Planet Labs reported strong financial results in Q1 FY2026, with growth across sectors
From Nasdaq: 2025-06-04 18:07:00
Planet Labs PBC reported strong financial results in Q1 FY2026, with revenue of $66.3 million, a 10% year-over-year growth, driven by defense and intelligence contract wins. Non-GAAP gross margin expanded to 59%, and adjusted EBITDA was $1.2 million, marking the second consecutive quarter of profitability. The company generated $17.3 million in operating cash flow and achieved its first-ever positive free cash flow of $8 million. Backlog increased to over half a billion dollars, reinforcing growth prospects. Guidance for Q2 FY2026 includes revenue of $65-$67 million and adjusted EBITDA loss of $2-$4 million.
Revenue growth in the Defense & Intelligence sector exceeded 20% year-over-year, driven by core data and solutions and eight-figure European defense contract expansion. Regional revenue growth of over 30% in EMEA and Asia Pacific offset declines in North America and Latin America. Civil government revenue decreased due to contract expirations, but recent wins like the California Air Resources Board program suggest growth opportunities. Commercial sector revenue was stable, with a focus on key markets for execution. The company reported 919 customers at quarter end, with a strategic focus on large accounts.
President Ashley Johnson highlighted factors affecting revenue, including the end of the contract with Norway for the NICSE program, large agricultural customer adjustments impacting North America, and increased costs related to partner solutions and satellite contracts. The company expects a non-GAAP gross margin of 56-57% for Q2 FY2026, reflecting temporary margin pressure. Guidance for the full year includes revenue of $265-$280 million, adjusted EBITDA loss of $7-$12 million, and capital expenditures of $50-$65 million.
President Ashley Johnson emphasized recurring ACV and net dollar retention rate metrics, reflecting a focus on subscription contracts and customer retention. The company’s backlog and remaining performance obligations indicate strong revenue coverage and growth visibility. Strategic initiatives include expanding AI-enabled integrated insights and satellite services solutions, with partnerships for AI model development. The company’s focus remains on efficient growth and managing cash flow for sustainable profitability.
Read more at Nasdaq: Planet Labs (PL) Q1 2026 Earnings Call Transcript