TenQ

The Planet Labs story

Planet Labs provides daily satellite imagery and builds satellites for customers, with the central question of whether sovereign satellite services can turn its recurring imagery business into sustained profitability.

Planet Labs stock reportTenQ Score 9/36 · every chart and check from its filings
  • $13.56share price, last close
  • $4.9Bmarket value
  • 9/36TenQ Score checks passed

The story in brief

  • Growth has accelerated. Revenue reached $116.1 million in the quarter to July 2026, up 58% from a year earlier, as Planet expanded satellite services alongside its imagery business.
  • Profitability remains uneven. Adjusted EBITDA profit was $13.9 million in the quarter to July 2026, but Planet expects an adjusted EBITDA loss in the quarter to October 2026.
  • Equity helped build cash. Cash, cash equivalents and short-term investments reached $865.4 million at July 2026, supported by approximately $120 million raised through stock issuance during the quarter.

What drives the business

  • Planet licenses imagery and analytics through subscriptions and usage contracts, allowing the same images to generate revenue from multiple customers across agriculture, defense and intelligence, and other markets.
  • Its SuperDove monitoring fleet, SkySat and Pelican imaging satellites, and Tanager hyperspectral offering feed an archive averaging over 3,000 images for every point on Earth's landmass, supporting analytics and machine learning.
  • The expansion into satellite services includes a multi-year €240 million agreement funded by the German government for dedicated Pelican capacity and related services, a multi-year low 9-figure agreement with the Swedish Armed Forces for satellites and intelligence solutions, and support for Japan through JSAT.
  • In August 2026, Planet received an $8 million National Geospatial-Intelligence Agency award and a separate German government tender with a maximum possible value of €25 million over 5 years, including options.
  • At July 2026, remaining performance obligations were approximately $753.1 million, with approximately 46% applying to the next twelve months, providing contracted revenue visibility as Planet combines imagery access with manufacturing and mission operations.

What the price assumes

TenQ's reverse DCF does not produce a measurable growth assumption because its negative free cash flow premise conflicts with reported free cash flow of $25 million over the last twelve months, while operating earnings remain negative.

The $6.4 billion market value represents 17.0x sales, alongside revenue growth of 44.1% over the last twelve months versus an annual pace of 17.2% over the last three years.

TenQ's Value checks passed 0 of 6, with a free cash flow yield of 0.4% against its 3.0% threshold, leaving future profitability central to the valuation.

What could change the story

  • An operating margin of -27.2% over the last twelve months shows that rapid revenue growth has not yet produced operating profitability, despite the adjusted EBITDA profit reported for the quarter to July 2026.
  • The approximately $814.9 million backlog at July 2026 includes cancelable contracts and orders awaiting funding appropriations, so it is not equivalent to committed revenue.
  • Stock-based pay of $63 million over the last twelve months and a share count increase of 15.2% over 3 years show the ownership dilution accompanying Planet's expansion.
  • Liabilities reached 60.6% of assets versus 21.1% five years earlier, and TenQ's interest coverage check fails, making the distinction between cash raised and cash generated important.

What to watch next

  • For the quarter to October 2026, Planet expects approximately $101 million to $105 million in revenue, non-GAAP gross margin of approximately 56% to 58%, adjusted EBITDA loss of approximately ($6) to ($1) million, and capital expenditures between $30 million and $37 million.
  • For fiscal year 2027, its outlook calls for approximately $430 million to $441 million in revenue and adjusted EBITDA profit of approximately $3 million to $10 million, alongside capital expenditures between $100 million and $115 million.
  • The next releases will show how satellite handovers, the Berlin manufacturing expansion, and deployment of Tanager-2 and 18 SuperDove satellites translate into recognized revenue and free cash flow after capital spending.

Sources

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