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Introduction & Market Context
Planet Labs PBC (NYSE:PL) delivered its fiscal first quarter 2026 presentation on June 4, 2025, highlighting a milestone quarter with the achievement of positive free cash flow and Adjusted EBITDA. The Earth imaging satellite company’s stock responded positively to the results, rising 3.91% in regular trading and 5.47% in aftermarket trading on the day of the announcement. According to the latest market data, the stock continued its upward momentum with an impressive 18.3% gain in premarket trading on June 5.
The company operates in a growing market for satellite imagery and analytics, with applications spanning defense and intelligence, civil government, and commercial sectors. Planet’s unique daily global scanning capabilities, combined with high-resolution imaging and new hyperspectral data offerings, position it competitively in the space technology industry.
Quarterly Performance Highlights
Planet Labs reported record revenue of $66.3 million for Q1 FY26, representing a 10% year-over-year increase and exceeding analyst expectations of $62.36 million. The company achieved significant milestones in profitability metrics, generating $17.3 million in net cash from operating activities and $8.0 million in free cash flow. Additionally, Planet reported $1.2 million in Adjusted EBITDA, marking a substantial improvement from the $(8) million reported in the same quarter last year.
As shown in the following summary of Q1 FY26 highlights:
The quarter saw Planet secure several major customer wins, including an eight-figure Annual Contract Value (ACV) contract with a European defense and intelligence customer, selection as the primary subcontractor for the California Air Resource Board’s Satellite Data Purchase Program, and expansion of a seven-figure contract with the German government. These wins contributed to the company’s strong backlog growth.
Financial Trends and Operational Efficiency
Planet’s backlog grew dramatically by 140% year-over-year to reach $527 million, compared to $221 million in Q1 FY25. This substantial increase in backlog provides strong visibility into future revenue streams and demonstrates growing market demand for Planet’s offerings.
The following chart illustrates the company’s impressive backlog growth alongside its steady revenue increase:
The company has also made significant progress in improving profitability metrics. Planet’s transition to positive free cash flow and Adjusted EBITDA represents a turning point in its financial trajectory, as shown in the following comparison:
Non-GAAP gross margin improved to 59% in Q1 FY26, up from 55% in the same period last year, reflecting the scalability of Planet’s business model and operational efficiencies. The company has maintained a strong balance sheet with $226.1 million in cash, cash equivalents, and short-term investments at the end of Q1 FY26.
Planet’s business is well-diversified across geographies and sectors, providing resilience against regional or industry-specific downturns. The following breakdown shows the company’s revenue distribution:
Strategic Initiatives and Product Development
Planet continues to advance its product offerings and technological capabilities. During Q1, the company released a new Aircraft Detection Analytic Feed, which uses AI to detect commercial, private, and military aircraft globally. This capability enhances Planet’s value proposition for defense, intelligence, and civil aviation customers.
The company is also making progress with its hyperspectral data capabilities, delivering approximately 300,000 square kilometers of hyperspectral data daily with its Tanager-1 satellite. Additionally, Planet completed the commissioning, payload validation, and began providing data to select customers with Pelican-2.
Planet’s focus on AI-enabled solutions is evident in its product roadmap, with emphasis on unleashing AI capabilities on its proprietary datasets. The company has streamlined its self-serve offering for small customers on the Planet Insights Platform, expanding its market reach while maintaining focus on large enterprise customers.
Forward Guidance and Outlook
For the second quarter of fiscal 2026, Planet expects revenue between $65 million and $67 million, with Non-GAAP gross margin between 56% and 57%. For the full fiscal year 2026, the company projects revenue of $265 million to $280 million, representing continued growth from the $244 million reported in fiscal 2025.
The following table details Planet’s financial outlook for Q2 FY26 and the full fiscal year:
Planet’s management has outlined key drivers for future growth, including large government sales opportunities, bringing new AI-enabled solutions to market, scaling in the satellite services market, and maintaining focus on cost management and operating efficiency.
The company’s long-term performance demonstrates consistent execution, with a 21% compound annual growth rate (CAGR) in revenue from fiscal 2022 to fiscal 2025, and significant improvements in gross margin and Adjusted EBITDA over the same period.
With its strong Q1 performance, growing backlog, and strategic focus on high-value markets and technologies, Planet Labs appears well-positioned to continue its growth trajectory while improving financial metrics. The positive market reaction to the company’s Q1 results suggests investor confidence in Planet’s strategy and execution.
Full presentation:
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