The benchmark was already constructive. Before this release, Planet’s Q2 revenue outlook was $102M-$107M and published consensus was roughly $101M; its prior FY2027 revenue guide was $425M-$441M.
Revenue delivered a clear beat, not merely a record headline. Q2 revenue reached $116.1M, up 58% year over year, landing about 9% above consensus and above the top of the company’s own range.
| Metric | Q2 FY2027 | Q2 FY2026 / prior | Market read |
|---|---|---|---|
| Revenue | $116.1M (Financial Highlights) | $73.4M | Above ~$101M consensus |
| Adjusted EBITDA | $13.9M profit (Adjusted EBITDA reconciliation) | $6.4M profit | Better than expected operating leverage |
| GAAP net loss | $(9.4)M (Income Statement) | $(22.6)M | Loss narrowed |
| Non-GAAP gross margin | 59% (Financial Highlights) | 61% | Down 2 points |
| GAAP net loss per share | $(0.03) (Income Statement) | $(0.07) | Roughly in line with published expectations |
| Year-to-date free cash flow | $21.3M (Cash Flow reconciliation) | $54.3M | Weaker despite growth |
| Year-to-date adjusted free cash flow | $28.8M (Cash Flow reconciliation) | $54.3M | Improved only after excluding litigation payments |
Profitability also beat on the adjusted measure, but the quality is mixed. Adjusted EBITDA rose to $13.9M from $6.4M, while non-GAAP operating income turned positive at $4.1M. However, gross margin fell to 59% from 61%, and the quarter still produced a $9.4M GAAP loss.
The annual outlook improved, but the reset is modest rather than transformational. FY2027 revenue guidance moved to $430M-$441M from $425M-$441M, raising the floor while leaving the ceiling unchanged; adjusted EBITDA guidance also moved to a $3M-$10M profit range from breakeven-$10M. Q3 guidance calls for $101M-$105M of revenue and a $1M-$6M adjusted EBITDA loss, implying near-term profitability will be uneven.
Cash increased substantially, but part of that strength came from issuing stock. Cash, cash equivalents and short-term investments ended at $865.4M, helped by roughly $120M raised through the ATM program at $31.95 per share. That improves funding flexibility but adds dilution, while reported free cash flow declined year over year.
The net read is a genuine beat with a less explosive outlook than the quarter. The revenue upside, adjusted EBITDA profitability, government-contract momentum and higher annual guidance floor outweigh the softer margins, lower free cash flow and equity issuance. The key change is that execution materially exceeded the standing Q2 expectation; the forward guide, however, confirms momentum more than it resets the company’s growth trajectory.
Read the original 8-K on SEC EDGAR ↗