Shares of Planet Labs (NYSE:PL) tumbled 11% on Friday during pre-market trade after the company reported a fiscal year 2025 Q2 earnings miss and guidance below consensus.

The San Francisco-based Earth imaging company gave fiscal 2025 Q3 guidance, expecting revenue in the range of ~$61M to $64M, with a midpoint of $62.5M, lower than consensus estimates of $64.16M.

The company saw a 16% rise in Q2 topline revenue to $61.1M, missing estimates by $0.73M.

Gross margin improved to 53% from 49% in FY 2024. Non-GAAP Gross Margin rose to 58%. Expects Q3 non-GAAP gross margin to be in the range of ~59% to 61%.

Adjusted EBITDA loss is expected to be in the range of ~($5M) and ($2M) for the quarter. Capital Expenditures expected range of ~$13M and $16M.

Net loss was almost flat compared to last year at $38.7M. The percent of recurring annual contract value for Q2 was 96%.

Non-GAAP EPS was -$0.06, in line with market estimates, and GAAP EPS was -$0.13.

“Our results for the second quarter demonstrate continued progress towards our target of achieving Adjusted EBITDA profitability in Q4 of this fiscal year – an important milestone on our journey to building a high margin, sustainable, cash flow generating business. Our balance sheet remains strong with approximately $249 million of cash, cash equivalents, and short-term investments as of the end of the quarter, and we continue to have no debt,” said Ashley Johnson, president and CFO.