Planet Labs PBC (PL) AI Stock Analysis

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Planet Labs PBC

(NYSE:PL)

Rating:71Outperform

Price Target:

$7.00

▲(14.01%Upside)

Planet Labs' stock score is bolstered by strong technical momentum and positive corporate events, particularly the strategic satellite deal with Germany. While financial performance shows growth potential, profitability and valuation concerns weigh on the score. Positive earnings call sentiment further supports the outlook, but sector-specific risks remain.

Positive Factors

Contract Wins

PL announced several new contract wins headlined by its second 9-figure multi-year satellite services contract with the German government.

Revenue Growth

Management's affirmation of a strong pipeline of similar opportunities gives increased confidence in PL returning to 20%+ topline growth.

Strategic Importance

PL's data is becoming increasingly relevant in the current geopolitical environment, enhancing its strategic importance.

Negative Factors

Cost Pressures

Large deals can sometimes weigh modestly on costs before revenue ramps.

Earnings Outlook

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

Margin Pressure

New satellite development and launch costs are expected to weigh on GMs in the NT before expanding.

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

Market Cap

$1.87B

Dividend YieldN/A

Average Volume (3M)11.75M

Price to Earnings (P/E)―

Beta (1Y)2.38

Revenue Growth9.52%

EPS Growth24.27%

CountryUS

Employees810

SectorIndustrials

Sector Strength86

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.00

Shares Outstanding282,273,350

10 Day Avg. Volume14,214,861

30 Day Avg. Volume11,748,681

Financial Highlights & Ratios

PEG Ratio-1.20

Price to Book (P/B)4.10

Price to Sales (P/S)0.00

P/FCF Ratio-40.26

Enterprise Value/Market Cap0.92

Enterprise Value/Revenue1.78

Enterprise Value/Gross Profit11.85

Enterprise Value/Ebitda-5.16

Forecast

1Y Price Target

$7.37

Price Target Upside20.03% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering8

Planet Labs PBC Business Overview & Revenue Model

Company DescriptionPlanet Labs PBC (PL) is a leading Earth imaging company that operates in the geospatial and satellite data sectors. The company specializes in capturing and delivering high-resolution satellite imagery and geospatial solutions to a diverse range of industries. Its core products and services include daily satellite images of the Earth, which are utilized for applications in agriculture, forestry, mapping, government, and environmental monitoring, among others.

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: 53.88%|

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 shows strong revenue growth and a solid balance sheet with low leverage. However, profitability remains a concern with significant net losses and negative cash flows. Achieving profitability and improving cash flows are crucial for future financial health.

Income Statement

Positive

Planet Labs PBC shows a positive trend in revenue growth, with a notable increase from $113.17M in 2021 to $250.18M in TTM. However, the company has not achieved profitability, evident from negative net and EBIT margins. The gross profit margin has improved to 58.27% TTM, indicating efficient cost management, but the net profit margin remains deeply negative at -42.57% due to high operating expenses.

Balance Sheet

Positive

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.04, indicating low leverage. The equity ratio is strong at 67.55% TTM, suggesting financial stability. However, the return on equity is negative at -23.95% TTM due to continuous net losses, highlighting challenges in generating profits from equity investments.

Cash Flow

Neutral

Cash flow analysis indicates challenges, with a negative free cash flow of -$45.74M TTM. The operating cash flow to net income ratio is positive at 0.07 TTM, showing some cash generation despite net losses. However, the free cash flow to net income ratio is negative, reflecting the need for improved cash management and cost control.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	250.18M	244.35M	220.70M	191.26M	131.21M	113.17M
Gross Profit	145.83M	139.72M	112.95M	94.01M	48.22M	25.79M
EBITDA	-69.02M	-70.48M	-92.06M	-117.79M	-81.14M	-54.38M
Net Income	-106.53M	-123.20M	-140.51M	-161.97M	-137.12M	-127.10M
Balance Sheet
Total Assets	658.39M	633.80M	702.00M	752.72M	821.44M	399.31M
Cash, Cash Equivalents and Short-Term Investments	226.09M	228.67M	298.91M	408.76M	490.76M	71.18M
Total Debt	19.62M	21.61M	24.93M	22.03M	0.00	163.86M
Total Liabilities	213.59M	192.51M	183.98M	176.62M	173.20M	291.80M
Stockholders Equity	444.80M	441.29M	518.02M	576.10M	648.25M	107.51M
Cash Flow
Free Cash Flow	-45.74M	-58.67M	-93.12M	-86.69M	-57.14M	-34.15M
Operating Cash Flow	7.27M	-14.37M	-50.71M	-73.93M	-42.21M	-4.03M
Investing Cash Flow	29.16M	57.91M	-33.59M	-242.26M	-25.15M	-30.80M
Financing Cash Flow	-22.32M	-15.54M	-1.60M	7.86M	489.18M	83.94M

Planet Labs PBC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price6.14

Price Trends

50DMA

4.39

Positive

100DMA

4.31

Positive

200DMA

3.85

Positive

Market Momentum

MACD

0.48

Negative

RSI

72.03

Negative

STOCH

53.16

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 6.14 is above the 20-day moving average (MA) of 5.54, above the 50-day MA of 4.39, and above the 200-day MA of 3.85, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 72.03 is Negative, neither overbought nor oversold. The STOCH value of 53.16 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PL	71 Outperform	$1.87B	―	-22.54%	―	9.52%	24.27%
Sector *	61 Neutral	C$6.52B	9.25	3.44%	2.88%	6.99%	-11.09%
RKLB	59 Neutral	$16.77B	―	-45.38%	―	64.98%	-10.52%
SPCE	48 Neutral	$117.66M	―	-95.46%	―	-34.33%	52.30%
EH	47 Neutral	$1.22B	―	-43.18%	―	167.99%	22.75%
SKYH	40 Underperform	$748.19M	―	-42.87%	―	102.32%	13.67%
EVTL	25 Underperform	$561.76M	―	115.25%	―	―	23.26%

* Industrials Sector Average

Performance Comparison

Planet Labs PBC

6.85

5.01

272.28%

SPCE

Virgin Galactic Holdings

2.83

-5.41

-65.66%

Ehang Holdings

16.95

2.36

16.18%

EVTL

Vertical Aerospace

6.64

-0.66

-9.04%

RKLB

Rocket Lab USA

35.66

30.78

630.74%

SKYH

Sky Harbour Group

9.86

0.70

7.64%

Planet Labs PBC Corporate Events

Business Operations and Strategy

Planet Labs PBC Secures €240M Satellite Deal with Germany

Positive

Jul 1, 2025

On July 1, 2025, Planet Labs PBC announced a multi-year €240 million agreement with the German government to provide satellite services aimed at enhancing European peace and security. The deal involves using Pelican satellites for high-resolution imagery and intelligence, leveraging Planet’s extensive satellite network to meet the urgent demand for geospatial intelligence. This strategic agreement, alongside a recent deal with NATO, reinforces Planet’s position as a key partner in the global security landscape, although it does not alter the company’s financial guidance for the fiscal year ending January 31, 2026.

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.

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.Date of analysis: Jul 02, 2025