Core Insights - Hughes Network Systems and Gogo are celebrating the successful on-time delivery of HDX and FDX electronically steerable antenna (ESA) terminals, marking a significant milestone in enhancing in-flight connectivity for business jets [1][4] - The partnership aims to leverage the Eutelsat OneWeb Low Earth Orbit (LEO) satellite network to provide high-throughput, low-latency connectivity across various aircraft types [2][3] - Hughes has initiated shipments of Gogo FDX ESA terminals, designed for larger airframes and higher data demands, while also developing a Commercial Aviation ESA for commercial airline operations [3][4] Company Overview - Hughes Network Systems, an EchoStar company, specializes in broadband equipment and services, providing managed services and end-to-end network operations globally [6][7] - Gogo is a leading provider of in-flight connectivity services, catering to a wide range of business aviation and government markets, with products installed on thousands of aircraft [5][6] Technological Advancements - The HDX and FDX ESAs are engineered for seamless integration across various aircraft platforms, optimizing size, weight, and power, and featuring a design with no moving parts for easy installation and maintenance [2][4] - Hughes has validated its technology through flight tests, demonstrating extensive end-to-end connectivity capabilities for the aviation sector [4]

Core Insights - Gogo is showcasing its advancements in multi-orbit, multi-band business aviation connectivity at NBAA – BACE 2025, highlighting the availability of the first Gogo Galileo FDX supplemental type certificates (STC) for electronically steered antennas [1][4] - The company has completed multiple STCs for various aircraft types, enabling high-speed broadband connections for over 9,000 jets globally [3][4] - Gogo is also progressing with its Gogo 5G air-to-ground technology, with testing set to transition to on-wing trials soon [6] Gogo Galileo FDX Developments - The first Gogo Galileo FDX STC for Boeing BBJ737NG aircraft has been approved by the FAA, with the first antenna already in operation [1] - StandardAero has become the first dealer to complete STCs for Bombardier Challenger 600 series aircraft, further expanding Gogo's STC portfolio [2] - A total of 19 STCs for the Gogo Galileo HDX terminal are now complete, with 21 more in development, marking an increase from 38 at the end of Q2 2025 [4] Product and Technology Advancements - More than 150 Gogo Galileo HDX antennas have been shipped, more than double the 77 reported at the end of Q2 2025, showcasing the growing demand for Gogo's connectivity solutions [5] - The Gogo Galileo HDX antennas connect to the Eutelsat OneWeb low earth orbit constellation, providing lightweight, low-power, and weather-tight designs for easier installation [5] - Gogo is pre-provisioning aircraft for its new MB13 Antenna and AVANCE LX5 platform, with over 400 owners already pre-provisioned [6] Customer Engagement and Support - Gogo is inviting existing and potential customers to experience the capabilities of the Gogo Galileo FDX during demo flights at NBAA [4] - The company emphasizes its commitment to customer service with 24/7/365 support and a comprehensive training curriculum to optimize system use [8] - Gogo is offering rebates and incentives for customers to upgrade from legacy ATG systems ahead of the network cutover in May 2026 [7] Market Position and Strategy - Gogo is positioned as the only multi-orbit, multi-band in-flight connectivity provider tailored for business and military/government aviation [10] - The company integrates Air-to-Ground systems with high-speed satellite networks to deliver consistent global connectivity [11] - Gogo aims to set new standards for reliability, security, and innovation in the in-flight aviation sector [12]

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 Inc. reported total revenue of $230.3 million for Q1 2025, representing a 121% increase year-over-year and a 67% increase compared to Q4 2024 [3][34] - Service revenue reached $198.6 million, up 143% year-over-year, while equipment revenue was $31.7 million, a 40% increase year-over-year [3][34] - The company achieved PMA approval for its larger LEO antenna, FDX, ahead of schedule, which is expected to enhance service revenue starting in Q1 2026 [5] Financial Performance - Net income for Q1 2025 was $12.0 million, compared to $30.5 million in Q1 2024 and a net loss of $28.2 million in Q4 2024 [3][22] - Adjusted EBITDA for Q1 2025 was $62.1 million, reflecting a 43% increase year-over-year and an 83% increase compared to Q4 2024 [3][37] - Free Cash Flow for Q1 2025 was $30.0 million, down from $32.1 million in the prior-year period but up from a negative $39.6 million in Q4 2024 [9][37] Operational Metrics - Total ATG AVANCE aircraft online grew to 4,716, a 15% increase year-over-year [3][31] - Average Monthly Connectivity Service Revenue per ATG aircraft online was $3,451, remaining flat compared to Q1 2024 [3][31] - The company shipped 59 HDX antennas year-to-date, with 38 HDX Supplemental Type Certificates under contract, targeting a total addressable market of nearly 32,000 aircraft [9][9] Strategic Outlook - Gogo reiterated its 2025 financial guidance, projecting total revenue between $870 million and $910 million and adjusted EBITDA between $200 million and $220 million [6][7] - The company anticipates Free Cash Flow in the range of $60 million to $90 million for 2025, with capital expenditures of approximately $60 million [7][39] - 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 [8]

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]

Financial Data and Key Metrics Changes - Gogo's total revenue for Q4 2024 was $137.8 million, up 41% year-over-year and 37% sequentially [60] - Total service revenue reached $119 million, reflecting a 47% increase over the prior year and a 45% increase compared to the prior quarter [60] - Adjusted EBITDA for Q4 was $34 million, a decrease of 3% compared to Q4 2023 and 2% sequentially [70] - The company reported a net loss of $28.2 million compared to a net income of $14.2 million in Q4 2023 [71] Business Line Data and Key Metrics Changes - Gogo's ATG aircraft online totaled 7,059, with 43 incremental units added in Q4 [61] - Advanced aircraft online grew to 4,608, a 16% year-over-year increase, now comprising 65% of the total ATG fleet [61] - Record ARPU for ATG reached $3,500, representing a 3% year-over-year increase [62] Market Data and Key Metrics Changes - Global flight departures were up 33% in February 2025 compared to February 2019, indicating a post-COVID surge in flight demand [13] - Demand for connectivity in business aviation is surging, with only 36% of the world's business jets having broadband in-flight connectivity [11] Company Strategy and Development Direction - Gogo aims to grow its addressable market by 60% through new satellite technologies and a 5G ATG network [16] - The company is focused on becoming the only viable LEO alternative to Starlink, emphasizing its multi-orbit capabilities [22] - Gogo's strategy includes solidifying its position as a trusted provider in aviation connectivity by offering unique multi-band and multi-orbit capabilities [33] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be a trough year for free cash flow, with an inflection point anticipated in 2026 [81] - The combination with Satcom Direct is expected to enhance Gogo's growth platform, particularly in the MilGov market [82] - Management highlighted the importance of regulatory compliance and differentiated services as competitive advantages [97] Other Important Information - Gogo received $334 million in grants from the FCC to support the upgrade of its ATG network [44] - The company achieved $18 million of run rate synergy at the close of the Satcom Direct acquisition and expects to exceed the targeted range of $25 million to $30 million in synergies [72] Q&A Session Summary Question: How does Gogo view the competitive landscape? - Gogo believes it is in a strong position due to its multi-orbit capability, which is essential for business aviation and military government customers [91][92] Question: What are the implications of international pushback against Starlink? - Gogo sees an opportunity in the shift towards sovereign-based communication networks, which aligns with its regulatory compliance and differentiated services [97] Question: When will long-term financial targets be restored? - Gogo is working on long-term modeling and plans to provide updates in the next 4 to 6 weeks [104] Question: What is the trend in ARPU for Satcom Direct? - Gogo did not provide specific ARPU figures for Satcom Direct but indicated that there are multiple revenue streams contributing to overall revenue [117]

Financial Data and Key Metrics Changes - Gogo's total revenue for Q4 2024 was $137.8 million, representing a 41% year-over-year increase and a 37% sequential increase [40] - Total service revenue reached $119 million, up 47% year-over-year and 45% sequentially, primarily due to the addition of Satcom Direct [41] - Gogo reported a net loss of $28.2 million compared to a net income of $14.2 million in Q4 2023, largely due to $46.8 million in acquisition-related expenses [49] Business Line Data and Key Metrics Changes - The number of advanced aircraft online grew to 4,608, a 16% year-over-year increase, comprising 65% of the total ATG fleet [41] - Gogo achieved record ARPU of $3,500, reflecting a 3% year-over-year increase [42] - Equipment revenue for Q4 was $19 million, up 12% year-over-year, largely due to December results from Satcom Direct [43] Market Data and Key Metrics Changes - Global flight departures increased by 33% in February 2025 compared to February 2019, indicating a post-COVID surge in flight demand [9] - Demand for connectivity in business aviation is surging, with only 36% of the world's business jets having broadband in-flight connectivity [9] Company Strategy and Development Direction - Gogo aims to enhance its connectivity services through a multi-year investment program, focusing on new satellite technologies and a 5G ATG network [11] - The company plans to grow its addressable market by 60% and extend recurring revenue customer lifetimes through its Avance platform [11] - Gogo's strategy includes solidifying its position as a trusted provider in aviation connectivity by offering multi-band and multi-orbit capabilities [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive landscape, highlighting Gogo's unique position as the only competitor to Starlink with a LEO solution designed for the business aviation market [15] - The company expects 2026 to be a significant inflection point for free cash flow, driven by higher-margin service revenue from new products [14] - Management acknowledged that while the delay in HDX PMA will impact financials in 2025, strong revenue growth is anticipated in subsequent years [35] Other Important Information - Gogo received $334 million in grants from the FCC to support the upgrade of its network, which is expected to enhance free cash flow projections for 2026 [31] - The company achieved $18 million in run-rate synergies at the close of the Satcom Direct acquisition and expects to exceed the targeted range of $25 million to $30 million in synergies within two years [50] Q&A Session Summary Question: How does Gogo view the competitive landscape? - Management believes Gogo is in a strong position due to its multi-orbit capability, which is essential for business aviation customers flying globally [63][65] Question: What are the implications of the brewing pushback against Starlink? - Management sees an opportunity for Gogo as sovereign nations seek regulatory compliant communication networks, which Gogo can provide [66] Question: When can investors expect long-term financial targets? - Management is considering whether to provide updates during the Q1 call or at an Investor Day, with a timeline of four to six weeks for more information [72] Question: What is Gogo's perspective on direct-to-device satellite connectivity? - Management emphasizes that Gogo focuses on true broadband capabilities for aircraft, which is more advanced than simple voice connectivity [74][78]

Core Insights - Gogo has received PMA from the FAA for its Gogo Galileo HDX antenna, enabling full-scale production and sales [1] - The HDX antenna is designed for business aviation, providing high-speed broadband connectivity of up to 60Mbps [2] - The HDX antenna leverages Eutelsat OneWeb LEO satellite constellation for low-latency connectivity, suitable for various aircraft types [3] - The PMA approval signifies a transformative change in connectivity options for both existing and new customers, addressing the demand for high-speed connectivity in smaller cabins [4] Group 1 - Gogo has received PMA from the FAA for its Gogo Galileo HDX antenna, allowing for full-scale production and sales [1] - The HDX antenna is designed for ease of installation on aircraft fuselage and connects to the Gogo AVANCE system [2] - The HDX antenna supports high-speed broadband distribution of up to 60Mbps throughout the cabin [2] Group 2 - The HDX antenna utilizes the Eutelsat OneWeb LEO satellite constellation for low-latency connectivity, enhancing the digital experience at altitude [3] - The HDX can be installed on new aircraft or retrofitted for existing ones, benefiting a wide range of aircraft types [3] - The PMA approval opens new connectivity opportunities for operators and owners of various aircraft sizes, filling a market gap for smaller cabins [4]