Gogo (NASDAQ: GOGO) Q1 2026 profit rises as cash flow turns negative
Rhea-AI Filing Summary
Gogo Inc. reported mixed first quarter 2026 results with reaffirmed full-year guidance. Total revenue was $226.3 million, down 2% year over year, as service revenue declined to $187.7 million while equipment revenue rose 22% to $38.6 million on a record 511 ATG units sold.
Net income was $13.1 million, up from $12.0 million a year earlier, helped by a $4.9 million reduction in the Satcom Direct earn-out liability. Adjusted EBITDA was $53.3 million, down 14% year over year but up 41% sequentially, including $6.1 million of litigation expenses.
Free cash flow was negative $19.2 million, compared with positive $30.0 million in Q1 2025, driven by bonus payments and working capital. Cash and cash equivalents were $103.5 million. The company highlighted growth in Gogo Galileo and 5G, obtained an FCC reimbursement program extension, and made a $21.1 million term loan principal payment and a $40.0 million earn-out payment in April. Gogo reaffirmed 2026 guidance for revenue of $905–$945 million, Adjusted EBITDA of $198–$218 million, and free cash flow of $90–$110 million.
Positive
- None.
Negative
- None.
Insights
Q1 shows modest revenue pressure but solid profitability and reaffirmed 2026 targets.
Gogo generated Q1 2026 revenue of $226.3 million, down 1.7% year over year, as service revenue fell while equipment revenue grew 21.7%. Net income improved to $13.1 million, and Adjusted EBITDA of $53.3 million declined 14% year over year but rose sharply versus Q4.
Cash generation was weak this quarter: free cash flow was $(19.2) million compared with $30.0 million a year earlier, affected by $14 million in annual bonuses and inventory-related working capital. Still, cash on hand increased versus Q1 2025 to $103.5 million, and management continued deleveraging with a $21.1 million principal payment and a $40.0 million acquisition earn-out payment in April.
Strategically, the quarter underscores the shift toward next-generation connectivity. Record ATG units sold (511) and cumulative 410 Gogo Galileo shipments, plus growth in military/government service revenue, support longer-term expansion in business and government aviation. Reaffirmed 2026 guidance for revenue of $905–$945 million and free cash flow of $90–$110 million signals management’s confidence despite near-term service revenue softness and negative current-quarter free cash flow.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Free Cash Flow financial
FCC Reimbursement Program regulatory
Earnout Liability financial
supplemental type certificates technical
Low Earth Orbit technical
Earnings Snapshot
For 2026, Gogo targets total revenue of $905–$945 million, Adjusted EBITDA of $198–$218 million, and free cash flow of $90–$110 million, with net capital expenditures of $20 million assuming $45 million FCC reimbursement.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant's telephone number, including area code:
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of Class |
Trading Symbol |
Name of Each Exchange on Which Registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 7, 2026, Gogo Inc. issued a press release and infographic announcing its results of operations for the first quarter ended March 31, 2026. Copies of the press release and infographic are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.
Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit No. |
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Description |
99.1 |
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Press Release dated May 7, 2026. |
99.2 |
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Infographic dated May 7, 2026 |
104 |
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Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GOGO INC.
By: /s/ Zachary Cotner
Zachary Cotner
Executive Vice President and
Chief Financial Officer
Date: May 7, 2026
Exhibit 99.1
Press Release For Immediate Release |
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Investor Relations Contact: |
Media Relations Contact: |
Collected Strategies |
Stacey Giglio |
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+1 321-525-4607 |
Gogo-CS@collectedstrategies.com |
sgiglio@gogoair.com |
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GOGO ANNOUNCES FIRST QUARTER RESULTS
Total Revenue of $226.3 million;
Equipment Revenue up 22% Year-Over-Year to $38.6 million on Record ATG Unit Sales
Net Income of $13.1 million, Adjusted EBITDA1 of $53.3 million, up 41% Sequentially
Gogo Galileo and 5G Expected to Ramp in 2026
BROOMFIELD, Colo. - May 7, 2026 – 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 March 31, 2026.
“We are pleased with our results in the quarter as Gogo continues its transformation from a domestic provider of air-to-ground (“ATG”) connectivity into a global provider of high-speed broadband to the underpenetrated business and military/government aviation markets,” said Chris Moore, CEO of Gogo. “Gogo Galileo is scaling globally, our sovereign 5G network is live and gaining traction amongst our business and military/government aviation customers, and our geostationary earth orbit (“GEO”) business continues to be resilient.”
Zac Cotner, CFO of Gogo, commented, “Our first quarter reflects the strong demand for our next-generation products as demonstrated by our record ATG and robust Gogo Galileo shipments. Further, our $21.1 million debt principal repayment in April underscores our commitment to de-lever the balance sheet, which remains our top capital allocation priority.”
Q1 2026 Financial Highlights
Equipment Revenue
Service Revenue
1
Recent Developments
Reaffirms 2026 Financial Guidance
Gogo reiterates its 2026 financial guidance provided in February.
2
1 See "Non-GAAP Financial Measures" below.
2 See "Key Business Metrics" below.
Conference Call
The Company will host its first quarter conference call on May 7, 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.
Q1 Earnings Call Webcast Link: https://edge.media-server.com/mmc/p/u2r8pusu
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/BIc4f987ec8e6641bcacc75d30405fcd9f
Non-GAAP Financial Measures
We 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 Metrics
Our 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 Statements
Certain 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
3
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.
4
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 Gogo
Gogo 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.
Gogo Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
|
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For the Three Months |
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2026 |
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2025 |
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Revenue: |
|
|
|
|
|
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Service revenue |
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$ |
187,732 |
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$ |
198,612 |
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Equipment revenue |
|
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38,587 |
|
|
|
31,695 |
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Total revenue |
|
|
226,319 |
|
|
|
230,307 |
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Operating expenses: |
|
|
|
|
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||
Cost of service revenue (exclusive of amounts shown below) |
|
|
98,314 |
|
|
|
94,047 |
|
Cost of equipment revenue (exclusive of amounts shown below) |
|
|
34,988 |
|
|
|
29,326 |
|
Engineering, design and development |
|
|
6,492 |
|
|
|
13,875 |
|
Sales and marketing |
|
|
13,491 |
|
|
|
14,210 |
|
General and administrative |
|
|
26,208 |
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|
|
29,519 |
|
Depreciation and amortization |
|
|
15,139 |
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|
14,143 |
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Total operating expenses |
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|
194,632 |
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|
195,120 |
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Operating income |
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31,687 |
|
|
|
35,187 |
|
Other expense (income): |
|
|
|
|
|
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||
Interest income |
|
|
(1,154 |
) |
|
|
(590 |
) |
Interest expense |
|
|
16,846 |
|
|
|
16,558 |
|
Change in fair value of Earnout Liability |
|
|
(4,943 |
) |
|
|
— |
|
Other expense (income), net |
|
|
(95 |
) |
|
|
234 |
|
Total other expense |
|
|
10,654 |
|
|
|
16,202 |
|
Income before income taxes |
|
|
21,033 |
|
|
|
18,985 |
|
Income tax provision |
|
|
7,948 |
|
|
|
6,943 |
|
Net income |
|
$ |
13,085 |
|
|
$ |
12,042 |
|
|
|
|
|
|
|
|
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Net income attributable to common stock per share: |
|
|
|
|
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||
Basic |
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$ |
0.10 |
|
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$ |
0.09 |
|
Diluted |
|
$ |
0.10 |
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|
$ |
0.09 |
|
Weighted average number of shares: |
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|
|
|
|
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Basic |
|
|
135,656 |
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|
|
132,472 |
|
Diluted |
|
|
136,849 |
|
|
|
135,314 |
|
5
Gogo Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
|
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March 31, |
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December 31, |
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2026 |
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2025 |
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Assets |
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Current assets: |
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|
|
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Cash and cash equivalents |
|
$ |
103,544 |
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|
$ |
125,206 |
|
Accounts receivable, net of allowances of $8,462 and $6,783, respectively |
|
|
115,141 |
|
|
|
112,558 |
|
Inventories |
|
|
101,794 |
|
|
|
98,853 |
|
Assets held for sale |
|
|
26,268 |
|
|
|
26,253 |
|
Prepaid expenses and other current assets |
|
|
83,723 |
|
|
|
69,039 |
|
Total current assets |
|
|
430,470 |
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|
431,909 |
|
Non-current assets: |
|
|
|
|
|
|
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Property and equipment, net |
|
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116,529 |
|
|
|
117,274 |
|
Intangible assets, net |
|
|
233,382 |
|
|
|
248,818 |
|
Goodwill |
|
|
193,187 |
|
|
|
193,187 |
|
Operating lease right-of-use assets |
|
|
55,585 |
|
|
|
57,990 |
|
Other non-current assets, net of allowances of $603 and $538, respectively |
|
|
49,805 |
|
|
|
44,928 |
|
Deferred income taxes |
|
|
202,236 |
|
|
|
209,666 |
|
Total non-current assets |
|
|
850,724 |
|
|
|
871,863 |
|
Total assets |
|
$ |
1,281,194 |
|
|
$ |
1,303,772 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
81,688 |
|
|
$ |
92,514 |
|
Accrued liabilities |
|
|
117,709 |
|
|
|
139,020 |
|
Deferred revenue |
|
|
36,360 |
|
|
|
35,194 |
|
Current portion of long-term debt |
|
|
23,589 |
|
|
|
2,500 |
|
Total current liabilities |
|
|
259,346 |
|
|
|
269,228 |
|
Non-current liabilities: |
|
|
|
|
|
|
||
Long-term debt |
|
|
813,043 |
|
|
|
833,579 |
|
Non-current operating lease liabilities |
|
|
52,871 |
|
|
|
55,772 |
|
Other non-current liabilities |
|
|
37,914 |
|
|
|
44,064 |
|
Total non-current liabilities |
|
|
903,828 |
|
|
|
933,415 |
|
Total liabilities |
|
|
1,163,174 |
|
|
|
1,202,643 |
|
Stockholders’ equity |
|
|
|
|
|
|
||
Common stock |
|
|
14 |
|
|
|
13 |
|
Additional paid-in capital |
|
|
1,291,858 |
|
|
|
1,288,294 |
|
Accumulated other comprehensive income |
|
|
285 |
|
|
|
44 |
|
Accumulated deficit |
|
|
(1,174,137 |
) |
|
|
(1,187,222 |
) |
Total stockholders’ equity |
|
|
118,020 |
|
|
|
101,129 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,281,194 |
|
|
$ |
1,303,772 |
|
6
Gogo Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
|
|
For the Three Months |
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|||||
|
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2026 |
|
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2025 |
|
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Operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
13,085 |
|
|
$ |
12,042 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
15,139 |
|
|
|
14,143 |
|
Loss on asset disposals, abandonments and write-downs |
|
|
208 |
|
|
|
13 |
|
Provision for expected credit losses |
|
|
1,855 |
|
|
|
945 |
|
Deferred income taxes |
|
|
7,273 |
|
|
|
6,136 |
|
Stock-based compensation expense |
|
|
4,833 |
|
|
|
5,491 |
|
Amortization of deferred financing costs and interest rate caps |
|
|
1,356 |
|
|
|
1,577 |
|
Accretion of debt discount |
|
|
462 |
|
|
|
416 |
|
Change in fair value of Earnout Liability |
|
|
(4,943 |
) |
|
|
— |
|
Change in fair value of convertible note investment |
|
|
(230 |
) |
|
|
253 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(4,341 |
) |
|
|
(4,785 |
) |
Inventories |
|
|
(2,939 |
) |
|
|
4,148 |
|
Prepaid expenses and other current assets |
|
|
(11,590 |
) |
|
|
(3,527 |
) |
Contract assets |
|
|
(4,665 |
) |
|
|
(1,947 |
) |
Accounts payable |
|
|
(2,051 |
) |
|
|
126 |
|
Accrued liabilities |
|
|
(20,941 |
) |
|
|
2,716 |
|
Deferred revenue |
|
|
973 |
|
|
|
(2,438 |
) |
Accrued interest |
|
|
(5 |
) |
|
|
(2,046 |
) |
Other non-current assets and liabilities |
|
|
(715 |
) |
|
|
(791 |
) |
Net cash (used in) provided by operating activities |
|
|
(7,236 |
) |
|
|
32,472 |
|
Investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(25,721 |
) |
|
|
(2,751 |
) |
Acquisition of intangible assets—capitalized software |
|
|
(2,292 |
) |
|
|
(3,418 |
) |
Proceeds from FCC Reimbursement Program for property, equipment and intangibles |
|
|
14,886 |
|
|
|
564 |
|
Proceeds from interest rate caps |
|
|
1,180 |
|
|
|
3,170 |
|
Net cash used in investing activities |
|
|
(11,947 |
) |
|
|
(2,435 |
) |
Financing activities: |
|
|
|
|
|
|
||
Payments on term loan |
|
|
(625 |
) |
|
|
(625 |
) |
Payments on financing leases |
|
|
(15 |
) |
|
|
(2 |
) |
Stock-based compensation activity |
|
|
(1,971 |
) |
|
|
(947 |
) |
Net cash used in financing activities |
|
|
(2,611 |
) |
|
|
(1,574 |
) |
Effect of exchange rate changes on cash |
|
|
129 |
|
|
|
55 |
|
(Decrease) increase in cash, cash equivalents and restricted cash |
|
|
(21,665 |
) |
|
|
28,518 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
125,690 |
|
|
|
42,304 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
104,025 |
|
|
$ |
70,822 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
104,025 |
|
|
$ |
70,822 |
|
Less: current restricted cash |
|
|
87 |
|
|
|
70 |
|
Less: non-current restricted cash |
|
|
394 |
|
|
|
470 |
|
Cash and cash equivalents at end of period |
|
$ |
103,544 |
|
|
$ |
70,282 |
|
Supplemental cash flow information: |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
17,472 |
|
|
$ |
20,926 |
|
Cash paid for taxes |
|
|
160 |
|
|
|
162 |
|
Non-cash investing activities: |
|
|
|
|
|
|
||
Purchases of property, equipment and intangibles in liabilities |
|
$ |
6,933 |
|
|
$ |
6,112 |
|
7
Gogo Inc. and Subsidiaries
Supplemental Information – Disaggregated Revenue
(in thousands, unaudited)
|
|
For the Three Months Ended March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Service revenue by type |
|
|
|
|
|
|
||
Satellite broadband |
|
$ |
80,102 |
|
|
$ |
77,679 |
|
ATG broadband |
|
|
64,802 |
|
|
|
75,970 |
|
Narrowband and other |
|
|
42,828 |
|
|
|
44,963 |
|
Total service revenue by type |
|
$ |
187,732 |
|
|
$ |
198,612 |
|
Service revenue by market |
|
|
|
|
|
|
||
Business aviation |
|
$ |
154,355 |
|
|
$ |
169,281 |
|
Military / Government |
|
|
33,377 |
|
|
|
29,331 |
|
Total service revenue by market |
|
$ |
187,732 |
|
|
$ |
198,612 |
|
|
|
|
|
|
|
|
||
Equipment revenue |
|
|
|
|
|
|
||
Satellite broadband |
|
$ |
12,413 |
|
|
$ |
6,375 |
|
ATG broadband |
|
|
19,654 |
|
|
|
18,672 |
|
Narrowband and other |
|
|
6,520 |
|
|
|
6,648 |
|
Total equipment revenue |
|
$ |
38,587 |
|
|
$ |
31,695 |
|
8
Gogo Inc. and Subsidiaries
Supplemental Information – Key Business Metrics
|
|
For the Three Months |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Aircraft online (at period end) |
|
|
|
|
|
|
||
ATG AVANCE |
|
|
4,851 |
|
|
|
4,716 |
|
Gogo Biz |
|
|
1,265 |
|
|
|
2,186 |
|
Total ATG |
|
|
6,116 |
|
|
|
6,902 |
|
GEO aircraft online |
|
|
1,306 |
|
|
|
1,280 |
|
Gogo Galileo aircraft online |
|
|
111 |
|
|
|
— |
|
Average monthly connectivity service revenue per ATG aircraft online |
|
$ |
3,351 |
|
|
$ |
3,451 |
|
ATG units sold |
|
|
511 |
|
|
|
317 |
|
For more information, see "Key Business Metrics" above.
Gogo Inc. and Subsidiaries
Supplemental Information – Revenue and Cost of Revenue
(in thousands, unaudited)
|
|
For the Three Months |
|
|
% Change |
|
||||||
|
|
2026 |
|
|
2025 |
|
|
2026 over 2025 |
|
|||
Service revenue |
|
$ |
187,732 |
|
|
$ |
198,612 |
|
|
|
(5.5 |
)% |
Equipment revenue |
|
|
38,587 |
|
|
|
31,695 |
|
|
|
21.7 |
% |
Total revenue |
|
$ |
226,319 |
|
|
$ |
230,307 |
|
|
|
(1.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|||
|
|
For the Three Months |
|
|
% Change |
|
||||||
|
|
2026 |
|
|
2025 |
|
|
2026 over 2025 |
|
|||
Cost of service revenue (1) |
|
$ |
98,314 |
|
|
$ |
94,047 |
|
|
|
4.5 |
% |
Cost of equipment revenue (1) |
|
$ |
34,988 |
|
|
$ |
29,326 |
|
|
|
19.3 |
% |
9
Gogo Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, unaudited)
|
|
For the Three Months |
|
|
For the Three Months Ended December 31, |
|
||||||
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|||
Net income (loss) attributable to common stock (GAAP) |
|
$ |
13,085 |
|
|
$ |
12,042 |
|
|
$ |
(9,996 |
) |
Interest expense |
|
|
16,846 |
|
|
|
16,558 |
|
|
|
17,567 |
|
Interest income |
|
|
(1,154 |
) |
|
|
(590 |
) |
|
|
(1,425 |
) |
Income tax provision |
|
|
7,948 |
|
|
|
6,943 |
|
|
|
1,405 |
|
Depreciation and amortization |
|
|
15,139 |
|
|
|
14,143 |
|
|
|
15,805 |
|
EBITDA |
|
|
51,864 |
|
|
|
49,096 |
|
|
|
23,356 |
|
Stock-based compensation expense |
|
|
4,833 |
|
|
|
5,491 |
|
|
|
5,552 |
|
Change in fair value of Earnout Liability |
|
|
(4,943 |
) |
|
|
— |
|
|
|
(7,100 |
) |
Acquisition and integration-related costs(1) |
|
|
1,815 |
|
|
|
6,467 |
|
|
|
1,493 |
|
Amortization of acquisition-related inventory step-up costs |
|
|
— |
|
|
|
748 |
|
|
|
497 |
|
Litigation settlement accrual costs |
|
|
— |
|
|
|
— |
|
|
|
10,010 |
|
Change in fair value of convertible note investment |
|
|
(230 |
) |
|
|
253 |
|
|
|
4,010 |
|
Adjusted EBITDA |
|
$ |
53,339 |
|
|
$ |
62,055 |
|
|
$ |
37,818 |
|
|
|
|
|
|
|
|
|
|
|
|||
Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|||
Net cash provided by operating activities (GAAP) (2) |
|
$ |
(7,236 |
) |
|
$ |
32,472 |
|
|
$ |
8,503 |
|
Consolidated capital expenditures (2) |
|
|
(28,013 |
) |
|
|
(6,169 |
) |
|
|
(40,429 |
) |
Proceeds from FCC Reimbursement Program for property, equipment and intangibles (2) |
|
|
14,886 |
|
|
|
564 |
|
|
|
25,499 |
|
Proceeds from interest rate caps (2) |
|
|
1,180 |
|
|
|
3,170 |
|
|
|
1,482 |
|
Free cash flow |
|
$ |
(19,183 |
) |
|
$ |
30,037 |
|
|
$ |
(4,945 |
) |
Gogo Inc. and Subsidiaries
Reconciliation of Estimated Full-Year GAAP Net Cash
Provided by Operating Activities to Non-GAAP Measures
(in millions, unaudited)
|
FY 2026 Range |
|
|||||
|
Low |
|
|
High |
|
||
Free Cash Flow: |
|
|
|
|
|
||
Net cash provided by operating activities (GAAP) |
$ |
108 |
|
|
$ |
128 |
|
Consolidated capital expenditures |
|
(65 |
) |
|
|
(65 |
) |
Proceeds from FCC Reimbursement Program for property, equipment and intangibles |
|
45 |
|
|
|
45 |
|
Proceeds from interest rate caps |
|
2 |
|
|
|
2 |
|
Free cash flow |
$ |
90 |
|
|
$ |
110 |
|
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) litigation settlement accrual costs, and (iv) change in fair value of convertible note investment. 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
10
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 litigation settlement accrual costs 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 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.
11
Exhibit 99.2
