Planet Labs PBC

Thank you for joining us, and welcome to the Planet Labs PBC third quarter of fiscal 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand, star 6 to unmute. I will now hand the conference over to Cleo Palmer-Peroner, Director of Investor Relations.

Thanks, Operator, and hello, everyone. This is Cleo Palmer-Perroner, Director of Investor Relations at Planet Labs PBC. Welcome to Planet's third quarter of fiscal year 2026 earnings call. I'm joined by Will Marshall and Ashley Johnson, who will provide a recap of our results and discuss our current outlook. We encourage everyone to please reference the earnings press release and earnings update presentation for today's call, which are available on our investor relations website. Before we begin, we'd like to remind everyone that we will make forward-looking statements related to future events of our financial outlook. Any forward-looking statements are based on management's current outlook, plans, estimates, expectations, and projections. The inclusion of such forward-looking information should not be regarded as a representation by Planet that future plans, estimates, or expectations will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions as detailed in our SEC filings which can be found at www.sec.gov. Our actual results or performance may differ materially from those indicated by such forward-looking statements and we undertake no responsibility to update such forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. During the call, we will also discuss historic and forward-looking non-GAAP financial measures. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. For more information on the non-GAAP financial measures, please see the reconciliation tables provided in our press release issued earlier this afternoon, which is available on our website at investors.planet.com. Further, throughout this call, we provide a number of key performance indicators used by management and often used by competitors in our industry. These and other key performance indicators are discussed in more detail in our press release and our earnings update presentation, which are intended to accompany our prepared remarks. At this point, I'd now like to turn the call over to Will Marshall, Planet's CEO, chairperson, and co-founder. Over to you, Will.

Thanks, Cleo, and welcome everyone joining us today. It was another strong quarter, so let's dive in. To briefly summarize the financials, we generated $81.3 million in revenue, representing approximately 33% growth year over year, marking another quarter of growth acceleration. Non-GAAP gross margin was 60% in the quarter, and adjusted EBITDA profit came in at $5.6 million, representing our fourth sequential quarter of adjusted EBITDA profitability. Our backlog was $734.5 million at the end of the quarter, representing a year-over-year increase of 216%. Once again, we delivered positive free cash flow, the third quarter in a row, reinforcing our expectation of being free cash flow positive for the full fiscal year. I'm particularly proud to report that with the strong performance in Q3, we are now also expected to be adjusted EBITDA positive in FY26, an excellent milestone for the team as we work to strike a balance between profit and growth. Turning to sales highlights, I'll start with the defense and intelligence sector, where Q3 revenue accelerated to over 70% growth year on year, up over 15% quarter over quarter, all driven by strong performance in our data subscription and solutions businesses, as well as our satellite services business. As previously announced, we were awarded a prime contract under the LUNO-B program by the National Geospatial Intelligence Agency for a $12.8 million initial award with partner CIMMAX. The award is for advanced analytics for maritime operations and reconnaissance. Under this program, we will provide the NGA with AI-enabled maritime domain awareness solutions, which include vessel detections and monitoring over key areas of interest in the Asia-Pacific. We're honored to have been selected and excited to be expanding this relationship. The National Reconnaissance Office renewed its baseline contract for PlanetScope broad area monitoring data under the Electro-Optical Commercial Layer Program for $13.2 million through June 2026. If you were to analyze this award, the annual run rate would be approximately $21.1 million. For the high resolution component of our EOCL relationship, we have been awarded a framework contract, which the NRO can utilize to order high resolution pelican imagery. As a reminder, the EOCL program has been impacted by both the U.S. government shutdown and potential federal budget reductions. That said, we're encouraged by the continued engagement from this critical customer and see significant opportunities for growth in that relationship in the future, particularly as this administration leans into leveraging commercial technologies. We also won an eight-figure renewal with a longstanding international defense and intelligence customer for high-resolution imagery, as we announced last month. And also, as previously announced, we were awarded a six-month, $7.5 million contract renewal by the US Navy for vessel detection and monitoring over key areas of interest throughout the Pacific. Finally, our global monitoring pilots with NATO and DIU have been progressing very well. We're pleased to share that last month we were awarded a seven-figure expansion by NATO prior to the completion of our existing pilot for them. We're incredibly proud of this early traction and are working hard to continue delivering for these customers. More broadly, we continue to see robust demand for downstream products that embed AI-enabled analytics on top of our daily scan for customers' operations, enhance situation awareness, and support informed decision making. Turn to the civil government sector, where third quarter revenue was up approximately 1% year-over-year and up approximately 15% quarter-over-quarter, To share a recent highlight, during the quarter, NASA awarded us a one-year $13.5 million task order under the Commercial Satellite Data Acquisition Program. As a reminder, this program has also been impacted by the U.S. government shutdown and potential federal budget reductions. Although this relationship has historically been an approximately $20 million annual run rate, We're very pleased to be continuing this important work with our partners at NASA and see opportunities to expand the relationship in the future. In fact, since the end of the quarter, we have received an incremental CSDA task order from NASA for disaster response. Under this new order, which is just under a million dollars in value, we will be providing high-resolution task imagery to support disaster response and recovery. shifting finally to the commercial sector where revenue was moderately down both year over year and quarter over quarter while this trend is expected given our increased focus on large government customers we remain confident in the commercial sector as a significant market opportunity for planet especially as we continue to advance our solution capabilities We believe that AI-enabled solutions we're developing for our government customers will enable us to deliver insights that can serve applications across a broad range of industries and use cases, from supply chain, security and optimization, to insurance, finance, energy and agriculture, where we have had a number of marquee customers today. We expect these solutions will help unlock growth in the commercial sector, bridging the gap from data to insights for those customers. To share a recent commercial highlight, we signed a new operational contract with AXA, one of the world's leading insurance groups, following a successful proof of concept. AXA Digital Commercial Platform, or DCP, will integrate data from planet basemaps, our medium-resolution monitoring satellites, and high-resolution tasking fleets as well, directly into its DCP geoclaims application to enhance claim processing efficiency and accuracy for property management. We've also signed a strategic marketplace agreement, which will add Planet's products to AXA's DCP platform, making them commercially available to AXA's vast client network of insurance partners. This partnership marks a major step forward in proactive, data-led resilience in the face of complex disaster and crisis management needs. Turning to our satellite services business, the team is continuing to execute well on our contract with JSAT, which once again contributed to revenue upside in the quarter. We've also began ramping for our German-funded satellite services deal and saw a small contribution from that work in the quarter. As we've shared previously, we're seeing very strong demand signals for satellite services, driven by our current geopolitical landscape and the demand for sovereign access to space. We're continuing to aggressively pursue strategic opportunities, and the pipeline is robust. Turning now to the consistently remarkable execution by our space systems teams. Just 12 days ago, we launched two of our high-resolution pelicans into orbit, bringing our commercial fleet size to five satellites. We also launched 36 superdoves, which would join our broad area monitoring fleet. We have successfully contacted all 38 satellites, and they're now undergoing routine commissioning as they prepare to begin serving customers. We got first light down from the Pelicans the next day, and we're excited to share initial images, which you can find in the or on our IR website. We also recently announced plans to open a new Berlin satellite manufacturing for the production of next-generation high-resolution Pelican satellites in Germany. We expect to begin ramping operations next year, with the aim to roughly double our manufacturing capacity and better meet growing demand from the European market. Now, I want to provide a little more context on our two strategic projects that we announced in the quarter. Firstly, in October, we announced OWL, our next generation monitoring fleet, to continue our unique board area monitoring mission currently serviced by the Superdub fleet, but improving the resolution to one meter class, lowering the latency, and significantly upgrading the onboard compute to incorporate NVIDIA GPUs. OWL is designed from the ground up to adjust expanded applications ranging from security to disaster response to rapid change detection. The first tech demo is slated for launch later in calendar year 2026, and we're incredibly excited about the future of our daily monitoring solutions. Secondly, we've recently announced a funded R&D initiative with Google called Project SunCapture. SunCapture aims to enable scaled AI computing in space by putting Google's Tensor Processing Units, or TPUs, on purpose-designed satellites where they can leverage the energy of the sun and shed excess heat into the natural coldness of space. This was a competitive win for Planet. and our strong track record of building, launching, and operating over 600 satellites to date, together with our collaboration on AI-enabled solutions, represents a competitive edge, underlying the depth of our experience and our agile aerospace approach. Suncatcher aligns well with our technology development roadmap for OWL, leveraging the same satellite bus, and is therefore highly synergistic. As previously announced, we're planning to deploy two prototype satellites in early 2027. We're excited to be working with our long-term partner, Google, to develop this promising new technology. On the solutions side, I'm excited to share today that we recently closed the acquisition of Bedrock Research, an AI solutions company based in Denver, Colorado. Through our collaborations to date, Bedrock has successfully delivered for our existing defense and intelligence customers. From a team perspective, they have a rare, deep expertise in the intersection of remote sensing, AI, and natural security. We've been very impressed with their team's agility, creativity, and innovation. We view this as a strategically valuable capability, and given the traction we're seeing in global monitoring, bringing this expertise in-house now will help us to accelerate our roadmap for AI-enabled solutions and support our ability to efficiently scale to meet that market demand. we're thrilled to welcome the Bedrock team to the planet organization. To close out, in Q3, we demonstrated continuing momentum across the business driven by strong execution, strategic wins in the government sector, and exciting new developments and technologies that we announced of OWL and SunCatcher. We believe we are well positioned for growth and profitability, reinforced by our robust backlog and commitments to developing best-in-class solutions for our customers. I'm incredibly proud of our global team for the phenomenal execution and excited for what lies ahead. With that, I'll turn it over to Ashley to discuss our financials. Over to you, Ash.