Planet Labs PBC (NYSE: PL) saw its stock price plummet by 15.33% in Friday's pre-market trading session, following the release of its fourth-quarter and full-year 2025 financial results. The earth-imaging satellite company's performance fell short of analyst expectations, and its forward guidance raised concerns among investors.

Planet Labs reported a wider-than-expected loss for the fourth quarter ended January 31, 2025. The company posted a loss of $0.12 per share, significantly higher than the anticipated loss of $0.02 per share. Revenue for the quarter came in at $61.554 million, slightly below the consensus estimate of $61.9 million. Despite an improvement in gross margin to 62% (65% on an adjusted basis), the company's operating expenses of $57.581 million led to an operating loss of $19.366 million for the quarter.

Adding to investor disappointment was the company's guidance for upcoming periods. Planet Labs forecasts Q1 2026 revenue between $61 million and $63 million, falling short of the $64.6 million analysts were expecting. For the full fiscal year 2026, the company projects revenue in the range of $260 million to $280 million, potentially below the average analyst estimate of $274.7 million. This outlook suggests that Planet Labs may face challenges in accelerating its growth in the near term, contributing to the sharp stock decline.

While Planet Labs did achieve its first quarter of adjusted EBITDA profitability since becoming a publicly traded company in 2021, the market's focus on the earnings miss and conservative outlook overshadowed this milestone. The significant pre-market stock plunge reflects investors' concerns about Planet Labs' ability to meet growth expectations in the competitive satellite imagery and data analytics market.