Planet Labs Q2 Results Show Record Revenue but Miss Estimates
Planet Labs PBC (NYSE: PL), known for operating the world’s largest constellation of Earth observation satellites, released its fiscal Q2 2025 results last night. The company reported record quarterly revenue of $61.1 million, reflecting a 14% increase year-over-year. However, this figure fell short of the analyst estimate of $61.82 million. Earnings per share (EPS) for the quarter came in at -$0.13, missing the expected -$0.11.
Stock Decline Follows Planet Labs Q2 Results
Following the Q2 financial results announcement, Planet Labs’ stock experienced a sharp decline. The company’s market cap stands at $529.72 million. Revenue for the trailing twelve months (ttm) reached $235.76 million, while net income showed a loss of $136.05 million. Shares are currently trading around $2.23, down from the previous close of $2.48. The stock’s 52-week range spans from $1.67 to $2.94.
Financial Performance and Challenges
Planet Labs reported a net loss of $38.7 million for Q2, slightly worse than the $38.0 million loss reported in the same period last year. The company attributed $10.5 million of this loss to non-recurring charges related to headcount reduction. Despite these challenges, Planet Labs achieved a gross margin improvement to 53% from 49% year-over-year. The non-GAAP gross margin also expanded to 58%, up from 52%.
CEO Will Marshall commented, “During the second quarter, we saw continued strength with government customers, especially in the Defense & Intelligence sector where revenue grew over 30% year-over-year.”
Key Financial Milestones
Planet Labs achieved several notable financial milestones in Q2:
– Record quarterly revenue of $61.1 million, a 14% increase from $53.8 million in Q2 FY2024.
– Gross margin improved to 53%, and the non-GAAP gross margin expanded to 58%.
– Adjusted EBITDA loss narrowed to $4.4 million from $14.5 million year-over-year.
– Strong balance sheet with $249 million in cash and equivalents, and no debt.
President and CFO Ashley Johnson stated, “Our results for the second quarter demonstrate continued progress towards our target of achieving Adjusted EBITDA profitability in Q4 of this fiscal year.”
Operational Highlights
During the quarter, Planet Labs launched 36 SuperDove satellites and its first Tanager hyperspectral satellite. The company also secured significant contracts with NATO and the Government of Bahrain. These contracts highlight the growing demand for Planet’s high-resolution imaging and AI-enhanced data solutions.
Analysis
Planet Labs PBC’s Q2 results reveal a mixed performance. Although the company achieved record revenue and improved operational efficiency, it missed analyst estimates for both revenue and EPS. The strong performance in the Defense & Intelligence sector and the successful satellite launches indicate a robust growth trajectory. Nevertheless, the net loss and non-recurring charges present challenges that need to be addressed to meet profitability targets.
In summary, Planet Labs’ Q2 results showcase both progress and obstacles. The company’s record revenue and expanding margins are positive indicators, but the net loss and earnings miss highlight areas for improvement.
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