0001836833-25-000063
SEC filingRevenue grew 10% YoY driven by Defense & Intelligence; gross margin expanded 300 bps; operating loss improved 34% on cost discipline.
For the three months ended April 30, 2025, Planet Labs reported revenue of $66.3 million, a 10% increase from $60.4 million in the same period last year. The growth was primarily driven by new customer acquisition, particularly within the Defense and Intelligence vertical. Gross profit grew 16% to $36.6 million, with gross margin expanding 300 basis points to 55% (59% on a non-GAAP basis). This improvement was largely due to a $2.1 million decrease in depreciation expense as certain high-resolution satellites became fully depreciated, alongside revenue growth outpacing cost increases.
Operating expenses declined 10% to $59.4 million, driven by significant reductions in research and development (down 10%) and sales and marketing (down 24%) as the company reduced headcount and event costs. General and administrative expenses increased 4% due to higher credit loss allowances and legal costs. As a result, operating loss improved 34% to $(22.8) million from $(34.6) million. Net loss improved 57% to $(12.6) million, aided by a $10.4 million non-cash gain from the change in fair value of warrant liabilities.
While the MD&A does not provide segment-level revenue breakdowns, it highlights that the revenue growth was "primarily driven by growth with Defense and Intelligence customers." The Net Dollar Retention Rate improved to 103% from 100%, attributed to "large government contract expansions," underscoring the importance of the public sector vertical. The company also noted an increase in Percent of Recurring ACV to 97% (from 95%), driven by demand for data subscription and usage-based contracts from large government customers.
Customer count declined to 919 from 1,031, reflecting a strategic shift toward larger, higher-value accounts rather than volume growth. This aligns with the "land-and-expand" strategy and focus on deepening relationships with existing customers.
Management expects capital expenditures and working capital to continue increasing as Planet invests in growth, including building satellites for the $230 million SKY Perfect JSAT contract and enhancing its software platform. The company expects cost of revenue to rise due to satellite services contracts, but also anticipates further economies of scale as subscription revenue grows. No specific numerical guidance is provided for upcoming quarters. However, the positive operating cash flow of $17.3 million and strong backlog of $527 million (of which 45% is expected to be recognized within 12 months) provide confidence in near-term liquidity and revenue visibility.
As of April 30, 2025, Planet Labs held $133.5M in cash and cash equivalents and $92.6M in short-term investments, totaling $226.1M in liquid assets. Including $12.1M restricted cash, total cash equivalents were $145.6M. The company carries no debt. Accounts receivable grew to $74.7M (net) from $55.8M at January 31, 2025, while deferred revenue surged to $138.0M from $93.5M. Total assets were $658.4M, with stockholders' equity of $444.8M. The current ratio (current assets/current liabilities) was 2.1x, reflecting strong short-term liquidity.
Total non-cancelable purchase commitments amount to $97.2M: $91.5M for hosting services from Google (through January 2028) and $3.8M for future satellite launch services. The Google hosting commitment includes $25.3M in the remainder of FY2026, $32.7M in FY2027, and $33.4M in FY2028. Launch service commitments are $3.7M for the remainder of FY2026 and $0.1M for FY2030. The company also has $46.4M in R&D service agreement funding received and $28.7M from NASA CSP, with no repayment obligations.
Planet Labs does not repurchase shares or pay dividends. Capital expenditures (purchases of property and equipment plus capitalized internal-use software) totaled $9.3M for Q1 FY2026, representing 14.1% of revenue. There was no change in debt. The company invested $1.2M in capitalized internal-use software and $8.1M in property and equipment.
The company operates as a single reportable segment. Revenue by geography: North America $29.5M (44.6%), Asia Pacific & Japan $15.3M (23.1%), Europe, Middle East & Africa $18.8M (28.4%), Latin America $2.6M (3.9%). Revenue by customer type: Civil Government $16.3M (24.6%), Commercial $13.3M (20.1%), Defense & Intelligence $36.6M (55.3%). Three customers accounted for 16%, 14%, and 11% of total revenue for Q1 FY2026.
Operating cash flow (CFO) of $17.3 million significantly exceeded the net loss of $12.6 million, indicating strong cash generation relative to reported earnings. The primary non-cash add-backs were stock-based compensation ($12.5 million) and depreciation/amortization ($11.1 million), partially offset by a $10.4 million gain from the change in fair value of warrant liabilities. A large increase in deferred revenue ($42.1 million) was the main working capital driver, while accounts receivable consumed $21.2 million.
Capital expenditures (capex) totaled $9.3 million, comprising $8.1 million in property and equipment and $1.2 million in capitalized internal-use software. This capex intensity (capex/CFO) was 54%, reflecting moderate reinvestment. Free cash flow (CFO minus capex) was $8.0 million, positive for the period.
No share repurchases or dividends were paid. Financing cash outflows included $5.3 million for tax withholding on equity awards and $4.8 million for contingent consideration payments. The company ended the period with $145.6 million in cash and restricted cash, up $15.6 million from the prior quarter.