Gogo (GOGO)
NASDAQ:GOGO
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Gogo
(NASDAQ:GOGO)
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Rating:52Neutral
Price Target:
$5.50
▲(37.16% Upside)
Action:ReiteratedDate:02/28/26
The score is held back primarily by elevated leverage and mixed profitability/earnings quality, alongside bearish technical trends. Offsetting these, the latest earnings call was constructive with improving free cash flow expectations and clear operational catalysts tied to Galileo and 5G execution.
Positive Factors
Service Revenue Re-acceleration
Sustained, high-margin service growth shifts the revenue mix toward recurring subscriptions. With service expected to be ~80% of 2026 revenue and service profit >95% of gross profit, stronger service composition should support more predictable cash flows, higher long‑term margins, and reduced cyclicality versus equipment sales.
Negative Factors
Elevated Leverage
Very high leverage limits financial flexibility and raises refinancing and interest‑coverage risk. With cash interest ~ $67M in 2025 and net leverage ~3.3x, adverse shocks or slower cash generation could force higher borrowing costs, constrain investments, or require asset sales to meet covenants.
Read all positive and negative factors
Positive Factors
Negative Factors
Service Revenue Re-acceleration
Sustained, high-margin service growth shifts the revenue mix toward recurring subscriptions. With service expected to be ~80% of 2026 revenue and service profit >95% of gross profit, stronger service composition should support more predictable cash flows, higher long‑term margins, and reduced cyclicality versus equipment sales.
Read all positive factors
Gogo (GOGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$554.89M
Dividend YieldN/A
Average Volume (3M)2.24M
Price to Earnings (P/E)48.2
Beta (1Y)1.10
Revenue Growth102.05%
EPS Growth-110.74%
CountryUS
Employees790
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.07
Shares Outstanding134,681,900
10 Day Avg. Volume2,202,946
30 Day Avg. Volume2,235,077
Financial Highlights & Ratios
PEG Ratio-3.96
Price to Book (P/B)6.16
Price to Sales (P/S)0.68
P/FCF Ratio9.57
Enterprise Value/Market Cap2.51
Enterprise Value/Revenue1.53
Enterprise Value/Gross Profit2.59
Enterprise Value/Ebitda8.84
Forecast
1Y Price Target
$7.50Price Target Upside87.03% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.28
Revenue Forecast (FY)$919.64M
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-R...
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,...
Gogo Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong product and commercial momentum (Galileo, 5G, ATG modernization), robust YoY service and international growth, record equipment shipments, and free cash flow at the high end of guidance, supporting a positive growth trajectory. Offsetting risks include near-term ATG AOL declines and ARPU pressure, negative equipment margins and legacy write-offs, litigation-related charges, an inventory-driven Q4 cash drag and elevated leverage. Management provided constructive 2026 guidance and multiple operational catalysts (STCs, fleet wins, FCC reimbursement) that underpin medium-term upside while acknowledging short-term execution and balance-sheet risks.Positive Updates
Strong Service Revenue Growth
Q4 service revenue of $192,000,000, up 61% year-over-year and +1% sequentially, driven by product mix shift and higher-margin service activations.
Negative Updates
Declining ATG Aircraft Online and ARPU Pressure
Total ATG aircraft online fell to 6,402, down 9% year-over-year and down 2% sequentially. Total ATG ARPU was $3,378, down 3% year-over-year and 1% sequentially, pressured by pre-launch pricing reductions ahead of new 5G pricing.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Service Revenue Growth
Q4 service revenue of $192,000,000, up 61% year-over-year and +1% sequentially, driven by product mix shift and higher-margin service activations.
Read all positive updates
Company Guidance
Gogo guided 2026 total revenue of $905–$945M (≈80% service / 20% equipment), adjusted EBITDA of $198–$218M and free cash flow of $90–$110M (midpoint ~12% YoY), implying ~2% top‑line growth at the midpoint; they expect net CapEx of $20M after $45M FCC CapEx reimbursement, ~$30M of strategic investments (down ~45% from $56M in 2025), and excluded a $40M earn‑out from FCF. Operational targets include combined Galileo+5G shipments >1,000 in 2026 (nearly 900 Galileo antennas expected shipped by 2026 with a path to ~700 Galileo installs by year‑end), >500 5G boxes shipped and ~400 5G aircraft online by year‑end, C1 AOL ~800 by year‑end, Classic AOL reaching zero in Q4 2026, AVANCE AOL at 4,956 (77% of ATG fleet), Q4 ATG AOL 6,402 and GEO AOL 1,321. Management also noted unit economics assumptions ( ~$4,000 average monthly service profit per Galileo → ~$480k service profit over 10 years per aircraft if 1,000 activated), equipment margins in the mid‑single digits, ATG service margins ~75%, blended GEO margins in the high‑30s, Galileo margins between those, and service profit expected to be >95% of gross profit; balance‑sheet metrics cited: Q4 cash & short‑term investments $125.2M, outstanding debt $848M, $122M revolver undrawn, liquidity ~ $250M and net leverage 3.3x (target 2.5–3.5x).Gogo Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 910.49M | 444.71M | 397.58M | 404.07M | 335.72M |
| Gross Profit | 537.76M | 278.11M | 264.63M | 268.17M | 233.52M |
| EBITDA | 155.31M | 75.54M | 140.87M | 157.17M | 52.31M |
| Net Income | 12.92M | 13.75M | 145.68M | 92.06M | 152.74M |
Balance Sheet | |||||
| Total Assets | 1.30B | 1.23B | 781.54M | 759.53M | 647.69M |
| Cash, Cash Equivalents and Short-Term Investments | 125.21M | 41.77M | 139.04M | 175.35M | 145.91M |
| Total Debt | 961.58M | 914.93M | 678.09M | 785.76M | 889.15M |
| Total Liabilities | 1.20B | 1.16B | 740.81M | 861.39M | 967.84M |
| Stockholders Equity | 101.13M | 69.32M | 40.73M | -101.87M | -320.15M |
Cash Flow | |||||
| Free Cash Flow | 65.11M | 27.92M | 54.88M | 53.49M | 56.83M |
| Operating Cash Flow | 124.49M | 41.42M | 78.97M | 103.41M | 65.49M |
| Investing Cash Flow | -39.92M | -337.20M | 29.86M | -70.42M | -24.09M |
| Financing Cash Flow | -1.35M | 198.69M | -120.43M | -28.39M | -331.04M |
Gogo Technical Analysis
Negative
4.01
Price Trends
4.46
Negative
5.16
Negative
8.51
Negative
Market Momentum
-0.12
Positive
37.15
Neutral
15.53
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 4.01 is below the 20-day moving average (MA) of 4.49, below the 50-day MA of 4.46, and below the 200-day MA of 8.51, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 37.15 is Neutral, neither overbought nor oversold. The STOCH value of 15.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOGO.
Gogo Risk Analysis
Gogo disclosed 53 risk factors in its most recent earnings report. Gogo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gogo Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.45B | 16.30 | 24.01% | 3.30% | 7.30% | 21.31% | |
62 Neutral | $992.33M | -60.25 | -7.83% | ― | 5.81% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $554.89M | 48.21 | 13.13% | ― | 102.05% | -110.74% | |
52 Neutral | $835.05M | -16.17 | -4.06% | 0.97% | 11.59% | -106.83% | |
47 Neutral | $951.18M | -5.67 | -842.48% | 13.93% | -6.48% | -588.01% | |
47 Neutral | $548.84M | -1.79 | -23.85% | 10.11% | -4.94% | -335.70% |
* Communication Services Sector Average
GOGO
Gogo
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Gogo Corporate Events
Business Operations and StrategyProduct-Related Announcements
Gogo Advances with Galileo Antennas Roll-Out
Positive
Dec 10, 2025
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.