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Gogo
(NASDAQ:GOGO)
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Rating:49Neutral
Price Target:
$3.50
▼(-29.44% Downside)
Action:Reiterated
Date:06/03/26
The score is held back primarily by weak recent financial performance (sharp TTM revenue contraction, thin net profitability, softened free cash flow) and a still-leveraged balance sheet. Technicals are neutral with the stock below longer-term moving averages, and valuation is stretched with a high P/E and no dividend support. These are partially offset by a constructive earnings-call outlook with reiterated guidance and improving product traction, but near-term cash flow and leverage headwinds remain.
Positive Factors
Product & Fleet Momentum
Sustained Galileo shipments and growing STC coverage expand the addressable fleet and create a durable installed base. As OEM line-fit and retrofit installs proceed in H2, recurring service revenue potential grows and strengthens long-term revenue visibility once aircraft go online.
Negative Factors
Sharp revenue contraction
A large TTM revenue decline reduces scale, weakens fixed-cost absorption, and heightens sensitivity to churn and activation timing. Durable recovery requires converting equipment shipments into service activations; until online aircraft and ARPA stabilize, earnings power remains impaired.
Read all positive and negative factors
Positive Factors
Negative Factors
Product & Fleet Momentum
Sustained Galileo shipments and growing STC coverage expand the addressable fleet and create a durable installed base. As OEM line-fit and retrofit installs proceed in H2, recurring service revenue potential grows and strengthens long-term revenue visibility once aircraft go online.
Read all positive factors
Gogo (GOGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$478.74M
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)33.3
Beta (1Y)1.26
Revenue Growth58.84%
EPS GrowthN/A
CountryUS
Employees680
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding135,238,530
10 Day Avg. Volume1,581,033
30 Day Avg. Volume2,288,070
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 Cap2.66
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit2.66
Enterprise Value/Ebitda7.92
Forecast
1Y Price Target
$9.50Price Target Upside91.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.28
Revenue Forecast (FY)$914.64M
Gogo Business Overview & Revenue Model
Company Description
Gogo Inc. stands as a premier provider of in-flight broadband connectivity solutions, catering to the aviation industry both within the United States and internationally. Its operations are strategically divided into three key segments: Commercial...
How the Company Makes Money
Gogo makes money primarily by selling aviation connectivity services and related equipment to business aviation customers. A key revenue stream is recurring service revenue from subscriptions or service plans that provide in-flight connectivity ov...
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 | 160.75M | 155.31M | 75.54M | 147.36M | 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 | 903.17M | 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 | -7.17M | 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
Negative
4.96
Price Trends
3.86
Negative
4.16
Negative
5.33
Negative
Market Momentum
-0.07
Negative
45.54
Neutral
52.98
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 4.96 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.86, and below the 200-day MA of 5.33, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 52.98 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 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.15B | 49.35 | 22.76% | 3.30% | 4.05% | -6.99% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $700.93M | -14.67 | -5.04% | 0.97% | 4.44% | -19.31% | |
49 Neutral | $478.74M | 33.30 | 13.03% | ― | 58.84% | ― | |
47 Neutral | $647.50M | -3.45 | 422.83% | 13.93% | -4.83% | 11.31% | |
47 Neutral | $1.09B | -76.87 | -6.79% | ― | 7.56% | ― | |
43 Neutral | $215.17M | -0.75 | -22.76% | 10.11% | -5.27% | -1495.76% |
* Communication Services Sector Average
GOGO
Gogo
3.46
-12.09
-77.75%
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IRDM
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48.86
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SHEN
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12.18
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SIFY
Sify Technologies
14.96
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CABO
Cable ONE
43.01
-76.65
-64.06%
Gogo Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Gogo Shareholders Approve Updated Equity Plan and Board
Positive
Jun 2, 2026
At its 2026 annual meeting held on May 28, 2026, Gogo Inc. shareholders approved an Amended and Restated 2024 Omnibus Equity Incentive Plan, which updates the company’s existing equity program and became effective upon approval, reinforcing ...
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.