Gogo Inc. (NASDAQ: GOGO) reported fourth‑quarter 2025 results that included a $230.6 million revenue beat, a $0.01 per share loss versus a $0.02 consensus estimate, and a net loss of $10.0 million driven by a $10.0 million litigation settlement and a $4.0 million charge related to a convertible note. The company’s revenue exceeded the $223.07 million consensus estimate by $7.53 million, a 3.4% beat, while the earnings miss of $0.01 represented a 150% shortfall relative to expectations.
The revenue growth was largely powered by the December 2024 acquisition of Satcom Direct, which has added more than $30 million in annualized synergies and expanded Gogo’s global multi‑orbit platform. Service revenue rose to $191.9 million, up 61% year‑over‑year, reflecting strong demand for the company’s Galileo and 5G offerings. The acquisition also contributed to a 67% year‑over‑year increase in total revenue, underscoring the strategic value of the deal in accelerating Gogo’s transition from a domestic ATG provider to a global connectivity platform.
The earnings miss was largely attributable to one‑time charges: a $10 million litigation settlement and a $4 million pre‑tax charge for a change in fair value of a convertible note. These items offset the positive revenue momentum and pushed the company into a $0.01 loss per share, a miss of $0.03 versus the $0.02 estimate. The company’s adjusted EBITDA guidance for 2025 remains in the $198–$218 million range, indicating that operating performance is expected to stay in line with prior guidance despite the quarterly loss.
Management guided for 2026 revenue of $905–$945 million, with 80% expected to come from service revenue, and free cash flow of $90–$110 million, representing a 12% year‑over‑year growth at the midpoint. Adjusted EBITDA guidance for 2026 is $198–$218 million. The company’s net leverage ratio at the end of Q4 2025 was 3.3×, and it maintains $122 million of undrawn revolver capacity to support future investment and working‑capital needs.
CFO Zac Cotner said, “The winding down of new product investment, sustained cost synergies from the Satcom Direct acquisition and an expected strong ramp of new product revenue lead to 2026 Free Cash Flow guidance of 12% year‑over‑year growth at the midpoint.” CEO Oakleigh Thorne added, “Uniting the complementary strengths of Gogo and SD marks an exciting new chapter for us as one company. Together, we are uniquely positioned to deliver unparalleled in‑flight connectivity solutions across the underpenetrated global BA and military/government mobility markets.” These comments highlight the company’s confidence in its strategic integration and future growth trajectory.
The results illustrate Gogo’s continued focus on expanding its multi‑orbit platform and capturing higher‑margin service revenue, while also revealing the short‑term profitability pressure from litigation and investment costs. The guidance signals management’s belief that the synergies from Satcom Direct and the ramp‑up of Galileo and 5G services will sustain revenue growth and improve cash flow, even as the company navigates a high leverage profile and one‑time charges that temporarily dent earnings.
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