Executive Summary
Planet Labs delivered a pivotal QQ4 2025, marking the first quarter of adjusted EBITDA profitability in the company’s history and signaling a meaningful transition toward higher-value, solution-driven revenue. Revenue in Q4 reached $61.6 million, up 5% year-over-year, while full-year revenue totaled $244.4 million, up 11% versus the prior year. Non-GAAP gross margin improved to a record 65% in Q4 and 60% for the full year, reflecting cloud infrastructure gains offset by satellite depreciation. The company closed a landmark $230 million commercial agreement with JSAT to build, launch, and operate 10 Pelican high-resolution satellites, with rest-of-world capacity monetization expected to accelerate growth and cash flow. Backlog expanded to about $498.5 million and remaining performance obligations (RPO) to about $407.5 million, both up sharply quarter-over-quarter, underscoring material visibility into FY27 growth. Management emphasizes a strategic shift to vertical, solution-based sales anchored by Planet Insights, MDA and GMS like offerings, and anticipates back-half acceleration driven by Pelican/Tanager data, AI-enabled solutions, and additional satellite services deals. The near-term guidance implies continued investment in space systems and AI, with a targeted move toward cash-flow profitability over the next 24 months, supported by a strong balance sheet (no debt) and roughly $222 million of liquidity. Investors should monitor the pace of backlog conversion, NDRR dynamics as the company embeds data into core operations, and the cadence of satellite service wins that could meaningfully uplift revenue growth and gross margins toward the long-term target of 70–80% non-GAAP gross margin.
Key Performance Indicators
QoQ: -75.06% | YoY:-16.85%
QoQ: -75.18% | YoY:-9.09%
Key Insights
Revenue: Q4 2025 $61.6 million, up ~5% YoY; Full-year 2025 $244.4 million, up ~11% YoY. Gross margin: Q4 non-GAAP gross margin 65% (FY25: 60%); EBITDA: Q4 adjusted EBITDA $2.4 million (first quarter of positive EBITDA in company history); Full-year adjusted EBITDA loss ~$10.6 million. Profitability: Q4 net income per share (EPS) -$0.12; Full-year net income -$35.15 million; Operating margin (GAAP) negative, with non-GAAP gross margin expansion supporting future profitability. Backlog/RPO: RPO ~$...
Financial Highlights
Revenue: Q4 2025 $61.6 million, up ~5% YoY; Full-year 2025 $244.4 million, up ~11% YoY. Gross margin: Q4 non-GAAP gross margin 65% (FY25: 60%); EBITDA: Q4 adjusted EBITDA $2.4 million (first quarter of positive EBITDA in company history); Full-year adjusted EBITDA loss ~$10.6 million. Profitability: Q4 net income per share (EPS) -$0.12; Full-year net income -$35.15 million; Operating margin (GAAP) negative, with non-GAAP gross margin expansion supporting future profitability. Backlog/RPO: RPO ~$407.5 million (up 179% QoQ); Backlog ~$498.5 million (up 115% QoQ); Customer base: end-of-year customers ~976; Recurring ACV ~97% of end-of-period ACV; Net dollar retention (NDRR) ~106% (107% with win backs). Cash/Capital allocation: Cash and cash equivalents + short-term investments roughly $222 million of liquidity; End-period cash balance per balance sheet: approx. $118 million in cash and cash equivalents and $104 million in short-term investments; Capex: FY25 ~$49.6 million (≈20% of revenue); Q4 Capex ~$12.8 million. Guidance: Q1 FY2026 revenue guidance $61–63 million; FY2026 revenue guidance $260–$280 million; non-GAAP gross margin FY26 55–57%; Adjusted EBITDA FY26 loss of $7–$13 million; Capex FY26 $50–$65 million; Cash burn reduction ~50% in FY26; Anticipated path to positive cash flow within ~24 months. Valuation metrics (callouts): 4Q25 GAAP/Non-GAAP margins expanding; long-term gross margin target of 70–80% remains intact; JSAT contract improves capacity monetization and margin potential beyond its region of interest.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
61.55M |
4.59% |
0.47% |
| Gross Profit |
38.22M |
17.65% |
1.86% |
| Operating Income |
-19.37M |
42.90% |
14.34% |
| Net Income |
-35.15M |
-16.85% |
-75.06% |
| EPS |
-0.12 |
-9.09% |
-75.18% |
Key Financial Ratios
operatingProfitMargin
-31.5%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.07
priceEarningsRatio
-12.86
Management Commentary
Key insights from management and quotes by theme:
- Strategy and growth acceleration: Will Marshall highlighted a strategic pivot to a vertically-focused, solutions-based go-to-market, the 230 million JSAT contract, and the move into scaled satellite services as a major growth driver. Quote: “We shifted our go-to-market structure to be a vertically-focused approach and towards selling solutions… this sets Planet on a sound footing going into this year.”
- Backlog, RPO, and visibility: Will emphasized backlog growth to almost $0.5 billion and RPO reaching ~$407.5 million, underscoring a solid foundation for FY27 revenue acceleration. Quote: “Backlog increased in the quarter to almost $0.5 billion, up over 100% year-over-year and approximately 115% quarter-over-quarter.”
- JSAT and capital allocation: Will described JSAT as a cornerstone strategic partner with a win-win-win structure, reinforcing capacity expansion and revenue upside beyond the partner region. Quote: “Under this agreement, Planet will build, launch, and operate a constellation of 10 high-resolution Pelican satellites for JSAT… a major step forward for Planet in the satellite services market.”
- Financial performance and profitability: Ashley Johnson noted a peak CapEx cycle and the path to cash burn reduction, with Q4 EBITDA profitability marking a milestone. Quote: “CapEx cycle this year… cash burn to be roughly half this year versus last year… we could see getting to cash flow profitability over the next 24 months.”
- AI and strategic tie-ins: The company highlighted Anthropic collaboration to fine-tune Claude on satellite data and the broader potential of AI-enabled solutions to accelerate value delivery and broaden accessibility to Planet data. Quote: “Anthropic is fine-tuning its Claude model on satellite data… AI can enhance the extraction of value from satellite data and accelerate delivery of insights.”
“We shifted our go-to-market structure to be a vertically-focused approach and towards selling solutions.”
— Will Marshall
“Under this agreement, Planet will build, launch, and operate a constellation of 10 high-resolution Pelican satellites for JSAT.”
— Will Marshall
Forward Guidance
Outlook and risk assessment: Planet guides for a measured but progressive expansion in FY26 and beyond, anchored by a growing backlog and large multi-year contracts like JSAT. The company contends that the trajectory toward cash-flow profitability is achievable within ~24 months, supported by a shift to high-value, recurring, multi-year ACV contracts (97% recurring ACV, NDRR ~106–107%). Management anticipates AI-enabled solutions and Pelican/Tanager data coming online to act as accelerants for revenue growth and gross margin expansion, with long-term gross margin guidance targeting 70–80%. Key targets include: (i) FY26 revenue of $260–$280 million; (ii) FY26 non-GAAP gross margin 55–57% (vs. 60% in FY25) due to JSAT-related depreciation and partner revenue mix; (iii) FY26 adjusted EBITDA margin loss of $7–$13 million; (iv) Capex in the $50–$65 million range; and (v) cash burn reduction ~50% in FY26 and a path to positive cash flow in the next 24 months. Investment considerations: The core uncertainties relate to geopolitical and macro conditions affecting government and civil sector spending, potential delays in recognizing revenue from the new satellite services contract, and execution risk in scalingPelican/Tanager deployments. Upside catalysts include faster-than-expected monetization of the JSAT capacity outside its area of interest, additional satellite services deals, stronger-than-expected NDRR improvements, and accelerating AI-enabled solution adoption across verticals. Key factors for investors to monitor: (1) pace of backlog conversion into revenue; (2) progression of the JSAT program (timeline for Pelican deployments and capacity monetization globally); (3) realization of AI-enabled solution revenue and its contribution to gross margins; (4) trajectory toward positive free cash flow and the sustainability of capex discipline.