Gogo’s stock slides despite strong revenue, earning report

BROOMFIELD — Gogo Inc. (Nasdaq: GOGO), a Broomfield-based provider of broadband connectivity services for the business and military/government mobility aviation markets, reported a surge in revenue for the second quarter, driven in part by the company’s December acquisition of Satcom Direct LLC.

The company reported revenue of $226 million, up 121% from the same period a year ago. Satcom contributed revenue of $122.8 million, compared with $121.9 million the prior year.

Net income totaled $12.8 million, or 9 cents per share, up from $839,000 in the second quarter of 2024.

“Our first half results demonstrate the strategic value and well-executed integration of the Satcom Direct-Gogo merger,” Chris Moore, CEO of Gogo, said in an earnings release. “We see significant demand for broadband performance improvements in our markets and we’re well positioned to meet that demand as we bring Gogo 5G and Galileo to market this year.”

Gogo announced that it was increasing its 2025 financial guidance to the high end of its previous ranges for revenue of $870 million to $910 million.

“As a result of strong first half results, we’re increasing our 2025 financial guidance to the high-end of our previous ranges for revenue, Adjusted EBITDA and Free Cash Flow,” said Zac Cotner, chief financial officer of Gogo. “We expect 2026 Free Cash Flow growth driven by integration synergies, new product revenue, the wind-down of our three-year product investment cycle, and a potential refinancing in the coming quarters.”

Despite the strong revenue and earnings report, Gogo’s stock declined 21.39% Thursday, the day of the earnings announcement, dropping to $12.05 from $15.31 the prior day. The stock rebounded slightly Friday, closing at $12.19.

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