Planet Posts Record $116 Million Quarter as Sovereign Satellite Services Drive Growth

Planet Labs reported record quarterly revenue of $116.1 million for the second quarter of fiscal year 2027, a 58% increase year over year. The company, which ended the period on July 31, 2026, delivered adjusted EBITDA profit of $13.9 million and marked its fourth consecutive quarter of meeting or exceeding the Rule of 40.

Chief Executive Officer Will Marshall attributed the results to strong execution across the business, citing a satellite handover for the Swedish Armed Forces and contract wins in August with the National Geospatial-Intelligence Agency and the German government. Marshall said the company's strategy pairs AI-enabled analytics with sovereign satellite services, merging its core growth vectors into a single offering.

Recurring annual contract value stood at 98% at quarter end. Gross margin was 57%, down from 58% a year earlier, while non-GAAP gross margin was 59% compared with 61%. Net loss narrowed to $9.4 million from $22.6 million in the prior-year quarter. GAAP net loss per share was $0.03, and non-GAAP net income per share was $0.02. Adjusted EBITDA profit rose to $13.9 million from $6.4 million a year earlier.

The company ended the quarter with $865.4 million in cash, cash equivalents, and short-term investments, up 219% year over year. During the quarter, Planet raised approximately $120 million through stock sales under its At-The-Market program at an average net sale price of $31.95 per share. Remaining Performance Obligations were approximately $753.1 million, and backlog was approximately $814.9 million. Year-to-date free cash flow was $21.3 million, and adjusted free cash flow was $28.8 million.

President and Chief Financial Officer Ashley Johnson said the top-line performance translated into significant operating leverage, exceeding expectations on non-GAAP gross margins. Johnson said the company's cash position gives it strategic flexibility to invest behind core growth initiatives while driving sustainable, long-term cash flow generation.

Planet detailed several contract wins and operational milestones. In August, it received an $8 million OTA award from the NGA to deploy its Global Monitoring Service, and the German government awarded it a satellite services tender with a maximum possible value of €25 million over five years. A European government customer signed a seven-figure, one-year agreement for high-resolution global Mosaics and professional services. The company also signed a national program with the Rwanda Space Agency, its first of its kind in Africa, and renewed a one-year contract with the New Mexico State Land Office covering more than 9 million acres of public trust land. A hyperscaler AI developer renewed a deal for global monitoring of data centers and semiconductor manufacturing facility construction using Planet's Pelican data.

On the technology front, Planet launched the Pelican-11 technical demonstration satellite in July, bringing the total high-resolution Pelicans on orbit to 10. The Tanager-2 satellite and 18 SuperDove satellites shipped to Vandenberg Space Force Base ahead of the Transporter-18 mission with SpaceX, marking Planet's third launch this year. The company announced a launch agreement with Isar Aerospace for a Pelican satellite, described as a national first for Germany given both satellite and rocket are built there. Planet also began facility set-up at its Berlin manufacturing site on September 1 and opened a new office in London.

Investors will watch the upcoming Transporter-18 launch carrying Tanager-2 and the SuperDove Flock 4J, along with the start of manufacturing at the Berlin facility scheduled for this year.