Planet Labs PBC — Call Transcript 2026

Fiscal fourth quarter and full year 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. I will now hand the conference over to Cleo Palmer-Poroner, Director of Investor Relations. Please go ahead. Thanks, operator, and hello, everyone. Welcome to Planet's fiscal fourth quarter and full year 2026 earnings call. I'm joined by Will Marshall and Ashley Johnson, who will provide a recap of our results and discuss our current outlook. We encourage everyone to please reference the earnings press release and earnings update presentation for today's call, which are available on our investor relations website. Before we begin, we'd like to remind everyone that we will make forward-looking statements related to future events or our financial outlook. Any forward-looking statements are based on management's current outlook, plans, estimates, expectations and projections. The inclusion of such forward-looking information should not be regarded as a representation by Planet that future plans, estimates or expectations will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions as detailed in our SEC filings, which can be found at www.sec.gov. Our actual results or performance may differ materially from those indicated by such forward-looking statements, and we undertake no responsibility to update such forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. During the call, we will also discuss historic and forward-looking non-GAAP financial measures. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. For more information on the non-GAAP financial measures, please see the reconciliation tables provided in our press release issued earlier today, which is available on our website at investors.planet.com. Further, throughout this call, we will provide a number of key performance indicators used by management and often used by competitors in our industry. These and other key performance indicators are discussed in more detail in our press release and our earnings update presentation, which are intended to accompany our prepared remarks. At this point, I'd now like to turn the call over to Will Marshall, Planet's CEO, Chairperson, and Co-founder. Over to you, Will. Thanks, Cleo, and welcome everyone joining us today. Last year was transformational for Planet, and I'm proud of everything that our team accomplished. We made incredible progress in the satellite services market, signing a EUR 240 million agreement funded by Germany and a nine-figure deal with Sweden, capping off three such deals in 12 months. We launched 40 satellites, including four of our high-resolution Pelican satellites, invested strongly in AI and announced a cutting-edge partnership with Google to demonstrate satellites for compute in space. We delivered record annual revenue, Adjusted EBITDA profitability, positive free cash flow and accelerated our revenue growth. We laid out a strong foundation for the year ahead, enabling us to continue that growth acceleration. Let's dive in. To briefly summarize the full year results, we generated a record $308 million in revenue, representing approximately 26% year-over-year growth. Non-GAAP gross margin was 59% for the year. Adjusted EBITDA profit came in at $15.5 million and free cash flow was $53 million, representing our first full fiscal year of non-GAAP profitability, an excellent milestone for the team as we strike a balance between profit and growth. Q4 was also a record for revenue, representing 41% year-over-year growth and our fifth consecutive quarter of Adjusted EBITDA profitability. For the second sequential quarter, we achieved Rule of 40, which is our revenue growth plus Adjusted EBITDA margin, and on an annual basis we achieved Rule of 30, a full year earlier than we anticipated. End-of-period backlog was over $900 million, approximately 79% growth year-on-year, providing us with excellent visibility to accelerating our revenue growth for the coming fiscal year. Defense and intelligence was a major area of strength for us in FY 2026, underpinned by global dynamics. Full-year D&I revenue grew over 50% year-on-year, driven by strong performance in our data subscriptions, solutions and satellite services. To recap our role here, Planet was founded on a core mission of making information about our world visible, accessible and actionable to help both sustainability and security globally. As the geopolitical landscape shifts, security is an urgent mandate for governments worldwide, and our customers face mission-critical decisions in an increasingly complex and chaotic world, and this mission is critical to them. We view security as inextricably linked to sustainability. Resource scarcity and climate disasters are not just environmental issues. They are direct threat multipliers or even triggers for conflict. The defense and intelligence sector is essential to realizing our mission. Our customers rely on us to help identify unknown unknowns, detect changes and warning signals that they didn't know to look for before they escalate into crisis, is a critical part of our purpose. To highlight a few recent customer wins in this area, during the quarter, we received two awards from the U.S. Defense Innovation Unit. We were awarded a seven-figure extension of our pilot in support of Indo-Pacific Command to deliver vital indications and warnings. The short-term contract demonstrates how customers can leverage Planet data and AI-powered analytics to monitor sites of strategic interest for critical changes and threats. DIU also exercised an option under the existing Hybrid Space Architecture pilot with Planet for just under $1 million to demonstrate the cutting-edge capabilities for our high-resolution Pelican satellites. During the quarter, NATO's Allied Command Transformation also extended its agreement with Planet to deliver persistent space-based surveillance and enhanced indications and warning capabilities. The award underscores Planet's position as a trusted and essential partner for customers seeking strategic indications and warnings across broad domains. Finally, last month, the U.S. Missile Defense Agency selected Planet as a prime contractor for the SHIELD IDIQ contract vehicle. Planet will now compete for awards under that program. Turning to the civil government sector, where full-year revenue was flat year-over-year. To share some recent highlights, during the quarter, Planet was awarded a seven-figure renewal and expansion by the German Federal Agency for Cartography and Geodesy, or BKG. Under the one-year renewal, BKG will continue its country-wide partnership to which employees of more than 400 German federal institutions gain access to Planet's data and solutions for a wide variety of uses. As an example, this expansion will allow BKG to track permafrost thawing across the Arctic. In January, we announced an enterprise-scale agreement with Slovenia's Surveying and Mapping Authority to provide comprehensive satellite data and high-resolution tasking capabilities across the country's civil public administration in support of agriculture, urban planning, and disaster management. Shifting to the commercial sector, where annual revenue was down year-over-year. While this trend was expected, given our increased focus on large government customers and the headwinds in agriculture, we remain confident in the commercial sector as a significant market opportunity for Planet, especially as we continue to advance our AI-enabled solutions. To share a few customer highlights from the quarter, specifically around our work in energy, we were awarded a renewal by San Diego Gas & Electric, which utilizes Planet data and analytics to monitor vegetation health and conditions within their service areas to manage risk of wildfires during the dry season. We also signed a strategic partnership with AiDash, establishing Planet as the preferred provider of daily and weekly fuel monitoring data for utility wildfire risk mitigation across North America. Through the partnership, leading investor-owned utilities are already using Planet data to identify where and when to deploy fuel treatment resources, reducing ignition risk and targeting high-priority clearance with precision that was not previously possible. Turning to our satellite services business. In January, we announced a nine-figure multi-year deal with the Swedish Armed Forces to rapidly deliver a suite of satellites, space-based data and solutions to support Sweden's peace and security operations. In terms of our existing contracts for satellite services, our teams are continuing to execute well. We are progressing with the builds for our contract with JSAT and beginning to serve dedicated capacity under the German-funded contract. We're continuing to find that our satellite services contracts are a win-win-win. The customer guarantees their sovereign space capabilities in their desired area of interest. Our other clients will benefit from increased capacity and revisit rates in the rest of the world. Planet receives capital to forward fund our fleet build-outs. They also bolster our data and solutions offerings as countries want both speed and scale of our data and solutions and the sovereignty of our satellite services technology. Through our AI-enabled solutions, we accelerate time to value, become more deeply embedded in our customer operations, and gain more direct visibility to our customers' operational needs. We're leaning into these synergies across our product offerings. We're continuing to see robust demand from around the world for satellite services, driven by the current geopolitical landscape and the demand for sovereign space systems. Our competitive edge here is twofold. Firstly, our proven track record, having launched over 650 Earth imaging satellites, by far the most of any commercial company. Our second is speed. We are able to launch the first satellites within a few months of contract signing, as shown with the partnership funded by Germany, far faster than traditional aerospace. The demand is significant and reflected in our pipeline, which has grown appreciably in both number of deals and average deal size since we spoke about this at our Investor Day in October. We're leaning into this demand by expanding our manufacturing capacity in San Francisco and building out our second manufacturing location in Berlin. On the solutions side, I'm pleased to report that our integration of Bedrock Research is going very well. The team is helping us scale rapidly and deliver AI-based solutions, notably standing up 600 new monitoring sites within three hours compared to a weeks-long process when we first launched the service. This deep domain area expertise, paired with our ongoing advancements in AI, have allowed us to expand the number of sites we're monitoring around the world, drastically reduce the time needed to implement, and enable our customers to scale across broader geographic areas. During the quarter, Planet expanded its technology collaboration with NVIDIA on multiple fronts. With Planet's proprietary data set and NVIDIA's compute, we can enable significant new capabilities. This includes exploring the use of NVIDIA's accelerated GPU-based computing platform for Planet data processing, enabling faster, more efficient processing for all of our customers. Testing NVIDIA's new Thor processor for in-space use, enhancing super resolution and other AI processing capabilities, and more. As announced earlier this week, we're collaborating to build the world's first scaled GPU native AI engine for satellite data and drive huge advances in efficiency and latency. More generally, we anticipate that AI will be transformational to our business this year. Let me give a bit of broader context. While LLMs offer users the incredible ability to have conversations with the text of the internet, they know very little about the physical world. Real-world models need real-world data, and Planet has it. Our deep data archive averaging over 3,000 collections for every point on the Earth's landmass represents a treasure trove of indexing the physical world and training next-generation models. As Wikipedia was the foundation data set for LLMs, we believe that Planet's daily scan is foundational to real-world models. Furthermore, AI itself is commoditizing software development, making data the key differentiation in AI. Why does this matter? Because it has the potential to unlock a huge market. While Planet is currently seeing tremendous traction for AI-based solutions in defense and intelligence, these developments are making broader area monitoring scalable and accessible for other applications and sectors. Ultimately, we believe this will result in generic applications, democratizing access to Earth intelligence and unlocking markets far faster. Specifically, we think that more generic AI solutions will soon empower non-technical users to go from a concept to a bespoke application in under an hour. We expect expanding these capabilities will benefit our current customers and drive new opportunities in markets such as agriculture, insurance, energy, supply chain, and finance. For the year ahead, our top priorities are executing against our current contracts across both data and solutions and satellite services, and scaling up to capture the massive opportunity before us. We see strong demand, so we're investing into our growth, including the technology roadmap. We're doubling our satellite manufacturing capacity. We're scaling our Pelican fleet with multiple launches scheduled this year. We're launching demos of our Owl and Suncatcher spacecraft, and we're investing in AI for existing solutions and the aforementioned more generic capabilities. In sum, last year we saw the start of returns on our investments into satellite services. This year, we expect to see the start of returns into our investments in AI. We sit uniquely at the intersection of space and AI revolutions, and Planet is the first space and AI company. By year's end, we believe Planet's Earth Intelligence platform will deliver transformational global impact as our customers leverage space and AI to transform data into action. We're leaning in to meet the moment and we're playing to win. With that, I'll turn it over to Ashley to discuss our financials. Over to you, Ash. Thanks, Will. It was indeed a fantastic year, underpinned by strong execution and key wins in satellite services. I'd like now to cover the results in more detail. Revenue for the fourth quarter came in at a record $86.8 million, representing approximately 41% year-over-year growth. Full year revenue was $307.7 million, representing approximately 26% year-over-year growth. The outperformance in the quarter was driven primarily by strong usage from our defense and intelligence and civil government customers, as well as new wins that came in during the quarter. During fiscal 2026, our defense and intelligence sector revenue grew more than 50% year-over-year. The commercial sector was down modestly year-over-year, and the civil government revenue was flat, driven in large part by the end of our contract with Norway for their NICFI program. Turning to our regional revenue breakdown, growth was distributed across the globe in fiscal 2026, with approximate revenue growth of 41% year over year in Asia Pacific, 48% in EMEA, 11% in North America, and down about 2% in Latin America. As of the end of fiscal year 2026, our end of period customer count was 897 customers, slightly down on a sequential basis, reflecting our direct sales team's intentional shift to focus on large customer opportunities and leveraging our self-serve platform to provide access to our data for other customers. As a reminder, Planet Insights Platform customers are not included in our end of period customer count. Given our focus on larger customers and the shift to a self-service model for the long tail of the market, we believe this metric has become less useful for investors and is not proactively monitored by management. We believe our retention rates on ACV are far more constructive measures of our business health and opportunity. Therefore, we plan to discontinue this metric beginning with the first quarter of fiscal year 2027. We continue to see strong revenue growth and thus a solid increase in average revenue per customer as a positive indicator that our sales team's focus on landing and expanding high value accounts is yielding results. As we shift to some of our ACV metrics, I want to remind you that our satellite services contracts are not included in ACV, although they are included in our RPOs and backlog, which we will discuss in a moment. Recurring ACV was 98% of our end of period ACV book of business, reflecting our continued focus on selling subscription data contracts and solutions as opposed to one-time professional or engineering services. Approximately 85% of our end of period ACV book of business consists of annual or multi-year contracts, lower than prior periods as we have seen a higher proportion of large, shorter-termed government contracts signed in recent quarters. Net dollar retention rate at the end of fiscal year 2026 was 116%, and net dollar retention rate with win backs was 118%. Our non-GAAP gross margin for fiscal year 2026 was 59% compared to 60% in fiscal year 2025. For Q4, our non-GAAP gross margin was 57% compared to 65% in Q4 of fiscal year 2025, reflecting investments in support of our satellite services contracts and a mix of contracts including AI-enabled partner solutions. Our gross margins came in better than expected for the quarter and the year, primarily driven by the revenue outperformance in the quarter. Adjusted EBITDA profit was $15.5 million for fiscal year 2026, better than expected, primarily driven by revenue outperformance and disciplined OpEx spend. Fiscal year 2026 marks our first year of delivering Adjusted EBITDA profitability on an annual basis, a milestone we're incredibly proud of. Adjusted EBITDA profit for Q4 was $2.3 million, also better than expected, marking our fifth sequential quarter of Adjusted EBITDA profitability. Capital expenditures in FY 2026, which include our capitalized software development, were approximately $81.5 million. Capital expenditures in Q4 were approximately $23 million. To echo Will's remarks, we're currently in a growth CapEx investment cycle as we lean into market demand, scale up our manufacturing capacity in Berlin, and build out our next-generation fleets. Turning to the balance sheet, we ended the year with approximately $640 million of cash equivalents, and short-term investments, an increase of approximately $418 million year-on-year, driven by our issuance of convertible debt and free cash flow profitability. In fiscal year 2026, we generated approximately $134.4 million in net cash from operating activities and $52.9 million in free cash flow, representing our first year of achieving positive free cash flow on an annual basis. Our focus remains on managing the business to enable sustainable cash flow generation through efficient growth across our data, solutions, and satellite services revenue streams. At the end of FY 2026, our remaining performance obligations, or RPOs, were approximately $852.4 million, up about 106% year-over-year, of which approximately 34% apply to the next twelve months and 65% to the next twenty-four months. We estimate our backlog, which includes contracts with the termination for convenience clause, to be approximately $900 million, up approximately 79% year-over-year. Approximately 37% of our backlog applies to the next 12 months and 67% to the next 24 months. Let me now turn to our guidance for the first quarter and full fiscal year 2027. In Q1, we're expecting revenue to be between $87 million and $91 million, which represents approximately 34% year-on-year growth at the midpoint. We expect non-GAAP gross margin for the quarter to be between 49% and 51%. The step-down is driven by our satellite services contracts, the mix of deals with AI-enabled partner solutions, and investments in our next-generation fleets. Our range for Adjusted EBITDA in the quarter is expected to be between -$6 million and -$3 million, reflecting our investments to drive sustained growth. We are planning for capital expenditures of approximately $17 million-$23 million in the quarter. For the full fiscal year 2027, we expect revenue to be between $415 million and $440 million, representing approximately 39% growth at the midpoint. We believe our backlog provides us with strong visibility to our revenue projections, which is enabling us to raise our growth expectations for the year. Our non-GAAP gross margin for the year is projected to be between 50% and 52%, in line with our prior expectations and driven by the forecasted mix of business. We anticipate margins will expand as we realize returns on our growth investments in subsequent years. We are targeting Adjusted EBITDA profit for fiscal 2027 of between breakeven and $10 million, reflecting our desire to maintain EBITDA profitability on an annual basis, even as we continue to invest in our space systems capabilities, AI-powered solutions, and our global sales and marketing organization. We also aim to deliver Rule of 40 for this fiscal year, where Rule of 40 is our revenue growth rate plus Adjusted EBITDA margin. We are planning for approximately $80 million-$95 million in capital expenditures for the year, reflecting the necessary investments in our next-generation satellites to meet accelerating market demand. Even with these operating and capital expenditures, we expect to be free cash flow positive on an annual basis again in fiscal year 2027, with a focus on sustaining and expanding free cash flow generation into the future. As a reminder, while cash flow can vary quite significantly quarter to quarter based on the timing of cash collections and capital outlays for procurements, our ultimate objective is generating sustainable annual positive cash flow. To close, the incredible momentum we generated in fiscal year 2026 provides us with a strong foundation for the future. Given the strength of our backlog and our robust pipeline, we have significant visibility into our continued revenue growth, and as our revenue scales, we anticipate non-GAAP gross margin expansion as well as Rule of 40 for fiscal year 2028 and beyond. This gives us the confidence to invest into the massive market opportunity unfolding in front of us, and as Will mentioned, we are leaning into these trends and playing to win. As always, Will and I are incredibly grateful for the outstanding execution, dedication, and teamwork of our Planeteers around the globe. Fiscal 2026 was a standout year because of you, and we're excited for the year ahead. Operator, that concludes our comments. We can now take questions. Thank you. We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, press star one on your telephone keypad. If you would like to withdraw your question, press star one again. Pardon me. Your first question comes from the line of Colin Canfield from Cantor. Your line is open. Please go ahead. Can you perhaps update us on the timing and the scaling of both the Suncatcher opportunity as well as what sounds like a pretty nascent geointelligence platform with NVIDIA? If you could maybe talk about how much of that was included in the set of opportunities from the Investor Day. Thank you. Well, both are very exciting opportunities and in a way, both involve both a space component and an AI component. Let me talk to the Google one first since you brought that up. Suncatcher, it's going well. It's early days. Just to recap that project, you know, this is about putting their TPUs into space. It's an early tech demo. That is what we're doing right this second for them. There's a lot of interest in that space that you've seen in recent months. It's very exciting. It's heating up. But we're focused on executing towards those research goals, and there's a big potential market there long term. As Sundar put it, I think within 10 years, he expects most compute spending to go into orbit. That's a big amount of money. That's a huge market to go after, but we're very early days. You know, it's exciting. We're staying focused on executing on those early missions. To NVIDIA, yeah, that is also exciting. It was great to announce that extension of our partnership. It's also a research partnership at this stage. You all know about the fact that we've been putting those NVIDIA GPUs into orbit on our Pelican spacecraft, which is pretty cool. This is actually more focused on the compute on the ground, how we leverage their GPUs, in particular, to speed up our data preprocessing pipeline. You know, in an increasingly fast-changing world, people want those answers really quickly. GPUs have the potential to really speed things up, and we've seen some early results that are very promising, where big speedups, like 100x on certain parts of our coding base. Getting answers to our clients faster is really important. AI research collaboration, they're leaning in, and we are leaning in too. It's very exciting. But as to the revenue implications, I don't know if you wanted to touch on that, Ashley. No, I mean, I would just remind you that the Suncatcher partnership is structured as an R&D partnership, so it's recognized as contra revenue. With respect to the NVIDIA partnership, that's really just a research collaboration. Yes. R&D. Got it. Then as we think about imputing working capital tailwinds for 2027, is there a right framework to think about it maybe as like a percentage of the backlog increase or kind of high level, kind of what are the building blocks of working capital that we should consider? First of all, I just want to correct myself. I made a misstatement on my prior answer. It's not contra revenue, it's contra R&D expense. Thanks for letting me clarify that. As for your second question, in terms of the building blocks for working capital, obviously, as I said, as we are acquiring investments to execute on our backlog, so that includes all of the capital expenditures we need to make to build out the Pelicans for our customers. That obviously will weigh into the procurements quarter to quarter. The nice thing about the way these contracts are structured is they typically provide us upfront capital to match the timing of those expenses, at least on an annual basis. There may be differentials quarter to quarter as to when we make procurements and when we receive milestone payments. As I said in the prepared remarks, cash flow is expected to vary quarter to quarter, but on an annualized basis, these contracts really enable us to operate the business in a free cash flow positive way. Got it. Thank you. Thank you for the color. Appreciate it. Your next question comes from the line of Ryan Koontz from Needham & Company. Your line is open. Please go ahead. Great. Thanks for the questions and congrats on a great quarter and outlook. Starting with maybe some of the segment, what your real strength you saw in Europe in the quarter, I wonder if you can maybe unpack that for us. You know, what were some of the drivers behind that? Obviously a lot of defense work there, but any kind of color you can give us on the European market and how that's been progressing so well for you. Yeah. Well, maybe I can just kick it off. I spent quite a big fraction of the quarter in Europe, going to a number of capitals, speaking to a lot of our customers there. The demand is off the charts. We are leaning into it as best we can, both for our data and AI solutions and constellation services. We talked about the interest in that going up. Yeah, I mean, it's back to the geopolitical dynamics, right? That's what's underneath this and driving a lot of this demand. They need their own sovereign systems. They need it quickly. They need speed and sovereignty, and we can offer both of those things. Speed, immediate access to our Planet satellites. Sovereignty, building satellites dedicated for them. Even that we can do very swiftly compared with anyone else. Our history of having launched hundreds of satellites really puts us in a great position to do that. That's the sort of demand signal. Ashley, toward the breakdown, I don't know if you want to comment at all on that. We provide the breakdown in the materials. I would just say, you know, we have historically had a very strong presence in Europe, and have a strong team in Berlin foundationally, and we've built on that with acquisitions that have given us presence in the Netherlands as well as in Slovenia. That really helps us when we're engaging with governments across both their civil and defense and intelligence needs. If I could just add one more final thing, of course, our commitment to building satellites there in Berlin adds to that interest. I mean, we both needed it for expanded manufacturing for our Pelicans, and it lent into the European demand because, of course, that helps connect the dots there. Sure. That's great. Just any comments around supply chain right now? Is it getting more difficult to acquire the types of kind of key components you need on the supply chain side? Not really, no. We're not seeing anything material. Obviously, it's something that we track carefully and our teams are always seeking to diversify our supply chain sources. Got it. Thanks so much, guys. Thank you. No worries. Your next question comes from the line of Edison Yu from Deutsche Bank. Please go ahead. Thank you very much and congratulations on the quarter. Wanted to come back to the AI element. You talked a little about LLMs. What's the latest, I guess, status on the Anthropic partnership, and have we kind of progressed further from kind of just testing or early testing the models or the training? Yeah, I mean, AI in general, as I said, we're moving from this world of LLMs that can tell you about things about the text of the internet to how models are increasingly trying to move towards real-world models and real-world models needing real-world data. Planet has this stack that's necessary. We're doing these research collaborations that we've mentioned, and they're very exciting. What they're really building a foundation towards is, you know, we've been building these bespoke solutions, these what we call AI-enabled solutions for our broad area PlanetScope daily scan. The maritime domain awareness solution, the global monitoring solution, and the area monitoring solution for civil government. Those are really good, and they're starting to take off, and that's what's driving a lot of the great growth that you're seeing in the numbers. AI has this potential of making that more generic. That is, that anyone can turn up, build their own bespoke application of equivalent fidelity in short order, like maybe within an hour, and, you know, in a completely bespoke way for their needs. That is just on the horizon. What we're focused on with those research collaborations is how we can build towards that capability. That is what I mean. What's so exciting about that is the ability to unlock all the potential of our data, especially for commercial and civil government markets where we've been less focused of late because of the strong interest on the defense and intelligence side. They are huge markets for Planet. Basically, that's the direction and leaning of those partnerships is enabling us to build out that capability to expand the TAM. Absolutely. Does that answer the question? Just a follow-up on that. Yeah. Yeah. Yeah, just a follow-up on that. To get there, I guess, what do you see as the biggest, I don't know if you want to say bottleneck or thing we should look out for? Is it a question of just you need more compute? Is it a question of just- Mm. You know, it takes time, more training? Like, how do you think about, like, the path there and the bottlenecks? Well, it's complex and evolving in that, the space is changing so fast. I mean, literally, we are seeing capabilities that just a couple of months ago we weren't able to do because of the advances in especially coding. Like that makes it, now that you can even build whole applications very quickly. We are just seeing that, potentially take off much faster than we thought. There's nothing really standing in the way per se. We have the data, that's the critical ingredient, and it's the differentiating ingredient for AI. As I said briefly, like, I mean, in many ways, AI, it's commoditizing the software layer more, that's making the data piece most useful for AI. You know, that's very differentiating that we have such this unique data set coming into it. There's nothing holding us back there. It's moving very fast. That's why I was saying that I think you're gonna start to see this come to fruition this year. Watch this space. Amazing. Thank you. Your next question comes from the line of Kristine Liwag from Morgan Stanley. Please go ahead. Hi, this is Gaby on for Kristine Liwag. Congratulations on the quarter. Just given your recent decision to extend the satellite imagery delay in the Middle East to 14 days as a result of the ongoing conflict, have you seen any changes in customer behavior, and are there any potential contractual implications that we should maybe be aware of? Yeah. I mean, the short answer is nothing material. Look, what we're focused on there is helping our critical customers in the region do the things they need, which is get critical answers fast and trying to help them through that. We're focused and mainly heads down on supporting those customers in this critical time as best we can. The delay is a lot to do with the balance of thinking about those operational needs and making sure we don't put people in harm's way, and it's very genuine needs. At the same time, our transparency and accountability mission that we care about and ensuring all of our actors get access eventually. It's a carefully thought through decision. We're just trying to do our best to help the people that need it. Great. Thank you. Super helpful color. If I could ask a quick follow-up. I mean, you announced the satellite services agreement with Sweden in January. Can you just talk about how you're seeing the pipeline for similar deals progressing relative to what you had laid out at the Investor Day? What are you seeing in terms of conversion timelines and potential scale of upcoming opportunities? Yeah, I mean, as I've mentioned in my prepared remarks, since that October Investor Day, both the number and the average size of those deals has been increasing. I mean, just to give you a sense that it is a strong market demand right now, even stronger than we had said then. You know, it's a bit too early to talk about sort of average deal length because it's just these are very few in number, right? I haven't got any comments to that effect, but overall, the demand is very strong. Great. Thanks so much. Your next question comes from the line of Jeff Van Rhee from Craig-Hallum Capital Group. Please go ahead. Great. Thanks for taking the questions, guys. Congrats, a lot here to love. Let me start first with civil commercial, about 40%, a little less than that as a percent of revenues. What do you think? You know, when you look at those markets, obviously DNI is killing it. You've got a lot of sovereign deals flowing through and it makes sense to be pursuing those deals. I'm wondering how you think about civil and commercial and what dynamics have to play out for those markets to reaccelerate. Well, as I said, see earlier answer to Edison about the AI piece, because that's what unlocks these things, and enables it. We're just on the precipice of that. Yeah, I see that beginning to come this year. Just to be clear, in my opinion, the biggest markets are those two segments, not defense and intelligence. Mm-hmm. We think that is a long and sustaining and really great market. The civil government market is huge. The commercial market is huge. It's been lacking those critical solutions. Here we have a generic way of crossing that chasm to the fuller solution that enables us to unlock that market. We know those capabilities, that those answers are latent in our data, and this gives the bridge to the actual solution that the customers need. I mean, you know, it's back to my earlier point. AI is gonna enable it, and I think we're gonna see the beginnings of that really take off this year. Over to the sovereign deals for a second. I mean, obviously, three mega deals here, roughly trailing 12 months, give or take. You know Yeah. It sounds like the pipeline has expanded. Sounds like you're thinking, you know, deal count there should improve. I mean, just any other observations on those sovereign deals, on the magnitude of the growth in the pipeline? Sounds like it really accelerated even further potentially in the last 90 days. No, I didn't want to quantify that, but just give you a sense that it is really growing and it's very strong. Yeah, that's it. The only Okay. Another thing that I would add, Jeff, which I think is an important point, is that when we are selling these sovereign capabilities, we are coupling with that our data and solutions. It actually is the synergies across that that is a competitive differentiator because we can drive value to these customers out of the gate. We can give them visibility and intelligence that they didn't have before as we work with them over the longer term contract to build out what their sovereign capabilities will ultimately be. It's worth pointing out that actually a lot of our backlog growth is in data and solutions. In fact, that part of the backlog has almost doubled year-over-year. No, that's great color. Last one, if I could, just on the Owl. Any updates there that you could share? Yeah. I mean, we're building that tech demo as we announced last year towards that improved daily scan capability. The team's working hard on it. It's going well. It's quite an incredible capability that we're obviously building there. Just remind everyone that we're moving towards 1-meter scan rather than 3-meter, and that's roughly 10x more data per unit area of the ground and roughly a 10x improvement in latency as well, because they will be equipped with both onboard compute systems as well as satellite-to-satellite comms so that we can get the data back as well. Those things are all gonna be faster as well, so much lower latency of 10x there too. It's really a significant improvement on that system. Yeah, we're looking forward to launching a demo. Sounds great. Thanks, guys. Thanks, Jeff. Your next question comes from the line of John Gooden from Citibank. Please go ahead. Hey, guys. Thanks for taking my question. Really appreciate it. I just wanted to square off the backlog strength and all of the positive commentary with revenue guidance. The revenue guidance is fantastic, don't get me wrong, but even so, it just seems like there's upside to it based on the commentary of, you know, incredibly strong demand signals, particularly in Europe, as well as the fact that as a percentage of the backlog that you guys have right now, it doesn't seem like the revenue guide is particularly large percentage versus maybe how you've set guidance in the past. Yeah. It's obviously a good question, John. We're in a really favorable position right now in terms of the level of visibility that we have. Obviously, there's a lot of execution that goes into turning backlog into revenue, and we are laser-focused on that. In terms of setting guidance, I think what you've seen from us, particularly in recent periods, is we try to give ourselves room for the fact that, you know, on these big mission-critical types of transactions and contracts, there are things that can shift from quarter to quarter, and we wanna give room in our guidance for that to happen so that we can keep our customers, you know, front and center, around execution. Similarly, we have a great pipeline of opportunity, but when those deals land, given how big they can be, can really impact revenue in the year. We tend to assume that new signings are back-half loaded, which give us opportunity to deliver upside if that doesn't end up being the case, if it ends up landing sooner. Doesn't put us in a position where we're out over our skis in terms of the numbers we've given you. Okay. That makes a lot of sense. It sounds like, you know, that there are some layers of conservatism in there which is appropriate, and we'll see how that plays out throughout the year. If I could ask one more. Just in terms of the activities in the Middle East, the conflict there, do you feel that has additionally kind of turbocharged the demand for your product in any way? I know the backdrop is strong, but has that had an obvious impact, you know, as sort of a recent event? Well, obviously, there's a huge amount of focus in that. Again, as I said earlier, we're just focused on delivering pieces. We're doing mission-critical things. We're trying to focus on that. We'll see. It's early days. Yeah. I think, you know, one of the things that we have seen in these types of situation is you do see an increase in usage as there's just more urgency in getting as much data as possible around the situation. You know, ultimately, as Will said, situations like this can be very dynamic. Got it. Thank you. Your next question comes from the line of Trevor Walsh from Citizens. Please go ahead. Great. Hey, all. Thanks for taking my questions. Will, you called out the SHIELD IDIQ in your prepared remarks. Could you maybe just give us a sense? I know early days on this, very large project, and a lot of it's sensitive, but can you give us a sense of how you're thinking about that opportunity? Is that something where it's just kind of bread and butter Planet Labs Earth observation data that you would be providing for that as you go after contracts and opportunities there? Or might it even look like something more akin to satellite services, where you might even just building spacecraft that are fairly non-traditional for you guys, but just being used for all the things that are part of that project? Well, yeah. As you say, it's early days. There's obviously a big opportunity. There's you know, huge budget behind it. The specific ways in which we fit in will have to be figured out as we understand the architecture, and they're still working on many of those aspects. There are, of course, ways in which our present data sets could fit into that early warning of certain things, strategic analysis across broad areas. That obviously makes sense. Right now, that is merely a vehicle, and then we'll compete on awards within that, and that's the same for all the people that have got awards under that system. Yeah. Obviously finding unknown unknowns, you know, there could be specific missions, but it's very early days to be thinking about that. What I will say is that we're continuing to lean into specific opportunities that are very live right now, like in with INDOPACOM, with our Navy customers and others. You know, we're seeing a lot of interest in COCOMs around the world. The department has a lot of interest across the board, and we're leaning into it. Great. Awesome. Appreciate that. Ashley, maybe just one follow-up for you. I appreciate the color you gave around free cash flow. I know you guys aren't giving an official guide, but just given how strong you guys ended this current fiscal year and as we think about 2027, there can be a bit of a step down from just going from $50 million to something that's just generally positive. So just wanna make sure we don't get just given the CapEx spend and everything else, if you could just give us a little bit of maybe guardrails as to how we think about that for 2027, that would be great. Yeah. I mean, first I'll just reiterate the point that I made. We definitely expect there to be pretty significant fluctuations quarter to quarter. Just like I said, timing of procurement versus timing of milestone payments can cause, you know, one quarter to be much more positive and another quarter to be, you know, significantly negative. That's one caution that I provide. That makes it a little bit harder to give, you know, very precise guidance around it, which is why I haven't. To your point, you know, depending on, you know, how much more of this opportunity we continue to realize, it would not make sense for us to optimize expanding free cash flow on the year versus setting ourselves up to both deliver against the contracts we have and to bring more on. If that offers enough color to you without giving specific guidance, which I'm really not in a position to do, we're not focused on, you know, kind of, sustaining or expanding free cash flow from last year, but really focused on. Great balancing it quarter to quarter and leaning into the market. That makes sense. That's helpful. Thanks, Ashley. Yeah. Thank you. Your next question comes from the line of Greg Pendy from Clear Street. Please go ahead. Hey guys, thanks for taking my question. Just one quick one just so that I understand kind of the approach on this year of leaning in in terms of the commercial and civil side. I mean, it's hard to think back, but it you know, you did have a cost rationalization program at one time, and your sales and marketing is down around 15% from fiscal 2024, yet your revenues are up roughly 40%. Is it kind of that the customers through Anthropic will figure out how to use the data and how valuable it is into their daily workflows? Or do you think that you know, you'll need some boots on the ground to educate the civil and commercial markets? Thanks. Yeah. Greg, it's a very good call-out. We did, you know, realign the team across the board to really focus on where we had the largest account opportunities, which I think did disproportionately impact, you know, how much resource we were putting behind going after a more distributed commercial market. As we said, we were building out the platform to enable smaller customers to really access the data on a self-serve basis. I think as we are growing those markets and leaning into the AI that Will highlighted, we will be making some targeted investments in those markets where we're seeing the most traction out of the gate. We do have feet on the street going and meeting with customers and demonstrating for them. That is a really exciting part of these new capabilities that we have, is we can really show not tell in these customer meetings all the insights you can extract from the data to answer their specific questions. We did a lot of training with our sales team earlier this year, really showing them how to use these tools in demo environments. Obviously, the world has changed a lot in the last six years. You can do a lot of that without putting people on airplanes. But it will require some investments across sales and marketing. I did highlight that as one of the investment areas for us this year. That's very helpful. Thanks a lot. Your next question comes from the line of Alex Latimore from Northland. Please go ahead. Hey, guys. Excellent quarter. Alex Latimore here for Michael Latimore. I had one question. I just wanted to hit on guidance one more time. Good raise on guidance. I was wondering if you could talk about what assumptions are factored into that raise on guidance. Does this assume any new eight-plus figure wins or any commentary there? Yes. Thanks, Alex. I'd say we're very balanced in terms of how we think about about those types of opportunities that may be in our pipeline, because obviously those could swing outcomes based on whether they come in or not. Typically what we'll look at is a pipeline of opportunity where if an eight-figure deal were to fall out of the pipeline, what type of backup we have for that opportunity and then probability adjust it. We are definitely looking at active opportunities, probabilities, and then giving ourselves room for those deals where maybe we don't have enough pipeline and make up for that one landing on time or in the year, which gives us opportunity to outperform. Like I said earlier, it doesn't put us in a position where we feel over our skis. Awesome. One more. I just wanted to hear if there's any footholds in the Golden Dome initiative. I understand there was a $10 billion incremental add to the Golden Dome initiative for space-based capabilities. I'm not sure if you're seeing any demand there for Planet systems. Any commentary around Golden Dome would be helpful. Yeah. I sort of said all that I can on that at the minute. It's very early days as they're architecting that system, and there are potentially. That's, you know, the SHIELD IDIQ, just to be clear, is Golden Dome. That answer was about that. Again, it's a framework that we have, and now we will bid for actual awards under that program. We don't know what they are exactly yet. When we do, we will respond. Per my earlier answer, the general thing is giving domain awareness and other things that could be useful for that. We obviously have to see, wait and see what comes through that. Mm-hmm. Awesome. Excellent quarter. Thanks, guys. Thank you. Your next question comes from the line of Caleb Henry from Quilty Space. Please go ahead. Hi, guys. Thanks for the call. Couple of questions on satellite manufacturing. Actually, first one, sorry, on Pelican. I've noticed that you guys lowered one of the Pelican satellites a little past 400 kilometers recently. Is that part of a larger fleet migration to a very low Earth orbit, or is there another way that we should think about that? Yeah. We lower spacecraft, of course, to the operational altitudes. Pelican, part of the reason we call it Pelican was to fly low. Pelicans fly low to the water, and so we were sort of mimicking that when we were talking about this. They have ion engines such that they can fly really low. In time, that is part of the process that gets us to the 30 centimeter ultimate resolution target for those missions. But no changes to the plan. Those were just operational adjustments as we will start always with the satellites in a slightly higher orbit and bring them down to operational orbits as we progress. By the way, you may just on Pelican, you may wanna look in the associated deck with this earnings. There's a few really cool pictures of some of the fast response timelines that we had three pictures in about a year. It's very exciting to see. Seven hours in an hour. No, yeah. In about an hour. I just had the great performance of that system, so it's very exciting and we've got multiple launches for more of those systems going out this year, so it's exciting times. Was there a broader question about the manufacturing? Yeah. I definitely kinda looked through those pictures. Looking at the contract for Sweden and tying that into manufacturing, is that, can you give a sense of when those satellites are supposed to be delivered and how many satellites? Is that sort of the reason for the ramp up in manufacturing space in California? Nothing specific I gotta say specifically to that customer, but we're ramping up because of the demand overall, right? We're building fleets for multiple customers as well as for our own system. That demand is obviously already clear, such that we're expanding here in San Francisco and in Berlin. Okay. Last question, I was just curious if you could shed more light on what makes 2026 the year you first anticipate seeing a return on investment on AI. Was there more of an aha moment that happened or is this just the natural evolution of the years of investment and how customers use Planet data? Yeah, that's an oversimplification because, I mean, we've had revenue from AI a fair bit before. What I meant is in terms of the big way in which AI can unleash those other market potential, and I think we're gonna really start to see those generic solutions that I mentioned, ways in which anyone can turn up, build a application, that's relevant to their needs and then start getting value. That unlocks other markets that we've been talking about for years that are latent in our data, agriculture, energy, insurance, finance, so on. I think that it's just more that I see that all the pieces are coming together such that that will come to fruition this year and you'll start to really see that take off. Just like, you know, the constellation services or satellite services really started to take off in FY 2026. Thank you. That's all the time we have for questions today. I will now turn the call back to Will Marshall, CEO and Co-Founder, for closing remarks. Well, I'll just say that, obviously it's great to see the business doing great, both in the satellite services and in the AI powered solutions side. We're very proud of the financials that we reported today, not just the beating the revenue expectations, but I'm especially proud of the backlog improvement to $900 million and achieving the Rule of 40 again in a quarter. It really has set us up for a strong foundation for this coming year. Given that backlog and confidence in our pipeline, we've projected, you know, quite strong growth again for this year, and that's why, and even for years that follow, which is why we're investing this year, strongly, into that market opportunity. Like I was just saying, this is the year for AI for Planet and I think this bridge of the solutions gap will unleash a huge opportunity latent in Planet's data. I just wanna end by thanking our teams as we started around the globe that have enabled all of this to be possible. Thanks again for joining, everyone. This concludes today's call. Thank you all for attending. You may now disconnect.

Speaker 11: Fiscal fourth quarter and full year 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. I will now hand the conference over to Cleo Palmer-Poroner, Director of Investor Relations. Please go ahead. Fiscal fourth quarter and full year 2026 earnings call. fiscal fourth quarter and full year 2026 earnings call After today's prepared remarks, we will host a question and answer session. after today's prepared remarks we will host a question and answer session If you would like to ask a question, please press star one on your telephone keypad. if you would like to ask a question please press star one on your telephone keypad I will now hand the conference over to Cleo Palmer-Poroner, Director of Investor Relations. i will now hand the conference over to cleo palmer-poroner director of investor relations Please go ahead. please go ahead

Speaker 4: Thanks, operator, and hello, everyone. Welcome to Planet's fiscal fourth quarter and full year 2026 earnings call. I'm joined by Will Marshall and Ashley Johnson, who will provide a recap of our results and discuss our current outlook. We encourage everyone to please reference the earnings press release and earnings update presentation for today's call, which are available on our investor relations website. Before we begin, we'd like to remind everyone that we will make forward-looking statements related to future events or our financial outlook. Any forward-looking statements are based on management's current outlook, plans, estimates, expectations and projections. The inclusion of such forward-looking information should not be regarded as a representation by Planet that future plans, estimates or expectations will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions as detailed in our SEC filings, which can be found at www.sec.gov. Thanks, operator, and hello, everyone. thanks operator and hello everyone Welcome to Planet's fiscal fourth quarter and full year 2026 earnings call. welcome to planet's fiscal fourth quarter and full year 2026 earnings call I'm joined by Will Marshall and Ashley Johnson, who will provide a recap of our results and discuss our current outlook. i'm joined by will marshall and ashley johnson who will provide a recap of our results and discuss our current outlook We encourage everyone to please reference the earnings press release and earnings update presentation for today's call, which are available on our investor relations website. we encourage everyone to please reference the earnings press release and earnings update presentation for today's call which are available on our investor relations website Before we begin, we'd like to remind everyone that we will make forward-looking statements related to future events or our financial outlook. before we begin we'd like to remind everyone that we will make forward-looking statements related to future events or our financial outlook Any forward-looking statements are based on management's current outlook, plans, estimates, expectations and projections. any forward-looking statements are based on management's current outlook plans estimates expectations and projections The inclusion of such forward-looking information should not be regarded as a representation by Planet that future plans, estimates or expectations will be achieved. the inclusion of such forward-looking information should not be regarded as a representation by planet that future plans estimates or expectations will be achieved Such forward-looking statements are subject to various risks and uncertainties and assumptions as detailed in our SEC filings, which can be found at www.sec.gov. such forward-looking statements are subject to various risks and uncertainties and assumptions as detailed in our sec filings which can be found at www.sec.gov Our actual results or performance may differ materially from those indicated by such forward-looking statements, and we undertake no responsibility to update such forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. During the call, we will also discuss historic and forward-looking non-GAAP financial measures. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. For more information on the non-GAAP financial measures, please see the reconciliation tables provided in our press release issued earlier today, which is available on our website at investors.planet.com. Our actual results or performance may differ materially from those indicated by such forward-looking statements, and we undertake no responsibility to update such forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. our actual results or performance may differ materially from those indicated by such forward-looking statements and we undertake no responsibility to update such forward-looking statements to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events During the call, we will also discuss historic and forward-looking non-GAAP financial measures. during the call we will also discuss historic and forward-looking non-gaap financial measures We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. we use these non-gaap financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. we believe that these measures provide useful information about operating results enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making For more information on the non-GAAP financial measures, please see the reconciliation tables provided in our press release issued earlier today, which is available on our website at investors.planet.com. for more information on the non-gaap financial measures please see the reconciliation tables provided in our press release issued earlier today which is available on our website at investors.planet.com Further, throughout this call, we will provide a number of key performance indicators used by management and often used by competitors in our industry. These and other key performance indicators are discussed in more detail in our press release and our earnings update presentation, which are intended to accompany our prepared remarks. At this point, I'd now like to turn the call over to Will Marshall, Planet's CEO, Chairperson, and Co-founder. Over to you, Will. Further, throughout this call, we will provide a number of key performance indicators used by management and often used by competitors in our industry. further throughout this call we will provide a number of key performance indicators used by management and often used by competitors in our industry These and other key performance indicators are discussed in more detail in our press release and our earnings update presentation, which are intended to accompany our prepared remarks. these and other key performance indicators are discussed in more detail in our press release and our earnings update presentation which are intended to accompany our prepared remarks At this point, I'd now like to turn the call over to Will Marshall, Planet's CEO, Chairperson, and Co-founder. at this point i'd now like to turn the call over to will marshall planet's ceo chairperson and co-founder Over to you, Will. over to you will

Speaker 14: Thanks, Cleo, and welcome everyone joining us today. Last year was transformational for Planet, and I'm proud of everything that our team accomplished. We made incredible progress in the satellite services market, signing a EUR 240 million agreement funded by Germany and a nine-figure deal with Sweden, capping off three such deals in 12 months. We launched 40 satellites, including four of our high-resolution Pelican satellites, invested strongly in AI and announced a cutting-edge partnership with Google to demonstrate satellites for compute in space. We delivered record annual revenue, Adjusted EBITDA profitability, positive free cash flow and accelerated our revenue growth. We laid out a strong foundation for the year ahead, enabling us to continue that growth acceleration. Let's dive in. Thanks, Cleo, and welcome everyone joining us today. thanks cleo and welcome everyone joining us today Last year was transformational for Planet, and I'm proud of everything that our team accomplished. last year was transformational for planet and i'm proud of everything that our team accomplished We made incredible progress in the satellite services market, signing a EUR 240 million agreement funded by Germany and a nine-figure deal with Sweden, capping off three such deals in 12 months. we made incredible progress in the satellite services market signing a eur 240 million agreement funded by germany and a nine-figure deal with sweden capping off three such deals in 12 months We launched 40 satellites, including four of our high-resolution Pelican satellites, invested strongly in AI and announced a cutting-edge partnership with Google to demonstrate satellites for compute in space. we launched 40 satellites including four of our high-resolution pelican satellites invested strongly in ai and announced a cutting-edge partnership with google to demonstrate satellites for compute in space We delivered record annual revenue, Adjusted EBITDA profitability, positive free cash flow and accelerated our revenue growth. we delivered record annual revenue adjusted ebitda profitability positive free cash flow and accelerated our revenue growth We laid out a strong foundation for the year ahead, enabling us to continue that growth acceleration. we laid out a strong foundation for the year ahead enabling us to continue that growth acceleration Let's dive in. let's dive in To briefly summarize the full year results, we generated a record $308 million in revenue, representing approximately 26% year-over-year growth. Non-GAAP gross margin was 59% for the year. Adjusted EBITDA profit came in at $15.5 million and free cash flow was $53 million, representing our first full fiscal year of non-GAAP profitability, an excellent milestone for the team as we strike a balance between profit and growth. Q4 was also a record for revenue, representing 41% year-over-year growth and our fifth consecutive quarter of Adjusted EBITDA profitability. For the second sequential quarter, we achieved Rule of 40, which is our revenue growth plus Adjusted EBITDA margin, and on an annual basis we achieved Rule of 30, a full year earlier than we anticipated. To briefly summarize the full year results, we generated a record $308 million in revenue, representing approximately 26% year-over-year growth. to briefly summarize the full year results we generated a record $308 million in revenue representing approximately 26% year-over-year growth Non-GAAP gross margin was 59% for the year. non-gaap gross margin was 59% for the year Adjusted EBITDA profit came in at $15.5 million and free cash flow was $53 million, representing our first full fiscal year of non-GAAP profitability, an excellent milestone for the team as we strike a balance between profit and growth. adjusted ebitda profit came in at $15.5 million and free cash flow was $53 million representing our first full fiscal year of non-gaap profitability an excellent milestone for the team as we strike a balance between profit and growth Q4 was also a record for revenue, representing 41% year-over-year growth and our fifth consecutive quarter of Adjusted EBITDA profitability. q4 was also a record for revenue representing 41% year-over-year growth and our fifth consecutive quarter of adjusted ebitda profitability For the second sequential quarter, we achieved Rule of 40, which is our revenue growth plus Adjusted EBITDA margin, and on an annual basis we achieved Rule of 30, a full year earlier than we anticipated. for the second sequential quarter we achieved rule of 40 which is our revenue growth plus adjusted ebitda margin and on an annual basis we achieved rule of 30 a full year earlier than we anticipated End-of-period backlog was over $900 million, approximately 79% growth year-on-year, providing us with excellent visibility to accelerating our revenue growth for the coming fiscal year. Defense and intelligence was a major area of strength for us in FY 2026, underpinned by global dynamics. Full-year D&I revenue grew over 50% year-on-year, driven by strong performance in our data subscriptions, solutions and satellite services. To recap our role here, Planet was founded on a core mission of making information about our world visible, accessible and actionable to help both sustainability and security globally. As the geopolitical landscape shifts, security is an urgent mandate for governments worldwide, and our customers face mission-critical decisions in an increasingly complex and chaotic world, and this mission is critical to them. We view security as inextricably linked to sustainability. End-of-period backlog was over $900 million, approximately 79% growth year-on-year, providing us with excellent visibility to accelerating our revenue growth for the coming fiscal year. end-of-period backlog was over $900 million approximately 79% growth year-on-year providing us with excellent visibility to accelerating our revenue growth for the coming fiscal year Defense and intelligence was a major area of strength for us in FY 2026, underpinned by global dynamics. defense and intelligence was a major area of strength for us in fy 2026 underpinned by global dynamics Full-year D&I revenue grew over 50% year-on-year, driven by strong performance in our data subscriptions, solutions and satellite services. full-year d&i revenue grew over 50% year-on-year driven by strong performance in our data subscriptions solutions and satellite services To recap our role here, Planet was founded on a core mission of making information about our world visible, accessible and actionable to help both sustainability and security globally. to recap our role here planet was founded on a core mission of making information about our world visible accessible and actionable to help both sustainability and security globally As the geopolitical landscape shifts, security is an urgent mandate for governments worldwide, and our customers face mission-critical decisions in an increasingly complex and chaotic world, and this mission is critical to them. as the geopolitical landscape shifts security is an urgent mandate for governments worldwide and our customers face mission-critical decisions in an increasingly complex and chaotic world and this mission is critical to them We view security as inextricably linked to sustainability. we view security as inextricably linked to sustainability Resource scarcity and climate disasters are not just environmental issues. They are direct threat multipliers or even triggers for conflict. The defense and intelligence sector is essential to realizing our mission. Our customers rely on us to help identify unknown unknowns, detect changes and warning signals that they didn't know to look for before they escalate into crisis, is a critical part of our purpose. To highlight a few recent customer wins in this area, during the quarter, we received two awards from the U.S. Defense Innovation Unit. We were awarded a seven-figure extension of our pilot in support of Indo-Pacific Command to deliver vital indications and warnings. The short-term contract demonstrates how customers can leverage Planet data and AI-powered analytics to monitor sites of strategic interest for critical changes and threats. Resource scarcity and climate disasters are not just environmental issues. resource scarcity and climate disasters are not just environmental issues They are direct threat multipliers or even triggers for conflict. they are direct threat multipliers or even triggers for conflict The defense and intelligence sector is essential to realizing our mission. the defense and intelligence sector is essential to realizing our mission Our customers rely on us to help identify unknown unknowns, detect changes and warning signals that they didn't know to look for before they escalate into crisis, is a critical part of our purpose. our customers rely on us to help identify unknown unknowns detect changes and warning signals that they didn't know to look for before they escalate into crisis is a critical part of our purpose To highlight a few recent customer wins in this area, during the quarter, we received two awards from the U.S. to highlight a few recent customer wins in this area during the quarter we received two awards from the u.s Defense Innovation Unit. defense innovation unit We were awarded a seven-figure extension of our pilot in support of Indo-Pacific Command to deliver vital indications and warnings. we were awarded a seven-figure extension of our pilot in support of indo-pacific command to deliver vital indications and warnings The short-term contract demonstrates how customers can leverage Planet data and AI-powered analytics to monitor sites of strategic interest for critical changes and threats. the short-term contract demonstrates how customers can leverage planet data and ai-powered analytics to monitor sites of strategic interest for critical changes and threats DIU also exercised an option under the existing Hybrid Space Architecture pilot with Planet for just under $1 million to demonstrate the cutting-edge capabilities for our high-resolution Pelican satellites. During the quarter, NATO's Allied Command Transformation also extended its agreement with Planet to deliver persistent space-based surveillance and enhanced indications and warning capabilities. The award underscores Planet's position as a trusted and essential partner for customers seeking strategic indications and warnings across broad domains. Finally, last month, the U.S. Missile Defense Agency selected Planet as a prime contractor for the SHIELD IDIQ contract vehicle. Planet will now compete for awards under that program. Turning to the civil government sector, where full-year revenue was flat year-over-year. To share some recent highlights, during the quarter, Planet was awarded a seven-figure renewal and expansion by the German Federal Agency for Cartography and Geodesy, or BKG. DIU also exercised an option under the existing Hybrid Space Architecture pilot with Planet for just under $1 million to demonstrate the cutting-edge capabilities for our high-resolution Pelican satellites. During the quarter, NATO's Allied Command Transformation also extended its agreement with Planet to deliver persistent space-based surveillance and enhanced indications and warning capabilities. diu also exercised an option under the existing hybrid space architecture pilot with planet for just under $1 million to demonstrate the cutting-edge capabilities for our high-resolution pelican satellites. during the quarter nato's allied command transformation also extended its agreement with planet to deliver persistent space-based surveillance and enhanced indications and warning capabilities The award underscores Planet's position as a trusted and essential partner for customers seeking strategic indications and warnings across broad domains. the award underscores planet's position as a trusted and essential partner for customers seeking strategic indications and warnings across broad domains Finally, last month, the U.S. finally last month the u.s Missile Defense Agency selected Planet as a prime contractor for the SHIELD IDIQ contract vehicle. missile defense agency selected planet as a prime contractor for the shield idiq contract vehicle Planet will now compete for awards under that program. planet will now compete for awards under that program Turning to the civil government sector, where full-year revenue was flat year-over-year. turning to the civil government sector where full-year revenue was flat year-over-year To share some recent highlights, during the quarter, Planet was awarded a seven-figure renewal and expansion by the German Federal Agency for Cartography and Geodesy, or BKG. to share some recent highlights during the quarter planet was awarded a seven-figure renewal and expansion by the german federal agency for cartography and geodesy or bkg Under the one-year renewal, BKG will continue its country-wide partnership to which employees of more than 400 German federal institutions gain access to Planet's data and solutions for a wide variety of uses. As an example, this expansion will allow BKG to track permafrost thawing across the Arctic. In January, we announced an enterprise-scale agreement with Slovenia's Surveying and Mapping Authority to provide comprehensive satellite data and high-resolution tasking capabilities across the country's civil public administration in support of agriculture, urban planning, and disaster management. Shifting to the commercial sector, where annual revenue was down year-over-year. While this trend was expected, given our increased focus on large government customers and the headwinds in agriculture, we remain confident in the commercial sector as a significant market opportunity for Planet, especially as we continue to advance our AI-enabled solutions. Under the one-year renewal, BKG will continue its country-wide partnership to which employees of more than 400 German federal institutions gain access to Planet's data and solutions for a wide variety of uses. under the one-year renewal bkg will continue its country-wide partnership to which employees of more than 400 german federal institutions gain access to planet's data and solutions for a wide variety of uses As an example, this expansion will allow BKG to track permafrost thawing across the Arctic. as an example this expansion will allow bkg to track permafrost thawing across the arctic In January, we announced an enterprise-scale agreement with Slovenia's Surveying and Mapping Authority to provide comprehensive satellite data and high-resolution tasking capabilities across the country's civil public administration in support of agriculture, urban planning, and disaster management. in january we announced an enterprise-scale agreement with slovenia's surveying and mapping authority to provide comprehensive satellite data and high-resolution tasking capabilities across the country's civil public administration in support of agriculture urban planning and disaster management Shifting to the commercial sector, where annual revenue was down year-over-year. shifting to the commercial sector where annual revenue was down year-over-year While this trend was expected, given our increased focus on large government customers and the headwinds in agriculture, we remain confident in the commercial sector as a significant market opportunity for Planet, especially as we continue to advance our AI-enabled solutions. while this trend was expected given our increased focus on large government customers and the headwinds in agriculture we remain confident in the commercial sector as a significant market opportunity for planet especially as we continue to advance our ai-enabled solutions To share a few customer highlights from the quarter, specifically around our work in energy, we were awarded a renewal by San Diego Gas & Electric, which utilizes Planet data and analytics to monitor vegetation health and conditions within their service areas to manage risk of wildfires during the dry season. We also signed a strategic partnership with AiDash, establishing Planet as the preferred provider of daily and weekly fuel monitoring data for utility wildfire risk mitigation across North America. Through the partnership, leading investor-owned utilities are already using Planet data to identify where and when to deploy fuel treatment resources, reducing ignition risk and targeting high-priority clearance with precision that was not previously possible. Turning to our satellite services business. To share a few customer highlights from the quarter, specifically around our work in energy, we were awarded a renewal by San Diego Gas & Electric, which utilizes Planet data and analytics to monitor vegetation health and conditions within their service areas to manage risk of wildfires during the dry season. to share a few customer highlights from the quarter specifically around our work in energy we were awarded a renewal by san diego gas & electric which utilizes planet data and analytics to monitor vegetation health and conditions within their service areas to manage risk of wildfires during the dry season We also signed a strategic partnership with AiDash, establishing Planet as the preferred provider of daily and weekly fuel monitoring data for utility wildfire risk mitigation across North America. we also signed a strategic partnership with aidash establishing planet as the preferred provider of daily and weekly fuel monitoring data for utility wildfire risk mitigation across north america Through the partnership, leading investor-owned utilities are already using Planet data to identify where and when to deploy fuel treatment resources, reducing ignition risk and targeting high-priority clearance with precision that was not previously possible. through the partnership leading investor-owned utilities are already using planet data to identify where and when to deploy fuel treatment resources reducing ignition risk and targeting high-priority clearance with precision that was not previously possible Turning to our satellite services business. turning to our satellite services business In January, we announced a nine-figure multi-year deal with the Swedish Armed Forces to rapidly deliver a suite of satellites, space-based data and solutions to support Sweden's peace and security operations. In terms of our existing contracts for satellite services, our teams are continuing to execute well. We are progressing with the builds for our contract with JSAT and beginning to serve dedicated capacity under the German-funded contract. We're continuing to find that our satellite services contracts are a win-win-win. The customer guarantees their sovereign space capabilities in their desired area of interest. Our other clients will benefit from increased capacity and revisit rates in the rest of the world. Planet receives capital to forward fund our fleet build-outs. They also bolster our data and solutions offerings as countries want both speed and scale of our data and solutions and the sovereignty of our satellite services technology. In January, we announced a nine-figure multi-year deal with the Swedish Armed Forces to rapidly deliver a suite of satellites, space-based data and solutions to support Sweden's peace and security operations. in january we announced a nine-figure multi-year deal with the swedish armed forces to rapidly deliver a suite of satellites space-based data and solutions to support sweden's peace and security operations In terms of our existing contracts for satellite services, our teams are continuing to execute well. in terms of our existing contracts for satellite services our teams are continuing to execute well We are progressing with the builds for our contract with JSAT and beginning to serve dedicated capacity under the German-funded contract. we are progressing with the builds for our contract with jsat and beginning to serve dedicated capacity under the german-funded contract We're continuing to find that our satellite services contracts are a win-win-win. we're continuing to find that our satellite services contracts are a win-win-win The customer guarantees their sovereign space capabilities in their desired area of interest. the customer guarantees their sovereign space capabilities in their desired area of interest Our other clients will benefit from increased capacity and revisit rates in the rest of the world. our other clients will benefit from increased capacity and revisit rates in the rest of the world Planet receives capital to forward fund our fleet build-outs. planet receives capital to forward fund our fleet build-outs They also bolster our data and solutions offerings as countries want both speed and scale of our data and solutions and the sovereignty of our satellite services technology. they also bolster our data and solutions offerings as countries want both speed and scale of our data and solutions and the sovereignty of our satellite services technology Through our AI-enabled solutions, we accelerate time to value, become more deeply embedded in our customer operations, and gain more direct visibility to our customers' operational needs. We're leaning into these synergies across our product offerings. We're continuing to see robust demand from around the world for satellite services, driven by the current geopolitical landscape and the demand for sovereign space systems. Our competitive edge here is twofold. Firstly, our proven track record, having launched over 650 Earth imaging satellites, by far the most of any commercial company. Our second is speed. We are able to launch the first satellites within a few months of contract signing, as shown with the partnership funded by Germany, far faster than traditional aerospace. Through our AI-enabled solutions, we accelerate time to value, become more deeply embedded in our customer operations, and gain more direct visibility to our customers' operational needs. through our ai-enabled solutions we accelerate time to value become more deeply embedded in our customer operations and gain more direct visibility to our customers' operational needs We're leaning into these synergies across our product offerings. we're leaning into these synergies across our product offerings We're continuing to see robust demand from around the world for satellite services, driven by the current geopolitical landscape and the demand for sovereign space systems. we're continuing to see robust demand from around the world for satellite services driven by the current geopolitical landscape and the demand for sovereign space systems Our competitive edge here is twofold. our competitive edge here is twofold Firstly, our proven track record, having launched over 650 Earth imaging satellites, by far the most of any commercial company. firstly our proven track record having launched over 650 earth imaging satellites by far the most of any commercial company Our second is speed. our second is speed We are able to launch the first satellites within a few months of contract signing, as shown with the partnership funded by Germany, far faster than traditional aerospace. we are able to launch the first satellites within a few months of contract signing as shown with the partnership funded by germany far faster than traditional aerospace The demand is significant and reflected in our pipeline, which has grown appreciably in both number of deals and average deal size since we spoke about this at our Investor Day in October. We're leaning into this demand by expanding our manufacturing capacity in San Francisco and building out our second manufacturing location in Berlin. On the solutions side, I'm pleased to report that our integration of Bedrock Research is going very well. The team is helping us scale rapidly and deliver AI-based solutions, notably standing up 600 new monitoring sites within three hours compared to a weeks-long process when we first launched the service. This deep domain area expertise, paired with our ongoing advancements in AI, have allowed us to expand the number of sites we're monitoring around the world, drastically reduce the time needed to implement, and enable our customers to scale across broader geographic areas. The demand is significant and reflected in our pipeline, which has grown appreciably in both number of deals and average deal size since we spoke about this at our Investor Day in October. the demand is significant and reflected in our pipeline which has grown appreciably in both number of deals and average deal size since we spoke about this at our investor day in october We're leaning into this demand by expanding our manufacturing capacity in San Francisco and building out our second manufacturing location in Berlin. we're leaning into this demand by expanding our manufacturing capacity in san francisco and building out our second manufacturing location in berlin On the solutions side, I'm pleased to report that our integration of Bedrock Research is going very well. on the solutions side i'm pleased to report that our integration of bedrock research is going very well The team is helping us scale rapidly and deliver AI-based solutions, notably standing up 600 new monitoring sites within three hours compared to a weeks-long process when we first launched the service. the team is helping us scale rapidly and deliver ai-based solutions notably standing up 600 new monitoring sites within three hours compared to a weeks-long process when we first launched the service This deep domain area expertise, paired with our ongoing advancements in AI, have allowed us to expand the number of sites we're monitoring around the world, drastically reduce the time needed to implement, and enable our customers to scale across broader geographic areas. this deep domain area expertise paired with our ongoing advancements in ai have allowed us to expand the number of sites we're monitoring around the world drastically reduce the time needed to implement and enable our customers to scale across broader geographic areas During the quarter, Planet expanded its technology collaboration with NVIDIA on multiple fronts. With Planet's proprietary data set and NVIDIA's compute, we can enable significant new capabilities. This includes exploring the use of NVIDIA's accelerated GPU-based computing platform for Planet data processing, enabling faster, more efficient processing for all of our customers. Testing NVIDIA's new Thor processor for in-space use, enhancing super resolution and other AI processing capabilities, and more. As announced earlier this week, we're collaborating to build the world's first scaled GPU native AI engine for satellite data and drive huge advances in efficiency and latency. More generally, we anticipate that AI will be transformational to our business this year. Let me give a bit of broader context. While LLMs offer users the incredible ability to have conversations with the text of the internet, they know very little about the physical world. During the quarter, Planet expanded its technology collaboration with NVIDIA on multiple fronts. during the quarter planet expanded its technology collaboration with nvidia on multiple fronts With Planet's proprietary data set and NVIDIA's compute, we can enable significant new capabilities. with planet's proprietary data set and nvidia's compute we can enable significant new capabilities This includes exploring the use of NVIDIA's accelerated GPU-based computing platform for Planet data processing, enabling faster, more efficient processing for all of our customers. this includes exploring the use of nvidia's accelerated gpu-based computing platform for planet data processing enabling faster more efficient processing for all of our customers Testing NVIDIA's new Thor processor for in-space use, enhancing super resolution and other AI processing capabilities, and more. testing nvidia's new thor processor for in-space use enhancing super resolution and other ai processing capabilities and more As announced earlier this week, we're collaborating to build the world's first scaled GPU native AI engine for satellite data and drive huge advances in efficiency and latency. as announced earlier this week we're collaborating to build the world's first scaled gpu native ai engine for satellite data and drive huge advances in efficiency and latency More generally, we anticipate that AI will be transformational to our business this year. more generally we anticipate that ai will be transformational to our business this year Let me give a bit of broader context. While LLMs offer users the incredible ability to have conversations with the text of the internet, they know very little about the physical world. let me give a bit of broader context. while llms offer users the incredible ability to have conversations with the text of the internet they know very little about the physical world Real-world models need real-world data, and Planet has it. Our deep data archive averaging over 3,000 collections for every point on the Earth's landmass represents a treasure trove of indexing the physical world and training next-generation models. As Wikipedia was the foundation data set for LLMs, we believe that Planet's daily scan is foundational to real-world models. Furthermore, AI itself is commoditizing software development, making data the key differentiation in AI. Why does this matter? Because it has the potential to unlock a huge market. While Planet is currently seeing tremendous traction for AI-based solutions in defense and intelligence, these developments are making broader area monitoring scalable and accessible for other applications and sectors. Ultimately, we believe this will result in generic applications, democratizing access to Earth intelligence and unlocking markets far faster. Real-world models need real-world data, and Planet has it. real-world models need real-world data and planet has it Our deep data archive averaging over 3,000 collections for every point on the Earth's landmass represents a treasure trove of indexing the physical world and training next-generation models. our deep data archive averaging over 3,000 collections for every point on the earth's landmass represents a treasure trove of indexing the physical world and training next-generation models As Wikipedia was the foundation data set for LLMs, we believe that Planet's daily scan is foundational to real-world models. as wikipedia was the foundation data set for llms we believe that planet's daily scan is foundational to real-world models Furthermore, AI itself is commoditizing software development, making data the key differentiation in AI. furthermore ai itself is commoditizing software development making data the key differentiation in ai Why does this matter? why does this matter Because it has the potential to unlock a huge market. because it has the potential to unlock a huge market While Planet is currently seeing tremendous traction for AI-based solutions in defense and intelligence, these developments are making broader area monitoring scalable and accessible for other applications and sectors. while planet is currently seeing tremendous traction for ai-based solutions in defense and intelligence these developments are making broader area monitoring scalable and accessible for other applications and sectors Ultimately, we believe this will result in generic applications, democratizing access to Earth intelligence and unlocking markets far faster. ultimately we believe this will result in generic applications democratizing access to earth intelligence and unlocking markets far faster Specifically, we think that more generic AI solutions will soon empower non-technical users to go from a concept to a bespoke application in under an hour. We expect expanding these capabilities will benefit our current customers and drive new opportunities in markets such as agriculture, insurance, energy, supply chain, and finance. For the year ahead, our top priorities are executing against our current contracts across both data and solutions and satellite services, and scaling up to capture the massive opportunity before us. We see strong demand, so we're investing into our growth, including the technology roadmap. We're doubling our satellite manufacturing capacity. We're scaling our Pelican fleet with multiple launches scheduled this year. We're launching demos of our Owl and Suncatcher spacecraft, and we're investing in AI for existing solutions and the aforementioned more generic capabilities. Specifically, we think that more generic AI solutions will soon empower non-technical users to go from a concept to a bespoke application in under an hour. specifically we think that more generic ai solutions will soon empower non-technical users to go from a concept to a bespoke application in under an hour We expect expanding these capabilities will benefit our current customers and drive new opportunities in markets such as agriculture, insurance, energy, supply chain, and finance. we expect expanding these capabilities will benefit our current customers and drive new opportunities in markets such as agriculture insurance energy supply chain and finance For the year ahead, our top priorities are executing against our current contracts across both data and solutions and satellite services, and scaling up to capture the massive opportunity before us. for the year ahead our top priorities are executing against our current contracts across both data and solutions and satellite services and scaling up to capture the massive opportunity before us We see strong demand, so we're investing into our growth, including the technology roadmap. we see strong demand so we're investing into our growth including the technology roadmap We're doubling our satellite manufacturing capacity. we're doubling our satellite manufacturing capacity We're scaling our Pelican fleet with multiple launches scheduled this year. we're scaling our pelican fleet with multiple launches scheduled this year We're launching demos of our Owl and Suncatcher spacecraft, and we're investing in AI for existing solutions and the aforementioned more generic capabilities. we're launching demos of our owl and suncatcher spacecraft and we're investing in ai for existing solutions and the aforementioned more generic capabilities In sum, last year we saw the start of returns on our investments into satellite services. This year, we expect to see the start of returns into our investments in AI. We sit uniquely at the intersection of space and AI revolutions, and Planet is the first space and AI company. By year's end, we believe Planet's Earth Intelligence platform will deliver transformational global impact as our customers leverage space and AI to transform data into action. We're leaning in to meet the moment and we're playing to win. With that, I'll turn it over to Ashley to discuss our financials. Over to you, Ash. In sum, last year we saw the start of returns on our investments into satellite services. in sum last year we saw the start of returns on our investments into satellite services This year, we expect to see the start of returns into our investments in AI. this year we expect to see the start of returns into our investments in ai We sit uniquely at the intersection of space and AI revolutions, and Planet is the first space and AI company. we sit uniquely at the intersection of space and ai revolutions and planet is the first space and ai company By year's end, we believe Planet's Earth Intelligence platform will deliver transformational global impact as our customers leverage space and AI to transform data into action. by year's end we believe planet's earth intelligence platform will deliver transformational global impact as our customers leverage space and ai to transform data into action We're leaning in to meet the moment and we're playing to win. we're leaning in to meet the moment and we're playing to win With that, I'll turn it over to Ashley to discuss our financials. with that i'll turn it over to ashley to discuss our financials Over to you, Ash. over to you ash

Speaker 2: Thanks, Will. It was indeed a fantastic year, underpinned by strong execution and key wins in satellite services. I'd like now to cover the results in more detail. Revenue for the fourth quarter came in at a record $86.8 million, representing approximately 41% year-over-year growth. Full year revenue was $307.7 million, representing approximately 26% year-over-year growth. The outperformance in the quarter was driven primarily by strong usage from our defense and intelligence and civil government customers, as well as new wins that came in during the quarter. During fiscal 2026, our defense and intelligence sector revenue grew more than 50% year-over-year. The commercial sector was down modestly year-over-year, and the civil government revenue was flat, driven in large part by the end of our contract with Norway for their NICFI program. Thanks, Will. thanks will It was indeed a fantastic year, underpinned by strong execution and key wins in satellite services. it was indeed a fantastic year underpinned by strong execution and key wins in satellite services I'd like now to cover the results in more detail. i'd like now to cover the results in more detail Revenue for the fourth quarter came in at a record $86.8 million, representing approximately 41% year-over-year growth. revenue for the fourth quarter came in at a record $86.8 million representing approximately 41% year-over-year growth Full year revenue was $307.7 million, representing approximately 26% year-over-year growth. full year revenue was $307.7 million representing approximately 26% year-over-year growth The outperformance in the quarter was driven primarily by strong usage from our defense and intelligence and civil government customers, as well as new wins that came in during the quarter. the outperformance in the quarter was driven primarily by strong usage from our defense and intelligence and civil government customers as well as new wins that came in during the quarter During fiscal 2026, our defense and intelligence sector revenue grew more than 50% year-over-year. during fiscal 2026 our defense and intelligence sector revenue grew more than 50% year-over-year The commercial sector was down modestly year-over-year, and the civil government revenue was flat, driven in large part by the end of our contract with Norway for their NICFI program. the commercial sector was down modestly year-over-year and the civil government revenue was flat driven in large part by the end of our contract with norway for their nicfi program Turning to our regional revenue breakdown, growth was distributed across the globe in fiscal 2026, with approximate revenue growth of 41% year over year in Asia Pacific, 48% in EMEA, 11% in North America, and down about 2% in Latin America. As of the end of fiscal year 2026, our end of period customer count was 897 customers, slightly down on a sequential basis, reflecting our direct sales team's intentional shift to focus on large customer opportunities and leveraging our self-serve platform to provide access to our data for other customers. As a reminder, Planet Insights Platform customers are not included in our end of period customer count. Turning to our regional revenue breakdown, growth was distributed across the globe in fiscal 2026, with approximate revenue growth of 41% year over year in Asia Pacific, 48% in EMEA, 11% in North America, and down about 2% in Latin America. turning to our regional revenue breakdown growth was distributed across the globe in fiscal 2026 with approximate revenue growth of 41% year over year in asia pacific 48% in emea 11% in north america and down about 2% in latin america As of the end of fiscal year 2026, our end of period customer count was 897 customers, slightly down on a sequential basis, reflecting our direct sales team's intentional shift to focus on large customer opportunities and leveraging our self-serve platform to provide access to our data for other customers. as of the end of fiscal year 2026 our end of period customer count was 897 customers slightly down on a sequential basis reflecting our direct sales team's intentional shift to focus on large customer opportunities and leveraging our self-serve platform to provide access to our data for other customers As a reminder, Planet Insights Platform customers are not included in our end of period customer count. as a reminder planet insights platform customers are not included in our end of period customer count Given our focus on larger customers and the shift to a self-service model for the long tail of the market, we believe this metric has become less useful for investors and is not proactively monitored by management. We believe our retention rates on ACV are far more constructive measures of our business health and opportunity. Therefore, we plan to discontinue this metric beginning with the first quarter of fiscal year 2027. We continue to see strong revenue growth and thus a solid increase in average revenue per customer as a positive indicator that our sales team's focus on landing and expanding high value accounts is yielding results. As we shift to some of our ACV metrics, I want to remind you that our satellite services contracts are not included in ACV, although they are included in our RPOs and backlog, which we will discuss in a moment. Given our focus on larger customers and the shift to a self-service model for the long tail of the market, we believe this metric has become less useful for investors and is not proactively monitored by management. given our focus on larger customers and the shift to a self-service model for the long tail of the market we believe this metric has become less useful for investors and is not proactively monitored by management We believe our retention rates on ACV are far more constructive measures of our business health and opportunity. we believe our retention rates on acv are far more constructive measures of our business health and opportunity Therefore, we plan to discontinue this metric beginning with the first quarter of fiscal year 2027. therefore we plan to discontinue this metric beginning with the first quarter of fiscal year 2027 We continue to see strong revenue growth and thus a solid increase in average revenue per customer as a positive indicator that our sales team's focus on landing and expanding high value accounts is yielding results. we continue to see strong revenue growth and thus a solid increase in average revenue per customer as a positive indicator that our sales team's focus on landing and expanding high value accounts is yielding results As we shift to some of our ACV metrics, I want to remind you that our satellite services contracts are not included in ACV, although they are included in our RPOs and backlog, which we will discuss in a moment. as we shift to some of our acv metrics i want to remind you that our satellite services contracts are not included in acv although they are included in our rpos and backlog which we will discuss in a moment Recurring ACV was 98% of our end of period ACV book of business, reflecting our continued focus on selling subscription data contracts and solutions as opposed to one-time professional or engineering services. Approximately 85% of our end of period ACV book of business consists of annual or multi-year contracts, lower than prior periods as we have seen a higher proportion of large, shorter-termed government contracts signed in recent quarters. Net dollar retention rate at the end of fiscal year 2026 was 116%, and net dollar retention rate with win backs was 118%. Our non-GAAP gross margin for fiscal year 2026 was 59% compared to 60% in fiscal year 2025. Recurring ACV was 98% of our end of period ACV book of business, reflecting our continued focus on selling subscription data contracts and solutions as opposed to one-time professional or engineering services. recurring acv was 98% of our end of period acv book of business reflecting our continued focus on selling subscription data contracts and solutions as opposed to one-time professional or engineering services Approximately 85% of our end of period ACV book of business consists of annual or multi-year contracts, lower than prior periods as we have seen a higher proportion of large, shorter-termed government contracts signed in recent quarters. approximately 85% of our end of period acv book of business consists of annual or multi-year contracts lower than prior periods as we have seen a higher proportion of large shorter-termed government contracts signed in recent quarters Net dollar retention rate at the end of fiscal year 2026 was 116%, and net dollar retention rate with win backs was 118%. net dollar retention rate at the end of fiscal year 2026 was 116% and net dollar retention rate with win backs was 118% Our non-GAAP gross margin for fiscal year 2026 was 59% compared to 60% in fiscal year 2025. our non-gaap gross margin for fiscal year 2026 was 59% compared to 60% in fiscal year 2025 For Q4, our non-GAAP gross margin was 57% compared to 65% in Q4 of fiscal year 2025, reflecting investments in support of our satellite services contracts and a mix of contracts including AI-enabled partner solutions. Our gross margins came in better than expected for the quarter and the year, primarily driven by the revenue outperformance in the quarter. Adjusted EBITDA profit was $15.5 million for fiscal year 2026, better than expected, primarily driven by revenue outperformance and disciplined OpEx spend. Fiscal year 2026 marks our first year of delivering Adjusted EBITDA profitability on an annual basis, a milestone we're incredibly proud of. Adjusted EBITDA profit for Q4 was $2.3 million, also better than expected, marking our fifth sequential quarter of Adjusted EBITDA profitability. Capital expenditures in FY 2026, which include our capitalized software development, were approximately $81.5 million. For Q4, our non-GAAP gross margin was 57% compared to 65% in Q4 of fiscal year 2025, reflecting investments in support of our satellite services contracts and a mix of contracts including AI-enabled partner solutions. for q4 our non-gaap gross margin was 57% compared to 65% in q4 of fiscal year 2025 reflecting investments in support of our satellite services contracts and a mix of contracts including ai-enabled partner solutions Our gross margins came in better than expected for the quarter and the year, primarily driven by the revenue outperformance in the quarter. Adjusted EBITDA profit was $15.5 million for fiscal year 2026, better than expected, primarily driven by revenue outperformance and disciplined OpEx spend. our gross margins came in better than expected for the quarter and the year primarily driven by the revenue outperformance in the quarter. adjusted ebitda profit was $15.5 million for fiscal year 2026 better than expected primarily driven by revenue outperformance and disciplined opex spend Fiscal year 2026 marks our first year of delivering Adjusted EBITDA profitability on an annual basis, a milestone we're incredibly proud of. fiscal year 2026 marks our first year of delivering adjusted ebitda profitability on an annual basis a milestone we're incredibly proud of Adjusted EBITDA profit for Q4 was $2.3 million, also better than expected, marking our fifth sequential quarter of Adjusted EBITDA profitability. adjusted ebitda profit for q4 was $2.3 million also better than expected marking our fifth sequential quarter of adjusted ebitda profitability Capital expenditures in FY 2026, which include our capitalized software development, were approximately $81.5 million. capital expenditures in fy 2026 which include our capitalized software development were approximately $81.5 million Capital expenditures in Q4 were approximately $23 million. To echo Will's remarks, we're currently in a growth CapEx investment cycle as we lean into market demand, scale up our manufacturing capacity in Berlin, and build out our next-generation fleets. Turning to the balance sheet, we ended the year with approximately $640 million of cash equivalents, and short-term investments, an increase of approximately $418 million year-on-year, driven by our issuance of convertible debt and free cash flow profitability. In fiscal year 2026, we generated approximately $134.4 million in net cash from operating activities and $52.9 million in free cash flow, representing our first year of achieving positive free cash flow on an annual basis. Capital expenditures in Q4 were approximately $23 million. capital expenditures in q4 were approximately $23 million To echo Will's remarks, we're currently in a growth CapEx investment cycle as we lean into market demand, scale up our manufacturing capacity in Berlin, and build out our next-generation fleets. to echo will's remarks we're currently in a growth capex investment cycle as we lean into market demand scale up our manufacturing capacity in berlin and build out our next-generation fleets Turning to the balance sheet, we ended the year with approximately $640 million of cash equivalents, and short-term investments, an increase of approximately $418 million year-on-year, driven by our issuance of convertible debt and free cash flow profitability. turning to the balance sheet we ended the year with approximately $640 million of cash equivalents and short-term investments an increase of approximately $418 million year-on-year driven by our issuance of convertible debt and free cash flow profitability In fiscal year 2026, we generated approximately $134.4 million in net cash from operating activities and $52.9 million in free cash flow, representing our first year of achieving positive free cash flow on an annual basis. in fiscal year 2026 we generated approximately $134.4 million in net cash from operating activities and $52.9 million in free cash flow representing our first year of achieving positive free cash flow on an annual basis Our focus remains on managing the business to enable sustainable cash flow generation through efficient growth across our data, solutions, and satellite services revenue streams. At the end of FY 2026, our remaining performance obligations, or RPOs, were approximately $852.4 million, up about 106% year-over-year, of which approximately 34% apply to the next twelve months and 65% to the next twenty-four months. We estimate our backlog, which includes contracts with the termination for convenience clause, to be approximately $900 million, up approximately 79% year-over-year. Approximately 37% of our backlog applies to the next 12 months and 67% to the next 24 months. Let me now turn to our guidance for the first quarter and full fiscal year 2027. Our focus remains on managing the business to enable sustainable cash flow generation through efficient growth across our data, solutions, and satellite services revenue streams. our focus remains on managing the business to enable sustainable cash flow generation through efficient growth across our data solutions and satellite services revenue streams At the end of FY 2026, our remaining performance obligations, or RPOs, were approximately $852.4 million, up about 106% year-over-year, of which approximately 34% apply to the next twelve months and 65% to the next twenty-four months. at the end of fy 2026 our remaining performance obligations or rpos were approximately $852.4 million up about 106% year-over-year of which approximately 34% apply to the next twelve months and 65% to the next twenty-four months We estimate our backlog, which includes contracts with the termination for convenience clause, to be approximately $900 million, up approximately 79% year-over-year. we estimate our backlog which includes contracts with the termination for convenience clause to be approximately $900 million up approximately 79% year-over-year Approximately 37% of our backlog applies to the next 12 months and 67% to the next 24 months. approximately 37% of our backlog applies to the next 12 months and 67% to the next 24 months Let me now turn to our guidance for the first quarter and full fiscal year 2027. let me now turn to our guidance for the first quarter and full fiscal year 2027 In Q1, we're expecting revenue to be between $87 million and $91 million, which represents approximately 34% year-on-year growth at the midpoint. We expect non-GAAP gross margin for the quarter to be between 49% and 51%. The step-down is driven by our satellite services contracts, the mix of deals with AI-enabled partner solutions, and investments in our next-generation fleets. Our range for Adjusted EBITDA in the quarter is expected to be between -$6 million and -$3 million, reflecting our investments to drive sustained growth. We are planning for capital expenditures of approximately $17 million-$23 million in the quarter. For the full fiscal year 2027, we expect revenue to be between $415 million and $440 million, representing approximately 39% growth at the midpoint. In Q1, we're expecting revenue to be between $87 million and $91 million, which represents approximately 34% year-on-year growth at the midpoint. in q1 we're expecting revenue to be between $87 million and $91 million which represents approximately 34% year-on-year growth at the midpoint We expect non-GAAP gross margin for the quarter to be between 49% and 51%. we expect non-gaap gross margin for the quarter to be between 49% and 51% The step-down is driven by our satellite services contracts, the mix of deals with AI-enabled partner solutions, and investments in our next-generation fleets. the step-down is driven by our satellite services contracts the mix of deals with ai-enabled partner solutions and investments in our next-generation fleets Our range for Adjusted EBITDA in the quarter is expected to be between -$6 million and -$3 million, reflecting our investments to drive sustained growth. our range for adjusted ebitda in the quarter is expected to be between -$6 million and -$3 million reflecting our investments to drive sustained growth We are planning for capital expenditures of approximately $17 million - $23 million in the quarter. we are planning for capital expenditures of approximately $17 million - $23 million in the quarter For the full fiscal year 2027, we expect revenue to be between $415 million and $440 million, representing approximately 39% growth at the midpoint. for the full fiscal year 2027 we expect revenue to be between $415 million and $440 million representing approximately 39% growth at the midpoint We believe our backlog provides us with strong visibility to our revenue projections, which is enabling us to raise our growth expectations for the year. Our non-GAAP gross margin for the year is projected to be between 50% and 52%, in line with our prior expectations and driven by the forecasted mix of business. We anticipate margins will expand as we realize returns on our growth investments in subsequent years. We are targeting Adjusted EBITDA profit for fiscal 2027 of between breakeven and $10 million, reflecting our desire to maintain EBITDA profitability on an annual basis, even as we continue to invest in our space systems capabilities, AI-powered solutions, and our global sales and marketing organization. We also aim to deliver Rule of 40 for this fiscal year, where Rule of 40 is our revenue growth rate plus Adjusted EBITDA margin. We believe our backlog provides us with strong visibility to our revenue projections, which is enabling us to raise our growth expectations for the year. we believe our backlog provides us with strong visibility to our revenue projections which is enabling us to raise our growth expectations for the year Our non-GAAP gross margin for the year is projected to be between 50% and 52%, in line with our prior expectations and driven by the forecasted mix of business. our non-gaap gross margin for the year is projected to be between 50% and 52% in line with our prior expectations and driven by the forecasted mix of business We anticipate margins will expand as we realize returns on our growth investments in subsequent years. we anticipate margins will expand as we realize returns on our growth investments in subsequent years We are targeting Adjusted EBITDA profit for fiscal 2027 of between breakeven and $10 million, reflecting our desire to maintain EBITDA profitability on an annual basis, even as we continue to invest in our space systems capabilities, AI-powered solutions, and our global sales and marketing organization. we are targeting adjusted ebitda profit for fiscal 2027 of between breakeven and $10 million reflecting our desire to maintain ebitda profitability on an annual basis even as we continue to invest in our space systems capabilities ai-powered solutions and our global sales and marketing organization We also aim to deliver Rule of 40 for this fiscal year, where Rule of 40 is our revenue growth rate plus Adjusted EBITDA margin. we also aim to deliver rule of 40 for this fiscal year where rule of 40 is our revenue growth rate plus adjusted ebitda margin We are planning for approximately $80 million-$95 million in capital expenditures for the year, reflecting the necessary investments in our next-generation satellites to meet accelerating market demand. Even with these operating and capital expenditures, we expect to be free cash flow positive on an annual basis again in fiscal year 2027, with a focus on sustaining and expanding free cash flow generation into the future. As a reminder, while cash flow can vary quite significantly quarter to quarter based on the timing of cash collections and capital outlays for procurements, our ultimate objective is generating sustainable annual positive cash flow. To close, the incredible momentum we generated in fiscal year 2026 provides us with a strong foundation for the future. We are planning for approximately $80 million-$95 million in capital expenditures for the year, reflecting the necessary investments in our next-generation satellites to meet accelerating market demand. we are planning for approximately $80 million-$95 million in capital expenditures for the year reflecting the necessary investments in our next-generation satellites to meet accelerating market demand Even with these operating and capital expenditures, we expect to be free cash flow positive on an annual basis again in fiscal year 2027, with a focus on sustaining and expanding free cash flow generation into the future. even with these operating and capital expenditures we expect to be free cash flow positive on an annual basis again in fiscal year 2027 with a focus on sustaining and expanding free cash flow generation into the future As a reminder, while cash flow can vary quite significantly quarter to quarter based on the timing of cash collections and capital outlays for procurements, our ultimate objective is generating sustainable annual positive cash flow. as a reminder while cash flow can vary quite significantly quarter to quarter based on the timing of cash collections and capital outlays for procurements our ultimate objective is generating sustainable annual positive cash flow To close, the incredible momentum we generated in fiscal year 2026 provides us with a strong foundation for the future. to close the incredible momentum we generated in fiscal year 2026 provides us with a strong foundation for the future Given the strength of our backlog and our robust pipeline, we have significant visibility into our continued revenue growth, and as our revenue scales, we anticipate non-GAAP gross margin expansion as well as Rule of 40 for fiscal year 2028 and beyond. This gives us the confidence to invest into the massive market opportunity unfolding in front of us, and as Will mentioned, we are leaning into these trends and playing to win. As always, Will and I are incredibly grateful for the outstanding execution, dedication, and teamwork of our Planeteers around the globe. Fiscal 2026 was a standout year because of you, and we're excited for the year ahead. Operator, that concludes our comments. We can now take questions. Given the strength of our backlog and our robust pipeline, we have significant visibility into our continued revenue growth, and as our revenue scales, we anticipate non-GAAP gross margin expansion as well as Rule of 40 for fiscal year 2028 and beyond. given the strength of our backlog and our robust pipeline we have significant visibility into our continued revenue growth and as our revenue scales we anticipate non-gaap gross margin expansion as well as rule of 40 for fiscal year 2028 and beyond This gives us the confidence to invest into the massive market opportunity unfolding in front of us, and as Will mentioned, we are leaning into these trends and playing to win. this gives us the confidence to invest into the massive market opportunity unfolding in front of us and as will mentioned we are leaning into these trends and playing to win As always, Will and I are incredibly grateful for the outstanding execution, dedication, and teamwork of our Planeteers around the globe. as always will and i are incredibly grateful for the outstanding execution dedication and teamwork of our planeteers around the globe Fiscal 2026 was a standout year because of you, and we're excited for the year ahead. fiscal 2026 was a standout year because of you and we're excited for the year ahead Operator, that concludes our comments. operator that concludes our comments We can now take questions. we can now take questions

Speaker 11: Thank you. We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, press star one on your telephone keypad. If you would like to withdraw your question, press star one again. Pardon me. Your first question comes from the line of Colin Canfield from Cantor. Your line is open. Please go ahead. Thank you. thank you We will now begin the question-and-answer session. we will now begin the question-and-answer session Please limit yourself to one question and one follow-up. If you would like to ask a question, press star one on your telephone keypad. please limit yourself to one question and one follow-up. if you would like to ask a question press star one on your telephone keypad If you would like to withdraw your question, press star one again. if you would like to withdraw your question press star one again Pardon me. pardon me Your first question comes from the line of Colin Canfield from Cantor. your first question comes from the line of colin canfield from cantor Your line is open. your line is open Please go ahead. please go ahead

Speaker 5: Can you perhaps update us on the timing and the scaling of both the Suncatcher opportunity as well as what sounds like a pretty nascent geointelligence platform with NVIDIA? If you could maybe talk about how much of that was included in the set of opportunities from the Investor Day. Thank you. Can you perhaps update us on the timing and the scaling of both the Suncatcher opportunity as well as what sounds like a pretty nascent geointelligence platform with NVIDIA? can you perhaps update us on the timing and the scaling of both the suncatcher opportunity as well as what sounds like a pretty nascent geointelligence platform with nvidia If you could maybe talk about how much of that was included in the set of opportunities from the Investor Day. if you could maybe talk about how much of that was included in the set of opportunities from the investor day Thank you. thank you

Speaker 14: Well, both are very exciting opportunities and in a way, both involve both a space component and an AI component. Let me talk to the Google one first since you brought that up. Suncatcher, it's going well. It's early days. Just to recap that project, you know, this is about putting their TPUs into space. It's an early tech demo. That is what we're doing right this second for them. There's a lot of interest in that space that you've seen in recent months. It's very exciting. It's heating up. But we're focused on executing towards those research goals, and there's a big potential market there long term. As Sundar put it, I think within 10 years, he expects most compute spending to go into orbit. That's a big amount of money. Well, both are very exciting opportunities and in a way, both involve both a space component and an AI component. well both are very exciting opportunities and in a way both involve both a space component and an ai component Let me talk to the Google one first since you brought that up. let me talk to the google one first since you brought that up Suncatcher, it's going well. suncatcher it's going well It's early days. it's early days Just to recap that project, you know, this is about putting their TPUs into space. just to recap that project you know this is about putting their tpus into space It's an early tech demo. it's an early tech demo That is what we're doing right this second for them. that is what we're doing right this second for them There's a lot of interest in that space that you've seen in recent months. there's a lot of interest in that space that you've seen in recent months It's very exciting. it's very exciting It's heating up. it's heating up But we're focused on executing towards those research goals, and there's a big potential market there long term. but we're focused on executing towards those research goals and there's a big potential market there long term As Sundar put it, I think within 10 years, he expects most compute spending to go into orbit. as sundar put it i think within 10 years he expects most compute spending to go into orbit That's a big amount of money. that's a big amount of money That's a huge market to go after, but we're very early days. You know, it's exciting. We're staying focused on executing on those early missions. To NVIDIA, yeah, that is also exciting. It was great to announce that extension of our partnership. It's also a research partnership at this stage. You all know about the fact that we've been putting those NVIDIA GPUs into orbit on our Pelican spacecraft, which is pretty cool. This is actually more focused on the compute on the ground, how we leverage their GPUs, in particular, to speed up our data preprocessing pipeline. You know, in an increasingly fast-changing world, people want those answers really quickly. That's a huge market to go after, but we're very early days. that's a huge market to go after but we're very early days You know, it's exciting. you know it's exciting We're staying focused on executing on those early missions. we're staying focused on executing on those early missions To NVIDIA, yeah, that is also exciting. to nvidia yeah that is also exciting It was great to announce that extension of our partnership. it was great to announce that extension of our partnership It's also a research partnership at this stage. it's also a research partnership at this stage You all know about the fact that we've been putting those NVIDIA GPUs into orbit on our Pelican spacecraft, which is pretty cool. you all know about the fact that we've been putting those nvidia gpus into orbit on our pelican spacecraft which is pretty cool This is actually more focused on the compute on the ground, how we leverage their GPUs, in particular, to speed up our data preprocessing pipeline. this is actually more focused on the compute on the ground how we leverage their gpus in particular to speed up our data preprocessing pipeline You know, in an increasingly fast-changing world, people want those answers really quickly. you know in an increasingly fast-changing world people want those answers really quickly GPUs have the potential to really speed things up, and we've seen some early results that are very promising, where big speedups, like 100x on certain parts of our coding base. Getting answers to our clients faster is really important. AI research collaboration, they're leaning in, and we are leaning in too. It's very exciting. But as to the revenue implications, I don't know if you wanted to touch on that, Ashley. GPUs have the potential to really speed things up, and we've seen some early results that are very promising, where big speedups, like 100x on certain parts of our coding base. gpus have the potential to really speed things up and we've seen some early results that are very promising where big speedups like 100x on certain parts of our coding base Getting answers to our clients faster is really important. getting answers to our clients faster is really important AI research collaboration, they're leaning in, and we are leaning in too. ai research collaboration they're leaning in and we are leaning in too It's very exciting. it's very exciting But as to the revenue implications, I don't know if you wanted to touch on that, Ashley. but as to the revenue implications i don't know if you wanted to touch on that ashley

Speaker 2: No, I mean, I would just remind you that the Suncatcher partnership is structured as an R&D partnership, so it's recognized as contra revenue. With respect to the NVIDIA partnership, that's really just a research collaboration. No, I mean, I would just remind you that the Suncatcher partnership is structured as an R&D partnership, so it's recognized as contra revenue. no i mean i would just remind you that the suncatcher partnership is structured as an r&d partnership so it's recognized as contra revenue With respect to the NVIDIA partnership, that's really just a research collaboration. with respect to the nvidia partnership that's really just a research collaboration

Speaker 14: Yes. R&D. Yes. yes R&D. r&d

Speaker 5: Got it. Then as we think about imputing working capital tailwinds for 2027, is there a right framework to think about it maybe as like a percentage of the backlog increase or kind of high level, kind of what are the building blocks of working capital that we should consider? Got it. got it Then as we think about imputing working capital tailwinds for 2027, is there a right framework to think about it maybe as like a percentage of the backlog increase or kind of high level, kind of what are the building blocks of working capital that we should consider? then as we think about imputing working capital tailwinds for 2027 is there a right framework to think about it maybe as like a percentage of the backlog increase or kind of high level kind of what are the building blocks of working capital that we should consider

Speaker 2: First of all, I just want to correct myself. I made a misstatement on my prior answer. It's not contra revenue, it's contra R&D expense. Thanks for letting me clarify that. As for your second question, in terms of the building blocks for working capital, obviously, as I said, as we are acquiring investments to execute on our backlog, so that includes all of the capital expenditures we need to make to build out the Pelicans for our customers. That obviously will weigh into the procurements quarter to quarter. The nice thing about the way these contracts are structured is they typically provide us upfront capital to match the timing of those expenses, at least on an annual basis. First of all, I just want to correct myself. first of all i just want to correct myself I made a misstatement on my prior answer. i made a misstatement on my prior answer It's not contra revenue, it's contra R&D expense. it's not contra revenue it's contra r&d expense Thanks for letting me clarify that. thanks for letting me clarify that As for your second question, in terms of the building blocks for working capital, obviously, as I said, as we are acquiring investments to execute on our backlog, so that includes all of the capital expenditures we need to make to build out the Pelicans for our customers. as for your second question in terms of the building blocks for working capital obviously as i said as we are acquiring investments to execute on our backlog so that includes all of the capital expenditures we need to make to build out the pelicans for our customers That obviously will weigh into the procurements quarter to quarter. that obviously will weigh into the procurements quarter to quarter The nice thing about the way these contracts are structured is they typically provide us upfront capital to match the timing of those expenses, at least on an annual basis. the nice thing about the way these contracts are structured is they typically provide us upfront capital to match the timing of those expenses at least on an annual basis There may be differentials quarter to quarter as to when we make procurements and when we receive milestone payments. As I said in the prepared remarks, cash flow is expected to vary quarter to quarter, but on an annualized basis, these contracts really enable us to operate the business in a free cash flow positive way. There may be differentials quarter to quarter as to when we make procurements and when we receive milestone payments. there may be differentials quarter to quarter as to when we make procurements and when we receive milestone payments As I said in the prepared remarks, cash flow is expected to vary quarter to quarter, but on an annualized basis, these contracts really enable us to operate the business in a free cash flow positive way. as i said in the prepared remarks cash flow is expected to vary quarter to quarter but on an annualized basis these contracts really enable us to operate the business in a free cash flow positive way

Speaker 5: Got it. Thank you. Thank you for the color. Appreciate it. Got it. got it Thank you. thank you Thank you for the color. thank you for the color Appreciate it. appreciate it

Speaker 11: Your next question comes from the line of Ryan Koontz from Needham & Company. Your line is open. Please go ahead. Your next question comes from the line of Ryan Koontz from Needham & Company. your next question comes from the line of ryan koontz from needham & company Your line is open. your line is open Please go ahead. please go ahead

Speaker 12: Great. Thanks for the questions and congrats on a great quarter and outlook. Starting with maybe some of the segment, what your real strength you saw in Europe in the quarter, I wonder if you can maybe unpack that for us. You know, what were some of the drivers behind that? Obviously a lot of defense work there, but any kind of color you can give us on the European market and how that's been progressing so well for you. Great. great Thanks for the questions and congrats on a great quarter and outlook. thanks for the questions and congrats on a great quarter and outlook Starting with maybe some of the segment, what your real strength you saw in Europe in the quarter, I wonder if you can maybe unpack that for us. starting with maybe some of the segment what your real strength you saw in europe in the quarter i wonder if you can maybe unpack that for us You know, what were some of the drivers behind that? you know what were some of the drivers behind that Obviously a lot of defense work there, but any kind of color you can give us on the European market and how that's been progressing so well for you. obviously a lot of defense work there but any kind of color you can give us on the european market and how that's been progressing so well for you

Speaker 14: Yeah. Well, maybe I can just kick it off. I spent quite a big fraction of the quarter in Europe, going to a number of capitals, speaking to a lot of our customers there. The demand is off the charts. We are leaning into it as best we can, both for our data and AI solutions and constellation services. We talked about the interest in that going up. Yeah, I mean, it's back to the geopolitical dynamics, right? That's what's underneath this and driving a lot of this demand. They need their own sovereign systems. They need it quickly. They need speed and sovereignty, and we can offer both of those things. Speed, immediate access to our Planet satellites. Sovereignty, building satellites dedicated for them. Even that we can do very swiftly compared with anyone else. Yeah. yeah Well, maybe I can just kick it off. well maybe i can just kick it off I spent quite a big fraction of the quarter in Europe, going to a number of capitals, speaking to a lot of our customers there. i spent quite a big fraction of the quarter in europe going to a number of capitals speaking to a lot of our customers there The demand is off the charts. the demand is off the charts We are leaning into it as best we can, both for our data and AI solutions and constellation services. we are leaning into it as best we can both for our data and ai solutions and constellation services We talked about the interest in that going up. we talked about the interest in that going up Yeah, I mean, it's back to the geopolitical dynamics, right? yeah i mean it's back to the geopolitical dynamics right That's what's underneath this and driving a lot of this demand. that's what's underneath this and driving a lot of this demand They need their own sovereign systems. they need their own sovereign systems They need it quickly. they need it quickly They need speed and sovereignty, and we can offer both of those things. they need speed and sovereignty and we can offer both of those things Speed, immediate access to our Planet satellites. speed immediate access to our planet satellites Sovereignty, building satellites dedicated for them. sovereignty building satellites dedicated for them Even that we can do very swiftly compared with anyone else. even that we can do very swiftly compared with anyone else Our history of having launched hundreds of satellites really puts us in a great position to do that. That's the sort of demand signal. Ashley, toward the breakdown, I don't know if you want to comment at all on that. Our history of having launched hundreds of satellites really puts us in a great position to do that. our history of having launched hundreds of satellites really puts us in a great position to do that That's the sort of demand signal. that's the sort of demand signal Ashley, toward the breakdown, I don't know if you want to comment at all on that. ashley toward the breakdown i don't know if you want to comment at all on that

Speaker 2: We provide the breakdown in the materials. I would just say, you know, we have historically had a very strong presence in Europe, and have a strong team in Berlin foundationally, and we've built on that with acquisitions that have given us presence in the Netherlands as well as in Slovenia. We provide the breakdown in the materials. we provide the breakdown in the materials I would just say, you know, we have historically had a very strong presence in Europe, and have a strong team in Berlin foundationally, and we've built on that with acquisitions that have given us presence in the Netherlands as well as in Slovenia. i would just say you know we have historically had a very strong presence in europe and have a strong team in berlin foundationally and we've built on that with acquisitions that have given us presence in the netherlands as well as in slovenia That really helps us when we're engaging with governments across both their civil and defense and intelligence needs. That really helps us when we're engaging with governments across both their civil and defense and intelligence needs. that really helps us when we're engaging with governments across both their civil and defense and intelligence needs

Speaker 14: If I could just add one more final thing, of course, our commitment to building satellites there in Berlin adds to that interest. I mean, we both needed it for expanded manufacturing for our Pelicans, and it lent into the European demand because, of course, that helps connect the dots there. If I could just add one more final thing, of course, our commitment to building satellites there in Berlin adds to that interest. if i could just add one more final thing of course our commitment to building satellites there in berlin adds to that interest I mean, we both needed it for expanded manufacturing for our Pelicans, and it lent into the European demand because, of course, that helps connect the dots there. i mean we both needed it for expanded manufacturing for our pelicans and it lent into the european demand because of course that helps connect the dots there

Speaker 12: Sure. That's great. Just any comments around supply chain right now? Is it getting more difficult to acquire the types of kind of key components you need on the supply chain side? Sure. sure That's great. that's great Just any comments around supply chain right now? just any comments around supply chain right now Is it getting more difficult to acquire the types of kind of key components you need on the supply chain side? is it getting more difficult to acquire the types of kind of key components you need on the supply chain side

Speaker 14: Not really, no. We're not seeing anything material. Not really, no. not really no We're not seeing anything material. we're not seeing anything material

Speaker 2: Obviously, it's something that we track carefully and our teams are always seeking to diversify our supply chain sources. Obviously, it's something that we track carefully and our teams are always seeking to diversify our supply chain sources. obviously it's something that we track carefully and our teams are always seeking to diversify our supply chain sources

Speaker 12: Got it. Thanks so much, guys. Got it. got it Thanks so much, guys. thanks so much guys

Speaker 2: Thank you. Thank you. thank you

Speaker 14: No worries. No worries. no worries

Speaker 11: Your next question comes from the line of Edison Yu from Deutsche Bank. Please go ahead. Your next question comes from the line of Edison Yu from Deutsche Bank. your next question comes from the line of edison yu from deutsche bank Please go ahead. please go ahead

Speaker 6: Thank you very much and congratulations on the quarter. Wanted to come back to the AI element. You talked a little about LLMs. What's the latest, I guess, status on the Anthropic partnership, and have we kind of progressed further from kind of just testing or early testing the models or the training? Thank you very much and congratulations on the quarter. thank you very much and congratulations on the quarter Wanted to come back to the AI element. wanted to come back to the ai element You talked a little about LLMs. you talked a little about llms What's the latest, I guess, status on the Anthropic partnership, and have we kind of progressed further from kind of just testing or early testing the models or the training? what's the latest i guess status on the anthropic partnership and have we kind of progressed further from kind of just testing or early testing the models or the training

Speaker 14: Yeah, I mean, AI in general, as I said, we're moving from this world of LLMs that can tell you about things about the text of the internet to how models are increasingly trying to move towards real-world models and real-world models needing real-world data. Planet has this stack that's necessary. We're doing these research collaborations that we've mentioned, and they're very exciting. What they're really building a foundation towards is, you know, we've been building these bespoke solutions, these what we call AI-enabled solutions for our broad area PlanetScope daily scan. The maritime domain awareness solution, the global monitoring solution, and the area monitoring solution for civil government. Those are really good, and they're starting to take off, and that's what's driving a lot of the great growth that you're seeing in the numbers. Yeah, I mean, AI in general, as I said, we're moving from this world of LLMs that can tell you about things about the text of the internet to how models are increasingly trying to move towards real-world models and real-world models needing real-world data. yeah i mean ai in general as i said we're moving from this world of llms that can tell you about things about the text of the internet to how models are increasingly trying to move towards real-world models and real-world models needing real-world data Planet has this stack that's necessary. planet has this stack that's necessary We're doing these research collaborations that we've mentioned, and they're very exciting. we're doing these research collaborations that we've mentioned and they're very exciting What they're really building a foundation towards is, you know, we've been building these bespoke solutions, these what we call AI-enabled solutions for our broad area PlanetScope daily scan. what they're really building a foundation towards is you know we've been building these bespoke solutions these what we call ai-enabled solutions for our broad area planetscope daily scan The maritime domain awareness solution, the global monitoring solution, and the area monitoring solution for civil government. the maritime domain awareness solution the global monitoring solution and the area monitoring solution for civil government Those are really good, and they're starting to take off, and that's what's driving a lot of the great growth that you're seeing in the numbers. those are really good and they're starting to take off and that's what's driving a lot of the great growth that you're seeing in the numbers AI has this potential of making that more generic. That is, that anyone can turn up, build their own bespoke application of equivalent fidelity in short order, like maybe within an hour, and, you know, in a completely bespoke way for their needs. That is just on the horizon. What we're focused on with those research collaborations is how we can build towards that capability. That is what I mean. What's so exciting about that is the ability to unlock all the potential of our data, especially for commercial and civil government markets where we've been less focused of late because of the strong interest on the defense and intelligence side. They are huge markets for Planet. AI has this potential of making that more generic. ai has this potential of making that more generic That is, that anyone can turn up, build their own bespoke application of equivalent fidelity in short order, like maybe within an hour, and, you know, in a completely bespoke way for their needs. that is that anyone can turn up build their own bespoke application of equivalent fidelity in short order like maybe within an hour and you know in a completely bespoke way for their needs That is just on the horizon. that is just on the horizon What we're focused on with those research collaborations is how we can build towards that capability. what we're focused on with those research collaborations is how we can build towards that capability That is what I mean. that is what i mean What's so exciting about that is the ability to unlock all the potential of our data, especially for commercial and civil government markets where we've been less focused of late because of the strong interest on the defense and intelligence side. what's so exciting about that is the ability to unlock all the potential of our data especially for commercial and civil government markets where we've been less focused of late because of the strong interest on the defense and intelligence side They are huge markets for Planet. they are huge markets for planet Basically, that's the direction and leaning of those partnerships is enabling us to build out that capability to expand the TAM. Basically, that's the direction and leaning of those partnerships is enabling us to build out that capability to expand the TAM. basically that's the direction and leaning of those partnerships is enabling us to build out that capability to expand the tam

Speaker 6: Absolutely. Absolutely. absolutely

Speaker 14: Does that answer the question? Does that answer the question? does that answer the question

Speaker 6: Just a follow-up on that. Yeah. Just a follow-up on that. just a follow-up on that Yeah. yeah

Speaker 14: Yeah. Yeah. yeah

Speaker 6: Yeah, just a follow-up on that. To get there, I guess, what do you see as the biggest, I don't know if you want to say bottleneck or thing we should look out for? Is it a question of just you need more compute? Is it a question of just- Yeah, just a follow-up on that. yeah just a follow-up on that To get there, I guess, what do you see as the biggest, I don't know if you want to say bottleneck or thing we should look out for? to get there i guess what do you see as the biggest i don't know if you want to say bottleneck or thing we should look out for Is it a question of just you need more compute? is it a question of just you need more compute Is it a question of just- is it a question of just-

Speaker 14: Mm. Mm. mm

Speaker 6: You know, it takes time, more training? Like, how do you think about, like, the path there and the bottlenecks? You know, it takes time, more training? you know it takes time more training Like, how do you think about, like, the path there and the bottlenecks? like how do you think about like the path there and the bottlenecks

Speaker 14: Well, it's complex and evolving in that, the space is changing so fast. I mean, literally, we are seeing capabilities that just a couple of months ago we weren't able to do because of the advances in especially coding. Like that makes it, now that you can even build whole applications very quickly. We are just seeing that, potentially take off much faster than we thought. There's nothing really standing in the way per se. We have the data, that's the critical ingredient, and it's the differentiating ingredient for AI. As I said briefly, like, I mean, in many ways, AI, it's commoditizing the software layer more, that's making the data piece most useful for AI. Well, it's complex and evolving in that, the space is changing so fast. well it's complex and evolving in that the space is changing so fast I mean, literally, we are seeing capabilities that just a couple of months ago we weren't able to do because of the advances in especially coding. i mean literally we are seeing capabilities that just a couple of months ago we weren't able to do because of the advances in especially coding Like that makes it, now that you can even build whole applications very quickly. like that makes it now that you can even build whole applications very quickly We are just seeing that, potentially take off much faster than we thought. we are just seeing that potentially take off much faster than we thought There's nothing really standing in the way per se. there's nothing really standing in the way per se We have the data, that's the critical ingredient, and it's the differentiating ingredient for AI. we have the data that's the critical ingredient and it's the differentiating ingredient for ai As I said briefly, like, I mean, in many ways, AI, it's commoditizing the software layer more, that's making the data piece most useful for AI. as i said briefly like i mean in many ways ai it's commoditizing the software layer more that's making the data piece most useful for ai You know, that's very differentiating that we have such this unique data set coming into it. There's nothing holding us back there. It's moving very fast. That's why I was saying that I think you're gonna start to see this come to fruition this year. Watch this space. You know, that's very differentiating that we have such this unique data set coming into it. you know that's very differentiating that we have such this unique data set coming into it There's nothing holding us back there. there's nothing holding us back there It's moving very fast. it's moving very fast That's why I was saying that I think you're gonna start to see this come to fruition this year. that's why i was saying that i think you're gonna start to see this come to fruition this year Watch this space. watch this space

Speaker 6: Amazing. Thank you. Amazing. amazing Thank you. thank you

Speaker 11: Your next question comes from the line of Kristine Liwag from Morgan Stanley. Please go ahead. Your next question comes from the line of Kristine Liwag from Morgan Stanley. your next question comes from the line of kristine liwag from morgan stanley Please go ahead. please go ahead

Speaker 7: Hi, this is Gaby on for Kristine Liwag. Congratulations on the quarter. Just given your recent decision to extend the satellite imagery delay in the Middle East to 14 days as a result of the ongoing conflict, have you seen any changes in customer behavior, and are there any potential contractual implications that we should maybe be aware of? Hi, this is Gaby on for Kristine Liwag. hi this is gaby on for kristine liwag Congratulations on the quarter. congratulations on the quarter Just given your recent decision to extend the satellite imagery delay in the Middle East to 14 days as a result of the ongoing conflict, have you seen any changes in customer behavior, and are there any potential contractual implications that we should maybe be aware of? just given your recent decision to extend the satellite imagery delay in the middle east to 14 days as a result of the ongoing conflict have you seen any changes in customer behavior and are there any potential contractual implications that we should maybe be aware of

Speaker 14: Yeah. I mean, the short answer is nothing material. Look, what we're focused on there is helping our critical customers in the region do the things they need, which is get critical answers fast and trying to help them through that. We're focused and mainly heads down on supporting those customers in this critical time as best we can. The delay is a lot to do with the balance of thinking about those operational needs and making sure we don't put people in harm's way, and it's very genuine needs. At the same time, our transparency and accountability mission that we care about and ensuring all of our actors get access eventually. It's a carefully thought through decision. We're just trying to do our best to help the people that need it. Yeah. yeah I mean, the short answer is nothing material. i mean the short answer is nothing material Look, what we're focused on there is helping our critical customers in the region do the things they need, which is get critical answers fast and trying to help them through that. look what we're focused on there is helping our critical customers in the region do the things they need which is get critical answers fast and trying to help them through that We're focused and mainly heads down on supporting those customers in this critical time as best we can. we're focused and mainly heads down on supporting those customers in this critical time as best we can The delay is a lot to do with the balance of thinking about those operational needs and making sure we don't put people in harm's way, and it's very genuine needs. the delay is a lot to do with the balance of thinking about those operational needs and making sure we don't put people in harm's way and it's very genuine needs At the same time, our transparency and accountability mission that we care about and ensuring all of our actors get access eventually. at the same time our transparency and accountability mission that we care about and ensuring all of our actors get access eventually It's a carefully thought through decision. it's a carefully thought through decision We're just trying to do our best to help the people that need it. we're just trying to do our best to help the people that need it

Speaker 7: Great. Thank you. Super helpful color. If I could ask a quick follow-up. I mean, you announced the satellite services agreement with Sweden in January. Can you just talk about how you're seeing the pipeline for similar deals progressing relative to what you had laid out at the Investor Day? What are you seeing in terms of conversion timelines and potential scale of upcoming opportunities? Great. great Thank you. thank you Super helpful color. super helpful color If I could ask a quick follow-up. if i could ask a quick follow-up I mean, you announced the satellite services agreement with Sweden in January. i mean you announced the satellite services agreement with sweden in january Can you just talk about how you're seeing the pipeline for similar deals progressing relative to what you had laid out at the Investor Day? can you just talk about how you're seeing the pipeline for similar deals progressing relative to what you had laid out at the investor day What are you seeing in terms of conversion timelines and potential scale of upcoming opportunities? what are you seeing in terms of conversion timelines and potential scale of upcoming opportunities

Speaker 14: Yeah, I mean, as I've mentioned in my prepared remarks, since that October Investor Day, both the number and the average size of those deals has been increasing. I mean, just to give you a sense that it is a strong market demand right now, even stronger than we had said then. You know, it's a bit too early to talk about sort of average deal length because it's just these are very few in number, right? I haven't got any comments to that effect, but overall, the demand is very strong. Yeah, I mean, as I've mentioned in my prepared remarks, since that October Investor Day, both the number and the average size of those deals has been increasing. yeah i mean as i've mentioned in my prepared remarks since that october investor day both the number and the average size of those deals has been increasing I mean, just to give you a sense that it is a strong market demand right now, even stronger than we had said then. i mean just to give you a sense that it is a strong market demand right now even stronger than we had said then You know, it's a bit too early to talk about sort of average deal length because it's just these are very few in number, right? you know it's a bit too early to talk about sort of average deal length because it's just these are very few in number right I haven't got any comments to that effect, but overall, the demand is very strong. i haven't got any comments to that effect but overall the demand is very strong

Speaker 7: Great. Thanks so much. Great. great Thanks so much. thanks so much

Speaker 11: Your next question comes from the line of Jeff Van Rhee from Craig-Hallum Capital Group. Please go ahead. Your next question comes from the line of Jeff Van Rhee from Craig-Hallum Capital Group. your next question comes from the line of jeff van rhee from craig-hallum capital group Please go ahead. please go ahead

Speaker 9: Great. Thanks for taking the questions, guys. Congrats, a lot here to love. Let me start first with civil commercial, about 40%, a little less than that as a percent of revenues. What do you think? You know, when you look at those markets, obviously DNI is killing it. You've got a lot of sovereign deals flowing through and it makes sense to be pursuing those deals. I'm wondering how you think about civil and commercial and what dynamics have to play out for those markets to reaccelerate. Great. great Thanks for taking the questions, guys. thanks for taking the questions guys Congrats, a lot here to love. congrats a lot here to love Let me start first with civil commercial, about 40%, a little less than that as a percent of revenues. let me start first with civil commercial about 40% a little less than that as a percent of revenues What do you think? what do you think You know, when you look at those markets, obviously DNI is killing it. you know when you look at those markets obviously dni is killing it You've got a lot of sovereign deals flowing through and it makes sense to be pursuing those deals. you've got a lot of sovereign deals flowing through and it makes sense to be pursuing those deals I'm wondering how you think about civil and commercial and what dynamics have to play out for those markets to reaccelerate. i'm wondering how you think about civil and commercial and what dynamics have to play out for those markets to reaccelerate

Speaker 14: Well, as I said, see earlier answer to Edison about the AI piece, because that's what unlocks these things, and enables it. We're just on the precipice of that. Yeah, I see that beginning to come this year. Just to be clear, in my opinion, the biggest markets are those two segments, not defense and intelligence. Well, as I said, see earlier answer to Edison about the AI piece, because that's what unlocks these things, and enables it. well as i said see earlier answer to edison about the ai piece because that's what unlocks these things and enables it We're just on the precipice of that. we're just on the precipice of that Yeah, I see that beginning to come this year. yeah i see that beginning to come this year Just to be clear, in my opinion, the biggest markets are those two segments, not defense and intelligence. just to be clear in my opinion the biggest markets are those two segments not defense and intelligence

Speaker 9: Mm-hmm. Mm-hmm. mm-hmm

Speaker 14: We think that is a long and sustaining and really great market. The civil government market is huge. The commercial market is huge. It's been lacking those critical solutions. Here we have a generic way of crossing that chasm to the fuller solution that enables us to unlock that market. We know those capabilities, that those answers are latent in our data, and this gives the bridge to the actual solution that the customers need. I mean, you know, it's back to my earlier point. AI is gonna enable it, and I think we're gonna see the beginnings of that really take off this year. We think that is a long and sustaining and really great market. we think that is a long and sustaining and really great market The civil government market is huge. the civil government market is huge The commercial market is huge. the commercial market is huge It's been lacking those critical solutions. it's been lacking those critical solutions Here we have a generic way of crossing that chasm to the fuller solution that enables us to unlock that market. here we have a generic way of crossing that chasm to the fuller solution that enables us to unlock that market We know those capabilities, that those answers are latent in our data, and this gives the bridge to the actual solution that the customers need. we know those capabilities that those answers are latent in our data and this gives the bridge to the actual solution that the customers need I mean, you know, it's back to my earlier point. i mean you know it's back to my earlier point AI is gonna enable it, and I think we're gonna see the beginnings of that really take off this year. ai is gonna enable it and i think we're gonna see the beginnings of that really take off this year

Speaker 9: Over to the sovereign deals for a second. I mean, obviously, three mega deals here, roughly trailing 12 months, give or take. You know Over to the sovereign deals for a second. over to the sovereign deals for a second I mean, obviously, three mega deals here, roughly trailing 12 months, give or take. i mean obviously three mega deals here roughly trailing 12 months give or take You know you know

Speaker 14: Yeah. Yeah. yeah

Speaker 9: It sounds like the pipeline has expanded. Sounds like you're thinking, you know, deal count there should improve. I mean, just any other observations on those sovereign deals, on the magnitude of the growth in the pipeline? Sounds like it really accelerated even further potentially in the last 90 days. It sounds like the pipeline has expanded. it sounds like the pipeline has expanded Sounds like you're thinking, you know, deal count there should improve. sounds like you're thinking you know deal count there should improve I mean, just any other observations on those sovereign deals, on the magnitude of the growth in the pipeline? i mean just any other observations on those sovereign deals on the magnitude of the growth in the pipeline Sounds like it really accelerated even further potentially in the last 90 days. sounds like it really accelerated even further potentially in the last 90 days

Speaker 14: No, I didn't want to quantify that, but just give you a sense that it is really growing and it's very strong. Yeah, that's it. No, I didn't want to quantify that, but just give you a sense that it is really growing and it's very strong. no i didn't want to quantify that but just give you a sense that it is really growing and it's very strong Yeah, that's it. yeah that's it

Speaker 2: The only The only the only

Speaker 9: Okay. Okay. okay

Speaker 2: Another thing that I would add, Jeff, which I think is an important point, is that when we are selling these sovereign capabilities, we are coupling with that our data and solutions. It actually is the synergies across that that is a competitive differentiator because we can drive value to these customers out of the gate. We can give them visibility and intelligence that they didn't have before as we work with them over the longer term contract to build out what their sovereign capabilities will ultimately be. It's worth pointing out that actually a lot of our backlog growth is in data and solutions. In fact, that part of the backlog has almost doubled year-over-year. Another thing that I would add, Jeff, which I think is an important point, is that when we are selling these sovereign capabilities, we are coupling with that our data and solutions. another thing that i would add jeff which i think is an important point is that when we are selling these sovereign capabilities we are coupling with that our data and solutions It actually is the synergies across that that is a competitive differentiator because we can drive value to these customers out of the gate. it actually is the synergies across that that is a competitive differentiator because we can drive value to these customers out of the gate We can give them visibility and intelligence that they didn't have before as we work with them over the longer term contract to build out what their sovereign capabilities will ultimately be. we can give them visibility and intelligence that they didn't have before as we work with them over the longer term contract to build out what their sovereign capabilities will ultimately be It's worth pointing out that actually a lot of our backlog growth is in data and solutions. it's worth pointing out that actually a lot of our backlog growth is in data and solutions In fact, that part of the backlog has almost doubled year-over-year. in fact that part of the backlog has almost doubled year-over-year

Speaker 9: No, that's great color. Last one, if I could, just on the Owl. Any updates there that you could share? No, that's great color. no that's great color Last one, if I could, just on the Owl. last one if i could just on the owl Any updates there that you could share? any updates there that you could share

Speaker 14: Yeah. I mean, we're building that tech demo as we announced last year towards that improved daily scan capability. The team's working hard on it. It's going well. It's quite an incredible capability that we're obviously building there. Just remind everyone that we're moving towards 1-meter scan rather than 3-meter, and that's roughly 10x more data per unit area of the ground and roughly a 10x improvement in latency as well, because they will be equipped with both onboard compute systems as well as satellite-to-satellite comms so that we can get the data back as well. Those things are all gonna be faster as well, so much lower latency of 10x there too. It's really a significant improvement on that system. Yeah. yeah I mean, we're building that tech demo as we announced last year towards that improved daily scan capability. i mean we're building that tech demo as we announced last year towards that improved daily scan capability The team's working hard on it. the team's working hard on it It's going well. it's going well It's quite an incredible capability that we're obviously building there. it's quite an incredible capability that we're obviously building there Just remind everyone that we're moving towards 1-meter scan rather than 3-meter, and that's roughly 10 x more data per unit area of the ground and roughly a 10x improvement in latency as well, because they will be equipped with both onboard compute systems as well as satellite-to-satellite comms so that we can get the data back as well. just remind everyone that we're moving towards 1-meter scan rather than 3-meter and that's roughly 10 x more data per unit area of the ground and roughly a 10x improvement in latency as well because they will be equipped with both onboard compute systems as well as satellite-to-satellite comms so that we can get the data back as well Those things are all gonna be faster as well, so much lower latency of 10x there too. those things are all gonna be faster as well so much lower latency of 10x there too It's really a significant improvement on that system. it's really a significant improvement on that system Yeah, we're looking forward to launching a demo. Yeah, we're looking forward to launching a demo. yeah we're looking forward to launching a demo

Speaker 9: Sounds great. Thanks, guys. Sounds great. sounds great Thanks, guys. thanks guys

Speaker 2: Thanks, Jeff. Thanks, Jeff. thanks jeff

Speaker 11: Your next question comes from the line of John Gooden from Citibank. Please go ahead. Your next question comes from the line of John Gooden from Citibank. your next question comes from the line of john gooden from citibank Please go ahead. please go ahead

Speaker 10: Hey, guys. Thanks for taking my question. Really appreciate it. I just wanted to square off the backlog strength and all of the positive commentary with revenue guidance. The revenue guidance is fantastic, don't get me wrong, but even so, it just seems like there's upside to it based on the commentary of, you know, incredibly strong demand signals, particularly in Europe, as well as the fact that as a percentage of the backlog that you guys have right now, it doesn't seem like the revenue guide is particularly large percentage versus maybe how you've set guidance in the past. Hey, guys. hey guys Thanks for taking my question. thanks for taking my question Really appreciate it. really appreciate it I just wanted to square off the backlog strength and all of the positive commentary with revenue guidance. i just wanted to square off the backlog strength and all of the positive commentary with revenue guidance The revenue guidance is fantastic, don't get me wrong, but even so, it just seems like there's upside to it based on the commentary of, you know, incredibly strong demand signals, particularly in Europe, as well as the fact that as a percentage of the backlog that you guys have right now, it doesn't seem like the revenue guide is particularly large percentage versus maybe how you've set guidance in the past. the revenue guidance is fantastic don't get me wrong but even so it just seems like there's upside to it based on the commentary of you know incredibly strong demand signals particularly in europe as well as the fact that as a percentage of the backlog that you guys have right now it doesn't seem like the revenue guide is particularly large percentage versus maybe how you've set guidance in the past

Speaker 2: Yeah. It's obviously a good question, John. We're in a really favorable position right now in terms of the level of visibility that we have. Obviously, there's a lot of execution that goes into turning backlog into revenue, and we are laser-focused on that. In terms of setting guidance, I think what you've seen from us, particularly in recent periods, is we try to give ourselves room for the fact that, you know, on these big mission-critical types of transactions and contracts, there are things that can shift from quarter to quarter, and we wanna give room in our guidance for that to happen so that we can keep our customers, you know, front and center, around execution. Yeah. yeah It's obviously a good question, John. it's obviously a good question john We're in a really favorable position right now in terms of the level of visibility that we have. we're in a really favorable position right now in terms of the level of visibility that we have Obviously, there's a lot of execution that goes into turning backlog into revenue, and we are laser-focused on that. obviously there's a lot of execution that goes into turning backlog into revenue and we are laser-focused on that In terms of setting guidance, I think what you've seen from us, particularly in recent periods, is we try to give ourselves room for the fact that, you know, on these big mission-critical types of transactions and contracts, there are things that can shift from quarter to quarter, and we wanna give room in our guidance for that to happen so that we can keep our customers, you know, front and center, around execution. in terms of setting guidance i think what you've seen from us particularly in recent periods is we try to give ourselves room for the fact that you know on these big mission-critical types of transactions and contracts there are things that can shift from quarter to quarter and we wanna give room in our guidance for that to happen so that we can keep our customers you know front and center around execution Similarly, we have a great pipeline of opportunity, but when those deals land, given how big they can be, can really impact revenue in the year. We tend to assume that new signings are back-half loaded, which give us opportunity to deliver upside if that doesn't end up being the case, if it ends up landing sooner. Doesn't put us in a position where we're out over our skis in terms of the numbers we've given you. Similarly, we have a great pipeline of opportunity, but when those deals land, given how big they can be, can really impact revenue in the year. similarly we have a great pipeline of opportunity but when those deals land given how big they can be can really impact revenue in the year We tend to assume that new signings are back-half loaded, which give us opportunity to deliver upside if that doesn't end up being the case, if it ends up landing sooner. we tend to assume that new signings are back-half loaded which give us opportunity to deliver upside if that doesn't end up being the case if it ends up landing sooner Doesn't put us in a position where we're out over our skis in terms of the numbers we've given you. doesn't put us in a position where we're out over our skis in terms of the numbers we've given you

Speaker 10: Okay. That makes a lot of sense. It sounds like, you know, that there are some layers of conservatism in there which is appropriate, and we'll see how that plays out throughout the year. If I could ask one more. Just in terms of the activities in the Middle East, the conflict there, do you feel that has additionally kind of turbocharged the demand for your product in any way? I know the backdrop is strong, but has that had an obvious impact, you know, as sort of a recent event? Okay. okay That makes a lot of sense. that makes a lot of sense It sounds like, you know, that there are some layers of conservatism in there which is appropriate, and we'll see how that plays out throughout the year. it sounds like you know that there are some layers of conservatism in there which is appropriate and we'll see how that plays out throughout the year If I could ask one more. if i could ask one more Just in terms of the activities in the Middle East, the conflict there, do you feel that has additionally kind of turbocharged the demand for your product in any way? just in terms of the activities in the middle east the conflict there do you feel that has additionally kind of turbocharged the demand for your product in any way I know the backdrop is strong, but has that had an obvious impact, you know, as sort of a recent event? i know the backdrop is strong but has that had an obvious impact you know as sort of a recent event

Speaker 14: Well, obviously, there's a huge amount of focus in that. Again, as I said earlier, we're just focused on delivering pieces. We're doing mission-critical things. We're trying to focus on that. We'll see. It's early days. Well, obviously, there's a huge amount of focus in that. well obviously there's a huge amount of focus in that Again, as I said earlier, we're just focused on delivering pieces. again as i said earlier we're just focused on delivering pieces We're doing mission-critical things. we're doing mission-critical things We're trying to focus on that. we're trying to focus on that We'll see. we'll see It's early days. it's early days

Speaker 2: Yeah. I think, you know, one of the things that we have seen in these types of situation is you do see an increase in usage as there's just more urgency in getting as much data as possible around the situation. You know, ultimately, as Will said, situations like this can be very dynamic. Yeah. yeah I think, you know, one of the things that we have seen in these types of situation is you do see an increase in usage as there's just more urgency in getting as much data as possible around the situation. i think you know one of the things that we have seen in these types of situation is you do see an increase in usage as there's just more urgency in getting as much data as possible around the situation You know, ultimately, as Will said, situations like this can be very dynamic. you know ultimately as will said situations like this can be very dynamic

Speaker 10: Got it. Thank you. Got it. got it Thank you. thank you

Speaker 11: Your next question comes from the line of Trevor Walsh from Citizens. Please go ahead. Your next question comes from the line of Trevor Walsh from Citizens. your next question comes from the line of trevor walsh from citizens Please go ahead. please go ahead

Speaker 13: Great. Hey, all. Thanks for taking my questions. Will, you called out the SHIELD IDIQ in your prepared remarks. Could you maybe just give us a sense? I know early days on this, very large project, and a lot of it's sensitive, but can you give us a sense of how you're thinking about that opportunity? Is that something where it's just kind of bread and butter Planet Labs Earth observation data that you would be providing for that as you go after contracts and opportunities there? Or might it even look like something more akin to satellite services, where you might even just building spacecraft that are fairly non-traditional for you guys, but just being used for all the things that are part of that project? Great. great Hey, all. hey all Thanks for taking my questions. thanks for taking my questions Will, you called out the SHIELD IDIQ in your prepared remarks. will you called out the shield idiq in your prepared remarks Could you maybe just give us a sense? could you maybe just give us a sense I know early days on this, very large project, and a lot of it's sensitive, but can you give us a sense of how you're thinking about that opportunity? i know early days on this very large project and a lot of it's sensitive but can you give us a sense of how you're thinking about that opportunity Is that something where it's just kind of bread and butter Planet Labs Earth observation data that you would be providing for that as you go after contracts and opportunities there? is that something where it's just kind of bread and butter planet labs earth observation data that you would be providing for that as you go after contracts and opportunities there Or might it even look like something more akin to satellite services, where you might even just building spacecraft that are fairly non-traditional for you guys, but just being used for all the things that are part of that project? or might it even look like something more akin to satellite services where you might even just building spacecraft that are fairly non-traditional for you guys but just being used for all the things that are part of that project

Speaker 14: Well, yeah. As you say, it's early days. There's obviously a big opportunity. There's you know, huge budget behind it. The specific ways in which we fit in will have to be figured out as we understand the architecture, and they're still working on many of those aspects. There are, of course, ways in which our present data sets could fit into that early warning of certain things, strategic analysis across broad areas. That obviously makes sense. Right now, that is merely a vehicle, and then we'll compete on awards within that, and that's the same for all the people that have got awards under that system. Yeah. Obviously finding unknown unknowns, you know, there could be specific missions, but it's very early days to be thinking about that. Well, yeah. well yeah As you say, it's early days. as you say it's early days There's obviously a big opportunity. there's obviously a big opportunity There's you know, huge budget behind it. there's you know huge budget behind it The specific ways in which we fit in will have to be figured out as we understand the architecture, and they're still working on many of those aspects. the specific ways in which we fit in will have to be figured out as we understand the architecture and they're still working on many of those aspects There are, of course, ways in which our present data sets could fit into that early warning of certain things, strategic analysis across broad areas. there are of course ways in which our present data sets could fit into that early warning of certain things strategic analysis across broad areas That obviously makes sense. that obviously makes sense Right now, that is merely a vehicle, and then we'll compete on awards within that, and that's the same for all the people that have got awards under that system. right now that is merely a vehicle and then we'll compete on awards within that and that's the same for all the people that have got awards under that system Yeah. yeah Obviously finding unknown unknowns, you know, there could be specific missions, but it's very early days to be thinking about that. obviously finding unknown unknowns you know there could be specific missions but it's very early days to be thinking about that What I will say is that we're continuing to lean into specific opportunities that are very live right now, like in with INDOPACOM, with our Navy customers and others. You know, we're seeing a lot of interest in COCOMs around the world. The department has a lot of interest across the board, and we're leaning into it. What I will say is that we're continuing to lean into specific opportunities that are very live right now, like in with INDOPACOM, with our Navy customers and others. what i will say is that we're continuing to lean into specific opportunities that are very live right now like in with indopacom with our navy customers and others You know, we're seeing a lot of interest in COCOMs around the world. you know we're seeing a lot of interest in cocoms around the world The department has a lot of interest across the board, and we're leaning into it. the department has a lot of interest across the board and we're leaning into it

Speaker 13: Great. Awesome. Appreciate that. Ashley, maybe just one follow-up for you. I appreciate the color you gave around free cash flow. I know you guys aren't giving an official guide, but just given how strong you guys ended this current fiscal year and as we think about 2027, there can be a bit of a step down from just going from $50 million to something that's just generally positive. So just wanna make sure we don't get just given the CapEx spend and everything else, if you could just give us a little bit of maybe guardrails as to how we think about that for 2027, that would be great. Great. great Awesome. awesome Appreciate that. appreciate that Ashley, maybe just one follow-up for you. ashley maybe just one follow-up for you I appreciate the color you gave around free cash flow. i appreciate the color you gave around free cash flow I know you guys aren't giving an official guide, but just given how strong you guys ended this current fiscal year and as we think about 2027, there can be a bit of a step down from just going from $50 million to something that's just generally positive. i know you guys aren't giving an official guide but just given how strong you guys ended this current fiscal year and as we think about 2027 there can be a bit of a step down from just going from $50 million to something that's just generally positive So just wanna make sure we don't get just given the CapEx spend and everything else, if you could just give us a little bit of maybe guardrails as to how we think about that for 2027, that would be great. so just wanna make sure we don't get just given the capex spend and everything else if you could just give us a little bit of maybe guardrails as to how we think about that for 2027 that would be great

Speaker 2: Yeah. I mean, first I'll just reiterate the point that I made. We definitely expect there to be pretty significant fluctuations quarter to quarter. Just like I said, timing of procurement versus timing of milestone payments can cause, you know, one quarter to be much more positive and another quarter to be, you know, significantly negative. That's one caution that I provide. That makes it a little bit harder to give, you know, very precise guidance around it, which is why I haven't. To your point, you know, depending on, you know, how much more of this opportunity we continue to realize, it would not make sense for us to optimize expanding free cash flow on the year versus setting ourselves up to both deliver against the contracts we have and to bring more on. Yeah. yeah I mean, first I'll just reiterate the point that I made. i mean first i'll just reiterate the point that i made We definitely expect there to be pretty significant fluctuations quarter to quarter. we definitely expect there to be pretty significant fluctuations quarter to quarter Just like I said, timing of procurement versus timing of milestone payments can cause, you know, one quarter to be much more positive and another quarter to be, you know, significantly negative. just like i said timing of procurement versus timing of milestone payments can cause you know one quarter to be much more positive and another quarter to be you know significantly negative That's one caution that I provide. that's one caution that i provide That makes it a little bit harder to give, you know, very precise guidance around it, which is why I haven't. that makes it a little bit harder to give you know very precise guidance around it which is why i haven't To your point, you know, depending on, you know, how much more of this opportunity we continue to realize, it would not make sense for us to optimize expanding free cash flow on the year versus setting ourselves up to both deliver against the contracts we have and to bring more on. to your point you know depending on you know how much more of this opportunity we continue to realize it would not make sense for us to optimize expanding free cash flow on the year versus setting ourselves up to both deliver against the contracts we have and to bring more on If that offers enough color to you without giving specific guidance, which I'm really not in a position to do, we're not focused on, you know, kind of, sustaining or expanding free cash flow from last year, but really focused on. If that offers enough color to you without giving specific guidance, which I'm really not in a position to do, we're not focused on, you know, kind of, sustaining or expanding free cash flow from last year, but really focused on. if that offers enough color to you without giving specific guidance which i'm really not in a position to do we're not focused on you know kind of sustaining or expanding free cash flow from last year but really focused on

Speaker 13: Great Great great

Speaker 2: balancing it quarter to quarter and leaning into the market. balancing it quarter to quarter and leaning into the market. balancing it quarter to quarter and leaning into the market

Speaker 13: That makes sense. That's helpful. Thanks, Ashley. That makes sense. that makes sense That's helpful. that's helpful Thanks, Ashley. thanks ashley

Speaker 2: Yeah. Thank you. Yeah. yeah Thank you. thank you

Speaker 11: Your next question comes from the line of Greg Pendy from Clear Street. Please go ahead. Your next question comes from the line of Greg Pendy from Clear Street. your next question comes from the line of greg pendy from clear street Please go ahead. please go ahead

Speaker 8: Hey guys, thanks for taking my question. Just one quick one just so that I understand kind of the approach on this year of leaning in in terms of the commercial and civil side. I mean, it's hard to think back, but it you know, you did have a cost rationalization program at one time, and your sales and marketing is down around 15% from fiscal 2024, yet your revenues are up roughly 40%. Is it kind of that the customers through Anthropic will figure out how to use the data and how valuable it is into their daily workflows? Or do you think that you know, you'll need some boots on the ground to educate the civil and commercial markets? Thanks. Hey guys, thanks for taking my question. hey guys thanks for taking my question Just one quick one just so that I understand kind of the approach on this year of leaning in in terms of the commercial and civil side. just one quick one just so that i understand kind of the approach on this year of leaning in in terms of the commercial and civil side I mean, it's hard to think back, but it you know, you did have a cost rationalization program at one time, and your sales and marketing is down around 15% from fiscal 2024, yet your revenues are up roughly 40%. i mean it's hard to think back but it you know you did have a cost rationalization program at one time and your sales and marketing is down around 15% from fiscal 2024 yet your revenues are up roughly 40% Is it kind of that the customers through Anthropic will figure out how to use the data and how valuable it is into their daily workflows? is it kind of that the customers through anthropic will figure out how to use the data and how valuable it is into their daily workflows Or do you think that you know, you'll need some boots on the ground to educate the civil and commercial markets? or do you think that you know you'll need some boots on the ground to educate the civil and commercial markets Thanks. thanks

Speaker 2: Yeah. Greg, it's a very good call-out. We did, you know, realign the team across the board to really focus on where we had the largest account opportunities, which I think did disproportionately impact, you know, how much resource we were putting behind going after a more distributed commercial market. As we said, we were building out the platform to enable smaller customers to really access the data on a self-serve basis. I think as we are growing those markets and leaning into the AI that Will highlighted, we will be making some targeted investments in those markets where we're seeing the most traction out of the gate. We do have feet on the street going and meeting with customers and demonstrating for them. Yeah. yeah Greg, it's a very good call-out. greg it's a very good call-out We did, you know, realign the team across the board to really focus on where we had the largest account opportunities, which I think did disproportionately impact, you know, how much resource we were putting behind going after a more distributed commercial market. we did you know realign the team across the board to really focus on where we had the largest account opportunities which i think did disproportionately impact you know how much resource we were putting behind going after a more distributed commercial market As we said, we were building out the platform to enable smaller customers to really access the data on a self-serve basis. as we said we were building out the platform to enable smaller customers to really access the data on a self-serve basis I think as we are growing those markets and leaning into the AI that Will highlighted, we will be making some targeted investments in those markets where we're seeing the most traction out of the gate. i think as we are growing those markets and leaning into the ai that will highlighted we will be making some targeted investments in those markets where we're seeing the most traction out of the gate We do have feet on the street going and meeting with customers and demonstrating for them. we do have feet on the street going and meeting with customers and demonstrating for them That is a really exciting part of these new capabilities that we have, is we can really show not tell in these customer meetings all the insights you can extract from the data to answer their specific questions. We did a lot of training with our sales team earlier this year, really showing them how to use these tools in demo environments. Obviously, the world has changed a lot in the last six years. You can do a lot of that without putting people on airplanes. But it will require some investments across sales and marketing. I did highlight that as one of the investment areas for us this year. That is a really exciting part of these new capabilities that we have, is we can really show not tell in these customer meetings all the insights you can extract from the data to answer their specific questions. that is a really exciting part of these new capabilities that we have is we can really show not tell in these customer meetings all the insights you can extract from the data to answer their specific questions We did a lot of training with our sales team earlier this year, really showing them how to use these tools in demo environments. we did a lot of training with our sales team earlier this year really showing them how to use these tools in demo environments Obviously, the world has changed a lot in the last six years. obviously the world has changed a lot in the last six years You can do a lot of that without putting people on airplanes. you can do a lot of that without putting people on airplanes But it will require some investments across sales and marketing. but it will require some investments across sales and marketing I did highlight that as one of the investment areas for us this year. i did highlight that as one of the investment areas for us this year

Speaker 8: That's very helpful. Thanks a lot. That's very helpful. that's very helpful Thanks a lot. thanks a lot

Speaker 11: Your next question comes from the line of Alex Latimore from Northland. Please go ahead. Your next question comes from the line of Alex Latimore from Northland. your next question comes from the line of alex latimore from northland Please go ahead. please go ahead

Speaker 1: Hey, guys. Excellent quarter. Alex Latimore here for Michael Latimore. I had one question. I just wanted to hit on guidance one more time. Good raise on guidance. I was wondering if you could talk about what assumptions are factored into that raise on guidance. Does this assume any new eight-plus figure wins or any commentary there? Hey, guys. hey guys Excellent quarter. excellent quarter Alex Latimore here for Michael Latimore. alex latimore here for michael latimore I had one question. i had one question I just wanted to hit on guidance one more time. i just wanted to hit on guidance one more time Good raise on guidance. good raise on guidance I was wondering if you could talk about what assumptions are factored into that raise on guidance. i was wondering if you could talk about what assumptions are factored into that raise on guidance Does this assume any new eight-plus figure wins or any commentary there? does this assume any new eight-plus figure wins or any commentary there

Speaker 2: Yes. Thanks, Alex. I'd say we're very balanced in terms of how we think about about those types of opportunities that may be in our pipeline, because obviously those could swing outcomes based on whether they come in or not. Typically what we'll look at is a pipeline of opportunity where if an eight-figure deal were to fall out of the pipeline, what type of backup we have for that opportunity and then probability adjust it. We are definitely looking at active opportunities, probabilities, and then giving ourselves room for those deals where maybe we don't have enough pipeline and make up for that one landing on time or in the year, which gives us opportunity to outperform. Like I said earlier, it doesn't put us in a position where we feel over our skis. Yes. yes Thanks, Alex. thanks alex I'd say we're very balanced in terms of how we think about about those types of opportunities that may be in our pipeline, because obviously those could swing outcomes based on whether they come in or not. i'd say we're very balanced in terms of how we think about about those types of opportunities that may be in our pipeline because obviously those could swing outcomes based on whether they come in or not Typically what we'll look at is a pipeline of opportunity where if an eight-figure deal were to fall out of the pipeline, what type of backup we have for that opportunity and then probability adjust it. typically what we'll look at is a pipeline of opportunity where if an eight-figure deal were to fall out of the pipeline what type of backup we have for that opportunity and then probability adjust it We are definitely looking at active opportunities, probabilities, and then giving ourselves room for those deals where maybe we don't have enough pipeline and make up for that one landing on time or in the year, which gives us opportunity to outperform. we are definitely looking at active opportunities probabilities and then giving ourselves room for those deals where maybe we don't have enough pipeline and make up for that one landing on time or in the year which gives us opportunity to outperform Like I said earlier, it doesn't put us in a position where we feel over our skis. like i said earlier it doesn't put us in a position where we feel over our skis

Speaker 1: Awesome. One more. I just wanted to hear if there's any footholds in the Golden Dome initiative. I understand there was a $10 billion incremental add to the Golden Dome initiative for space-based capabilities. I'm not sure if you're seeing any demand there for Planet systems. Any commentary around Golden Dome would be helpful. Awesome. awesome One more. one more I just wanted to hear if there's any footholds in the Golden Dome initiative. i just wanted to hear if there's any footholds in the golden dome initiative I understand there was a $10 billion incremental add to the Golden Dome initiative for space-based capabilities. i understand there was a $10 billion incremental add to the golden dome initiative for space-based capabilities I'm not sure if you're seeing any demand there for Planet systems. i'm not sure if you're seeing any demand there for planet systems Any commentary around Golden Dome would be helpful. any commentary around golden dome would be helpful

Speaker 14: Yeah. I sort of said all that I can on that at the minute. It's very early days as they're architecting that system, and there are potentially. That's, you know, the SHIELD IDIQ, just to be clear, is Golden Dome. That answer was about that. Again, it's a framework that we have, and now we will bid for actual awards under that program. We don't know what they are exactly yet. When we do, we will respond. Per my earlier answer, the general thing is giving domain awareness and other things that could be useful for that. We obviously have to see, wait and see what comes through that. Yeah. yeah I sort of said all that I can on that at the minute. i sort of said all that i can on that at the minute It's very early days as they're architecting that system, and there are potentially. it's very early days as they're architecting that system and there are potentially That's, you know, the SHIELD IDIQ, just to be clear, is Golden Dome. that's you know the shield idiq just to be clear is golden dome That answer was about that. that answer was about that Again, it's a framework that we have, and now we will bid for actual awards under that program. again it's a framework that we have and now we will bid for actual awards under that program We don't know what they are exactly yet. we don't know what they are exactly yet When we do, we will respond. when we do we will respond Per my earlier answer, the general thing is giving domain awareness and other things that could be useful for that. per my earlier answer the general thing is giving domain awareness and other things that could be useful for that We obviously have to see, wait and see what comes through that. we obviously have to see wait and see what comes through that

Speaker 1: Mm-hmm. Awesome. Excellent quarter. Thanks, guys. Mm-hmm. mm-hmm Awesome. awesome Excellent quarter. excellent quarter Thanks, guys. thanks guys

Speaker 2: Thank you. Thank you. thank you

Speaker 11: Your next question comes from the line of Caleb Henry from Quilty Space. Please go ahead. Your next question comes from the line of Caleb Henry from Quilty Space. your next question comes from the line of caleb henry from quilty space Please go ahead. please go ahead

Speaker 3: Hi, guys. Thanks for the call. Couple of questions on satellite manufacturing. Actually, first one, sorry, on Pelican. I've noticed that you guys lowered one of the Pelican satellites a little past 400 kilometers recently. Is that part of a larger fleet migration to a very low Earth orbit, or is there another way that we should think about that? Hi, guys. hi guys Thanks for the call. thanks for the call Couple of questions on satellite manufacturing. couple of questions on satellite manufacturing Actually, first one, sorry, on Pelican. actually first one sorry on pelican I've noticed that you guys lowered one of the Pelican satellites a little past 400 kilometers recently. i've noticed that you guys lowered one of the pelican satellites a little past 400 kilometers recently Is that part of a larger fleet migration to a very low Earth orbit, or is there another way that we should think about that? is that part of a larger fleet migration to a very low earth orbit or is there another way that we should think about that

Speaker 14: Yeah. We lower spacecraft, of course, to the operational altitudes. Pelican, part of the reason we call it Pelican was to fly low. Pelicans fly low to the water, and so we were sort of mimicking that when we were talking about this. They have ion engines such that they can fly really low. In time, that is part of the process that gets us to the 30 centimeter ultimate resolution target for those missions. But no changes to the plan. Those were just operational adjustments as we will start always with the satellites in a slightly higher orbit and bring them down to operational orbits as we progress. By the way, you may just on Pelican, you may wanna look in the associated deck with this earnings. Yeah. yeah We lower spacecraft, of course, to the operational altitudes. we lower spacecraft of course to the operational altitudes Pelican, part of the reason we call it Pelican was to fly low. pelican part of the reason we call it pelican was to fly low Pelicans fly low to the water, and so we were sort of mimicking that when we were talking about this. pelicans fly low to the water and so we were sort of mimicking that when we were talking about this They have ion engines such that they can fly really low. they have ion engines such that they can fly really low In time, that is part of the process that gets us to the 30 centimeter ultimate resolution target for those missions. in time that is part of the process that gets us to the 30 centimeter ultimate resolution target for those missions But no changes to the plan. but no changes to the plan Those were just operational adjustments as we will start always with the satellites in a slightly higher orbit and bring them down to operational orbits as we progress. those were just operational adjustments as we will start always with the satellites in a slightly higher orbit and bring them down to operational orbits as we progress By the way, you may just on Pelican, you may wanna look in the associated deck with this earnings. by the way you may just on pelican you may wanna look in the associated deck with this earnings There's a few really cool pictures of some of the fast response timelines that we had three pictures in about a year. It's very exciting to see. There's a few really cool pictures of some of the fast response timelines that we had three pictures in about a year. there's a few really cool pictures of some of the fast response timelines that we had three pictures in about a year It's very exciting to see. it's very exciting to see

Speaker 2: Seven hours Seven hours seven hours

Speaker 14: in an hour. No, yeah. In about an hour. I just had the great performance of that system, so it's very exciting and we've got multiple launches for more of those systems going out this year, so it's exciting times. Was there a broader question about the manufacturing? in an hour. in an hour No, yeah. no yeah In about an hour. in about an hour I just had the great performance of that system, so it's very exciting and we've got multiple launches for more of those systems going out this year, so it's exciting times. i just had the great performance of that system so it's very exciting and we've got multiple launches for more of those systems going out this year so it's exciting times Was there a broader question about the manufacturing? was there a broader question about the manufacturing

Speaker 3: Yeah. I definitely kinda looked through those pictures. Looking at the contract for Sweden and tying that into manufacturing, is that, can you give a sense of when those satellites are supposed to be delivered and how many satellites? Is that sort of the reason for the ramp up in manufacturing space in California? Yeah. yeah I definitely kinda looked through those pictures. i definitely kinda looked through those pictures Looking at the contract for Sweden and tying that into manufacturing, is that, can you give a sense of when those satellites are supposed to be delivered and how many satellites? looking at the contract for sweden and tying that into manufacturing is that can you give a sense of when those satellites are supposed to be delivered and how many satellites Is that sort of the reason for the ramp up in manufacturing space in California? is that sort of the reason for the ramp up in manufacturing space in california

Speaker 14: Nothing specific I gotta say specifically to that customer, but we're ramping up because of the demand overall, right? We're building fleets for multiple customers as well as for our own system. That demand is obviously already clear, such that we're expanding here in San Francisco and in Berlin. Nothing specific I gotta say specifically to that customer, but we're ramping up because of the demand overall, right? nothing specific i gotta say specifically to that customer but we're ramping up because of the demand overall right We're building fleets for multiple customers as well as for our own system. we're building fleets for multiple customers as well as for our own system That demand is obviously already clear, such that we're expanding here in San Francisco and in Berlin. that demand is obviously already clear such that we're expanding here in san francisco and in berlin

Speaker 3: Okay. Last question, I was just curious if you could shed more light on what makes 2026 the year you first anticipate seeing a return on investment on AI. Was there more of an aha moment that happened or is this just the natural evolution of the years of investment and how customers use Planet data? Okay. okay Last question, I was just curious if you could shed more light on what makes 2026 the year you first anticipate seeing a return on investment on AI. last question i was just curious if you could shed more light on what makes 2026 the year you first anticipate seeing a return on investment on ai Was there more of an aha moment that happened or is this just the natural evolution of the years of investment and how customers use Planet data? was there more of an aha moment that happened or is this just the natural evolution of the years of investment and how customers use planet data

Speaker 14: Yeah, that's an oversimplification because, I mean, we've had revenue from AI a fair bit before. What I meant is in terms of the big way in which AI can unleash those other market potential, and I think we're gonna really start to see those generic solutions that I mentioned, ways in which anyone can turn up, build a application, that's relevant to their needs and then start getting value. That unlocks other markets that we've been talking about for years that are latent in our data, agriculture, energy, insurance, finance, so on. I think that it's just more that I see that all the pieces are coming together such that that will come to fruition this year and you'll start to really see that take off. Yeah, that's an oversimplification because, I mean, we've had revenue from AI a fair bit before. yeah that's an oversimplification because i mean we've had revenue from ai a fair bit before What I meant is in terms of the big way in which AI can unleash those other market potential, and I think we're gonna really start to see those generic solutions that I mentioned, ways in which anyone can turn up, build a application, that's relevant to their needs and then start getting value. what i meant is in terms of the big way in which ai can unleash those other market potential and i think we're gonna really start to see those generic solutions that i mentioned ways in which anyone can turn up build a application that's relevant to their needs and then start getting value That unlocks other markets that we've been talking about for years that are latent in our data, agriculture, energy, insurance, finance, so on. that unlocks other markets that we've been talking about for years that are latent in our data agriculture energy insurance finance so on I think that it's just more that I see that all the pieces are coming together such that that will come to fruition this year and you'll start to really see that take off. i think that it's just more that i see that all the pieces are coming together such that that will come to fruition this year and you'll start to really see that take off Just like, you know, the constellation services or satellite services really started to take off in FY 2026. Just like, you know, the constellation services or satellite services really started to take off in FY 2026. just like you know the constellation services or satellite services really started to take off in fy 2026

Speaker 11: Thank you. That's all the time we have for questions today. I will now turn the call back to Will Marshall, CEO and Co-Founder, for closing remarks. Thank you. thank you That's all the time we have for questions today. that's all the time we have for questions today I will now turn the call back to Will Marshall, CEO and Co-Founder, for closing remarks. i will now turn the call back to will marshall ceo and co-founder for closing remarks

Speaker 14: Well, I'll just say that, obviously it's great to see the business doing great, both in the satellite services and in the AI powered solutions side. We're very proud of the financials that we reported today, not just the beating the revenue expectations, but I'm especially proud of the backlog improvement to $900 million and achieving the Rule of 40 again in a quarter. It really has set us up for a strong foundation for this coming year. Given that backlog and confidence in our pipeline, we've projected, you know, quite strong growth again for this year, and that's why, and even for years that follow, which is why we're investing this year, strongly, into that market opportunity. Well, I'll just say that, obviously it's great to see the business doing great, both in the satellite services and in the AI powered solutions side. well i'll just say that obviously it's great to see the business doing great both in the satellite services and in the ai powered solutions side We're very proud of the financials that we reported today, not just the beating the revenue expectations, but I'm especially proud of the backlog improvement to $900 million and achieving the Rule of 40 again in a quarter. we're very proud of the financials that we reported today not just the beating the revenue expectations but i'm especially proud of the backlog improvement to $900 million and achieving the rule of 40 again in a quarter It really has set us up for a strong foundation for this coming year. it really has set us up for a strong foundation for this coming year Given that backlog and confidence in our pipeline, we've projected, you know, quite strong growth again for this year, and that's why, and even for years that follow, which is why we're investing this year, strongly, into that market opportunity. given that backlog and confidence in our pipeline we've projected you know quite strong growth again for this year and that's why and even for years that follow which is why we're investing this year strongly into that market opportunity Like I was just saying, this is the year for AI for Planet and I think this bridge of the solutions gap will unleash a huge opportunity latent in Planet's data. I just wanna end by thanking our teams as we started around the globe that have enabled all of this to be possible. Thanks again for joining, everyone. Like I was just saying, this is the year for AI for Planet and I think this bridge of the solutions gap will unleash a huge opportunity latent in Planet's data. like i was just saying this is the year for ai for planet and i think this bridge of the solutions gap will unleash a huge opportunity latent in planet's data I just wanna end by thanking our teams as we started around the globe that have enabled all of this to be possible. i just wanna end by thanking our teams as we started around the globe that have enabled all of this to be possible Thanks again for joining, everyone. thanks again for joining everyone

Speaker 11: This concludes today's call. Thank you all for attending. You may now disconnect. This concludes today's call. this concludes today's call Thank you all for attending. thank you all for attending You may now disconnect. you may now disconnect