Planet Labs Q2 2026 slides: record revenue and 245% backlog growth

Planet Labs PBC (NYSE:PL) shares surged 12.1% in premarket trading to $7.32 following the release of its Q2 2026 earnings presentation on September 8, 2025, which revealed record quarterly revenue and a dramatic increase in backlog. The Earth-imaging satellite company has continued its momentum from previous quarters, showing significant improvements in profitability metrics.

Quarterly Performance Highlights

Planet Labs reported record revenue of $73.4 million for Q2 2026, representing 20% year-over-year growth compared to $61 million in the same quarter last year. The company achieved a Non-GAAP Gross Margin of 61% and positive Adjusted EBITDA of $6.4 million, a substantial improvement from the $(4) million reported in Q2 2025.

As shown in the following quarterly highlights, the company secured several major contracts while achieving record financial results:

One of the most striking metrics was the company’s backlog, which grew to $736 million, representing a 245% year-over-year increase from $214 million in Q2 2025. This substantial growth in future contracted business provides strong visibility into Planet’s revenue pipeline.

The following chart illustrates the dramatic growth in backlog alongside the steady revenue increase:

Planet’s profitability metrics also showed significant improvement, with Year-to-Date Free Cash Flow reaching $54.3 million, compared to $(25) million in the prior year. The company ended the quarter with a strong cash position of $271.5 million in cash, cash equivalents, and short-term investments.

The following chart demonstrates Planet’s progress toward sustainable profitability:

Strategic Initiatives

Planet Labs secured several major contracts during the quarter, including a €240 million contract in collaboration with the German government and multiple expansions with U.S. defense organizations. The company was awarded two contract options by the U.S. Department of Defense DIU, secured a seven-figure expansion with the U.S. Navy for Maritime Domain Awareness, and was selected by NATO for a seven-figure contract for space-based surveillance.

The company also successfully launched two high-resolution Pelican satellites, expanding its imaging capabilities. These satellites are AI-enabled and join Planet’s existing constellation, with plans to launch more Pelicans within the next year.

Planet’s strategic focus areas are outlined in the following slide, highlighting its emphasis on product development, go-to-market strategy, and financial performance:

Detailed Financial Analysis

Planet’s business shows strong diversification across both geography and industry sectors. The company derives 42% of its revenue from EMEA (Europe, Middle East, and Africa), 32% from North America, 22% from Asia-Pacific and Japan, and 4% from Latin America.

By sector, commercial customers represent 57% of revenue, while civil government and defense & intelligence account for 22% and 21%, respectively. This diversification helps insulate the company from regional or sector-specific downturns.

The following pie charts illustrate this diversified revenue mix:

Looking at Planet’s long-term performance, the company has demonstrated consistent execution over multiple years, with revenue growing at a 23% CAGR from FY22 to FY25. Non-GAAP Gross Margin has expanded from 38% in FY22 to 60% in FY25, while Adjusted EBITDA has improved from $(41) million to $(11) million over the same period.

The following chart shows this multi-year performance trend:

Forward-Looking Statements

For the third quarter of fiscal 2026, Planet Labs expects revenue between $71 million and $74 million, with Non-GAAP Gross Margin of 55-56% and Adjusted EBITDA between $(4) million and $0 million.

For the full fiscal year 2026, the company projects revenue of $281 million to $289 million, representing continued growth from the $244 million reported in FY25. Non-GAAP Gross Margin is expected to be 55-57%, with Adjusted EBITDA between $(7) million and $0 million.

The company’s financial outlook is presented in the following slide:

Planet Labs identified several key drivers for future growth, including large government sales opportunities, bringing new AI-enabled solutions to market, and scaling in the satellite services market. The company’s unique data capabilities, including daily global scanning and high-resolution tasking, position it well in a large addressable market spanning agriculture, defense, civil government, natural resources, energy, insurance, finance, and technology sectors.

As shown in the following slide, Planet’s unique value proposition stems from its comprehensive Earth imaging capabilities:

Planet Labs continues to build on the momentum seen in previous quarters, with Q2 2026 results showing acceleration from the 10% year-over-year revenue growth reported in Q1 2025. The dramatic increase in backlog provides strong visibility for future growth, while the transition to positive Adjusted EBITDA and strong Free Cash Flow indicates progress toward sustainable profitability.

Full presentation:

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