GOGO

Total Revenue of $222.8 million;Service Revenue of $191.3 million, up 2% sequentially Military / Government service revenue of $39.9 million, up 40% compared to Q2 2025 and 20% sequentially Net loss of $2.0 million, Adjusted EBITDA1 of $53.7 million, up approximately 1% sequentially Gogo Galileo and 5G Expected to Ramp in 2H 2026 BROOMFIELD, Colo., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Gogo Inc. (NASDAQ: GOGO) (“Gogo” or the “Company”), a leading global provider of broadband connectivity services for the business and military/government aviation markets, today announced its financial results for the quarter ended June 30, 2026. “Our second quarter results show continued momentum in Gogo’s transformation into a global provider of high-speed broadband to the business and military/government aviation markets,” said Chris Moore, CEO of Gogo. “Our military and government business delivered a record quarter, with service revenue up 40% year over year, driven by ongoing demand for secure airborne connectivity, providing a durable revenue base. Our next-generation product transition is well under way, which we expect to be driven by the continued scaling of Galileo and 5G.” Zac Cotner, CFO of Gogo, commented, “Our second quarter financial results came in line with our expectations, supported by a particularly strong performance with our military and government customers. We continue to see expansion across that customer segment, which grew 20% sequentially and will continue to be both a stabilizer and growth engine for the future. Our results reflect disciplined execution across the business, which along with debt reduction, remain our highest financial priorities over the next several quarters.” Q2 2026 Financial Highlights Total revenue of $222.8 million decreased 1% compared to Q2 2025 and 2% compared to Q1 2026. Equipment Revenue Service Revenue Aircraft online ("AOL") as of June 30, 2026: Net Income (loss) for the quarter was ($2.0) million, compared to $12.8 million in Q2 2025 and $13.1 million in Q1 2026. Adjusted EBITDA1 of $53.7 million decreased 13% compared to Q2 2025 and increased approximately 1% compared to Q1 2026. Adjusted EBITDA includes $3.2 million of expense incurred in the quarter for ongoing litigation matters. Net cash provided by (used in) operating activities was $32.3 million in Q2 2026, down from $36.7 million in Q2 2025 and up from $(7.2) million in Q1 2026. Free Cash Flow1 of $21.6 million in Q2 2026 was down from $33.5 million in Q2 2025 and up from $(19.2) million in Q1 2026. Cash and cash equivalents was $63.1 million as of June 30, 2026, compared to $103.5 million as of March 31, 2026 and $102.1 million as of June 30, 2025. During Q2 2026, the Company made a $40.0 million earn-out payment related to the company’s earlier purchase of Satcom Direct and a $21.1 million principal payment on the HPS term loan facility, both of which are excluded from Free Cash Flow. Recent Developments Galileo HDX has earned FAA and EASA certification via Dassault Falcon Jet for installation on Falcon 7X and 8X aircraft, expanding global, high-speed LEO connectivity paired with Gogo's robust cybersecurity protections to these leading long-range business jets. Gogo secured a $7.5 million multi-year contract with NOAA’s Aircraft Operations Center to provide mission-critical SATCOM, cybersecurity and cockpit datalink software for the "Hurricane Hunter" research fleet. Airshare is equipping its Embraer Phenom 300 fleet with Gogo Galileo HDX and AVANCE L5 to provide high-speed, multi-device streaming and video conferencing for passengers and crew. Gogo Galileo HDX remains the only line-fit option for the Phenom 300, one of the most popular light jets on the market. SD Government, a subsidiary of Gogo, Pilatus, and Pro Star Aviation achieved FAA Supplemental Type Certificates ("STC") approval to install Gogo Galileo HDX on Pilatus PC-12 turboprops, delivering high-speed LEO internet for special missions, defense, MEDEVAC and private operators globally. Gulfstream received STC certification for all tail-mounted Gogo Galileo HDX installations on G650 and G650ER aircraft, both leading large-cabin jets. Gogo anticipates beginning HDX and 5G demonstrations for the Pilatus PC-24, a leading light business jet. The HDX demonstrations are tentatively scheduled to start in mid-August and the 5G in late October. Updates 2026 Financial Guidance Gogo is updating its financial guidance previously provided in May. Total revenue in the range of $870 million to $895 million, split ~84% service revenue and ~16% equipment revenue. Adjusted EBITDA1 in the range of $175 million to $185 million, which includes $5 million in strategic investments and $22 million of ongoing litigation expense, up from $8 million of litigation expense included in the prior guidance. Free Cash Flow1 in the range of $65 million to $85 million, including the aforementioned updated expense for ongoing litigation and $30 million slated for strategic investments in 2026, net of any FCC reimbursement. Net capital expenditures of $20 million. This assumes $45 million in reimbursement from the FCC Reimbursement Program. 1 See "Non-GAAP Financial Measures" below.2 See "Key Business Metrics" below. Conference CallThe Company will host its second quarter conference call on August 6, 2026 at 8:30 a.m. ET. A live webcast of the conference call, as well as a replay, will be available online on the Investor Relations section of the Company’s investor website at https://ir.gogoair.com. Q2 Earnings Call Webcast Link: https://edge.media-server.com/mmc/p/czisjqz9 Participants can use the below link to retrieve your unique conference ID to use to access the conference call.https://register-conf.media-server.com/register/BIc1371241a7b64561b1ebf76042a13f3b Non-GAAP Financial MeasuresWe report certain non-GAAP financial measurements, including Adjusted EBITDA and Free Cash Flow in the discussion above. Management uses Adjusted EBITDA and Free Cash Flow for business planning purposes, including managing our business against internally projected results of operations and measuring our performance and liquidity. These supplemental performance measures also provide another basis for comparing period-to-period results by excluding potential differences caused by non-operational and unusual or non-recurring items. These supplemental performance measurements may vary from and may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and Free Cash Flow are not recognized measurements under accounting principles generally accepted in the United States, or GAAP. When analyzing our performance with Adjusted EBITDA or liquidity with Free Cash Flow, as applicable, investors should (i) evaluate each adjustment in our reconciliation to the corresponding GAAP measure, and the explanatory footnotes regarding those adjustments, (ii) use Adjusted EBITDA in addition to, and not as an alternative to, net income (loss) attributable to common stock as a measure of operating results, and (iii) use Free Cash Flow in addition to, and not as an alternative to, consolidated net cash provided by (used in) operating activities when evaluating our liquidity. No reconciliation of the forecasted amounts of Adjusted EBITDA for fiscal 2026 is included in this release because we are unable to quantify certain amounts that would be required to be included in the corresponding GAAP measure without unreasonable efforts, due to high variability and complexity with respect to estimating certain forward-looking amounts, and we are therefore unable to estimate the probable significance of such amounts. We believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors. Key Business MetricsOur management regularly reviews financial and business metrics, including the key business metrics in this press release under "Supplemental Information - Key Business Metrics," to evaluate the performance of our business and our success in executing our business plan, make decisions regarding resource allocation and corporate strategies, and evaluate forward-looking projections. Certain of these business metrics may be added, removed or updated from time to time as our business evolves. Cautionary Note Regarding Forward-Looking StatementsCertain disclosures in this press release and related comments by our management include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our business outlook, industry, business strategy, plans, goals and expectations concerning our market position, international expansion, future technologies, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “anticipate,” “assume,” “believe,” “budget,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release. Forward-looking statements are based on our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: our ability to continue to generate revenue from the provision of our connectivity and other service offerings; our development and fixed-price contracts; our reliance on our key OEMs and dealers for equipment sales; our dependence on single-source, third party satellite network providers; the impact of competition; our ability to maintain high-quality customer support; our reliance on third parties for equipment components and services; our participation in U.S. government contracts; our participation in non-U.S. government contracts; the finite useful life of satellites; the impact of global supply chain and logistics issues, tariffs and inflationary trends; the continued expansion of our business outside of the United States and its impact of such expansion on our corporate culture; foreign currency risk; our ability to recruit, train and retain highly skilled employees, and the loss of any key personnel; the impact of pandemics or other outbreaks of contagious diseases, and the measures implemented to combat them; the impact of adverse economic conditions and geopolitical instability; our ability to fully utilize portions of our deferred tax assets; the impact of climate change and other sustainability-related matters; our ability to evaluate or pursue strategic opportunities; our recently-deployed Gogo 5G and Gogo Galileo services may not compete well in the market or face problems relating to implementation; our ability to innovate next-generation technologies and provide products and services useful to our customers and passengers without delay in developing or deploying such technologies, products and services; our ability to maintain our rights to use our licensed 4Mhz of ATG spectrum in the United States and obtain rights to additional spectrum if needed; the impact of service interruptions or delays, cybersecurity incidents, technology failures, equipment damage or system disruptions or failures; the impact of assertions by third parties of infringement, misappropriation or other violations; our ability to protect our intellectual property rights; risks associated with the use of artificial intelligence in our products and services; the impact of our use of open-source software; the impact of equipment failure or material defects or errors in our software; our ability to comply with applicable foreign ownership limitations; the impact of government regulation of communication networks, and the internet; our possession and use of personal information; risks associated with participation in the FCC Reimbursement Program; our ability to comply with anti-bribery, anti-corruption and anti-money laundering laws; the extent of expenses, liabilities or business disruptions resulting from litigation; the impact of the distribution of income among various jurisdictions in which we operate as well as changes in tax law or regulation on our U.S. and non-U.S. tax liabilities; the impact of changes in laws and regulations on U.S. government contractors; the impact of our substantial indebtedness; our ability to obtain additional financing to refinance or repay our existing indebtedness; the impact of restrictions and limitations in the agreements and instruments governing our debt; the impact of increases in interest rates; the impact of a substantial portion of our indebtedness being secured by substantially all of our assets; the impact of a substantial change in rating assigned by a rating agency; the volatility of our stock price; our ability to fully utilize our tax losses; the dilutive impact of potential future stock issuances; the impact of our stockholder concentration; our ability to fulfill the obligations of being a public company; the impact of an identified material weakness in our internal controls; the impact of certain provisions of our charter, bylaws, and Delaware law; and other factors listed under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2026 and in our subsequent quarterly reports on Form 10-Q as filed with the SEC. Any one of these factors or a combination of these factors could materially affect our financial condition or future results of operations and could influence whether any forward-looking statements contained in this report ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and you should not place undue reliance on them. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. About GogoGogo is the only multi-orbit, multi-band in-flight connectivity provider offering connectivity technology purpose-built for business and military/government mobility aviation. Its industry-leading product portfolio offers best-in-class solutions for all aircraft types, from small to large and heavy jets and beyond. The Gogo offering uniquely incorporates Air-to-Ground technology and access to multiple satellite constellations to deliver consistent, global tip-to-tail connectivity through a sophisticated suite of software, hardware, and advanced infrastructure supported by a 24/7/365 in person customer support team. Gogo consistently strives to set new standards for reliability, security and innovation and is shaping the future of inflight aviation to make it easier for every customer to stay connected. AVANCE aircraft online. We define AVANCE aircraft online as the total number of aircraft equipped with our AVANCE L5 or L3 system, excluding Gogo 5G systems, for which we provide ATG services to business aviation customers in the last month of the period presented. This number excludes military/government AVANCE aircraft online. Gogo 5G aircraft online. We define Gogo 5G aircraft online as the total number of aircraft equipped with our Gogo 5G system for which we provide ATG services to business aviation customers in the last month of the period presented. This number excludes military/government Gogo 5G aircraft online. Gogo Biz aircraft online. We define Gogo Biz aircraft online as the total number of aircraft not equipped with our AVANCE or Gogo 5G system for which we provide ATG services to business aviation customers in the last month of the period presented. This number excludes commercial aircraft operated by Intelsat’s airline customers as well as military/government aircraft receiving ATG service. GEO aircraft online. We define GEO aircraft online as the total number of aircraft for which we provide GEO broadband services to business aviation customers as of the last day of each period presented. This number excludes aircraft receiving services through GEO satellite networks that are end-of-life and military/government GEO aircraft online. Gogo Galileo aircraft online. We define Gogo Galileo aircraft online as the total number of aircraft for which we provide Gogo Galileo LEO broadband services in the last month of the period presented. This number excludes military/government Gogo Galileo aircraft online. This metric was not presented prior to the fiscal year ended December 31, 2025, as Gogo Galileo was only first deployed in 2025. Average monthly connectivity service revenue per ATG aircraft online (“ARPU”). We define ARPU as the aggregate ATG connectivity service revenue for the period divided by the number of months in the period, divided by the number of ATG aircraft online during the period (expressed as an average of the month end figures for each month in such period). Revenue share earned from Intelsat is excluded from this calculation. ATG units sold. We define units sold as the number of ATG units for which we recognized revenue during the period. Gogo Galileo units shipped. We define Gogo Galileo units shipped as the number of Galileo units shipped to our distribution partners during the period, including units used to obtain Supplemental Type Certificates. For more information, see "Key Business Metrics" above. (1) Excludes depreciation and amortization expense. (1) For the three months ended June 30, 2026, the figure consists of severance and other compensation-related costs of $1.3 million and integration support costs of $0.6 million. For the six months ended June 30, 2026, the figure consists of severance and other compensation-related costs of $2.5 million and integration support costs of $1.2 million. For the three months ended June 30, 2025, the figure consists of integration support costs of $1.5 million and severance and other compensation-related costs of $2.2 million. For the six months ended June 30, 2025, the figure consists of integration support costs of $5.4 million and severance and other compensation-related costs of $4.7 million. For the three months ended March 31, 2026, the figure consists of severance and other compensation-related costs of $1.2 million and integration support costs of $0.6 million.(2) See Unaudited Condensed Consolidated Statements of Cash Flows. Definition of Non-GAAP Measures EBITDA represents net income attributable to common stock before interest expense, interest income, income taxes and depreciation and amortization expense. Adjusted EBITDA represents EBITDA adjusted for (i) stock-based compensation expense, (ii) acquisition and integration-related costs, including amortization of acquisition-related inventory step-up costs and changes in fair value of the Earnout Liability, (iii) change in fair value of convertible note investment, and (iv) loss on extinguishment of debt . Our management believes that the use of Adjusted EBITDA eliminates items that management believes have less bearing on our operating performance, thereby highlighting trends in our core business which may not otherwise be apparent. It also provides an assessment of controllable expenses, which are indicators management uses to determine whether current spending decisions need to be adjusted in order to meet financial goals and achieve optimal financial performance. We believe that the exclusion of stock-based compensation expense from Adjusted EBITDA provides a clearer view of the operating performance of our business and is appropriate given that grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time. While we believe that investors should have information about any dilutive effect of outstanding options and the cost of that compensation, we also believe that stockholders should have the ability to consider our performance using a non-GAAP financial measure that excludes these costs and that management uses to evaluate our business. Acquisition and integration-related costs include direct transaction costs, such as due diligence and advisory fees and certain compensation and integration-related expenses as well as the amortization of acquisition-related inventory step-up costs. We believe it is useful for an understanding of our operating performance to exclude acquisition and integration-related costs from Adjusted EBITDA because they are infrequent, are outside of the ordinary course of our operations and do not reflect our operating performance. We believe it is useful for an understanding of our operating performance to exclude the changes in fair value of the Earnout Liability related to the acquisition of Satcom Direct from Adjusted EBITDA because this activity is outside of the ordinary course of our operations and does not reflect our operating performance. We believe it is useful for an understanding of our operating performance to exclude the change in fair value of convertible note investment from Adjusted EBITDA because this activity is not related to our operating performance. We believe it is useful for an understanding of our operating performance to exclude the loss on extinguishment of debt from Adjusted EBITDA because this activity is not related to our operating performance. We also present Adjusted EBITDA as a supplemental performance measure because we believe that this measure provides investors, securities analysts and other users of our consolidated financial statements with important supplemental information with which to evaluate our performance and to enable them to assess our performance on the same basis as management. Free Cash Flow represents net cash provided by operating activities, plus the proceeds received from the FCC Reimbursement Program and the interest rate caps, less purchases of property and equipment and the acquisition of intangible assets. We believe that Free Cash Flow provides meaningful information regarding our liquidity. Management believes that Free Cash Flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in property and equipment to support the Company’s ongoing business operations and provides them with the same measures that management uses as the basis of making capital allocation decisions.

Gogo (GOGO) came out with quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -66.67%. A quarter ago, it was expected that this in-flight internet provider would post earnings of $0.09 per share when it actually produced earnings of $0.07, delivering a surprise of -22.22%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Gogo, which belongs to the Zacks Wireless National industry, posted revenues of $222.81 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.34%. This compares to year-ago revenues of $226.04 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Gogo shares have lost about 4.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Gogo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Gogo was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.09 on $229.03 million in revenues for the coming quarter and $0.32 on $914.64 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless National is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Array Digital Infrastructure (AD), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This wireless telecommunications service provider is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +72.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Array Digital Infrastructure's revenues are expected to be $52.37 million, down 94.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gogo Inc. (GOGO) : Free Stock Analysis Report Array Digital Infrastructure Inc. (AD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: $222.8 million, down 1% year-over-year and 2% sequentially. Service Revenue: $191.3 million, down 1% year-over-year and up 2% sequentially. Equipment Revenue: $31.5 million, down 2% year-over-year and 18% sequentially. Military and Government Service Revenue: Increased 40% year-over-year and 20% sequentially. Gross Margin: 42%, compared to 41% in the first quarter. Net Loss: Negative $2 million, compared to a net loss of $12.8 million in Q2 2025 and $13.1 million in Q1 2026. Adjusted EBITDA: $53.7 million, down 13% year-over-year and up 1% sequentially. Free Cash Flow: $21.6 million, compared to negative $19.2 million in the prior quarter. Cash and Cash Equivalents: $63.1 million at the end of the quarter. Galileo Equipment Shipments: 108 units in Q2, a 17% sequential increase, bringing cumulative shipments to 518 units. 5G Unit Shipments: 138 units sold in Q2, compared to 52 units in Q1. ATG Aircraft Online: 5,731, down 15% year-over-year and 6% sequentially. Galileo Aircraft Online: 184, up 66% sequentially. Broadband GEO Aircraft Online: 1,306, stable sequentially. Full-Year 2026 Revenue Guidance: Revised to $870 million to $895 million. Full-Year 2026 Adjusted EBITDA Guidance: Revised to $175 million to $185 million. Full-Year 2026 Free Cash Flow Guidance: Revised to $65 million to $85 million. Warning! GuruFocus has detected 5 Warning Signs with GOGO. Is GOGO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gogo Inc (NASDAQ:GOGO) reported record-breaking performance in its military and government business, with service revenue increasing 40% year-over-year and 20% sequentially, driven by strong demand and increased utilization. The company saw significant acceleration in its next-generation product adoption, with Galileo aircraft online increasing 66% sequentially to 184 and 5G unit shipments surging 165% from the first quarter. Gogo Inc (NASDAQ:GOGO) secured a new fleet win with Airshare, a leading US-based fractional operator, following a successful live demonstration that transferred over 16 gigabytes of data in one hour. The company received several key supplemental type certificates (STCs) for its Galileo HDX product, including FAA approvals for the Gulfstream G650/G650ER and EASA approval for the Falcon 7X, expanding its total addressable market. Gogo Inc (NASDAQ:GOGO) demonstrated strong free cash flow generation, reporting $21.6 million in Q2 compared to negative $19.2 million in the prior quarter, reflecting improved working capital performance. The company's GEO business continues to perform ahead of expectations, with over 50 GEO units sold in the first half of the year, as operators invest in incremental capacity and stick with the platform. Gogo Inc (NASDAQ:GOGO) revised its full-year 2026 guidance downward, with total revenue now expected between $870 million and $895 million, primarily due to timing delays in Galileo and 5G equipment shipments. The company increased its litigation expense expectations to $22 million for the year, which accounts for roughly half of the reduction in adjusted EBITDA guidance. Total ATG aircraft online declined 15% year-over-year and 6% sequentially to 5,731, reflecting continued customer transitions from the legacy platform and expected deactivations. The Galileo FDX product, targeting mid-to-large cabin aircraft, is experiencing slower-than-anticipated adoption due to FAA backlog and delays in STC approvals, impacting the overall rollout timeline. Gogo Inc (NASDAQ:GOGO) reported a net loss of $2 million for the quarter, impacted by a $7.2 million non-cash increase in the fair value of the Satcom Direct earn-out liability. The company's net leverage ratio increased to 3.8 times due to the $40 million Satcom Direct earnout payment, and management expects leverage to fluctuate modestly over the balance of the year. Q: Can you provide an update on the outlook for Galileo units to be online by the end of this year, and also discuss the MilGov opportunities and its potential as a percentage of the mix heading into 2027?A: Chris Moore (CEO): The model assumes we will be in the mid-500s for total Galileo units online at the high end. Regarding MilGov, the near-term high demand is driven by the Middle East, but longer-term, governments are modernizing their secure airborne communications globally. We are taking commercial-based products into the military, which offers different cost structures. We are also seeing early traction in the UAV market, which expands the TAM significantly. It's too early to give a specific percentage, but we see this as a strong growth vector. Q: Can you put a finer point on the drivers of the updated guidance, specifically the lower equipment sales expectations and service product mix headwinds?A: Zachary Cotner (CFO): The single biggest driver of the guidance revision is equipment revenue, which is assumed at almost breakeven margins. Chris Moore (CEO) added that we still have 20 STCs outstanding for the FDX product, which is slowing the ramp for mid to large airframes due to FAA backlog. Additionally, while we have all OEMs locked into contracts, integrating Galileo into the factory process takes time. We expect a good ramp in the second half, but these are the two main factors slowing product into the market. Q: How should we think about normalized OpEx going forward, given the increase in litigation expense in the second half? Does it extend into 2027?A: Zachary Cotner (CFO): The normalized runway is in the mid-to-high 40s, excluding D&A. Sales and marketing should be flat, but there will be a slight increase in engineering due to milestone payments pushed from Q2. The increase in G&A is associated with the SmartSky litigation expense. Q: How many ATG aircraft do you expect to net roll off this year, and do you expect GEO aircraft online to hold through the year?A: Zachary Cotner (CFO): For ATG, due to the Q2 trend, we estimate total units online will decline by about 1,200, including 5G. Excluding the NetJets transition and upgrades to new products, the deactivation rate was flat from Q1. On GEO, performance is improving as operators invest in incremental capacity. We sold almost 50 GEO units in the first half. We still expect to lose a small number of units online, but the biggest driver remains aircraft sales, not customers turning off the service. Q: Can you talk about the drone opportunity in the MilGov market and any milestones to watch?A: Chris Moore (CEO): We are already in the drone market with our GEO product. We are expanding this to Galileo and our LTE/5G network, which is very applicable for the US government following the FCC rip-and-replace program. We are doing product development and proof of concepts, which I can't discuss in detail, but we are excited about the potential. We are also a main contract holder on Golden Dome, which presents a significant opportunity for both the US and overseas markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Gogo Inc.? Here are five stocks we like better. Q2 revenue declined modestly to $222.8 million, while Gogo posted a $2 million net loss and adjusted EBITDA fell 13% year over year to $53.7 million. Military and government connectivity growth helped offset weakness in legacy air-to-ground services and lower equipment shipments. Next-generation connectivity adoption accelerated: Galileo terminal shipments rose to 518 cumulatively, Galileo aircraft online increased to 184, and 5G unit sales climbed to 138 from 52 in the first quarter. However, legacy ATG aircraft online fell 15% year over year as customers transitioned to newer systems. Gogo cut its 2026 guidance to $870 million–$895 million in revenue and $175 million–$185 million in adjusted EBITDA, citing equipment shipment timing and higher litigation costs. The company still expects $65 million–$85 million in free cash flow and said service revenue expectations remain essentially unchanged. Bargain Alert on 3 Stocks Investors Have Oversold Gogo (NASDAQ:GOGO) reported second-quarter 2026 revenue of $222.8 million, down 1% from a year earlier and 2% from the first quarter, as growth in military and government connectivity services and next-generation products offset pressure in its legacy air-to-ground business. Service revenue totaled $191.3 million, down 1% year over year but up 2% sequentially. Equipment revenue was $31.5 million, down 2% from the prior-year period and 18% from the first quarter, which Chief Financial Officer Zach Cotner attributed to lower AVANCE and C1 shipments following an unusually strong first quarter. → 3 Drone Stocks That Should Soar After the Summer Slump Goldman Spotlights These 3 Stocks in Its Bullish S&P 500 Outlook The company reported a net loss of $2 million, compared with net income of $12.8 million in the second quarter of 2025 and $13.1 million in the first quarter. Results included a $7.2 million non-cash increase in the fair value of the Satcom Direct earn-out liability. Adjusted EBITDA was $53.7 million, down 13% year over year and up 1% sequentially. Gross margin improved to 42% from 41% in the first quarter. Military and government service revenue rose 40% year over year and 20% sequentially, driven by increased demand and utilization, particularly amid the conflict in the Middle East, Chief Executive Officer Chris Moore said. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Gogo Stock is Ready to Take Off Higher Moore said Gogo’s existing blanket purchase agreements allow the company to recognize additional revenue as usage increases without requiring new procurement cycles. He also described the segment as a source of contracted, longer-duration revenue that is less tied to business aviation cycles. “Governments around the world continue to make long-term commitments to modernize their secure airborne communications infrastructure,” Moore said. → Jersey Mike's Serves Fresh Gains After IPO Stumble The company is also evaluating applications for its air-to-ground and satellite networks in unmanned aerial vehicles. Moore said Gogo already serves some drone projects through its GEO platform and is conducting product development and proof-of-concept work involving Galileo, LTE and 5G offerings. He added that Gogo is a main contract holder on Golden Dome, though he did not provide financial expectations for the drone opportunity. Gogo continued to expand its Gogo Galileo low-Earth-orbit connectivity platform during the quarter. The company shipped 108 Galileo units, bringing cumulative terminal shipments to 518, a 17% sequential increase. Galileo aircraft online rose 66% from the prior quarter to 184. Gogo added Airshare as a Galileo HDX fleet customer. Airshare is equipping its Embraer Phenom 300 fleet with the service after a demonstration flight in which the system transferred more than 16 GB of data in an hour across 23 connected devices, according to Moore. The company also received certifications for Galileo HDX installations on Gulfstream G650 and G650ER aircraft, Falcon 7X and 8X aircraft, and the Pilatus PC-12 for government, defense and special-mission use. Moore said the approvals support a line-fit ramp expected in the second half, although several key supplemental type certificates remain outstanding. Gogo sold 138 5G units during the quarter, compared with 52 in the first quarter. It also shipped 83 C1 systems and ended the quarter with 690 C1 systems online, up 24% sequentially. Management said the pace of Galileo FDX certifications and the process of integrating products at original equipment manufacturers have delayed some equipment shipments. Moore said approximately 20 FDX certifications remain outstanding, particularly for mid- and large-cabin aircraft, with timing affected by an FAA backlog. Total air-to-ground aircraft online declined 15% year over year and 6% sequentially to 5,731. Management said the decrease reflected previously discussed NetJets fleet transitions as well as customers deactivating legacy service while upgrading to Galileo or 5G. Gogo ended the period with 4,603 AVANCE units online, a slight sequential decline. The company said it has about 400 remaining legacy ATG Classic customers that have not converted to C1 or upgraded to AVANCE, and expects some of that base to deactivate over time. Chief Financial Officer Zach Cotner said the company expects about 1,200 total ATG units to roll off during 2026, including 5G units. Excluding NetJets deactivations and upgrades to newer Gogo products, he said the underlying deactivation rate was broadly flat with the first quarter. Broadband GEO aircraft online was stable sequentially at 1,306 and down 1% year over year. Cotner said GEO performance has improved as operators invest in incremental capacity, and Gogo sold nearly 50 GEO units in the first half. The company still expects a modest decline in GEO units online, primarily due to aircraft sales rather than customers discontinuing service. Gogo lowered its full-year 2026 outlook, now forecasting total revenue of $870 million to $895 million. The company expects approximately 84% of revenue to come from services and 16% from equipment. Adjusted EBITDA is expected to be $175 million to $185 million, including about $5 million of strategic investments and $22 million of litigation expense. Free cash flow is expected to be $65 million to $85 million. Net capital expenditures are still projected at about $20 million, assuming $45 million in FCC reimbursements. Cotner said the revenue revision was primarily driven by timing of Galileo and 5G equipment shipments. Service revenue expectations were “essentially unchanged,” with military and government and GEO revenue offsetting softer-than-expected ATG service revenue. Higher litigation expense accounted for about half of the reduction in adjusted EBITDA guidance, he said. The company generated $32.3 million in operating cash flow and $21.6 million in free cash flow during the quarter, compared with negative operating cash flow and free cash flow in the first quarter. Gogo ended the period with $63.1 million in cash after making a $21.1 million principal payment on its HPS term loan and funding a previously announced $40 million Satcom Direct earn-out payment. Its net leverage ratio was 3.8 times, and management reiterated a longer-term target of 2.5 to 3.5 times leverage. Gogo Inc is a leading provider of in-flight connectivity and entertainment solutions for commercial and business aviation. The company specializes in delivering broadband internet, voice and text services, and streaming entertainment to passengers at 35,000 feet. Gogo's offerings include both air-to-ground (ATG) networks and satellite-based connectivity, enabling reliable in-flight internet access across a range of aircraft types. Gogo's ATG network spans the United States and portions of Canada, using ground towers to transmit data signals directly to equipped aircraft. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Gogo Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

The subdued stock price reaction suggests that Gogo Inc.'s (NASDAQ:GOGO) strong earnings didn't offer any surprises. Our analysis suggests that investors might be missing some promising details. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Importantly, our data indicates that Gogo's profit was reduced by US$30m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. If Gogo doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from Gogo's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think Gogo's earnings potential is at least as good as it seems, and maybe even better! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Our analysis shows 2 warning signs for Gogo (1 is a bit concerning!) and we strongly recommend you look at them before investing. Today we've zoomed in on a single data point to better understand the nature of Gogo's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is executing a deliberate transition from legacy air-to-ground (ATG) and satellite services to a next-generation portfolio featuring Gogo Galileo (LEO) and 5G. Performance is driven by a 'game-changing' increase in capacity and global consistency via the Galileo HDX and FDX models, which scale across small to large cabin aircraft. Record ATG unit sales and C1 conversions reflect a successful migration strategy to move legacy customers from the sunsetting EVDO network to the new LTE network. The military and government segment is emerging as a high-growth, high-durability revenue stream, benefiting from geopolitical uncertainty and demand for U.S.-based data sovereignty. Strategic positioning focuses on avoiding 'vendor lock' for OEMs by offering network-neutral platforms that can be easily integrated into existing aircraft structures. The shift toward next-gen products is intended to increase revenue resilience as customers make significant capital commitments for long-term hardware installations. Management expects a significant ramp in Galileo shipments in the second half of 2026 as the product becomes a 'line fit' option for multiple major OEMs. The 5G rollout is projected to see a robust increase in units online during late Q3 and Q4 2026, supported by a current pipeline of over 500 units. Guidance assumes the new LTE network will be fully operational by the end of 2026, providing a seamless transition path for classic ATG customers. Free cash flow growth is expected to be driven by the winding down of new product development investments and the realization of $40 million in annualized synergies. The company anticipates losing approximately 1,000 legacy classic customers over the year, though management views this as a manageable transition toward broadband services. The FCC extended the classic product migration deadline to November 8, 2026, providing critical flexibility for the network transition. Gogo has allocated its full $334 million FCC reimbursement amount to cover the removal and replacement of foreign equipment across its network. The sunsetting of the EVDO network will make Gogo the only fully U.S.-based data sovereign ATG network, removing previous national security barriers to certain government contracts. Debt reduction is the top capital allocation priority, evidenced by a $21.1 million principal payment on the HPS term loan in April 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while shipments are currently driven by MROs, the major volume ramp depends on OEM line-fit installations starting in Q3 and Q4. Regarding Starlink and other competitors, management stated they are not seeing significant changes in the competitive landscape and highlighted Galileo as their fastest-ever product launch. Management addressed 'misunderstandings' by confirming the NetJets relationship is strong, with Europe rollouts finishing and North America installations beginning. The acquisition of Satcom Direct has shifted the business from being U.S.-centric to a 60/40 domestic-to-international split. GEO unit declines were attributed primarily to aircraft sales rather than competitive losses, with sales teams actively pursuing new owners to win back those tails. The military segment is seeing 14% year-over-year service revenue growth, driven by demand for secure, non-foreign hardware and expansion into the global UAV (drone) market.

Image source: The Motley Fool. Thursday, May 7, 2026 at 8:30 a.m. ET Chief Executive Officer — Christopher Moore Chief Financial Officer — Zachary Cotner Managing Director, Collected Strategies (Moderator) — Jim Golden Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and thank you for standing by. Welcome to the First Quarter 2026 Gogo Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jim Golden with Collected Strategies. Jim, go ahead. Jim Golden: Thank you, and good morning, everyone. Welcome to Gogo's First Quarter 2026 Earnings Conference Call. On the call today to discuss the company's results are Gogo's CEO, Chris Moore; and CFO, Zach Cotner. During the course of this call, Mr. Moore and Mr. Cotner may make forward-looking statements regarding future events and the future performance of the company. Participants are cautioned to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements on this call. Those risk factors are described in the earnings release filed this morning and in a more fully detailed note under Risk Factors filed in the company's annual report on 10-K and 10-Q and other documents that the company has filed with the SEC. In addition, please note that the date of this conference call is May 7, 2026. Any forward-looking statements made today are based on assumptions as of this date, and the company undertakes no obligation to update these statements as a result of more information or future events. During this call, Mr. Moore and Mr. Cotner will present both GAAP and non-GAAP financial measures. A reconciliation and explanation of adjustments and other considerations of the company's non-GAAP measures to the most comparable GAAP measures is available in the Gogo's first quarter earnings release. The call is being webcast and available at ir.gogoair.com. The earnings release is also available on the website. After management comments, Mr. Moore and Mr. Cotner will host a Q&A session with the financial community only. I'll now turn the call over to Mr. Moore. Christopher Moore: Thank you, and good morning. The defining theme of the first quarter has been the deliberate transition of our legacy base services in air-to-ground and global satellite services into our next-generation technology portfolio. Consistent with prior earnings calls, I will focus on the continued demonstratable progress made across the compelling new product portfolio. These include Gogo Galileo with two models, HDX and FDX, both of which are providing game-changing increases in capacity, functionality, speed and global consistency as well as our 5G rollout and our existing GEO offerings. We are making steady progress on shipments, installations and early activations across both 5G and Gogo Galileo. I will also highlight our recent fleet wins and long-term growth prospects from our military and government customer base. We believe these next-generation products are not only enhancing the value we deliver to existing customers, but also expanding our addressable market and creating a reoccurring revenue stream that sets the stage for free cash flow growth and long-term strategic value in the future. Let's start by reviewing Gogo Galileo, our global low earth orbit or LEO service in which we have two products, HDX and FDX and where we continue to see encouraging progress. HDX serves as our entry point LEO solution, purpose-built for smaller aircraft, while FDX extends that capability to mid- and large cabin aircraft with higher performance connectivity. And together, they position Galileo as a scalable full fleet solution spanning the breadth of our customer base globally. Our Q1 shipments were largely in line with what we projected. We shipped 92 units in the quarter, including 82 HDX and 10 FDX. This brings our total number of LEO terminals shipped to 410 units since launch and across 35 commercial supplemental type certificates or STCs. Our 35 STCs cover a total addressable market of approximately 7,000 aircraft. We have 14 additional STCs underway to be completed in the next few quarters, addressing another 1,500 aircraft for a total of 8,500 aircraft. Building on this progress, I want to highlight some significant fleet wins for our Gogo Galileo offering. VistaJet is rolling out Gogo Galileo across its fleet with approximately 100 aircraft currently in scope as part of the broader plan to equip more than 270 aircraft globally. Installations began in Europe and are now expanding into the U.S. with a steady cadence of roughly 1 aircraft every 9 days, supported by continued STC progress. Wheels Up, another significant fleet win is also rolling out Galileo across its 80-plus aircraft in coordination with its fleet modernization strategy. Finally, we plan to have fully rolled out the committed aircraft with NetJets Europe in the first half of 2026, which currently make up half of our Galileo units online and have also started installations with NetJets North America. We remain confident with our Galileo projections given the strong pipeline, which is demonstrated with the rollout at major fleet operators. We expect a great ramp of shipments as important installations at multiple OEMs are expected to start in the second half of the year with Galileo becoming a line fit option. Turning to our air-to-ground or ATG network. We are seeing significant momentum with our 5G rollout. Even though customers have been waiting a long time for 5G, we're seeing strong enthusiasm for the service. We sold an all-time record of 511 air-to-ground units this quarter, of which 52 were 5G, and we anticipate a very robust rollout throughout the rest of the year with units online ramping in late Q3 and Q4. We have a very robust total pipeline of over 500 units. In terms of our legacy products, we reported record C1 conversions of 254 in the first quarter. This momentum reflects a growing wave of customers upgrading to C1 to ensure a seamless transition from our EVDO network to our LTE network. Additionally, I'm also happy to announce that we've secured an extension from the FCC regarding our classic product migration with the program completion deadline now extended to November 8, 2026. Under the FCC reimbursement program, we've also allocated our full approved amount of approximately $334 million to cover the cost of removing and replacing covered foreign equipment across the U.S. network and ATG aircraft. We believe this gives us the necessary flexibility to transition our customers from our classic service to our C1 and AVANCE products, giving them the room they need to operate seamlessly between the old service and the new and adding robustness to our overall 5G and LTE rollout. We're also seeing strong support from our MRO and OEM partners in the network transition, including Duncan, who is outfitting their demonstration aircraft with 5G as well as Textron, who is updating all of their STCs in the quarter. We are getting more customers exposed to our exciting new 5G network, which will continue to improve, especially with the new LTE network, which we expect to be fully operational by the end of 2026. Finally, let's now turn our attention to our Geostationary Earth Orbit or GEO business. GEO units online declined by 15 in the quarter, a moderate reduction from the net reduction of 22 we saw in Q4, reflecting continued resilience in our installed base and demonstrating the strength of our OEM partnerships. Looking across the balance of the year, we do expect some attrition in our GEO fleet, driven by broader market evolution towards next-generation LEO and hybrid satellite solutions. and we are closely monitoring ARPU dynamics within our customer base. We continue to view GEO as a strategically valuable component of our network offering, particularly for customers whose mission profiles benefit from the global coverage and redundancy where LEO has regulatory restrictions and proven reliability and accessibility of geostationary networks. As recently announced, our Plain Simple Ku-band platform continued to gain traction in the first quarter across both commercial and military end markets. AirX selected our Plain Simple Ku-band solution to upgrade its Challenger 850 fleet. The selection was driven by the simplicity of installation and our ability to provide a fully integrated end-to-end connectivity solution for a high utilization global fleet. We were also pleased to receive U.S. Air Force Mobility Command approval to offer our Plain Simple Ku-band tail-mount. -- on the C-130 platform, opening access to a fleet of more than 1,000 aircraft and representing a meaningful new avenue of growth for our GEO franchise within the military and government vertical. I now want to spend some time on our important military and government end market in which we see significant expansion and growth for Gogo. Military and government service revenue increased by 7% sequentially compared to the fourth quarter of 2025, marked the second consecutive quarter of growth. Geopolitical uncertainty and a focus on sovereign communication requirements are creating a sustained need for secure, reliable connectivity and our network military and government offerings have proven to be well positioned to meet that demand in an unpenetrated market. As a result, we are seeing a distinct rise in communication spending that extends well beyond the United States and NATO as global governments actively invest to modernize their secure and airborne networks. During the quarter, we secured several contracts, the first being with the National Oceanic and Atmospheric Administration, or NOAA, totaling more than $8 million over a 5-year period. This represents a meaningful addition to our long-term backlog and a strong endorsement of our network-neutral platform's reliability for mission-critical applications. We also secured business with a U.S. civil government customer worth over $3 million for Galileo and 5G on their small to midsized airframes. We expanded further into the growing global UAV market with customer wins for both GEO and LEO services for border protection and surveillance with major drone manufacturers anticipated to deliver over $15 million in revenue over the contractual periods. Another major milestone in the quarter also demonstrated the importance of avoiding vendor lock to OEMs as we adapted the HDX so it can be fitted under an existing STC and the Escape hatch for a major airframe OEM for European deployment. Building on the growth we've delivered over consecutive quarters within our military and government end market, we are seeing high demand for our existing services driven by ongoing conflict in the Middle East, where the operational environment is also accelerating the cadence of adoption for next-generation communication systems across our global military customer base. The U.S. government can access our technologies quickly because of our blanket purchase agreement, which serves the U.S. Department of War. Outside the U.S., our partnerships with leading aerospace integrators and OEMs continue to deliver with strong demand for Galileo from international government customers. Taken together, this momentum has meaningfully strengthened our competitive position in the military and government end market for the long term. An important point to mention is that the following sunsetting of our legacy EVDO network, Gogo will operate the only fully U.S.-based data sovereign ATG network. Our data originates in the U.S., lands in the U.S. and is entirely protected within the U.S., which makes our offering more appealing than our competitors. This transition away from EVDO, which is expected to open up new opportunities since the EVDO hardware utilize foreign components that lock us out of certain opportunities due to national security requirements. Before I turn the call over to Zach, I want to highlight a few financial themes that his remarks will detail. The first is that our product portfolio shift is expected to ultimately increase the durability and resilience of our revenue as customers made the significant capital commitment to install these next-generation products on their aircraft as well as diversify our revenue across multiple connectivity solutions and mission profiles. Secondly, the expansion of our military and government business, which is based on longer contracts compared to shorter-term business aviation contracts should add to this revenue as heightened military and government activity continues. Lastly, our top capital allocation priority in the near term is to aggressively pay down debt. I will now turn the call over to Zach to walk through the Q1 numbers. Zachary Cotner: Thanks, Chris, and good morning, everyone. Our first quarter performance met our expectations as we built upon our strong finish to 2025. The quarter was driven by C1 and 5G demand, positive Galileo momentum, along with sustained growth in our military and government service revenue. This performance helped balance anticipated service revenue softness as we navigate ATG aircraft deactivations. Gogo's total revenue for the quarter was $226.3 million, down just 2% compared to both Q1 2025 and Q4 2025. Service revenue was $187.7 million, down 5% year-over-year and 2% sequentially. Total equipment revenue showed continued strength at $38.6 million, an increase of 22% compared to Q1 2025 and flat sequentially. Sustained activity with record C1 shipments and increasing adoption of our 5G-ready AVANCE LX5 platform for total ATG equipment sold of 511, up 8% compared to Q4 2025. We sold 184 AVANCE units, a 5% increase compared to Q4 and 327 C1 units, an increase of 10% sequentially, bringing our cumulative C1 units sold to 1,063. Gogo C1 solution is a simple box swap designed to allow connectivity for classic ATG customers on Gogo's new LTE network, which is expected to come online later in 2026. Galileo equipment shipments totaled 92 for the quarter, bringing our cumulative Galileo shipments to 410. Turning to our aircraft online. Total ATG AOL of 6,116 decreased 11% compared to the prior year quarter and 4% sequentially for the reasons Chris outlined in his comments. Advanced AOL now comprises 79% of our total ATG aircraft online and average monthly service revenue per ATG aircraft online, or ARPA, was $3,351, a 3% decrease compared to Q1 2025 and flat sequentially. Broadband GEO AOL increased 2% year-over-year to 1,306 but decreased 15 units from Q4 2025, largely due to aircraft sales in the quarter. Moving to our bottom line. Net income for the quarter was $13.1 million, a significant increase on a sequential basis. In Q1, net income benefited from 3 noncash items: first, a $4.9 million pretax reduction to the SATCOM direct earnout accrual; second, the nonrecurrence of a $10 million litigation accrual that occurred in Q4; and third, a $4 million pretax charge to reflect the change in the fair value of the convertible note that also occurred in the prior quarter. Adjusted EBITDA was $53.3 million in the quarter, a 14% decrease year-over-year, but a 41% increase on a sequential basis. Q1 2026 adjusted EBITDA includes $6.1 million of litigation expenses versus $8.4 million in Q4. The sequential increase in adjusted EBITDA of $15.5 million was primarily driven by improvement in equipment profit resulting from a favorable product mix and lower inventory reserves as well as a reduction in ED&D expenses. Year-over-year, the 14% adjusted EBITDA decrease of $8.7 million was largely driven by a drop in service profit stemming from declining ATG revenues. However, we partially mitigated this impact through disciplined OpEx management and strong execution on the synergy front with annualized synergies reaching $40 million, exceeding our prior targets. In addition, ED&D expenses benefited from the reimbursement of costs related to the FCC reimbursement program. Turning to our strategic initiatives. In Q1, our 5G program incurred $0.2 million in operating expenses and $1.4 million in CapEx. In addition, our Galileo project spend included $0.8 million in OpEx. Regarding our efforts to reduce our debt and improve our leverage profile, which, as Chris mentioned, remains our top capital allocation priority, we made a $21.1 million principal payment on the HPS term loan facility in April. This payment was executed as an excess cash flow or ECF sweep. Turning to our net debt leverage ratio. We ended the first quarter at 3.6x. Based on our 2026 forecast, we anticipate this leverage ratio will increase slightly in Q2 and Q3 before dipping back within our target range by the fourth quarter. Moving to free cash flow and the balance sheet. Net cash used in operating activities was $7.2 million and free cash flow was negative $19.2 million for the quarter, down from $30 million in Q1 2025 and down from negative $4.9 million in Q4. Our cash story this quarter was heavily influenced by a $14 million cash outflow related to our annual bonus payout as well as a reduction in accounts payable associated with our inventory ramp related to the Galileo product launches. We ended the quarter with $103.5 million in cash and cash equivalents. In our earnings release this morning, we reiterated our 2026 financial guidance. We project total revenue in the range of $905 million to $945 million. We expect adjusted EBITDA in the range of $198 million to $218 million, which includes $3 million in strategic investments and $8 million of ongoing litigation expense. Finally, we anticipate free cash flow in the range of $90 million to $110 million. This implies a 12% year-over-year growth rate at the midpoint, driven by the winding down of new product investment, sustained cost synergies and an expected strong ramp of new product revenue. Our guidance includes $30 million slated for strategic investments, net of any FCC reimbursements and net capital expenditures of $20 million, assuming $45 million in FCC reimbursement. To summarize, our first quarter results reflect continued strong execution, record ATG shipments and a 41% sequential increase in adjusted EBITDA. We are managing through near-term pressures in legacy service revenue while investing behind the two initiatives that we believe will define our next phase of growth, our 5G network and Galileo Broadband. We also repaid $21.1 million on our HPS loan in April, further strengthening our balance sheet. Together, these actions should expand our addressable market and position us to deliver long-term value to shareholders. I want to express my continued gratitude to the Gogo team for their hard work in driving our transformation and their commitment to outstanding customer service. Operator, this concludes our prepared remarks. Please open the queue for questions. Operator: [Operator Instructions] Our first question comes from Scott Searle with ROTH Capital Partners. Scott Searle: Nice to see you guys reiterating the outlook for 2026. Chris, maybe to start from a high level. It seems like there are a lot of shipments going out the door as it relates to Galileo and 5G, yet AOL has been slow to come online. I'm wondering if you could talk us through the comfort that you have in terms of that ramping up into the second half of this year in terms of dealer channel support, STCs, which seem like they're very much on track. And just maybe help us understand the competitive landscape out there, particularly as it relates to Starlink? Christopher Moore: It's going to take time. We've got the building blocks in place. We have the real estate. Our equipment revenue is up 22% year-on-year. We've got record ATG unit sales. Galileo AOL grew 50% sequentially and adjusted EBITDA grew 41%. And then if you look at the current shipments on Galileo, then most of that's with MROs at the moment. And really, as we've stated in previous calls, the OEMs come online really in Q3, Q4, and then you see that ramp going from there. So actually, we're really excited about what we're seeing with Galileo, and it's going to plan at the moment. Regarding competition, we're not really seeing any changes. I think the good news is this is probably the fastest product we've ever launched and the customer confidence is kind of showing with our results. Scott Searle: And Chris, I'm sorry, my phone blocked out for the 5G commentary. I'm wondering if you could just reiterate that quickly. Christopher Moore: Yes. I mean if you look on equipment revenue is up 22%. And then we've got year-on-year record ATG unit sales as well, which we said on the call. So if you look at 5G from a standing start, the pipeline is over 500, and it's a really solid start. We're seeing already partners like Textron already completing all their STCs. We've got good product shipments, good reliability. So we're very, very confident about 5G. It's actually a really good start to the product. Scott Searle: And then quick two follow-ups. Maybe just in terms of the classic conversion, what you're ultimately hoping that looks like by the end of this year? I know you got an extension there, but what's -- what do you think the attrition is versus retention and conversion over? And then lastly, just as it relates to the traditional SATCOM business, I'm wondering, given the growth that you're seeing in the military opportunities, when -- what's the long-term growth opportunity when you look at the traditional SATCOM business? And how much do you expect military to comprise of that as we start to look out 2 years to 3 years? Christopher Moore: Yes, that's a lot. All right. So let me start with kind of air-to-ground. If you look at record 254 C1 conversions this quarter and 1,058 overall, and our AVANCE base grew 3% year-over-year. So I think the tendency is just to focus on the quarter on suspensions, deactivations on the classic customers. They're not all deactivations. Some of those are suspension. So we expect some to come back. We, in the previous call, said that we expect to lose like 1,000 customers over the year. I think that's kind of holding. I think the big thing there, though, is the transition that we're showing with the new products is all of our customers have somewhere to go with a broadband experience, which they didn't have previously, which is pretty exciting. And we continue to believe the ATG portfolio kind of will be a very, very important part of our business moving forward. Going on to the Milgov business, I think just what we're seeing with the wins that we discussed today is kind of a very robust business unit that's growing, which is really exciting. And the value of the commercial-based products that we're putting into that, lower cost support global capability, robust cybersecurity and then the drone market, we see that as a really exciting area for the business to grow into and service revenue up 14% year-on-year, 7% from the last quarter. So we're really excited about that revenue segment for us. Operator: Our next question comes from Justin Lang with Morgan Stanley. This is Gaby Knafelman on for Justin Lang. Gaby Knafelman: You had mentioned that NetJets Europe will fully roll out Galileo in the first half of the year. I'm curious if you could give us a sense of expectations for the overall Galileo domestic international split through the end of the year? Christopher Moore: Yes, that's a good question. So let me just clarify a little bit on NetJets. I think there's a lot of misunderstanding around our NetJet relationship. And I want to clarify this is really going very well. If you look at the confidence in the broader fleet relationships along with NetJets, we're completing and rolling out NetJets Europe. We're starting to roll out NetJets North America. And we're also starting to see real big traction with VistaJet aiming for 270-plus aircraft, Wheels Up in their transformation with new aircraft, Luxe Aviation, Avcon Jet, AirX. So the confidence in the fleet operators, I think, speaks volumes for the business. And that 60-40 split is 60% North America, 40% overseas is really exciting for the business because previous to the Satcom Direct acquisition, Gogo was predominantly just a U.S. supplier. So we're seeing that kind of international expansion, confidence in the fleet operators and NetJets is still in the fold with Gogo, and we're excited about rolling out with them. Gaby Knafelman: Got it. Super helpful. And I'm just curious if you could comment on how GEO AOL figures this quarter compared against your expectations and whether or not you're thinking any differently at all about some of the pressures you had flagged around GEO coming into the year? Zachary Cotner: Yes. So effectively, GEO has held up exactly as we thought it would. The 15 units is sort of what we thought. I think the other kind of positive sign is, as we telegraphed in Q4, the minor drop was largely related to aircraft sales. I can tell you that's the same trend in Q1. So our sales guys are beating down the door to try to find the new owners and win those back. So I think GEO continues to be robust. The ARPA is down a little bit, but again, that's what we thought. So I think we've got a pretty good handle on GEO as of now. Operator: This concludes today's earnings call. Thank you for your participation in the conference. You may now disconnect. Before you buy stock in Gogo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Gogo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Gogo (GOGO) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in Gogo Inc.? Here are five stocks we like better. Gogo is executing a “deliberate transition” to next‑generation connectivity led by Gogo Galileo LEO terminals (92 shipped in Q1, 410 cumulative) and expanding STC coverage to roughly 7,000–8,500 addressable aircraft, with fleet rollouts at VistaJet, Wheels Up and NetJets and an OEM line‑fit ramp expected in H2. The ATG business showed momentum with a record 511 ATG units sold (including 52 5G units) and a >500‑unit pipeline; the FCC extended the migration deadline and Gogo has allocated about $334 million in reimbursements while its new LTE network is expected to be fully operational by end of 2026. Q1 results: total revenue of $226.3M (down 2% YoY), adjusted EBITDA of $53.3M (down YoY but up 41% sequentially), negative free cash flow of $19.2M, $103.5M cash on hand and net leverage of 3.6x, and management reiterated full‑year 2026 guidance (revenue $905M–$945M; adj. EBITDA $198M–$218M; FCF $90M–$110M). Bargain Alert on 3 Stocks Investors Have Oversold Gogo (NASDAQ:GOGO) executives used the company’s first-quarter 2026 earnings call to emphasize what CEO Chris Moore described as a “deliberate transition” away from legacy connectivity services and toward a next-generation portfolio led by Gogo Galileo low-Earth orbit (LEO) connectivity and an upgraded air-to-ground (ATG) 5G network. Management said progress in shipments, installations, and early activations is building, even as near-term service revenue remains pressured by ATG aircraft deactivations and ongoing customer migration from older equipment. Moore said Gogo’s Gogo Galileo platform—offered in two models, HDX and FDX—continues to scale across the company’s customer base. HDX targets smaller aircraft, while FDX supports mid- and large-cabin aircraft. In the first quarter, Gogo shipped 92 LEO terminals, including 82 HDX and 10 FDX, bringing cumulative shipments since launch to 410 units. Moore said the company has 35 commercial supplemental type certificates (STCs) in place, covering an addressable market of about 7,000 aircraft, with 14 additional STCs underway that would expand coverage to roughly 8,500 aircraft over the next few quarters. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? Goldman Spotlights These 3 Stocks in Its Bullish S&P 500 Outlook Moore highlighted several fleet wins and deployments. He said VistaJet is rolling out Galileo across a fleet with “approximately 100 aircraft currently in scope” as part of a broader plan to equip more than 270 aircraft globally, with installations beginning in Europe and expanding into the U.S. at a pace of roughly one aircraft every nine days. Moore also pointed to Wheels Up rolling out Galileo across “80+ aircraft” and said Gogo expects to complete the committed aircraft rollout with NetJets Europe in the first half of 2026 while beginning installations with NetJets North America. Looking ahead, Moore said the company expects a “greater ramp of shipments” as installations at multiple OEMs are anticipated to start in the second half of the year and Galileo becomes a line-fit option. In response to a question about the timing of revenue per aircraft improvements, management noted that many Galileo shipments are currently going through maintenance, repair, and overhaul (MRO) channels, with OEM activity expected to pick up in the second half. → A Prada Payday: Is AMC Back in Style? Gogo Stock is Ready to Take Off Higher On the ATG side, Moore said enthusiasm for the company’s 5G service remains strong despite a long wait from customers. He reported an all-time quarterly record of 511 ATG units sold, including 52 5G units, and said the pipeline totals more than 500 units. Moore said he expects a “very robust rollout” for the rest of the year, with 5G units online ramping in late third quarter and fourth quarter. Management also addressed the ongoing transition from the company’s legacy EVDO network. Moore said Gogo recorded record “C1 conversions” of 254 in the quarter as customers upgrade to C1 to support a move from EVDO to LTE. He added that the company received an extension from the FCC for the classic product migration program, moving the completion deadline to Nov. 8, 2026. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Moore said Gogo has allocated “our full approved amount of approximately $334 million” under the FCC reimbursement program to remove and replace covered foreign equipment across the U.S. network and ATG aircraft. He said the extension and funding provide flexibility for customers to transition between services while supporting the company’s 5G and LTE rollout. Moore added that the new LTE network is expected to be fully operational by the end of 2026. In the geostationary orbit (GEO) business, Moore said GEO units online declined by 15 in the quarter, an improvement from the net reduction of 22 in the fourth quarter, which he said reflected resilience in the installed base and the strength of OEM relationships. He cautioned that the company expects some attrition in the general aviation fleet as the broader market shifts toward LEO and hybrid solutions, adding that Gogo is monitoring “RFU dynamics” within its customer base. Moore said the company views GEO as strategically valuable for customers needing global coverage and redundancy, particularly where LEO has regulatory restrictions. He pointed to traction for the company’s Plane Simple Ku-band platform, including AirX selecting the solution to upgrade its Challenger 850 fleet, citing installation simplicity and an end-to-end connectivity approach. Moore also said the company received U.S. Air Force Mobility Command approval to offer a Plane Simple Ku-band tail mount on the C-130 platform, describing this as opening access to a fleet of more than 1,000 aircraft and a “meaningful new avenue of growth” for GEO within military and government markets. CFO Zachary Cotner later said GEO performance “held up exactly as we thought it would,” and noted the unit declines were largely tied to aircraft sales, consistent with trends discussed in the prior quarter. Moore said military and government service revenue rose 7% sequentially versus the fourth quarter of 2025, marking the second consecutive quarter of growth. He attributed demand to geopolitical uncertainty and sovereign communications requirements, and said Gogo sees rising spending beyond the U.S. and NATO as governments modernize secure and airborne networks. During the quarter, Moore said Gogo secured several contracts and wins, including: NOAA contract: More than $8 million over five years. U.S. civil government customer: More than $3 million for Galileo and 5G on small to mid-size airframes. UAV market wins: Customer wins for both GEO and LEO services for border protection and surveillance, with drone manufacturers anticipated to deliver more than $15 million in revenue over contractual periods. Moore also said the company adapted the HDX terminal to fit under an existing STC and “escape hatch for a major airframe OEM for European deployment,” which he described as demonstrating the importance of avoiding vendor lock. He added that once the EVDO network is sunset, Gogo expects to operate “the only fully U.S.-based data sovereign ATG network,” which he said may open opportunities previously constrained by national security requirements tied to foreign components in older hardware. Cotner said first-quarter performance met expectations, driven by C1 and 5G demand, “positive Galileo momentum,” and continued growth in military and government service revenue, which helped offset service revenue softness from ATG deactivations. Gogo reported total revenue of $226.3 million, down 2% versus both the year-ago quarter and the fourth quarter of 2025. Service revenue was $187.7 million, down 5% year-over-year and 2% sequentially. Equipment revenue was $38.6 million, up 22% year-over-year and flat sequentially. On unit activity, Cotner said the company sold 511 ATG units, up 8% sequentially, including 184 AVANCE units (up 5% quarter-over-quarter) and 327 C1 units (up 10% sequentially). Cumulative C1 units sold reached 1,063. Cotner reiterated that Gogo’s LTE network is expected to come online later in 2026. Total ATG aircraft online (AOL) ended at 6,116, down 11% year-over-year and 4% sequentially. Advanced AOL represented 79% of total ATG AOL. Average monthly service revenue per ATG aircraft online (ARPA) was $3,351, down 3% from the prior year and flat sequentially. Broadband GEO AOL rose 2% year-over-year to 1,306 but declined by 15 units sequentially. Net income was $13.1 million, which Cotner said benefited from non-cash items, including a $4.9 million pre-tax reduction to the Satcom Direct earn-out accrual, the non-recurrence of a $10 million litigation accrual recorded in the fourth quarter, and the absence of a prior-quarter $4 million pre-tax convertible note fair value charge. Adjusted EBITDA was $53.3 million, down 14% year-over-year but up 41% sequentially. Cotner attributed the sequential gain primarily to improved equipment profit from product mix and lower inventory reserves, plus reduced ED&D expenses. He said annualized synergies reached $40 million, exceeding prior targets, and noted ED&D expenses benefited from FCC reimbursement-related cost recoveries. Free cash flow was negative $19.2 million, compared with $30 million in the year-ago quarter and negative $4.9 million in the fourth quarter. Cotner said cash flow was impacted by a $14 million annual bonus payout and a reduction in accounts payable tied to an inventory ramp for Galileo launches. Gogo ended the quarter with $103.5 million in cash and cash equivalents. On leverage and debt repayment, Cotner said the company made a $21.1 million principal payment on its HPS term loan facility in April via an excess cash flow sweep. Net debt leverage ended the quarter at 3.6x, and Cotner said management expects leverage to increase slightly in the second and third quarters before returning to the company’s target range by the fourth quarter. Gogo reiterated full-year 2026 guidance, projecting total revenue of $905 million to $945 million, adjusted EBITDA of $198 million to $218 million (including $3 million in strategic investments and $8 million of ongoing litigation expense), and free cash flow of $90 million to $110 million. Cotner said the outlook assumes a wind-down of new product investment, sustained cost synergies, and an expected ramp in new product revenue, and includes $30 million of strategic investments net of FCC reimbursements and net capital expenditures of $20 million assuming $45 million in FCC reimbursement. Gogo Inc is a leading provider of in-flight connectivity and entertainment solutions for commercial and business aviation. The company specializes in delivering broadband internet, voice and text services, and streaming entertainment to passengers at 35,000 feet. Gogo's offerings include both air-to-ground (ATG) networks and satellite-based connectivity, enabling reliable in-flight internet access across a range of aircraft types. Gogo's ATG network spans the United States and portions of Canada, using ground towers to transmit data signals directly to equipped aircraft. The article "Gogo Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.