Planet Labs reported a solid Q2 2026 with meaningful top-line growth, margin expansion, and a substantiating shift toward recurring, high-margin data subscriptions and AI-enabled solutions. Revenue reached $73.4 million, up about 20% year over year, aided by Defense & Intelligence wins and higher-than-expected usage across government accounts. Non-GAAP gross margin rose to 61%, supported by the high-margin data subscription mix, while adjusted EBITDA reached $6.4 million, marking the third consecutive quarter of profitability on an adjusted basis. The company posted its second consecutive quarter of free cash flow positive, delivering year-to-date cash flow from operations of $85.1 million and free cash flow of $54.3 million (free cash flow margin ~39%). Backlog jumped to $736.1 million, up 245% YoY, providing robust visibility into revenue over the next 12–24 months and reinforcing confidence in FY27 growth acceleration. Planet now guides to be free cash flow positive for the current fiscal year, a target achieved over a year earlier than previously planned.
Strategically, the Defense & Intelligence segment drove outsized growth (roughly 41% YoY, 14% QoQ) with accelerations in core data/solutions and the JSAT satellite services contract. Notable win dynamics include a seven-figure option from the Defense Innovation Unit and an expanded EOCL contract with the National Reconnaissance Office for PlanetScope monitoring and maritime domain awareness. The company also highlighted AI-enabled solutions wins with NATO and DoD, and a multiyear 8-figure ACV renewal with Germany via SynMax for PlanetScope data and maritime domain awareness. Civil government revenue declined ~4% YoY as NICFI/Norway expirations weighed on the base, but UK Rural Payments Agency renewal and new Panamanian environmental monitoring collaboration illustrate meaningful secular demand in government monitoring applications. Commercial revenue grew ~6% YoY and ~13% QoQ, led by agriculture and energy, including a Farmdar win and Swiss Re drought-insurance collaboration that demonstrates real-world impact and ROI.
Operationally, the Pelican/Tanager programs advanced with two high-resolution Pelican satellites launched and commissioned, bringing the fleet in orbit to four with ongoing launches planned. The Tanager program surpassed one year of operation with Carbon Mapper validating methane/CO2 plume detection across 3,000 sources. Management underscored that the business is “humming” across data, solutions, and satellite services and emphasized the AI-driven, high-value nature of continued customer engagement. The outlook includes a EUR 240 million multiyear satellite services deal with Germany, continued JSAT execution, and a robust pipeline across global geographies. The company signaled a shift toward sustainable cash generation and a growth-capex investment cycle to scale the next-generation fleet, positioning Planet for accelerated growth into FY27 and beyond.