Q2 2026 Gogo Inc. Earnings Call Transcript
Key Points
- Gogo Inc (GOGO) reported record-breaking performance in its military and government business, with service revenue increasing 40% year-over-year and 20% sequentially, driven by strong demand and increased utilization.
- The company saw significant acceleration in its next-generation product adoption, with Galileo aircraft online increasing 66% sequentially to 184 and 5G unit shipments surging 165% from the first quarter.
- Gogo Inc (GOGO) secured a new fleet win with Airshare, a leading US-based fractional operator, following a successful live demonstration that transferred over 16 gigabytes of data in one hour.
- The company received several key supplemental type certificates (STCs) for its Galileo HDX product, including FAA approvals for the Gulfstream G650/G650ER and EASA approval for the Falcon 7X, expanding its total addressable market.
- Gogo Inc (GOGO) demonstrated strong free cash flow generation, reporting $21.6 million in Q2 compared to negative $19.2 million in the prior quarter, reflecting improved working capital performance.
- The company's GEO business continues to perform ahead of expectations, with over 50 GEO units sold in the first half of the year, as operators invest in incremental capacity and stick with the platform.
- Gogo Inc (GOGO) revised its full-year 2026 guidance downward, with total revenue now expected between $870 million and $895 million, primarily due to timing delays in Galileo and 5G equipment shipments.
- The company increased its litigation expense expectations to $22 million for the year, which accounts for roughly half of the reduction in adjusted EBITDA guidance.
- Total ATG aircraft online declined 15% year-over-year and 6% sequentially to 5,731, reflecting continued customer transitions from the legacy platform and expected deactivations.
- The Galileo FDX product, targeting mid-to-large cabin aircraft, is experiencing slower-than-anticipated adoption due to FAA backlog and delays in STC approvals, impacting the overall rollout timeline.
- Gogo Inc (GOGO) reported a net loss of $2 million for the quarter, impacted by a $7.2 million non-cash increase in the fair value of the Satcom Direct earn-out liability.
- The company's net leverage ratio increased to 3.8 times due to the $40 million Satcom Direct earnout payment, and management expects leverage to fluctuate modestly over the balance of the year.
Good day and thank you for standing by
(Operator Instructions)
Welcome to the Q2 2026 GoGo Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode.
After the presentation, there will be a question-and-answer session. To ask a question during this session, please press *11 on your telephone. You will then hear an automated message advising that your hand is raised.
To withdraw your question, please press *11 again.
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Amy Green. Please go ahead.
Thank you and good morning. Welcome to Gogo second quarter 2026 earnings conference call. On the call today to discuss our results are Gogo CEO Chris Moore and CFO Zach Kotner. During this call, Zach and Chris may make forward-looking statements regarding future events and the future performance of the company. Participants are cautioned to consider the
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