What caused PL's EPS decline in Q3 2025?

The decline in Planet Labs' (PL) EPS in Q3 2025 can be attributed to several key factors:

1. **Revenue Shortfall**: While Planet Labs reported an 11% year-on-year revenue increase, reaching a record $61.6 million, it still fell short of analyst expectations by 3.1%. This shortfall in revenue contributed to the EPS decline.
2. **Cost Management**: The company's largest operating expense was Research & Development (R&D) costs, amounting to $97.5 million, which is a significant portion of the total expenses. The inefficiencies in managing costs, especially in R&D, likely impacted the net profit, thereby affecting the EPS.
3. **Strategic Transitions**: Planet Labs is undergoing a transition towards selling AI-enabled solutions and restructuring its business model. These strategic shifts can sometimes lead to short-term inefficiencies that impact profitability and, consequently, the EPS.

In summary, the decline in Planet Labs' EPS in Q3 2025 is a result of a combination of revenue shortfall, cost management issues, and strategic transitions.