Investing

Why I Won’t Stop Buying Planet Labs and The only Thing That Will Stop Me

Planet Labs just posted the strongest quarter in its history, yet the stock dropped 30% this year. Here is why that gap keeps widening my position and the exact two conditions that would make me walk away.

By Alex Sirois
Published October 27, 2026, 10:45am ET · 3 min read

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An artistic rendering showing Earth from space, with multiple satellites in orbit. The Earth's surface displays city lights on the night side and blue oceans and white clouds on the day side, transitioning at a bright, sunny horizon. The background is a dark starry sky.
An artistic rendering illustrates a constellation of advanced satellites orbiting Earth, symbolizing the expanding reach of companies like Planet Labs in space-based data and connectivity. © Courtesy of AST SpaceMobile

I added to my Planet Labs (NYSE:PL) position again this month, and every dip makes the next purchase easier. Shares sat at $13.77 on October 26, down 30.17% year to date. That drop came right after the company delivered the strongest quarter in its history. While the business speeds up and the stock falls, I keep buying.

Planet Sees the Whole Planet Every Day

Conventional satellite operators take static, targeted photos on demand. Planet runs hundreds of satellites (SuperDoves, Pelicans and Tanagers) that image the entire Earth’s landmass daily. That daily scan builds an archive rivals cannot buy. CEO Will Marshall put it plainly: “Even if someone had a daily scan suddenly today, they wouldn’t have the archive to go back and find all these things for several years.” Customers pay for that history through subscriptions, and 98% of annual contract value is recurring.

Three Receipts Behind Every Purchase

Growth comes first. Fiscal Q2 2027 revenue reached $116.05 million, up 58.1% year over year and ahead of the $104.22 million consensus. Defense and intelligence revenue grew over 90%, and full-year guidance calls for $430 million to $441 million.

Visibility comes second. Net dollar retention stands at 109%. Planet counts over $4 billion of identified satellite-services opportunities, with over 25% qualified as near-term. It launched a sovereign satellite for the Swedish Armed Forces 4 months after signing.

Financial strength comes third. Planet generated $52.87 million of free cash flow in fiscal 2026, its first full year with positive free cash flow. Adjusted EBITDA reached $13.93 million last quarter, up from $6.41 million a year earlier. Adjusted EPS of $0.02 beat the -$0.0213 consensus, its fifth consecutive quarterly beat. Cash, equivalents and short-term investments total about $865 million. Last quarter, Planet sold shares through its ATM program at an average net price of $31.95. I’m buying at $13.77.

Why My Money Skips BlackSky

BlackSky Technology (NYSE:BKSY) grew Q2 2026 revenue 50.08% to $33.316 million, yet its GAAP EPS of -$0.54 missed the -$0.3467 estimate. Its 2025 operating cash flow came in at -$28.311 million, and it ended the quarter with $36.897 million in cash after a $150 million ATM raise. Planet generates positive free cash flow. BlackSky relies more heavily on capital markets.

Only Two Things Will Stop Me

Dilution and capital cycles top the list. Planet raised about $120 million through its ATM last quarter. It has $448.3 million in convertible notes, spends $17.1 million a quarter on stock-based compensation and plans $100 million to $115 million of capex this year.

Government concentration comes second. Defense budgets drive the growth, and those contracts has termination-for-convenience clauses.

So far, both stay inside my limits. Management sold stock well above today’s price and said, “We are very diligent about how we are adding that capital to the balance sheet, making sure that we’re sensitive to dilution as we know our shareholders are.” The government book covers Sweden, Germany, Rwanda and U.S. agencies, and EMEA revenue grew over 130%. If ATM sales increase up at low prices or a major agency walks away, I stop buying.

What Keeps the Growth Thesis Intact

The next-generation Owl fleet promises “10 times more data” delivered “10 times faster,” and management called it “definitely a price increase opportunity.” Marshall estimates Planet holds under 5% of today’s Earth observation market. A company growing 58% with that little share and that much cash keeps my confidence in the thesis high.

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Alex Sirois

Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.

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