Financial Data and Key Metrics Changes - Gogo's total revenue for Q1 2025 was $230.3 million, representing a 21% year-over-year increase and a 67% sequential increase [30] - Total service revenue reached $198.6 million, up 43% year-over-year and 67% sequentially [31] - Adjusted EBITDA for Q1 was $62.1 million, with an adjusted EBITDA margin of 27% [37] Business Line Data and Key Metrics Changes - The number of GEO aircraft online grew to 1,280, up 16% year-over-year and 31 units sequentially [32] - Advanced AOL reached 4,716, up 15% from the prior year, comprising 68% of the total ATG fleet, up from 58% in the prior year quarter [31] - Advanced equipment units shipped increased by 19% sequentially to 241 [33] Market Data and Key Metrics Changes - The business aviation sector shows significant unmet demand, with only about a third of the world's business jets having connectivity [14] - The military government mobility market is expected to grow as the Department of Defense increases spending on LEO satellite services from $900 million to $13 billion over the next ten years [15] Company Strategy and Development Direction - Gogo aims to grow shareholder value by driving growth in high-margin recurring revenue customer relationships in business aviation and military government sectors [17] - The company is focused on integrating Gogo and Satcom Direct to enhance market positioning and product offerings [6] - Gogo's strategy includes leveraging its global sales and service network to expand its addressable market by 60% [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience despite macroeconomic uncertainties, noting a diverse international customer base [49] - The company anticipates strong free cash flows in 2026 driven by higher-margin service revenue and realized cost synergies [13] - Management highlighted the positive impact of the Satcom Direct acquisition on operational execution and financial discipline [29] Other Important Information - Gogo has achieved over 85% of targeted synergy savings, with expectations for full realization by 2026 [12] - The company received a $334 million grant from the FCC to support the upgrade of its ATG network to LTE [24] Q&A Session Summary Question: Can you size the tariff impact in terms of dollar amount? - The tariff impact is around $5 million, split between EBITDA and working capital [48] Question: What proportion of your customer base is economically sensitive? - The company is not seeing any significant impact from economic sensitivity, with a diverse international customer base [49] Question: Can you break down the growth rate between GEO broadband and other segments? - The majority of growth was related to GEO broadband, with a significant portion also coming from military government [51] Question: What are the trends in the MilGov business given the changing dynamics? - There is increasing demand in overseas markets, with a focus on sovereign-based networks and a tech refresh in the DOD [88]

Core Insights - Gogo has successfully demonstrated the performance of its Gogo Plane Simple® Electronically Steered Antenna (ESA) through extensive flight tests, indicating strong commercial potential for the technology [1][4][7] Group 1: Flight Testing and Performance - The ESA underwent rigorous testing in collaboration with MAG Aerospace, showcasing its ability to maintain continuous operations during various flight maneuvers, including taxi, take-off, landing, and complex patterns [1][2] - The antenna maintained stable connections with the satellite network, supporting multi-device connectivity for applications such as streaming, video conferencing, and corporate VPN access [2][4] Group 2: Technical Specifications and Development - The ESA is being developed in partnership with Gilat Satellite Networks Ltd, aimed at meeting the needs of VVIP and government operators by leveraging the Eutelsat OneWeb constellation [2][4] - The modular design of the ESA allows for easy upgrades to new antenna technologies without costly recertification, making it compatible with various aircraft types [3][4] Group 3: Future Prospects and Market Introduction - The successful flight tests have paved the way for the ESA's market introduction, with manufacturing of pre-production hardware already underway to support FAA testing and network-type approval [4][5] - Gogo's CEO highlighted the antenna's multi-purpose capabilities and its contribution to the company's expanding portfolio of connectivity solutions [4][7]