Planet Labs PBC Achieves First Positive Free Cash Flow In Q1 FY2026 Amidst Strategic Expansions

$PL

Planet Labs PBC (NYSE:PL), a leading provider of satellite imagery and geospatial solutions, has reported a significant financial milestone in its first quarter of fiscal year 2026. The company not only achieved its first-ever positive free cash flow but also demonstrated robust revenue growth and strategic advancements in its satellite services and AI integrations.

For Q1 FY2026, Planet Labs posted revenue of $66.3 million, marking a 10% increase from the previous year. This growth was primarily driven by key defense and intelligence contract wins and strong performance in government accounts. Notably, the company’s non-GAAP gross margin expanded to 59%, despite anticipated future cost pressures. Adjusted EBITDA for the quarter was reported at $1.2 million, continuing the trend of profitability from the previous quarter.

The company’s operating cash flow stood at $17.3 million, with free cash flow reaching $8 million. This achievement is particularly noteworthy as it represents its first quarter of positive free cash flow. Planet Labs has been actively expanding its capabilities in both the defense and intelligence sectors, where revenue grew by over 20% year-over-year.

This growth is attributed to the expansion of core data and solutions services and a notable eight-figure European defense contract. The company’s civil government sector, however, saw a decline due to the expiration of specific contracts, although this was offset by new high-profile wins like the California Air Resources Board program.

Q2 FY2026, Planet Labs expects revenue to be between $65 million and $67 million, with a projected non-GAAP gross margin of 56%-57%. The anticipated adjusted EBITDA loss for the quarter is between $2 million and $4 million, reflecting ongoing investments in technology and fleet expansion. For the full fiscal year 2026, the company has raised its revenue guidance to $265 million to $280 million, indicating a positive outlook despite prevailing geopolitical and economic uncertainties. Planet Labs’ first quarter of fiscal year 2026 has set a precedent for its financial and operational trajectory.

With a solid backlog that supports multi-year growth and a strategic focus on high-value sectors and technological innovation, Planet Labs is well-positioned to maintain its growth momentum and strengthen its market leadership in global geospatial intelligence solutions. The company continues to execute on its key initiatives, it remains a pivotal player in shaping the future of satellite data and analytics.

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