Gogo (NASDAQ:GOGO - Get Free Report) posted its quarterly earnings results on Thursday. The technology company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.06 by ($0.03), Zacks reports. Gogo had a positive return on equity of 22.55% and a negative net margin of 0.09%.The company had revenue of $222.81 million during the quarter, compared to the consensus estimate of $229.35 million. During the same period last year, the firm posted $0.09 EPS. The company's revenue for the quarter was down 1.4% compared to the same quarter last year.
Here are the key takeaways from Gogo's conference call:
- Galileo adoption accelerated: Gogo shipped 108 Galileo units in Q2, bringing cumulative shipments to 518, while aircraft online rose 66% sequentially to 184. New fleet wins, including Airshare, and additional STC approvals expanded the platform’s addressable market.
- Military and government revenue reached another record: Service revenue increased 40% year over year and 20% sequentially, driven by higher utilization amid geopolitical tensions and longer-term modernization demand. Gogo is also exploring UAV connectivity, which could significantly broaden the opportunity.
- Legacy ATG attrition continued: Total ATG aircraft online fell 6% sequentially to 5,731, with management expecting roughly 1,200 total ATG units online by year-end, including 5G. Some declines reflect migrations to Galileo and 5G, but a portion of the remaining classic customer base is expected to deactivate.
- Full-year guidance was reduced: Revenue guidance is now $870 million to $895 million and adjusted EBITDA guidance is $175 million to $185 million, reflecting delayed Galileo and 5G equipment shipments, product mix, and higher litigation costs. Free cash flow guidance was also lowered to $65 million to $85 million.
- Debt reduction remains the top capital allocation priority: Gogo paid down $21.1 million of term-loan principal and ended Q2 with $63.1 million in cash, but net leverage rose to 3.8 times after funding a $40 million Satcom Direct earn-out payment.
Gogo Stock Performance
Shares of NASDAQ:GOGO traded down $0.01 during midday trading on Friday, reaching $3.63. 2,386,536 shares of the company traded hands, compared to its average volume of 1,476,514. The company has a quick ratio of 1.27, a current ratio of 1.73 and a debt-to-equity ratio of 6.74. Gogo has a 12 month low of $3.02 and a 12 month high of $13.13. The firm has a market capitalization of $490.92 million, a price-to-earnings ratio of 363.00 and a beta of 1.13. The firm's fifty day moving average price is $3.68 and its two-hundred day moving average price is $4.16.
Analyst Ratings Changes
A number of research firms have issued reports on GOGO. Weiss Ratings raised Gogo from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, August 3rd. Wall Street Zen lowered Gogo from a "hold" rating to a "sell" rating in a report on Saturday. Roth Capital restated a "buy" rating on shares of Gogo in a research note on Friday. Finally, Morgan Stanley cut their target price on shares of Gogo from $8.00 to $7.00 and set an "equal weight" rating for the company in a research report on Thursday, May 21st. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Gogo has a consensus rating of "Hold" and a consensus price target of $8.50.
Check Out Our Latest Stock Analysis on GOGO
Institutional Inflows and Outflows
A number of hedge funds have recently added to or reduced their stakes in GOGO. Brighton Jones LLC lifted its holdings in shares of Gogo by 69.6% in the fourth quarter. Brighton Jones LLC now owns 17,000 shares of the technology company's stock worth $138,000 after buying an additional 6,978 shares in the last quarter. AQR Capital Management LLC grew its stake in Gogo by 43.4% during the first quarter. AQR Capital Management LLC now owns 47,219 shares of the technology company's stock valued at $407,000 after acquiring an additional 14,293 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Gogo by 6.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,205 shares of the technology company's stock valued at $338,000 after acquiring an additional 2,342 shares in the last quarter. Millennium Management LLC increased its holdings in Gogo by 439.5% during the 1st quarter. Millennium Management LLC now owns 709,003 shares of the technology company's stock worth $6,112,000 after acquiring an additional 577,575 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Gogo by 23.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 294,173 shares of the technology company's stock worth $2,536,000 after acquiring an additional 56,232 shares during the period. Hedge funds and other institutional investors own 69.60% of the company's stock.
Gogo Company Profile
(
Get Free Report)
Gogo Inc is a leading provider of in-flight connectivity and entertainment solutions for commercial and business aviation. The company specializes in delivering broadband internet, voice and text services, and streaming entertainment to passengers at 35,000 feet. Gogo's offerings include both air-to-ground (ATG) networks and satellite-based connectivity, enabling reliable in-flight internet access across a range of aircraft types.
Gogo's ATG network spans the United States and portions of Canada, using ground towers to transmit data signals directly to equipped aircraft.
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