Planet Labs reported Q3 2026 subscription and services revenue growth of 33% year-over-year, driven by accelerating demand for its daily high-resolution Earth imagery. The company’s contracted backlog swelled 216% over the past 12 months to $734.5 million, reflecting the impact of newly signed multi-year agreements with defense, agriculture and infrastructure customers. This backlog represents nearly three years of forward-looking revenue under the current delivery cadence, providing strong visibility into recurring top-line performance.

Transitioning from a capital-intensive satellite build cycle, Planet Labs has shifted to a satellite services model that outsources hardware investment and focuses on data-as-a-service contracts. Under this approach, maintenance and replenishment costs are borne by manufacturing partners, trimming capital expenditures by over 40% compared to the prior fleet roll-out. As a result, gross margins expanded by 550 basis points year-over-year to 48%, underscoring the improved capital efficiency of its ground-station network and imagery-processing infrastructure.

For the fourth consecutive quarter, Planet Labs delivered positive adjusted EBITDA, turning an operating loss in Q3 2025 into a $6.7 million profit in Q3 2026. Management reiterated guidance for positive free cash flow in fiscal 2026/27, backed by disciplined working-capital management and deferred revenue recognition from long-term contracts. This profitability milestone materially reduces equity dilution risk and positions the company to allocate future cash flow toward strategic tuck-in acquisitions or accelerated R&D investments.