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Gogo Inc (GOGO)
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Gogo (GOGO) AI Stock Analysis

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GOGO

Gogo

(NASDAQ:GOGO)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
$9.50
▲(9.07% Upside)
Gogo's overall stock score is driven by strong earnings call sentiment and robust revenue growth, but is tempered by high leverage, poor valuation metrics, and bearish technical indicators. The company's high debt levels and low equity position present financial risks, while the high P/E ratio suggests overvaluation. Despite these challenges, positive developments in 5G and increased financial guidance provide some optimism.
Positive Factors
5G Development
The successful development of 5G technology positions Gogo to offer faster and more reliable connectivity, enhancing its competitive edge in the inflight connectivity market.
Revenue Growth
Strong revenue growth indicates robust demand for Gogo's services, supporting long-term business expansion and market presence.
Cash Flow Generation
Strong cash flow generation enhances Gogo's ability to invest in growth initiatives and manage debt, supporting financial stability.
Negative Factors
High Leverage
High leverage can strain financial resources and limit flexibility, posing risks to long-term financial health if not effectively managed.
Profitability Challenges
Limited profitability suggests operational inefficiencies, which could hinder Gogo's ability to sustain growth and invest in future opportunities.
Decline in ATG Aircraft Online
A decline in ATG aircraft online could indicate challenges in maintaining market share, potentially impacting future revenue streams.

Gogo (GOGO) vs. SPDR S&P 500 ETF (SPY)

Gogo Business Overview & Revenue Model

Company DescriptionGogo 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 MoneyGogo 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook, with significant achievements in 5G development, equipment sales, and synergy progress. However, challenges such as the decline in ATG aircraft online and delays in military government awards were noted. Overall, the positive developments and increased financial guidance contributed to a positive sentiment.
Q2-2025 Updates
Positive Updates
Successful 5G Development Milestone
Completed the initial end-to-end call using the Gogo 5G chip, with a launch expected in Q4 2025.
Increase in Free Cash Flow
Free cash flow exceeded internal forecasts and consensus expectations, driven by high gross profit due to record equipment revenue.
Record Equipment Sales
Set a record for ATG shipments in Q2 with 405 units, including 276 AVANCE and 129 C1 units.
Positive Developments in HDX and FDX
Shipped 77 HDX units year-to-date and completed 8 HDX STCs, covering 10 aircraft types. Shipped first 3 FDX units.
Strong Performance in GEO Broadband
GEO products and aircraft online grew by 15% year-over-year, with 1,321 aircraft connected to Gogo.
Significant Synergy Progress
Achieved run rate synergies in the $30 million to $35 million range, up from the prior $25 million to $30 million estimate.
Increased 2025 Financial Guidance
Raised key elements of 2025 financial guidance, including revenue and adjusted EBITDA at the high end of previously guided ranges.
Negative Updates
Decline in ATG Aircraft Online
Total ATG aircraft online declined by approximately 4% year-over-year and 2.5% sequentially.
Expected Decrease in Second Half EBITDA
Anticipated that second half EBITDA will decline slightly versus the first half due to planned investments.
Challenges in MilGov Awards
Delays in military government awards were noted, affecting the pace of broadband growth in this sector.
Company Guidance
During the Q2 2025 earnings call, Gogo provided an optimistic outlook on several key metrics and strategic initiatives. The company reported a $62 million adjusted EBITDA, exceeding internal forecasts, and achieved record equipment revenue. Gogo highlighted significant growth opportunities in its GEO solutions and noted a 15% year-over-year increase in aircraft connected to its network, reaching 1,321 units. The company also achieved a milestone with the first 5G aircards, planning a Q4 2025 5G launch. The FCC rip and replace program, offering a $35,000 incentive for C1 installations completed by the end of 2025, supports upgrades to LTE. Gogo's HDX terminals generated $1.7 million in equipment revenue, with eight HDX STCs approved. The company anticipates $30 million to $35 million in synergy cost savings from its merger, having completed most key actions. Looking ahead, Gogo expects 2025 to be an investment year, with the launch of new products driving substantial service revenue growth in 2026 and beyond.

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
65
Positive
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
45
Neutral
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue694.67M444.71M397.58M404.07M335.72M269.72M
Gross Profit446.94M345.67M264.63M268.17M233.52M185.35M
EBITDA107.10M75.54M140.87M157.17M52.31M91.25M
Net Income7.27M13.75M145.68M92.06M152.74M-250.04M
Balance Sheet
Total Assets1.26B1.23B781.54M759.53M647.69M673.59M
Cash, Cash Equivalents and Short-Term Investments102.08M41.77M139.04M175.35M145.91M435.35M
Total Debt897.22M914.93M678.09M785.76M889.15M1.22B
Total Liabilities1.16B1.16B740.81M861.39M967.84M1.31B
Stockholders Equity102.79M69.32M40.73M-101.87M-320.15M-641.11M
Cash Flow
Free Cash Flow40.67M27.92M54.88M53.49M56.83M-141.68M
Operating Cash Flow56.00M41.42M78.97M103.41M65.49M-132.69M
Investing Cash Flow-341.74M-337.20M29.86M-70.42M-24.09M348.40M
Financing Cash Flow225.88M198.69M-120.43M-28.39M-331.04M44.42M

Gogo Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.71
Price Trends
50DMA
9.67
Negative
100DMA
12.02
Negative
200DMA
10.24
Negative
Market Momentum
MACD
-0.10
Negative
RSI
40.37
Neutral
STOCH
40.96
Neutral
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 8.71 is below the 20-day moving average (MA) of 9.14, below the 50-day MA of 9.67, and below the 200-day MA of 10.24, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOGO.

Gogo Risk Analysis

Gogo disclosed 57 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$1.77B15.1622.59%3.37%7.30%21.31%
$48.67B4.58-11.27%4.14%2.83%-41.78%
$1.16B194.429.39%72.74%-90.17%
$930.43M5.81%
$916.62M-30.85%7.62%-5.43%-363.95%
$2.11B-9.45-93.59%9.36%-6.64%-569.94%
$719.70M-20.01-3.93%0.77%16.73%-237.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GOGO
Gogo
8.71
2.16
32.98%
CCOI
Cogent Comms
42.99
-31.40
-42.21%
IRDM
Iridium Communications
16.93
-11.73
-40.93%
SHEN
Shenandoah Telecommunications Co
13.11
-0.63
-4.59%
SIFY
Sify Technologies
12.86
9.58
292.07%
CABO
Cable ONE
154.92
-180.86
-53.86%

Gogo Corporate Events

Gogo Inc Shines in Q2 2025 Earnings Call
Aug 13, 2025

Gogo Inc’s Q2 2025 earnings call painted a picture of robust financial health and strategic foresight, despite facing certain sector-specific challenges. The sentiment was largely positive, buoyed by record equipment revenue and successful 5G technology rollout, although tempered by declines in ATG units and delays in the MilGov sector. Overall, the company showcased strong financial performance and strategic positioning for future growth.

Gogo Inc. Reports Strong Q2 2025 Financial Results
Aug 8, 2025

Gogo Inc. is a leading provider of broadband connectivity services for business and military/government aviation markets, offering a unique combination of Air-to-Ground technology and satellite constellations to ensure global connectivity.

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.Date of analysis: Oct 23, 2025