Gogo (GOGO) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 76.1
• Beta (1Y): 1.07
• Revenue Growth: 41.51%
• EPS Growth: -103.22%
• Country: US
• Employees: 790
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): 0.09
• Shares Outstanding: 132,263,580
• 10 Day Avg. Volume: 1,520,798
• 30 Day Avg. Volume: 2,143,228
• PEG Ratio: -0.41
• Price to Book (P/B): -17.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.01
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 5.96
• 1Y Price Target: $13.75
• Price Target Upside: 9.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: $13.00 ▲(3.50%Upside)

Gogo's overall stock score reflects a combination of strong technical momentum and positive recent earnings call sentiment, despite challenges in financial leverage and valuation concerns. The company's robust revenue growth and operational improvements bolster its potential, but high debt levels and negative net profit margins temper the outlook.

Positive Factors

Financial Performance

Shares of Gogo traded up about 44% and are up 14% after the company reported a strong revenue and EBITDA beat and reiterated 2025 guidance.

Synergy and Cost Savings

The company remains on track to reach the high end of its synergy target with over 85% of the synergy savings already realized, and there is potential for further synergies.

Negative Factors

Competition

Operational metrics were mixed as the combined company of Gogo and Satcom Direct continues to face intense competition from SpaceX.

Regulatory and Development Challenges

FAA certification delays and continued issues with the 5G development will result in 2025 being another investment year.

Gogo Business Overview & Revenue Model

Company Description

Gogo Inc. is a leading provider of in-flight broadband Internet and connectivity services for commercial and business aviation. The company serves the aviation industry by offering high-speed Wi-Fi, entertainment, and voice communication solutions to airlines and their passengers. Gogo's technology enables passengers to stay connected to the internet, stream content, and access online services while in-flight.

How the Company Makes Money

Gogo makes money primarily through the sale of its in-flight connectivity services to airlines and business aviation customers. Its revenue model includes long-term contracts with airlines where it provides its connectivity solutions, typically charging a fee per aircraft or per passenger usage. Additional revenue comes from partnerships with content providers and advertisers, allowing Gogo to offer premium content and targeted advertising to passengers during their flights. The company also generates income from equipment sales, installation services, and ongoing technical support and maintenance for its systems.

Gogo Financial Statement Overview

Summary

Gogo shows strong revenue growth at 28.3% and operational efficiency with high gross profit margins. However, challenges remain in net profitability, with a negative net profit margin and a high debt-to-equity ratio indicating financial risk.

Income Statement

Gogo's income statement shows a strong gross profit margin at 65.7% TTM, reflecting efficient cost management. However, the net profit margin is negative at -0.8% TTM, indicating challenges in translating revenue into net income. Revenue has grown significantly by 28.3% from the previous year, showcasing robust growth. EBIT and EBITDA margins are moderate at 9.1% and 12.5% TTM, respectively, suggesting operational profitability but room for improvement in controlling expenses.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 10.85 TTM, highlighting significant leverage and potential financial risk. The return on equity is negative at -5.67% TTM, mainly due to a small equity base. The equity ratio is low at 6.7% TTM, which suggests limited financial stability; however, a slight year-on-year improvement is noted. High liabilities compared to assets pose a challenge, though the company has improved its stockholders' equity from negative positions in prior years.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow from the previous year, though it remains positive at $22.38 million TTM. The operating cash flow to net income ratio is negative due to the net loss, while the free cash flow to net income ratio cannot be calculated for the same reason. Despite the negative net income, the company generates positive operating cash flow of $44.24 million TTM, indicating solid cash-generating capacity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
570.69M	444.71M	397.58M	404.07M	335.72M	269.72M
	Gross Profit
375.16M	345.67M	264.63M	268.17M	233.52M	185.35M
	EBIT
51.78M	51.27M	124.17M	142.33M	120.63M	76.35M
	EBITDA
71.56M	75.54M	140.87M	157.17M	52.31M	90.52M
	Net Income Common Stockholders
-4.70M	13.75M	145.68M	92.06M	152.74M	-48.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.28M	41.77M	139.04M	175.35M	145.91M	435.35M
	Total Assets
1.24B	1.23B	781.54M	759.53M	647.69M	673.59M
	Total Debt
899.76M	914.93M	678.09M	776.66M	881.71M	1.21B
	Net Debt
829.48M	873.17M	539.05M	626.11M	735.80M	771.64M
	Total Liabilities
1.16B	1.16B	740.81M	861.39M	967.84M	1.31B
	Stockholders Equity
82.95M	69.32M	40.73M	-101.87M	-320.15M	-641.11M
Cash Flow		Free Cash Flow
22.38M	27.92M	54.88M	53.49M	56.83M	-141.68M
	Operating Cash Flow
44.24M	41.42M	78.97M	103.41M	65.49M	-132.69M
	Investing Cash Flow
-337.03M	-337.20M	29.86M	-70.42M	-24.09M	348.40M
	Financing Cash Flow
210.41M	198.69M	-120.43M	-28.39M	-331.04M	44.42M

Gogo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOGO, the sentiment is Positive. The current price of 12.56 is above the 20-day moving average (MA) of 11.50, above the 50-day MA of 9.55, and above the 200-day MA of 8.09, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 90.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOGO.

Gogo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRDM	78 Outperform	$3.10B	26.90	18.01%	1.96%	6.64%	403.10%
IDT	77 Outperform	$1.70B	17.75	38.36%	0.36%	1.91%	169.96%
GOGO	70 Outperform	$1.60B	76.11	-6.47%	―	41.51%	-103.22%
Sector *	61 Neutral	$14.74B	5.90	-4.02%	6.40%	2.72%	-31.67%
RBBN	57 Neutral	$660.28M	―	-12.42%	―	1.91%	15.71%
WOW	48 Neutral	$339.34M	―	-26.19%	―	-8.37%	78.45%
ATUS	41 Neutral	$972.87M	―	21.93%	―	-3.68%	-2563.04%

Gogo Corporate Events

Gogo Holds Annual Stockholders Meeting, Elects Directors

On June 12, 2025, Gogo Inc. held its annual meeting of stockholders, with 89.42% of the company’s common stock represented. During the meeting, stockholders elected Class III directors for a three-year term, approved the 2024 executive compensation, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (GOGO) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Gogo stock, see the GOGO Stock Forecast page.

Gogo Appoints New Director After Recent Resignation

On May 12, 2025, Michael Abad-Santos resigned as a Class III director of Gogo Inc.’s board, with no disagreements cited regarding company operations or policies. Christopher J. Moore was appointed as a Class III director and nominated for election at the upcoming annual meeting. The board plans to reduce its size to eight directors following the meeting, considering it optimal for effective functioning.

The most recent analyst rating on (GOGO) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Gogo stock, see the GOGO Stock Forecast page.

Gogo Appoints Oakleigh Thorne as Executive Chairman

Gogo Inc. has appointed Oakleigh Thorne as Executive Chairman of the Board of Directors, effective December 3, 2024. The company and Mr. Thorne have entered into a Second Amended and Restated Employment Agreement, which outlines his full-time and part-time roles, compensation, and benefits for 2025. The agreement includes provisions for bonuses, equity awards, and conditions for termination, aiming to align Mr. Thorne’s incentives with the company’s performance and strategic goals.