Planet Labs PBC (NYSE:PL) Q4 2025 Earnings Call Transcript
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Overview
The earnings call reveals strong financial performance with 11% YoY revenue growth and significant improvements in gross margin and EBITDA. The company's strategic plans, including AI partnerships and satellite service expansions, indicate promising future growth. Despite some concerns about CapEx and macroeconomic risks, the overall sentiment is positive, supported by a strong backlog and increasing RPOs. The market is likely to react positively to the first-ever adjusted EBITDA profitability and optimistic long-term outlook.
Key Financial Performance
Q4 2025 Revenue $61.6 million, representing approximately 5% year-over-year growth.
Full Year 2025 Revenue $244.4 million, representing approximately 11% year-over-year growth.
Q4 2025 Non-GAAP Gross Margin 65%, compared to 58% in Q4 FY24.
Full Year 2025 Non-GAAP Gross Margin 60%, compared to 54% in FY24.
Q4 2025 Adjusted EBITDA $2.4 million, marking the first quarter of adjusted EBITDA profitability in the company’s history.
Full Year 2025 Adjusted EBITDA Loss $10.6 million, compared to a $55.3 million loss in FY24.
Q4 2025 Capital Expenditures $12.8 million, slightly higher than expected due to timing of procurements.
Full Year 2025 Capital Expenditures $49.6 million, or approximately 20% of revenue.
End of Q4 2025 Cash and Investments Approximately $222 million.
End of Q4 2025 Remaining Performance Obligations (RPOs) Approximately $407.5 million, up 179% quarter-over-quarter.
End of Q4 2025 Backlog Approximately $498.5 million, up 115% quarter-over-quarter.
Net Dollar Retention Rate 106%, with win backs at 107%.
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Operating Highlights
New Product Launches: Successfully launched Pelican 2 satellite, performing well in space and providing valuable insights. Tanager 1 satellite launched last summer, producing powerful hyperspectral data, with plans to offer commercial data to the broader market.
Product Enhancements: Released a physics-based resolution sharpening technique that improves usability of daily scan visual products. Advanced low-touch enablement in the Planet Insights platform for smaller customers.
Market Expansion: Closed a $230 million contract with JSAT to build, launch, and operate a constellation of 10 high-resolution Pelican satellites, with plans to sell the rest of the world’s capacity.
Geographical Growth: Revenue growth in EMEA (15%), Latin America (30%), Asia Pacific (15%), and North America (5%). Strong demand for national security solutions in the current geopolitical environment.
Operational Efficiency: Achieved first adjusted EBITDA positive quarter in Q4, with a record non-GAAP gross margin of 65%.
Backlog Growth: Backlog increased to approximately $498.5 million, up 115% quarter-over-quarter, providing a solid foundation for growth.
Strategic Shift: Shifted to a vertically-focused go-to-market structure, emphasizing selling solutions rather than just data.
AI Integration: Investing in AI to enhance satellite data extraction and delivery, collaborating with Anthropic to combine satellite data with AI models.
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Risk or Challenges
Earnings Expectations: Planet Labs PBC missed earnings expectations with a reported EPS of $-0.08, compared to expectations of $-0.02.
Geopolitical Risks: The company noted significant transitions in geopolitics and technology, indicating that countries are moving quickly to secure access to technology and information, which could impact demand for their services.
Regulatory Issues: The company mentioned that contracts often include termination for convenience clauses, which could pose risks in revenue recognition and contract stability.
Supply Chain Challenges: There were mentions of increased capital expenditures due to timing of procurements for satellites and ground station infrastructure, indicating potential supply chain challenges.
Economic Factors: The company acknowledged potential risks related to timing of new business, customer usage patterns, and revenue recognition, which may be affected by current geopolitical and economic uncertainties.
Customer Count: The end-of-period customer count decreased sequentially, reflecting a focus on larger customers, which may pose risks to revenue stability from smaller accounts.
Capital Expenditures: The company plans for significant capital expenditures of approximately $50 million to $65 million for the year, which could impact cash flow if not managed effectively.
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Guidance & Outlook
Strategic Initiatives: Shifted go-to-market structure to a vertically-focused approach, emphasizing solutions over data sales.
Strategic Initiatives: Closed a $230 million contract with JSAT to build and operate a constellation of 10 high-resolution Pelican satellites.
Strategic Initiatives: Launched the Planet Insights platform and Global Forest Carbon Monitoring product.
Strategic Initiatives: Investing in AI to enhance satellite data value extraction and solution development.
Strategic Initiatives: Pursuing partnerships in defense, intelligence, civil government, and commercial markets.
Revenue Expectations: Expecting Q1 FY 2026 revenue between $61 million and $63 million.
Revenue Expectations: Expecting FY 2026 revenue between $260 million and $280 million.
Gross Margin Guidance: Expecting non-GAAP gross margin for Q1 FY 2026 between 58% and 60%.
Gross Margin Guidance: Expecting non-GAAP gross margin for FY 2026 between 55% and 57%.
Adjusted EBITDA Guidance: Expecting adjusted EBITDA loss for Q1 FY 2026 between -$3 million and -$2 million.
Adjusted EBITDA Guidance: Expecting adjusted EBITDA loss for FY 2026 between -$13 million and -$7 million.
Capital Expenditures Guidance: Planning for capital expenditures of approximately $11 million to $16 million in Q1 FY 2026.
Capital Expenditures Guidance: Planning for capital expenditures of approximately $50 million to $65 million for FY 2026.
Cash Flow Outlook: Expecting to reduce cash burn by approximately 50% in FY 2026.
Long-term Outlook: Confident in achieving positive cash flow within the next 24 months.
Growth Outlook: Expecting meaningful revenue growth rate acceleration in FY 2027.
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Shareholder Return Plan
JSAT Contract: Planet Labs signed a landmark $230 million commercial agreement with JSAT, expected to recognize revenue over approximately the next seven years, with cash payments weighted towards the earlier years.
Backlog Increase: The company's backlog increased to approximately $498.5 million, up 115% quarter-over-quarter, providing a solid foundation for growth.
Remaining Performance Obligations (RPOs): Remaining performance obligations were approximately $407.5 million, up 179% quarter-over-quarter.
Capital Expenditures: Capital expenditures for Q4 were approximately $12.8 million, with full-year capital expenditures at approximately $49.6 million, reflecting investments in next-generation fleets.
Future Capital Expenditures: For fiscal 2026, capital expenditures are planned to be between $50 million and $65 million, aimed at fulfilling customer demand for high-resolution and hyperspectral data.
Cash Flow Expectations: Planet expects to reduce cash burn by approximately 50% in fiscal 2026 and aims to achieve positive cash flow within the next 24 months.
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Key Q&A
Q:Focusing on the pre-cash flow dynamics, if we could maybe just kind of flesh out the bridge, including what’s moving in and out of CapEx and gross margin, as well as some of the working capitals assumptions you’re making in 26. And then given that the company made some commentary on 27, if we can kind of just flesh out a little bit what the cadence looks like to getting to pre-cash flow positive. Thanks.
A:We are in a peak CapEx investment cycle this year, expecting cash burn to be roughly half this year versus last year. The JSAT contract is structured to fund working capital, and we could see getting to cash flow profitability over the next 24 months.
Q:I want to ask on the AI deal with Anthropic. In terms of the discussions you have with them, how are you thinking about the ultimate monetization of these, whether it’s used to a model or whether it’s just selling data to them? How are you sort of thinking about the way to actually make a lot of money off this?
A:We are excited about the partnership and believe our unique data set is primed for AI applications. Our near-term focus is on AI-enabled solutions that drive revenue, while the foundation efforts with Anthropic are more experimental but have great potential.
Q:Ashley, at the end of your remarks there you talked about AI, Pelican, Tanager, and new satellite service wins as a revenue opportunity in 27. Would those be incremental to the doubling of the growth rate or are those included in that doubling of the growth rate goal?
A:The doubling of the growth rate is based on secured contracts and our ability to renew that business. Upside includes investments in AI and potential new contracts.
Q:If you don’t mind, just a couple of quick clarification questions and then one more meaty one. On the clarification of the doubling of the growth rate, is that at the midpoint of the range in 2026? So you double off of the midpoint or could we grow off the, could we double off the top end of your range?
A:We’re looking at the midpoint of our guidance for FY27.
Q:On the increased expenses that you expect here in 26, is that kind of like a one time in nature kind of thing and that rolls down in 27, or do we need to see revenue growth for margin expansion?
A:We are investing in R&D and staffing, so these are not one-time expenses but necessary for growth.
Q:Just kind of curious how you’re thinking about the monetization outside of that part of the world. Thanks.
A:The partnership allows us to monetize the rest of the world while JSAT has dedicated access over Japan.
Q:With regards to the revenue guide, Ashley, how much does that contemplate the current chaotic situation in Washington?
A:We’ve taken a conservative approach to our guidance, reflecting potential risks related to macro pressures and timing of new business.
Q:Can you elaborate a little bit on that?
A:We’re seeing strong demand and interest from different countries, but I don’t have a specific pipeline number at this moment.
Q:Review of Unclear Management Responses
A:Management avoided providing specific numbers regarding the pipeline size and the impact of the current chaotic situation in Washington on revenue guidance.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Bayer
Carbon
Copernicus
ESA
FY
General
Insights platform
JSAT
PBC miss
Palmer Poroner
Poroner Investor
Syngenta
Tanager
access Planet
accuracy
advance
agreement
asset
country access
defense intelligence
domain awareness
energy
goal
handful
intelligence area
intelligence sector
market satellite
milestone
monitoring service
pace
partnership
prototype
record margin
resolution fleet
satellite service
service market
step satellite
touch
user
value satellite
PL Transcript
Planet Labs PBC (PL) Q3 2026 Earnings Call Transcript
Positive12-11
The earnings call summary reveals strong demand for satellite services, a significant backlog, and positive financial metrics. Despite some uncertainties in project timelines, management's optimistic guidance and strategic partnerships, like with Google, suggest a positive outlook. The Q&A session highlighted confidence in meeting fiscal targets and scaling opportunities, further boosting sentiment. However, the lack of specific guidance on certain projects and potential sector pressures temper enthusiasm slightly. Overall, the sentiment leans positive, anticipating a modest stock price increase.
Planet Labs PBC (PL) Q2 2026 Earnings Call Transcript
Unknown9-8
The earnings call presents a mixed outlook. While there is strong growth in the Defense & Intelligence sector and promising partnerships, the guidance for Q2 and full-year shows expected losses and lower margins. The Q&A highlights strong demand and strategic partnerships but lacks detailed guidance, leading to uncertainty. The positive backlog growth and strategic initiatives are countered by the negative outlook on EBITDA and capital expenditures, resulting in a neutral sentiment.
Planet Labs PBC (PL) Q1 2026 Earnings Call Transcript
Positive6-5
The earnings call reveals positive financial performance with a 10% YoY revenue growth, improved gross margins, and positive free cash flow. The backlog and RPOs have significantly increased, indicating strong future revenue visibility. Despite economic uncertainties and customer concentration risks, the company is focusing on larger customers and has a strong partnership with Anthropic. The Q&A section shows optimism about growth and minimal disruption from tariffs. Overall, the company's strategic initiatives and financial health suggest a positive outlook, likely resulting in a stock price increase of 2% to 8%.
Planet Labs PBC (NYSE:PL) Q4 2025 Earnings Call Transcript
Positive3-22
The earnings call reveals strong financial performance with 11% YoY revenue growth and significant improvements in gross margin and EBITDA. The company's strategic plans, including AI partnerships and satellite service expansions, indicate promising future growth. Despite some concerns about CapEx and macroeconomic risks, the overall sentiment is positive, supported by a strong backlog and increasing RPOs. The market is likely to react positively to the first-ever adjusted EBITDA profitability and optimistic long-term outlook.
PL Slides
PL Report
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