[Executive Summary](index=1&type=section&id=Executive%20Summary) Gogo reported strong Q2 2025 financial results with significant revenue and profit growth driven by the Satcom Direct acquisition, alongside operational expansion and increased 2025 financial guidance [Q2 2025 Financial and Operating Highlights](index=1&type=section&id=Q2%202025%20Financial%20and%20Operating%20Highlights) Gogo reported strong second quarter 2025 financial results, significantly boosted by the acquisition of Satcom Direct, with substantial growth in revenue, net income, and Adjusted EBITDA, alongside operational growth in AVANCE ATG aircraft online and unit sales Q2 2025 Financial Highlights | Metric | Q2 2025 (Millions) | YoY Change | QoQ Change | Satcom Direct Contribution (Q2 2025) | | :-------------------------------- | :------------------- | :--------- | :--------- | :----------------------------------- | | Total Revenue | $226.0 | +121% | -2% | $122.8 million | | Service Revenue | $194.0 | +137% | -2% | - | | Equipment Revenue | $32.1 | +59% | +1% | - | Q2 2025 Profitability Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :---------------- | :------------------- | :------------------- | :--------- | | Net Income | $12.8 | $0.8 | Significant Increase | | Adjusted EBITDA | $61.7 | - | +103% | - Total AVANCE ATG aircraft online grew to **4,791** as of June 30, 2025, an increase of **14%** compared to June 30, 2024, and **2%** compared to March 31, 2025 AVANCE units comprised approximately **71%** of total ATG AOL, up from **60%** YoY[5](index=5&type=chunk) - AVANCE equipment unit sales in Q2 2025 totaled **276**, marking the highest sales in two years, an increase of **19%** compared to Q2 2024 and **15%** compared to Q1 2025[5](index=5&type=chunk) [Recent Company Highlights](index=2&type=section&id=Recent%20Company%20Highlights) Gogo's CEO emphasized the strategic value of the Satcom Direct merger and strong market demand for broadband improvements, with Gogo 5G and Galileo expected to launch this year, while the CFO announced increased 2025 financial guidance and projected 2026 Free Cash Flow growth - CEO Chris Moore highlighted the strategic value and successful integration of the Satcom Direct-Gogo merger, noting significant demand for broadband performance improvements and the upcoming launch of **Gogo 5G** and **Galileo** in 2025[7](index=7&type=chunk) - CFO Zac Cotner announced an increase in **2025 financial guidance** to the high-end of previous ranges for revenue, Adjusted EBITDA, and Free Cash Flow, anticipating **2026 Free Cash Flow growth** from integration synergies, new product revenue, and the wind-down of a three-year product investment cycle[7](index=7&type=chunk) Operational and Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------ | :------ | :------ | :----- | | Broadband GEO AOL | 1,321 | 11 | +1,310 units | | Net cash provided by operating activities | $36.7M | $24.9M | +$11.8M | | Free Cash Flow | $33.5M | $24.9M | +$8.6M | | Cash and cash equivalents (as of June 30) | $102.1M | - | +$60.3M (vs. Dec 31, 2024) | - Gogo reiterates the anticipated **Q4 2025 launch timing for 5G**, following Airspan's successful completion of the first end-to-end 5G call using commercial equipment and the Gogo 5G aircard[8](index=8&type=chunk) - The Company's **C-1 solution** has received STC approval for **42 aircraft models**, covering **70%** of current ATG customers, designed to enable connectivity for Classic ATG customers on Gogo's LTE network when it comes online in May 2026[8](index=8&type=chunk) [Financial Guidance](index=3&type=section&id=Financial%20Guidance) Gogo increased its 2025 financial guidance to the high end of previous ranges and anticipates releasing longer-term targets later in 2025, with preliminary targets indicating strong revenue growth and Adjusted EBITDA margins [Updated 2025 Financial Guidance](index=3&type=section&id=Updated%202025%20Financial%20Guidance) Gogo has increased its 2025 financial guidance to the high end of previously provided ranges for total revenue, Adjusted EBITDA, and Free Cash Flow, incorporating the potential impact of global tariffs, while net capital expenditures remain consistent but gross capital expenditures are higher due to increased strategic investments Updated 2025 Financial Guidance | Metric | Previous Range | Updated Guidance | | :-------------------------- | :------------- | :--------------- | | Total Revenue | $870M - $910M | High end of range | | Adjusted EBITDA | $200M - $220M | High end of range | | Free Cash Flow | $60M - $90M | High end of range | | Net Capital Expenditures | $40M | $40M (Consistent) | | Gross Capital Expenditures | $60M | $90M (Increased) | - Adjusted EBITDA guidance includes approximately **$20 million** in operating expenses for strategic and operational initiatives (Gogo 5G and Gogo Galileo), a reduction from prior guidance of **$25 million**[10](index=10&type=chunk) - Free Cash Flow guidance includes **$60 million** for strategic initiatives, net of reimbursements from the FCC Reimbursement Program, compared to prior guidance of **$70 million** Net capital expenditures assume **$50 million** in FCC reimbursement, up from prior expectations of **$20 million**[11](index=11&type=chunk)[12](index=12&type=chunk) - Gross capital expenditures of **$90 million** include **$75 million** in strategic investments for Gogo 5G, Gogo Galileo, and the LTE network build, an increase from prior guidance of **$45 million**[12](index=12&type=chunk) [Longer-Term Financial Targets](index=3&type=section&id=Longer-Term%20Financial%20Targets) Gogo expects to release longer-term financial targets later in 2025, with preliminary targets for the combined company, announced with the Satcom Direct acquisition, including 10% revenue growth and Adjusted EBITDA percentage margins in the mid-20s - The Company expects to provide **longer-term financial targets** later in 2025[13](index=13&type=chunk) - Preliminary targets for the combined company (Gogo and Satcom Direct) included **10% revenue growth** and Adjusted EBITDA percentage margins in the **mid-20s**[13](index=13&type=chunk) [Corporate Information & Disclosures](index=3&type=section&id=Corporate%20Information%20%26%20Disclosures) This section provides details on the Q2 2025 conference call, introduces Gogo's use of non-GAAP financial measures and key operating metrics, includes a cautionary note on forward-looking statements, and offers an overview of Gogo's business as a leading in-flight connectivity provider [Conference Call Details](index=3&type=section&id=Conference%20Call) Gogo hosted its second quarter conference call on August 7, 2025, at 8:30 a.m. ET, with a live webcast and replay available on the Investor Relations section of the company's website - Gogo hosted its second quarter conference call on **August 7, 2025, at 8:30 a.m. ET**[14](index=14&type=chunk) - A live webcast and replay are available on the Investor Relations section of the Company's investor website at https://ir.gogoair.com[14](index=14&type=chunk) [Non-GAAP Financial Measures (Introduction)](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20(Introduction)) Gogo uses non-GAAP financial measures like Adjusted EBITDA and Free Cash Flow for business planning, performance measurement, and liquidity assessment, emphasizing that these measures are not GAAP recognized and should be evaluated in conjunction with GAAP results - Management uses **Adjusted EBITDA** and **Free Cash Flow** for business planning, managing against internal projections, and measuring performance and liquidity[15](index=15&type=chunk) - These supplemental measures provide a basis for comparing period-to-period results by excluding potential differences caused by non-operational and unusual or non-recurring items[15](index=15&type=chunk) - Adjusted EBITDA and Free Cash Flow are not recognized under GAAP and should be used in addition to, not as an alternative to, GAAP measures like net income (loss) and consolidated net cash provided by (used in) operating activities[15](index=15&type=chunk) [Key Operating Metrics (Introduction)](index=4&type=section&id=Key%20Operating%20Metrics%20(Introduction)) Gogo's management regularly reviews key operating metrics to evaluate business performance and guide strategic decisions, with metrics presented primarily for the Gogo Business Aviation (BA) segment due to insufficient time for full Satcom Direct integration - Management reviews key operating metrics to evaluate business performance, execute business plans, allocate resources, and make corporate strategies[18](index=18&type=chunk) - The metrics in this press release are only for the **Gogo BA segment** and do not include metrics for the Satcom Direct segment, except for GEO aircraft online, due to insufficient time post-acquisition[18](index=18&type=chunk) - As part of the integration, management plans to develop a new set of key financial and operating metrics for the combined Gogo BA and Satcom Direct business[18](index=18&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements regarding Gogo's business outlook, strategy, future operations, and financial performance, which are subject to various known and unknown risks, uncertainties, and factors, and Gogo undertakes no obligation to update these statements - Forward-looking statements cover business outlook, strategy, market position, international expansion, future technologies, operations, profitability, capital expenditures, and liquidity[19](index=19&type=chunk) - These statements are based on current expectations but are subject to various known and unknown risks, uncertainties, and factors that could cause actual results to differ materially[19](index=19&type=chunk) - Key risks include the ability to generate revenue, reliance on OEMs and third-party providers, competition, global supply chain issues, integration of Satcom Direct, development of Gogo 5G/Galileo, and compliance with regulations[19](index=19&type=chunk)[20](index=20&type=chunk) - Gogo does not guarantee future performance and undertakes no obligation to publicly update or revise any forward-looking statements[21](index=21&type=chunk) [About Gogo](index=5&type=section&id=About%20Gogo) Gogo is a leading global provider of multi-orbit, multi-band in-flight connectivity services for business and military/government aviation, offering purpose-built technology, including Air-to-Ground (ATG) and multiple satellite constellations, supported by a comprehensive suite of software, hardware, advanced infrastructure, and 24/7 customer support - Gogo is the sole multi-orbit, multi-band in-flight connectivity provider offering technology purpose-built for business and military/government mobility aviation[22](index=22&type=chunk) - Its product portfolio provides best-in-class solutions for all aircraft types, from small to large and heavy jets[22](index=22&type=chunk) - The Gogo offering integrates Air-to-Ground technology and access to multiple satellite constellations for consistent, global connectivity, supported by software, hardware, advanced infrastructure, and 24/7 customer support[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Gogo's unaudited condensed consolidated financial statements, highlighting significant Q2 2025 revenue and net income growth, increased total assets, and positive cash flow from operating activities [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Gogo's unaudited condensed consolidated statements of operations show significant revenue growth for Q2 and H1 2025 compared to the prior year, primarily driven by the Satcom Direct acquisition, with Q2 2025 total revenue reaching $226.0 million and net income at $12.8 million Unaudited Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service revenue | $193,965 | $81,929 | $392,577 | $163,602 | | Equipment revenue | $32,073 | $20,130 | $63,768 | $42,779 | | Total revenue | $226,038 | $102,059 | $456,345 | $206,381 | | Operating income | $35,961 | $21,681 | $71,148 | $56,355 | | Net income | $12,807 | $839 | $24,849 | $31,329 | | Net income attributable to common stock per share (Diluted) | $0.09 | $0.01 | $0.18 | $0.24 | - Cost of service revenue increased significantly to **$91.4 million** in Q2 2025 from **$18.9 million** in Q2 2024, reflecting the expanded operations post-acquisition[25](index=25&type=chunk) - Interest expense more than doubled to **$16.4 million** in Q2 2025 from **$8.1 million** in Q2 2024[25](index=25&type=chunk) [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Gogo's unaudited condensed consolidated balance sheet as of June 30, 2025, shows an increase in total assets to $1,262.97 million from $1,229.23 million at December 31, 2024, primarily driven by an increase in cash and cash equivalents and accounts receivable, with a notable rise in total stockholders' equity Unaudited Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $102,085 | $41,765 | | Total current assets | $385,855 | $323,093 | | Total assets | $1,262,970 | $1,229,231 | | Total current liabilities | $225,609 | $182,028 | | Long-term debt | $832,513 | $831,581 | | Total liabilities | $1,160,180 | $1,159,907 | | Total stockholders' equity | $102,790 | $69,324 | - Goodwill increased to **$192.17 million** as of June 30, 2025, from **$184.83 million** at December 31, 2024[27](index=27&type=chunk) - Accrued liabilities significantly increased to **$122.08 million** from **$81.89 million** over the six-month period[27](index=27&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Gogo generated $69.18 million in net cash from operating activities, an increase from $54.61 million in the prior year period, contributing to a $60.25 million increase in cash and cash equivalents, reaching $102.09 million by June 30, 2025 Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $69,183 | $54,606 | | Net cash used in investing activities | $(7,221) | $(2,685) | | Net cash used in financing activities | $(2,269) | $(29,453) | | Increase in cash, cash equivalents and restricted cash | $60,250 | $22,514 | | Cash and cash equivalents at end of period | $102,085 | $161,550 | - Depreciation and amortization expense significantly increased to **$29.26 million** for the six months ended June 30, 2025, from **$7.73 million** in the prior year[29](index=29&type=chunk) - Cash paid for interest for the six months ended June 30, 2025, was **$39.99 million**, up from **$28.35 million** in the same period last year[29](index=29&type=chunk) [Supplemental Financial and Operating Data](index=9&type=section&id=Supplemental%20Financial%20and%20Operating%20Data) This section provides detailed disaggregated revenue, key operating metrics, revenue and cost analysis, and reconciliations and definitions for non-GAAP financial measures, highlighting the impact of the Satcom Direct acquisition [Disaggregated Revenue](index=9&type=section&id=Supplemental%20Information%20%E2%80%93%20Disaggregated%20Revenue) Gogo's disaggregated revenue for Q2 and H1 2025 highlights the significant contribution from the Satcom Direct acquisition, particularly in Satellite broadband and Narrowband and other service revenues, as well as the new Military/Government market segment, leading to substantial overall service and equipment revenue increases Q2 2025 Service Revenue by Type (in thousands) | Service Revenue Type | Gogo BA | Satcom Direct | Total | | :------------------- | :------ | :------------ | :---- | | Satellite broadband | $698 | $76,008 | $76,706 | | ATG broadband | $74,214 | — | $74,214 | | Narrowband and other | $2,650 | $40,395 | $43,045 | | **Total Service Revenue** | **$77,562** | **$116,403** | **$193,965** | Q2 2025 Service Revenue by Market (in thousands) | Service Revenue Market | Gogo BA | Satcom Direct | Total | | :--------------------- | :------ | :------------ | :---- | | Business aviation | $77,562 | $87,804 | $165,366 | | Military / Government | — | $28,599 | $28,599 | | **Total Service Revenue** | **$77,562** | **$116,403** | **$193,965** | Q2 2025 Equipment Revenue by Type (in thousands) | Equipment Revenue Type | Gogo BA | Satcom Direct | Total | | :--------------------- | :------ | :------------ | :---- | | Satellite broadband | $1,762 | $2,801 | $4,563 | | ATG broadband | $21,786 | — | $21,786 | | Narrowband and other | $2,176 | $3,548 | $5,724 | | **Total Equipment Revenue** | **$25,724** | **$6,349** | **$32,073** | [Key Operating Metrics (Detailed)](index=10&type=section&id=Supplemental%20Information%20%E2%80%93%20Key%20Operating%20Metrics) Gogo's key operating metrics for Q2 2025 show continued growth in AVANCE ATG aircraft online, reaching 4,791 units, while Gogo Biz ATG aircraft online decreased, and the acquisition of Satcom Direct significantly boosted GEO aircraft online to 1,321, with average monthly connectivity service revenue per ATG aircraft online (ARPU) remaining relatively stable Aircraft Online (at period end) | Metric | June 30, 2025 | June 30, 2024 | | :------------ | :------------ | :------------ | | ATG AVANCE | 4,791 | 4,215 | | Gogo Biz | 1,939 | 2,816 | | Total ATG | 6,730 | 7,031 | | GEO aircraft online | 1,321 | 11 | Average Monthly Connectivity Service Revenue per ATG Aircraft Online (ARPU) | Period | ARPU | | :------------------------------------------ | :----- | | Three Months Ended June 30, 2025 | $3,445 | | Three Months Ended June 30, 2024 | $3,468 | | Six Months Ended June 30, 2025 | $3,448 | | Six Months Ended June 30, 2024 | $3,463 | ATG Units Sold | Period | Units Sold | | :------------------------------------------ | :--------- | | Three Months Ended June 30, 2025 | 405 | | Three Months Ended June 30, 2024 | 231 | | Six Months Ended June 30, 2025 | 722 | | Six Months Ended June 30, 2024 | 489 | - Definitions for key operating metrics include AVANCE aircraft online, Gogo Biz aircraft online, GEO aircraft online (with pro-forma Q2 2024 data of **1,144**), Average monthly connectivity service revenue per ATG aircraft online (ARPU), and ATG units sold[37](index=37&type=chunk) [Revenue and Cost of Revenue Analysis](index=10&type=section&id=Supplemental%20Information%20%E2%80%93%20Revenue%20and%20Cost%20of%20Revenue) Gogo's Q2 and H1 2025 revenue and cost of revenue analysis demonstrates significant year-over-year growth across all categories, primarily due to the Satcom Direct acquisition, with service revenue increasing by 136.7% in Q2 2025 and equipment revenue growing by 59.3% Revenue Growth (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change (YoY) | H1 2025 | H1 2024 | % Change (YoY) | | :-------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Service revenue | $193,965 | $81,929 | 136.7% | $392,577 | $163,602 | 140.0% | | Equipment revenue | $32,073 | $20,130 | 59.3% | $63,768 | $42,779 | 49.1% | | Total revenue | $226,038 | $102,059 | 121.5% | $456,345 | $206,381 | 121.1% | Cost of Revenue Growth (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change (YoY) | H1 2025 | H1 2024 | % Change (YoY) | | :---------------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Cost of service revenue | $91,383 | $18,871 | 384.3% | $185,430 | $36,742 | 404.7% | | Cost of equipment revenue | $27,681 | $16,432 | 68.5% | $57,007 | $32,218 | 76.9% | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Gogo provides reconciliations of GAAP net income to Adjusted EBITDA and GAAP net cash provided by operating activities to Free Cash Flow, with Q2 2025 Adjusted EBITDA at $61.72 million and Free Cash Flow at $33.54 million, both showing significant year-over-year increases Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net income attributable to common stock (GAAP) | $12,807 | $839 | $24,849 | $31,329 | | EBITDA | $47,327 | $10,851 | $96,423 | $62,465 | | Stock-based compensation expense | $6,367 | $4,885 | $11,858 | $9,725 | | Acquisition and integration-related costs | $3,633 | — | $10,100 | — | | Adjusted EBITDA | $61,722 | $30,430 | $123,777 | $73,752 | Free Cash Flow Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net cash provided by operating activities (GAAP) | $36,711 | $24,949 | $69,183 | $54,606 | | Consolidated capital expenditures | $(5,937) | $(6,527) | $(12,106) | $(10,698) | | Proceeds from FCC Reimbursement Program | $(155) | $67 | $409 | $95 | | Proceeds from interest rate caps | $2,918 | $6,379 | $6,088 | $12,918 | | Free cash flow | $33,537 | $24,868 | $63,574 | $56,921 | Estimated Full-Year 2025 Free Cash Flow Guidance (in millions) | Metric | Low | High | | :------------------------------------------ | :-- | :--- | | Net cash provided by operating activities (GAAP) | $90 | $120 | | Consolidated capital expenditures | $(90) | $(90) | | Proceeds from FCC Reimbursement Program | $50 | $50 | | Proceeds from interest rate caps | $10 | $10 | | Free cash flow | $60 | $90 | [Definition of Non-GAAP Measures](index=12&type=section&id=Definition%20of%20Non-GAAP%20Measures) Gogo defines EBITDA as net income before interest, taxes, depreciation, and amortization, with Adjusted EBITDA further adjusting for stock-based compensation, acquisition and integration-related costs, and changes in fair value, while Free Cash Flow is defined as net cash from operating activities plus FCC reimbursement and interest rate cap proceeds, less capital expenditures and intangible asset acquisitions - EBITDA is defined as net income attributable to common stock before interest expense, interest income, income taxes, and depreciation and amortization expense[41](index=41&type=chunk) - Adjusted EBITDA adjusts EBITDA for stock-based compensation expense, acquisition and integration-related costs (including amortization of acquisition-related inventory step-up costs and changes in fair value of the earnout liability), and change in fair value of convertible note investment[42](index=42&type=chunk) - Free Cash Flow represents net cash provided by operating activities, plus proceeds from the FCC Reimbursement Program and interest rate caps, less purchases of property and equipment and acquisition of intangible assets[48](index=48&type=chunk) - These non-GAAP measures are used by management and provided to investors to evaluate performance by excluding items believed to have less bearing on operating performance or to highlight trends in the core business[42](index=42&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)

Financial Data and Key Metrics Changes - Gogo's total revenue in Q2 was $226 million, up 1% year-over-year and down about 2% sequentially [35] - Total service revenue increased 137% over the prior year to $194 million, but declined 2% compared to the prior quarter [36] - Adjusted EBITDA for Q2 was $61.7 million, with an adjusted EBITDA margin of 27.3% [42] Business Line Data and Key Metrics Changes - Advanced ATG aircraft online grew nearly 14% year-over-year, now comprising more than 71% of the total ATG fleet [36] - Total equipment revenue was $32.1 million, up 59% year-over-year, with Advanced Equipment shipments increasing 19% [38] - Gogo set a record for APG shipments in the quarter with 405 units, including 276 Advanced and 129 C1 units [12] Market Data and Key Metrics Changes - The business aviation sector saw a strong OEM performance, with major OEMs increasing aircraft deliveries by 11% year-over-year [18] - Demand for connectivity in business aviation and military government mobility is surging, with only 24% of global business aircraft currently having broadband connectivity [21] - The military sector is transitioning to broadband solutions, with significant opportunities for Gogo's products [29] Company Strategy and Development Direction - Gogo aims to grow its share in a highly unpenetrated market by enhancing customer relationships and delivering new products [21][22] - The company is focused on leveraging its multi-orbit, multi-band approach to provide competitive advantages in the market [32] - Gogo plans to capitalize on the increased demand for in-flight connectivity through strategic investments in new technologies and partnerships [22][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $30 million to $35 million in synergy cost savings, up from previous estimates [43] - The company anticipates solid free cash flow growth in 2026, driven by new product service revenue and reduced product program spending [34] - Management noted that the military market is expected to grow significantly, particularly with the U.S. Air Force's push for satellite communications [29] Other Important Information - Gogo's cash balance at the end of Q2 was $102.1 million, with a net leverage ratio of 3.2 times [44] - The company has $12.1 million remaining on its $50 million share repurchase authorization [46] - Gogo expects to see a decline in free cash flow in 2025, but anticipates this will be the trough year [47] Q&A Session Summary Question: Timeline for return to growth in ATG - Management indicated that while net ATG numbers are expected to be down this year, they are hopeful for a rebound with the C1 and 5G launch [56][57] Question: Competitive losses to StarLink - Management clarified that the current suspensions are not due to competitive losses but are part of normal transitions ahead of product cycles [58][59] Question: Long-term thoughts on GEO market - Management noted that while ARPA may contract slightly, the GEO business is performing well, supported by strong OEM relationships [60][61] Question: CapEx guidance change - Management explained that the change in CapEx guidance is related to the acceleration of the rip and replace program, which is fully reimbursed [80][81] Question: Delays in MilGov awards - Management acknowledged that awards are moving slower than expected but expressed optimism for increased activity in Q4 [86][90]

Company Performance - Gogo reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and up from $0.10 per share a year ago, representing an earnings surprise of +8.33% [1] - The company posted revenues of $226.04 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.74%, and significantly up from $102.06 million year-over-year [2] - Gogo has consistently surpassed consensus EPS estimates for the last four quarters [2] Stock Movement and Outlook - Gogo shares have increased approximately 89.3% since the beginning of the year, compared to the S&P 500's gain of 7.9% [3] - The future performance of Gogo's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $221.93 million, and for the current fiscal year, it is $0.44 on revenues of $904.4 million [7] Industry Context - The Wireless National industry, to which Gogo belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Cambium (CMBM), another company in the same industry, is expected to report a quarterly loss of $0.01 per share, with a year-over-year change of +96%, and revenues expected to be $58.49 million, up 27.3% from the previous year [9]

Core Insights - Gogo Inc. reported total revenue of $226.0 million for Q2 2025, representing a 121% increase year-over-year, while service revenue reached $194.0 million, up 137% year-over-year [3][6][36] - The company achieved a net income of $12.8 million, significantly higher than $0.8 million in Q2 2024, and an adjusted EBITDA of $61.7 million, up 103% year-over-year [3][6][36] - Gogo is increasing its 2025 financial guidance, anticipating total revenue at the high end of the previously guided range of $870 million to $910 million [7][8] Financial Performance - Total revenue for Q2 2025 was $226.0 million, a 121% increase compared to Q2 2024, but a 2% decrease from Q1 2025 [3][36] - Service revenue was $194.0 million, up 137% year-over-year, while equipment revenue was $32.1 million, a 59% increase compared to Q2 2024 [3][36] - Net cash provided by operating activities was $36.7 million in Q2 2025, up from $24.9 million in Q2 2024 [3][4] Operational Highlights - The number of AVANCE ATG aircraft online grew to 4,791, a 14% increase year-over-year [3][33] - Average monthly connectivity service revenue per ATG aircraft online was $3,445, relatively flat compared to Q2 2024 [3][33] - Gogo reiterated the anticipated Q4 2025 launch timing for its 5G service [6][13] Strategic Developments - The acquisition of Satcom Direct contributed $122.8 million in revenue for Q2 2025, compared to $121.9 million as a standalone company in Q2 2024 [3][6] - The company appointed General (Retired) Mike Minihan to its board of directors, effective July 2, 2025, enhancing its strategic leadership [13] - Gogo plans to provide longer-term financial targets later in 2025, with preliminary targets indicating 10% revenue growth and adjusted EBITDA margins in the mid-20s [11]

Core Viewpoint - Gogo Inc. is set to release its second quarter 2025 financial results on August 7, 2025, and will host a conference call for financial analysts on the same day [1]. Group 1: Company Overview - Gogo is the leading global provider of broadband connectivity services specifically for business aviation, military, and government markets [1]. - The company offers a unique multi-orbit, multi-band in-flight connectivity solution, designed for various aircraft types, from small jets to large heavy jets [3]. - Gogo's product portfolio includes air-to-ground systems combined with high-speed satellite networks, ensuring consistent global connectivity supported by a dedicated customer support team [4]. Group 2: Investor Relations - A webcast of the upcoming conference call will be available on the Investor Relations section of Gogo's website, along with a replay [2]. - Participants can access the conference call using a unique conference ID, which can be retrieved through a provided registration link [2].

Market Outlook - Goldman Sachs raised its year-end forecast for the S&P 500 (SPX) to 6,900, up from 6,500, highlighting three stocks for investors to consider [1] - Other major investment banks, including Bank of America, are also increasing their S&P 500 forecasts, reflecting optimism around economic resilience and stabilizing inflation [2][3] - The current SPX stands at 6,263, with a year-to-date increase of 6.49% and a 14.8% rise over the past three months [3] Earnings Projections - Goldman projects S&P 500 earnings-per-share (EPS) to grow by 7% for both this year and next, driven by strong consumer demand and margin expansion [4] - The Federal Reserve is expected to support this growth through earlier and deeper interest rate cuts [4] Stock Recommendations - Goldman highlighted three stocks to watch: Kohl's, Intellia Therapeutics, and Gogo Inc., each linked to structural trends that could drive outperformance [6] Kohl's - Kohl's is viewed as a deep value play with a turnaround catalyst, currently trading down 33.40% for the year but up 20.5% over the past 90 days [7][8] - The company is focusing on inventory discipline, cost-cutting, and enhancing its loyalty program to stabilize revenue [9] - Kohl's is expected to benefit from lower bond yields when the Federal Reserve cuts rates, making it attractive for income-minded investors [10] Intellia Therapeutics - Intellia has seen a 45.3% increase in share price over the past month, focusing on CRISPR-based therapies for rare genetic disorders [11][12] - The company is recognized for its strong intellectual property portfolio and is positioned to benefit from the growing importance of gene therapies [13] Gogo Inc. - Gogo, a leader in business aviation connectivity, has seen its stock price rise 117% over the past three months, driven by strong recurring revenues and a 5G rollout [15][16] - The company has received FAA certification for 42 aircraft types, which covers 70% of its current North American customer base [16] - Gogo's growth is supported by a favorable capital markets backdrop and a strong recurring revenue model [19]

COVID-19 Impact and Response - The COVID-19 pandemic has had an unprecedented impact on commercial aviation, with passenger traffic down approximately 95%[9] - The airline industry is expected to experience a revenue decline of $314 billion (55%) in 2020 due to the pandemic[9] - Gogo expects its Commercial Aviation (CA) sales to be down 60-70% in April due to the impact of COVID-19[12] - Prior to cost reductions, Gogo CA was losing $1 million per day[12] - Gogo has developed flexible action plans with "16 Levers" to manage costs, tied to revenue projections based on various scenarios[20] Financial Performance and Refinancing - Gogo successfully refinanced $162 million in convertible debt and $690 million in senior secured notes, pushing 80% of maturities to 2024[26] - Gogo improved its free cash flow by $163 million, from -$214 million to -$51 million[28] - Cash flow from operating activities improved by $146 million, from -$82 million to $64 million[28] - Adjusted EBITDA improved 104% to $146 million from $71 million in 2018[30] - Net loss improved to -$146 million from -$162 million in 2018[30] Strategic Initiatives - Gogo launched its Gogo 5G project, which is on target for a 2021 launch[29] - Gogo is focused on continuing its drive to positive free cash flow and taking advantage of consolidation in the IFEC and Satellite industries[35]

Core Viewpoint - The appointment of General (Ret.) Mike Minihan to Gogo Inc.'s Board of Directors is a strategic move aimed at enhancing the company's capabilities in the military and government sectors following its acquisition of Satcom Direct [2][3]. Company Overview - Gogo Inc. is a leading provider of multi-orbit, multi-band in-flight connectivity technology specifically designed for business and military/government aviation [5]. - The company offers a comprehensive product portfolio that caters to various aircraft types, ensuring best-in-class connectivity solutions [5]. Strategic Developments - The addition of General Minihan to the Board expands the Board from eight to nine directors, reflecting Gogo's commitment to strengthening its leadership in the military and government market [1][2]. - General Minihan's extensive experience in global air operations and connectivity strategy is expected to be instrumental in advancing Gogo's military and government segment [2][3]. Leadership Insights - General Minihan emphasized the importance of connectivity in mission success and expressed enthusiasm for Gogo's innovative multi-orbit, multi-band solutions that are transforming aviation and defense operations [3]. - His background includes commanding over 110,000 Airmen and managing a fleet of 1,100 aircraft, showcasing his leadership capabilities [4]. Technological Edge - Gogo's unique offering combines Air-to-Ground technology with high-speed satellite networks, providing consistent global connectivity supported by a dedicated customer support team [6]. - The company aims to set new standards for reliability, security, and innovation in in-flight aviation, enhancing customer connectivity experiences [7].

Group 1 - The article discusses the potential revenue growth for Gogo Inc. due to new 5G technologies expected in 2025 and 2026, indicating that the company is currently undervalued [1] - The author has a background in equity research and investment banking, focusing on small and medium-cap companies across various regions including Europe, the United States, and South America [1] - The investment strategy includes targeting mature industries such as mining, oil and gas, and real estate, with a preference for M&A deals, deep value investments, and dividend investing [1] Group 2 - The author aims for an internal rate of return of approximately 5%-7% on investments [1] - The article emphasizes the importance of reader feedback on stock ownership, highlighting the author's intent to share personal opinions rather than provide financial advice [1] - There is a disclaimer regarding the potential inaccuracies in future financial projections, including EPS, net revenue, and free cash flow [1]

Core Viewpoint - Gogo has received Supplemental Type Certification (STC) for its Gogo C1 line replaceable unit (LRU), which will support 42 aircraft models and ensure compatibility with its upcoming LTE network upgrade, enhancing inflight connectivity for legacy air-to-ground (ATG) customers [1][2][5]. Group 1: Product and Certification Details - The Gogo C1 LRU has been certified for 42 aircraft models, covering 70% of North American Gogo legacy ATG customer aircraft [1][2]. - The certification allows seamless transition for customers using legacy ATG systems to the upgraded Gogo Biz North American 850MHz Licensed LTE network, set to launch in May 2026 [2][3]. - The C1 features a dual-technology aircard that connects to the existing network and will automatically switch to the new LTE network when available [3]. Group 2: Installation and Incentives - Gogo is offering a $35,000 installation incentive for customers who complete the C1 installation before December 31, 2025 [4]. - The installation process is designed to be straightforward, requiring minimal downtime due to the C1's form-fit replacement design [3][4]. Group 3: Strategic Partnerships and Future Plans - Metrea Aerospace Design (MASD) collaborated with Gogo to generate the AML STC, enhancing the certification process for various aircraft models [2][8]. - Gogo is working with its dealer network to ensure a streamlined installation process for customers transitioning to the Gogo AVANCE products, which offer higher connection speeds and additional features [4][6].