Planet Labs PBC (NYSE: PATH) reported a record second-quarter fiscal 2027 revenue of $116.1 million, marking a 58% year-over-year increase. The satellite imagery company exceeded analyst revenue expectations and delivered non-GAAP earnings that beat consensus estimates.

The stock traded volatile Friday, closing down 1.25% at $18.12 after initially rising in extended trading. Needham analyst Ryan Koontz noted that revenue benefited from earlier-than-expected recognition tied to Sweden’s first sovereign satellite.

Financial Performance

Planet Labs delivered strong top-line growth, driven by increased demand for its Earth observation data. The company’s quarterly revenue of $116.05 million surpassed the Street estimate of $104.12 million by 11.46%.

Despite the revenue beat, the company reported a quarterly loss of three cents per share on a GAAP basis, which missed the consensus estimate for losses of two cents. However, non-GAAP earnings came in at 2 cents per share, beating the consensus estimate of a loss of 2 cents. The net loss for the quarter stood at ($9.4) million, a significant improvement from the ($22.6) million loss recorded in the second quarter of fiscal 2026.

Operational Highlights

Will Marshall, Planet’s CEO, highlighted the quarter as "outstanding," noting that the results marked the fourth consecutive quarter of meeting or exceeding the Rule of 40.

Key operational metrics include:

• Recurring annual contract value (ACV) constituted 98% of total ACV as of the end of the second quarter.
• Remaining performance obligations rose 9% to about $753 million.
• Backlog increased 11% to roughly $815 million.
• Adjusted EBITDA reached $13.9 million, supported by stronger revenue.

Segment and Regional Growth

Defense and intelligence revenue surged more than 90% year over year, while commercial revenue grew more than 15%. Civil government revenue increased more than 5%.

Geographically, revenue jumped more than 130% in Europe, the Middle East and Africa. North American revenue rose about 25%, while Asia-Pacific revenue increased more than 15%. Latin American revenue grew about 3%.

Planet Labs also secured an $8 million contract with the National Geospatial-Intelligence Agency for its Global Monitoring Service. Additionally, the company landed a seven-figure European defense deal and a German government satellite-services tender worth up to 25 million euros over five years.

Cash Flow and Balance Sheet

Year to date, Planet Labs generated about $68 million in operating cash flow. Free cash flow totaled $21 million, while adjusted free cash flow reached $29 million.

The company ended the quarter with about $865 million in cash, cash equivalents and short-term investments. It also raised about $120 million through its at-the-market stock offering at an average net price of $31.95 per share.

Outlook

For the third quarter, Planet Labs expects revenue of $101 million to $105 million, below the $114.33 million consensus estimate. The company raised the low end of its fiscal 2027 revenue outlook to $430 million from $425 million while maintaining the high end at $441 million. Analysts expect $435.67 million.

Full-year capital expenditures are expected to range from about $100 million to $115 million, mainly for manufacturing facilities and next-generation satellites.

What the Numbers Show

The divergence between the GAAP earnings miss and the non-GAAP earnings beat highlights the impact of specific accounting treatments or one-time costs not reflected in adjusted metrics. While non-GAAP gross margin contracted by 200 basis points from 61% to 59% due to investments in satellite services contracts and AI-enabled partner solutions, the absolute net loss narrowed substantially. This suggests that while operational efficiency margins faced pressure from strategic investments, overall cost discipline and revenue scale helped reduce the bottom-line deficit significantly compared to the prior year period.

Planet Labs (NYSE: PL) issued Q3 revenue guidance of $101.000 million to $105.000 million, falling short of the $114.326 million analyst consensus.

The guidance indicates a significant deviation from market expectations, with the upper end of the forecast range trailing the estimate by over $9 million.

What the Numbers Show

The midpoint of Planet Labs’ guidance range ($103 million) represents a miss of approximately 10% against the $114.326 million estimate. This divergence highlights a gap between analyst projections and management’s current visibility on near-term revenue realization.

The company did not provide additional operational metrics or margin data in this update.