Abstract
Planet Labs Pbc will release its quarterly results on December 10, 2025 Post Market; this preview outlines expectations for revenue, margins, adjusted EPS, and segment dynamics alongside recent analyst views and operational developments.
Market Forecast
Consensus this quarter centers on steady growth in total revenue and improving earnings quality, with Planet Labs Pbc guiding toward Revenue at USD 71.99 million, Gross Profit Margin trending around the mid‑50.00% range, Net Profit Margin improving versus last quarter’s negative level, and adjusted EPS forecast at USD -0.04, all with positive year‑over‑year momentum. The main business outlook points to continued demand from defense and public sector clients as contract conversions and renewals underpin near‑term revenue visibility. The most promising segment is defense and intelligence, with last quarter revenue at USD 41.91 million and clear year‑over‑year gains as expanding tasking activity and analytics adoption support growth.
Last Quarter Review
Planet Labs Pbc posted last quarter Revenue of USD 73.39 million, Gross Profit Margin of 57.60%, GAAP net profit attributable to the parent company of USD -22.59 million, Net Profit Margin of -30.79%, and adjusted EPS of USD -0.03, with year‑over‑year adjusted EPS growth of 50.00%. A key highlight was a substantial EBIT beat relative to internal and external forecasts, reflecting operating efficiency and disciplined expense control. Main business highlights included Defense and Intelligence revenue of USD 41.91 million, Citizen Government revenue of USD 16.43 million, and Commercial revenue of USD 15.05 million, with the defense segment anchoring growth on larger multi‑year arrangements.
Current Quarter Outlook
Main Business Dynamics: Government and Defense Anchoring Near-Term Revenue
Planet Labs Pbc’s government‑driven demand, led by defense and intelligence, remains the core revenue engine for this quarter. The prior quarter mix showed defense and intelligence at USD 41.91 million, citizen government at USD 16.43 million, and commercial at USD 15.05 million, highlighting a concentration in mission‑critical use cases. The company’s platform value proposition—rapid, daily global monitoring with increasing analytics layers—continues to align with defense priorities, which often translate into multi‑year deals and higher renewal rates. For this quarter, revenue guidance of USD 71.99 million suggests a moderate sequential contraction after last quarter’s upside but a healthy year‑over‑year increase of 14.05%, consistent with stable procurement cycles and broadened deployments. Margin resilience hinges on data operations and cloud delivery efficiencies; with a prior quarter gross margin of 57.60%, the company’s target is to protect mid‑50.00% levels even as tasking mixes and enterprise support costs fluctuate. If contract timing skews late‑quarter, revenue recognition may weigh on sequential optics, but the embedded pipeline remains favorable for sustained growth.
Largest Growth Potential: Defense and Intelligence Scaling with Analytics
Defense and intelligence is positioned as the strongest growth vector, underpinned by increasing tasking, higher‑value analytics layers, and broader mission applications across allied markets. With last quarter revenue of USD 41.91 million, this segment is benefiting from expanding geospatial intelligence budgets and the integration of machine learning‑based analytics that enhance situational awareness and decision support. The company’s ability to deliver high‑frequency, planet‑scale imagery and derived insights can command premium pricing, supporting mix upgrades and potentially lower churn. This quarter, growth drivers include renewal expansions, new regional contracts, and increased usage intensity tied to global security dynamics. Risks to watch include procurement delays due to budgeting cycles, evolving compliance requirements, and competitive pressure from peers offering synthetic aperture radar or niche analytics solutions. Successful execution in analytics packaging and faster onboarding should reinforce revenue per account, while margin preservation depends on managing cloud compute costs against rising analytical workloads.
Stock Price Drivers: Profitability Trajectory, Contract Timing, and Operating Leverage
The stock’s near‑term reaction will likely be driven by updated commentary on the path to profitability and cash burn moderation, as investors weigh adjusted EPS of USD -0.04 and EBIT guidance of USD -14.35 million against prior quarter improvements. A clear signal on operating leverage, including sales productivity and lower unit costs for data production and delivery, may support sentiment even if revenue lands near the midpoint. Contract timing is a swing factor: a heavier fourth‑quarter skew could compress sequential revenue, while earlier conversions would underpin beats. Visibility into renewals, backlog growth, and net retention is essential for gauging sustained momentum. Any indication of gross margin stability around 55.00%–58.00% alongside disciplined opex could anchor expectations for a narrowing net loss. Conversely, higher‑than‑expected compute or constellation maintenance costs could pressure margins, while any slowdown in commercial upsell would temper multi‑segment balance. A constructive setup depends on reaffirmed year‑over‑year growth metrics and evidence of consistent execution on analytics adoption.
Analyst Opinions
The majority of recent analyst views are constructive, with multiple Buy ratings outweighing Holds. Craig‑Hallum reiterated Buy in recent months, highlighting improving execution and a strengthening demand backdrop for Planet Labs Pbc’s imaging and analytics platform. Northland Securities maintained Buy with a USD 16.00 price target, pointing to expanding government adoption and the potential for commercial acceleration as analytics services deepen customer value. Citizens JMP repeated Buy with an USD 11.00 target, framing valuation support around revenue scale and margin progression as the company optimizes cost structure. Deutsche Bank and Wedbush added supportive coverage updates, with Deutsche Bank reaffirming Buy and Wedbush’s latest note emphasizing strategic engagement across priority accounts; Goldman Sachs stood neutral at Hold with a USD 10.90 target, citing the path to profitability as the key watch item. On balance, bullish opinions dominate, emphasizing revenue durability in the government segments, rising analytics monetization, and an improving efficiency profile that could bring adjusted EPS closer to breakeven in coming periods. The majority view expects this quarter’s results to underscore consistent year‑over‑year growth and provide clearer markers on operating leverage, with the most attention on gross margin stability and the cadence of contract conversions.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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