Gogo NASDAQ: GOGO executives used the company’s first-quarter 2026 earnings call to emphasize what CEO Chris Moore described as a “deliberate transition” away from legacy connectivity services and toward a next-generation portfolio led by Gogo Galileo low-Earth orbit (LEO) connectivity and an upgraded air-to-ground (ATG) 5G network. Management said progress in shipments, installations, and early activations is building, even as near-term service revenue remains pressured by ATG aircraft deactivations and ongoing customer migration from older equipment.
Galileo shipments rise as fleet rollouts expand
Moore said Gogo’s Gogo Galileo platform—offered in two models, HDX and FDX—continues to scale across the company’s customer base. HDX targets smaller aircraft, while FDX supports mid- and large-cabin aircraft. In the first quarter, Gogo shipped 92 LEO terminals, including 82 HDX and 10 FDX, bringing cumulative shipments since launch to 410 units. Moore said the company has 35 commercial supplemental type certificates (STCs) in place, covering an addressable market of about 7,000 aircraft, with 14 additional STCs underway that would expand coverage to roughly 8,500 aircraft over the next few quarters.
Moore highlighted several fleet wins and deployments. He said VistaJet is rolling out Galileo across a fleet with “approximately 100 aircraft currently in scope” as part of a broader plan to equip more than 270 aircraft globally, with installations beginning in Europe and expanding into the U.S. at a pace of roughly one aircraft every nine days. Moore also pointed to Wheels Up rolling out Galileo across “80+ aircraft” and said Gogo expects to complete the committed aircraft rollout with NetJets Europe in the first half of 2026 while beginning installations with NetJets North America.
Looking ahead, Moore said the company expects a “greater ramp of shipments” as installations at multiple OEMs are anticipated to start in the second half of the year and Galileo becomes a line-fit option. In response to a question about the timing of revenue per aircraft improvements, management noted that many Galileo shipments are currently going through maintenance, repair, and overhaul (MRO) channels, with OEM activity expected to pick up in the second half.
ATG transition: record unit sales, 5G pipeline builds
On the ATG side, Moore said enthusiasm for the company’s 5G service remains strong despite a long wait from customers. He reported an all-time quarterly record of 511 ATG units sold, including 52 5G units, and said the pipeline totals more than 500 units. Moore said he expects a “very robust rollout” for the rest of the year, with 5G units online ramping in late third quarter and fourth quarter.
Management also addressed the ongoing transition from the company’s legacy EVDO network. Moore said Gogo recorded record “C1 conversions” of 254 in the quarter as customers upgrade to C1 to support a move from EVDO to LTE. He added that the company received an extension from the FCC for the classic product migration program, moving the completion deadline to Nov. 8, 2026.
Moore said Gogo has allocated “our full approved amount of approximately $334 million” under the FCC reimbursement program to remove and replace covered foreign equipment across the U.S. network and ATG aircraft. He said the extension and funding provide flexibility for customers to transition between services while supporting the company’s 5G and LTE rollout. Moore added that the new LTE network is expected to be fully operational by the end of 2026.
GEO business shows resilience as attrition continues
In the geostationary orbit (GEO) business, Moore said GEO units online declined by 15 in the quarter, an improvement from the net reduction of 22 in the fourth quarter, which he said reflected resilience in the installed base and the strength of OEM relationships. He cautioned that the company expects some attrition in the general aviation fleet as the broader market shifts toward LEO and hybrid solutions, adding that Gogo is monitoring “RFU dynamics” within its customer base.
Moore said the company views GEO as strategically valuable for customers needing global coverage and redundancy, particularly where LEO has regulatory restrictions. He pointed to traction for the company’s Plane Simple Ku-band platform, including AirX selecting the solution to upgrade its Challenger 850 fleet, citing installation simplicity and an end-to-end connectivity approach.
Moore also said the company received U.S. Air Force Mobility Command approval to offer a Plane Simple Ku-band tail mount on the C-130 platform, describing this as opening access to a fleet of more than 1,000 aircraft and a “meaningful new avenue of growth” for GEO within military and government markets. CFO Zachary Cotner later said GEO performance “held up exactly as we thought it would,” and noted the unit declines were largely tied to aircraft sales, consistent with trends discussed in the prior quarter.
Military and government growth and new contract wins
Moore said military and government service revenue rose 7% sequentially versus the fourth quarter of 2025, marking the second consecutive quarter of growth. He attributed demand to geopolitical uncertainty and sovereign communications requirements, and said Gogo sees rising spending beyond the U.S. and NATO as governments modernize secure and airborne networks.
During the quarter, Moore said Gogo secured several contracts and wins, including:
- NOAA contract: More than $8 million over five years.
- U.S. civil government customer: More than $3 million for Galileo and 5G on small to mid-size airframes.
- UAV market wins: Customer wins for both GEO and LEO services for border protection and surveillance, with drone manufacturers anticipated to deliver more than $15 million in revenue over contractual periods.
Moore also said the company adapted the HDX terminal to fit under an existing STC and “escape hatch for a major airframe OEM for European deployment,” which he described as demonstrating the importance of avoiding vendor lock. He added that once the EVDO network is sunset, Gogo expects to operate “the only fully U.S.-based data sovereign ATG network,” which he said may open opportunities previously constrained by national security requirements tied to foreign components in older hardware.
Financial results: revenue dips modestly, EBITDA rises sequentially
Cotner said first-quarter performance met expectations, driven by C1 and 5G demand, “positive Galileo momentum,” and continued growth in military and government service revenue, which helped offset service revenue softness from ATG deactivations.
Gogo reported total revenue of $226.3 million, down 2% versus both the year-ago quarter and the fourth quarter of 2025. Service revenue was $187.7 million, down 5% year-over-year and 2% sequentially. Equipment revenue was $38.6 million, up 22% year-over-year and flat sequentially.
On unit activity, Cotner said the company sold 511 ATG units, up 8% sequentially, including 184 AVANCE units (up 5% quarter-over-quarter) and 327 C1 units (up 10% sequentially). Cumulative C1 units sold reached 1,063. Cotner reiterated that Gogo’s LTE network is expected to come online later in 2026.
Total ATG aircraft online (AOL) ended at 6,116, down 11% year-over-year and 4% sequentially. Advanced AOL represented 79% of total ATG AOL. Average monthly service revenue per ATG aircraft online (ARPA) was $3,351, down 3% from the prior year and flat sequentially. Broadband GEO AOL rose 2% year-over-year to 1,306 but declined by 15 units sequentially.
Net income was $13.1 million, which Cotner said benefited from non-cash items, including a $4.9 million pre-tax reduction to the Satcom Direct earn-out accrual, the non-recurrence of a $10 million litigation accrual recorded in the fourth quarter, and the absence of a prior-quarter $4 million pre-tax convertible note fair value charge.
Adjusted EBITDA was $53.3 million, down 14% year-over-year but up 41% sequentially. Cotner attributed the sequential gain primarily to improved equipment profit from product mix and lower inventory reserves, plus reduced ED&D expenses. He said annualized synergies reached $40 million, exceeding prior targets, and noted ED&D expenses benefited from FCC reimbursement-related cost recoveries.
Free cash flow was negative $19.2 million, compared with $30 million in the year-ago quarter and negative $4.9 million in the fourth quarter. Cotner said cash flow was impacted by a $14 million annual bonus payout and a reduction in accounts payable tied to an inventory ramp for Galileo launches. Gogo ended the quarter with $103.5 million in cash and cash equivalents.
On leverage and debt repayment, Cotner said the company made a $21.1 million principal payment on its HPS term loan facility in April via an excess cash flow sweep. Net debt leverage ended the quarter at 3.6x, and Cotner said management expects leverage to increase slightly in the second and third quarters before returning to the company’s target range by the fourth quarter.
Gogo reiterated full-year 2026 guidance, projecting total revenue of $905 million to $945 million, adjusted EBITDA of $198 million to $218 million (including $3 million in strategic investments and $8 million of ongoing litigation expense), and free cash flow of $90 million to $110 million. Cotner said the outlook assumes a wind-down of new product investment, sustained cost synergies, and an expected ramp in new product revenue, and includes $30 million of strategic investments net of FCC reimbursements and net capital expenditures of $20 million assuming $45 million in FCC reimbursement.
About Gogo NASDAQ: GOGO
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.
Read More
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Gogo, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Gogo wasn't on the list.
While Gogo currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat's analysts have just released their top five short plays for May 2026. Learn which stocks have the most short interest and how to trade them. Click the link to see which companies made the list.
Get This Free Report
