Planet Labs posts 20% revenue growth, positive Adjusted EBITDA and $736M backlog despite GAAP losses

Snapshot - Planet Labs PBC (NYSE: PL)

What's happening inside: Planet is growing revenue, tightening operating spend after a 2024 restructuring, and converting large multi-year government and commercial deals into a growing backlog. The business remains unprofitable but generated positive operating cash flow in the first half of FY2026. Key risks remain concentration of customers, high capex for satellite builds, warrant volatility and regulatory/contract complexity.

Key facts & statistics (all figures in thousands unless noted)

* Revenue (Q3 / three months ended Jul 31, 2025): $73,386 (up $12,294; +20% vs prior year quarter)

* Revenue (six months ended Jul 31, 2025): $139,651 (up $18,119; +15% YoY)

* Gross profit (Q3): $42,268 (up 31% YoY); Gross profit (six months): $78,871 (+23% YoY)

* Net loss (Q3): $(22,592); Net loss (six months): $(35,220) - improved vs prior year (loss narrowed 42% and 48% respectively)

* Loss per share (basic & diluted): Q3 $(0.07); six months $(0.12)

* Adjusted EBITDA: Q3 $6,406 (positive); six months $7,606 (positive)

* Cash & cash equivalents: $181,087; Cash + restricted: $192,930

* Short-term investments: $90,450

* Accounts receivable, net: $51,633 (two customers = 24% and 11% of AR)

* Deferred revenue (current): $148,006; Remaining performance obligations: $690,066 (~$690.1M)

* Backlog (RPO + cancelable contract value): $736,077 (~$736.1M)

* Total assets / total liabilities / stockholders' equity: $696,425 / $260,736 / $435,689

* Accumulated deficit: $(1,238,221)

* Capital expenditures (three months / six months): $21.5M / $30.8M; CapEx as % of revenue (Q3): 29%

* Key segment revenue (Q3): Defense & Intelligence $41,909; NAM $31,093; EMEA $23,467; APJ $16,150

* Net Dollar Retention Rate (six months): 107%; Percent of Recurring ACV: 98%

* Stock-based compensation expense (Q3): $13,456; total operating expense cuts vs prior year quarter: R&D down 11%, Sales & Marketing down 26%, G&A down 12%

Income statement - positives

* Clear top-line momentum: revenue +20% YoY in the quarter and +15% for six months; Defense & Intelligence demand is a main driver.

* Margins improving: gross profit rose 31% (Q3) and Non‑GAAP gross margin improved (company reports Non‑GAAP Gross Margin 61% vs GAAP 58% Q3).

* Operating discipline: total operating expenses fell 16% YoY in the quarter after prior restructuring and headcount reductions.

* Adjusted EBITDA turned positive (Q3 $6.4M), indicating core operations can be cash-generative before non‑cash items and fair-value swings.

* Strong cash generation: net cash provided by operations for six months was $85,120; cash + short-term investments ~ $271.5M available.

Income statement - negatives

* Still unprofitable on GAAP basis: Q3 net loss $(22.6M); six‑month loss $(35.2M) and accumulated deficit remains large.

* High non-cash and recurring compensation costs: stock-based comp $13.5M in the quarter and $26.0M for six months (material recurring expense).

* Warrant volatility hit the quarter: change in fair value of warrant liabilities was a $(5,679) charge in Q3 (big swing vs prior year).

* CapEx intensity: significant satellite build spend - CapEx as % of revenue 29% in Q3, which pressures free cash if launches or contracts slip.

* Concentration & credit risk: a few customers represent material portions of revenue and accounts receivable (two AR customers = 35% of AR).

Operational / strategic highlights

* Large commercial satellite service wins: multi-year $230M contract with JSAT and €240M funded by the German government for Pelican satellites (new revenue backlog and mission services).

* Remaining performance obligations $690.1M and backlog $736.1M give multi-year visibility (company expects ~32% of RPO recognized in next 12 months).

* Net Dollar Retention improved to 107% (six months), showing expansion within existing customers.

* Google is a major related party: Google holds >10% of Class A shares and hosting commitments total $84,162 (future purchase commitments through 2028).

Risks / watch list

* Execution on satellite deliveries and launches (technical, supplier and launch risks); delays or failures are revenue and margin risks.

* Customer concentration and government contract terms (termination for convenience, budget/funding cycles) - revenue can be lumpy.

* Ongoing high capex and workforce costs; large stock-based compensation run‑rate dilutes economics.

* Regulatory/export/NOAA/FCC approvals and geopolitical sensitivity of imagery are ongoing operating risks.

* Warrant fair-value swings and contingent liabilities can create significant P&L volatility quarter-to-quarter.

Bottom line

Planet Labs is converting commercial and government deals into a meaningful backlog and showing revenue and gross‑profit improvement while cutting operating costs. The business is still GAAP‑loss making, capital intensive (satellites) and exposed to concentration and execution risks. If management can sustain revenue growth, convert backlog reliably and control cash burn on satellite builds, the path to sustainable Adjusted EBITDA and cash generation is credible - but risks remain material.

If you want, I can produce a 1‑page table with the key income-statement and balance-sheet line items standardized (millions) for quick comparison across quarters.