Shares of Planet Labs PBC (NYSE: PL) plummeted 11.79% in pre-market trading on Friday following the release of the company's 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 Q4 loss of $0.12 per share, which was significantly wider 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. While the company's gross margin improved to 62% (65% on an adjusted basis), 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 the upcoming periods. Planet Labs forecasts Q1 2026 revenue between $61 million and $63 million, which falls 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, likely contributing to the sharp stock decline in pre-market trading.