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: 25.600
Low
12.30
Averages
18.93
High
22.00
Current: 25.600
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.
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- Comfort Systems Earnings Volatility: Comfort Systems' earnings report drew significant market attention, and while specific figures were not disclosed, the volatility in its performance could impact investor confidence, reflecting the dynamics within the construction services sector.
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- Institutional Ownership Signal: A Schedule 13G/A filing reveals that Driehaus Capital Management owns 8.51 million Class A shares of Planet Labs, representing a 2.91% stake, indicating institutional investor confidence that may attract further attention from investors.
- Strong Market Performance: Planet Labs shares rose 0.42% on Thursday, outperforming the broader market by 22 basis points, while the Communication Services sector increased by 58 basis points, reflecting the company's robust performance and market recognition.
- Bullish Technical Picture: Over the past year, Planet Labs stock has surged 323.71%, currently trading 1% below its 20-day Simple Moving Average but remains above both its 100-day and 200-day SMAs, indicating a favorable long-term trend.
- Short Interest Watch: Short interest rose modestly from 38.68 million to 38.95 million shares, representing 13.78% of publicly available shares, and with an average daily volume of 15.14 million shares, short sellers would need approximately 2.57 days to cover, potentially amplifying price volatility.
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- Nvidia Earnings Preview: Nvidia is set to release its earnings report on Wednesday at 4 PM ET, with shares rising 5.6% over the past three months, currently near $193, just 9% below the October 29 high of $212. The market anticipates a 5% price move post-earnings, indicating cautious optimism among investors regarding its future performance.
- Salesforce Stock Decline: Salesforce's shares have fallen 18% in the past three months, currently 40% off its 52-week high, as concerns about AI threatening software companies weigh on investor sentiment, with shares closing at $185.42 on Tuesday.
- Lowe's Strong Performance: Lowe's is scheduled to report earnings on Wednesday morning, having gained approximately 22% over the past three months and currently just 5% from a recent high two weeks ago, reflecting strong demand in the home improvement market and positive earnings expectations.
- Intensifying Banking Competition: JPMorgan CEO Jamie Dimon noted increasing competition in the banking sector, contributing to a 7% decline in the S&P Financials year-to-date, with JPMorgan down 7.7%, highlighting market concerns about the future of the banking industry.
See More
Planet Labs Partners with AXA DCP to Enhance Disaster Management
- Partnership Agreement: Planet Labs PBC announced a partnership with AXA DCP to utilize satellite data and an AI platform for real-time natural disaster monitoring, which is expected to significantly enhance clients' emergency response capabilities.
- Enhanced Environmental Intelligence: By integrating satellite imagery, AXA DCP can provide advanced environmental intelligence to clients, helping them preempt events triggered by extreme climate, thereby strengthening their risk management capabilities and market competitiveness.
- Formation of Advisory Boards: At the Munich Security Conference, Planet Labs announced the establishment of the European Advisory Board and Defense and Intelligence Advisory Board, aimed at fostering collaboration in Europe and developing national security solutions by leveraging expertise from government and defense sectors.
- Stock Performance Review: As of February 20, Planet Labs PBC's stock has risen 21% year-to-date, and while the market remains cautious about its investment potential, its performance in the military technology sector highlights the strategic value of the company in this field.
See More
U.S. Market Retreats Amid Iran Tensions
- Market Retreat Reasons: The stock market retreated due to concerns over U.S.-Iran tensions, indicating investor sensitivity to geopolitical risks, which may lead to increased volatility in the short term.
- GE Aero Leads New Buys: Despite the overall market decline, GE Aero emerged as a leader in new buys, reflecting investor confidence in its future growth potential, which could bring new capital inflows to the company.
- Comfort Systems Earnings Movement: Comfort Systems' earnings report garnered market attention, demonstrating its resilience in the current economic environment, potentially attracting more investor focus on its long-term growth strategy.
- Grail Earnings Impact: Grail's earnings report became a significant market driver, potentially affecting its stock price trajectory and prompting investors to reassess its future business outlook.
See More
Stock Market Retreats Amid U.S.-Iran Tensions
- Market Retreat Reasons: The stock market retreated due to heightened U.S.-Iran tensions and other significant headwinds, impacting investor sentiment and reflecting the market's sensitivity to geopolitical risks.
- GE Aero Leads New Buys: Despite the overall market decline, GE Aero emerged as a leader in new buys, indicating its relative resilience in the current environment and potentially attracting risk-averse investors.
- Comfort Systems Earnings Movement: Comfort Systems' earnings report drew market attention, showcasing its profitability in the current economic climate and possibly providing new investment opportunities for investors.
- Grail Earnings Impact: Grail's earnings report also became a market focal point, with strong performance likely to attract more investor interest in its future growth potential, even as the overall market faces pressure.
See More
US Market Retreats Amid US-Iran Tensions
- Market Retreat Reasons: The stock market retreated due to escalating tensions between the U.S. and Iran, causing investors to feel uneasy about the economic outlook, which led to declines in major indices and highlighted the market's sensitivity to geopolitical risks.
- GE Aero Leads New Buys: Despite the overall market weakness, GE Aero emerged as a standout for new buys, indicating strong performance in the aviation sector that may attract investors seeking safe havens, thereby enhancing its competitive position in the industry.
- Comfort Systems Earnings Volatility: Comfort Systems' earnings report drew significant market attention, and while specific figures were not disclosed, the volatility in its performance could impact investor confidence, reflecting the dynamics within the construction services sector.
- Grail Earnings Impact: Grail's earnings report became a focal point for the market, and although detailed data was not provided, the changes in its performance could significantly influence investor sentiment in the biotechnology sector, showcasing the high volatility and potential opportunities within the industry.
See More
Planet Labs Shares Rise on Institutional Ownership Increase
- Institutional Ownership Signal: A Schedule 13G/A filing reveals that Driehaus Capital Management owns 8.51 million Class A shares of Planet Labs, representing a 2.91% stake, indicating institutional investor confidence that may attract further attention from investors.
- Strong Market Performance: Planet Labs shares rose 0.42% on Thursday, outperforming the broader market by 22 basis points, while the Communication Services sector increased by 58 basis points, reflecting the company's robust performance and market recognition.
- Bullish Technical Picture: Over the past year, Planet Labs stock has surged 323.71%, currently trading 1% below its 20-day Simple Moving Average but remains above both its 100-day and 200-day SMAs, indicating a favorable long-term trend.
- Short Interest Watch: Short interest rose modestly from 38.68 million to 38.95 million shares, representing 13.78% of publicly available shares, and with an average daily volume of 15.14 million shares, short sellers would need approximately 2.57 days to cover, potentially amplifying price volatility.
See More
