Planet Labs PBC (NYSE:PL) stock rallies 31.04% (As on December 11, 11:33:02 AM UTC-4, Source: Google Finance) after the company reported better-than-expected third quarter results. The company reported its fourth consecutive quarter of adjusted EBITDA profitability at $5.6 million, compared to a loss of $0.2 million in the same period last year. Remaining performance obligations soared 361% YoY to $672 million, while backlog grew 216% to $734 million, indicating strong future revenue potential. Planet Labs strengthened its balance sheet considerably, ending the quarter with $677.3 million in cash, cash equivalents and short-term investments, up 180% from the previous year. The company successfully raised $460 million in convertible debt during the period. Backlog was $734.5 million at the end of the quarter, representing a year-over-year increase of 216%.

Moreover, in the defense and intelligence sector, where Q3 revenue accelerated to over 70% growth year on year, up over 15% quarter over quarter, all driven by strong performance in the data subscription and solutions businesses, as well as the satellite services business. As previously announced, the company awarded a prime contract under the LUNO B program by the National Geospatial-Intelligence Agency for a $12.8 million initial award with partner SynMax. The award is for advanced analytics for maritime operations and reconnaissance. The National Reconnaissance Office renewed its baseline contract for PlanetScope broad area monitoring data under the Electro-Optical Commercial Layer program for $13.2 million through June 2026. For the high-resolution component of the EOCL relationship, PL have been awarded a framework contract, which the NRO can utilize to order high-resolution Pelican imagery.

PL in the third quarter of FY25 has reported the break even earnings per share, beating the analysts’ estimates for the adjusted loss per share of 3 cents. The company had reported the adjusted revenue growth of 33 percent to $81 million in the third quarter of FY25, beating the analysts’ estimates for revenue of $72.18 million. This is fueled by significant contract wins with government agencies including the National Geospatial-Intelligence Agency and NATO. The company’s gross margin was 57%, compared to 61% in the third quarter of fiscal year 2025, while non-GAAP gross margin was 60%, compared to 64% in the same period last year.

For the fourth quarter, Planet expects revenue between $76 million and $80 million, with full fiscal year 2026 revenue projected to be $297-301 million. The company also successfully launched two high-resolution Pelican satellites and 36 SuperDove satellites after the quarter ended, further expanding its imaging capabilities.