Gogo (GOGO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $226.3 million, down up to 2% year-over-year, with service revenue declining up to 5.5% and equipment revenue rising up to 22%, driven by record ATG unit sales and Gogo Galileo adoption.

• Net income reached $13.1 million, up from $12.0 million in Q1 2025 and a loss in Q4 2025.

• Adjusted EBITDA was $53.3 million, down 14% year-over-year but up 41% sequentially.

• The company is expanding globally with Gogo Galileo and a live 5G network, targeting business and military/government aviation markets.

• Military/government segment saw strong growth, with new contracts and increased demand due to geopolitical factors.

Financial highlights

• Service revenue was $187.7 million, down up to 5.5% year-over-year; equipment revenue increased to $38.6 million, up to 22%.

• Free cash flow was negative $19.2 million, impacted by bonus payouts and inventory ramp for Galileo.

• Cash and cash equivalents stood at $103.5 million at quarter-end.

• Adjusted EBITDA margin was approximately 23.6%.

• Cost of service revenue rose 4.5% to $98.3 million; cost of equipment revenue rose 19.3% to $35.0 million.

Outlook and guidance

• 2026 guidance reaffirmed: total revenue of $905–$945 million, adjusted EBITDA of $198–$218 million, and free cash flow of $90–$110 million.

• Expects 12% year-over-year growth at midpoint, driven by new product ramp and cost synergies.

• Service revenue expected to decline near-term but projected to grow as Gogo 5G and Galileo aircraft come online.

• Capital expenditures expected to decrease as LTE network build nears completion.

• Liquidity is expected to be sufficient for at least the next twelve months.