Planet Labs PBC (PL): BCG Matrix [Dec-2025 Updated]

You're looking at Planet Labs PBC (PL) right now, and the picture is far more complex than just a growth stock; they're at a real pivot point where profitability meets massive future bets. We've mapped their portfolio using the BCG Matrix, and the story is clear: the core business is printing money, with 98% recurring Annual Contract Value and $54.3$ million in year-to-date Free Cash Flow, firmly placing established products like SkySat in the Cash Cow quadrant. Still, the real excitement-and risk-lies in the Stars, fueled by a 41% jump in Defense revenue and a $736.1$ million backlog, while the next-gen Pelican constellation demands significant Capex, making it a classic Question Mark. Dive in to see exactly where you should be focusing investment versus divesting from the Dogs across their entire Earth Observation portfolio.

Background of Planet Labs PBC (PL)

You're looking at Planet Labs PBC (PL) right as it hits a major inflection point, moving from consistent growth to demonstrating real operational leverage. Planet Labs PBC is a key player in the Earth observation market, which analysts peg at about USD 4.30 billion in 2025. They operate a fleet of over 200 satellites, giving them a unique capability for daily imaging of the Earth's surface. Their core business involves collecting, processing, and delivering this geospatial data, increasingly through AI-enabled solutions.

Financially, the company closed its fiscal year 2025 (which ended January 31, 2025) with record full-year revenue of $244.4 million, marking an 11% increase year-over-year. While they were still reporting an Adjusted EBITDA loss for the full year at ($10.6) million, the fourth quarter was a turning point: they posted their first-ever Adjusted EBITDA profit of $2.4 million. That quarter's revenue was $61.6 million, and the full-year gross margin landed at 57%.

The momentum definitely carried into the first half of fiscal year 2026. For the second quarter ending July 31, 2025, Planet Labs PBC delivered $73.4 million in revenue, a strong 20% jump compared to the same quarter last year. This performance was supported by significant wins, including a pivotal €240 million multi-year contract with the German government. The Defense and Intelligence sector was a major driver, accelerating revenue growth to 41% year-over-year in that quarter.

The operational improvements are stark when you look at profitability metrics. For Q2 FY2026, the company hit $6.4 million in Adjusted EBITDA profit, making it their third consecutive profitable quarter on that basis, and the Non-GAAP Gross Margin improved to 61%. Perhaps most telling for future stability, they generated $54.3 million in year-to-date free cash flow, positioning them to be free cash flow positive for the fiscal year ahead of schedule. This strong performance led them to boost their full fiscal year 2026 revenue guidance to a range of $281 million to $289 million.

Strategically, Planet Labs PBC is focusing on scaling its satellite services, highlighted by a $230 million agreement with JSAT for Pelican high-resolution satellites, and pushing AI-enabled solutions. They are building a massive backlog, which surged 245% year-over-year to $736.1 million by the end of Q2 2025, giving them strong visibility into future revenue streams. Still, they anticipate some margin pressure ahead, with the full fiscal year 2026 Non-GAAP Gross Margin projected to be between 55.0% and 57.0%. You've got a company that's successfully monetizing its unique daily data asset.

Planet Labs PBC (PL) - BCG Matrix: Stars

You're looking at the engine room of Planet Labs PBC's current growth, the segment where high market share meets a rapidly expanding market. These are the areas where the company is spending heavily to maintain its leadership position, which is exactly what a Star requires strategically. If you keep executing here, these units become the Cash Cows of tomorrow when the market growth inevitably cools down.

The Defense & Intelligence Sector is a prime example of this dynamic in action for Planet Labs PBC. For the second quarter of fiscal year 2026, revenue from this segment accelerated by a massive 41% year-over-year. This growth isn't just from existing services; it's fueled by securing pivotal, high-value government agreements, which is why the backlog figures are so telling about future performance.

The foundational daily Earth Observation (EO) data segment, anchored by the PlanetScope offering, maintains a commanding market share. This is the core product that feeds the high-growth government and enterprise solutions. The company's ability to secure multi-year, high-value contracts, like the renewal for PlanetScope data within the German government deal, confirms its leadership in providing foundational, high-frequency monitoring.

The sheer volume of future contracted work signals this high-growth trajectory clearly. The total company backlog surged by 245% year-over-year to reach $736.1 million at the end of Q2 FY2026. Even more indicative of locked-in future revenue are the Remaining Performance Obligations (RPOs), which jumped 516% year-over-year to $690.1 million. Honestly, that level of contracted future revenue provides incredible visibility into the next couple of fiscal years.

Here's a quick look at the key financial metrics from Q2 FY2026 that define this Star quadrant performance:

The investment required to maintain this Star status is evident in the strategic focus areas, which are designed to convert data volume into high-value recurring revenue streams. These are the areas where Planet Labs PBC is actively deploying capital to cement its lead.

• Defense & Intelligence Sector Revenue growth of 41% YoY in Q2 FY2026.
• Core Government Contracts driving a backlog surge to $736.1 million.
• Securing a €240 million multi-year satellite services collaboration with the German government.
• AI-Enabled Solutions, such as Maritime Domain Awareness (MDA), are the most mature AI offering, driving major deals with NATO and the U.S. Navy.
• Total Q2 FY2026 Revenue reached $73.4 million, a 20% year-over-year increase.

The company is actively investing in its next-generation capabilities, like launching two high-resolution Pelican satellites during the quarter, to ensure the data advantage remains sharp. This investment is necessary to keep the market share high while the market itself continues to grow, with the overall Earth data market projected to reach $5.9 billion by 2030. If Planet Labs PBC sustains this execution, these Stars will transition into the Cash Cows when the growth rate of government and defense spending eventually moderates.

Planet Labs PBC (PL) - BCG Matrix: Cash Cows

You're looking at the core engine of Planet Labs PBC, the segment that generates the consistent cash flow needed to fund the riskier, high-growth Stars and Question Marks. These Cash Cows operate in a mature part of the business, meaning market share is established, and the need for heavy promotional spending drops off. The foundation of this stability is evident in the Full Fiscal Year 2025 results, where the core business delivered a record revenue base of $244.4 million.

This predictability comes directly from the subscription nature of the business model. For the second quarter of fiscal year 2026, the Percent of Recurring Annual Contract Value (ACV) stood at a very strong 98%. That means nearly every dollar of contract value on the books is locked in for future periods, which is exactly what you want from a cash cow-minimal uncertainty about the next quarter's intake.

The ultimate proof of a Cash Cow is its ability to generate cash beyond its own upkeep. Planet Labs PBC demonstrated this clearly in the first half of fiscal year 2026, generating year-to-date Free Cash Flow (FCF) of $54.3 million as of the end of Q2 FY2026. This positive FCF, achieved over a year ahead of prior expectations, signals that the established operations are self-sustaining and actively funding the rest of the enterprise.

Here's a quick look at the financial performance supporting this cash-generating status from the most recent quarter, Q2 FY2026:

The SkySat High-Resolution Imagery service fits this quadrant well. It represents an established product line with a mature customer base that relies on its high-resolution tasking capabilities. While the newer Pelican constellation is designed to expand high-resolution capacity, the existing SkySat service provides consistent, high-margin revenue flow that requires lower incremental investment compared to developing a brand-new market offering. You want to maintain the efficiency here, perhaps investing just enough in supporting infrastructure to keep the margins high and the service reliable, effectively 'milking' the established revenue stream.

• Recurring ACV (Q2 FY2026): 98%
• FY 2025 Core Revenue Base: $244.4 million
• YTD FCF (Q2 FY2026): $54.3 million
• SkySat: Established, high-margin tasking revenue.

Finance: draft the maintenance CapEx budget for the existing constellation fleet by next Wednesday.

Planet Labs PBC (PL) - BCG Matrix: Dogs

You're looking at the parts of Planet Labs PBC that aren't pulling their weight in terms of market growth or share, the classic BCG Dogs. These units tie up capital without offering significant returns, and honestly, they are the first place you look when you need to free up resources for the Stars or Question Marks.

For Planet Labs PBC, the Dog quadrant is characterized by business lines operating in mature or shrinking sub-segments of the Earth Observation market, or legacy assets that are technologically obsolete relative to the current fleet. While the overall company is showing strong re-acceleration, with Q2 FY2026 revenue hitting $73.4 million (a 20% year-over-year increase) and achieving an Adjusted EBITDA profit of $6.4 million in that same quarter, these gains mask areas of stagnation or decline. The full-year Fiscal Year 2025 revenue was $244.4 million, up 11% year-over-year, but this masks the internal disparity.

The primary indicator of Dog-like performance comes from the commercial segment, which faced headwinds. Specifically, in the fourth quarter of 2025, the commercial sector saw revenue decline by more than 10% year-over-year. Furthermore, North America revenue was roughly flat year-over-year in the second quarter of fiscal year 2026. This contrasts sharply with the government sector strength, where Defence and Intelligence revenue grew over 30% year-over-year in Q2 FY2025, and Civil Government grew over 20% YoY in the same period.

Here are the specific areas fitting the Dog profile:

• Legacy Archive Data Sales: Low-growth, one-off sales of older, less-frequently updated imagery archives, being superseded by daily monitoring.
• Undifferentiated Professional Services: Non-core, low-margin consulting work not tied to the proprietary data or AI platform.
• Older Generation Dove Satellites: Constellation segments nearing end-of-life that require replacement, offering lower resolution than newer SuperDoves.
• Small, Non-Renewing Commercial Pilots: One-off, low-value commercial deals that do not convert to the high-retention recurring ACV model.

The shift in focus is clear: the company is pushing for high-retention recurring Annual Contract Value (ACV) models, evidenced by a Net Dollar Retention Rate of 106% in Q4 2025. This implies that deals failing to convert into this recurring structure, like the small, non-renewing pilots, are inherently low-share and low-growth by design.

Regarding the hardware, the older generation Dove satellites are being actively phased out. The original Dove constellation, which provided Red, Green, Blue, and Near-Infrared spectral bands, is being replaced by next-generation SuperDoves (with 8 bands) and the newer Pelican and Tanager spacecraft. While specific revenue from the legacy Dove segment isn't broken out, their replacement is a necessary capital expenditure, meaning they are consuming cash for decommissioning or replacement rather than generating significant net cash flow. The company reported Capital Expenditures of $49.6 million for the full year 2025, approximately 20% of revenue, which includes necessary constellation replenishment.

The financial profile of these Dog segments is one of low or negative growth, contrasting with the overall company's 11% FY2025 revenue growth. We can map the performance characteristics:

The strategy here is clear: avoid expensive turn-around plans. The focus should be on divestiture or minimal maintenance. The company's success is built on securing large, multi-year contracts, such as the $230 million commercial agreement with JSAT and the €240 million German government deal, which are clearly Stars or Cash Cows, not Dogs. Any resources tied up in services or older assets that don't feed into the high-retention model or the next-generation platform should be minimized. Finance: review the cost allocation for R&D and Sales & Marketing to ensure zero spend on non-core legacy support by Q1 2026.

Planet Labs PBC (PL) - BCG Matrix: Question Marks

You're looking at the business units that are burning cash now but hold the key to future dominance. These are the high-growth areas where Planet Labs PBC is trying to buy market share, but success isn't guaranteed yet. They consume capital to fuel expansion, and if they don't capture that market quickly, they risk becoming Dogs.

Pelican Next-Generation Constellation

The Pelican constellation represents the push for higher-resolution data, aiming for 30 cm-class resolution by 2026. This is a direct investment into a growing demand for sharper imagery. To build this out and secure market share against competitors, Planet Labs PBC is committing significant capital expenditure. The required Capital Expenditure (Capex) to build this out is estimated to be between $65 million and $75 million in FY2026. This heavy upfront spending is characteristic of a Question Mark, as the returns are deferred until the constellation is fully operational and capturing high-value contracts.

Key investment drivers for the Pelican fleet include:

• Building and launching the next-generation Pelican fleet.
• Integrating advanced technology like the NVIDIA GPU processor for AI on the edge.
• Launching additional Pelicans within the next year, joining the four already launched as of late 2025.

Tanager Hyperspectral Data

Tanager is Planet Labs PBC's specialized play into the environmental monitoring segment, specifically for methane and CO2 detection. This is a high-growth market driven by sustainability and regulatory needs. The first Tanager satellite has been operational for a year, and its data is already showing impact. For instance, the partner Carbon Mapper has leveraged Tanager-1's data to detect more than 5,500 methane and CO2 plumes from over 3,000 sources. While the initial data license agreement with Carbon Mapper is secured until 2030 (a multi-year commitment), the broader commercial revenue ramp-up for this specialized product remains nascent compared to the core imaging business. This unit requires continued investment in the full constellation build-out to realize its potential market share.

International Commercial Expansion

Planet Labs PBC is actively pursuing growth in new geographies and commercial verticals, which necessitates heavy Sales & Marketing (S&M) investment to gain traction. This contrasts with the current revenue mix, where government contracts are dominant. As of the second quarter of fiscal year 2026, only 23% of revenue came from commercial end markets. The strategy involves leveraging global partners for emerging vertical opportunities while the direct sales force focuses on core growth verticals. This investment phase is cash-intensive as it seeks to establish a foothold in these new areas, which is why it fits the Question Mark profile-high potential growth but currently low, hard-won market share.

New Satellite Services Contracts

The satellite services offering, exemplified by large, complex, multi-year deals, consumes significant near-term cash but promises long-term, recurring revenue. The landmark agreement with SKY Perfect JSAT is a prime example. This deal is valued at approximately $230 million, with revenue expected to be recognized over approximately seven years, and the ten Pelican satellites involved are slated to launch starting in 2027. Similarly, Planet Labs PBC secured a pivotal €240 million multi-year satellite services contract with Germany. While these deals significantly boost the backlog-which reached $736.1 million at the end of Q2 FY2026-the initial build phase is capital-intensive and carries lower margins initially compared to pure data subscriptions. This structure means high demand and high cash consumption without immediate, high-margin returns.

Here is a snapshot of the financial commitment and structure for these high-potential areas:

The financial reality is that these Question Marks are currently contributing to the cash burn, as Planet Labs PBC burned through more than $123 million in 2025. However, the structure of the satellite services contracts is designed to be positive for working capital, helping to fund the build-out of the next-generation fleets without solely relying on the balance sheet cash, which stood at approximately $271.5 million at the end of Q2 FY2026.