Planet Labs PBC reported third‑quarter 2026 revenue of $81.3 million, a 33% year‑over‑year increase that beat consensus estimates of $74.1 million. The company posted a break‑even non‑GAAP earnings per share and a GAAP net loss of $0.19 per share, marking the fourth consecutive quarter of adjusted EBITDA profitability.
Defense and intelligence revenue surged to $49.4 million, up more than 70% from the same period a year earlier, reflecting strong demand from U.S. government and allied agencies. In contrast, commercial revenue slipped modestly, a shift that management attributes to a temporary re‑allocation of capacity toward higher‑margin defense contracts.
Non‑GAAP gross margin for the quarter was 60%, down from 64% in the prior year. The decline is largely attributable to capital expenditures on satellite‑services infrastructure and AI‑enabled analytics, which are expected to generate higher long‑term margins as the customer mix shifts toward higher‑value contracts.
Management raised full‑year 2026 revenue guidance to $297 million–$301 million, up from $281 million–$289 million, and maintained a non‑GAAP gross‑margin target of 57%–58%. First‑half free cash flow reached $54.3 million, and the company’s cash, cash equivalents and short‑term investments totaled $677 million, underscoring a solid balance‑sheet foundation.
Strategic milestones included the launch of Pelican‑5 and Pelican‑6 high‑resolution satellites and 36 SuperDove satellites, the acquisition of Bedrock Research to accelerate AI‑enabled solutions, and a $460 million convertible‑debt issuance at 0.50% interest maturing in 2030. Backlog rose 216% year‑over‑year to $734 million, providing a robust pipeline of future revenue.
CEO Will Marshall said the quarter “demonstrates the strength of our AI‑enabled platform and the growing demand from defense and intelligence customers.” CFO Ashley Johnson highlighted the company’s “continued focus on cash‑flow generation and strategic debt management,” noting the positive free‑cash‑flow trend and the new convertible debt as a means to support growth without immediate dilution.
Investors responded positively to the earnings release, with analysts citing the strong revenue beat, the raised guidance, and the company’s shift toward a self‑financing satellite‑services model as key drivers of the favorable market reaction.
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