Planet Labs PBC (NYSE:PL) reported fiscal second-quarter 2027 revenue of $116.1 million, up 58% year over year. The company generated $13.9 million of company-defined non-GAAP adjusted EBITDA, up from $6.4 million a year earlier, while its GAAP net loss narrowed to $9.4 million from $22.6 million.
Planet Labs PBC defines adjusted EBITDA as net income or loss before net interest, taxes, depreciation and amortization, with further adjustments for stock-based compensation, warrant-liability fair-value changes, other income or expense, restructuring, specified litigation costs and employer taxes tied to earnout share vesting. The positive result is therefore different from GAAP profitability.
Photo from Planet Labs website
BULL CASE
The strongest part of the story is contracted demand. Planet Labs PBC ended the quarter with $753.1 million of remaining performance obligations, representing contracted future revenue not yet recognized. About 46% is expected to convert within 12 months and 68% within 24 months.
Company-defined non-GAAP backlog was $814.9 million. This measure adds cancelable contract value and written orders without appropriated funding to remaining performance obligations, while excluding unexercised options. Planet Labs PBC expects roughly 50% of backlog to convert within 12 months and 70% within 24 months. That schedule provides meaningful visibility if government programs proceed as planned.
Cash generation remained positive alongside the growth. Year-to-date operating cash flow was $68.4 million, while company-defined non-GAAP free cash flow was $21.3 million. Planet Labs PBC calculates free cash flow as operating cash flow less property and equipment purchases and capitalized internal-use software costs. Cash, cash equivalents and short-term investments totaled $865.4 million, providing capacity for satellite manufacturing, launches and product development.
Management raised the lower end of its full-year outlook. Planet Labs PBC now expects fiscal 2027 revenue of $430 million to $441 million and adjusted EBITDA profit of $3 million to $10 million.
BEAR CASE
The quarterly cadence remains uneven. Third-quarter guidance calls for revenue of $101 million to $105 million and an adjusted EBITDA loss of $1 million to $6 million. Capital expenditures are expected to reach $30 million to $37 million in the quarter and $100 million to $115 million for the year. Constellation investment and contract timing can quickly reverse adjusted profitability.
Backlog also declined from $900.4 million at the end of January, while remaining performance obligations fell from $852.4 million. Conversion explains part of that movement, but durable expansion requires new awards to replenish contracted work. Backlog carries additional risk because $61.7 million was cancelable contract value, and government agreements can face termination or funding constraints.
The GAAP result remains another constraint. Adjusted EBITDA excluded $17.1 million of stock-based compensation in the quarter. Year-to-date free cash flow was positive but below $54.3 million a year earlier. Planet Labs PBC also raised approximately $120 million through its at-the-market stock program during the quarter, strengthening liquidity while increasing the share count.
Hedge Fund Sentiment
The filings available so far reflect positions held before Planet Labs PBC reported its fiscal second-quarter 2027 results. Insider Monkey’s database showed 53 hedge funds holding Planet Labs PBC at the end of 2Q2026, up from 43 funds three months earlier.
CONCLUSION
Planet Labs PBC has moved beyond a purely speculative scale story. Revenue growth, positive adjusted EBITDA and positive free cash flow show that the model can generate operating leverage. Still, the quarterly adjusted EBITDA profit does not establish durable profitability.
The next test is whether backlog converts on schedule while new awards replace recognized work. Third-quarter revenue, government-program timing, capital spending, and a return to adjusted EBITDA profitability will show whether the current growth surge can become sustained cash generation.
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This article is originally published at Insider Monkey.
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