11:50 AM EDT, 06/05/2025 (MT Newswires) -- Planet Labs' (PL) "strong" fiscal Q1 results and a backlog of $500 million set a foundation for the company's future growth, Wedbush said in a Thursday research note.

The imaging company reported Q1 breakeven on a non-GAAP basis compared with the consensus for a loss of $0.04 per share. Revenue for the three months ended April 30 was $66.3 million, up from $60.4 million a year earlier, which beat the $62.3 million consensus of analyst polled by FactSet.

Wedbush said the company raised the lower end of its full year guidance as it plans to convert its backlog into "meaningful revenue growth while strategically investing in new innovations to create durable profitable growth."

Despite macro uncertainties, the company managed to record its first quarter of positive free cash flow as it continues to generate momentum across commercial and government sectors, the brokerage said.

Planet Labs is at the "center of multiple market-changing transformations," which will present "significant opportunities" to create "durable profitable growth" in the next two years on the heels of its planned AI-enabled product launches to capitalize government and commercial sectors, Wedbush said.

Wedbush maintained an outperform rating on the company, while raising the price target to $7 from $5.

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