The lowered guidance and GAAP loss versus a prior-year profit are clear negative signals. However, the 40% military services growth and accelerating Galileo AOL provide some offset — monitor the Q3 2026 call for Galileo/5G unit shipment momentum and litigation update. The $63M cash balance after $61M in outflows in Q2 (earn-out + debt paydown) limits near-term balance sheet risk but free cash flow guidance was cut 24% at midpoint. Traders should watch for potential dilution risk if cash burn continues.
Price Chart
Executive Summary
Gogo's Q2 2026 results came in below consensus with a GAAP net loss of $2.0M ($-0.01 diluted EPS) versus Street estimates of $0.12 EPS, while total revenue of $222.8M missed the $229.4M consensus. The company lowered its full-year 2026 guidance: total revenue now $870M-$895M (from $905M-$945M) and Adjusted EBITDA $175M-$185M (from $198M-$218M), citing higher litigation expense ($22M from $8M) and ongoing product transition costs. The core ATG broadband business continued to decline (-15% AOL YoY), offset by strong military/government service revenue growth (+40% YoY) and Gogo Galileo AOL increasing 66% QoQ to 184 aircraft.
Key Financial Metrics
Key Facts
- Total revenue $222.8M, -1.4% YoY and below $229.4M consensus
- GAAP net loss of $2.0M vs net income of $12.8M in Q2 2025; diluted EPS -$0.01 vs Street consensus $0.12
- Full-year 2026 guidance lowered: revenue $870M-$895M (from $905M-$945M); Adjusted EBITDA $175M-$185M (from $198M-$218M)
- Litigation expense in guidance raised to $22M from $8M
- Total ATG AOL declined 15% YoY to 5,731; business aviation service revenue down 8% YoY
- Military/Government service revenue $39.9M, +40% YoY and +20% sequentially
- Gogo Galileo AOL grew 66% QoQ to 184; cumulative Galileo units shipped reached 518
- Free Cash Flow $21.6M vs $33.5M in Q2 2025; cash balance $63.1M down from $103.5M at Q1 2026 after $40M earn-out and $21.1M debt principal payment
Financial Impact
Revenue miss of ~$6.6M vs consensus; $30-$40M reduction in FY revenue guidance midpoint; Adj. EBITDA guidance lowered $28M at midpoint due to litigation costs and product transition headwinds
Risk Factors
- Guidance lowered on higher litigation costs ($22M vs $8M) — expense could escalate further
- ATG broadband revenue continues structural decline (-15% AOL YoY); legacy transition is under way but disruptive
- Cash burn: $63M cash vs $125M at Dec 2025; $61M deployed in Q2 for earn-out and debt paydown
- Gogo Galileo and 5G ramp are back-half weighted; execution risk on STCs and fleet installations
- Revenue miss (-1.4% YoY; -2% QoQ) shows core business under pressure from legacy ATG headwinds
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-337916 |
| Document: gogo-20260806.htm | 0001193125-26-337916 |
| Document: 0001193125-26-337916-index-headers.html | 0001193125-26-337916 |
| Document: 0001193125-26-337916-index.html | 0001193125-26-337916 |
| Document: 0001193125-26-337916.txt | 0001193125-26-337916 |
| 8-K Data (Synthetic) | 0001193125-26-337916 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 12d ago | Press Release | $2.25 $2.11 | ▼ −6.22% | ▼ −5.21% | $2.37 (+5.11%) |
Aug 6, 2026 11w ago | 8-K | $3.64 $2.83 | ▲ +22.15% | ▲ +22.54% | $2.37 (+34.94%) |
Jul 24, 2026 13w ago | Press Release | $3.99 | awaiting T+5 | — | $2.37 (−40.73%) |
Jul 17, 2026 14w ago | 8-K | $3.51 $3.81 | ▲ +8.55% | ▲ +8.97% | $2.37 (−32.62%) |
Jun 4, 2026 20w ago | Press Release | $4.12 $3.64 | ▼ −11.65% | ▼ −9.10% | $2.37 (−42.60%) |
Jun 2, 2026 20w ago | 8-K | $3.93 $3.40 | ▼ −13.49% | ▼ −9.67% | $2.37 (−39.82%) |
Feb 28, 2026 34w ago | Institutional Cluster | $4.75 $4.94 | ▲ +4.00% | ▲ +5.21% | $2.37 (−50.21%) |
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