Planet Labs Q3 Earnings Raise FY26 Outlook

Planet Labs PBC (NYSE: PL) reported record revenue and its fourth consecutive quarter of adjusted EBITDA profitability for the quarter ended Oct. 31, 2025, in a Dec. 10, 2025 press release. The company raised its full-year FY26 revenue and profitability guidance following the results.

Record Q3 Revenue and Profitability

Planet posted revenue of $81.3 million, a 33% increase year over year, marking its highest quarterly sales to date. Adjusted EBITDA was $5.6 million, continuing a four-quarter streak of profitability on this basis. Non-GAAP net income per share was breakeven, while GAAP results showed a net loss of $59.2 million, or $0.19 per share. GAAP gross margin declined to 57% from 61% a year earlier, and non-GAAP gross margin fell to 60% from 64%. Year-to-date operating cash flow reached $113.7 million, with free cash flow totaling $55.2 million.

Management attributed the top-line growth to a shift toward larger, longer-term contracts and deeper engagements with government and defense customers.

Backlog, Guidance, and Balance Sheet

Remaining performance obligations (RPO) rose 361% year over year to $672 million, while backlog increased 216% to $734 million. About one-third of RPO and 37% of backlog relate to the next 12 months, with 59–61% covering the following 24 months. The company highlighted several major contract wins, including the NGA Luno B program, an expansion with NATO for AI-enabled monitoring, a multi-year satellite services contract with JSAT, and additional awards with the U.S. Navy and international defense and intelligence clients.

For Q4 FY26, Planet guided revenue between $76 million and $80 million, non-GAAP gross margin of 50–52%, an adjusted EBITDA loss of $7 million to $5 million, and capital expenditures of $22 million to $26 million. The company raised full-year FY26 guidance to revenue of $297 million to $301 million, non-GAAP gross margin of 57–58%, adjusted EBITDA profit of $6 million to $8 million—its first annual adjusted EBITDA profit—and capital expenditures of $81 million to $85 million. Management reiterated its expectation to be free-cash-flow positive for FY26 and said the backlog supports sustaining Q4 growth into fiscal 2027.

In September 2025, Planet raised $460 million through convertible debt with a 0.5% coupon and five-year term. After purchasing a capped call to limit dilution up to $18.04, net proceeds were about $406 million. The company ended the quarter with $677.3 million in cash, cash equivalents, and short-term investments, which management said supports ongoing growth investments.

Planet also signaled a push into artificial intelligence (AI) and fleet expansion. It acquired Bedrock Research to accelerate AI capabilities, launched two Pelican satellites and 36 SuperDoves since quarter-end, and announced a research and development initiative with Google to explore scaled AI computing in space. Will Marshall, co-founder, CEO, and chairperson, said, “We’re seeing strong traction with our AI-enabled global monitoring solutions.”