[Management View]
Revenue: $66.3 million, representing approximately 10% year-over-year growth, driven by key defense and intelligence contract wins.
Non-GAAP Gross Margin: 59%, despite anticipated future cost pressures.
Adjusted EBITDA: $1.2 million, marking the second consecutive quarter of adjusted EBITDA profitability.
Operating Cash Flow: $17.3 million.
Free Cash Flow: $8 million, the company's first-ever quarter of positive free cash flow.
Backlog: $527 million, indicating significant future revenue coverage and growth visibility.

[Outlook]
Q2 Revenue: $65 million to $67 million.
Q2 Adjusted EBITDA: Projected loss of $2 million to $4 million.
Q2 Gross Margin: 56%-57%.
Full-Year Revenue: $265 million to $280 million.
Full-Year Adjusted EBITDA: Loss of $7 million to $12 million.
Full-Year CapEx: $50 million to $65 million.
Strategic Initiatives: Focus on expanding AI-enabled integrated insights and satellite services solutions, including partnerships with Anthropic and Google.

[Financial Performance]
Revenue: $66.3 million, 10% YoY growth.
Non-GAAP Gross Margin: 59%, up from 55% YoY.
Adjusted EBITDA: $1.2 million, second consecutive quarter of profitability.
Operating Cash Flow: $17.3 million.
Free Cash Flow: $8 million, first-ever positive free cash flow.
Backlog: $527 million, up 140% YoY.
RPOs: $451.9 million, up 262% YoY.

[Q&A Highlights]
Question 1: Wanted to ask about AI. How are discussions with Anthropic going, and what data diversity is needed?
Answer: Partnership with Anthropic focuses on fine-tuning their models on our data. Exposing them to more satellite data should improve model accuracy. Also partnering with Google and others. AI developments speed value for customers and expand usability.

Question 2: How do we think about working capital unwind and cash terms of the pipeline of deals similar to JSAT?
Answer: Working capital can be lumpy due to big contracts and CapEx activities. Focused on EBITDA profitability and sustainable free cash flow generation within the next 24 months.

Question 3: Can you elaborate on the strong sequential growth in the quarter and unprecedented demand?
Answer: Revenue outperformance driven by multiple vectors, including an eight-figure contract win and strong progress on the JSAT contract. Demand driven by changing political landscape and heightened need for security.

Question 4: How repeatable are the European Maritime deals, and what does the pipeline look like?
Answer: Strong offering in maritime domain awareness solution coupled with political urgency. Strategic shift in Europe driving demand for security solutions.

Question 5: Any disruptions in the commercial business due to tariffs or other factors?
Answer: No significant impact from tariffs. Opportunity for Planet in global monitoring solutions for supply chain and event impact analysis.

Question 6: Walk us through gross margin dynamics and civil exposure on US federal and NASA.
Answer: Short-term margin impact from partner solutions and JSAT contract. Long-term margins expected to stabilize. NASA budget uncertainty may lead to opportunities for lower-cost solutions.

Question 7: How are you thinking about potential risks from NASA budget cuts and high usage tapering in Q2?
Answer: Administration pushing for lower-cost solutions, which fits Planet's offerings. Usage seasonality in sectors like agriculture and budget constraints for government customers.

Question 8: Insights on potential cuts to the EOCL program and demand in DOD?
Answer: Strong partnership with NRO and NGA. Administration leaning towards leveraging commercial services. Opportunities in DOD for solutions and satellite services.

Question 9: Update on growth expectations for next year.
Answer: Targets unchanged. Strong backlog growth and new contracts support sustained and accelerated growth.

Question 10: Dynamics of an FY25 CR and potential FY26 CR impact on growth.
Answer: CRs tend to be stable, continuing prior year budgets. Tracking the fluid environment and pursuing opportunities as they arise.

[Sentiment Analysis]
Analysts and management expressed optimism about the company's strategic direction and financial performance. Management highlighted strong demand and significant contract wins, while analysts focused on the potential for sustained growth and profitability.

[Quarterly Comparison]
| Metric | Q1 FY2026 | Q1 FY2025 |
|----------------------------|-----------|-----------|
| Revenue | $66.3M | $60.3M |
| Non-GAAP Gross Margin | 59% | 55% |
| Adjusted EBITDA | $1.2M | -$0.5M |
| Operating Cash Flow | $17.3M | $10.2M |
| Free Cash Flow | $8M | -$2M |
| Backlog | $527M | $219.6M |
| RPOs | $451.9M | $124.9M |

[Risks and Concerns]
- Civil government revenue decline due to contract expirations.
- Short-term margin pressure from partner solutions and JSAT contract.
- Potential budget cuts in NASA and EOCL programs.
- Variability in working capital and CapEx investments.

[Final Takeaway]
Planet Labs reported a strong Q1 FY2026 with significant milestones, including its first-ever quarter of positive free cash flow and continued adjusted EBITDA profitability. The company demonstrated robust growth in the defense and intelligence sectors, driven by key contract wins and expanding partnerships. Despite short-term margin pressures and potential budget uncertainties, Planet Labs remains focused on strategic initiatives to expand AI-enabled insights and satellite services, positioning itself for sustained growth and market leadership.