Core Insights - The article outlines the background and experience of a long-term stock investor and registered investment advisor who founded Middle Coast Investing in 2023, managing accounts primarily for U.S. clients and one Europe-focused account [1] Group 1: Company Overview - Middle Coast Investing is an investment advisory firm established in 2023, focusing on managing investment accounts for family and friends [1] - The firm aims to provide a unique perspective on the markets through a combination of prop trading viewpoints and fundamental research [1] Group 2: Industry Engagement - The investor has a history of working with Seeking Alpha from 2012 to 2020 in various roles, including Director of the Seeking Alpha Marketplace and managing editor of Seeking Alpha PRO [1] - The investor also served as VP of Content at Investing.com from 2021 to 2023, where they significantly increased page views and search reach for unique content [1] Group 3: Content Creation and Outreach - The investor founded Shortman Studios in 2020, which produces the investing podcast "The Razor's Edge," featuring interviews with industry leaders and a focus on deep-dive fundamental research [1] - The podcast has gained thousands of listeners globally, indicating a strong engagement with the investing community [1]

Core Insights - Gogo has received EASA approval for the Gogo Galileo HDX Antenna Supplemental Type Certificate (STC), enabling retrofit installations for Bombardier Global 5000 and Global 6000 series aircraft [1][2] - The STC was developed in collaboration with ACC Columbia Jet Service and covers multiple Bombardier Global series aircraft [2] - Skyside, an Austria-based charter company, has completed the first installation of the system, providing passengers with high-speed connectivity via the Eutelsat OneWeb LEO satellite network [3] Company Developments - QCM Design's CEO expressed pride in the STC confirmation and highlighted the technology's potential to enhance connectivity for Global series aircraft owners [4] - The Gogo AVANCE SCS platform was modified on Skyside's aircraft in summer 2024, and the addition of the Gogo Galileo HDX antenna will improve the in-flight digital experience [4] - Gogo's offerings include a combination of Air-to-Ground systems and high-speed satellite networks, ensuring consistent global connectivity [6] Market Position - Gogo aims to set new standards for reliability, security, and innovation in in-flight connectivity, catering to business and military/government aviation [5][6] - The company is anticipating further regulatory approvals from the FAA and Transport Canada following the EASA approval [4] - Customers can pre-order the installation of the Gogo Galileo HDX system for their Bombardier Global business jets from ACC Columbia at their airport facilities [4]

Core Viewpoint - Gogo has received FAA supplemental type certification for the Gogo Galileo HDX terminal for the Dassault Falcon 2000 aircraft family, enabling high-speed internet connectivity for owners and operators of these jets [1][2]. Group 1: Product and Certification - The Gogo Galileo HDX terminal is the first HDX STC for a Dassault Falcon business jet, providing versatile connectivity and 24/7 global customer support [2][3]. - The STC allows Falcon 2000 jet owners to access high-speed internet for various applications during all flight phases, supported by Eutelsat OneWeb's low-earth orbit satellite constellation [2][3]. Group 2: Market Position and Benefits - The Falcon 2000 is a popular choice in the super mid-size market, and the Gogo Galileo HDX terminal enhances the passenger experience and supports efficient flight operations [3]. - The installation of the Gogo Galileo HDX terminal is expected to help retain asset value for aircraft owners [3]. Group 3: Installation and Future Developments - The retrofit installation requires fitting two line replaceable units, the HDX antenna and the AVANCE platform, allowing for future upgrade pathways [4]. - Gogo and Dassault anticipate that an STC for the Gogo Galileo HDX will be approved for the Dassault Falcon 7X type before the end of the year [4]. Group 4: Company Overview - Gogo is the only multi-orbit, multi-band in-flight connectivity provider, offering technology specifically designed for business and military/government aviation [5][6]. - The company aims to deliver consistent global connectivity through a combination of Air-to-Ground systems and high-speed satellite networks, supported by a dedicated customer support team [6][7].

Company Overview - National Fidelity Financial (NFF) is a leader in debt resolution, founded in 2009, headquartered in Melbourne, Florida, with a mission to help individuals overcome overwhelming debt through tailored financial solutions [3][7] - NFF offers services including debt settlement and resolution, personal loans, and business loans, with a commitment to no up-front fees [3][7] Leadership and Expertise - Jim Jensen has joined NFF as an equity partner, bringing significant expertise from his previous role as founder of Satcom Direct, a provider of in-flight connectivity solutions [1][2] - Jensen's technical background in product development, network infrastructure, and data security aligns with NFF's strategy to enhance its financial technology capabilities [4] Growth Strategy - NFF plans to hire approximately 120 new customer service representatives, negotiators, and managers over the next 18 months to improve service delivery [5] - The company aims to provide seamless service from 9 AM to 9 PM, seven days a week, across all US time zones [5] Future Outlook - The partnership with Jim Jensen is viewed as a significant opportunity for NFF to accelerate growth, expand reach, and create job opportunities that positively impact families [6] - Jensen expressed confidence in NFF's potential for growth and its role in helping clients achieve financial stability [6]

PART I. FINANCIAL INFORMATION This section covers Gogo Inc.'s unaudited condensed consolidated financial statements, management's discussion, market risk, and controls [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Gogo Inc.'s unaudited condensed consolidated financial statements and detailed notes [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides Gogo Inc.'s financial position at June 30, 2025, and December 31, 2024 Unaudited Condensed Consolidated Balance Sheets | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | 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 | | Total liabilities | $1,160,180 | $1,159,907 | | Total stockholders' equity | $102,790 | $69,324 | - Cash and cash equivalents significantly increased from **$41.8 million** at December 31, 2024, to **$102.1 million** at June 30, 2025[9](index=9&type=chunk) - Total stockholders' equity increased from **$69.3 million** at December 31, 2024, to **$102.8 million** at June 30, 2025[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section details Gogo Inc.'s financial performance, including revenue, operating income, and net income Unaudited Condensed Consolidated Statements of Operations | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | 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 | | Basic EPS | $0.10 | $0.01 | $0.19 | $0.24 | | Diluted EPS | $0.09 | $0.01 | $0.18 | $0.24 | - Total revenue for the three months ended June 30, 2025, increased by **121.5%** YoY to **$226.0 million**, and for the six months, it increased by **121.1%** YoY to **$456.3 million**, primarily driven by the Satcom Direct acquisition[11](index=11&type=chunk) - Net income for the three months ended June 30, 2025, surged to **$12.8 million** from **$0.8 million** in the prior-year period, while for the six months, it decreased to **$24.8 million** from **$31.3 million**[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents Gogo Inc.'s comprehensive income and loss for the reported periods Unaudited Condensed Consolidated Statements of Comprehensive Income | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $12,807 | $839 | $24,849 | $31,329 | | Comprehensive income (loss) | $11,488 | $(2,136) | $21,509 | $27,524 | - Comprehensive income for the three months ended June 30, 2025, was **$11.5 million**, a significant improvement from a loss of **$2.1 million** in the prior-year period[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines Gogo Inc.'s cash flows from operating, investing, and financing activities Unaudited Condensed Consolidated Statements of Cash Flows | Metric (in thousands) | 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 | - Net cash provided by operating activities increased to **$69.2 million** for the six months ended June 30, 2025, from **$54.6 million** in the prior-year period[15](index=15&type=chunk) - Net cash used in investing activities increased to **$7.2 million** for the six months ended June 30, 2025, from **$2.7 million** in the prior-year period, primarily due to higher capital expenditures and acquisition-related payments[15](index=15&type=chunk)[195](index=195&type=chunk) - Net cash used in financing activities significantly decreased to **$2.3 million** for the six months ended June 30, 2025, from **$29.5 million** in the prior-year period, mainly due to no share repurchases in the current period[15](index=15&type=chunk)[197](index=197&type=chunk) [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in Gogo Inc.'s stockholders' equity, driven by net income and stock-based compensation Unaudited Condensed Consolidated Statements of Stockholders' Equity | Metric (in thousands) | Balance at January 1, 2025 | Balance at June 30, 2025 | | :-------------------- | :------------------------- | :----------------------- | | Total Stockholders' Equity | $69,324 | $102,790 | | Net income | $24,849 | - | | Stock-based compensation expense | $11,858 | - | | Issuance of common stock upon exercise of stock options | $3,660 | - | | Tax withholding related to vesting of restricted stock units | $(3,977) | - | - Total stockholders' equity increased from **$69.3 million** at January 1, 2025, to **$102.8 million** at June 30, 2025, driven by net income and stock-based compensation[18](index=18&type=chunk) - The company issued **1,299,520** shares upon exercise of stock options and **1,051,548** shares upon vesting of restricted stock units during the six months ended June 30, 2025[18](index=18&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the financial statements [1. Basis of Presentation](index=9&type=section&id=Note%201.%20Basis%20of%20Presentation) This note describes Gogo Inc.'s business, reporting segments, and financial statement preparation basis - Gogo Inc. is a multi-orbit, multi-band in-flight connectivity provider for business and military/government aviation, offering ATG technology and satellite access[20](index=20&type=chunk) - Following the acquisition of Satcom Direct on December 3, 2024, the Company now operates with two reportable segments: Gogo BA (legacy business aviation) and Satcom Direct (global satellite-based communication solutions)[21](index=21&type=chunk) - The Company is evaluating the impact of ASU No. **2024-03**, Disaggregation of Income Statement Expenses, effective for fiscal years beginning after December 15, 2026[27](index=27&type=chunk) [2. Acquisition of Satcom Direct](index=9&type=section&id=Note%202.%20Acquisition%20of%20Satcom%20Direct) This note details the Satcom Direct acquisition, including consideration, goodwill, and pro-forma financials - Gogo Inc. completed the acquisition of Satcom Direct on December 3, 2024, for an aggregate consideration including **$375 million** cash, **5 million

[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].