Planet Labs shares soar 9% after record revenue, strong guidance

Published 08/09/2025, 12:30
Updated 08/09/2025, 13:30
© Reuters

Investing.com -- On Monday, Planet Labs PBC (NYSE: PL) reported record second-quarter revenue that exceeded analyst expectations, alongside an improved financial outlook for the fiscal year.

The Earth data provider’s shares jumped 9.19% in pre-market trading after the results.

The company posted revenue of $73.4 million for the quarter ended July 31, 2025, marking a 20% increase year-over-year and surpassing the analyst consensus of $66.07 million. Planet Labs reported an adjusted loss of $0.03 per share, beating estimates of a $0.05 loss. The company’s backlog grew significantly, up 245% year-over-year to $736.1 million, while remaining performance obligations surged 516% to $690.1 million.

"Our second quarter results demonstrate incredibly strong momentum across our business, with record revenue and substantial growth in our backlog," said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson. The company highlighted pivotal contracts with the German government, NATO, and the U.S. Department of Defense as key drivers of growth.

Planet Labs generated $85.1 million in year-to-date net cash from operating activities and delivered positive free cash flow of $54.3 million. The company’s non-GAAP gross margin improved to 61% compared to 58% in the same quarter last year.

Ashley Johnson, Planet’s President and Chief Financial Officer, noted, "We are pleased to see our investments in the business start to generate meaningful revenue growth rate acceleration, and our significant backlog gives us good visibility into FY’27 and beyond."

For fiscal year 2026, Planet Labs raised its revenue guidance to $281-289 million, above the consensus estimate of $272.6 million. The company also successfully launched two additional high-resolution Pelican satellites during the quarter, strengthening its Earth observation capabilities.

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