Planet Labs Secures $230 Million Contract, Achieves Positive Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15h ago
0mins
Source: Fool
- Major Contract Signing: Planet Labs secured a seven-year, $230 million contract with Japan's SKY Perfect JSAT, which will fund the construction of 32 Pelican high-resolution satellites and is expected to add $33 million to annual revenue, significantly improving the company's financial outlook.
- Cash Flow Transformation: This contract flipped Planet Labs from a cash-burning state to positive cash flow, as the company reported its third consecutive quarter of positive free cash flow in Q3 2026, generating $55.2 million year-to-date, with an annualized run rate of $73.6 million, indicating a strong financial recovery.
- Backlog Growth: Planet Labs experienced a 33% year-over-year revenue increase in Q3, while tripling its backlog of orders, which foreshadows potential sales growth ahead and enhances market confidence in its future performance.
- Market Valuation Increase: Despite Planet Labs' market capitalization quadrupling to $6.5 billion in 2025, its current P/E ratio stands at 88, reflecting optimistic market expectations for future cash flow growth, prompting investors to monitor its ability to sustain positive cash flow to justify its current valuation.
Analyst Views on PL
Wall Street analysts forecast PL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PL is 15.41 USD with a low forecast of 10.90 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 22.440
Low
10.90
Averages
15.41
High
20.00
Current: 22.440
Low
10.90
Averages
15.41
High
20.00
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.
