Why Planet Labs Stock Crashed 21% Today
Another day, another poor performance from Planet Labs (NYSE: PL). Last night, the space stock that operates the world's largest constellation of Earth observation satellites announced financial results for its fiscal second quarter of 2025 -- and the news wasn't great.
Planet Labs said it lost $0.06 per share in the quarter, on sales of $61.1 million. And granted, these results were basically in line with what analysts had predicted -- $0.06 in losses on $61.8 million in sales. But investors are disappointed regardless, and they're selling off Planet Labs stock by 21% through 10:30 a.m. ET this morning.
Planet Labs' Q2 numbers weren't horrible, exactly. Sales grew less than Wall Street wanted, but did grow 14% year over year in the period ended July 31. Gross profit margin according to generally accepted accounting principles (GAAP) grew to 53%, and non-GAAP margin rose to 58%. The problem is, all these numbers are far below what Planet Labs was promising back when it was trying to sell itself to investors as a special purpose acquisition company (SPAC) IPO: sales growth averaging 44% per year, and non-GAAP gross margin a gigantic 74%.
Source Fool.com
