Executive Summary
Planet Labs delivered a strong QQ1 2026 performance characterized by a 10% year-over-year revenue increase to $66.3 million, a non-GAAP gross margin of 59% (up from 55% a year ago), and a positive adjusted EBITDA of $1.2 million. Management also announced a first-ever quarterly positive free cash flow of $8.0 million and a backlog exceeding $500 million, underscoring durable demand and improved visibility. The company advanced its two-pronged growth strategy: (1) delivering integrated global insights via AI-enabled solutions to broaden the addressable market and accelerate value realization, and (2) expanding the satellite services offering to finance and scale next-generation fleets, including JSA and downstream data products.
Key Performance Indicators
QoQ: -17.58% | YoY:34.13%
Key Insights
Revenue and growth: QQ1 2026 revenue of $66.3 million, up ~10% YoY, driven by defense/intelligence wins, higher government usage, and progress on the JSA contract. Gross margin: non-GAAP gross margin at 59% in Q1 2026, up from 55% in Q1 2025. Profitability: Adjusted EBITDA of $1.2 million in Q1, marking the second consecutive quarter of adjusted EBITDA profitability. Cash flow and liquidity: Net cash from operating activities of $17.3 million and free cash flow of $8.0 million in QQ1 2026, with ...
Financial Highlights
Revenue and growth: QQ1 2026 revenue of $66.3 million, up ~10% YoY, driven by defense/intelligence wins, higher government usage, and progress on the JSA contract. Gross margin: non-GAAP gross margin at 59% in Q1 2026, up from 55% in Q1 2025. Profitability: Adjusted EBITDA of $1.2 million in Q1, marking the second consecutive quarter of adjusted EBITDA profitability. Cash flow and liquidity: Net cash from operating activities of $17.3 million and free cash flow of $8.0 million in QQ1 2026, with cash and short-term investments totaling approximately $226.1 million at quarter-end. Backlog and visibility: Remaining performance obligations (RPO) of ~$451.9 million, up 262% YoY; backlog of ~$527 million, up 140% YoY; ~45% of backlog/RPO expected to be recognized in the next 12 months, ~76% in the next 24 months. Customer and contract metrics: End-of-period customers ~919; Recurring ACV comprised ~97% of end-of-period ACV; Net dollar retention ~103% (WindBox 104%); average contract length ~2 years on ACV basis.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
66.27M |
9.64% |
7.65% |
| Gross Profit |
36.60M |
15.53% |
-4.22% |
| Operating Income |
-22.77M |
34.13% |
-17.58% |
| Net Income |
-12.63M |
56.89% |
64.08% |
| EPS |
-0.04 |
57.90% |
64.92% |
Management Commentary
Key insights from management call organized by themes:
- Strategy and capital allocation: Planet reiterated its focus on two core initiatives—AI-enabled global insights and rapid expansion of satellite services—aiming to establish Tana as the global leader in monitoring the physical world at scale.
- Operations and program execution: Management highlighted robust momentum in DNI (defense and intelligence) with >20% YoY growth in Q1, eight-figure ACV expansion in Europe for PlanetScope data + MDA, and seven-figure expansion for MDA with a long-term customer. The JSA contract is proceeding well, with multiple strategic deals progressing in Q1. They also cited platform improvements (self-service for small customers) and new aircraft detection analytics as catalysts for broader adoption.
- Civil government and international momentum: California SDPP ($95m contract via Carbon Mapper), expanded German BKG contract, and Welsh government engagement illustrate expanding civil government penetration and cross-border opportunities.
- Financial trajectory and guidance: The company reaffirmed its guidance for FY2026, highlighting continued gross margin expansion and a path to profitability with a long-term capex plan to fund next-gen fleets. Management emphasized that quarter-to-quarter cash flow could vary but remains focused on sustainable free cash flow over the next 24 months.
Backlog grew to over half a billion dollars at the end of the quarter, reinforcing our path to accelerating growth.
— Will Marshall
Overall, we are seeing unprecedented interest in our solutions.
— Will Marshall
Forward Guidance
Near-term operating plan: Q2 revenue guidance of $65–$67 million with non-GAAP gross margin of 56–57% and an adjusted EBITDA loss of $2–$4 million, reflecting ongoing investments and the timing of capex, including catch-up on satellite program expenditures. Full-year 2026 guidance remains $265–$280 million in revenue, with gross margin projected 55–57% and an adjusted EBITDA loss of $12–$7 million. Capex guidance maintained at $50–$65 million for the year. The company underscored a robust pipeline (backlog and RPO) and potential upside from larger downstream data opportunities, international government deals, and the JSA satellite services expansion. Risks to watch include: geopolitical and budgetary uncertainty affecting government spend (NASA, EOCL, NRO/NGA), potential variability in government procurement cycles, and execution risk given rapid fleet scaling. Key monitorables for investors: quarterly cadence of contract wins (especially DNI and MDA), backlog conversion rate into revenue, JSA utilization and capacity monetization, and progress on AI-enabled solutions monetization (accuracy, adoption across customers, and incremental data sales). Overall investment thesis rests on accelerating downstream solutions adoption and expanding satellite services to fund and monetize next-gen fleets, supported by a growing pipeline and a durable backlog that provides visibility into 2027 growth.