Planet Labs (PL) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $81.3 million, up 33% year-over-year, with strong contract wins in defense, intelligence, and commercial sectors, and momentum in AI-enabled monitoring solutions.

• Backlog grew 216% year-over-year to $734.5 million, reflecting robust demand and multi-year contract momentum.

• Non-GAAP gross margin was 60%, and Adjusted EBITDA profit was $5.6 million, marking the fourth consecutive quarter of Adjusted EBITDA profitability.

• Ended Q3 with $677.3 million in cash, cash equivalents, and short-term investments, bolstered by a $460 million convertible debt raise.

• Major contract wins included Luno B with NGA, NRO renewals, U.S. Navy, NATO, NASA, JSAT ($230M), and a €240M German government contract, with strategic initiatives in AI, satellite launches, and acquisitions.

Financial highlights

• Revenue of $81.3 million, up 33% year-over-year, driven by defense, intelligence, and civil government sectors.

• Non-GAAP gross margin at 60% (down from 64% YoY); GAAP gross margin at 57%.

• Adjusted EBITDA profit of $5.6 million; net loss widened to $59.2 million due to higher costs and warrant liability changes.

• Free cash flow year-to-date was $55.2 million; net cash from operating activities was $113.7 million.

• Cash, cash equivalents, and short-term investments totaled $677.3 million at quarter-end.

Outlook and guidance

• Q4 revenue expected between $76 million and $80 million, with non-GAAP gross margin of 50%-52% and adjusted EBITDA loss of $(7)–$(5) million.

• FY26 revenue guidance raised to $297 million–$301 million; non-GAAP gross margin 57%–58%; adjusted EBITDA profit $6–$8 million.

• FY26 capital expenditures planned at $81 million–$85 million; free cash flow expected to remain positive annually.

• Q4 growth rate expected to continue into FY27, with a focus on EBITDA break-even or better and sustained cash flow positivity.

• Capital expenditures and working capital requirements are expected to increase as the business grows.