Gogo (NASDAQ:GOGO) Releases Quarterly Earnings Results, Misses Expectations By $0.09 EPS

Gogo (NASDAQ:GOGO) released its quarterly earnings results on Friday. The technology company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.09), Briefing.com reports. The company had revenue of $230.56 million for the quarter. Gogo had a positive return on equity of 71.74% and a negative net margin of 0.65%.The firm’s revenue was up 67.3% on a year-over-year basis. During the same period in the previous year, the business posted ($0.22) EPS.

Here are the key takeaways from Gogo’s conference call:

• Gogo expects a major product ramp in 2026 with combined Galileo and 5G shipments to exceed 1,000 units and a path to roughly 700 Galileo aircraft installed by year-end, which management says will generate high?margin recurring service revenue.
• Management provided 2026 guidance of $905M–$945M revenue, adjusted EBITDA of $198M–$218M and free cash flow of $90M–$110M, with strategic spend and net CapEx set to decline—supporting management’s deleveraging and FCF improvement thesis.
• A robust commercial pipeline (over 1,000 aircraft, weighted pipeline >400) plus major fleet and OEM traction — including sustained relationships with NetJets, a VistaJet rollout and additional line?fit/STC wins — should drive long?term installations and recurring service revenue.
• Military and government is a growing diversification vector—MilGov revenue grew 34% YoY (international up 94%), and management highlighted wins and contracts (C?130 hatch mounts, an SES BPA with a $33M ceiling) targeting a large underserved TAM.
• Near?term headwinds remain: ATG aircraft online are expected to decline (management expects ~1,000 net ATG units down by year?end and residual Classic conversions), Q4 equipment margins were negative from write?offs and HDX pricing is near cost, and the company carries substantial debt (?$848M principal, net leverage ~3.3x), which could pressure near?term profitability and working capital needs.

Gogo Trading Down 2.8%

GOGO stock traded down $0.12 during trading on Friday, reaching $4.23. 2,666,258 shares of the stock were exchanged, compared to its average volume of 1,979,858. The company has a current ratio of 1.74, a quick ratio of 1.40 and a debt-to-equity ratio of 7.79. The business has a 50 day moving average price of $4.57 and a 200-day moving average price of $7.34. Gogo has a 1 year low of $3.85 and a 1 year high of $16.82. The firm has a market capitalization of $566.20 million, a price-to-earnings ratio of -84.60 and a beta of 1.04.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Morgan Stanley set a $8.00 price target on Gogo in a research report on Friday, January 16th. William Blair lowered shares of Gogo from an “outperform” rating to a “market perform” rating in a report on Tuesday, December 9th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Gogo in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $12.25.

Insider Buying and Selling at Gogo

In other news, insider Oakleigh Thorne purchased 170,000 shares of the company’s stock in a transaction dated Friday, December 12th. The stock was acquired at an average price of $5.34 per share, with a total value of $907,800.00. Following the purchase, the insider directly owned 954,098 shares in the company, valued at approximately $5,094,883.32. This represents a 21.68% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. 25.78% of the stock is currently owned by company insiders.

Institutional Trading of Gogo

Institutional investors have recently added to or reduced their stakes in the stock. Nantahala Capital Management LLC purchased a new position in shares of Gogo in the 4th quarter valued at about $31,654,000. Vanguard Group Inc. increased its stake in shares of Gogo by 6.3% during the third quarter. Vanguard Group Inc. now owns 6,651,058 shares of the technology company’s stock worth $57,133,000 after buying an additional 396,236 shares during the period. State Street Corp raised its holdings in Gogo by 7.0% in the fourth quarter. State Street Corp now owns 3,136,833 shares of the technology company’s stock valued at $14,618,000 after acquiring an additional 204,296 shares in the last quarter. Millennium Management LLC lifted its stake in Gogo by 774.0% in the fourth quarter. Millennium Management LLC now owns 2,355,573 shares of the technology company’s stock worth $10,977,000 after acquiring an additional 2,086,042 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Gogo by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 1,886,561 shares of the technology company’s stock worth $8,793,000 after acquiring an additional 6,512 shares during the last quarter. Institutional investors and hedge funds own 69.60% of the company’s stock.

About 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.