Earth observation satellite company Planet Labs (PL -9.32%) stock started out the week right as it soared nearly 48% after beating earnings Monday morning. It’s giving back some of those gains Tuesday, having fallen back 3.9% through 10:40 a.m. ET.

And that’s OK.

Planet Labs Q2 earnings

If you recall, Planet Labs reported $0.07 in losses yesterday but beat analyst forecasts for “adjusted” earnings, and for revenue according to generally accepted accounting principles (GAAP) as well. Revenue growth was strong at 20% year over year, and gross margins were exceptional, rising 5 full percentage points to 58%.

Best of all was Planet Labs’ announcement that it is firmly free-cash-flow positive, and sooner than Wall Street expected (if not quite as soon as Planet Labs promised before it came public via a special purpose acquisition company years ago).

What Planet Labs said, and what Planet Labs did

Back in 2021, Planet Labs made some predictions about where it would be today, in its fiscal 2026. Right about now, Planet Labs predicted, it would be earning 74% (non-GAAP) gross margins, growing revenue at a consistent rate north of 50% annually, and firmly free-cash-flow positive.

So far, only one of these predictions has come true, and only partially so: Free cash flow arrived a year later than predicted. Sales growth and profitability are both tracking lower than predicted — but as I said, that’s OK.

Why? Because Planet Labs stock costs less today than it did back at its IPO. Valued at $2.9 billion, on course for perhaps $100 million in FCF this year, and growing at 20%, the stock’s close enough to the mark that investors can once again seriously start looking at Planet Labs as a stock worth buying.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Atkins opened the meeting, stating that the topic of the discussion is timely as “securities are increasingly migrating from traditional (or “off-chain”) databases to blockchain-based (or “on-chain”) ledger systems.”

The roundtable discussion was the third in a series of four addressing tokenization and bringing traditional assets on-chain.

Atkins declared “a new day at the SEC,” pivoting away from regulation by enforcement toward creating clear regulatory frameworks through proper rulemaking processes.

In order for the US to be the “crypto capital of the planet,” the Commission must “keep pace with innovation and consider whether regulatory changes are needed to accommodate on-chain securities and other crypto assets,” he said.

“Policymaking will no longer result from ad hoc enforcement actions.”

Chairman Paul Atkins’ remarks at the Crypto Task Force roundtable on tokenization:

The topic of this afternoon’s discussion is timely as securities are increasingly migrating from traditional (or “off-chain”) databases to blockchain-based (or “on-chain”) ledger systems.

— U.S. Securities and Exchange Commission (@SECGov) May 12, 2025

Issuance, Custody, and Trading

Atkins compared the migration from traditional to blockchain-based securities to the digital revolution in the music industry. He suggested it could transform securities markets through enhanced liquidity, automation, and novel applications.

There were three main focus areas at the roundtable: issuance, custody, and trading.

He acknowledged that few crypto assets have used registered offerings, and is committed to developing clearer guidelines and potentially new registration exemptions for token issuers.

The regulator also plans to provide more options for crypto custody, including revisiting “qualified custodian” requirements and potentially allowing self-custody solutions.

Thirdly, Atkins was supportive of broader trading options, including “super apps” that combine securities and non-securities trading, and modernizing Alternative Trading System regulations.

“In the past few years, the SEC first pursued what I call the ‘head-in-the-sand’ approach – perhaps hoping that crypto would go away,” he said before adding:

“Then, it pivoted and pursued a shoot-first-and-ask-questions-later approach of regulation through enforcement.”

Square Peg in Round Hole

He referenced dated forms such as the S-1, which may not apply to crypto, adding, “We cannot encourage innovation by trying to fit a square peg into a round hole.”

Atkins, who took the helm of the SEC in April, concluded:

“I am eager to coordinate with colleagues in President Trump’s Administration and Congress to make the United States the best place in the world to participate in crypto asset markets.”

The final roundtable titled “DeFi and the American Spirit” is scheduled for June 9.

Earlier this month, the SEC and Ripple agreed on a $50 million settlement that ends the five-year legal battle that was instigated by the previous administration as one of its first moves in its war on crypto.