Planet Labs Growth Stock Makes the Case Against SpaceX’s Valuation

Planet Labs PBC (NYSE: PL), the Earth-observation satellite operator, is one of five growth stocks currently trading more than 50% below their consensus analyst price targets, placing it in the same screen as SpaceX, Strategy, Applied Digital and D-Wave Quantum. The argument for PL over the better-known names on that list comes down to valuation, accelerating quarterly revenue, and a business model with genuine institutional demand — offset by a balance sheet that still carries significant strain.

Planet Labs growth stock: where it sits versus SpaceX

SpaceX commands a price-to-sales ratio of 36 against a market capitalisation of $1.4 trillion. Planet Labs, at a market cap of $7.2 billion, trades on a price-to-sales multiple of 16.5. Both companies are growing quickly, but PL is doing so from a far smaller base, which means the maths of doubling is considerably less demanding.

Founded in 2010 by three NASA scientists, Planet Labs PBC operates one of the largest commercial fleets of Earth-observation satellites, with roughly 200 in orbit collecting around 350 million square kilometres of imagery data. Its customers, numbering over 1,000, span agriculture, forestry, government agencies and defence. The US government alone accounts for an estimated 40% to 50% of revenues, a concentration that creates genuine dependency risk.

Analyst consensus puts fiscal-year revenue — for the year ending 31 January 2027 — at $436 million, a 42% year-on-year increase. That forward estimate sits well above the company’s actual reported performance for the year ended 31 January 2025, when Planet Labs’ 10-K filing with the SEC showed annual revenue of approximately $244.4 million, up 11% year on year. The gap between current run-rate and analyst target is wide; closing it is what the bull case requires.

Recent quarterly momentum backs the forward estimates

The most recent quarterly data lends some support to the optimistic trajectory. For the three months ended 31 October 2025, Planet Labs’ 10-Q filing records revenue of $81.3 million, up from $61.3 million in the equivalent period a year earlier. Over the nine months ended 31 October 2025, revenue reached $220.9 million versus $182.8 million in the prior-year nine-month period. That sequential acceleration is encouraging if the $436 million full-year target is to be taken seriously.

The company also made progress at the gross margin line. The Q3 FY2025 earnings call, held in December 2024, reported a record non-GAAP gross margin of 64% and an adjusted EBITDA loss of just $0.24 million for that quarter, with management expecting adjusted EBITDA profitability in the following quarter. Capital expenditure ran at 20% of revenue for the year ended 31 January 2025, down marginally from 19% the year prior — satellite businesses are capital-intensive by nature, and that ratio bears watching as the fleet is maintained and expanded.

The balance sheet demands caution

The picture is less comfortable when you move to the liability side. As of 31 October 2025, Planet Labs carried an accumulated deficit of $(1,297,406) thousand, against total stockholders’ equity of $349,558 thousand. A year earlier, the accumulated deficit stood at $(1,167,847) thousand, meaning the deficit widened by roughly $129.6 million over twelve months. The GAAP net loss for the fiscal year ended 31 January 2025 was $(123,196) thousand, an improvement from $(140,509) thousand the prior year, but a loss of that scale relative to a $244 million revenue base is a structural issue, not a rounding error.

Planet Labs went public via a SPAC merger in December 2021, a route that left it with the balance-sheet legacy that SPAC-listed companies often carry. Warrants registered on the exchange are exercisable into Class A Common Stock at $11.50 per share, a potential dilution overhang that equity holders need to price in.

For investors screening for growth exposure via a Stocks and Shares ISA or SIPP, Planet Labs does offer something genuinely differentiated: a proprietary satellite constellation, recurring data contracts, and a customer base that includes government and institutional buyers unlikely to churn quickly. The SEC filings tracker for PL shows the company continues to file on schedule, and the revenue acceleration in the most recent quarters is real.

The setup for the next two quarters is binary in one respect: if Planet Labs can demonstrate EBITDA profitability on a sustained basis and sustain revenue growth north of 30%, the $436 million analyst target for FY2027 starts to look achievable and the valuation discount to SpaceX narrows. If quarterly revenue stalls or the US government reduces its spending allocation, that discount will look like a warning, not an opportunity. Position sizing accordingly.