Planet Labs PBC (PL) | Investment Case

1. Company Snapshot

1.a. Company Description

Planet Labs PBC designs, constructs, and launches constellations of satellites with the intent of providing high cadence geospatial data delivered to customers through an online platform worldwide.The company offers Open Geospatial Consortium, a cloud-native proprietary technology that performs critical processing and overall harmonizing of images for time series and data fusion and analysis; and space-based hardware and related software systems.It serves agriculture, mapping, forestry, and finance and insurance, as well as federal, state, and local government bodies.

The company was incorporated in 2010 and is headquartered in San Francisco, California.

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1.b. Last Insights on PL

The recent 3-month performance of Planet Labs PBC was negatively driven by a Q4 earnings miss, with revenue $0.33 million below estimates and GAAP EPS 5¢ below expectations. This led to a stock drop, despite commercial sector weakness, defense and intelligence segments grew 20% YoY, and civil government grew 15%, with strong performance in Latin America. The company achieved positive adjusted EBITDA for the first time, signaling progress towards profitability, though GAAP earnings missed expectations.

1.c. Company Highlights

Last Price	12.77
Change Percentage	-1.31%
Open	12.93
Previous Close	12.94
Market Cap ( Millions)	3931
Volume	4544146
Year High	16.78
Year Low	2.79
M A 50	13.03
M A 200	7.36

FCF Yield	0.82%
Dividend Yield	0.00%
ROE	-20.25%
Debt / Equity	4.03%
Net Debt / EBIDTA	304.06%
Price To Book	8.91
Price Earnings Ratio	-42.94
Price To FCF	121.51
Price To sales	14.98
EV / EBITDA	-67.33

2. Planet Labs PBC Q2 FY2026 Earnings Analysis

Planet Labs PBC reported Q2 FY2026 revenue of $73.4 million, up 20% YoY, with non-GAAP gross margin at 61% and adjusted EBITDA profit of $6.4 million. The earnings per share (EPS) was '-0.03', in line with estimates. Free cash flow reached $54.3 million, with year-to-date cash flow from operations at $85.1 million.

Publication Date: Sep -10

📋 Highlights

Financial Performance

The company's financial performance was driven by strong government interest in monitoring solutions and recent wins with the U.S. Navy and NATO. The backlog surged 245% YoY to $736.1 million, providing visibility for FY2027 growth.

Valuation Metrics

With a P/S Ratio of 10.58 and EV/EBITDA of -46.67, the market seems to be pricing in significant growth expectations. The company's ROE (%) is -20.25, and ROIC (%) is -16.97, indicating potential operational challenges. The current cash balance of $271.5 million and positive free cash flow yield of 1.17% provide some comfort.

Segment Performance

Defense and Intelligence revenue grew 41% YoY, driven by contracts with the U.S. DoD, NRO, and JSAT. Commercial revenue rose 6% YoY, with wins in agriculture and energy. Civil government revenue declined 4% due to Norway contract expiration but showed potential in environmental monitoring.

Future Outlook

CEO Will Marshall highlighted strong business momentum from core operations, satellite services deals, and confidence in FY ’27 growth, driven by cash, backlog, and key contracts with NATO and INDOPACOM. The company is set to discuss growth strategies at its Investor Day on October 16, 2025.

3. NewsRoom

Planet Labs Prepares For Q3'26 Earnings Amid Strategic Quantum Systems Collaboration

Dec -04

Source: seekingalpha.com

Planet Labs ($PL) | Plug Power ($PLUG) | Stratasys ($SSYS) | Spire Global ($SPIR)

Dec -01

Source: youtube.com

Planet Launches High-Resolution Pelican-5, Pelican-6 Satellites and 36 SuperDoves

Nov -28

Source: businesswire.com

These Are the 3 Biggest Stocks in Alphabet's Secret Portfolio

Nov -22

Source: 247wallst.com

Planet Labs PBC (NYSE:PL) Receives Average Rating of “Moderate Buy” from Brokerages

Nov -22

Source: defenseworld.net

Planet and Quantum Systems Partner on Joint Satellite and Drone Monitoring Capabilities for European Defense Customers

Nov -18

Source: businesswire.com

Planet to Announce Fiscal Third Quarter 2026 Results on Wednesday, December 10, 2025

Nov -17

Source: businesswire.com

Space Beats Silicon: Rocket Lab, Planet Labs, And Archer Aviation Outshine Nvidia In 2025

Nov -12

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.07%)

6. Segments

Constellations of Satellites

Expected Growth: 14.07%

Planet Labs PBC's constellation of satellites growth is driven by increasing demand for Earth imaging and data analytics, expansion into new markets such as agriculture and forestry, and strategic partnerships with government agencies and private companies. Additionally, advancements in satellite technology and decreasing launch costs contribute to the 14.07% growth.

7. Detailed Products

Dove Satellites

A fleet of small satellites designed to capture high-resolution imagery of the Earth's surface, providing global coverage and frequent revisits.

PlanetScope

A high-resolution imaging constellation providing daily, global coverage of the Earth's surface.

RapidEye

A constellation of five satellites providing high-resolution, multispectral imagery for agricultural, forestry, and environmental monitoring.

SkySat

A high-resolution, high-frequency imaging constellation providing sub-meter resolution imagery.

Planet Analytics

A platform providing insights and analytics from satellite imagery, enabling data-driven decision-making.

Planet Explorer

A web-based platform providing access to Planet's satellite imagery and analytics, enabling users to explore and analyze the Earth's surface.

8. Planet Labs PBC's Porter Forces

Forces Ranking

Threat Of Substitutes

Planet Labs PBC's satellite imaging services have some substitutes, such as aerial imaging and drone-based imaging, but they are not perfect substitutes. The company's unique selling proposition of providing daily, global satellite imagery at a high resolution makes it difficult for substitutes to replace its services.

Bargaining Power Of Customers

Planet Labs PBC's customers, including governments, NGOs, and commercial entities, have limited bargaining power due to the company's unique offerings and limited competition in the satellite imaging market.

Bargaining Power Of Suppliers

Planet Labs PBC has a diversified supplier base, and the company's suppliers have limited bargaining power due to the availability of alternative suppliers and the company's significant purchasing power.

Threat Of New Entrants

The threat of new entrants in the satellite imaging market is high due to the increasing availability of launch services, advancements in satellite technology, and decreasing costs. New entrants could potentially disrupt Planet Labs PBC's market share.

Intensity Of Rivalry

The intensity of rivalry in the satellite imaging market is moderate, with a few established players, including Planet Labs PBC, DigitalGlobe, and Airbus Defence and Space. The market is characterized by a moderate level of competition, with companies competing on factors such as image resolution, pricing, and customer service.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	4.59%
Debt Cost	3.95%
Equity Weight	95.41%
Equity Cost	8.58%
WACC	8.36%
Leverage	4.81%

11. Quality Control: Planet Labs PBC passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Planet Labs

A-Score: 4.0/10

Value: 4.2

Growth: 5.2

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Mercury Systems

A-Score: 4.0/10

Value: 3.3

Growth: 3.7

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

Intuitive Machines

A-Score: 3.9/10

Value: 8.0

Growth: 1.8

Quality: 4.4

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

1-Year Total Return ->

Astronics

A-Score: 3.9/10

Value: 3.5

Growth: 4.0

Quality: 3.3

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

Terran Orbital

A-Score: 3.9/10

Value: 9.6

Growth: 3.2

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

Sidus Space

A-Score: 3.3/10

Value: 7.2

Growth: 4.4

Quality: 3.1

Yield: 0.0

Momentum: 4.5

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

66.22%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.36%

Planet Labs PBC - US72703X1063

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PL

1.c. Company Highlights

Weak Momentum

More Volatile

Cheaper

Earnings Beats

Revenues Beats

Revenues Miss

Average Yield

Strong Momentum

Earnings Miss

Lower Quality

2. Planet Labs PBC Q2 FY2026 Earnings Analysis

Financial Performance

Valuation Metrics

Segment Performance

Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.07%)

6. Segments

Constellations of Satellites

Expected Growth: 14.07%

7. Detailed Products

Dove Satellites

PlanetScope

RapidEye

SkySat

Planet Analytics

Planet Explorer

8. Planet Labs PBC's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Planet Labs PBC passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.77$

Current Price

12.77$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA