Planet Labs reported Q3 fiscal 2025 revenue of $61.3 million, up 11% year over year, with a record non-GAAP gross margin of 64% and an adjusted EBITDA loss of approximately $0.24 million. Management framed the quarter as a turning point toward profitability, highlighted by the strongest ACV bookings in company history and a robust government-led pipeline. Key developments include NASA CSDA awards (~$20 million over one year, with revenue timing impacted by procurement processes) and a third DoD pilot, both reinforcing a long-cycle but high-visibility growth trajectory driven by AI-enabled geospatial datasets and next-generation fleets (Tanager hyperspectral and Pelican high-resolution platforms).
Management signaled ongoing margin optimization from cloud infrastructure upgrades, with expectations for continued but moderating gross-margin improvements into the next quarters. The company is accelerating the deployment of next-generation datasets and capacity (Tanager, Pelican) while expanding strategic partnerships (Laconic Forest Carbon, Global Fishing Watch) to broaden addressable markets. Notably, the balance sheet remains highly liquid (roughly $242 million in cash, no debt) with a sizable RPO of $146 million and backlog of $232 million, supporting near-term growth investments and cashflow breakeven ambitions without capital raises. The guidance for Q4 2025 implies revenue between $61–63 million, gross margin of 63–65%, and returning to EBITDA profitability ($0–$2 million), underscoring a deliberate transition plan to profitability as large contracts ramp and onboarding efficiencies improve.
Overall, the QQ3 2025 results reflect a mature inflection point: stronger unit economics, expanding ACV with higher-value contracts, and an evolving dataset stack (PlanetScope ARPS, Forest Carbon Monitoring, Tanager, Pelican) that positions Planet to capitalize on AI-enabled analytics across government and select commercial verticals. The key caveats remain execution timing for large multi-year deals, onboarding ramp for new customers, and the inherent lags in government procurement cycles. Investors should weigh the upside of a broadened data fabric and international government traction against the persistent macro and contract-formation lead times that characterize Earth-observation businesses.