From Yahoo Finance: 2025-03-21 13:29:00

Planet Labs received a Buy rating from Benchmark analyst Josh Sullivan with a price forecast of $7. The company reported Q4 adjusted losses of 8 cents per share, missing the consensus of 2 cents, with revenue of $61.6 million, up 5% year over year but missing the $61.87 million consensus.

Planet Labs expects revenue in the range of $61 million to $63 million for Q1 FY26 and $260 million to $280 million for FY26. The $230 million commercial agreement with JSAT is seen as a pivotal shift for Planet Labs, reducing cash burn by 50% in FY26.

The strategic decision to sell JSAT satellite hardware directly is expected to lead to positive free cash flow within two years. Planet Labs plans to focus on leveraging its satellite data library and AI products in FY26, anticipating strong growth in the commercial agricultural market. PL shares are trading lower by 12.5% to $3.71.

Sullivan notes that transitioning to solution-based products in FY25 sets the stage for FY26. Once the JSAT constellation is fully deployed, Planet Labs will sell data feeds to third-party customers, boosting margins. Recent customer wins and increased data usage in the agricultural market are expected to drive growth in FY26.

Read more: Planet Labs’ Pivot To Solutions And AI Signals Long-Term Upside, Says Analyst