Planet Labs Stock Skyrockets in 2025: Record Highs, Big Contracts, and Rivalry in the Space Race

Space stock on fire: Planet Labs PBC (NYSE: PL) has seen its shares surge nearly 270% in 2025, hitting all-time highs well above its previous peak from 2021 ^[1]. The stock rocketed 83% in September alone, driven by explosive earnings and upbeat forecasts ^[2].
Blowout earnings: The Earth-imaging company posted record revenue of $73.4 million in Q2 FY2026 (summer 2025) – up 20% year-over-year and beating expectations ^[3] ^[4]. Backlog and bookings exploded (remaining performance obligations up 516% to $690 million, backlog +245% to $736 million) as Planet locked in major multi-year deals ^[5] ^[6].
Turning the financial corner: For the first time, Planet generated positive free cash flow (≈$46 million) and achieved an adjusted EBITDA profit in Q2 ^[7]. Net losses are narrowing, and gross margins topped 60% on a non-GAAP basis ^[8], showing the path toward profitability even as the company continues to invest in growth.
Upbeat guidance ahead: Management raised full-year 2025 (FY2026) revenue guidance to $281–$289 million, citing robust demand ^[9]. Third-quarter revenue is expected to jump to ~$72 million ^[10]. While ramping up new satellites and contracts may trim margins in the near term, leadership is confident that strong backlog gives “good visibility into FY’27 and beyond” ^[11].
Major contracts & expansion: Planet’s growth is underpinned by big-ticket deals – from a €240 million satellite services contract funded by the German government to new agreements with NATO and the U.S. Department of Defense ^[12] ^[13]. The company is rapidly scaling its satellite fleet, shipping new high-resolution Pelican satellites and dozens of Dove minisats for upcoming SpaceX launches, and even opening a new manufacturing facility in Berlin to meet European demand ^[14] ^[15].
Analysts divided on valuation: The stock’s meteoric rise has drawn both praise and caution. Wedbush recently hiked its price target from $11 to $17 and maintained an “Outperform” rating as Planet’s outlook strengthened ^[16]. In total, 9 out of 10 covering analysts rate PL a Buy, yet the consensus 12-month price target is only ~$8.50 ^[17] ^[18] – barely half the current trading price, reflecting concern that shares may have sprinted “ahead of near-term fundamentals” after a 460% year-on-year rally ^[19]. Even Goldman Sachs, which initiated coverage in mid-2025, started Planet at a neutral rating with a modest $4.60 target ^[20], before the latest results changed the narrative.
Rivalry in orbital imagery: Planet Labs isn’t the only space-tech player seeing green in 2025. BlackSky Technology (NYSE: BKSY) – a smaller competitor focused on real-time satellite imagery for defense – saw its stock skyrocket over 100% in a matter of weeks during the summer rally ^[21]. BlackSky has landed its own government deals and expanded its constellation, fueling investor excitement ^[22]. However, its ~$28 million quarterly revenue is barely one-third of Planet’s, and it remains deeply in the red (projecting –$0.40 EPS for the quarter) ^[23]. Spire Global (NYSE: SPIR), which provides weather and ship-tracking data from orbit, also got a boost – its shares climbed from penny-stock levels after insider buying and multi-million-dollar contract wins ^[24]. Spire’s Q2 sales around $18–19 million are smaller than BlackSky’s ^[25], and its growth has been slower (flat to down without one-off items ^[26]). In short, Planet leads the pack on scale – with roughly 2–3× the annual revenue of BlackSky or Spire – and now boasts a heftier market cap (~$4.5 billion) to match ^[27] ^[28].
Industry tailwinds: The satellite imagery and Earth observation sector is booming amid surging demand from both government and commercial customers. Geopolitical conflicts and security needs (e.g. the war in Ukraine) have spotlighted the value of real-time overhead imagery for militaries and intelligence – Planet’s data is increasingly used to “monitor sites of strategic interest for critical changes and threats,” as one Pentagon pilot program demonstrated ^[29]. Civil agencies and NGOs are leveraging satellites for climate and disaster response as well. On the commercial side, industries like agriculture and insurance are integrating geospatial analytics into their workflows – e.g. Planet’s partnership with Swiss Re to develop drought insurance solutions using crop health indices from space ^[30]. Annual contract value is 98% recurring for Planet ^[31], as the industry shifts to a subscription data model. Overall, projections see the Earth observation market growing sharply through the decade, and investors are once again piling into “New Space” stocks after a harsh 2022–23 bear market. (Notably, traditional satellite giant Maxar was taken private in 2023 via a $6.4 billion buyout ^[32], underscoring the strategic value of this tech.)
Risks and challenges: Despite the optimism, Planet Labs and its peers face significant challenges. High capital expenditures are needed to design, launch, and maintain ever-more capable satellite fleets ^[33] ^[34]. Planet is accelerating spending on next-gen satellites (it boosted capex guidance by ~25% for the year) ^[35] and expanding manufacturing – moves critical to staying ahead, but which can pressure margins in the short run. The company’s backlog of ~$736 million extends into the coming years, yet execution is key: Planet must successfully deliver on these contracts (e.g. building out a custom Pelican constellation for a $230 million Asia-Pacific client ^[36]), convert its pipeline into sustainable revenue, and continue improving efficiency. It’s still not GAAP-profitable, and while cash burn has turned to cash generation this year, any missteps or contract delays could set it back. Competition is another factor – rivals like BlackSky are pitching higher-resolution or timelier imagery in niche areas, and tech titans or defense contractors could always increase their presence in this domain. Investors should also note that stock valuations are now rich; Planet trades at a lofty multiple of sales after its run-up, so future growth needs to live up to the hype to justify the price.
The road ahead:Financial experts remain cautiously optimistic about Planet’s long-term story. Many see it as a unique “pick-and-shovel” play on the space economy, with its daily data becoming essential infrastructure for decision-making on Earth ^[37]. The consensus expects Planet’s revenues to continue climbing ~15–20% annually in coming years ^[38], and for earnings to swing from a ~$0.37/share loss in 2025 to modest profits by 2027–28 as scale kicks in ^[39] ^[40]. In fact, SimplyWall.St’s models project $409 million in revenue and ~$29 million in net income by 2028 if Planet can sustain high-teens growth ^[41]. Bulls argue the company’s massive backlog and first-mover advantage in daily imaging set it up for years of compounding subscription revenue. Bears counter that the current stock price ( ~$15 ) already bakes in a lot of that growth, with one estimate of fair value around $9 (implying 38% downside) given the execution risks ^[42] ^[43].

Planet Labs: 2025 Performance and Stock Outlook

Planet Labs has delivered a thrilling ride for investors in 2025, transforming from a beaten-down SPAC alum into one of the year’s hottest tech stocks. After starting the year in the mid-single digits, PL shares took off on a steep upward trajectory, fueled by improving financial results and a string of high-profile deals. By early October, the stock had more than tripled year-to-date, handily outperforming the broader market. In fact, Planet’s share price soared so much that it blew past its prior record high of $12.15 (set shortly after its 2021 IPO via SPAC) and kept climbing into the mid-teens ^[44].

Several key catalysts underpinned this rally. September 2025 was a game-changer – the stock jumped over 80% in that single month ^[45] after Planet released stellar quarterly earnings and raised its outlook, signaling that growth is accelerating. The September surge also coincided with a wave of Wall Street upgrades and bullish buzz around the name. To put the move in perspective, Planet Labs’ stock was roughly $4–$5 in early 2025; by October it hit about $15 ^[46] ^[47], marking a ~460% increase from a year prior ^[48]. Such explosive momentum naturally grabbed headlines – and prompted the question of whether this satellite imagery pioneer is a long-term goldmine or an overhyped rocket due for a pullback.

Planet’s 2025 stock performance in numbers: As of Q4 2025, Planet Labs is up about 267% year-to-date ^[49], vastly outperforming major indices and even most tech peers. Over a 12-month span, the stock has nearly quintupled ( +460% ) ^[50]. By contrast, the S&P 500 is up only modestly in 2025, and even many space-sector stocks are lagging Planet’s trajectory. This outperformance reflects both the company’s own achievements and a renewed investor appetite for space technology plays this year. It’s worth noting that Planet’s journey hasn’t been straight up: the stock spiked to ~$6.70 in Feb 2025 then pulled back to ~$3.80 by May ^[51] after a disappointing late-2024 earnings report, illustrating the volatility in this young company. But since the summer, each positive news cycle has propelled PL higher, with the stock repeatedly breaking new highs on heavy trading volume as more investors jumped on board.

Looking ahead, the big question is sustainability. At ~$15 a share, Planet’s market capitalization is around $4.5 billion ^[52] – a lofty valuation for a firm with ~$280 million in annual revenue. The stock now trades at a rich price-to-sales multiple relative to its space-sector peers. This means a lot of future growth is already “priced in,” and any stumble or growth slowdown could trigger a sharp correction. As we’ll explore below, Wall Street analysts remain positive on Planet’s fundamentals but have mixed feelings on its current price level. Long-term bulls see Planet as a potential dominant platform for Earth data, while skeptics warn that near-term fundamentals (like earnings and cash flow) don’t yet justify the euphoric share price.

For current and prospective investors, 2025 has been a breakout year for Planet Labs, but the next chapters will hinge on execution – turning backlog into revenue, managing costs, and eventually delivering profits that meet the high expectations now baked into the stock.

Financial Highlights: Strong Earnings Fuel Optimism

Planet Labs’ financial results in 2025 have significantly bolstered the bull case. The company, which operates on a fiscal year ending January 31, delivered better-than-expected numbers and notable improvements on several key metrics in recent quarters.

The standout was Planet’s Second Quarter FY2026 (covering roughly May–July 2025) earnings report, released in early September. By all accounts, it was a blowout quarter:

Record revenue: Q2 revenue came in at $73.4 million, a company record and an increase of +20% year-over-year ^[53] ^[54]. This not only marked Planet’s fastest growth in recent years but also beat analysts’ consensus (around $66 million) by a wide margin ^[55]. In fact, revenue exceeded the high end of management’s own guidance for the quarter ^[56], indicating that demand is ramping up faster than anticipated.
Guidance raise: On the back of that strong quarter, Planet’s management raised their outlook for the full year. They now project FY2026 (calendar 2025) revenue of $281–$289 million, up from prior forecasts and roughly 15% higher than last year ^[57]. They also guided for Q3 FY2026 (Aug–Oct 2025) revenue of $71–$74 million ^[58], which implies ~25% growth year-on-year for that quarter. The bullish guidance was a key reason analysts and investors grew more optimistic – it suggests Planet’s growth is accelerating as large new contracts start contributing.
Backlog boom: Perhaps the most eye-popping metrics were Planet’s remaining performance obligations (RPOs) and backlog (the sum of RPO plus other contracted bookings). At the end of Q2, RPOs reached $690 million (up +516% year-over-year), and total backlog hit $736 million (+245% YoY) ^[59]. In simple terms, Planet’s pipeline of contracted future revenue has ballooned to nearly three-quarters of a billion dollars – over 2.5 times its entire revenue last year. This surge reflects the string of multi-year deals Planet signed in 2025 (detailed in the next section). For investors, it provides greater visibility into future growth. The CFO noted that the backlog provides “good visibility into FY’27 and beyond,” implying that a large portion of expected revenue for the next 2+ years is already under contract ^[60]. Of course, the company still has to execute and deliver on those contracts, but the backlog trend is decidedly positive.
Improving margins and cash flow: In Q2, Planet achieved a 58% gross margin (61% on a non-GAAP basis) ^[61], up from 53% a year prior. High gross margins are important in the “satellite-as-a-service” model, as they show the scalability of selling the same data to many customers. Planet’s margin expansion suggests it’s benefiting from greater scale and subscription revenues. More dramatically, Planet’s adjusted EBITDA turned positive – about $6.4 million profit vs a $(4.4) million loss in the year-ago quarter ^[62]. This indicates the core business is nearing breakeven on an operational basis. Even on a cash basis, Planet flipped to positive free cash flow in the first half of 2025. The company generated $85 million in operating cash in the first six months and $54 million in free cash flow after capex ^[63] ^[64]. For a young growth company, positive free cash flow two quarters in a row is a remarkable milestone – it means Planet isn’t currently needing to raise cash to fund its growth; rather it’s self-funding (a stark turnaround from burning $100M+ annually not long ago). Management highlighted this achievement, with CFO Ashley Johnson noting it was their second consecutive quarter of positive free cash flow and third of adjusted EBITDA profitability ^[65].
Narrowing losses: On a GAAP basis, Planet still had a net loss of about $22.6 million for Q2, but that was much smaller than the $38.7 million loss a year prior ^[66]. GAAP EPS was –$0.07 (vs –$0.10 last year), missing Wall Street’s EPS forecast by a few cents ^[67]. However, excluding stock-based comp and one-time items, non-GAAP net loss per share improved to –$0.03 (from –$0.06) ^[68], showing a clear trend toward break-even. Analysts expect Planet will still post a full-year net loss around $0.35–$0.40 per share for 2025 ^[69], but if current momentum holds, the company could approach profitability in the next couple of years.

All told, Planet’s 2025 financial performance has been a story of strong top-line growth translating into improved bottom-line metrics. The company is delivering on its plan to grow recurring revenues, while also managing costs such that each incremental dollar of revenue contributes more to the bottom line. The stock’s surge is largely justified by these tangible improvements – investors are no longer just betting on a cool space concept, they’re seeing real revenue traction and a credible path to profits.

That said, some caution flags emerged for the coming quarters. In its guidance, Planet noted that Q3 gross margins will likely dip to ~55–56% ^[70] (from 61% in Q2) as the company incurs higher costs to ramp up new contracts and satellite capacity. They also guided that adjusted EBITDA might be around break-even or slightly negative in Q3 ^[71], meaning the profitability might temporarily pause as investments catch up with revenue. Additionally, Planet raised its expected capital expenditures for the full year by ~25% at the top end ^[72] – reflecting more spending on building satellites and infrastructure (like the new Berlin facility). These points show that while Planet is progressing financially, it’s not a linear straight line to profits; the company will continue to spend heavily to capture its opportunities. Investors will need to watch how efficiently Planet can convert that backlog into revenue without overspending.

In summary, Planet Labs’ 2025 financials have instilled confidence that the business model works at scale. Rapid revenue growth, massive backlog accumulation, improving margins, and newfound cash generation all paint the picture of a company maturing out of its “cash-burning startup” phase into a scalable enterprise. These results underpin the bullish outlook – but the onus is now on Planet to keep executing and hit those rosy targets it has set for itself.

Recent News: Contracts, Launches, and Industry Buzz

Beyond the raw numbers, Planet Labs’ narrative in 2025 has been defined by a series of headline-grabbing developments. The company has aggressively pursued new business and technological advancements, strengthening its position in the Earth observation arena. Here are some of the key recent news and milestones for Planet Labs:

1. Big Government Contracts – NATO, Germany, and DoD: Perhaps the most pivotal news driving Planet’s backlog jump was the announcement of several major multi-year contracts with government entities. In July 2025, Planet revealed it had secured a €240 million ($260M) agreement funded by the German government ^[73]. This deal, one of Planet’s largest ever, is essentially a satellite services contract in support of European defense and security. Though details were limited (some are likely classified), it’s known that the contract involves Planet providing imagery capabilities that support NATO and European allies. Around the same time, Planet also announced a contract with NATO itself ^[74] (likely related, as Germany championed a NATO satellite initiative), and an expanded partnership with the U.S. Department of Defense ^[75] ^[76]. For example, the Defense Innovation Unit (a DoD arm) exercised an option to expand its pilot program with Planet, using Planet’s data for “vital indications and warnings” intelligence ^[77]. Additionally, the U.S. National Reconnaissance Office (NRO) – which manages spy satellite purchases – broadened its contract under the Electro-Optical Commercial Layer program to tap more of Planet’s daily monitoring and maritime data ^[78]. These wins underscore how demand from the defense and intelligence community has ramped up, no doubt influenced by global geopolitical tensions. Planet’s CEO Will Marshall highlighted that these pivotal deals “underscore the critical role Planet plays in addressing global challenges and supporting peace and security.” ^[79] In short, Planet is becoming a go-to provider for allied governments seeking unclassified, shareable satellite imagery to complement traditional spy satellites.

2. Expansion in Europe – New Berlin Factory: To support its growth, Planet announced in late 2025 that it is expanding its satellite manufacturing footprint by opening a new facility in Berlin, Germany ^[80]. This move is strategic for a few reasons. First, it places production closer to major European clients (like that huge German contract), which may have been a stipulation or at least a goodwill gesture to ensure tech transfer and local economic benefits. Second, it diversifies Planet’s manufacturing beyond its San Francisco base, potentially speeding up the production of satellites. The Berlin factory will focus on building Planet’s latest generation “Pelican” satellites (more on those next) and other hardware, boosting capacity. This follows Planet’s acquisition in 2022 of a German aerospace firm (Pelican’s development team originated there), so it leverages local expertise. The announcement of the Berlin plant came alongside news of those big European deals, signaling Planet’s commitment to invest where its customers are and scale up to meet “growing European demand” ^[81].

3. New Satellites Shipped & Upcoming Launch: Technologically, Planet has been upgrading its constellation. In October 2025, the company revealed it had shipped two brand-new Pelican satellites (Pelican-5 and Pelican-6) along with 36 SuperDove cubesats to the launch site at Vandenberg Space Force Base ^[82]. These satellites are slated to launch on SpaceX’s Transporter-15 mission (part of the rideshare program for small satellites) in an upcoming Falcon 9 launch by November ^[83]. The Pelican satellites are Planet’s next-gen high-resolution fleet: they are designed to eventually provide up to 30 cm per pixel imagery ^[84] (versus ~50 cm currently), putting their image detail on par with the best commercial imagery from legacy providers. Pelicans also can revisit targets more frequently. Planet has already launched a few Pelicans (Pelican-1 through 4 earlier in 2023–24), and the new ones will join them, expanding capacity. Meanwhile, the 36 SuperDoves are refreshes of Planet’s bread-and-butter daily monitoring constellation (these shoebox-sized satellites take medium-res images of the entire Earth landmass every day). By continuously replenishing Doves, Planet maintains the quality of its daily PlanetScope imagery. CEO Will Marshall, in a press release, said these satellite deployments are crucial to meeting customer needs: “With this latest shipment of Pelicans and SuperDoves, as well as our ramped-up manufacturing, we’re not just putting more satellites in orbit, we’re providing customers consistent and timely information they need.” ^[85] That quote captures Planet’s push to shorten revisit times and deliver data faster – a selling point particularly for defense and disaster response uses.

4. Pelican Constellation Deal (Asia-Pacific): Early in 2025, Planet disclosed a $230 million contract to build and launch an entire Pelican satellite constellation for a customer in Asia-Pacific ^[86]. This was later revealed to be for JSAT, a major Japanese satellite operator ^[87]. The deal was noteworthy as it represents Planet acting not just as a data provider, but also effectively a satellite mission contractor – building a bespoke fleet for a client. JSAT and its government partners likely want their own dedicated Earth observation capacity (sovereignty in satellite data), and Planet’s platform made it feasible. This contract likely accounts for a chunk of the backlog and will roll out over a few years. It signals a potentially lucrative new business line for Planet: selling “constellation as a service.” CEO Marshall noted many countries want “dedicated capabilities” for geospatial intelligence in light of geopolitical shifts ^[88], implying Planet could replicate this model elsewhere.

5. Other Commercial Wins: On the private sector front, Planet has continued to expand its enterprise customer base. A notable example in 2025 was Bayer AG, the global agriculture giant, which expanded its partnership with Planet ^[89]. Bayer uses Planet’s satellite imagery and analytics to inform decisions in its crop science division – basically leveraging daily imagery to monitor crop conditions and improve agricultural outcomes. Similarly, insurance companies like Swiss Re have been using Planet’s data for parametric insurance products (e.g., drought insurance payouts triggered by vegetation index data) ^[90]. These partnerships illustrate how recurring commercial use-cases are developing beyond the defense realm. Planet also signed deals with ag-tech firms (like Farmdar, which is using Planet’s archive to build AI models for crop detection) ^[91] and government agencies for environmental monitoring (e.g., a multi-year renewal with the UK Rural Payments Agency for nationwide land management imaging) ^[92].

6. Industry Recognition & Usage: Planet’s role in current events has kept it in the news. For instance, throughout the Russia-Ukraine conflict, Planet’s imagery has frequently appeared in media and intelligence reports (monitoring troop movements, damage, etc.). While not a single “contract” news item, this prominence has reinforced Planet’s brand as the “eyes of the world” from space, likely contributing to interest from investors who see it as an indispensable resource. Additionally, Planet has been an active participant in climate and sustainability initiatives – it provided data for COP climate summit reports, wildfires mapping, and other humanitarian projects – bolstering its image as a “public benefit corporation” (PBC) that balances profit with purpose.

In summary, Planet Labs’ recent news flow paints a picture of a company firing on all cylinders: winning marquee deals across government and commercial sectors, scaling up its technology and capacity, and embedding itself deeper into the fabric of global security and industry operations. Each contract win not only adds to financial results but also tends to spawn new use cases and partnerships, creating a network effect around Planet’s platform. This momentum in the field has provided a powerful tailwind for the stock. It also, however, raises the stakes – with big contracts come big responsibilities. Investors will be watching closely to ensure Planet hits delivery milestones for things like the German/NATO project and the JSAT Pelican constellation. So far, 2025’s developments have been highly encouraging, and they set the stage for what could be an even more consequential 2026 as these projects come to fruition.

Competitive Landscape: Planet vs. Other Space Imaging Stocks

Planet Labs operates in a niche yet increasingly crowded sector: satellite-based Earth observation and geospatial analytics. It’s helpful to compare Planet with some of its publicly traded peers in the “New Space” domain to understand the competitive dynamics and relative investment cases. The two companies most often mentioned alongside Planet are BlackSky Technology and Spire Global, which, like Planet, went public via SPAC mergers in the 2021–2022 timeframe and are focused on satellite data (albeit with different emphases). There are also larger, more established players (like Maxar Technologies – now private – and Airbus’s intelligence unit) and emerging startups, but for this report we’ll focus on the publicly listed comparables.

BlackSky Technology (NYSE: BKSY): BlackSky is a U.S.-based company that operates a small constellation of high-resolution imaging satellites (currently around 14 satellites). BlackSky’s specialty is rapid-revisit, high-res imagery – they tout the ability to monitor sites on an hourly basis when needed, which is valued for defense and intelligence missions (similar target market as Planet’s high-res offerings). BlackSky’s sensors have ~1-meter resolution (with plans to improve), and they combine imagery with a software platform for real-time alerts.

Stock performance 2025: BlackSky’s stock struggled in 2022–23 but came to life in 2025, seemingly in sympathy with Planet’s resurgence. In fact, in the month of August–September 2025, BKSY stock skyrocketed roughly +125% at one point ^[93]. It jumped from around $9 in midsummer to over $20 by mid-September ^[94]. (Note: BlackSky did a reverse stock split in early 2025 to boost its share price, which is why the absolute numbers are higher now; the percentage gain is the key point). The rally was somewhat puzzling because there was no single huge news event; rather it rode the wave of investor enthusiasm for space/defense names and possibly takeover speculation. BlackSky’s one notable announcement was a modest contract for satellite launches and some insider buying, but nothing on the scale of Planet’s wins. By late September, BlackSky traded around the high-teens per share. Its market cap, though, remained much smaller than Planet’s (roughly $0.7–$1 billion, depending on the price).
Financials: BlackSky’s revenue is growing, but from a smaller base. In Q2 2025, BlackSky had revenue of about $19 million (down slightly YoY if excluding one-time items) and full-year revenue is guided in the ~$80–$90 million range – roughly one-third of Planet’s size ^[95]. Interestingly, BlackSky’s growth in early 2025 outpaced Planet’s during that period: for the Jan–March quarter, BlackSky posted a 22% revenue increase YoY ^[96], versus Planet’s ~5% growth in the same quarter (Planet had a weak Q4 FY25). However, BlackSky has not demonstrated the same backlog build or cash-flow improvement as Planet. It remains deeply unprofitable, with heavy losses (expected around –$1.50 EPS for 2025, pre-split basis). BlackSky’s gross margins are a bit lower (it does some one-time project revenue along with imagery subscriptions). On valuation, even after its rally, BlackSky’s stock traded around 2.5× price-to-sales (as of mid-2025) ^[97] – cheaper than Planet’s then ~4–5× P/S ^[98]. This discount reflects its smaller scale and perhaps higher customer concentration (a big chunk of BKSY revenue comes from a handful of U.S. government contracts).
Outlook: BlackSky has been positioning itself as a nimble, intelligence-oriented complement to larger imagery providers. It recently formed a strategic alliance with Palantir to integrate satellite data with Palantir’s analytics, aiming to win more defense customers. In the investment community, BlackSky is often seen as a potential takeover target for a larger defense contractor or tech firm wanting an imagery asset – its sub-$1B valuation is digestible. However, the company will need to prove it can generate positive cash flow; otherwise, it might face financing needs. For now, BlackSky’s stock has ridden the coattails of Planet’s success, but it will need its own big contracts or growth spurts to sustain momentum.

Spire Global (NYSE: SPIR): Spire is another space-data company, but with a different focus. It operates a fleet of over 100 nano-satellites in low Earth orbit that collect radio-frequency data. Spire’s services include weather forecasting (via GPS radio occultation data), ship tracking (via AIS signals), and aircraft tracking, as well as some Earth imaging and other custom data solutions. Essentially, Spire is more about “signals from space” rather than pictures.

Stock performance 2025: Spire’s stock has also had a rocky ride since its SPAC debut (it was under $1 for much of 2022–23, prompting a reverse split this year). In 2025, SPIR shares improved from post-split ~$6 levels up to around $12 by mid-year ^[99]. As of July 2025, Spire’s market cap was about $350 million ^[100] – significantly smaller than Planet or even BlackSky. The stock got some boost from insider buying (the CEO purchased shares, signaling confidence) and news of a few multi-million-dollar deals (for example, contracts with NOAA for weather data, and with the UK Ministry of Defence for naval tracking). Still, Spire’s rally was more muted; it didn’t see the same speculative surge as Planet or BlackSky, perhaps because its growth had stalled a bit.
Financials: Spire’s revenue in 2025 is on track for roughly $85–$90 million (similar scale to BlackSky) ^[101]. However, its growth rate has been modest – around 10–15%. In Q2 2025, Spire reported ~$19 million revenue, about 10% up YoY (their comparisons are tricky because of some one-time revenue in 2024) ^[102]. Like the others, Spire is unprofitable, with negative EBITDA and ongoing losses (estimated around –$0.70 EPS for 2025). One positive: Spire has very high gross margins (~70%+), since once its satellites are up, data collection is relatively low-cost; but it spends a lot on R&D and SG&A for growth initiatives. Spire ended the latest quarter with a decent cash buffer after some cost-cutting and a small equity raise. On valuation, Spire was trading around 3–4× sales (post-split) ^[103], similar to Planet’s multiple at mid-year but now a fraction of Planet’s after Planet’s price exploded.
Outlook: Spire’s opportunities lie in scaling its subscription data services for weather (a potentially huge market, selling data to governments, aviation, agriculture, etc.) and for trade/transport tracking. It doesn’t compete head-to-head with Planet on optical imagery, but there is some overlap in analytics (e.g., both might sell insights to an insurance company – Planet via images of ground conditions, Spire via weather patterns). Spire has also started partnering with European aerospace agencies and even offered to fly third-party sensors on its satellites (trying to monetize its space network fully). For investors, Spire might appeal as a diversified space-data play, but it has yet to show the breakout contract that would dramatically alter its trajectory. It remains the smallest of the trio in market cap, and its stock volatility has been high. If the space sector stays hot, Spire could continue to drift upward, but it likely needs a strategy boost or a niche dominance to excite the market further.

Planet Labs vs Peers – Key Takeaways:

Scale and Growth: Planet is currently the revenue leader among new-space data companies, with expected ~$285M this year, versus ~$90M for BlackSky or Spire ^[104]. Planet’s growth (20%+ accelerating) also appears stronger, especially with backlog factored, whereas BlackSky is growing ~20% and Spire ~10%. Advantage Planet.
Product Differentiation: Planet offers a broad platform (broad imagery coverage daily, plus moderate resolution, plus emerging high-res), whereas BlackSky is focused on on-demand high-res tasking and Spire on non-imagery data (weather/IoT). In some sense, Planet’s market is larger (because daily global monitoring has many uses), but it also faces free alternatives (e.g., government satellite data like Sentinel, though at lower frequency). BlackSky targets primarily defense intel (a lucrative, albeit narrower, market). Spire is in a different segment (weather data is huge, but also competed by government meteorological agencies). Planet’s strategy of “imagery everywhere, every day” is unique in scope, which may justify its premium.
Backlog and Visibility: Planet’s $736M backlog ^[105] dwarfs anything its peers have reported – BlackSky hasn’t disclosed comparable backlog figures publicly, but it’s certainly much smaller (perhaps a couple hundred million at most, given their size), and Spire’s backlog is likely in tens of millions. This suggests Planet has a much longer runway of booked business, reducing risk and showcasing customer commitment.
Financial Health: Planet is now cash-flow positive YTD ^[106], meaning it’s less likely to need dilutive financing in the near future. BlackSky and Spire are still burning cash and may need to raise capital if they don’t hit profitability in the next year or two. Planet also has a hefty cash balance (~$270M on hand) ^[107]. This financial strength is a big differentiator and gives Planet more resilience.
Valuation: Here’s where things diverge. Planet’s success has made its stock more expensive on fundamentals. As of October 2025, Planet trades at perhaps 15–16× forward sales (stock price ~$15 / ~$0.95 sales per share) whereas BlackSky and Spire, after their runs, might be in the mid-single-digit sales multiples. Back in mid-2025, Planet was ~4.6× sales vs BlackSky ~2.6× and Spire ~2.65× ^[108]; since then Planet’s price exploded while peers’ have risen more gradually, widening that valuation gap. In plainer terms, investors are paying a premium for Planet’s market leadership and better fundamentals. If Planet stumbles, that premium could compress quickly – a risk to be mindful of.
Expert Views: Analysts broadly favor Planet over the others. Planet has mostly Buy ratings ^[109], whereas BlackSky and Spire have more mixed coverage (someholds or even sells, due to their tougher financial shape). However, some analysts argue that BlackSky, being cheaper, could have more upside if it secures larger contracts, essentially a higher-risk, higher-reward bet. Meanwhile, Spire is seen as needing a strategic shift or more capital to unlock value; it’s often under the radar compared to the imaging players.

In conclusion, Planet Labs currently stands out as the leader in its class – it’s larger, growing fast, and moving toward profitability, justifying why its stock has outrun those of BlackSky and Spire. But all three companies are part of a rising tide in the space sector. An investor interested in space-tech might observe that BlackSky and Spire offer exposure to specific niches (high-frequency spy imagery and global sensor data, respectively) at lower valuations, whereas Planet offers a more comprehensive Earth data play with arguably less near-term risk (given its cash and backlog), but that safety comes at a higher price tag. Some might even choose to invest in a basket of space stocks to spread bets. For now, Planet is the market’s favorite, but it will need to keep executing to stay ahead of this competitive pack.

Sector Outlook: Satellite Imagery & Space Tech Trends in 2025

The broader context for Planet Labs’ story is the renaissance in the space technology and satellite industry. After a speculative bubble in 2021 followed by a harsh downturn in 2022–23, the space sector is again gaining traction in 2024–2025, but this time with more substance behind it. Key trends and how they bolster Planet’s investment thesis include:

Surging Demand from Defense and Intelligence: Global military tensions (e.g., Russia’s war in Ukraine, strategic rivalries in Asia) have prompted governments to pour more money into reconnaissance and surveillance capabilities. However, building one’s own satellites is expensive and slow; thus, commercial providers like Planet have become crucial to fill gaps with unclassified, rapidly available imagery. Planet’s data was used extensively to track events in Ukraine, from troop movements to infrastructure damage, and that visibility has not gone unnoticed in defense circles. The NATO and U.S. defense contracts Planet won in 2025 exemplify how allied governments are embracing commercial satellites as a complement to spy satellites ^[110] ^[111]. Importantly, commercial imagery can often be shared with partners and even the public (like to verify war crimes or disprove misinformation) in ways classified intel cannot. This gives companies like Planet a strategic role. The U.S. defense budget for space-based reconnaissance is rising, and Europe is now starting to spend heavily too (Germany’s huge contract with Planet is a case in point). This tailwind looks secular – meaning it could persist for many years as militaries integrate commercial satellite data into their everyday operations.
Climate Change and Environmental Monitoring: Climate-related risks (wildfires, droughts, deforestation, Arctic ice melt, etc.) have created a strong need for continuous Earth monitoring. Planet’s tagline of imaging “the whole Earth, every day” directly serves this need. Governments (from NASA to the European Space Agency) and climate researchers rely on satellite imagery to track changes and respond to disasters. In 2025, for example, massive wildfires in North America and Europe were mapped in real-time by Planet’s Dove satellites, aiding firefighting and damage assessment. Similarly, organizations track deforestation in the Amazon or floods in Asia via such imagery. As climate volatility increases, so does the value of having frequent, high-resolution eyes on the planet. Planet’s data is also used for verifying corporate ESG claims (e.g., monitoring a mining company’s land use or a country’s tree cover for carbon offsets). This wide array of civilian uses suggests a broad addressable market beyond just defense. Moreover, Planet being a Public Benefit Corp means it has a mission aligned with these goals, potentially giving it an edge in forming partnerships with non-profits and research institutions.
Commercial Adoption of Geospatial Intelligence: Outside of government, more industries are discovering the power of geospatial data. Agriculture is a prime example: farmers and agribusinesses use satellite imagery for precision farming – detecting crop stress, optimizing inputs, etc. Planet’s partnership with Bayer and ag-tech startups demonstrates growing enterprise demand. Insurance and finance form another vertical – insurers use imagery to validate claims (roof damage after a storm, for instance) or to underwrite disaster risk (by analyzing flood zones or wildfire buffers via satellite). Hedge funds and commodity traders buy satellite data to, say, count cars in retail parking lots or gauge crop yields worldwide (this was a niche pioneered by companies like Orbital Insight using Planet’s archive). Infrastructure and energy companies monitor assets like pipelines, solar farms, and offshore rigs with satellites to spot issues quickly. As data analytics improve (AI/ML on imagery), the insights obtainable keep expanding. This trend is still in early innings – many businesses are just starting to incorporate space data – which means significant growth runway if Planet converts more of these prospects into subscribers.
Constellation Proliferation and Technology Advances: Thanks to cheaper launches (thank you, SpaceX) and miniaturization of tech, we’ve seen a proliferation of small satellite constellations. Planet was a pioneer with its 3U Cubesat Doves; now others like Spire, Satellogic, and numerous startups are launching fleets. This trend is a double-edged sword: on one hand, it lowers costs for operators like Planet and enables rapid tech refresh (Planet can launch dozens of new Doves cheaply every year to upgrade its fleet). On the other hand, it means more competition – e.g., Satellogic (NASDAQ: SATL) is a smaller company launching imaging satellites with a goal to image the earth daily at high resolution, potentially competing at the low end. Likewise, companies like Capella Space (private) are deploying radar satellites that can see through clouds and at night – a complementary tech to Planet’s optical images, but also another data source vying for budgets. Competition from giants is also looming: for instance, Earth observation services from tech giants (Google, which already uses satellite imagery in Maps; Amazon’s AWS Ground Station services for satellite data; etc.) could intensify. So far, Planet’s first-mover advantage and sheer volume of data (it has an unmatched image archive over the past 7+ years) provide a moat. But the sector will likely see consolidation and shakeouts – which is why being a leader with scale (Planet’s position) is important. It’s worth noting that traditional satellite imagery was dominated by a few players (Maxar/DigitalGlobe, Airbus, etc.). Maxar’s buyout in 2023 and subsequent split-up ^[112] ^[113], as well as rumors that Airbus might spin off or enhance its space unit, show that legacy providers are in flux. This opens opportunities for agile companies like Planet and BlackSky to grab market share, especially if they offer more innovative business models (subscription vs one-off image sales).
Investor Sentiment Cycles: From an investment perspective, space stocks are known for booms and busts. In 2021, anything space-related soared (Virgin Galactic, Momentus, etc.), then came crashing down. By late 2023, many space SPAC stocks were trading at pennies as the market lost patience waiting for profits. Now in 2025, sentiment has improved markedly – partly due to macro factors (e.g., interest rates stabilizing, making future growth prospects more attractive, and rising defense spending creating a “war trade” that benefits defense & aerospace names). Planet’s success has helped shine a positive light on the segment, proving that at least some of these companies can deliver growth and cash flow. There’s also a narrative that space is the next strategic frontier, and missing out could mean missing the next FAANG-like run a decade from now. Still, investors are more discriminating now – they favor companies showing real traction (hence Planet up, while some pre-revenue space startups remain down). As 2025 closes, there’s a cautious optimism: valuations have risen, but many see this as an acknowledgement that space tech is maturing beyond hype to become a real business. The challenge for companies (and their investors) is to maintain credibility through execution, because any hint of the old “hype with no substance” could quickly sour sentiment again.

In summary, the industry trends support a bullish case for Planet Labs and peers: more use-cases, more customer demand, and technology enabling more data at lower cost. But competition and the need for flawless execution are also intensifying – only the strong will thrive in the long run. Planet’s moves (like expanding production, launching better satellites, securing long-term contracts) suggest it’s aiming to entrench itself as one of those long-term winners. As an investor, understanding these tailwinds and headwinds helps in assessing how sustainable Planet’s growth is and what could alter the trajectory.

Analyst Opinions and Expert Commentary

Given Planet Labs’ high-profile surge and its importance in the new-space sector, it’s no surprise that Wall Street analysts and industry experts have been actively weighing in on the stock’s prospects. Here’s a synthesis of what the experts are saying:

Bullish analysts (the majority) praise Planet’s execution and market leadership. For instance, Wedbush Securities’ analyst, in early October, reacted to Planet’s strong Q2 by raising the firm’s price target from $11 to $17 and reiterating an “Outperform” (Buy) rating ^[114]. Wedbush highlighted the company’s robust growth and backlog as key reasons for increased optimism. Similarly, analysts at Citigroup and Cantor Fitzgerald have been positive: Citi rates Planet an Outperform and Cantor upgraded it to Overweight, raising their target to $8.50 (from $6.30) back in June ^[115] – though that target now looks low post-rally. These bulls generally argue that Planet is at the forefront of a rapidly growing industry and has proven its ability to win big contracts, which justifies a premium valuation. They often mention the company’s recurring revenue model and improving margins as signs of a scalable tech business akin to a SaaS (software-as-a-service) model but for satellite data.
Market consensus is moderately positive, but price targets lag the stock. According to MarketBeat, 9 analysts currently rate PL a Buy and 1 a Hold, with no Sell ratings ^[116]. That’s a strong consensus of confidence in the company’s direction. However, those same analysts, on average, see fair value for the stock around $8–$9 ^[117] ^[118] (the exact consensus target was $8.56 as of early October ^[119]). This apparent disconnect – Buy ratings but with targets below the current price – implies that either (a) analysts haven’t updated their models fully after the latest rally and may revise targets upward later, or (b) they believe Planet is an excellent company but was better as a buy at lower prices, and at $15 it’s a bit ahead of itself. It’s common in fast-rising stocks to see a lag in targets, and if Planet continues executing, analysts would be expected to play catch-up. For instance, after Q2, JMP Securities bumped its target from $8 to $11 while keeping an Outperform rating ^[120] – still below market price. We may see further upgrades if the company delivers strong Q3 and Q4 results.
Cautious voices flag valuation and execution risks. The most notable cautious stance came from Goldman Sachs. In mid-2025 (June 30), Goldman initiated coverage on Planet with a “Neutral” rating and a $4.60 price target ^[121]. Analyst Noah Poponak expressed that while Planet was an exciting growth story, the stock (then around $5) already reflected a lot of optimism and the path to consistent profitability was still a few years out ^[122]. Goldman’s cautious view was echoed by some independent research outfits: for example, Simply Wall St (which uses algorithmic models) published a piece suggesting Planet’s intrinsic value might be around $9.23 per share, implying the stock could be overvalued by ~38% at current levels ^[123]. Their model assumed the required ~18% annual growth and a swing to profitability by 2028, but argued the market price had gotten ahead of those fundamentals ^[124] ^[125]. Additionally, a Barchart.com analyst noted that “some analysts caution that the recent rally puts shares ahead of near-term fundamentals” ^[126] – essentially warning that a 5× stock jump in a year is hard to rationalize purely by the numbers, as Planet is still losing money on a GAAP basis and any hiccup (like a contract delay or broader market pullback) could cause an outsized drop.
Expert commentary on media: On financial news networks and blogs, Planet Labs has been a topic of interest. For example, on CNBC, a few analysts have cited Planet as a pure-play on the commercialization of space, noting its PBC status and unique dataset. Cathie Wood’s ARK Invest, known for thematic bets, has a Space ETF (ARKX) which at times has held Planet – though ARK’s exact position fluctuates, their research has lauded the company’s disruptive approach to Earth data. Motley Fool contributors – who often favor long-term growth stories – have written positively, with one Fool.com article headlined “Planet Labs stock has nearly tripled…and Wall Street thinks it has more gas in the tank” ^[127], enumerating the company’s strengths like backlog and positive cash flow. However, even that piece acknowledged the high multiples and suggested some analysts urge caution on valuation.
What to watch in expert discussions: A common thread is when Planet might reach sustained profitability. Bulls point out the adjusted EBITDA positive streak and free cash flow in 2025 as evidence it’s almost there ^[128]. Bears retort that with renewed capex and R&D, the company may hover around breakeven for a while, so actual net earnings (GAAP profits) might not materialize until maybe FY2027. This timing matters for some value-focused investors. Another debated point is competition vs. TAM (total addressable market): optimists say the market for Earth data is so vast (spanning defense, climate, agriculture, etc.) that multiple winners can coexist and Planet can keep growing without needing to crush others. Skeptics say competition (including free government-provided data like from EU’s Sentinel satellites, or newer entrants) could eventually pressure Planet’s pricing or share. So far, Planet has been diversifying its products (e.g., higher-res Pelican data at presumably higher price points, analytics tools, etc.) to maintain an edge.

In essence, analysts broadly agree Planet Labs is a leading innovator in a growth industry, and most recommend it (or at least wouldn’t bet against it). The split comes in evaluating the stock’s current price: believers argue that this is a generational growth company in the making – akin to an “AWS of Earth data” – and thus deserves a premium. More cautious analysts love the company but are uneasy with the stock’s rapid appreciation, preferring to wait for a better entry or for proof that the lofty valuation will be earned by even higher revenues in the future. For investors, it’s important to monitor these sentiment shifts. If Planet keeps exceeding expectations, we’ll likely see price targets move upward and new investors jumping in. If it hits a snag, some of that enthusiasm could quickly temper, given the high expectations built into the price.

One strategy some experts mention is a long-term accumulation approach: given Planet’s volatility, there may be pullbacks that present opportunities to add shares at lower levels, for those who believe in the 5-10 year story. As always, doing your own due diligence and aligning any investment with your risk tolerance is key – but paying attention to the experts’ reasoning (both bullish and bearish) can provide valuable perspective.

Conclusion and Investment Outlook

Planet Labs in 2025 has, in many ways, validated the promise that early investors saw when it went public: the company has transformed daily satellite imagery from a novel idea into a growing, revenue-generating business with global impact. The stock’s stellar performance this year mirrors the company’s operational successes – rapid revenue growth, major contract wins, and tangible progress toward profitability. Planet has firmly established itself as a leader in the new era of commercial space services, and its trajectory suggests it could be on a path similar to other disruptive tech firms (where early volatility gives way to long-term value creation as the market matures).

However, prospective investors should weigh a few final considerations:

Growth vs. valuation: Planet’s growth metrics are undeniably impressive, and the long-term market opportunity (Earth data for every industry) is enormous. If you believe Planet can continue capturing a large share of this burgeoning market, then the company’s revenues a few years from now could be several-fold what they are today. In a bullish scenario, Planet leverages its first-mover advantage and backlog to keep ~20% annual growth humming for years, eventually generating hundreds of millions in high-margin, subscription revenue. That could indeed justify, or even exceed, the current valuation. However, at the moment the stock is priced for a lot to go right. Any slip — a missed quarter, slower integration of new satellites, a customer pulling back — could make the stock vulnerable to a correction. In other words, the execution risk is on Planet to meet steep expectations. Investors with lower risk appetite might wait for dips or for more proof in subsequent earnings that momentum is sustained.
Competitive landscape evolving: Planet won’t be without challengers. While none match its scope yet, both government programs (e.g., EU’s Copernicus/Sentinel expansion) and private competitors (like those mentioned earlier) will keep nipping at various segments of the business. Planet’s best defense is to continue innovating (e.g., get Pelican’s 30cm imagery operational, add night-time/SAR capability perhaps via partners, enhance its AI analytics offerings) and to entrench itself via long-term contracts (which it’s successfully doing). The good news for Planet is that switching costs for customers can be high: once a government agency or big enterprise integrates Planet’s platform into their workflow, they’re less likely to drop it. The expansion of multi-year deals hints at that stickiness. So, maintaining technological and service quality leadership is paramount.
Macro factors: Investors should also keep an eye on broader factors. Defense-related spending (a big chunk of Planet’s recent wins) can be lumpy and subject to political winds. Thus far, support for reconnaissance assets is bipartisan in the U.S. and a priority in Europe given security concerns, so it’s a positive environment. But something like rapid improvement in geopolitical tensions (however welcome globally) could temper the urgency for some surveillance programs. Conversely, any new conflicts or security issues could spur even more demand (a sad reality that CEO Marshall himself acknowledged: “I don’t want greater instability in the world, but the fact that it is happening does drive interest in Planet’s data more strongly.” ^[129]). On the commercial side, macroeconomic conditions – e.g., a downturn in the agriculture sector or tighter corporate IT budgets – could slow the uptake of new subscriptions. Additionally, as a high-growth, high-multiple stock, Planet is sensitive to interest rates and equity market sentiment: if rates spike or the market shifts away from growth stocks, Planet’s valuation multiple could compress even if its business is doing fine.
Public Benefit ethos: One unique aspect is Planet’s status as a Public Benefit Corporation (PBC), meaning it’s legally bound to consider social/environmental goals in addition to profit. For mission-driven investors, this is a plus (Planet’s data has been used for humanitarian and environmental good regularly). It can also aid in recruiting talent and attracting certain types of customers/partners. From an investor perspective, being a PBC hasn’t hampered Planet’s pursuit of revenue (clearly, they are commercially aggressive), but it’s something to be aware of as it underscores the company culture and priorities (e.g., they might decline certain business that conflicts with their values, like surveillance for repressive regimes – which long-term could preserve their reputation, but short-term could mean passing on some revenue).

In wrapping up, Planet Labs presents a compelling but not risk-free investment narrative. The company’s fundamentals in 2025 are strong and getting stronger – record sales, improving margins, and deals that cement its future growth. The stock, accordingly, has rewarded shareholders handsomely this year. Looking forward into 2026 and beyond, the key signposts to watch will be: continued revenue growth (are they hitting that ~$285M FY26 target and guiding ~20%+ growth next year?), conversion of backlog to revenue (are the big contracts ramping on schedule?), profitability metrics (does free cash flow remain positive even as they invest?), and any new contract announcements (especially renewals or expansions of existing big deals, which would validate customer satisfaction).

For investors with a long-term horizon and tolerance for volatility, Planet Labs offers exposure to the growth of the space economy and the datafication of our planet. It stands at the intersection of multiple powerful themes – space tech, big data, defense, climate action – which could enable it to thrive even if one segment faces headwinds. As always, prudent investing would suggest maybe starting with a modest position and adding over time on dips, or balancing it within a portfolio with more stable picks, given that small-cap tech stocks can swing wildly.

In investing terms, Planet Labs in 2025 has proven it can shoot for the stars and actually reach orbit. The coming years will tell if it can maintain that orbit and perhaps, just perhaps, become the Google Earth of the 2020s – not just mapping the world, but helping to manage and secure it, all while delivering value back down to its shareholders.

Sources:

Planet Labs stock performance and earnings – Investors Business Daily ^[130] ^[131]; Motley Fool via Nasdaq ^[132] ^[133]; BusinessWire Press Release ^[134] ^[135].
Backlog, guidance and financials – BusinessWire ^[136] ^[137]; Motley Fool via Nasdaq ^[138] ^[139].
Analyst commentary – MarketBeat report ^[140] ^[141]; Barchart (Ebube Jones) ^[142]; SimplyWall.St analysis ^[143] ^[144].
Peer comparison (BlackSky, Spire) – Zacks Equity Research via Nasdaq ^[145] ^[146]; CMC Markets Opto report ^[147] ^[148].
CEO and industry quotes – BusinessWire (Will Marshall and Ashley Johnson quotes) ^[149] ^[150]; CMC Opto (Will Marshall Reuters quote) ^[151].
Sector context – BusinessWire (contract details); Maxar acquisition news ^[152]; CMC Opto (market caps, P/S ratios) ^[153] ^[154].