Planet Labs PBC (NYSE:PL) stock fell 15.09% (As on March 21, 11:25:26 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY25. In fiscal 2025, the company had introduced a new industry-aligned go-to-market structure and began to shift towards selling AI-enabled solutions. The company took a major step forward in the satellite services market and signed a $230 million contract with our long-term partner in Japan, JSAT. The company had launched over 70 satellites, including the first Tanager hyperspectral satellite and the second Pelican high resolution satellite, both of which are performing well in orbit. Percent of Recurring Annual Contract Value (ACV) for the fourth quarter was 97%. End of Period (EoP) Customer Count was 976 customers. Fourth quarter Non-GAAP Gross Margin was 65%, compared to 58% in the fourth quarter of fiscal year 2024. Fourth quarter net loss was ($35.2) million, compared to ($30.1) million in the fourth quarter of fiscal year 2024, which includes an approximate ($16.2) million loss from the change in fair value of warrant liabilities during the fourth quarter of fiscal 2025 related to stock price appreciation during the period. Fourth quarter Adjusted EBITDA profit was $2.4 million, compared to a ($9.8) million loss in the fourth quarter of fiscal year 2024. The company ended the year with $222.1 million in cash, cash equivalents and short-term investments.

Meanwhile, Planet has signed a $230 million multi-year commercial agreement with the US-subsidiary of JSAT Sky Perfect, Asia’s largest geostationary satellite operator. Under the contract, Planet will build and operate a constellation of ten low-Earth-orbit Pelican satellites for JSAT. The satellites are expected to launch beginning in 2027. Planet expects to recognize approximately $230 million of revenue over the build and operational service period of the satellites, which is estimated to be approximately seven years. In addition to providing capacity over JSAT’s area of interest, Planet expects to leverage the global capacity of the constellation to serve government and commercial customers around the world.

PL in the fourth quarter of FY25 has reported the adjusted earnings per share of $-0.080, missing the analysts’ estimates for the adjusted earnings per share of $-0.030. The company had reported the adjusted revenue growth of 5 percent to $61.55 million in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $62.2 million.

For the first quarter of fiscal year 2026, ending April 30, 2025, Planet expects revenue to be in the range of approximately $61 million to $63 million. For fiscal year 2026, ending January 31, 2026, Planet expects revenue to be in the range of approximately $260 million to $280 million. Capital Expenditures are expected to be in the range of approximately $50 million and $65 million for the year.