Gogo (GOGO) investor relations material

Executive summary

• Total Q2 2026 revenue was $222.8M, down 1–2% year-over-year and sequentially, with service revenue at $191.3M and equipment revenue at $31.5M; military/government service revenue surged 40% year-over-year and 20% sequentially to $39.9M.

• Net loss was $2M, compared to $12.8M profit in Q2 2025 and $13.1M in Q1 2026; Adjusted EBITDA was $53.7M, down 13% year-over-year but up 1% sequentially; free cash flow was $21.6M.

• Transformation continues from domestic air-to-ground provider to global broadband supplier, with strong momentum in next-gen technology and record military/government business performance.

• Subscription-based service revenue comprised ~84% of revised 2026 revenue guidance, supporting stability and resilience.

Financial highlights

• Service revenue was $191.3M, down 1% year-over-year but up 2% sequentially; equipment revenue was $31.5M, down 2% year-over-year and 18% sequentially.

• Adjusted EBITDA was $53.7M; free cash flow was $21.6M.

• Gross margin for Q2 2026 was $93.6M, down from $107.0M in Q2 2025; operating income was $29.7M, down from $36.0M.

• Cash and cash equivalents at June 30, 2026, were $63.1M, down from $102.1M a year earlier.

Outlook and guidance

• Full-year 2026 revenue guidance revised to $870M–$895M, with ~84% from service and ~16% from equipment.

• Adjusted EBITDA guidance set at $175M–$185M, reflecting higher litigation expense and product mix.

• Free cash flow expected at $65M–$85M for the year; net capital expenditures projected at $20M, assuming $45M in FCC reimbursement.