Gogo (GOGO) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 250.7
• Beta (1Y): 0.99
• Revenue Growth: 72.74%
• EPS Growth: -90.17%
• Country: US
• Employees: 790
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): 0.09
• Shares Outstanding: 133,685,230
• 10 Day Avg. Volume: 1,906,962
• 30 Day Avg. Volume: 1,761,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 4.06
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 26.31
• 1Y Price Target: $15.50
• Price Target Upside: 37.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 56 Neutral
• Price Target: $12.50 ▲(11.11% Upside)

Gogo's overall score is driven by strong earnings call sentiment and revenue growth, but is offset by high leverage, poor technical indicators, and overvaluation concerns.

Positive Factors

Cost Savings

Post-deal integration activities appear to be yielding more savings than originally anticipated and ahead of schedule.

Product Development

Gogo is making notable headway on its new product rollouts and the integration of Satcom Direct.

Regulatory Approval

Gogo has retired risk on numerous fronts, including successfully securing Federal Aviation Administration (FAA) Parts Manufacturer Approval for Galileo antennas and confirming full functionality of its 5G chip.

Negative Factors

Competitive Pressure

The stakes are particularly high for Gogo in light of newer, deep-pocketed entrants to the business aviation connectivity market.

Investment Needs

2025 is still marked by limited new product revenue and elevated investment as Gogo positions for near-term product ramps.

Operational Challenges

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

Gogo Business Overview & Revenue Model

Company Description

Gogo Inc., through its subsidiaries, provides broadband connectivity services to the aviation industry in the United States and internationally. It operates through Commercial Aviation North America (CA-NA), Commercial Aviation Rest of World (CA-ROW), and Business Aviation (BA) segments. The company design, build and operate air-to-ground networks, engineer and maintain in-flight systems of proprietary hardware and software, and deliver customizable connectivity and wireless entertainment services. It also offers suite of integrated equipment, network, and internet connectivity products and services, as well as includes suite of smart cabin systems for integrated connectivity, in-flight entertainment, and voice solutions. In addition, the company portfolio comprises of in-flight network, in-flight systems, in-flight services, aviation partner support, and production operations functions. Further, the company offers satellite-based voice and data services. Gogo Inc. was founded in 1991 and is headquartered in Broomfield, Colorado.

How the Company Makes Money

Gogo generates revenue through several key streams, primarily from inflight connectivity services and entertainment offerings. The company charges airlines for the installation, maintenance, and operation of its connectivity systems, which include both air-to-ground and satellite technology. Revenue is derived from subscription fees paid by airlines for passenger access to internet services, which can be offered for free, through a one-time payment, or via a subscription model. Additionally, Gogo monetizes its platform through partnerships with content providers, enabling airlines to offer streaming services and other entertainment options to passengers. Strategic partnerships with major airlines further bolster its revenue, as Gogo becomes integral to the airlines' service offerings, helping to attract and retain customers. The overall demand for inflight connectivity continues to grow, significantly contributing to Gogo's earnings potential.

Gogo Financial Statement Overview

Summary

Gogo shows strong revenue growth and operational efficiency, but faces challenges in net profitability and financial leverage. The income statement highlights robust revenue generation, but the balance sheet reflects high leverage with substantial debt levels, posing financial risks. Cash flow remains strong, supporting operational activities despite net income challenges.

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	694.67M	444.71M	397.58M	404.07M	335.72M	269.72M
Gross Profit	446.94M	345.67M	264.63M	268.17M	233.52M	185.35M
EBITDA	107.10M	75.54M	140.87M	157.17M	52.31M	91.25M
Net Income	7.27M	13.75M	145.68M	92.06M	152.74M	-250.04M
Balance Sheet
Total Assets	1.26B	1.23B	781.54M	759.53M	647.69M	673.59M
Cash, Cash Equivalents and Short-Term Investments	102.08M	41.77M	139.04M	175.35M	145.91M	435.35M
Total Debt	897.22M	914.93M	678.09M	785.76M	889.15M	1.22B
Total Liabilities	1.16B	1.16B	740.81M	861.39M	967.84M	1.31B
Stockholders Equity	102.79M	69.32M	40.73M	-101.87M	-320.15M	-641.11M
Cash Flow
Free Cash Flow	40.67M	27.92M	54.88M	53.49M	56.83M	-141.68M
Operating Cash Flow	56.00M	41.42M	78.97M	103.41M	65.49M	-132.69M
Investing Cash Flow	-341.74M	-337.20M	29.86M	-70.42M	-24.09M	348.40M
Financing Cash Flow	225.88M	198.69M	-120.43M	-28.39M	-331.04M	44.42M

Gogo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOGO, the sentiment is Negative. The current price of 11.25 is below the 20-day moving average (MA) of 12.84, below the 50-day MA of 14.31, and above the 200-day MA of 9.89, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 33.41 is Neutral, neither overbought nor oversold. The STOCH value of 7.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOGO.

Gogo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	79 Outperform	$1.58B	16.67	38.36%	0.35%	1.91%	169.96%
IRDM	67 Neutral	$2.62B	24.80	17.96%	2.24%	7.56%	38.78%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
WOW	60 Neutral	$435.70M	―	-30.99%	―	-8.67%	63.35%
RBBN	59 Neutral	$699.47M	―	-11.45%	―	7.68%	18.65%
GOGO	56 Neutral	$1.50B	250.67	9.39%	―	72.74%	-90.17%
ATUS	42 Neutral	$1.12B	―	21.93%	―	-3.82%	-363.28%

Gogo Corporate Events

Gogo Appoints General Minihan to Board of Directors

On July 2, 2025, Gogo Inc. appointed retired four-star General Michael Minihan to its Board of Directors, expanding the board to nine members. General Minihan brings extensive military leadership experience, having served as Commander of the Air Mobility Command and Deputy Commander of U.S. Indo-Pacific Command. His appointment is expected to enhance Gogo’s strategic capabilities and industry positioning, although he has not been assigned to any specific board committee yet.

Gogo Completes First 5G End-to-End Call

On June 18, 2025, Gogo Inc. announced the successful completion of its first 5G end-to-end call, marking a significant milestone in its efforts to deliver next-generation air-to-ground connectivity. This achievement, which occurred on June 16, 2025, confirms the readiness of Gogo’s 5G chip for final integration phases, enhancing its market position in business aviation connectivity. The company has prepared over 300 aircraft for its 5G system, aiming to offer high-speed broadband for business aviation users across North America by the end of the year.

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.