Planet Labs PBC Reports Record Revenue and Strategic Growth

Planet Labs Pbc ((PL)) has held its Q4 earnings call. Read on for the main highlights of the call.

Planet Labs PBC’s recent earnings call painted a picture of optimism and progress, marked by record-breaking revenue and growth. The company celebrated significant contracts, such as the landmark JSAT deal, and highlighted advancements in satellite launches and AI collaborations. Despite these achievements, challenges in the commercial sector and ongoing financial adjustments were acknowledged.

Record Revenue and Growth

Planet Labs achieved a remarkable $244.4 million in revenue, representing an 11% year-over-year growth. The company also reported a record non-GAAP gross margin of 60%, up from 54% the previous year, showcasing its robust financial performance.

Major Contract with JSAT

A significant highlight was the $230 million commercial agreement with JSAT, which involves building, launching, and operating a constellation of 10 high-resolution Pelican satellites. This deal underscores Planet Labs’ capability and reputation in the satellite industry.

Defense and Intelligence Sector Growth

The defense and intelligence sector saw impressive growth, with revenue increasing by more than 20% for fiscal year 2025. Notable contracts included a prototype for the Defense Innovation Unit and a substantial ACV renewal by the Department of Defense.

Pelican and Tanager Satellite Launches

The company successfully launched 74 satellites into orbit, including the Pelican 2, which is performing well and providing valuable insights. These launches are critical to Planet Labs’ mission of expanding its satellite fleet.

AI and Data Platform Innovations

Planet Labs is collaborating with Anthropic to explore AI opportunities, aiming to enhance model accuracy and deliver new capabilities. The release of a physics-based resolution sharpening technique in Q4 is a testament to their innovative approach.

Commercial Sector Headwinds

Challenges were noted in the commercial sector, particularly in agriculture, with revenue down more than 10% year-on-year. However, there are signs of stabilization in recent quarters, indicating potential recovery.

Adjusted EBITDA Loss

Despite achieving positive adjusted EBITDA in Q4, the full-year adjusted EBITDA loss was $10.6 million, a significant improvement from the $55.3 million loss in fiscal year 2024.

Capital Expenditures and Cash Burn

Planet Labs reported full-year capital expenditures of approximately $49.6 million, reflecting significant investments in next-generation fleets. The company is currently in a peak CapEx investment cycle.

Forward-Looking Guidance

Looking ahead, Planet Labs provided optimistic guidance, aiming to double its revenue growth rate by fiscal year 2027 compared to fiscal 2026. Supported by the JSAT contract and new AI-enabled solutions, the company plans to launch nearly 100 satellites over the next two years. They project fiscal year 2026 revenue to be between $260 million and $280 million, with non-GAAP gross margins of 55% to 57%. The company also aims to reduce its cash burn by 50%, targeting positive cash flow within 24 months.

In summary, Planet Labs PBC’s earnings call highlighted a positive sentiment with record revenue and strategic advancements. While challenges in the commercial sector persist, the company’s robust contracts and innovative initiatives position it well for future growth. Investors and stakeholders can look forward to Planet Labs’ continued progress and expansion in the satellite and AI domains.