Planet Labs PBC (NYSE:PL) saw its shares climb more than 9% in pre-market trading on Monday after unveiling second-quarter results that beat Wall Street forecasts and came with a brighter outlook for the year.
For the quarter ending July 31, 2025, the Earth imaging company generated $73.4 million in revenue, up 20% from the same period last year and well ahead of analyst expectations of $66.07 million. The firm also posted an adjusted loss of $0.03 per share, narrower than the anticipated $0.05 loss.
Backlog growth proved especially striking, rising 245% year-over-year to $736.1 million, while remaining performance obligations jumped 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. He emphasized new contracts with the German government, NATO, and the U.S. Department of Defense as major growth catalysts.
Operationally, Planet reported $85.1 million in net cash from operating activities so far this fiscal year and free cash flow of $54.3 million. Non-GAAP gross margin improved to 61%, compared to 58% in the prior-year quarter.
Ashley Johnson, Planet’s President and Chief Financial Officer, added, “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.”
Looking ahead, the company boosted its fiscal 2026 revenue guidance to between $281 million and $289 million, topping consensus estimates of $272.6 million. During the quarter, Planet also successfully deployed two new high-resolution Pelican satellites, further enhancing its ability to deliver detailed Earth observation data to customers.
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