0001193125-25-314295
SEC filingRevenue grew 33% YoY to $81.3M on Defense & Intelligence strength, but net loss widened to $59.2M on non-cash warrant liability charges.
For the three months ended October 31, 2025, Planet Labs reported revenue of $81.3 million, a 33% increase year-over-year from $61.3 million. The growth was driven by a $12.1 million contribution from new customers and $7.9 million from existing customer expansions, particularly within the Defense and Intelligence vertical. Gross profit rose 24% to $46.6 million, but gross margin contracted to 57% from 61%, primarily due to higher costs from solution partners and subcontractors (up $4.9M) and employee-related costs for satellite services contracts (up $3.6M). Operating expenses grew 8% to $64.9 million, with research and development up 8% on decreased third-party funding, sales and marketing up 12% due to employee costs, and general and administrative up 4%. Despite the improved operating loss (narrowed 19% to $18.3 million), net loss more than doubled to $59.2 million from $20.1 million, largely due to a $43.5 million non-cash expense from the change in fair value of warrant liabilities. Adjusted EBITDA turned positive for the first time in the quarter, reaching $5.6 million versus a loss of $0.2 million in the prior year, driven by revenue growth and cost discipline.
The MD&A does not provide discrete segment financial information; however, the narrative emphasizes strength in Defense and Intelligence as the primary growth engine. The company also highlighted increased contributions from satellite services agreements, including a $230 million contract with SKY Perfect JSAT and a €240 million German government contract. These agreements shift revenue mix toward long-term, multi-year projects that involve building and operating satellites, which carry higher upfront costs but provide multi-year revenue visibility. The recurring data subscription business remains the core, with Percent of Recurring ACV stable at 97%. The decline in customer count from 1,015 to 910 reflects a deliberate strategy to focus on larger, high-value accounts, which is also evidenced by the improved Net Dollar Retention Rate of 109% (including winbacks 110%).
Management expects capital expenditures to remain elevated due to ongoing satellite builds for customer contracts and next-generation Pelican and medium-resolution satellites. The company plans to continue investing in research and development to enhance AI-ready data sets and expand into new verticals such as energy, infrastructure, and insurance. Backlog of $734.5 million (up from $503.7 million) provides strong visibility, with 61% expected to be recognized within 24 months. The company does not provide explicit financial guidance but notes that operating cash flow turned positive for the nine-month period ($113.7 million), and the recent issuance of $460 million in 0.50% convertible senior notes due 2030 strengthens liquidity. Strategic priorities include scaling in existing verticals, expanding into new markets, and deepening platform ecosystem partnerships. The shift toward integrated downstream solutions and satellite services models is expected to enhance value capture but may introduce complexity in revenue recognition and cost management.
As of October 31, 2025, Planet Labs held $443.3M in cash and cash equivalents and $234.0M in short-term investments, totaling $677.3M in liquid assets. Total debt stands at $446.2M, representing the carrying value of the newly issued $460M 0.50% convertible notes due 2030 (net of $13.8M unamortized discount). Shareholders' equity is $349.6M, down from $441.3M at January 31, 2025, primarily due to net losses and the $39.6M capped call purchase.
Planet has a non-cancelable hosting service agreement with Google with minimum purchase commitments of $76.0M as of October 31, 2025. Payments are scheduled as: $9.8M for the remainder of fiscal 2026, $32.7M in 2027, and $33.4M in 2028. Additionally, the company has remaining performance obligations (RPO) of $672.5M, of which 33% is expected to be recognized within 12 months and 59% within 24 months.
In September 2025, Planet issued $460M aggregate principal amount of 0.50% convertible notes due 2030. Concurrently, it purchased capped call transactions for $39.6M to reduce potential dilution upon conversion. No share repurchases or dividends were authorized or paid. Capital expenditures totaled $58.5M for the nine months ended October 31, 2025 (26.5% of revenue), including $55.1M for property and equipment and $3.4M for capitalized internal-use software.
The company operates as a single reportable segment. For the three months ended October 31, 2025, revenue by geography: North America $35.1M (43%), Europe, Middle East & Africa $27.6M (34%), Asia Pacific & Japan $14.3M (18%), and Latin America $4.2M (5%). By customer type, Defense & Intelligence contributed $49.4M (61%), Civil Government $18.8M (23%), and Commercial $13.1M (16%).