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    GOGO
    Earnings call· Jun 2026(Q2 FY26)

    Gogo Q2 FY26 earnings call GOGO

    Aug 6, 2026 Source

    Executive summary

    Gogo Q2 FY26 — Strong Galileo and Military/Government Momentum Amidst ATG Transition

    Gogo continues its transformation into a global multi-network connectivity platform, driven by strong progress in its Galileo LEO service and record performance in the military and government sector. While navigating the expected decline in legacy ATG revenue and facing some equipment shipment delays, the company is focused on disciplined capital allocation, with debt reduction remaining its highest priority.

    Highlights

    5

    • Military and Government service revenue increased by 40% year-over-year and 20% sequentially.

    • LEO aircraft online increased 66% sequentially to 184 aircraft.

    • GoGo 5G unit shipments increased 165% from Q1 to 138 units.

    • Net cash provided by operating activities totaled $32.3 million, up from negative $7.2 million in Q1.

    • Free cash flow was $21.6 million, up from negative $19.2 million in Q1.

    Concerns

    5

    • Total revenue for the quarter was $222.8 million, down 1% compared to Q2 2025 and 2% sequentially.

    • Adjusted EBITDA was $53.7 million, down 13% compared to Q2 2025.

    • Net leverage ratio increased to 3.8 times due to SATCOM direct earn-out payment.

    • Full-year 2026 total revenue guidance revised down to $870M-$895M from prior expectations.

    • Full-year 2026 Adjusted EBITDA guidance revised down to $175M-$185M, including $22M of litigation expense.

    Guidance & targets

    9
    CategoryTargetConfidence
    Total Revenue
    $870M to $895M
    high materiality
    High
    Service Revenue as % of Total Revenue
    approximately 84%
    medium materiality
    High
    Equipment Revenue as % of Total Revenue
    approximately 16%
    medium materiality
    High
    Adjusted EBITDA
    $175M to $185M
    high materiality
    High
    Net Capital Expenditures
    approximately $20M
    medium materiality
    High
    Free Cash Flow
    $65M to $85M
    high materiality
    High
    Strategic Investments
    $30M
    medium materiality
    High
    Galileo Units Online
    mid-500s
    medium materiality
    High
    FCC Reimbursement Program Completion
    on schedule
    medium materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Military and Government
    Strong demand and increased utilization of existing services, driven by ongoing conflict in the Middle East. Exploring alternative uses for ATG and satellite networks in support of unmanned aerial vehicles (UAVs).
    		—40%20%—

    Operational metrics

    22
    Total Revenue
    $222.8Mdown 1% YoY, down 2% QoQ
    Q2 FY26

    GoGo's total revenue for the quarter was $222.8 million, down 1% compared to Q2 2025 and 2% compared to Q1 2026.

    Service Revenue
    $191.3Mdown 1% YoY, up 2% QoQ
    Q2 FY26

    Service revenue totaled $191.3 million, down 1% year-over-year and up 2% sequentially.

    Equipment Revenue
    $31.5Mdown 2% YoY, down 18% QoQ
    Q2 FY26

    Equipment revenue totaled $31.5 million, down 2% year-over-year and 18% sequentially due to the decline in advance in C1 shipments.

    Galileo LEO Terminal Shipments
    108up 17% QoQ
    Q2 FY26

    This quarter we shipped 108 units, bringing our cumulative LEO terminal ship to 518 units, a 17% increase from last quarter.

    Cumulative Galileo LEO Terminal Shipments
    518
    Q2 FY26

    bringing our cumulative LEO terminal ship to 518 units

    LEO Aircraft Online
    184up 66% QoQ
    Q2 FY26

    We now have a total of 184 LEO aircraft online, up 66% from the prior quarter.

    5G Unit Shipments
    138up 165% QoQ
    Q2 FY26

    5G unit shipments continue to increase, with 138 units sold in Q2 compared to 52 units sold in Q1.

    C1 Systems Online
    690up 24% QoQ
    Q2 FY26

    We shipped 83 of our C1s and ended the quarter with a record 690 C1 systems online, an increase of 24% from the end of the first quarter.

    Total ATG Aircraft Online
    5,731down 15% YoY, down 6% QoQ
    Q2 FY26

    total ATG aircraft online into the quarter at 5,731, down 15% year-over-year and 6% sequentially

    Advanced Units Online
    4,603slight decline QoQ
    Q2 FY26

    We also have 4,603 advance units online this quarter, a slight decline compared to the same time period last quarter.

    Broadband GEO Aircraft Online
    1,306stable QoQ, down 1% YoY
    Q2 FY26

    Broadband geo aircraft online remains stable at 1,306. unchanged from last quarter and down 1% year over year.

    Gross Margin
    42%up from 41% QoQ
    Q2 FY26

    margin for the quarter was 42% compared to 41% in the first quarter.

    Net Loss
    negative $2Mvs negative $12.8M Q2 FY25, vs negative $13.1M Q1 FY26
    Q2 FY26

    the net loss for the quarter was negative 2 million compared to 12.8 million in the second quarter of 2025 and 13.1 million in the first quarter of 2026.

    Adjusted EBITDA
    $53.7Mdown 13% YoY, up 1% QoQ
    Q2 FY26

    Adjusted EBITDA was $53.7 million, down 13% compared to Q2 2025 and up 1% sequentially.

    Adjusted EBITDA Litigation Expense
    $3.2Mvs $6.1M Q1 FY26
    Q2 FY26

    Adjusted EBITDA for the quarter also includes $3.2 million of ongoing litigation expense compared to $6.1 million in the first quarter.

    HPS Term Loan Principal Payment
    $21.1M
    April 2026

    In April, we made a $21.1 million principal payment on our HPS term loan facility through the excess cash flow sweep mechanism.

    SATCOM Direct Earn-out Payment
    $40M
    Q2 FY26

    We also funded the previously announced $40 million SATCOM direct earn out payment

    Net Leverage Ratio
    3.8xincreased QoQ
    Q2 FY26

    Our net leverage ratio for the quarter was 3.8 times, increasing due to the SATCOM route I just mentioned.

    Net Cash Provided by Operating Activities
    $32.3Mvs negative $7.2M Q1 FY26
    Q2 FY26

    net cash provided by operating activities totaled $32.3 million compared to negative $7.2 million in the first quarter.

    Cash and Cash Equivalents
    $63.1M
    Q2 FY26

    We ended the quarter with $63.1 million in cash and cash equivalents after funding both the SATCOM direct earn-out and our debt repayment.

    FCC Reimbursement Program Allocation
    more than $300M
    ongoing

    Under the FCC reimbursement program, we've allocated for a significant portion of our full approved amount of more than $300 million to cover the cost of removal and replacement of covered equipment

    Net Loss Fair Value Adjustment
    $7.2M
    Q2 FY26

    In the second quarter, results reflected a $7.2 million non-cash increase in the fair value of the SATCOM direct earn-out liability.

    Industry KPIs

    3
    MetricValueDetails
    Free cash flow FCF guidance$65M-$85MUSD
    Service revenue growth ratedown 1%%
    Share buyback capital returned—

    Product announcements

    1
    ProductTypeDetails
    GoGo Galileo HDXmilestone

    Deals & partnerships

    4
    AirShareEquipping its fleet of Embraer Finon 300s with Galileo HDX.

    AirShare is a leading U.S.-based fractional ownership jet card and aircraft management operator. Decision followed a live demonstration flight where the system transferred over 16 gigabytes of data in one hour.

    VistaJet, WheelsUp, NetJetRollouts of GoGoGalileo platform.

    The rollouts discussed last quarter with these counterparties continue to progress well.

    OEMsContracts for Galileo line fit into the OEM process at the factory.

    All OEMs are now locked into contracts for Galileo, which is expected to ramp up line fit during the second half of the year.

    SATCOM DirectFunding of previously announced earn-out payment.$40M

    The $40 million earn-out payment was funded, contributing to the increase in the net leverage ratio.

    Risks & headwinds

    4
    Decline in legacy ATG service revenueOngoing

    Total ATG aircraft online down 15% YoY and 6% sequentially to 5,731.

    Mitigation: Diversifying business with Galileo, 5G, and Military/Government growth.

    Delays in Galileo product rollout (STCs and OEM line fit)Near term, expected to accelerate in H2 FY26

    20 STCs outstanding for FDX; FAA backlog slowing process.

    Mitigation: OEMs locked into contracts, expecting line fit ramp in H2 FY26.

    Litigation expenseOngoing through 2026, potentially into 2027

    $3.2 million in Q2 FY26, $6.1 million in Q1 FY26. Full-year guidance includes $22 million.

    Mitigation: Managed within adjusted EBITDA guidance.

    Net leverage ratio increaseQ2 FY26, expected to fluctuate modestly over balance of year

    Increased to 3.8 times in Q2 FY26.

    Mitigation: Debt reduction remains highest capital allocation priority, targeting 2.5 to 3.5 times.

    What to watch in Q3 FY26

    5

    Galileo units online

    End of FY26
    Current184 aircraft
    TargetMid-500s aircraft

    Why it matters

    Indicates adoption and operational deployment of key LEO service, driving recurring service revenue.

    the model assumes kind of at the high end, we're in the mid-500s for total Galileo.

    Q&A highlights

    5

    Update on Galileo units online target for year-end (600 previously), 5G pipeline (500+ aircraft), and MilGov opportunity (absolute dollars/mix in 2027, utilization vs. new aircraft).

    Management confirmed Galileo units online target in the mid-500s for year-end. For MilGov, they highlighted global modernization opportunities, cost-effective commercial-based products for military, and early traction in the UAV market, but did not provide specific dollar or mix targets for 2027, stating it's too early.

    “the model assumes kind of at the high end, we're in the mid-500s for total Galileo.”

    asked by Scott Serrell · answered by Zachary Cotner

    2 min read5 chapters

    Detailed Narrative

    01

    Galileo LEO Service Momentum

    Gogo's global LEO service, Galileo (HDX for smaller aircraft, FDX for mid/large cabin), showed significant progress with 108 units shipped this quarter, bringing cumulative LEO terminal shipments to 518. LEO aircraft online increased 66% sequentially to 184, demonstrating accelerated operational deployment and recurring service revenue generation. The company secured new fleet commitments, including AirShare, and received several key FAA and EASA STCs for HDX, expanding its total addressable market.

    02

    5G and ATG Transition

    The company saw continued momentum in its latest ATG offerings, with 5G unit shipments increasing 165% sequentially to 138 units. C1 systems online reached a record 690, up 24% from Q1. While total ATG aircraft online declined 15% YoY and 6% sequentially to 5,731, this was attributed to customer transitions to newer Gogo products (Galileo or 5G) and the NetJets fleet transition, rather than underlying attrition.

    03

    Military and Government Business Strength

    The military and government end market delivered a record quarter, with service revenue increasing 40% year-over-year and 20% sequentially. This growth is driven by strong demand and increased utilization of existing services due to ongoing geopolitical conflicts, validating Gogo's strategy of diversifying beyond traditional business aviation. The company is also exploring opportunities in the unmanned aerial vehicle (UAV) market.

    04

    FCC Reimbursement Program

    Gogo is making strong progress towards the November 8, 2026, completion deadline for the FCC reimbursement program, which covers the cost of removing and replacing covered equipment across the U.S. network and ATG aircraft. Reimbursements continue to offset program costs, and upon completion, Gogo will operate the only fully US-based data-sovereign ATG network.

    05

    Financial Performance and Capital Allocation

    Q2 performance met profitability expectations, with adjusted EBITDA of $53.7 million. The company generated $32.3 million in net cash from operating activities and $21.6 million in free cash flow. Reducing leverage remains the highest capital allocation priority, with a net leverage ratio of 3.8 times and a target of 2.5 to 3.5 times. Full-year guidance was revised due to equipment shipment timing and increased litigation expenses.

    AI-generated summary of the company’s earnings call. Not investment advice.