Planet Labs PBC (NYSE: PL) reported second-quarter fiscal 2027 results (quarter ended July 31, 2026) on September 3, 2026, delivering record revenue of $116.1 million (up 58% year-over-year), a narrowed GAAP net loss, and positive adjusted EBITDA of $13.9 million. The company raised full-year revenue guidance and highlighted strong Defense & Intelligence demand, high recurring revenue, and a fortified balance sheetA financial "snapshot" that reveals exactly what a company owns and owes at a specific moment in time. It follows the fundamental formula: Assets = Liabilities + Equity. By subtracting what is owed (liabilities) from what is owned (assets), the balance sheet shows the "book value" or the net worth belonging to the owners. More.
| Metric | Q2 2027 Estimate | Q2 2027 Result | FY 2027 Estimate | FY 2027 Result / Guidance |
|---|---|---|---|---|
| Revenue | ~$104–105M | $116.1M (+58% YoY) | Prior ~$425–441M | $430–441M (raised) |
| EPS (GAAP) | ~ ($0.02) to ($0.03) | –$0.03 | n/a | n/a |
| EPS (Non-GAAP / Adj.) | ~ ($0.02) | +$0.02 | n/a | Positive trajectory |
| Non-GAAP Gross Margin | n/a | 59% | ~ 52–54% | Expanding with scale |
| Adj. EBITDA | n/a | $13.9M profit | Breakeven to profit | Positive |
| Backlog | n/a | ~ $815M | n/a | Strong multi-year visibility |
| RPO (remaining performance obligations) | n/a | ~ $753M | n/a | Strong multi-year visibility |
| Cash + STI | n/a | $865M (+219% YoY) | n/a | Strengthened balance sheetA financial "snapshot" that reveals exactly what a company owns and owes at a specific moment in time. It follows the fundamental formula: Assets = Liabilities + Equity. By subtracting what is owed (liabilities) from what is owned (assets), the balance sheet shows the "book value" or the net worth belonging to the owners. More |
Actual Results: Record Revenue and Profitability Progress
- Record quarterly revenue of $116.1 million, up 58% year-over-year and approximately 23% sequentially, driven by broad-based growth led by Defense & Intelligence customers.
- GAAP net loss of $9.4 million, or –$0.03 per share (improved from –$0.07 in the year-ago quarter).
- Non-GAAP net income of approximately $8.3 million and adjusted EPS of +$0.02 (beat consensus expectations of a loss).
- Non-GAAP gross margin of 59% (GAAP gross margin 57%).
- Adjusted EBITDA profit of $13.9 million, more than double the $6.4 million in the prior-year quarter.
- Backlog of approximately $815 million and remaining performance obligations (RPO) of $753 million.
- Cash, cash equivalents, and short-term investments of $865 million at quarter-end.
Why It Matters: Defense Momentum and Recurring Revenue Durability
- Defense & Intelligence demand is accelerating and now represents the dominant share of revenue growth, providing higher-visibility, multi-year contracts.
- 98% recurring ACV underscores the subscription-like nature of the core Earth observation data platform.
- Fourth consecutive quarter of meeting or exceeding the Rule of 40a simple growth-and-profitability benchmark used mainly for SaaS and high-growth software/data companies. It is calculated as:
Revenue Growth Rate (%) + Profit Margin (%) ≥ 40 Profit margin is typically Adjusted EBITDA margin (or sometimes free-cash-flow margin).
A company “achieves” or “meets” the Rule of 40 when the sum of its year-over-year revenue growth percentage and its adjusted EBITDA margin percentage equals or exceeds 40. Example: If a company grows revenue 30% and delivers a 12% adjusted EBITDA margin, the Rule of 40 score is 42 → it passes. It is used as a quick way to judge whether a growth company is balancing rapid expansion with improving operating efficiency. More (revenue growth + adjusted EBITDA margin) signals improving operating leverage alongside growth. - Successful launch of the Pelican tech demo and shipment of Tanager-2 and SuperDove satellites support continued constellation expansion and product roadmap execution.
- Significantly strengthened liquidity (cash + investments up more than 2x year-over-year) provides flexibility for satellite manufacturing, AI-enabled solutions, and selective investments.
What’s Ahead: Raised Guidance and Continued Scaling
- For the third quarter of fiscal 2027 (ending October 31, 2026), Planet expects revenue of $101–105 million (approximately 27% year-over-year growth at the midpoint) and non-GAAP gross margin of approximately 56–58%.
- Full-year fiscal 2027 revenue guidance was raised to $430–441 million (40–43% year-over-year growth), with expectations for continued adjusted EBITDA profitability and positive free cash flow on an annual basis.
- Key focus areas include:
- converting the elevated backlog and RPO into recognized revenue
- expanding satellite services and AI-enabled solutions
- growing the Defense & Intelligence footprint
- maintaining high recurring ACV while scaling the constellation.
Risks to Forward Expectations: Contract Timing, Mix, and Investment Intensity
- Revenue can be influenced by the timing of large government and satellite-services contract milestones; sequential growth may not be linear.
- Non-GAAP gross margins can fluctuate with contract mix, depreciation from new satellite deployments, and investments in higher-value solutions.
- Sustained high CapEx for constellation replenishment and new capabilities remains necessary to support growth targets.
- Customer concentration in Defense & Intelligence, while currently a strength, introduces potential budget or procurement timing risk.
- Valuation remains elevated relative to current profitability, leaving the stock sensitive to any guidance misses or slower backlog conversion.
Bottom Line: Accelerating Growth with Improving Profitability
Planet Labs delivered a standout quarter with record revenue, sequential and year-over-year acceleration, narrowed losses, and expanded adjusted EBITDA profitability while raising full-year guidance. Strong Defense & Intelligence momentum, high recurring revenue, and a robust balance sheetA financial "snapshot" that reveals exactly what a company owns and owes at a specific moment in time. It follows the fundamental formula: Assets = Liabilities + Equity. By subtracting what is owed (liabilities) from what is owned (assets), the balance sheet shows the "book value" or the net worth belonging to the owners. More position the company well for continued scaling through the remainder of fiscal 2027.
Near-term results will still reflect investment in satellites and solutions, but the combination of backlog visibility, Rule of 40a simple growth-and-profitability benchmark used mainly for SaaS and high-growth software/data companies. It is calculated as:
Revenue Growth Rate (%) + Profit Margin (%) ≥ 40 Profit margin is typically Adjusted EBITDA margin (or sometimes free-cash-flow margin).
A company “achieves” or “meets” the Rule of 40 when the sum of its year-over-year revenue growth percentage and its adjusted EBITDA margin percentage equals or exceeds 40. Example: If a company grows revenue 30% and delivers a 12% adjusted EBITDA margin, the Rule of 40 score is 42 → it passes. It is used as a quick way to judge whether a growth company is balancing rapid expansion with improving operating efficiency. More consistency, and rising adjusted profitability supports a constructive trajectory. Successful conversion of the backlog and sustained demand from government and commercial customers will determine how quickly Planet translates this growth into more durable GAAP profitability.
