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Jun 30
Gogo Q2 2025 Earnings Report
Gogo announced strong second quarter 2025 results, driven by significant revenue growth and improved profitability, largely due to the acquisition of Satcom Direct.
Key Takeaways
Gogo reported a robust second quarter in 2025, with total revenue increasing by 121% year-over-year to $226.0 million, primarily boosted by the Satcom Direct acquisition. Net income saw a substantial rise to $12.8 million, and the company generated strong free cash flow, leading to an increase in its full-year financial guidance.
Total revenue reached $226.0 million, marking a 121% increase year-over-year, with Satcom Direct contributing $122.8 million.
Net income significantly improved to $12.8 million, up from $0.8 million in Q2 2024.
Free Cash Flow was strong at $33.5 million, an increase from $24.9 million in the prior-year period.
The company increased its 2025 financial guidance for revenue, Adjusted EBITDA, and Free Cash Flow, reflecting strong first-half performance.
Gogo
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CapyFin.com Forward Guidance
Gogo increased its 2025 financial guidance to the high end of previous ranges for total revenue, Adjusted EBITDA, and Free Cash Flow, reflecting strong first-half performance and including the impact of global tariffs.
Positive Outlook
- Total revenue expected at the high end of $870 million to $910 million.
- Adjusted EBITDA expected at the high end of $200 million to $220 million.
- Free Cash Flow expected at the high end of $60 million to $90 million.
- Anticipated Q4 2025 launch timing for Gogo 5G.
- Expected 2026 Free Cash Flow growth driven by integration synergies, new product revenue, and wind-down of product investment cycle.
Challenges Ahead
- Guidance includes the potential impact of current tariffs and tariff proposals.
- Strategic initiatives operating expenses for Adjusted EBITDA are approximately $20 million.
- Strategic initiatives for Free Cash Flow are $60 million, net of reimbursements.
- Gross capital expenditures are projected at $90 million, including $75 million in strategic investments.
- No specific longer-term financial targets provided yet, only preliminary targets from the Satcom Direct acquisition announcement.