EPISODE · Jun 5, 2026 · 10 MIN
PL Stock: Revenue BEAT But EPS Guide CUT Q3 FY2026
from Charged Alpha Stock Encyclopedia · host Colton Thomas
Planet Labs PBC Q1 CY2026 earnings breakdown - conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. THE CALL: HOLD (3/5 conviction, STRONG) - CURRENT @ $33.31 - HOLD - BUY below $28.31 with $23.32 stop - AVOID above $44.97 TRIGGER: FY27 EBITDA-positive milestone delivered on a quarterly basis; NATO and Five Eyes defense contracts continue to expand; gross margin holds above 53 percent through the constellation refresh WINDOW: Through Q4 FY27 earnings (March 2027) TRACKER: chargedalpha.com WALL STREET CONSENSUS - Ratings: 4 Strong Buy / 8 Buy / 6 Hold / 0 Sell / 0 Strong Sell - BUY - Median 12-month price target: $48.00 (range $35 - $65) - Charged Alpha vs consensus: MORE CAUTIOUS THESIS Planet Labs is the largest commercial earth observation satellite operator with a constellation of more than 200 satellites delivering daily global imaging. The Defense and Intelligence pivot since 2024 has transformed the unit economics -- defense contracts are larger, longer duration, and higher margin than commercial deals. Bull lever: Revenue beat of 2.3 percent with 42 percent year over year growth, the FY27 guide raised to 433 million midpoint, and the first ever full-year positive adjusted EBITDA and free cash flow formally guided. Eight straight quarters of sequential revenue growth. Key risk: Adjusted operating margin of negative 19.6 percent remains deeply unprofitable. The market punished today's print with a 23 percent drop because expectations were higher than the margin progress delivered. Any FY27 quarterly miss on EBITDA breakeven risks another severe re-rating. QUALITY CHECK - Management quality grade: B+ (CEO Will Marshall is a co-founder, a former NASA scientist, and has run Planet since the founding in 2010. He has guided the company from a research project to a public company with a 200-plus satellite constellation. The pivot to defense and intelligence in 2023-2024 has been well-executed. The main critique is share dilution -- the diluted share count has grown from 290 million to 345 million over two years.) - Earnings quality grade: B- (The gap between GAAP EPS of negative 40 cents and adjusted EPS of negative 3 cents is large -- roughly 37 cents per share of stock-based compensation, depreciation on the satellite fleet, and one-time items. SBC of 16.5 million per quarter is 17 percent of revenue -- high but in line with growth-stage defense tech. The non-GAAP figures are the more relevant signal here but investors should not discount the GAAP cash burn.) CHAPTERS 0:00 Hook 0:14 S0b_Year 1:05 The Print 1:55 S1b_BeatDecomp 2:20 The Trend 4:09 The Segments 4:55 The FCF Bridge 5:20 S4b_MarginQual 6:06 Guidance & The Narrative Diff 6:35 S5b_Catalyst 6:59 Peer Dot-Plot 7:34 S6b_Valuation 8:03 Management & Earnings Quality 8:28 S8a_Call 8:56 S8b_Call KEY METRICS - Q1 CY2026 - Revenue: $0.09B (YoY +42.1%, beat est by +2.3%) - EPS: $-0.03 (vs $-0.04 est, beat +25.0%) - Operating margin: -37.1% - Free cash flow: $-0.00B (-2.0% margin) NARRATIVE DIFF - what changed in management tone - Prior call: "On the Q4 FY26 call, CEO Will Marshall said Planet expected to reach positive adjusted EBITDA for full-year FY27 and was tracking to positive free cash flow before the end of FY27." - This call: "Today we are formally guiding to the first full year of positive adjusted EBITDA and positive free cash flow in Planet history. That is the proof point we have been working toward since we went public in 2021." - Tone shift: Planet beat on every line and announced the first profitability milestone in its history -- and the stock crashed 23 percent. The market reaction tells you everything: investors priced in a beat-and-raise plus margin acceleration. Planet delivered the beat-and-raise but margin progress was modest. Adj op margin of -19.6% is still deeply unprofitable. DATA SOURCES - FMP (financialmodelingprep.com) - Planet Labs PBC Q1 CY2026 press release + earnings call DISCLAIMER This is for informational and educational purposes only. Not financial advice. Charged Alpha does not have a position in PL. Do your own research before any investment decision. #PL #PlanetLabsPBC #earnings #investing #stocks #ChargedAlpha
What this episode covers
Planet Labs PBC Q1 CY2026 earnings breakdown - conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. THE CALL: HOLD (3/5 conviction, STRONG) - CURRENT @ $33.31 - HOLD - BUY below $28.31 with $23.32 stop - AVOID above $44.97 TRIGGER: FY27 EBITDA-positive milestone delivered on a quarterly basis; NATO and Five Eyes defense contracts continue to expand; gross margin holds above 53 percent through the constellation refresh WINDOW: Through Q4 FY27 earnings (March 2027) TRACKER: chargedalpha.com WALL STREET CONSENSUS - Ratings: 4 Strong Buy / 8 Buy / 6 Hold / 0 Sell / 0 Strong Sell - BUY - Median 12-month price target: $48.00 (range $35 - $65) - Charged Alpha vs consensus: MORE CAUTIOUS THESIS Planet Labs is the largest commercial earth observation satellite operator with a constellation of more than 200 satellites delivering daily global imaging. The Defense and Intelligence pivot since 2024 has transformed the unit economics -- defense contracts are larger, longer duration, and higher margin than commercial deals. Bull lever: Revenue beat of 2.3 percent with 42 percent year over year growth, the FY27 guide raised to 433 million midpoint, and the first ever full-year positive adjusted EBITDA and free cash flow formally guided. Eight straight quarters of sequential revenue growth. Key risk: Adjusted operating margin of negative 19.6 percent remains deeply unprofitable. The market punished today's print with a 23 percent drop because expectations were higher than the margin progress delivered. Any FY27 quarterly miss on EBITDA breakeven risks another severe re-rating. QUALITY CHECK - Management quality grade: B+ (CEO Will Marshall is a co-founder, a former NASA scientist, and has run Planet since the founding in 2010. He has guided the company from a research project to a public company with a 200-plus satellite constellation. The pivot to defense and intelligence in 2023-2024 has been well-executed. The main critique is share dilution -- the diluted share count has grown from 290 million to 345 million over two years.) - Earnings quality grade: B- (The gap between GAAP EPS of negative 40 cents and adjusted EPS of negative 3 cents is large -- roughly 37 cents per share of stock-based compensation, depreciation on the satellite fleet, and one-time items. SBC of 16.5 million per quarter is 17 percent of revenue -- high but in line with growth-stage defense tech. The non-GAAP figures are the more relevant signal here but investors should not discount the GAAP cash burn.) CHAPTERS 0:00 Hook 0:14 S0b_Year 1:05 The Print 1:55 S1b_BeatDecomp 2:20 The Trend 4:09 The Segments 4:55 The FCF Bridge 5:20 S4b_MarginQual 6:06 Guidance & The Narrative Diff 6:35 S5b_Catalyst 6:59 Peer Dot-Plot 7:34 S6b_Valuation 8:03 Management & Earnings Quality 8:28 S8a_Call 8:56 S8b_Call KEY METRICS - Q1 CY2026 - Revenue: $0.09B (YoY +42.1%, beat est by +2.3%) - EPS: $-0.03 (vs $-0.04 est, beat +25.0%) - Operating margin: -37.1% - Free cash flow: $-0.00B (-2.0% margin) NARRATIVE DIFF - what changed in management tone - Prior call: "On the Q4 FY26 call, CEO Will Marshall said Planet expected to reach positive adjusted EBITDA for full-year FY27 and was tracking to positive free cash flow before the end of FY27." - This call: "Today we are formally guiding to the first full year of positive adjusted EBITDA and positive free cash flow in Planet history. That is the proof point we have been working toward since we went public in 2021." - Tone shift: Planet beat on every line and announced the first profitability milestone in its history -- and the stock crashed 23 percent. The market reaction tells you everything: investors priced in a beat-and-raise plus margin acceleration. Planet delivered the beat-and-raise but margin progress was modest. Adj op margin of -19.6% is still deeply unprofitable. DATA SOURCES - FMP (financialmodelingprep.com) - Planet Labs PBC
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PL Stock: Revenue BEAT But EPS Guide CUT Q3 FY2026
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