Planet Labs 2026 Q1 Earnings Beats Expectations as Net Loss Reduces 56.9%
Daily EarningsThursday, Jun 5, 2025 3:06 am ET
36min readPlanet Labs (PL) reported its fiscal 2026 Q1 earnings on June 4th, 2025. The company surpassed expectations with a record revenue of $66.3 million, marking a 10% increase year-over-year, while successfully narrowing its net loss to $12.6 million from $29.3 million. Notably, achieved positive free cash flow of $8.0 million for the first time. The company raised the lower end of its annual revenue forecast, projecting between $265 million and $280 million, signaling confidence in continued growth driven by AI-enabled solutions and satellite services.
Revenue
Planet Labs demonstrated a revenue increase of 9.6% in fiscal 2026 Q1, amounting to $66.27 million compared to $60.44 million in the previous year. The Civil Government sector contributed $16.28 million, with the Commercial segment adding $13.34 million. Leading the revenue was the Defense & Intelligence sector, which generated $36.65 million, bringing the total revenue to $66.27 million.
Earnings/Net Income
Planet Labs reported a significant reduction in losses, with an EPS improvement to $0.04 per share in 2026 Q1 from a loss of $0.10 per share in 2025 Q1. The net loss narrowed to $12.63 million, a 56.9% improvement from the previous year's $29.29 million net loss. The improved EPS indicates a positive financial trajectory.
Price Action
Planet Labs’ stock exhibited a mixed performance, decreasing by 0.75% on the latest trading day and remaining steady over the past week. However, the stock showed a notable increase of 13.68% month-to-date.
Post Earnings Price Action Review
The strategy of purchasing Planet Labs shares after a quarter-over-quarter revenue drop and holding for 30 days proved ineffective, yielding a negative return of 23.50%, substantially underperforming the benchmark's 38.41% return. This resulted in an excess return of -61.91% and a compound annual growth rate (CAGR) of -8.62%, indicating significant losses over a three-year period. The strategy's Sharpe ratio stood at -0.12, highlighting high volatility at 70.04% and a maximum drawdown of -79.94%. These figures suggest substantial risk and potential for loss, reflecting the challenges faced by investors employing this approach.
CEO Commentary
“During Q1, we had an excellent first quarter, exceeding our expectations, demonstrating solid validation of our strategic direction and great execution,” said Will Marshall, Co-Founder, Chief Executive Officer and Chairperson. The Company is responding to strong demand signals by prioritizing the delivery of global insights at scale through AI-enabled solutions and rapidly expanding its satellite services offering. The growth in revenue and the transition to profitability highlight our commitment to strategic investments that align with market needs, reinforcing our position as a leader in the industry.
Guidance
The Company anticipates meaningful revenue growth rate acceleration, supported by its strong balance sheet of approximately $226.1 million in cash, cash equivalents, and short-term investments. This outlook is bolstered by the successful execution of multi-year contracts and the introduction of innovative products. As we continue to expand our service offerings, we expect to capitalize on the increasing demand for AI-driven insights and satellite data solutions, positioning Planet for sustained growth in the upcoming quarters.
Additional News
Planet Labs announced a significant expansion of its contract with the Welsh Government, upgrading to a six-figure deal that provides enhanced satellite imagery access to all eight Welsh universities. This partnership supports research in agriculture, water management, and emergency response. Furthermore, Gary B. Smith, CEO of , has been nominated as a Class I director for Planet Labs’ board, bringing extensive expertise in technology and operations. Lastly, Planet Labs secured a seven-figure contract with the German Federal Ministry, enabling comprehensive satellite data access for land and water management across Germany, streamlining daily insights for government agencies.
Revenue
Planet Labs demonstrated a revenue increase of 9.6% in fiscal 2026 Q1, amounting to $66.27 million compared to $60.44 million in the previous year. The Civil Government sector contributed $16.28 million, with the Commercial segment adding $13.34 million. Leading the revenue was the Defense & Intelligence sector, which generated $36.65 million, bringing the total revenue to $66.27 million.
Earnings/Net Income
Planet Labs reported a significant reduction in losses, with an EPS improvement to $0.04 per share in 2026 Q1 from a loss of $0.10 per share in 2025 Q1. The net loss narrowed to $12.63 million, a 56.9% improvement from the previous year's $29.29 million net loss. The improved EPS indicates a positive financial trajectory.
Price Action
Planet Labs’ stock exhibited a mixed performance, decreasing by 0.75% on the latest trading day and remaining steady over the past week. However, the stock showed a notable increase of 13.68% month-to-date.
Post Earnings Price Action Review
The strategy of purchasing Planet Labs shares after a quarter-over-quarter revenue drop and holding for 30 days proved ineffective, yielding a negative return of 23.50%, substantially underperforming the benchmark's 38.41% return. This resulted in an excess return of -61.91% and a compound annual growth rate (CAGR) of -8.62%, indicating significant losses over a three-year period. The strategy's Sharpe ratio stood at -0.12, highlighting high volatility at 70.04% and a maximum drawdown of -79.94%. These figures suggest substantial risk and potential for loss, reflecting the challenges faced by investors employing this approach.
CEO Commentary
“During Q1, we had an excellent first quarter, exceeding our expectations, demonstrating solid validation of our strategic direction and great execution,” said Will Marshall, Co-Founder, Chief Executive Officer and Chairperson. The Company is responding to strong demand signals by prioritizing the delivery of global insights at scale through AI-enabled solutions and rapidly expanding its satellite services offering. The growth in revenue and the transition to profitability highlight our commitment to strategic investments that align with market needs, reinforcing our position as a leader in the industry.
Guidance
The Company anticipates meaningful revenue growth rate acceleration, supported by its strong balance sheet of approximately $226.1 million in cash, cash equivalents, and short-term investments. This outlook is bolstered by the successful execution of multi-year contracts and the introduction of innovative products. As we continue to expand our service offerings, we expect to capitalize on the increasing demand for AI-driven insights and satellite data solutions, positioning Planet for sustained growth in the upcoming quarters.
Additional News
Planet Labs announced a significant expansion of its contract with the Welsh Government, upgrading to a six-figure deal that provides enhanced satellite imagery access to all eight Welsh universities. This partnership supports research in agriculture, water management, and emergency response. Furthermore, Gary B. Smith, CEO of , has been nominated as a Class I director for Planet Labs’ board, bringing extensive expertise in technology and operations. Lastly, Planet Labs secured a seven-figure contract with the German Federal Ministry, enabling comprehensive satellite data access for land and water management across Germany, streamlining daily insights for government agencies.
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