Gogo Inc.

Gogo reported first-quarter 2026 revenue of $226.3 million, down 2% versus both Q1 2025 and Q4 2025. Service revenue was $187.7 million, down 5% year over year and 2% sequentially, while equipment revenue was $38.6 million, up 22% year over year and flat sequentially. Adjusted EBITDA was $53.3 million, down 14% year over year but up 41% sequentially; net income was $13.1 million. The company said total ATG aircraft online was 6,116, down 11% year over year and 4% sequentially, and broadband GEO aircraft online was 1,306, up 2% year over year but down 15 from Q4. For 2026, Gogo reiterated revenue guidance of $905 million to $945 million, adjusted EBITDA of $198 million to $218 million, and free cash flow of $90 million to $110 million; guidance includes $3 million in strategic investments and $8 million of ongoing litigation expense, plus $30 million of strategic investments net of FCC reimbursements and $20 million of net capex assuming $45 million in FCC reimbursement.

Chris Moore framed the quarter as part of a deliberate transition from legacy services to next-generation products, especially Galileo and 5G. He emphasized shipments, installations, and early activations are progressing, with OEM-driven ramps expected in the second half of the year, and said the company is confident in its Galileo pipeline and sees no meaningful change in the competitive landscape. He also highlighted momentum in military and government, where longer contracts and sovereign-connectivity demand are expanding the opportunity set.

Zach Cotner said Q1 met expectations, with stronger equipment profit, lower inventory reserves, and reduced ED&D spending helping offset declines in legacy service revenue. He cited $53.3 million of adjusted EBITDA, $6.1 million of litigation expense in the quarter, and $21.1 million of principal repayment on the HPS term loan in April via an excess cash flow sweep. He ended Q1 with $103.5 million in cash and cash equivalents, net debt leverage of 3.6x, and said leverage should rise slightly in Q2 and Q3 before returning within the target range by Q4.

Analysts pressed management on when Galileo and 5G shipments would translate into aircraft online activity, and Moore said the ramp should build in Q3 and Q4 as OEMs come online, while current Galileo volumes are mostly through MROs. On classic ATG, Moore said the company still expects about 1,000 customer losses over the year, but noted some observed declines are suspensions rather than permanent churn and that customers now have a broadband upgrade path. Management also fielded questions on international Galileo mix and GEO pressure, saying the business is tracking to a roughly 60/40 North America-to-overseas split and that GEO is holding as expected, with declines largely tied to aircraft sales.