Record Revenue and Expanding Backlog Signal Strong Growth Outlook for Planet Labs
Profitability Milestones and Robust Cash Generation Stand Out
Planet Labs (NYSE: PL) posted an exceptional fiscal year 2026 with key financial highlights underscoring significant momentum. Annual revenue reached a company-best $307.7 million, up 26% year-over-year, driven by a 41% quarterly revenue growth in Q4. For the first time in its history, Planet delivered both adjusted EBITDA and free cash flow profitability over a full fiscal year, with $15.5 million in adjusted EBITDA and $52.9 million in free cash flow.
The company reported $134 million in net operating cash flow and finished the year with $640 million in cash, cash equivalents, and short-term investments—a 188% increase year-over-year. This solid footing provides Planet with flexibility to keep investing in its core markets and new capabilities, particularly as management emphasized a focus on transformative AI initiatives for the coming year.
Backlog and Recurring Revenue Strengthen Growth Visibility
One of the standout figures: Planet's backlog soared 79% over the past year, topping $900 million, while remaining performance obligations (RPOs) more than doubled to $852 million. Notably, 98% of annual contract value (ACV) was recurring, giving crucial visibility and stability to Planet’s future cash flows and topline.
| Metric | Q4 FY2026 | FY2026 | FY2025 |
|---|---|---|---|
| Revenue | $86.8M | $307.7M | $244.4M |
| Gross Margin (GAAP / Non-GAAP) | 54% / 57% | 56% / 59% | 57% / 60% |
| Adjusted EBITDA | $2.3M | $15.5M | ($10.6M) |
| Net Loss (GAAP / Non-GAAP) | ($152.5M) / ($1.2M) | ($246.9M) / ($13.6M) | ($123.2M) / ($45.3M) |
| Free Cash Flow | - | $52.9M | ($64.0M) |
| Cash & Short-Term Investments | - | $640.1M | $228.7M |
| Backlog | - | $900.4M | $503.7M |
| Percent Recurring ACV | - | 98% | Not disclosed |
Net Losses Driven by Accounting, Not Core Operations
Planet reported a GAAP net loss of $246.9 million for fiscal 2026. However, a majority of this loss—about $161.4 million—was attributed to non-cash revaluation losses related to warrant liabilities that are tied to stock price appreciation, not operational weakness. On a non-GAAP basis, which strips out these items and aligns more closely with operational performance, the net loss was much narrower at $13.6 million for the year, underlining the underlying profitability trend as free cash flow turned positive.
Major Contracts and Partnerships Drive Demand and Diversification
Planet’s broadening customer base was apparent through milestone agreements with defense agencies and commercial players. Recent wins included a nine-figure satellite services deal with Sweden, expanded contracts with the U.S. Defense Innovation Unit and NATO, large-scale renewals by San Diego Gas & Electric and Germany’s BKG, and program wins such as the U.S. Missile Defense Agency’s SHIELD IDIQ. Strategic partnerships, like the new alliance with AiDASH for wildfire risk data, are expanding Planet’s reach beyond government and into utility and infrastructure verticals.
Forward Guidance Suggests Continued Expansion in 2027
Looking ahead, Planet projects revenue between $415 million and $440 million for fiscal 2027, which would mark a 35–43% increase from the year prior. Even as investment in technology ramps up, particularly in AI, management expects to sustain non-GAAP gross margins of roughly 50–52% and sees adjusted EBITDA in the range of break-even to $10 million.
| FY2027 Guidance | Range |
|---|---|
| Revenue | $415M – $440M |
| Non-GAAP Gross Margin | 50% – 52% |
| Adjusted EBITDA | $0 – $10M |
| Capital Expenditures | $80M – $95M |
Key Takeaway: Platform Strength and Recurring Model Provide Foundation for Growth
Planet Labs’ FY26 results and growing backlog point to an expanding addressable market, backing management’s upbeat projections for FY27. While accounting items drove large GAAP losses, operational and cash flow metrics highlight the company’s growing maturity and scalability. Investors and industry watchers may want to keep an eye on Planet’s execution in AI and new markets, as the recurring revenue model and deep contract pipeline offer a framework for continued expansion and potential earnings leverage in the coming quarters.
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