Gogo Inc (GOGO)
NASDAQ:GOGO
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Gogo
(NASDAQ:GOGO)
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Rating:51Neutral
Price Target:
$4.00
▼(-19.35% Downside)
Action:Reiterated
Date:05/09/26
The score is held back mainly by weakened financial performance (sharp TTM revenue decline, thin net profitability, weaker free cash flow, and leverage constraints) and a technically weak price trend. Partially offsetting these risks are a relatively low P/E valuation and a constructive earnings-call outlook with reiterated 2026 guidance and product/contract momentum, despite near-term cash flow and legacy revenue headwinds.
Positive Factors
Next-generation product momentum (Galileo/5G)
Sustained shipments, growing Galileo aircraft-online and expanding STCs widen the addressable fleet and create a durable upgrade cycle. As OEM line-fit and STC coverage expand, equipment attach rates and future subscription conversions should lift recurring revenue and average lifetime value over multiple quarters.
Negative Factors
High leverage constrains flexibility
A heavily debt-weighted capital structure limits the company's ability to fund transitions or absorb shocks without relying on refinancing or asset sales. Even with planned paydowns, elevated leverage raises interest cost sensitivity and reduces optionality for strategic investments until leverage meaningfully declines.
Read all positive and negative factors
Positive Factors
Negative Factors
Next-generation product momentum (Galileo/5G)
Sustained shipments, growing Galileo aircraft-online and expanding STCs widen the addressable fleet and create a durable upgrade cycle. As OEM line-fit and STC coverage expand, equipment attach rates and future subscription conversions should lift recurring revenue and average lifetime value over multiple quarters.
Read all positive factors
Gogo (GOGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$585.58M
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)10.4
Beta (1Y)1.09
Revenue Growth58.84%
EPS GrowthN/A
CountryUS
Employees790
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding135,238,530
10 Day Avg. Volume1,390,535
30 Day Avg. Volume1,413,560
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 Cap2.34
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda8.77
Forecast
1Y Price Target
$8.67Price Target Upside74.73% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.28
Revenue Forecast (FY)$915.77M
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 primarily makes money by selling in-flight connectivity services and related equipment and support to business aviation customers. A key revenue stream is recurring subscription and service revenue from connectivity plans that provide interne...
Gogo Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presents a constructive transformation narrative: strong execution on next‑generation products (Galileo and 5G), notable fleet and military/government wins, equipment revenue growth (+22% Y/Y) and a sizable sequential improvement in adjusted EBITDA (+41% sequential). However, the company is managing near‑term headwinds including declining legacy service revenue (service revenue -5% Y/Y), ATG aircraft online attrition (-11% Y/Y), negative free cash flow in the quarter (FCF -$19.2M), and a temporarily elevated leverage profile (3.6x) that may rise mid‑year. Management reiterated guidance and emphasized debt paydown, FCC reimbursements and anticipated H2 activation ramps, suggesting confidence in returning to stronger cash generation later in 2026. Overall, the positives around product momentum, commercial and government contract wins, and sequential margin improvement outweigh the current legacy revenue and cash flow challenges.Positive Updates
Galileo Shipments and Fleet Wins
Shipped 92 Galileo terminals in Q1 (82 HDX, 10 FDX), bringing cumulative Galileo shipments to 410 units across 35 STCs covering ~7,000 aircraft; 14 additional STCs underway to expand addressable market to ~8,500 aircraft. Major fleet wins include VistaJet (≈100 in scope as part of >270 planned), Wheels Up (80+ aircraft), and NetJets Europe (committed rollout to be completed in H1 2026); Galileo AOL grew 50% sequentially and management expects a strong ramp as OEM line-fit installations begin in H2.
Negative Updates
Service Revenue and ATG Aircraft Online Declines
Total service revenue was $187.7 million, down 5% year-over-year and 2% sequentially. Total ATG aircraft online (AOL) declined to 6,116, down 11% Y/Y and 4% sequentially, reflecting ongoing deactivations/suspensions in the legacy base.
Read all updates
Q1-2026 Updates
Positive
Negative
Galileo Shipments and Fleet Wins
Shipped 92 Galileo terminals in Q1 (82 HDX, 10 FDX), bringing cumulative Galileo shipments to 410 units across 35 STCs covering ~7,000 aircraft; 14 additional STCs underway to expand addressable market to ~8,500 aircraft. Major fleet wins include VistaJet (≈100 in scope as part of >270 planned), Wheels Up (80+ aircraft), and NetJets Europe (committed rollout to be completed in H1 2026); Galileo AOL grew 50% sequentially and management expects a strong ramp as OEM line-fit installations begin in H2.
Read all positive updates
Company Guidance
Gogo reiterated 2026 guidance calling for total revenue of $905–945 million, adjusted EBITDA of $198–218 million (which the company said includes $3 million of strategic investments and $8 million of ongoing litigation expense), and free cash flow of $90–110 million (midpoint implying roughly 12% year‑over‑year growth); the guidance also cites $30 million slated for strategic investments (net of any FCC reimbursements), net capital expenditures of $20 million assuming $45 million in FCC reimbursement, and contemplates a slight uptick in net‑debt leverage (Q1 net‑debt leverage was 3.6x) in Q2–Q3 before returning to target by Q4 (the company also executed a $21.1 million HPS term‑loan principal repayment in April).Gogo Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
28
Negative
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 906.50M | 910.49M | 444.71M | 397.58M | 404.07M | 335.72M |
| Gross Profit | 479.38M | 537.76M | 278.11M | 264.63M | 268.17M | 233.52M |
| EBITDA | 156.38M | 155.31M | 75.54M | 140.87M | 157.17M | 52.31M |
| Net Income | 13.97M | 12.92M | 13.75M | 145.68M | 92.06M | 152.74M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.30B | 1.23B | 781.54M | 759.53M | 647.69M |
| Cash, Cash Equivalents and Short-Term Investments | 103.54M | 125.21M | 41.77M | 139.04M | 175.35M | 145.91M |
| Total Debt | 889.50M | 961.58M | 914.93M | 678.09M | 785.76M | 889.15M |
| Total Liabilities | 1.16B | 1.20B | 1.16B | 740.81M | 861.39M | 967.84M |
| Stockholders Equity | 118.02M | 101.13M | 69.32M | 40.73M | -101.87M | -320.15M |
Cash Flow | ||||||
| Free Cash Flow | -647.00K | 65.11M | 27.92M | 54.88M | 53.49M | 56.83M |
| Operating Cash Flow | 84.78M | 124.49M | 41.42M | 78.97M | 103.41M | 65.49M |
| Investing Cash Flow | -49.43M | -39.92M | -337.20M | 29.86M | -70.42M | -24.09M |
| Financing Cash Flow | -2.39M | -1.35M | 198.69M | -120.43M | -28.39M | -331.04M |
Gogo Technical Analysis
Positive
4.96
Price Trends
4.32
Positive
4.47
Negative
6.55
Negative
Market Momentum
-0.08
Negative
52.69
Neutral
53.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOGO, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.18, above the 50-day MA of 4.32, and below the 200-day MA of 6.55, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 52.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.83B | 33.97 | 22.76% | 3.30% | 4.05% | -6.99% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $878.51M | -12.36 | -5.04% | 0.97% | 4.44% | -19.31% | |
53 Neutral | $1.17B | ― | -9.10% | ― | 7.56% | ― | |
51 Neutral | $585.58M | 10.42 | 13.03% | ― | 58.84% | ― | |
46 Neutral | $296.58M | 3.62 | -22.76% | 10.11% | -5.27% | -1495.76% | |
45 Neutral | $909.41M | -5.69 | 422.83% | 13.93% | -4.83% | 11.31% |
* Communication Services Sector Average
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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.