Planet Labs delivered a notable Q2, with results surpassing Wall Street's expectations and the market responding with a significant positive reaction. Management attributed the outperformance primarily to strong execution in defense and intelligence contracts, rapid uptake of AI-enabled solutions, and success in expanding satellite services engagements. CEO Will Marshall highlighted, “Planet’s Q2 financial results reflect the team’s excellent execution in delivering integrated global insights through AI-enabled solutions and rapidly expanding our satellite services business.”
Is now the time to buy PL? Find out in our full research report (it’s free).
Planet Labs (PL) Q2 CY2025 Highlights:
- Revenue: $73.39 million vs analyst estimates of $65.99 million (20.1% year-on-year growth, 11.2% beat)
- Adjusted EPS: -$0.03 vs analyst estimates of -$0.04 ($0.01 beat)
- Adjusted EBITDA: $6.41 million vs analyst estimates of -$3.50 million (8.7% margin, significant beat)
- The company lifted its revenue guidance for the full year to $285 million at the midpoint from $272.5 million, a 4.6% increase
- EBITDA guidance for the full year is -$3.5 million at the midpoint, above analyst estimates of -$9.08 million
- Operating Margin: -24.5%, up from -64.8% in the same quarter last year
- Backlog: $736.1 million at quarter end
- Market Capitalization: $3.01 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Planet Labs’s Q2 Earnings Call
- Colin Canfield (Cantor Fitzgerald) pressed for details on the backlog composition from the Germany and JSAT contracts and asked about working capital implications. CFO Ashley Johnson noted these contracts are fully included in backlog and tend to be working capital positive, with milestone payments structured across contract lifecycles.
- Trevor Walsh (JMP Securities) asked about the execution capacity for satellite services contracts and pipeline maturation. CEO Will Marshall emphasized trusted partnerships, strong global demand, and the synergistic effect of satellite expansion on both core and new customers.
- Mike Latimore (Northland) sought clarification on customer usage trends and their sustainability. Johnson replied that elevated usage in government remains unpredictable and guidance assumes a return to historical patterns, though some early renewals are possible.
- Ryan Koontz (Needham) inquired about the percentage of satellite capacity allocated to dedicated service deals and updates on maritime domain awareness. Marshall explained that such deals use only a small fraction of total capacity and highlighted ongoing product expansion with partners like SynMax and NATO.
- Gregory Pendy (Clear Street) requested an update on the Anthropic AI partnership and Tanager fleet monetization plans. Marshall described progress in AI model fine-tuning on satellite imagery, with early commercial and government applications for methane detection and emissions monitoring.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) continued backlog conversion into recognized revenue, especially from defense and satellite services contracts; (2) progress on next-generation satellite fleet launches and commissioning milestones; and (3) adoption rates for AI-enabled solutions in both government and commercial sectors. Expansion of commercial use cases and the pace of new contract signings will also be critical to sustaining growth.
Planet Labs currently trades at $9.73, up from $6.55 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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