Planet Labs PBC (PL) Q3 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Should l Buy PL?
Source: SeekingAlpha
Revenue $81.3 million, representing approximately 33% growth year-over-year. The growth was driven primarily by defense and intelligence and civil government customers, as well as progress against the JSAT satellite services contract. Upside was also supported by the Luno B win with the NGA and some onetime factors.
Non-GAAP Gross Margin 60% in the quarter, compared to 64% in the third quarter of fiscal year 2025. The decrease reflects investments in satellite services contracts and the mix of contracts, including AI-enabled partner solutions.
Adjusted EBITDA Profit $5.6 million, marking the fourth sequential quarter of adjusted EBITDA profitability. This was better than expected, primarily driven by revenue outperformance and disciplined OpEx spend.
Backlog $734.5 million at the end of the quarter, representing a year-over-year increase of 216%. This growth reflects strong demand and strategic wins in government sectors.
Free Cash Flow Positive for the third quarter in a row, reinforcing the expectation of being free cash flow positive for the full fiscal year.
Defense and Intelligence Sector Revenue Accelerated to over 70% growth year-on-year, up over 15% quarter-over-quarter. Growth was driven by strong performance in data subscription, solutions businesses, and satellite services.
Civil Government Sector Revenue Up approximately 1% year-over-year and up approximately 15% quarter-over-quarter. Growth was supported by a $13.5 million task order from NASA under the commercial satellite data acquisition program.
Commercial Sector Revenue Moderately down both year-over-year and quarter-over-quarter. The decline is attributed to increased focus on large government customers and seasonality in the agricultural sector.
Capital Expenditures Approximately $27.7 million in Q3, above guidance range due to prepayments for favorable pricing in hardware procurements and launch deposits for next-generation satellites.
Cash, Cash Equivalents, and Short-term Investments $677 million at the end of the quarter, an increase of approximately $406 million sequentially, driven by a $460 million convertible note raise.
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Analyst Views on PL
Wall Street analysts forecast PL stock price to fall
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 21.300
Low
12.30
Averages
18.93
High
22.00
Current: 21.300
Low
12.30
Averages
18.93
High
22.00
About PL
Planet Labs PBC is a provider of global, daily satellite imagery and geospatial solutions. It designs, builds, and operates the earth observation fleet of imaging satellites. It provides mission-critical data, advanced insights, and software solutions comprising agriculture, forestry, intelligence, education and finance companies and government agencies, enabling users to derive value from satellite imagery. Its satellite data and analytics reveal actionable insights regarding phenomena, such as deforestation, agriculture, climate change, biodiversity, and supply chains worldwide. Its daily stream of proprietary data and machine learning analytics, delivered over its cloud-native platform, helps companies, governments and civil society use satellite imagery to discover insights as change happens. Its digital technology platform includes Agile Aerospace, Proprietary Big Data, and Platform and Analytics. Its products include Planet Monitoring, Planet Tasking, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Planet Labs PBC Gains Favor Among Hedge Funds
- Investment Rating Upgrade: Jeff Van Rhee of Craig-Hallum reiterated his Buy rating on Planet Labs PBC (NYSE:PL) and raised the price target from $30 to $33, indicating a 52% upside potential, reflecting strong market confidence in the company.
- Wall Street Analyst Expectations: Currently, coverage from 12 analysts shows the highest target upside for Planet Labs reaching 61.66%, further validating the stock's investment value among mid-cap AI stocks.
- Significant Partnership Agreement: Planet Labs has entered into a major partnership with the Surveying and Mapping Authority of the Republic of Slovenia (GURS), providing high-resolution tasking services and detailed satellite data to enhance urban infrastructure planning, forest monitoring, and disaster response capabilities.
- Technological Application Prospects: Tomaž Petek, Director-General of GURS, stated that this collaboration will significantly improve decision-making efficiency in national infrastructure through the integration of daily global scanning and high-resolution tasking, showcasing Planet Labs' strategic importance in geospatial data services.
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- Market Valuation Surge: Post-IPO, SpaceX's valuation is expected to reach $1.5 trillion, nearly doubling its recent $800 billion valuation, which will attract momentum traders and elevate the relative value of other space companies.
- Clear Funding Utilization: The raised funds will be directed towards developing AI data centers and the Starship reusable rocket, helping to reduce launch costs and advance NASA's lunar lander project, further solidifying SpaceX's leadership in the space industry.
- Market Competition Impact: While the SpaceX IPO may elevate the valuations of other space stocks, it could also lead to diminished investor confidence in these stocks, prompting them to sell off to raise funds for SpaceX, thereby affecting the dynamics of the entire space stock market.
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- Investor Attention: SpaceX's planned IPO in 2026 is expected to draw investor interest towards other space stocks, potentially leading to a sell-off of those stocks in favor of SpaceX, thereby reshaping the space investment landscape.
- Potential for Largest IPO: Musk aims to raise up to $50 billion through this IPO, which, if successful, would surpass Saudi Aramco's record of $29.4 billion set in 2019, marking it as the largest IPO in history and enhancing SpaceX's market position.
- Market Valuation Impact: With a projected market valuation of $1.5 trillion, SpaceX's valuation at over 60 times sales will make other space companies like Firefly Aerospace and Planet Labs appear highly attractive, potentially driving their stock prices higher.
- Funding Utilization and Tech Development: The raised funds will be allocated towards developing AI data centers and refining the Starship reusable rocket, helping SpaceX reduce launch costs and solidify its dominant position in the space market, further widening the gap with competitors.
See More
Planet Labs Establishes European Advisory Boards for Strategic Expansion
- Strategic Commitment: At the 2026 Munich Security Conference, Planet Labs announced the formation of the European Advisory Board and Defense and Intelligence Advisory Board, demonstrating the company's deep commitment to the European market and aiming to drive strategic growth through global security partnerships.
- Advisory Team Composition: The European Advisory Board includes global leaders such as former Swedish Prime Minister Carl Bildt and former EU Vice President Neelie Kroes, whose extensive experience will assist the company in navigating the evolving European policy landscape.
- Defense and Intelligence Support: The Defense and Intelligence Advisory Board will provide expert counsel to help Planet expand its solutions in the national security and intelligence sectors, with members including former UK GCHQ Director Jeremy Fleming and former U.S. Deputy Assistant Secretary of Defense Michele Flournoy.
- Enhancing Global Impact: By establishing these two advisory boards, Planet Labs aims to leverage the guidance of these experts to propel its next phase of global expansion, thereby enhancing its competitiveness across various sectors including agriculture, finance, and government.
See More
Planet Labs Establishes European and Defense Advisory Boards
- Advisory Boards Formation: At the Munich Security Conference, Planet Labs announced the establishment of its European Advisory Board and Defense and Intelligence Advisory Board, aimed at enhancing strategic partnerships and market expansion in Europe through the expertise of global leaders.
- Focus on European Market: The European Advisory Board will focus on meeting the growing needs of its European customer base and assist the company in navigating the evolving policy landscape, thereby driving strategic growth in Europe.
- Support for Defense and Intelligence: The Defense and Intelligence Advisory Board will provide expert counsel to help Planet continue developing and expanding solutions for the national security and intelligence communities, ensuring critical support in the global security sector.
- Commitment to Global Expansion: CEO Will Marshall stated that the formation of these advisory boards signifies the company's commitment to global expansion and impact, which is expected to directly drive its next phase of growth and development.
See More
Planet Labs to Participate in Upcoming Investor Events
- Investor Event Participation: Planet Labs PBC will participate in upcoming investor events aimed at engaging with investors and showcasing business developments, thereby enhancing market transparency and investor confidence.
- Webcast Availability: All events will be webcast and available for replay on the company’s website, ensuring that investors unable to attend in person can still access key information, thus broadening the dissemination of critical insights.
- Global Satellite Imagery Provider: As a leading provider of global satellite imagery and geospatial solutions, Planet Labs is committed to imaging the Earth daily through its extensive fleet of satellites, delivering mission-critical data and insights to various sectors including agriculture, forestry, and intelligence.
- Company Mission and Vision: Since its founding in 2010, Planet Labs has maintained its mission to make change visible, accessible, and actionable, empowering global users to effectively leverage satellite imagery to enhance decision-making and operational efficiency.
See More
Planet Labs PBC Gains Favor Among Hedge Funds
- Investment Rating Upgrade: Jeff Van Rhee of Craig-Hallum reiterated his Buy rating on Planet Labs PBC (NYSE:PL) and raised the price target from $30 to $33, indicating a 52% upside potential, reflecting strong market confidence in the company.
- Wall Street Analyst Expectations: Currently, coverage from 12 analysts shows the highest target upside for Planet Labs reaching 61.66%, further validating the stock's investment value among mid-cap AI stocks.
- Significant Partnership Agreement: Planet Labs has entered into a major partnership with the Surveying and Mapping Authority of the Republic of Slovenia (GURS), providing high-resolution tasking services and detailed satellite data to enhance urban infrastructure planning, forest monitoring, and disaster response capabilities.
- Technological Application Prospects: Tomaž Petek, Director-General of GURS, stated that this collaboration will significantly improve decision-making efficiency in national infrastructure through the integration of daily global scanning and high-resolution tasking, showcasing Planet Labs' strategic importance in geospatial data services.
See More
Musk Proposes SpaceX IPO in 2026, Aiming for $50 Billion
- Historic IPO Anticipation: Musk plans a SpaceX IPO in 2026, aiming to raise up to $50 billion, which, if successful, would surpass Saudi Aramco's 2019 record of $29.4 billion, marking a significant milestone in space investing.
- Market Valuation Surge: Post-IPO, SpaceX's valuation is expected to reach $1.5 trillion, nearly doubling its recent $800 billion valuation, which will attract momentum traders and elevate the relative value of other space companies.
- Clear Funding Utilization: The raised funds will be directed towards developing AI data centers and the Starship reusable rocket, helping to reduce launch costs and advance NASA's lunar lander project, further solidifying SpaceX's leadership in the space industry.
- Market Competition Impact: While the SpaceX IPO may elevate the valuations of other space stocks, it could also lead to diminished investor confidence in these stocks, prompting them to sell off to raise funds for SpaceX, thereby affecting the dynamics of the entire space stock market.
See More
SpaceX's Planned IPO Could Become the Largest in History
- Investor Attention: SpaceX's planned IPO in 2026 is expected to draw investor interest towards other space stocks, potentially leading to a sell-off of those stocks in favor of SpaceX, thereby reshaping the space investment landscape.
- Potential for Largest IPO: Musk aims to raise up to $50 billion through this IPO, which, if successful, would surpass Saudi Aramco's record of $29.4 billion set in 2019, marking it as the largest IPO in history and enhancing SpaceX's market position.
- Market Valuation Impact: With a projected market valuation of $1.5 trillion, SpaceX's valuation at over 60 times sales will make other space companies like Firefly Aerospace and Planet Labs appear highly attractive, potentially driving their stock prices higher.
- Funding Utilization and Tech Development: The raised funds will be allocated towards developing AI data centers and refining the Starship reusable rocket, helping SpaceX reduce launch costs and solidify its dominant position in the space market, further widening the gap with competitors.
See More
Planet Labs Establishes European Advisory Boards for Strategic Expansion
- Strategic Commitment: At the 2026 Munich Security Conference, Planet Labs announced the formation of the European Advisory Board and Defense and Intelligence Advisory Board, demonstrating the company's deep commitment to the European market and aiming to drive strategic growth through global security partnerships.
- Advisory Team Composition: The European Advisory Board includes global leaders such as former Swedish Prime Minister Carl Bildt and former EU Vice President Neelie Kroes, whose extensive experience will assist the company in navigating the evolving European policy landscape.
- Defense and Intelligence Support: The Defense and Intelligence Advisory Board will provide expert counsel to help Planet expand its solutions in the national security and intelligence sectors, with members including former UK GCHQ Director Jeremy Fleming and former U.S. Deputy Assistant Secretary of Defense Michele Flournoy.
- Enhancing Global Impact: By establishing these two advisory boards, Planet Labs aims to leverage the guidance of these experts to propel its next phase of global expansion, thereby enhancing its competitiveness across various sectors including agriculture, finance, and government.
See More
Planet Labs Establishes European and Defense Advisory Boards
- Advisory Boards Formation: At the Munich Security Conference, Planet Labs announced the establishment of its European Advisory Board and Defense and Intelligence Advisory Board, aimed at enhancing strategic partnerships and market expansion in Europe through the expertise of global leaders.
- Focus on European Market: The European Advisory Board will focus on meeting the growing needs of its European customer base and assist the company in navigating the evolving policy landscape, thereby driving strategic growth in Europe.
- Support for Defense and Intelligence: The Defense and Intelligence Advisory Board will provide expert counsel to help Planet continue developing and expanding solutions for the national security and intelligence communities, ensuring critical support in the global security sector.
- Commitment to Global Expansion: CEO Will Marshall stated that the formation of these advisory boards signifies the company's commitment to global expansion and impact, which is expected to directly drive its next phase of growth and development.
See More
Planet Labs to Participate in Upcoming Investor Events
- Investor Event Participation: Planet Labs PBC will participate in upcoming investor events aimed at engaging with investors and showcasing business developments, thereby enhancing market transparency and investor confidence.
- Webcast Availability: All events will be webcast and available for replay on the company’s website, ensuring that investors unable to attend in person can still access key information, thus broadening the dissemination of critical insights.
- Global Satellite Imagery Provider: As a leading provider of global satellite imagery and geospatial solutions, Planet Labs is committed to imaging the Earth daily through its extensive fleet of satellites, delivering mission-critical data and insights to various sectors including agriculture, forestry, and intelligence.
- Company Mission and Vision: Since its founding in 2010, Planet Labs has maintained its mission to make change visible, accessible, and actionable, empowering global users to effectively leverage satellite imagery to enhance decision-making and operational efficiency.
See More
