Planet Labs PBC (NYSE: PL) is a prominent provider of daily satellite imagery and geospatial solutions, founded in 2010 by former NASA scientists. The company’s mission is to image the Earth every day, enabling users to derive actionable insights from its data.

In the first quarter of fiscal year 2026, Planet reported a revenue of $66.3 million, an increase of approximately 10% year-over-year. The non-GAAP gross margin for the quarter was 59%, compared to 55% in the previous year. The adjusted EBITDA profit was $1.2 million for the quarter, contrasting with an adjusted EBITDA loss of $8.4 million in the same quarter the previous year. The company achieved positive cash flow from operating activities of $17.3 million and recorded its first-ever quarter of positive free cash flow at $8 million.

The backlog of the company reached approximately $527 million, reflecting a 140% year-over-year increase, while remaining performance obligations (RPOs) were approximately $451.9 million, up 262% year-over-year. The percentage of recurring annual contract value (ACV) for the quarter was reported at 97%, demonstrating a strong commitment to subscription-based revenue streams. Moreover, the net dollar retention rate at the end of the quarter was 103% and 104% when including winbacks.

The company’s financial guidance for the second quarter of fiscal 2026 projects revenue between $65 million and $67 million, with a non-GAAP gross margin expected to be between 56% and 57%. An adjusted EBITDA loss for the second quarter is anticipated to be in the range of $4 million to $2 million. Capital expenditures are projected to be between $17 million and $22 million for the quarter. Furthermore, for the full fiscal year 2026, Planet expects revenue to be between $265 million and $280 million.

In conclusion, Planet Labs is experiencing growth, highlighted by improved revenue, significant gains in gross margins, and milestones such as positive free cash flow, positioning it favorably in the market. The ongoing focus on expanding its customer base and subscription revenue model appears to be reinforcing its upward trajectory.