Gogo Inc. — Q2 2026 Earnings Summary

Financial Performance

• Total revenue was $222.8 million, a 1% decrease year-over-year (Q2 2025) and a 2% decrease sequentially (Q1 2026).
• Service revenue was $191.3 million, down 1% year-over-year but up 2% sequentially.
• Equipment revenue was $31.5 million, down 2% year-over-year and 18% sequentially.
• Military/Government service revenue reached $39.9 million, a 40% increase year-over-year and 20% sequentially.
• Business aviation service revenue was $151.3 million, down 8% year-over-year and 2% sequentially.
• Net loss was $2.0 million, compared to net income of $12.8 million in Q2 2025 and $13.1 million in Q1 2026.
• Adjusted EBITDA was $53.7 million, down 13% year-over-year and up approximately 1% sequentially; this figure includes $3.2 million in litigation expenses.
• Net cash provided by operating activities was $32.3 million, down from $36.7 million in Q2 2025 and up from $(7.2) million in Q1 2026.
• Free Cash Flow was $21.6 million, down from $33.5 million in Q2 2025 and up from $(19.2) million in Q1 2026.
• Cash and cash equivalents were $63.1 million as of June 30, 2026, down from $103.5 million at March 31, 2026.
• Total debt decreased from $836.1 million (current + non-current) at December 31, 2025, to $816.6 million at June 30, 2026.
• Deferred revenue was $36.2 million as of June 30, 2026, up from $35.2 million at December 31, 2025.

Guidance and Future Outlook

• Full-year 2026 total revenue guidance updated to $870 million–$895 million, split approximately 84% service and 16% equipment.
• Full-year 2026 Adjusted EBITDA guidance updated to $175 million–$185 million, including $5 million in strategic investments and $22 million in ongoing litigation expenses.
• Full-year 2026 Free Cash Flow guidance updated to $65 million–$85 million, including $30 million in strategic investments and net of FCC reimbursement.
• Net capital expenditures for 2026 are expected to be $20 million, assuming $45 million in FCC reimbursement.
• Gogo Galileo and 5G products are expected to ramp in the second half of 2026.
• HDX and 5G demonstrations for the Pilatus PC-24 are tentatively scheduled to begin in mid-August and late October, respectively.

Business Segments and Product Lines

• Gogo Galileo equipment shipments totaled 108 units in Q2 2026, up 17% sequentially, with cumulative shipments reaching 518 units.
• Total ATG equipment units sold were 297 in Q2 2026, down 27% year-over-year and 42% sequentially.
• Gogo 5G unit shipments increased to 138 units in Q2 2026 from 52 units in Q1 2026.
• Total ATG Aircraft Online (AOL) was 5,731, down 15% year-over-year and 6% sequentially.
• ATG AVANCE AOL was 4,603, down 4% year-over-year and 5% sequentially.
• ATG C-1 AOL was 690, up 24% sequentially.
• Broadband GEO AOL was 1,306, flat sequentially and down 1% year-over-year.
• Gogo Galileo AOL was 184, up 66% sequentially.
• Satellite broadband service revenue was $84.3 million, up from $76.7 million in Q2 2025.
• ATG broadband service revenue was $60.0 million, down from $74.2 million in Q2 2025.
• Narrowband and other service revenue was $46.9 million, up from $43.0 million in Q2 2025.
• Satellite broadband equipment revenue was $13.1 million, up from $4.6 million in Q2 2025.

Market and Competitive Landscape

• Military and government service revenue grew 40% year-over-year, driven by demand for secure airborne connectivity.
• Gogo Galileo HDX received FAA and EASA certification for installation on Dassault Falcon 7X and 8X aircraft.
• Gulfstream received STC certification for all tail-mounted Gogo Galileo HDX installations on G650 and G650ER aircraft.
• SD Government, a subsidiary of Gogo, Pilatus, and Pro Star Aviation, achieved FAA STC approval for Gogo Galileo HDX on Pilatus PC-12 turboprops.
• Airshare is equipping its Embraer Phenom 300 fleet with Gogo Galileo HDX and AVANCE L5.
• Gogo secured a $7.5 million multi-year contract with NOAA's Aircraft Operations Center for the "Hurricane Hunter" fleet.
• Gogo Galileo HDX remains the only line-fit option for the Phenom 300.

Risks and Challenges

• The press release lists extensive forward-looking risks including reliance on key OEMs, single-source satellite providers, and third-party equipment components.
• Risks include potential competition, service interruptions, cybersecurity incidents, and technology failures.
• Financial risks include substantial indebtedness, interest rate increases, and the ability to refinance existing debt.
• Litigation expenses are a noted financial factor, with $3.2 million incurred in Q2 2026 and $22 million included in full-year guidance.
• The company notes the finite useful life of satellites and potential impacts from global supply chain issues, tariffs, and inflation.

Management Commentary and Tone

• CEO Chris Moore stated results show continued momentum in the transformation to a global high-speed broadband provider, highlighting a record quarter for military/government business.
• CFO Zac Cotner noted results were in line with expectations, citing strong military/government performance as a stabilizer and growth engine.
• Management emphasized disciplined execution and debt reduction as the highest financial priorities for the next several quarters.
• The tone reflects confidence in the next-generation product transition driven by the scaling of Galileo and 5G.

Other Key Points

• The Company made a $40.0 million earn-out payment related to the earlier purchase of Satcom Direct during Q2 2026.
• The Company made a $21.1 million principal payment on the HPS term loan facility during Q2 2026.
• The Conference Call for Q2 2026 results was scheduled for August 6, 2026, at 8:30 a.m. ET.
• No reconciliation of forecasted Adjusted EBITDA to GAAP is included for the full year 2026 due to the high variability and complexity of estimating certain forward-looking amounts.
• The company received $15.3 million in proceeds from the FCC Reimbursement Program for property, equipment, and intangibles in the first six months of 2026.