Executive Summary
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.
Key Performance Indicators
QoQ: -78.90% | YoY:41.57%
QoQ: -76.48% | YoY:42.85%
Key Insights
Revenue: $73.4 million in Q2 2026, up ~20% YoY; Gross Margin (Non-GAAP): 61% in Q2 2026 vs 58% in Q2 FY25; Adjusted EBITDA: $6.4 million in Q2 2026 (third consecutive quarter of positive Adjusted EBITDA); Net cash from operating activities (YTD): $85.1 million; Free cash flow (YTD): $54.3 million (free cash flow margin ~39%); Backlog: $736.1 million at quarter end, up 245% YoY; Remaining Performance Obligations (RPO): ~$690 million, with ~32% in 12 months and ~57% in 12–24 months; End-of-perio...
Financial Highlights
Revenue: $73.4 million in Q2 2026, up ~20% YoY; Gross Margin (Non-GAAP): 61% in Q2 2026 vs 58% in Q2 FY25; Adjusted EBITDA: $6.4 million in Q2 2026 (third consecutive quarter of positive Adjusted EBITDA); Net cash from operating activities (YTD): $85.1 million; Free cash flow (YTD): $54.3 million (free cash flow margin ~39%); Backlog: $736.1 million at quarter end, up 245% YoY; Remaining Performance Obligations (RPO): ~$690 million, with ~32% in 12 months and ~57% in 12–24 months; End-of-period customers: 908; Cash and equivalents/short-term investments: ~$271.5 million; CapEx (Q2): ~$21.5 million; Q3 guidance: Revenue $71–74 million; Non-GAAP gross margin guidance: 55–57%; Adjusted EBITDA: -$4 million to break-even; CapEx guidance: $18–$24 million; Full-year 2026 guidance: Revenue $281–$289 million; Non-GAAP gross margin: 55–57%; Adjusted EBITDA: -$7 million to break-even; CapEx: $65–$75 million; Investor Day scheduled for Oct 16, 2025.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
73.39M |
20.12% |
10.75% |
| Gross Profit |
42.27M |
26.20% |
15.48% |
| Operating Income |
-17.00M |
57.06% |
25.36% |
| Net Income |
-22.59M |
41.57% |
-78.90% |
| EPS |
-0.07 |
42.85% |
-76.48% |
Management Commentary
Theme: Growth drivers and AI integration. Will Marshall highlighted that the company has launched nearly 200 satellites and is leveraging AI to deliver integrated global insights via AI-enabled solutions and expanding satellite services. Quote: “we've more than doubled our revenue run rate while driving bottom line performance to reach adjusted EBITDA and free cash flow profitability milestones.”
Theme: Backlog and visibility. Management noted backlog of $736.1 million, up 245% YoY, providing visibility for 12–24 months and contributing to confidence in FY27 growth. Quote: “Backlog increased to $736.1 million at the end of the quarter, representing a year-over-year increase of 245%.”
Theme: DoD and allied government demand. Defense & Intelligence revenue grew ~41% YoY, with wins including NATO, DoD, JSAT and EOCL expansions. Quote: “Defense and Intelligence sector, where Q2 revenue accelerated to approximately 41% growth year-on-year.”
Theme: Maritime Domain Awareness. Mariner and EOCL expansions emphasize maritime domain awareness and other AI-enabled corridor solutions. Quote: “This is our most mature AI-enabled solution, and we have a strong pipeline of others that we're going after.”
The production line is now fully ramped, and we now have 4 Pelicans in orbit and multiple Pelican launches slated for the next year.
— William Marshall
Non-GAAP gross margin for the second quarter was 61% compared to 58% in the second quarter of fiscal year '25, demonstrating improvement year-over-year.
— Ashley Whitfield Johnson
Forward Guidance
Q3 2026 guidance: Revenue $71–$74 million; Non-GAAP gross margin 55–57%; Adjusted EBITDA -$4 million to break-even; CapEx $18–$24 million. Full-year FY2026 guidance: Revenue $281–$289 million; Non-GAAP gross margin 55–57%; Adjusted EBITDA -$7 million to break-even; CapEx $65–$75 million. Free cash flow positive for the year, two quarters ahead of prior target, and rolling 12-month free cash flow profitability achieved in Q2. The management emphasizes a growth capex cycle to fund Pelican, Tanager, and SuperDove fleets, with expectations to sustain profitability over the long term as higher-margin data subscriptions and AI-enabled solutions scale. Investor Day on Oct 16, 2025 to discuss growth outlook, market opportunity, and longer-term targets. Factors to monitor include government budget cycles (usage-based patterns and potential early renewals), execution cadence on satellite services deals and expansions (Germany, Japan, JSAT and beyond), and the evolving AI-enabled solutions mix (Anthropic/Google collaborations, downstream applications like Maritime Domain Awareness).