Gogo (GOGO) AI Stock Analysis

• Market Cap: $756.28M
• Dividend Yield: N/A
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 102.05%
• EPS Growth: -110.74%
• Country: US
• Employees: 790
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 133,854,340
• 10 Day Avg. Volume: 4,375,599
• 30 Day Avg. Volume: 2,535,565
• PEG Ratio: -0.84
• Price to Book (P/B): 15.00
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 37.25
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 4.30
• Enterprise Value/Ebitda: 16.32
• 1Y Price Target: $12.00
• Price Target Upside: 135.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.2
• Revenue Forecast (FY): $902.60M

• Rating: 53 Neutral
• Price Target: $5.00 ▼(-1.77% Downside)

Gogo's overall stock score reflects a challenging financial position with high leverage and negative earnings, compounded by bearish technical indicators. However, strategic initiatives and contract wins provide some optimism for future growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates positive business momentum and effective market penetration, supporting long-term expansion.

Product Rollouts and Partnerships

New product rollouts and strategic partnerships enhance competitive positioning and open new revenue streams, driving future growth.

Military/Government Sector Growth

Expanding into the military/government sector diversifies revenue sources and leverages Gogo's technological capabilities for sustained growth.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Negative Net Income

Negative net income highlights profitability challenges, which can strain cash flow and hinder reinvestment in growth initiatives.

Pressure on Service Revenue

Declining service revenue in key segments may affect overall profitability and necessitate strategic pivots to maintain growth.

Gogo Business Overview & Revenue Model

Company Description

Gogo Inc. is a leading provider of in-flight broadband connectivity and wireless entertainment solutions for commercial and business aviation. The company operates primarily in the aviation sector, offering a range of services that enable passengers to access the internet and stream content while flying. Gogo's core products include its 2Ku and ATG (Air to Ground) connectivity systems, which support high-speed internet access on various aircraft, as well as a suite of entertainment options that enhance the passenger experience during flights.

How the Company Makes Money

Gogo generates revenue primarily through its in-flight connectivity services and entertainment offerings. The company operates on a subscription-based model, where airlines pay for the installation of Gogo's connectivity systems on their aircraft, as well as recurring fees for ongoing service. Key revenue streams include monthly subscription fees from airlines for internet access, pay-per-use charges for passengers, and partnerships with airlines to provide entertainment content. Additionally, Gogo may earn revenue from hardware sales related to its connectivity systems and through collaborations with third-party service providers, enhancing its service offerings and increasing overall earnings.

Gogo Financial Statement Overview

Summary

Gogo shows strong revenue growth and cash flow generation, which are positive indicators for future performance. However, challenges with profitability and high leverage pose risks. The balance sheet's high debt levels and low equity position highlight potential financial vulnerabilities.

Income Statement

Gogo's income statement shows a strong revenue growth rate of 21.72% in the TTM, indicating robust top-line expansion. However, the net profit margin is relatively low at 1.05%, suggesting limited profitability. The gross profit margin is healthy at 64.34%, but the EBIT and EBITDA margins have decreased compared to previous years, reflecting potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 8.73, indicating significant leverage and potential financial risk. The return on equity is modest at 9.44%, showing some profitability but not enough to offset the high leverage. The equity ratio is low, suggesting limited equity financing and potential vulnerability to financial instability.

Cash Flow

The cash flow statement highlights a strong free cash flow growth rate of 81.72% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.25, showing a reasonable conversion of net income to cash. The free cash flow to net income ratio is 0.73, reflecting efficient cash management despite the company's leverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	817.73M	444.71M	397.58M	404.07M	335.72M	269.72M
Gross Profit	449.60M	278.11M	264.63M	268.17M	233.52M	185.35M
EBITDA	118.34M	75.54M	140.87M	157.17M	52.31M	85.36M
Net Income	-5.29M	13.75M	145.68M	92.06M	152.74M	-250.04M
Balance Sheet
Total Assets	1.30B	1.23B	781.54M	759.53M	647.69M	673.59M
Cash, Cash Equivalents and Short-Term Investments	133.64M	41.77M	139.04M	175.35M	145.91M	435.35M
Total Debt	908.63M	914.93M	678.09M	785.76M	889.15M	1.22B
Total Liabilities	1.19B	1.16B	740.81M	861.39M	967.84M	1.31B
Stockholders Equity	106.96M	69.32M	40.73M	-101.87M	-320.15M	-641.11M
Cash Flow
Free Cash Flow	37.53M	27.92M	54.88M	53.49M	56.83M	-141.68M
Operating Cash Flow	77.67M	41.42M	78.97M	103.41M	65.49M	-132.69M
Investing Cash Flow	-357.45M	-337.20M	29.86M	-70.42M	-24.09M	348.40M
Financing Cash Flow	236.49M	198.69M	-120.43M	-28.39M	-331.04M	44.42M

Gogo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 5.09 is below the 20-day moving average (MA) of 6.66, below the 50-day MA of 7.92, and below the 200-day MA of 10.10, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 22.27 is Positive, neither overbought nor oversold. The STOCH value of 14.00 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
IRDM	71 Outperform	$1.96B	16.39	22.59%	3.33%	7.30%	21.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SIFY	57 Neutral	$824.77M	―	-8.89%	―	5.81%	―
GOGO	53 Neutral	$756.28M	―	-6.63%	―	102.05%	-110.74%
CABO	52 Neutral	$745.82M	―	-27.38%	8.92%	-4.94%	-335.70%
SHEN	50 Neutral	$591.25M	―	-4.41%	0.94%	11.59%	-106.83%
CCOI	41 Neutral	$1.20B	―	-136.94%	13.11%	-6.48%	-588.01%

Gogo Corporate Events

Gogo Advances with Galileo Antennas Roll-Out

Gogo Inc. is progressing with the roll-out of its Galileo HDX and FDX antennas and plans to launch its 5G network by January 2026. The company maintains a strong relationship with long-standing partner NetJets, which supports Gogo’s products and services. Gogo is also exploring new opportunities with fleet operators like VistaJet, Avcon Jet, and Lux Aviation, representing a potential market of over 1,000 aircraft.

Gogo Announces Departure of COO Michael Begler

On October 21, 2025, Gogo Inc. announced the immediate departure of its Executive Vice President and Chief Operating Officer, Michael Begler. His exit was not due to any disagreements or issues related to the company’s operations or policies, and he will receive severance benefits as per his employment agreement.