Planet Labs (PL) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 revenue of $61.3 million, up 11% year-over-year, driven by strong growth in government and commercial contracts, including major wins with NASA, US Department of Defense, German Space Agency, and Brazilian Federal Police.

• Launched new AI-powered products such as global-scale forest carbon monitoring and advanced hyperspectral satellite capabilities, with Tanager-1 enabling over 300 CO2 and methane detections and Pelican-2 ready for launch with edge AI.

• End-of-period customer count increased 4% year-over-year to 1,015, with 97% of ACV recurring, indicating strong customer retention and contract renewals.

• Completed a 17% headcount reduction in June 2024 to improve operational efficiency, incurring $10.5 million in restructuring charges.

• Liquidity remains strong with $242 million in cash, cash equivalents, and short-term investments, and no debt at quarter end.

Financial highlights

• Q3 revenue reached $61.3 million, an 11% increase year-over-year, with non-GAAP gross margin at a record 64% and GAAP gross margin at 61%.

• Adjusted EBITDA loss narrowed to $242,000, marking the sixth consecutive quarter of improvement; net loss narrowed to $20.1 million from $38.0 million YoY.

• Net loss per share was $(0.07) for the quarter; non-GAAP EPS was $(0.02).

• EMEA revenue grew 15%, Asia-Pacific over 25%, Latin America over 30%, while North America was flat due to NASA contract timing.

• Ended Q3 with $242 million in cash, cash equivalents, and short-term investments, and no debt.

Outlook and guidance

• Q4 revenue expected between $61 million and $63 million, with non-GAAP gross margin of 63%-65% and adjusted EBITDA projected between $0-$2 million.

• Capital expenditures for Q4 planned at $8-$11 million, focused on next-generation satellite fleets.

• Backlog as of October 31, 2024 was $232.1 million, with 70% expected to be recognized as revenue in the next 12 months.

• Optimism for revenue acceleration in fiscal 2026, especially in the back half of the year.

• Liquidity is sufficient for the next 12 months, with continued investment in R&D, sales, and software.