet builds Peak growth CapEx in FY26; ~100 satellites planned over next two years in US Peak then normalizing

Management Commentary

  • “We… reached our target of adjusted EBITDA positive in Q4, the first time in the company’s history… Backlog increased in the quarter to almost $0.5 billion… we see a clear path to at least double our revenue growth rate in FY ’27 compared with FY ’26.” — Will Marshall .
  • “Under [JSAT] agreement, we expect to recognize $230 million of revenue over approximately the next seven years with cash payments weighted upfront… meaningfully accretive to cash flow, including in fiscal ’26.” — Ashley Johnson .
  • “We expect non-GAAP gross margin for fiscal 2026 to be between 55% to 57%… Our long-term target for non-GAAP gross margin continues to be 70% to 80%.” — Ashley Johnson .
  • “This year, our strategic focus will be a big step up in AI… we believe AI can enhance the extraction of value from satellite data, accelerate delivery of insights and expand access.” — Will Marshall .

Q&A Highlights

  • Free cash flow trajectory: Peak CapEx in FY26; JSAT cash payments front-loaded to fund working capital; management targets positive free cash flow within 24 months .
  • AI monetization: Near-term focus on AI-enabled solutions (MDA, GMS); foundation-model work with Anthropic aims to reduce time-to-value and broaden user access .
  • Growth doubling in FY’27: Base plan anchored to existing backlog and multiyear contracts; upside from additional satellite services deals, AI solutions, and Pelican/Tanager data coming online .
  • Government/macro uncertainties: Guidance incorporates conservative assumptions on timing and usage patterns; management sees efficiency-seeking agencies as a tailwind and indicates prior proof points with NASA/NRO .
  • Customer mix and NDRR: Focus on larger operationally embedded solutions increases average ACV; smaller customers increasingly served via platform to improve sales efficiency .

Estimates Context

  • Q4 FY25: Revenue $61.6M vs $61.9M consensus*; Non-GAAP EPS -$0.08 vs -$0.02 consensus* — bold margin outperformance and adjusted EBITDA positive, but EPS missed and revenue slightly below.
  • Prior quarters: Revenue missed in Q2/Q3, but EPS beat both quarters (less negative than expected); suggests execution on costs and margin while top-line pacing lagged consensus near-term .
  • FY26 consensus context: Street revenue estimate ~$284.0M*, above company midpoint ($270M); monitor revisions post backlog/RPO spike and JSAT cash/timing disclosures.
PeriodRevenue Actual ($M)Revenue Consensus ($M)EPS Actual (Non-GAAP, $)EPS Consensus ($)
Q2 202561.092 61.823*(0.06) (0.063)*
Q3 202561.266 63.116*(0.02) (0.040)*
Q4 202561.554 61.885*(0.08) (0.023)*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Backlog/RPO step-change is the key narrative: +115% QoQ backlog and +179% QoQ RPOs provide multi-quarter revenue visibility and are the primary catalyst for growth acceleration into FY’27 .
  • Bold: First adjusted EBITDA-positive quarter with record gross margins indicates operating leverage and better cost discipline, even as CapEx remains elevated near term .
  • Satellite services strategy is working: $230M JSAT contract de-risks Pelican build, front-loads cash, and opens global capacity for Planet to monetize — monitor additional services deals .
  • Near-term guide is conservative; watch margin mix: FY26 non-GAAP GM 55–57% reflects partner mix, satellite depreciation, and JSAT cost flows; margin trajectory should improve as Pelican/Tanager capacity monetization ramps .
  • Commercial sector stabilization is emerging (ag season ramp, Bayer/Syngenta), but government remains core growth engine (NGA Luno B, DIU prototype); prioritize defense/civil demand signals and award timing .
  • Actionable catalysts: Pelican launches/First Light, AI-enabled solution deployments (MDA/GMS), incremental IDIQ/task orders, and potential new satellite services partnerships — potential upside vs current FY26 plan .
  • Risk checks: Warrant valuation volatility impacting EPS, macro/government funding timing, and accounting judgment on long-term contracts; look for clarity on services revenue recognition pacing and CapEx normalization path .

Management and Document References:

  • Q4 FY25 8-K press release and financials .
  • Q4 FY25 earnings call transcript (prepared remarks and Q&A) .
  • Additional Q4 press: public earnings press release – and JSAT contract –.
  • Prior quarters Q3 and Q2 FY25 8-Ks for trend analysis – –.