Planet Labs PBC Shares Soar 27.82% on Strong Q1 Earnings

Planet Labs PBC (PL) shares surged 27.82% in pre-market trading on June 5, 2025, driven by a strong first-quarter earnings report that highlighted significant financial improvements.

In its Q1 2026 earnings call, Planet Labs reported a 10% increase in revenue, reaching $66.3 million, which exceeded analyst estimates. This growth was accompanied by a notable 262% year-over-year increase in remaining performance obligations (RPOs) to $451.9 million and a 140% increase in backlog to $527.0 million. These figures underscore the company's expanding customer base and growing demand for its satellite imagery and data analytics services.

The company also achieved a significant milestone by reporting its first-ever quarter of positive free cash flow. This financial achievement, coupled with sequential profitability on an adjusted EBITDA basis, indicates a strong operational performance and effective cost management. Additionally, the loss from operations decreased by 34%, from $34.6 million to $22.8 million, further demonstrating the company's progress towards profitability.

Despite these positive developments, Planet Labs faced challenges in customer count and sector-specific revenues. However, the overall financial performance and strategic initiatives, such as expanding its satellite constellation and enhancing data analytics capabilities, position the company for continued growth and market leadership in the satellite imagery sector.