Gogo (GOGO) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 201.8
• Beta (1Y): 0.96
• Revenue Growth: 72.74%
• EPS Growth: -90.17%
• Country: US
• Employees: 790
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.09
• Shares Outstanding: 133,685,230
• 10 Day Avg. Volume: 1,894,937
• 30 Day Avg. Volume: 1,983,153
• 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: 2.30
• Enterprise Value/Revenue: 4.06
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 26.31
• 1Y Price Target: $15.50
• Price Target Upside: 71.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 56 Neutral
• Price Target: $12.50 ▲(38.27% 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

Revenue Growth

Robust revenue growth indicates strong demand for Gogo's services, enhancing its market position and supporting long-term business expansion.

5G Development

The successful 5G development positions Gogo at the forefront of next-gen connectivity, potentially increasing its competitive edge in the aviation market.

Cash Flow Generation

Strong cash flow generation enhances Gogo's ability to invest in growth opportunities and manage financial obligations, supporting long-term sustainability.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting Gogo's flexibility to invest in growth and manage economic downturns.

Profitability Challenges

Low profitability margins indicate operational inefficiencies, which could hinder Gogo's ability to sustain long-term financial health.

Competitive Pressure

Increasing competition from Starlink could erode Gogo's market share, challenging its position in the business aviation connectivity sector.

Gogo Business Overview & Revenue Model

Company Description

Gogo Inc. is a leading provider of inflight connectivity and entertainment services for commercial and business aviation. The company operates primarily in the aerospace sector, offering a range of products that include satellite and air-to-ground communication systems, as well as content services for airlines. Gogo's core services enable passengers to access the internet, stream video, and utilize various applications during their flights, enhancing the overall travel experience.

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 cash flow generation, but faces challenges with profitability and high leverage, posing financial risks.

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	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: Neutral
• Last Price: 9.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOGO, the sentiment is Neutral. The current price of 9.04 is above the 20-day moving average (MA) of 8.99, below the 50-day MA of 10.99, and below the 200-day MA of 10.12, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 44.24 is Neutral, neither overbought nor oversold. The STOCH value of 57.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GOGO.

Gogo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRDM	68 Neutral	$2.06B	19.40	17.96%	2.89%	7.56%	38.78%
SIFY	61 Neutral	$1.08B	―	-5.17%	―	10.20%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GOGO	56 Neutral	$1.23B	201.79	9.39%	―	72.74%	-90.17%
CABO	52 Neutral	$961.88M	59.21	-30.85%	6.91%	-5.43%	-363.95%
SHEN	51 Neutral	$740.01M	―	-3.93%	0.76%	16.73%	-237.78%
CCOI	50 Neutral	$2.09B	102.75	-93.59%	9.22%	-6.64%	-569.94%

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.