Gogo Stock Earnings Reports

Gogo’s Q1 2026 results show a company in active transition from legacy ATG/EVDO and GEO offerings toward next‑generation products (Galileo LEO portfolio and 5G/AVANCE). Total revenue was $226.3M (down ~2% y/y), service revenue $187.7M (down 5% y/y), and equipment revenue $38.6M (up 22% y/y). Key operational highlights: Galileo shipments were 92 in Q1 (410 cumulative; 35 STCs covering ~7,000 aircraft with 14 more STCs underway), record ATG equipment sales of 511 units (including 52 5G units), and record C1 conversions of 254 (cumulative C1 = 1,063). Advanced ATG aircraft now represent 79% of ATG AOL; Galileo AOL grew ~50% sequentially. GEO AOL declined modestly (down 15 units). Financials: net income $13.1M, adjusted EBITDA $53.3M (-14% y/y, +41% sequentially), free cash flow negative $19.2M, cash $103.5M, net leverage 3.6x (expected to tick up mid‑year then fall into target range by Q4). Management reiterated 2026 guidance: total revenue $905M–$945M, adjusted EBITDA $198M–$218M, and free cash flow $90M–$110M. Strategic points for investors: (1) management is prioritizing debt reduction (already paid $21.1M on HPS term loan), (2) growth runway comes from Galileo line‑fit ramps in H2 2026, 5G rollout (pipeline >500 units), and expanding military/government business (new contracts including NOAA and U.S. civil wins; ~$334M FCC reimbursement reserved to help transitions), and (3) near‑term legacy revenue pressure is expected but will be offset over time by recurring revenue from installed next‑gen equipment and military contracts. Risks called out include ATG aircraft deactivations, GEO attrition as customers migrate to LEO/hybrid solutions, and timing of installations/STCs driving AOL ramps.