Gogo(GOGO) - 2025 Q2 - Quarterly Report

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 This section presents Gogo Inc.'s unaudited condensed consolidated financial statements and detailed notes Unaudited Condensed Consolidated Balance Sheets 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] - Total stockholders' equity increased from $69.3 million at December 31, 2024, to $102.8 million at June 30, 2025[9] Unaudited Condensed Consolidated Statements of Operations 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] - 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] Unaudited Condensed Consolidated Statements of Comprehensive Income 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] Unaudited Condensed Consolidated Statements of Cash Flows 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] - 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][195] - 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][197] Unaudited Condensed Consolidated Statements of Stockholders' Equity 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] - 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] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the financial statements 1. Basis of Presentation 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] - 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] - 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] 2. Acquisition of Satcom Direct 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