Planet Labs Stock Drops 67% Despite Revenue Growth

Planet Labs experienced a significant stock price decline, falling approximately 67% from its peak in May. The sell-off followed a period of rapid growth fueled by the company's daily Earth imaging services and strong government contracts.

For the first half of fiscal 2027, ending July 31, 2026, the company reported revenue of $210 million, representing a 44% increase over the previous year. While the company reported a loss of $148 million for the period, $106 million of that figure was attributed to non-cash changes in the fair value of warrant liabilities. The company also generated over $21 million in free cash flow.

Investor confidence declined following a $1.5 billion equity dilution program announced in June and cautious revenue guidance for the third quarter. As a result, the company's price-to-sales ratio dropped from a peak of 49 to 15. Analysts forecast revenue growth of 42% for the current fiscal year and 31% for fiscal 2028.