Planet Labs (PL) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 FY25 revenue of $61.1M, up 14–15% year-over-year, led by strong growth in government, especially Defense & Intelligence, and new customer additions.

• Customer count reached 1,012 at quarter end, with over 90% of contracts annual or multi-year and 96% recurring ACV.

• Implemented a 17% workforce reduction, incurring $10.5M in one-time charges, to improve efficiency and support long-term profitability.

• Launched Tanager-1 hyperspectral satellite and 36 SuperDoves, expanding data and technological capabilities.

• Secured major contracts, including a seven-figure deal with NATO, and expanded relationships with BASF and international defense customers.

Financial highlights

• Q2 FY25 revenue grew to $61.1M, up 14–15% year-over-year, with government sector revenue up over 30% and civil government up over 20%.

• Non-GAAP gross margin was 58% (up from 52% year-over-year); GAAP gross margin was 53%.

• Adjusted EBITDA loss improved to $(4.4)M, marking the fifth consecutive quarter of improvement.

• Net loss was ($38.7)M for the quarter, including $10.5M in restructuring charges.

• Ended Q2 with $249M in cash, cash equivalents, and short-term investments; no debt outstanding.

Outlook and guidance

• Q3 FY25 revenue expected between $61M and $64M, representing 10–16% year-over-year growth.

• Non-GAAP gross margin guidance for Q3 is 59–61%, with adjusted EBITDA loss expected between ($5M) and ($2M).

• CapEx for Q3 projected at $13M–$16M, reflecting ongoing investment in next-gen fleets.

• Targeting Adjusted EBITDA profitability in Q4 FY25.

• Headcount reduction expected to be substantially complete by fiscal year-end.