0001836833-25-000104
SEC filingRevenue grew 20% YoY to $73.4M, driven by Defense & Intelligence customer growth.
For the three months ended July 31, 2025, revenue grew 20% year-over-year to $73.4 million, driven by a $8.6 million increase from new customer growth and $3.7 million from existing customer contracts, primarily from Defense & Intelligence customers. Gross profit rose 31% to $42.3 million, with gross margin expanding from 52.9% to 57.6% due to higher revenue scale and lower depreciation from fully depreciated high-resolution satellites. Operating loss improved 55% to $17.9 million, as operating expenses declined 16% driven by lower headcount and prior-year severance charges. Net loss narrowed 42% to $22.6 million. Adjusted EBITDA turned positive to $6.4 million from a loss of $4.4 million, reflecting improved operational leverage.
The MD&A does not provide formal segment reporting, but qualitatively highlights concentration in Defense & Intelligence, which drove the majority of revenue growth. The satellite services model is gaining traction, with two large agreements (SKY Perfect JSAT $230M in January 2025 and a €240M German government contract in June 2025) contributing to backlog and revenue. Customer mix is shifting toward larger accounts, as evidenced by the EoP Customer Count declining to 908 from 1,012, while Net Dollar Retention Rate improved to 107% (six months) from 99%, indicating deeper wallet share within existing customers.
Management's strategic priorities include scaling in existing verticals, expanding into new verticals (energy, finance, insurance), continued investment in data products and AI solutions, building a platform ecosystem, and launching new sensors. The satellite services model is expected to fund next-generation fleets and align with market demand. Backlog grew 46% to $736.1 million as of July 31, 2025, with 35% expected to be recognized within 12 months, providing visibility into near-term revenue. Capital expenditures are expected to remain elevated (29% of revenue in Q2) as the company builds Pelican satellites. No formal financial guidance was provided.
As of July 31, 2025, Planet Labs PBC held $181.1 million in cash and cash equivalents, $90.5 million in short-term investments, and $11.8 million in restricted cash, for total liquidity of $283.4 million. Total assets were $696.4 million, up from $633.8 million at January 31, 2025. The increase was driven by higher cash and cash equivalents ($63.0 million increase) and property and equipment ($9.5 million increase). Total liabilities rose to $260.7 million from $192.5 million, primarily due to a $79.6 million increase in deferred revenue (current and non-current). Stockholders' equity decreased slightly to $435.7 million from $441.3 million, reflecting the net loss of $35.2 million offset by stock-based compensation and other comprehensive income.
The company has significant contractual obligations. As of July 31, 2025, remaining performance obligations (contracted future revenue not yet recognized) totaled $690.1 million, with 32% expected within 12 months and 57% within 24 months. Additionally, Planet has minimum purchase commitments for hosting services from Google totaling $84.2 million through January 31, 2028, with $18.0 million due in the remainder of fiscal 2026, $32.7 million in 2027, and $33.4 million in 2028. The company also has operating lease liabilities of $17.5 million, with total lease payments of $19.3 million through 2030 and beyond.
Planet Labs did not report any share buybacks, dividends, or debt issuance or repayment during the period. Capital expenditures (purchases of property and equipment and capitalized internal-use software) totaled $30.8 million for the six months ended July 31, 2025, representing 22.1% of revenue. This compares to $28.0 million in the same period of the prior year. The company's primary capital allocation focus remains investing in satellite infrastructure and software development.
The company operates as a single reportable segment. Revenue is disaggregated by geography and customer type. For the six months ended July 31, 2025, revenue by region was: North America $60.6 million (43.4%), Europe, Middle East & Africa $42.3 million (30.3%), Asia Pacific & Japan $31.5 million (22.5%), and Latin America $5.3 million (3.8%). By customer type, Defense & Intelligence contributed $78.6 million (56.3%), Civil Government $32.7 million (23.4%), and Commercial $28.4 million (20.3%). The company's long-lived assets (property and equipment, net) are predominantly in the United States ($123.5 million out of $131.3 million).
For the six months ended July 31, 2025, Planet Labs reported net cash provided by operating activities of $85.1 million, a significant turnaround from a net cash use of $12.2 million in the prior-year period. This improvement was driven primarily by a $75.8 million increase in deferred revenue, reflecting strong upfront customer payments, and a smaller net loss ($35.2 million vs. $68.0 million). Depreciation and amortization ($21.7 million) and stock-based compensation ($26.0 million) were consistent year-over-year.
Capital expenditures (property and equipment of $28.4 million plus capitalized internal-use software of $2.4 million) totaled $30.8 million, up from $28.0 million a year ago. Free cash flow, defined as CFO minus capex, was approximately $54.3 million, compared to ($40.2 million) in the prior-year period. The company did not engage in share repurchases or pay dividends. The investing section also reflects net purchases of available-for-sale securities ($22.4 million) offset by maturities and sales.
Anomalies: The large deferred revenue swing ($75.8 million) is a notable non-recurring working capital driver. Also, while CFO turned positive, the net loss continues, underscoring reliance on non-cash adjustments and customer prepayments for cash generation.