Gogo(GOGO) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $223.6 million, representing a 122% increase year-over-year, but a 1% decrease compared to Q2 2025[4] - Service revenue reached $190.0 million, up 132% year-over-year, while equipment revenue was $33.6 million, an 80% increase year-over-year[4] - Adjusted EBITDA for the quarter was $56.2 million, a 61% increase compared to Q3 2024, but a 9% decrease from Q2 2025[6] - Net loss for Q3 2025 was $1.9 million, which included a $15 million pre-tax acquisition-related earn-out accrual[4] - Total revenue for Q3 2025 reached $223,585,000, a significant increase from $100,529,000 in Q3 2024, representing a growth of 122%[22] - Service revenue for the nine months ended September 30, 2025, was $582,533,000, up from $245,459,000 in the same period of 2024, marking a 137% increase[22] - Business aviation service revenue accounted for $162,622,000 in Q3 2025, compared to $81,857,000 in Q3 2024, reflecting a growth of 99%[28] - Operating income for the nine months ended September 30, 2025, was $99,891,000, compared to $75,426,000 in the same period of 2024, an increase of 32%[22] - The company reported a net loss of $1,930,000 for Q3 2025, compared to a net income of $10,630,000 in Q3 2024[22] - Adjusted EBITDA for the three months was $56.2 million, up from $34.8 million in the same period of 2024[36] - Free cash flow for the three months was $30.6 million, compared to $24.6 million in the same period of 2024[36] Cash Flow and Assets - Free Cash Flow for Q3 2025 was $30.6 million, up from $24.6 million in the prior-year period[6] - Cash and cash equivalents at the end of Q3 2025 were $133,572,000, up from $41,765,000 at the end of Q4 2024[24] - Total current assets increased to $423,608,000 as of September 30, 2025, compared to $323,093,000 at the end of Q4 2024, a growth of 31%[24] - The company expects full-year free cash flow to range between $60 million and $90 million for FY 2025[37] Product Development and Launches - Year-to-date shipments of Gogo's new Low Earth Orbit HDX antenna exceeded 200 as of November 4, 2025[4] - Gogo completed 19 HDX Supplemental Type Certificates out of a total of 40 under contract, indicating progress in product development[6] - The company confirmed a year-end 2025 launch for its new high-speed 5G Air-to-Ground network[4] Aircraft and Connectivity - Total AVANCE ATG aircraft online grew to 4,890, a 12% increase compared to September 30, 2024[6] - The number of ATG aircraft online increased to 6,529, compared to 7,016 in the previous year, with AVANCE aircraft online at 4,890[30] - Average monthly connectivity service revenue per ATG aircraft was $3,407, slightly down from $3,497 in the previous year[30] - The number of ATG units sold in the three months was 437, compared to 214 in the same period of 2024[30] Costs and Liabilities - Cost of service revenue increased significantly to $91.6 million, a 380.8% increase from $19.1 million year-over-year[33] - The total liabilities as of September 30, 2025, were $1,188,146,000, compared to $1,159,907,000 at the end of Q4 2024[24] - The company incurred interest expense of $50,650,000 for the nine months ended September 30, 2025, compared to $26,193,000 in the same period of 2024, an increase of 93%[22]