Gogo (GOGO) Q1 2026 earnings summary

Executive summary

• Q1 2026 total revenue was $226.3 million, down 1.7–2% year-over-year and sequentially, with service revenue declining 5–5.5% and equipment revenue rising 21.7–22% due to record ATG and Gogo Galileo sales.

• Net income reached $13.1 million, up from $12.0 million in Q1 2025 and a loss of $10.0 million in Q4 2025.

• Adjusted EBITDA was $53.3 million, down 14% year-over-year but up 41% sequentially.

• Achieved significant fleet wins with VistaJet, Wheels Up, and NetJets, supporting a robust installation pipeline and international expansion.

• Military and government segment saw strong growth, with new contracts and increased demand due to geopolitical factors.

Financial highlights

• Service revenue was $187.7 million, down 5–5.5% year-over-year; equipment revenue rose to $38.6 million, up 21.7–22%.

• Business aviation service revenue was $154.4 million, military/government $33.4 million, with military/government up 14% year-over-year.

• Free cash flow was negative $19.2 million, impacted by bonus payouts, inventory ramp, and lower operating cash flow.

• Cash and cash equivalents stood at $103.5 million as of March 31, 2026.

• Cost of service revenue rose 4.5% to $98.3 million; cost of equipment revenue rose 19.3% to $35.0 million.

Outlook and guidance

• 2026 revenue guidance reiterated at $905–$945 million, with ~80% from service and ~20% from equipment.

• Adjusted EBITDA expected at $198–$218 million; free cash flow projected at $90–$110 million, including $30 million for strategic investments.

• Guidance implies 12% YoY growth at midpoint, driven by new product ramp and cost synergies.

• Capital expenditures expected to decrease as LTE network build nears completion; net capex projected at $20 million, assuming $45 million in FCC reimbursements.

• Liquidity is expected to be sufficient for at least the next twelve months.