Planet Labs PBC (PL) AI Stock Analysis

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Planet Labs PBC

(NYSE:PL)

Rating:63Neutral

Price Target:

$6.50

▲(19.71%Upside)

Planet Labs' overall stock score of 63 reflects strong future growth potential supported by revenue growth and successful earnings milestones. However, profitability challenges and valuation concerns weigh on the score. The technical analysis suggests potential overbought conditions, which may lead to short-term volatility.

Positive Factors

Contracts and Deals

PL's recent wins at JSAT and the California Air Resources Board highlight the company's success in securing significant deals.

Earnings

PL reported strong F1Q results and guided F2Q revenue above consensus, notching 8% q/q revenue growth, highest in 11 quarters.

Strategic Opportunities

The opportunity for AI to increase the usability and value of satellite data presents a promising avenue for PL's growth.

Negative Factors

Financial Outlook

1QFY26 and FY26 outlook fell short of expectations, with PL expecting lower gross margins and heightened capex.

Financial Performance

F1Q26 and FY26 revenue and Adj EBITDA are guided below consensus as it ramps its strategic new sat-services deal.

Gross Margins

New satellite development and launch costs are expected to weigh on gross margins before expanding.

Planet Labs PBC (PL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.70B

Dividend YieldN/A

Average Volume (3M)6.70M

Price to Earnings (P/E)―

Beta (1Y)2.27

Revenue Growth9.52%

EPS Growth24.27%

CountryUS

Employees810

SectorIndustrials

Sector Strength90

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.00

Shares Outstanding282,273,350

10 Day Avg. Volume14,146,072

30 Day Avg. Volume6,701,024

Financial Highlights & Ratios

PEG Ratio-0.47

Price to Book (P/B)2.30

Price to Sales (P/S)0.00

P/FCF Ratio-15.25

Enterprise Value/Market Cap0.69

Enterprise Value/Revenue1.22

Enterprise Value/Gross Profit8.25

Enterprise Value/Ebitda-3.13

Forecast

1Y Price Target

$6.38

Price Target Upside17.50% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering10

Planet Labs PBC Business Overview & Revenue Model

Company DescriptionPlanet Labs PBC designs, constructs, and launches constellations of satellites with the intent of providing high cadence geospatial data delivered to customers through an online platform worldwide. The company offers Open Geospatial Consortium, a cloud-native proprietary technology that performs critical processing and overall harmonizing of images for time series and data fusion and analysis; and space-based hardware and related software systems. It serves agriculture, mapping, forestry, and finance and insurance, as well as federal, state, and local government bodies. The company was incorporated in 2010 and is headquartered in San Francisco, California.

How the Company Makes MoneyPlanet Labs PBC generates revenue primarily through the sale of its satellite imagery and geospatial data services. The company employs a subscription-based revenue model, allowing customers to access its vast library of satellite images and analytics tools on a recurring basis. Key revenue streams include contracts with government agencies, commercial enterprises, and research institutions that require up-to-date, high-resolution Earth imagery for decision-making and analysis. Additionally, Planet Labs engages in significant partnerships with technology companies and other stakeholders in the geospatial industry, which help expand its market reach and drive revenue growth.

Planet Labs PBC Key Performance Indicators (KPIs)

Any

Percent Recurring Annual Contract Value

Percent Recurring Annual Contract Value
Indicates the proportion of revenue generated from recurring contracts, highlighting stability and predictability in the company's revenue stream, which is crucial for assessing long-term financial health and growth potential.

Chart InsightsPlanet Labs' Percent Recurring Annual Contract Value has steadily increased, reaching 97% by late 2024, indicating strong customer retention and stable revenue streams. The earnings call highlights a positive outlook with record revenue and significant contracts like the $230 million JSAT deal, which could further enhance recurring revenue. Despite commercial sector challenges, the company's strategic focus on defense, intelligence, and AI innovations positions it well for future growth, aiming to double revenue growth by 2027 and achieve positive cash flow within 24 months.

Data provided by:

Main Street Data

Planet Labs PBC Earnings Call Summary

Earnings Call Date:Jun 04, 2025

(Q1-2026)

% Change Since: 36.09%|

Next Earnings Date:Sep 04, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements in revenue growth, financial milestones, and sector expansion, particularly in the defense and intelligence areas. Despite some challenges in the civil government sector and potential risks from budget cuts, the overall sentiment remains positive due to the company's strategic direction and increased backlog.

Q1-2026 Updates

Positive Updates

Record Revenue and Growth

Planet Labs achieved $66.3 million in revenue for Q1 FY2026, representing approximately 10% year-over-year growth and surpassing expectations.

Positive Financial Metrics

Non-GAAP gross margin improved to 59% from 55% a year ago. The company also reported an adjusted EBITDA profit of $1.2 million, marking the second consecutive quarter of profitability.

Positive Free Cash Flow

Planet Labs generated $8 million in positive free cash flow, marking the first-ever quarter of positive free cash flow for the company.

Defense and Intelligence Sector Growth

Revenue from the defense and intelligence sector grew over 20% year-over-year, driven by significant contracts including an eight-figure ACV expansion with a European customer.

Strong Backlog and Future Growth Visibility

The backlog increased to over $527 million, up 140% year-over-year, with about 45% applicable to the next 12 months.

Strategic Partnerships and Product Updates

New partnerships and product developments, including the streamlined Planet Insights platform and the aircraft detection analytic feed, highlight ongoing innovation.

Negative Updates

Decline in Civil Government Revenue

Civil government sector revenue was down year-over-year, primarily due to the expiration of the NICSI contract.

Challenges in North America

Revenue in North America declined year-over-year, impacted by adjustments in the agricultural sector.

Potential Budget Cuts and Uncertainty

Potential budget cuts in NASA and other governmental programs pose risks to future revenue, though seen as opportunities for Planet's cost-effective solutions.

Company Guidance

During Planet Labs' first quarter earnings call for fiscal 2026, the company reported strong financial performance with $66.3 million in revenue, marking approximately 10% year-over-year growth. The non-GAAP gross margin improved to 59% from 55% the previous year, and adjusted EBITDA profit reached $1.2 million. The company also achieved its first-ever quarter of positive free cash flow at $8 million and saw a 262% year-over-year increase in remaining performance obligations (RPOs) amounting to $451.9 million. The backlog reached over $527 million, up 140% from the previous year, indicating robust future growth. The guidance for the second quarter of fiscal 2026 forecasts revenue between $65 million and $67 million, with a non-GAAP gross margin of 56% to 57%, and an adjusted EBITDA loss of between $4 million and $2 million. For the full year, Planet Labs expects revenue between $265 million and $280 million and maintains its non-GAAP gross margin forecast of 55% to 57%. The company continues to focus on expanding its satellite services and integrating AI-enabled solutions, aiming for sustainable cash flow generation and growth in the coming years.

Planet Labs PBC Financial Statement Overview

Summary

Planet Labs PBC demonstrates strong revenue growth and a solid equity position, but persistent losses and negative cash flows challenge its financial health. The company needs to focus on achieving operational profitability to ensure sustainable growth.

Income Statement

Neutral

Planet Labs PBC has shown consistent revenue growth over the years, with a notable increase from $95.7 million in 2020 to $244.3 million in 2025. However, despite this growth, the company continues to operate at a loss with negative EBIT and net income. The gross profit margin has improved over time, reaching 57.17% in 2025, which indicates efficient cost management. Yet, the persistent negative net profit margin highlights ongoing profitability challenges.

Balance Sheet

Neutral

The company maintains a strong equity position with a significant equity ratio of 69.63% in 2025, indicating financial stability. Additionally, the debt-to-equity ratio remains low at 0.05, suggesting prudent leverage management. However, the return on equity is negative due to the losses, which could impact long-term shareholder returns.

Cash Flow

Neutral

Operating cash flow has improved from previous years, but it remains negative. Free cash flow is also negative, though there is a trend of decreasing cash outflows. The company's ability to generate cash from operations relative to its net income has been challenging, which may affect its capacity to fund operations and growth without external financing.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
244.35M	220.70M	191.26M	131.21M	113.17M
	Gross Profit
139.72M	112.95M	94.01M	48.22M	25.79M
	EBIT
-116.12M	-169.75M	-175.68M	-128.05M	-87.44M
	EBITDA
-75.10M	-92.06M	-117.79M	-81.14M	-54.38M
	Net Income Common Stockholders
-123.20M	-140.51M	-161.97M	-137.12M	-127.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
228.67M	298.91M	408.76M	490.76M	71.18M
	Total Assets
633.80M	702.00M	752.72M	821.44M	399.31M
	Total Debt
21.61M	24.93M	22.03M	0.00	163.86M
	Net Debt
-103.03M	-58.94M	-159.86M	-490.76M	92.67M
	Total Liabilities
192.51M	183.98M	176.62M	173.20M	291.80M
	Stockholders Equity
441.29M	518.02M	576.10M	648.25M	107.51M
Cash Flow		Free Cash Flow
-58.67M	-93.12M	-86.69M	-57.14M	-34.15M
	Operating Cash Flow
-14.37M	-50.71M	-73.93M	-42.21M	-4.03M
	Investing Cash Flow
57.91M	-33.59M	-242.26M	-25.15M	-30.80M
	Financing Cash Flow
-15.54M	-1.60M	7.86M	489.18M	83.94M

Planet Labs PBC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price5.43

Price Trends

50DMA

3.79

Positive

100DMA

4.31

Positive

200DMA

3.64

Positive

Market Momentum

MACD

0.52

Negative

RSI

70.70

Negative

STOCH

65.71

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL, the sentiment is Positive. The current price of 5.43 is above the 20-day moving average (MA) of 4.40, above the 50-day MA of 3.79, and above the 200-day MA of 3.64, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 70.70 is Negative, neither overbought nor oversold. The STOCH value of 65.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL.

Planet Labs PBC Risk Analysis

Planet Labs PBC disclosed 80 risk factors in its most recent earnings report. Planet Labs PBC reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Planet Labs PBC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
PL	63 Neutral	$1.70B	―	-22.54%	―	9.52%	24.27%
RKLB	61 Neutral	$12.54B	―	-45.38%	―	64.98%	-10.52%
SPCE	48 Neutral	$142.19M	―	-95.46%	―	-34.33%	52.30%
EH	48 Neutral	$1.22B	―	-43.18%	―	167.99%	22.75%
SKYH	40 Underperform	$764.89M	―	-42.87%	―	102.32%	13.67%
EVTL	25 Underperform	$488.16M	―	115.25%	―	―	23.26%

* Industrials Sector Average

Performance Comparison

Planet Labs PBC

5.46

3.56

187.37%

SPCE

Virgin Galactic Holdings

3.01

-11.60

-79.40%

Ehang Holdings

16.93

2.52

17.49%

EVTL

Vertical Aerospace

5.93

-1.15

-16.24%

RKLB

Rocket Lab USA

26.40

21.85

480.22%

SKYH

Sky Harbour Group

9.91

0.83

9.14%

Planet Labs PBC Corporate Events

Executive/Board ChangesShareholder Meetings

Planet Labs PBC Board Members Resign Before Annual Meeting

Neutral

May 29, 2025

On May 28, 2025, Niccolo de Masi and J. Heidi Roizen announced their resignations from the board of directors of Planet Labs PBC, effective after the company’s 2025 Annual Meeting of Stockholders. Their departures were not due to any disagreements with the company. Following these resignations, the board decided to reduce its size to eight members, effective immediately after the 2025 Annual Meeting.

The most recent analyst rating on (PL) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Planet Labs PBC stock, see the PL Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.