Planet Labs PBC (NYSE:PL) shares surged after reporting second-quarter fiscal 2026 results that beat Wall Street estimates, driven by record revenue growth and raised guidance.
Revenue rose 20% from a year earlier to $73.39 million, above analyst estimates of $65.74 million. The company reported a GAAP net loss of $22.6 million, or 7 cents per share, compared with a loss of $38.7 million, or 13 cents per share, a year ago.
On a non-GAAP basis, net loss per share was 3 cents, beating expectations for a 4-cent loss. Adjusted EBITDA was $6.4 million, compared with a loss of $4.4 million a year earlier.
Gross margin improved to 58% from 53% a year earlier, while non-GAAP gross margin rose to 61% from 58%. Recurring annual contract value accounted for 98% of revenue. Remaining performance obligations surged 516% year-over-year to $690.1 million, and backlog increased 245% to $736.1 million.
Cash flow from operations for the year-to-date period totaled $85.1 million, with free cash flow at $54.3 million. The company ended the quarter with $271.5 million in cash, cash equivalents, and short-term investments, up $45.4 million sequentially.
CEO Will Marshall said, “Our second quarter results demonstrate incredibly strong momentum across our business, with record revenue and substantial growth in our backlog. The increased demand for our unique Earth intelligence, highlighted by pivotal contracts including one in collaboration with the German government, one with NATO, and others with the U.S. Department of Defense, underscores the critical role Planet plays in addressing global challenges and supporting peace and security.”
New contracts included a 240 million euros multi-year agreement funded by the German government, expanded work with NATO and the U.S. Navy, and additional deals with the U.S. Department of Defense, U.S. National Reconnaissance Office, the U.K.’s Rural Payments Agency, SwissRe, and Farmdar.
The company also launched two high-resolution Pelican satellites aboard a SpaceX vehicle and marked the one-year anniversary of its Tanager-1 satellite, which has detected more than 5,500 methane and CO2 plumes.
For the third quarter, Planet guided revenue between $71 million and $74 million, above the $68.86 million analyst consensus. Non-GAAP gross margin is expected at 55% to 56%, with adjusted EBITDA between a $4 million loss and breakeven.
For fiscal 2026, the company raised its revenue outlook to $281 million to $289 million, up from prior guidance of $265 million to $280 million, but below the $328.38 million analyst estimate. Non-GAAP gross margin is expected to be 55% to 57%, and adjusted EBITDA between a $7 million loss and breakeven.
