Planet Labs (NYSE: PL) delivered a standout fiscal first quarter, reporting record revenue of $94.2 million—a 42% year-over-year surge that comfortably topped the Zacks consensus estimate of $89.8 million. The company's backlog swelled 72% to over $906 million, fueled by strong demand from government and defense clients.
Revenue and Profitability Highlights
Non-GAAP loss per share came in at $0.03, matching analyst expectations. While the top-line beat provided a clear win for investors, profitability remained under pressure. Gross margin slipped to 54% from 55% a year earlier, and non-GAAP gross margin dropped to 56% from 59%. The company reported that 99% of annual contract value at quarter-end was recurring revenue, underscoring the strength of its subscription-based model.
Net Loss and Adjusted EBITDA Swing
Net loss widened sharply to $138.9 million from $12.6 million in the prior-year period, largely due to a $106.5 million non-cash warrant-liability revaluation tied to the surge in Planet's share price. Adjusted EBITDA swung to a $1.0 million loss from a $1.2 million profit a year ago, and free cash flow was negative $2.5 million.
Defense Contracts and Backlog Details
Defense contracts remained a key driver. The National Geospatial-Intelligence Agency (NGA) awarded Planet a $21.9 million one-year extension on the Luno B maritime surveillance deal, as well as a new Global Monitoring Service award for crisis response. NGA selected 13 vendors for its $200 million Luno B commercial data contract, with Planet Labs Federal, BlackSky Geospatial Solutions, and Maxar Mission Solutions among the chosen firms. The company cautioned that its backlog figure includes contracts that customers can cancel at any time or where funding is not yet secured, meaning full realization is not guaranteed.
New Hardware and Satellite Launches
Planet continued to expand its satellite constellation, launching three Pelican satellites in May, including Sweden's first sovereign reconnaissance satellite. Earlier this week, the company shipped Pelican-11 to Vandenberg Space Force Base for a SpaceX rideshare; this satellite is designated for testing and will not provide commercial data.
Outlook and Market Context
Shares of Planet had risen 25.1% in the month leading up to the earnings report, trading above the average analyst price target, according to Syndicated StockStory. The stock had faced pressure earlier when a Blue Origin New Glenn engine-test explosion raised concerns about launch capacity, though Planet does not use Blue Origin for its satellites. For the fiscal second quarter, Planet guided revenue between $102 million and $107 million, with adjusted EBITDA expected to range from zero to $5 million. The company also reiterated its fiscal 2027 revenue forecast of $425 million to $441 million. CEO Will Marshall called the quarter an 'excellent start to the year,' attributing demand growth to artificial intelligence. CFO Ashley Johnson noted that the 72% backlog increase improves visibility into upcoming revenue. The key question now is whether large government deals and Pelican orders can sustain revenue above forecasts without further eroding cash flow or margins.
