Planet Labs PBC (PL) Q2 2027: Record Revenue Growth — Strongly Positive

Planet Labs PBC reported a remarkable second quarter for fiscal year 2027, achieving record revenue of $116.1 million, which represents an increase of $42.8 million or +58% year-over-year compared to $73.3 million in Q2 2026. This performance not only highlights the company's robust growth trajectory but also marks its fourth consecutive quarter of meeting or exceeding the Rule of 40, a key metric for SaaS companies that combines revenue growth and profitability.

This quarter is undoubtedly a positive outcome for shareholders. The significant revenue growth, coupled with improved operational metrics, indicates that Planet is effectively capitalizing on its market opportunities and executing its strategic initiatives. The company’s ability to increase revenue while reducing net losses demonstrates operational leverage and a path toward profitability.

Key Financial Metrics:

• Revenue: $116.1 million, up $42.8 million or +58% YoY
• Gross Margin: 57%, down from 58% YoY
• Non-GAAP Gross Margin: 59%, down from 61% YoY
• Net Loss: ($9.4 million), improved from ($22.6 million) YoY
• Adjusted EBITDA: $13.9 million, up from $6.4 million YoY
• GAAP Net Loss per Share: ($0.03)
• Non-GAAP Net Income per Share: $0.02
• Cash, Cash Equivalents, and Short-Term Investments: $865.4 million, up 219% YoY

The company also reported a 98% recurring annual contract value (ACV) as of the end of the quarter, indicating a strong base of predictable revenue. The adjusted EBITDA profit of $13.9 million reflects a significant improvement in operational efficiency, showcasing the company's ability to convert revenue into profit effectively.

Strategic Developments:

During the quarter, Planet successfully launched the Pelican Tech Demo and shipped Tanager-2 and SuperDove satellites to Vandenberg for launch. These developments are crucial as they enhance Planet's satellite capabilities and expand its service offerings. The company also secured notable contracts, including an $8 million award from the National Geospatial-Intelligence Agency (NGA) and a €25 million tender from the German government, which further solidifies its position in the government sector.

Financial Outlook:

Looking ahead, Planet expects revenue for Q3 FY 2027 to be in the range of $101 million to $105 million, with a non-GAAP gross margin projected between 56% and 58%. The adjusted EBITDA loss is anticipated to be between ($6) million and ($1) million for the quarter. For the full fiscal year, the company forecasts revenue between $430 million and $441 million.

Shareholder Returns and Capital Management:

Planet raised approximately $120 million from stock sales under its At-The-Market program at an average net sale price of $31.95 per share. This capital infusion provides the company with strategic flexibility to invest in growth initiatives while maintaining a strong cash position of $865.4 million.

Conclusion:

Investors should closely monitor Planet's upcoming quarter, particularly its ability to maintain revenue momentum and manage costs effectively. The company’s focus on expanding its satellite capabilities and securing government contracts will be critical in sustaining growth. Additionally, the anticipated revenue guidance for Q3 will provide further insights into the company's operational trajectory and market demand.

In summary, Planet Labs PBC's Q2 2027 results reflect a strong performance that positions the company favorably for future growth, making it an attractive prospect for shareholders looking for exposure in the satellite data and analytics sector.

Note: All amounts are in thousands.

PLANET CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	Three Months Ended	Six Months Ended
	July 31, 2026	July 31, 2025	July 31, 2026	July 31, 2025
Revenue	$ 116,157	$ 73,364	$ 210,946	$ 139,211
Cost of revenue	50,439	31,145	94,145	60,121
Gross profit	65,718	42,219	116,801	79,090
Operating expenses
Research and development	35,142	24,112	68,523	47,973
Sales and marketing	21,454	17,505	44,218	33,280
General and administrative	22,373	18,439	51,525	38,308
Total operating expenses	79,967	60,056	164,266	119,561
Loss from operations	(14,249)	(17,837)	(48,671)	(40,471)
Interest income	6,433	2,172	11,588	4,079
Interest expense	(1,460)	(317)	(2,870)	(816)
Change in fair value of warrants	—	(5,698)	(106,476)	4,759
Other income (expense, net)	(105)	(311)	(311)	(1,160)
Total other income	4,889	(4,154)	(98,265)	6,902
Loss before provision for income tax	(9,360)	(22,077)	(146,936)	(33,569)
Net loss	$ (9,360)	$ (22,077)	$ (148,183)	$ (35,190)
Basic and diluted net loss per share	$ (0.03)	$ (0.07)	$ (0.42)	$ (0.12)
Weighted-average shares used to compute net loss per share	359,507	304,130	352,082	302,010

Note: All amounts are in thousands.

PLANET CONDENSED CONSOLIDATED BALANCE SHEETS	July 31, 2026	January 31, 2026
Current assets
Cash and cash equivalents	$ 415,130	$ 229,441
Restricted cash and cash equivalents, current	1,891	642
Short-term investments	450,288	410,649
Accounts receivable, net	59,870	83,528
Inventories	8,852	6,118
Prepaid expenses and other current assets	62,759	44,984
Total current assets	998,790	775,362
Property and equipment, net	176,090	150,573
Capitalized internal-use software, net	22,051	21,475
Goodwill	142,701	143,452
Intangible assets, net	28,431	26,633
Restricted cash and cash equivalents, non-current	6,607	5,471
Operating lease right-of-use assets	48,871	14,588
Other non-current assets	7,423	8,132
Total assets	$ 1,430,964	$ 1,145,686
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 10,355	$ 10,612
Accrued and other current liabilities	56,078	55,874
Deferred revenue	281,215	220,572
Operating lease liabilities, current	3,622	7,296
Total current liabilities	351,270	469,455
Deferred revenue	17,364	27,522
Deferred hosting costs	1,885	4,034
Operating lease liabilities, non-current	46,746	8,300
Convertible notes	448,255	446,884
Other non-current liabilities	1,093	1,060
Total liabilities	866,613	957,255
Stockholders’ equity
Common stock	36	34
Additional paid-in capital	2,159,029	1,631,896
Accumulated other comprehensive income	3,372	6,362
Accumulated deficit	(1,598,086)	(1,449,861)
Total stockholders’ equity	564,351	188,431
Total liabilities and stockholders’ equity	$ 1,430,964	$ 1,145,686

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