Planet Labs PBC

Revenue for Q2 fiscal 2027 was a record $116 million, representing approximately 58% year-over-year growth. Non-GAAP gross margin was 59% versus 61% in the prior-year quarter, and adjusted EBITDA profit was $13.9 million. Capital expenditures were approximately $29 million, and year-to-date operating cash flow was approximately $68 million, free cash flow was $21 million, and adjusted free cash flow was $29 million. Balance sheet cash, cash equivalents and short-term investments ended at approximately $865 million, up more than 200% year over year. Remaining performance obligations were approximately $753 million, up about 9% year over year, and backlog was approximately $815 million, up about 11% year over year. For Q3 FY2027, Planet guided revenue to $101 million-$105 million, non-GAAP gross margin to 56%-58%, adjusted EBITDA to a loss of $6 million to a loss of $1 million, and CapEx to $30 million-$37 million. For full-year FY2027, management raised revenue guidance to $430 million-$441 million, gross margin to 55%-57%, adjusted EBITDA to $3 million-$10 million, and CapEx to $100 million-$115 million.

Will Marshall described the quarter as an “outstanding” and “great” one, emphasizing that Planet is scaling through a mix of satellite services wins, AI-enabled solutions, and sovereign government deals. He repeatedly pointed to differentiation from the daily scan archive, saying it makes Planet a unique source of real-world data for defense, civil government, and commercial customers. His tone was upbeat and confident, especially around the $4 billion satellite services pipeline, the German facility, the AI app, and the Owl roadmap.

Ashley Johnson focused on execution against backlog and the financial impact of satellite services delivery, especially the handover of the first Pelican for the Swedish Armed Forces, which contributed to the Q2 beat. She noted gross margin of 59% was better than expected despite investments in satellite services and AI-enabled partner solutions, and said Q2 adjusted EBITDA profit was $13.9 million. On capital allocation, she highlighted roughly $865 million of cash and investments, the $120 million raised through the ATM at an average net sales price of $31.96 per share, and said the company is prioritizing disciplined dilution, strategic flexibility, and annual adjusted free cash flow positivity.

Analysts focused on whether open-source AI model improvements help Planet, and management said they are model-agnostic and that commoditized models actually increase the value of Planet’s data. Questions also centered on the $4 billion satellite-services pipeline, launch access, supply chain constraints, and the rising role of international defense work; management said the pipeline is broadening across geographies and deal sizes, launch pricing is tighter but manageable, and supply chain risk is being addressed with stockpiling and advanced procurement. Several questions probed Owl, with management saying the 1-meter class product should create pricing upside, unlock new use cases, and enable faster, more detailed monitoring.