Planet Labs Achieves First Fiscal Year of Adjusted EBITDA & Free Cash Flow Profitability Amid Strong Growth
Summary
Planet Labs PBC announced strong Q4 and full-year fiscal 2026 results, achieving its first fiscal year of Adjusted EBITDA and free cash flow profitability, alongside significant revenue growth and a robust outlook for fiscal 2027.
Key Events
-
Achieved Profitability Milestones
The company reported its first fiscal year of Adjusted EBITDA profit ($15.5 million) and positive free cash flow ($52.9 million) for fiscal year 2026, a significant turnaround from losses in the prior year.
-
Strong Revenue Growth
Fourth quarter revenue increased 41% year-over-year to $86.8 million, and full-year revenue grew 26% to a record $307.7 million. Fiscal year 2027 revenue guidance projects 35-43% growth.
-
Robust Backlog and Cash Position
Remaining Performance Obligations (RPOs) surged 106% year-over-year to $852 million, with total backlog exceeding $900 million. Cash, cash equivalents, and short-term investments increased 188% year-over-year to $640.1 million.
-
Key Customer Wins and Extensions
Secured a multi-year, low nine-figure agreement with the Swedish Armed Forces and multiple seven-figure contracts with entities like the U.S. Defense Innovation Unit (DIU), NATO, and the German Federal Agency for Cartography and Geodesy (BKG).
Analysis
Planet Labs PBC reported a highly positive earnings update, marking its first fiscal year of Adjusted EBITDA and free cash flow profitability. This is a significant operational milestone, demonstrating improved financial health and efficiency. The company also delivered robust revenue growth, with Q4 up 41% year-over-year and full-year revenue increasing 26%. Furthermore, the substantial increase in remaining performance obligations (RPOs) by 106% and backlog by 79% provides strong visibility into future revenue. The significant boost in cash and short-term investments further strengthens the balance sheet. While a large GAAP net loss was reported, it was primarily driven by a non-cash revaluation loss from warrant liabilities due to stock price appreciation, rather than operational underperformance. The strong revenue guidance for fiscal year 2027, implying 35-43% growth, reinforces a positive outlook.
At the time of this filing, PL was trading at $26.24 on NYSE in the Manufacturing sector, with a market capitalization of approximately $9.1B. The 52-week trading range was $2.79 to $30.90. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.