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On Friday, Planet Labs (NYSE:PL) shares maintained a Market Outperform rating and a $6.50 price target from JMP Securities, despite the company’s mixed financial report for the fourth quarter of fiscal year 2025. According to InvestingPro data, analyst targets for the stock range from $4.50 to $8.00, with the company currently valued at $1.27 billion. The satellite imaging firm’s results surpassed previous expectations with an adjusted EBITDA of $2.4 million, against the consensus of $1.4 million, and a non-GAAP gross margin of 64.7%, which was higher than the anticipated 63.5%. Additionally, Planet Labs showed a significant quarter-over-quarter increase in its Remaining Performance Obligations (RPO), boasting a growth of 179%.
Despite these positive indicators, the company’s stock has experienced a downward trend this year, falling approximately 8% year-to-date. This decline was further reflected in after-hours trading, where the stock dropped by 9%, contrasting with the Russell 3000 index’s decrease of around 4%. However, InvestingPro data shows the stock has delivered an impressive 105.83% return over the past six months, despite recent volatility.
Looking ahead, Planet Labs provided guidance for the first quarter of fiscal year 2026 that fell short of Wall Street’s expectations. The company estimates a non-GAAP gross margin between 58.0% and 60.0%, compared to the consensus of 62.9%, and an adjusted EBITDA ranging from a loss of $3.0 million to $2.0 million, whereas analysts had predicted a positive $1.9 million. Revenue projections for the quarter are set between $61.0 million and $63.0 million, with a year-over-year growth at the midpoint of 3%, which is below the expected $65.3 million.
For the full fiscal year 2026, Planet Labs anticipates a non-GAAP gross margin of 55.0% to 57.0%, which is notably lower than the consensus estimate of 63.4%. The adjusted EBITDA is forecasted to be in the range of a $13.0 million loss to a $7.0 million loss, a stark contrast to the anticipated $15.6 million. Revenue expectations are set at $260.0 million to $280.0 million, indicating a 10% year-over-year growth at the midpoint, again slightly below the consensus of $276.3 million.
The company also highlighted the successful capture of first light images from the newly launched Pelican-2 satellite, marking a milestone in its ongoing expansion and technological advancement. Despite the mixed financial outlook, Planet Labs continues to make strides in its operational capabilities. InvestingPro analysis reveals the company maintains strong gross profit margins of 57.18% and a healthy liquidity position with a current ratio of 2.13. InvestingPro subscribers have access to 12 additional key insights about Planet Labs, along with comprehensive financial analysis and Fair Value estimates in the Pro Research Report.
In other recent news, Planet Labs PBC reported its Q1 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.08, falling short of the anticipated -$0.03, while revenue reached $61.55 million, slightly below the $62.2 million forecast. Despite these setbacks, Planet Labs achieved a record annual revenue of $244.4 million, marking an 11% year-over-year increase and reaching its first quarter of adjusted EBITDA profitability with $2.4 million. The Defense and Intelligence sector revenue grew by 20%, contributing positively to the company’s financial performance. In addition to its financial results, Planet Labs announced a significant $230 million commercial agreement with its long-term partner in Japan, JSAT, to build, launch, and operate a constellation of 10 high-resolution Pelican satellites. Analyst firm Cantor Fitzgerald noted the company’s strategic focus on larger customers and its efforts to integrate AI solutions into its operations. Looking ahead, Planet Labs projects FY 2026 revenue between $260 million and $280 million, with a focus on maintaining an adjusted EBITDA loss similar to FY 2025.
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