Planet Exceeds Q1 FY2026 Expectations with Record Revenue and First-Ever Positive Free Cash Flow
Planet Labs PBC (NYSE: PL), a trailblazer in Earth observation and daily global data solutions, has released its financial results for the first quarter of fiscal year 2026, which ended on April 30, 2025. The company reported strong performance that exceeded internal expectations and showcased the strategic traction of its AI-enabled satellite services and analytics platforms.
“This was an excellent quarter that not only beat our expectations but also affirmed our strategic roadmap,” said Will Marshall, Co-Founder, Chief Executive Officer, and Chairperson of Planet. “We are now scaling delivery of actionable global insights using AI, while ramping up satellite services to meet increasing global demand.”
Ashley Johnson, President and Chief Financial Officer, echoed this sentiment, emphasizing the company’s operational and financial momentum. “We delivered a record-setting quarter in revenue, marked our second straight quarter of adjusted EBITDA profitability, and generated free cash flow for the first time in Planet’s history,” Johnson said. “With $226.1 million in cash, cash equivalents, and short-term investments, we have solid financial footing and clear visibility toward accelerating revenue growth.”
Q1 FY2026 Financial Performance Highlights
- Revenue: Planet posted record revenue of $66.3 million, up 10% year-over-year.
- Recurring Revenue: A robust 97% of Annual Contract Value (ACV) came from recurring sources.
- Gross Margins: GAAP gross margin improved to 55%, up from 52% in the same quarter last year. On a non-GAAP basis, gross margin rose to 59%, compared to 55% in Q1 FY2025.
- Net Loss: GAAP net loss narrowed significantly to ($12.6 million), from ($29.3 million) a year earlier.
- Adjusted EBITDA: Positive at $1.2 million, compared to a ($8.4 million) loss in the year-ago quarter.
- EPS: GAAP net loss per share was ($0.04); non-GAAP net income per share came in at $0.00.
- Cash Flow: Operating activities generated $17.3 million in net cash; free cash flow stood at $8.0 million.
- Liquidity: Ended the quarter with $226.1 million in cash, cash equivalents, and short-term investments.
Key Business Developments in Q1 FY2026
Expanding Global Customer and Government Engagements
Planet is deepening relationships with governments, defense agencies, and private sector partners around the world:
- European Defense & Intelligence Contract: Planet secured a major eight-figure ACV contract with a European defense agency for its PlanetScope and Maritime Domain Awareness (MDA) products. These tools support high-frequency, wide-area ocean surveillance with partner-integrated vessel tracking analytics.
- California Air Resources Board (CARB): Planet was named primary subcontractor in CARB’s $95 million Satellite Data Purchase Program (SDPP), awarded to Carbon Mapper. Planet will provide data from its Tanager hyperspectral collections and other satellite products to support global methane monitoring.
- German Federal Expansion: Planet expanded a seven-figure ACV contract with Germany’s Federal Ministry of the Interior and the Federal Agency for Cartography and Geodesy. The enhanced agreement incorporates Planetary Variables, water monitoring via partner EOMAP, and increased access to Planet’s Insights Platform. The data will be used to monitor land, water, forests, agriculture, and socio-economic indicators.
- Welsh Government Partnership: Planet deepened its collaboration with Wales, providing data-driven insights for agricultural policy, natural resource management, and emergency response planning.
- onX Recreation Partnership: A multi-year expansion with onX, a digital navigation provider, will integrate PlanetScope data into its apps, offering real-time insights into environmental changes and hazards across the U.S.
Product Innovation and Technological Advancements
Planet continues to push the envelope in AI-driven geospatial intelligence:
- Aircraft Detection Analytic Feed: A new AI-powered capability automatically detects aircraft types—commercial, private, and military—across the globe. This data enables real-time analysis of airspace activity, regional conflicts, and geopolitical trends.
- Self-Serve Insights Platform: Planet introduced enhancements to its self-service purchase interface, allowing small and mid-sized customers to quickly access Earth observation data. This move supports the company’s strategy to grow with customers through a flexible, scalable model.
- Hyperspectral and High-Resolution Imaging:
- Tanager-1: Now operational and servicing multiple verticals including energy, defense, agriculture, and civil government. The satellite is capturing around 300,000 square kilometers of hyperspectral data daily.
- Pelican-2: Completed commissioning, with a fully validated imaging system. The satellite has begun supplying data to early access customers, expanding Planet’s high-resolution imaging portfolio.
Outlook for Q2 and FY2026
Planet offered financial guidance for both the second quarter and the full fiscal year:
Q2 FY2026 (Ending July 31, 2025):
- Revenue: Expected between $65 million and $67 million.
- Non-GAAP Gross Margin: Anticipated at 56% to 57%.
- Adjusted EBITDA: Loss expected between ($4 million) and ($2 million).
- Capital Expenditures: Forecast between $17 million and $22 million.
Full Fiscal Year 2026:
- Revenue: Projected between $265 million and $280 million.
- Non-GAAP Gross Margin: Estimated at 55% to 57%.
- Adjusted EBITDA: Expected loss of ($12 million) to ($7 million).
- Capital Expenditures: Budgeted between $50 million and $65 million.
Planet has not provided a GAAP reconciliation for adjusted financial guidance due to uncertainties in forecasting stock-based compensation and other expenses that are difficult to project. These factors are expected to have a material impact on future GAAP results.
Conference Call and Webcast Details
Planet will hold a webcast and conference call to discuss its results:
- Date: June 4, 2025
- Time: 5:00 p.m. ET / 2:00 p.m. PT
- Live Webcast: www.planet.com/investors/
- Conference Registration: Register here to receive call-in details.
A recorded replay of the webcast will be available at the same location approximately two hours after the live event and will remain accessible for at least one year. Additionally, a supplemental investor presentation has been posted on the company’s investor relations webpage.
With back-to-back quarters of adjusted EBITDA profitability, a historic milestone of free cash flow generation, and new contracts with global governments and strategic partners, Planet has entered fiscal year 2026 with strong momentum. As the company continues scaling its satellite capabilities and expands the reach of its AI-powered Earth observation platform, Planet appears well-positioned to capitalize on the increasing global demand for real-time geospatial intelligence.
