For more information about Hughes, visit the website. For more information about Gogo, visit the website [gogoair.com] Hughes and Gogo Partnership continues to transform in-flight connectivity with the on-time arrival of HDX and FDX ESAs , /PRNewswire/ -- Hughes Network Systems, LLC, an EchoStar company (Nasdaq: SATS), together with Gogo (NASDAQ: GOGO) is celebrating key milestones in the partnership to transform the in-flight connectivity experience in the business jet market with the on-time delivery of ...

Broomfield, CO, Oct. 13, 2025 (GLOBE NEWSWIRE) -- Gogo (NASDAQ: GOGO) is attending NBAA – BACE 2025, booth 1533, with momentum building in all sectors of the multi-orbit, multi-band business aviation connectivity business. The first Gogo Galileo FDX supplemental type certificates (STC) for the larger of the two electronically steered antennas (ESA) are now available. Ahead of NBAA, ALOFT AeroArchitects confirmed Federal Aviation Administration (FAA) approval for Boeing BBJ737NG aircraft with the first FDX a ...

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]