Gogo (NASDAQ:GOGO) reported fourth-quarter 2025 results that management said were largely in line with expectations, while highlighting progress on a product transition aimed at repositioning the company as a global, multi-orbit in-flight connectivity provider for business aviation and military/government customers.
On the call, CEO Chris Moore emphasized 2025 execution around new products—Gogo 5G and Gogo Galileo (with HDX and FDX models)—and said the company is moving from a primarily U.S. air-to-ground (ATG) business to a broader portfolio spanning multiple connectivity technologies and geographies. CFO Zach Cotner said 2025 revenue, Adjusted EBITDA, and free cash flow ended at the high end of guided ranges, citing cost controls and synergy capture that offset product investments.
New product ramps: Galileo and 5G
Gogo Galileo, the company’s low-earth-orbit (LEO) connectivity service, operates on the Eutelsat OneWeb satellite network. Moore said HDX was designed to fit the full global business aircraft fleet, while FDX targets large-cabin aircraft. He said Gogo’s Galileo pipeline includes more than 1,000 aircraft, with a weighted pipeline of more than 400 aircraft, and that the pipeline mix remains about 60% U.S. and 40% international.
Progress on supplemental type certificates (STCs) was another focal point. Moore said Gogo has completed 35 HDX and FDX STCs across the U.S., Europe, Brazil, and Canada, covering 34 aircraft models and a total addressable market of more than 4,000 aircraft. He added the company expects 20 more STCs in the first half of 2026 and highlighted FAA validation for Bombardier Challenger models and EASA validation for the Dassault Falcon 2000.
Moore said Gogo shipped more than 300 HDX and FDX antennas in 2025, with 84% going to named customers. By the end of 2026, management expects nearly 900 Galileo antennas shipped. With a stated 3-to-6 month ship-to-install timeline, Moore said the company sees a potential path to 700 Galileo aircraft installed by the end of 2026.
On Gogo 5G, Moore said the first 5G aircraft was activated in December, “true network availability started last month,” and 5G service commenced in the first quarter. He said the company expects 5G activations to ramp through 2026 and noted five 5G license deals with OEMs, with two already installing AVANCE L5 boxes on production lines that will later be swapped for LX5 5G boxes upon activation.
Gogo also updated 5G pricing, positioning it as a lower-cost speed upgrade versus its current L5 solution. Moore said unlimited-data service pricing is $5,500 per month, with 5G equipment MSRP of $100,000. For 2026, management expects to ship more than 500 5G boxes and reach nearly 400 5G aircraft online by year-end.
ATG modernization and LTE upgrade supported by FCC reimbursement
The company’s ATG business continued to reflect a transition away from older “Classic” equipment. Moore said the LTE upgrade of the ATG network—expected to be largely subsidized by FCC funding—should accelerate Classic upgrades, increase network capacity, and support U.S. government ATG demand with enhanced security.
In the fourth quarter, Gogo shipped a record 472 ATG equipment units, split between 175 AVANCE units and 297 C1 units. Management said the C1 strategy is working, with C1 aircraft online rising to 313 in Q4 from 101 in Q3 and an expectation to end 2026 at around 800.
AVANCE aircraft online grew 8% year-over-year to 4,956 and represented 77% of the ATG fleet. Classic aircraft online ended the year at about 1,100, or 17% of the fleet, and Moore said the company expects Classic aircraft online to reach zero sometime in Q4 2026.
Fleet and OEM momentum, including NetJets and line-fit wins
Moore highlighted global fleet operators as a major growth lever for Galileo, stating Gogo sees an opportunity to provide Galileo service to 1,000 aircraft across fleet customers and expects about one-third of 2026 Galileo shipments and aircraft online to be tied to global fleet accounts. He said HDX installations for VistaJet began in November and will ramp through 2026, and referenced VistaJet’s announced Bombardier order for 40 Challenger 3500 aircraft with options for additional jets.
NetJets was also discussed during Q&A. Moore said NetJets “remain a customer,” with expansion in Europe and a “technical transformation” underway, and characterized Galileo as the largest opportunity within that relationship. Cotner later said Gogo’s 2026 assumptions include an extension related to the Classic sunset timeline and that the total ATG portfolio (including the effect of 5G) is expected to be down about 1,000 units by year-end, with roughly 100 Classics assumed not to convert by year-end.
On OEM line-fit opportunities, Moore reiterated HDX line-fit availability at Textron for certain models later in 2026 and said FDX will be a LEO line-fit option for new Bombardier Challenger and Global aircraft, with revenue expected in early 2027. He added that Gogo has secured another line-fit option win with a major global OEM for both HDX and FDX, with an official announcement expected before the end of 2026.
Financial results and 2026 guidance
Cotner reported fourth-quarter revenue of $231 million, up 3% year-over-year on a combined pro forma basis. Total service revenue was $192 million, up 61% year-over-year and up 1% sequentially. ATG aircraft online ended Q4 at 6,402, down 9% year-over-year and down 2% sequentially, while total ATG ARPU was $3,378, down 3% year-over-year, which Cotner attributed largely to pricing reductions on certain unlimited plans ahead of new 5G pricing.
Equipment revenue in Q4 was $39 million, up 104% year-over-year and up 15% sequentially. Cotner said equipment margins were negative in the quarter due to a write-off of legacy equipment and noted HDX equipment pricing remains close to cost. Combined service margins were 50%.
Adjusted EBITDA in Q4 was $37.8 million. Net income was negative $10 million, affected by a $10 million litigation settlement accrual, a $4 million charge tied to a valuation adjustment on a supplier investment, and a legacy equipment write-down. Operating expenses excluding depreciation and amortization were $58.2 million, including $8.4 million of litigation expense.
For 2025, Gogo generated $89.2 million of free cash flow, at the high end of its guidance range, though free cash flow was slightly negative in Q4 due to a $17 million inventory build tied to new products and lower EBITDA. Cotner said the company ended Q4 with $125.2 million in cash and short-term investments, $848 million in term-loan principal, and an undrawn $122 million revolver, with net leverage of 3.3x—within its targeted 2.5x to 3.5x range.
Gogo’s 2026 guidance calls for:
- Total revenue: $905 million to $945 million (about 2% growth at the midpoint), with 80% from service and 20% from equipment
- Adjusted EBITDA: $198 million to $218 million
- Free cash flow: $90 million to $110 million (about 12% growth at the midpoint)
Cotner also said 2026 guidance assumes about $30 million of strategic investments (net of FCC reimbursement), net capex of $20 million after $45 million of FCC reimbursement, and excludes an estimated $40 million earn-out payment expected in April.
Military and government: growth and contract activity
Moore said military and government aviation revenue grew 34% year-over-year and international growth was 94%, though the impact was muted by the wind-down of legacy land mobile narrowband service, which he said is expected to largely complete in 2026. He described global defense spending as rising and said Gogo is in discussions with agencies including the U.S. Department of Defense, NATO, Brazil, and customers in the Middle East and Southeast Asia.
Moore also cited UAV and ISR opportunities and referenced several recent developments, including U.S. Air Force mobility approval to sell Plane Simple Ku-band hatch mounts to C-130 aircraft, a multi-orbit win to provide LEO/GEO/5G connectivity to a division of the U.S. government, and a five-year contract with SES Space & Defense for a blanket purchase agreement through U.S. Space Force Space Systems Command with a $33 million ceiling.
Looking ahead, management repeatedly framed 2026 as a year where equipment shipments—followed by installations and activations—are expected to begin translating into new service revenue streams, while legacy ATG and GEO dynamics continue to influence the near-term revenue mix.
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.
