Gogo | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 226.32 M

Revenue: As of FY2026 Q1, the actual value is USD 226.32 M, missing the estimate of USD 234.99 M.

EPS: As of FY2026 Q1, the actual value is USD 0.1.

EBIT: As of FY2026 Q1, the actual value is USD 47.38 M.

Total Revenue

Total revenue for Gogo Inc. was $226.3 million in Q1 2026, marking a 2% decrease compared to Q1 2025 and Q4 2025, respectively.

Segment Revenue

• Equipment Revenue: Equipment revenue reached $38.6 million in Q1 2026, an increase of 22% compared to Q1 2025 and flat compared to Q4 2025.
  • Satellite broadband equipment revenue was $12,413 thousand in Q1 2026, up from $6,375 thousand in Q1 2025.
  • ATG broadband equipment revenue was $19,654 thousand in Q1 2026, up from $18,672 thousand in Q1 2025.
  • Narrowband and other equipment revenue was $6,520 thousand in Q1 2026, down from $6,648 thousand in Q1 2025.
• Service Revenue: Service revenue was $187.7 million, a decrease of 5% compared to Q1 2025 and 2% compared to Q4 2025.
  • Business aviation service revenue was $154.4 million, decreasing 9% compared to Q1 2025 and 4% compared to Q4 2025.
  • Military / Government service revenue was $33.4 million, increasing 14% compared to Q1 2025 and 7% compared to Q4 2025.
  • Satellite broadband service revenue was $80,102 thousand in Q1 2026, up from $77,679 thousand in Q1 2025.
  • ATG broadband service revenue was $64,802 thousand in Q1 2026, down from $75,970 thousand in Q1 2025.
  • Narrowband and other service revenue was $42,828 thousand in Q1 2026, down from $44,963 thousand in Q1 2025.

Net Income

Net income for Gogo Inc. was $13.1 million for Q1 2026, which includes a $4.9 million pre-tax reduction to the earn-out accrual related to the Satcom Direct acquisition. This net income compares to $12.0 million in Q1 2025 and - $10.0 million in Q4 2025.

Adjusted EBITDA

Adjusted EBITDA was $53.3 million, representing a 14% decrease compared to Q1 2025 and a 41% increase compared to Q4 2025. Adjusted EBITDA includes $6.1 million of expense incurred for ongoing litigation matters.

Operating Expenses (Q1 2026 vs Q1 2025)

• Cost of service revenue was $98,314 thousand, increasing 4.5%.
• Cost of equipment revenue was $34,988 thousand, increasing 19.3%.
• Engineering, design and development expenses were $6,492 thousand, down from $13,875 thousand.
• Sales and marketing expenses were $13,491 thousand, down from $14,210 thousand.
• General and administrative expenses were $26,208 thousand, down from $29,519 thousand.
• Depreciation and amortization was $15,139 thousand, up from $14,143 thousand.
• Total operating expenses were $194,632 thousand, down from $195,120 thousand.

Operating Income

Operating income was $31,687 thousand in Q1 2026, down from $35,187 thousand in Q1 2025.

Cash Flow

Net cash used in operating activities was - $7.2 million in Q1 2026, a decrease from $32.5 million in Q1 2025 and $8.5 million in Q4 2025. Free Cash Flow was - $19.2 million in Q1 2026, down from $30.0 million in Q1 2025 and - $4.9 million in Q4 2025. Free Cash Flow in Q1 2026 was impacted by annual bonus payouts of $14 million and a reduction in accounts payable and accruals related to inventory purchases.

Cash and Cash Equivalents

Cash and cash equivalents were $103.5 million as of March 31, 2026, compared to $125.2 million as of December 31, 2025, and $70.3 million as of March 31, 2025.

Debt and Payments

Gogo Inc. made a $40.0 million earn-out payment in April 2026 related to the Satcom Direct acquisition. Gogo Inc. also made a $21.1 million principal payment in April 2026 on the HPS term loan facility.

Operational Metrics (as of March 31, 2026)

ATG equipment units sold in Q1 2026 totaled 511, an all-time record, up 8% compared to Q4 2025. Gogo Galileo equipment units shipped in Q1 2026 totaled 92, down 42% compared to Q4 2025, with cumulative shipments reaching 410 units. Total ATG Aircraft Online (AOL) was 6,116, decreasing 11% versus Q1 2025 and 4% versus Q4 2025. ATG AVANCE AOL was 4,851, increasing 3% compared to March 31, 2025, and decreasing 2% compared to December 31, 2025. ATG C-1 AOL was 557, increasing 69% from 330 as of December 31, 2025. Broadband GEO AOL was 1,306, increasing 2% compared to March 31, 2025, and decreasing 1% compared to December 31, 2025. Gogo Galileo AOL was 111, increasing 50% from 74 as of December 31, 2025. Average monthly connectivity service revenue per ATG aircraft online was $3,351, down from $3,451 in Q1 2025.

Outlook / Guidance (2026)

Gogo Inc. reaffirms its 2026 financial guidance, projecting total revenue between $905 million and $945 million, with approximately 80% from service revenue and 20% from equipment revenue. Adjusted EBITDA is expected to range from $198 million to $218 million, including $3 million in strategic investments and $8 million in ongoing litigation expense. Free Cash Flow is anticipated to be between $90 million and $110 million, based on net cash provided by operating activities of $108 million to $128 million, and includes $30 million for strategic investments.