- The company said that its defense and intelligence unit’s revenue grew more than 50% year-on-year, bolstered by strong performance in data subscriptions, solutions, and satellite services.
- It said that its RPOs climbed 106% YoY to $852 million, while its backlog at the end of the year was at more than $900 million.
- The company forecast capital expenditures for the year in the range of $80 million and $95 million to meet investments in next-generation satellites.
Shares of Planet Labs (PL) rallied by over 20% in Thursday’s post-market trading session after the satellite imagery company posted strong fourth-quarter (Q4) results, driven by defense and intelligence demand.
The company posted a 41% increase in revenue year-over-year to a record $86.8 million, compared to Wall Street expectations of $78.17 million, according to data from Fiscal.ai. Meanwhile, full-year revenue grew 26% to $307.7 million.
The company said that its defense and intelligence unit’s revenue grew more than 50% year-on-year, bolstered by strong performance in data subscriptions, solutions, and satellite services.
“As the geopolitical landscape shifts, security is an urgent mandate for governments worldwide, and our customers face mission critical decisions in an increasingly complex and chaotic world,” Will Marshall, Co-Founder and CEO, said in a call with investors.
Earnings Snapshot
Planet Labs posted full-year adjusted earnings before interest, tax, depreciation, and amortization profit of $15.5 million, compared to a loss of $10.6 million in fiscal year 2025.
The company also declared a net loss per share of $0.04 for the period, narrower than Street expectations of $0.05, as per Fiscal.ai data.
Planet Labs said that it ended the year with $640 million in cash, cash equivalents, and short-term investments, an increase of 188% from the previous year. Its remaining performance obligations (RPOs) climbed 106% YoY to $852 million, while its backlog at the end of the year was 79% higher at more than $900 million.
Planet Lab Outlook
The company said that for the first-quarter (Q1) of FY27, it expects revenue of $87 million to $91 million. Planet Labs also said it expects capital expenditures to be between $17 million and $23 million for the quarter.
For the full fiscal year, the company forecast revenue in the range of $415 million to $440 million, and adjusted EBITDA profit of up to $10 million. Capital expenditures for the year were forecast to be between $80 million and $95 million to fund investments in next-generation satellites to keep up with accelerating market demand, the company said.
“Even with these operating and capital expenditures, we expect to be free cash flow positive on an annual basis,” Marshall added.
Retail Reaction
On Stocktwits, retail sentiment around PL shares remained in the ‘neutral’ territory over the past 24 hours amid ‘high’ message volumes.
One bullish user called the earnings results a “banger,” predicting the company’s shares would double in price this year. The user also compared the company to Rocket Lab USA Inc. (RKLB), saying it would follow a similar trajectory.
Another bullish user expressed optimism about the company becoming a leader in the space sector soon.
PL stock has soared 524% in the past year. Meanwhile, RKLB stock has gained 283% in the same time.
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