Gogo Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue was $213.2 million, a 5% decrease year-over-year (YoY) and a 4% decrease quarter-over-quarter (QoQ).
• Service revenue was $182.7 million, down 4% YoY and 4% QoQ.
• Business aviation service revenue was $145.6 million, down 10% YoY and 4% QoQ.
• Military/Government service revenue was $37.2 million, up 36% YoY but down 7% QoQ.
• Equipment revenue was $30.5 million, down 9% YoY and 3% QoQ.
• Net loss was $3.2 million, compared to a net loss of $1.3 million in Q3 2025.
• Diluted loss per share was $0.02, compared to a loss of $0.01 in Q3 2025.
• Adjusted EBITDA was $41.0 million, down 27% YoY and 24% QoQ.
• Net cash provided by operating activities was $26.3 million, compared to net cash used of $20.5 million in Q3 2025.
• Free Cash Flow was $28.1 million, compared to a negative $2.5 million in Q3 2025 and a positive $6.5 million in Q2 2026.
• Cash and cash equivalents were $90.7 million, down $42.9 million from Q3 2025.
• Total debt was $817.1 million ($814.6 million long-term plus $2.5 million current portion) as of September 30, 2026.
• Deferred revenue was $30.0 million as of September 30, 2026.

Guidance and Future Outlook

• Reiterated 2026 financial guidance.
• Total revenue guidance for 2026 remains $870 million to $895 million, split approximately 84% service revenue and 16% equipment revenue.
• Adjusted EBITDA guidance for 2026 remains $175 million to $185 million, including $18 million of ongoing litigation expense (reduced from $22 million in prior guidance).
• Free Cash Flow guidance for 2026 remains $65 million to $85 million, including $25 million slated for strategic investments.
• Net capital expenditures for 2026 are expected to be $20 million, assuming $55 million in consolidated capital expenditures and $35 million in FCC reimbursement.
• Management expects recurring revenue from next-generation platforms to grow, leading to a more favorable revenue mix and greater forecasting stability.

Business Segments and Product Lines

• Gogo Galileo equipment units shipped reached 172 in Q3 2026, a 95% increase YoY and 59% increase QoQ.
• Total ATG equipment units sold were 142, down 68% YoY and 52% QoQ.
• Gogo Galileo Aircraft Online (AOL) reached 297, a 1,550% increase YoY and 61% increase QoQ.
• Broadband GEO AOL was 1,285, down 4% YoY and 2% QoQ.
• Cumulative Gogo Galileo equipment shipments reached 372 units.
• Textron Aviation announced it will include Gogo Galileo HDX as a standard fit for Cessna Citation Longitude, Citation Latitude, and Citation Ascend business jets.
• PlaneSense selected Gogo Galileo HDX for its entire fleet of 71 Pilatus PC-12 turboprops and PC-24 jets, with installations expected by end of 2027.
• Bombardier placed an OEM order for 10 Gogo Galileo FDX and 15 Gogo Galileo HDX units.
• Duncan Aviation purchased 40 Gogo Galileo HDX systems, the largest single MRO order of the year.
• TransMedics contracted to equip 22 Embraer Phenom 300E aircraft with Gogo Galileo HDX for organ transport missions, with full deployment expected by mid-2027.
• Gogo unveiled a long-term Galileo technology roadmap targeting performance enhancements every 24 months over six years, with download speeds five times and upload speeds ten times current levels.
• Gogo Special Missions and Insitu (a Boeing company) completed testing of a high-speed satellite solution for Group 3 uncrewed aircraft systems.

Market and Competitive Landscape

• The FCC renewed Gogo's exclusive, nationwide air-to-ground spectrum licenses through 2036.
• Gogo received a six-month extension from the FCC for its "Rip & Replace" network program, extending the deadline to May 8, 2027.
• Gogo secured a sovereign communications lease renewal valued at over $15 million for GEO satellite connectivity to an overseas government customer.
• The Company is transitioning from a domestic ATG provider to a global provider of high-speed LEO and GEO satellite connectivity for business and military/government aviation.

Risks and Challenges

• Total revenue and service revenue declined YoY, driven by a 10% drop in business aviation service revenue.
• ATG aircraft online decreased 17% YoY to 5,399.
• Adjusted EBITDA declined 27% YoY.
• The press release notes ongoing litigation expense of $4.1 million incurred in Q3 2026, included in GAAP net income and Adjusted EBITDA calculations.
• The "Cautionary Note" lists extensive risks including reliance on key OEMs, dependence on third-party satellite providers, competition, supply chain issues, regulatory changes, and the ability to generate revenue from new connectivity offerings.

Management Commentary and Tone

• CEO Chris Moore stated results reflect "meaningful progress" in the transformation to global LEO and GEO connectivity.
• Moore highlighted the 10-year spectrum renewal as enabling growth in new markets and partnerships as utilization shifts to newer platforms.
• CFO Zac Cotner expressed pleasure with the Term Loan B amendment, noting it provides flexibility to execute the transformation strategy while directing free cash flow toward debt reduction.
• Cotner indicated expectations for a more favorable revenue mix and forecasting stability as recurring revenue from next-generation platforms grows.

Other Key Points

• Completed amendment and extension of the ~$600 million Original Term Loan B facility.
• The Term Loan B extension pushes maturity to October 2030, providing 2.5 years of additional runway.
• Debt reduction commitments include $75 million in principal repayments through the end of 2027, with an immediate $25 million paydown, $30 million by December 31, 2026, and $20 million by December 31, 2027.
• Inclusive of amortization, overall debt is projected to be reduced by a cumulative $92 million by the end of 2027.
• The Company hosts a third-quarter conference call on November 6, 2026, at 8:30 a.m. ET.
• The press release includes detailed reconciliations of GAAP to Non-GAAP measures (Adjusted EBITDA and Free Cash Flow).