• Revenue: $66.3 million, representing approximately 10% year-over-year growth.

• Non-GAAP Gross Margin: 59%, up from 55% a year ago.

• Adjusted EBITDA Profit: $1.2 million, marking the second sequential quarter of adjusted EBITDA profitability.

• Cash Flow from Operating Activities: $17.3 million.

• Free Cash Flow: $8 million, the first-ever quarter of positive free cash flow.

• Backlog: Over $0.5 billion at the end of the quarter.

• Defense and Intelligence Sector Revenue Growth: Over 20% year-over-year during Q1.

• End-of-Period Customer Count: 919 customers, lower on a sequential basis.

• Net Dollar Retention Rate: 103%.

• Capital Expenditures: Approximately $9.3 million in Q1.

• Cash, Cash Equivalents, and Short-term Investments: Approximately $226.1 million at the end of the quarter.

• Remaining Performance Obligations (RPOs): Approximately $451.9 million, up 262% year-over-year.

• Guidance for Q2 Revenue: Expected to be between $65 million and $67 million.

• Guidance for Full Fiscal Year 2026 Revenue: Expected to be between $265 million and $280 million.

• Warning! GuruFocus has detected 3 Warning Signs with PL.

Release Date: June 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Planet Labs PBC (NYSE:PL) reported $66.3 million in revenue for Q1 fiscal 2026, representing approximately 10% year-over-year growth.

• The company achieved a non-GAAP gross margin of 59%, up from 55% a year ago.

• Planet Labs PBC (NYSE:PL) reported its first-ever quarter of positive free cash flow at $8 million.

• The backlog grew to over $0.5 billion, indicating strong future growth potential.

• The defense and intelligence sector revenue grew over 20% year-over-year, driven by strong performance in core data and solutions business.

Negative Points

• Revenue from the civil government sector was down year-over-year due to the expiration of the NICFI contract.

• The commercial sector revenue was flat year-over-year, indicating challenges in achieving growth in this segment.

• North America and Latin American revenues were down year-over-year, impacted by agricultural contract adjustments.

• The end-of-period customer count decreased to 919, reflecting a focus on larger customers and a shift away from smaller ones.

• The company expects an adjusted EBITDA loss for Q2 fiscal 2026, indicating ongoing financial challenges.

Q & A Highlights

Q: Can you discuss the partnership with Anthropic and the type of data needed for AI models? A: Will Marshall, CEO, explained that the partnership with Anthropic focuses on fine-tuning AI models using Planet's satellite data, which is limited in current AI models. This collaboration aims to improve model accuracy and expand usability. Planet is also working with Google and others to enhance AI integration in their core products, which helps in expanding market potential.