Gogo (GOGO) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 194.4
• Beta (1Y): 0.97
• 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: 1,168,956
• 30 Day Avg. Volume: 1,869,355
• 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: 2.42
• Enterprise Value/Revenue: 4.06
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 26.31
• 1Y Price Target: $15.50
• Price Target Upside: 77.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• 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 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: Negative
• Last Price: 8.71
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRDM	―	$1.77B	15.16	22.59%	3.37%	7.30%	21.31%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GOGO	―	$1.16B	194.42	9.39%	―	72.74%	-90.17%
SIFY	―	$930.43M	―	―	―	5.81%	―
CABO	―	$916.62M	―	-30.85%	7.62%	-5.43%	-363.95%
CCOI	―	$2.11B	-9.45	-93.59%	9.36%	-6.64%	-569.94%
SHEN	―	$719.70M	-20.01	-3.93%	0.77%	16.73%	-237.78%

Gogo Corporate Events

Gogo Inc Shines in Q2 2025 Earnings Call

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

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.