Gogo Inc (GOGO) (Q3 2026) Earnings Call Highlights: Record Galileo Shipments Offset ATG Decline ...

Release Date: November 06, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Gogo Inc ( NASDAQ:GOGO ) achieved record Galileo shipments of 172 units in Q3 2026, up 59% sequentially and 95% year-over-year, exceeding expectations.

• Galileo aircraft online grew 61% sequentially to 297, demonstrating rapid conversion of shipments to recurring service revenue.

• Gogo Inc ( NASDAQ:GOGO ) secured multiple new fleet commitments, including Textron, PlaneSense, Duncan Aviation, Bombardier, and TransMedics, expanding its customer base.

• Military/government service revenue increased 36% year-over-year to $37.2 million, one of the strongest quarters in the segment's history.

• Gogo Inc ( NASDAQ:GOGO ) completed an amendment and extension of its Term Loan B, extending maturity to October 2030 and committing to $75 million in principal payments by end of 2027, strengthening its balance sheet.

• Free cash flow improved sequentially to $28.1 million, the highest of the year, reflecting disciplined cost management and working capital improvements.

• The court vacated the $22.7 million jury award in the SmartSky litigation, reducing expected litigation expense and providing a potential path to resolution.

Negative Points

• Total revenue declined 5% year-over-year to $213.2 million, driven by the ongoing transition from legacy ATG to next-generation products.

• ATG aircraft online decreased 6% sequentially to 5,399, with ATG equipment units sold down 52% sequentially to 142, reflecting customer attrition and migration.

• Adjusted EBITDA fell 27% year-over-year to $41 million, primarily due to lower high-margin ATG service revenue.

• Galileo equipment carries lower margins than ATG hardware, and aggressive pricing on fleet orders to secure long-term service revenue pressured gross margin, which declined to 40% from 42% in Q2.

• Net loss widened to $3.2 million from $1.9 million in Q3 2025, including a $6.1 million non-cash increase in the Satcom Direct earnout liability.

• Net leverage ratio increased to 4.0 times from 3.8 times at the end of Q2, due to lower trailing 12-month adjusted EBITDA.

• FCC reimbursement assumption was reduced to $35 million from $45 million due to longer processing times, with a portion shifting into 2027.

Q & A Highlights

Q: With the FCC license renewal and recent high-profile spectrum transactions, what is the "highest and best use" for Gogo's spectrum and tower assets, and how developed is that thinking? A: CEO Christopher Moore said Gogo has engaged banking advisors and industry/regulatory specialists to evaluate options. He sees three potential applications for the unique 800 MHz spectrum: unmanned aircraft systems (UAS), terrestrial mobile carriers (referencing the EchoStar transaction), and direct-to-device. He noted the spectrum's favorable propagation (it can penetrate buildings) makes it valuable across all three, and that it may have been undervalued in the past. He declined to elaborate on whether the advisor engagement was prompted by inbound interest, saying it is too early to discuss.

Q: What is the updated outlook for Galileo aircraft online growth into 2027, and what is the expected HDX versus FDX mix? A: CFO Zac Cotner said the mix remains predominantly HDX and, while Gogo is not giving 2027 guidance, the current-year shipment level feels repeatable, especially as OEMs like Textron and Bombardier come online. CEO Moore added that Textron's standard-fit arrangement (no-charge installation on factory-new Latitude and Longitude aircraft starting 2028) reflects strong OEM confidence that should become visible over the next 12 months.

Q: What percentage of ATG deactivations this year are actually customers upgrading to Gogo's newer products rather than leaving? A: CFO Cotner said 71 of the deactivations in the quarter were upgrades to Galileo or 5G that had not yet been activated, with the vast majority being Galileo. He noted this was the highest upgrade level seen to date and that upgrades are starting to accelerate.

Q: How much of the legacy ATG installed base remains at risk, and how much of the Avance base is churning to Galileo versus competitors or simply going away? A: CFO Cotner said Gogo previously anticipated about 200 Classic aircraft would go dark at the end of the year under the prior FCC cutover date, but the extension gives more time to work through them. He still expects the net ATG tail to be down about 1,200 even with 5G. On the Advanced base, he said the quarter saw the lowest number of customers going to competitors, a good sign. CEO Moore added that over half of equipment revenue in the quarter was satellite equipment, a testament to customers combining ATG with LEO or transitioning to LEO.

Q: Is there a timeline for when the ATG business will bottom, and does it now coincide with the FCC cutover being pushed out? A: CEO Moore said it is too early to give exact timing. With the FCC's six-month rip-and-replace extension, Gogo now plans the cutover in Q1 2027, after which it will have more confidence. He noted Galileo momentum is offsetting much of the ATG loss, and each Galileo sale represents a seven-to-10-year customer cycle, so as ATG numbers come down, LEO revenue goes up.

Q: How are geopolitical events and concerns about reliability and sovereignty (e.g., Starlink throttling in Ukraine) affecting the GEO and broader business, and what does the pipeline look like? A: CEO Moore said the high-confidence pipeline remains around 500 aircraft even after a record quarter of closed business, showing the pipeline is being replenished quickly. He cited the three-year price guarantee as a competitive strength and said there may be ARPA opportunity over the next 12 months since Gogo is significantly cheaper than competitors. He believes the geopolitical environment is a tailwind, evidenced by 36% year-over-year growth in the military/government business, and sees new opportunities in UAV/UAS applications.

Q: Is there a growth rate you are comfortable with for the military/government business over the next couple of years? A: CEO Moore declined to discuss specific growth percentages but said he is very optimistic about the segment. He highlighted that Gogo is leveraging its existing aviation-designed product portfolio for government customers rather than repurposing technology, providing cost-effective solutions. He also pointed to UAS opportunities such as counter-drone and border surveillance, noting the value of Gogo's sovereign-based network combining spectrum and deployed towers.

Q: How should we think about litigation expenses in 2027, and what is the expected OpEx structure? A: CFO Cotner said litigation expense should come down dramatically following the court's ruling vacating the $22.7 million SmartSky jury award, and would go away entirely with a global settlement; the current estimate is about half of what was spent this year. He said OpEx excluding D&A should hang out around the high $100 millions to low $200 millions.

Q: What drove the record Galileo shipments in the quarter, and how is the conversion from shipments to aircraft online progressing? A: CEO Moore said Galileo shipments hit a record 172 units, up 59% sequentially and 95% year-over-year, bringing cumulative shipments past 760 units, which he believes represents 35% to 40% market share of LEO business aviation connectivity less than 12 months after launch. Aircraft online reached 297, up 61% sequentially, demonstrating the ability to convert shipments into activations quickly, each representing a seven-to-10-year recurring revenue relationship.

Q: What is driving Galileo service revenue growth beyond new aircraft activations? A: CEO Moore said early customers received introductory discounts that are now expiring and converting to standard service plans, lifting revenue per aircraft. Average monthly service revenue per Galileo aircraft rose 6% sequentially, and he expects this to build through the first half of 2027 as preferential fleet pricing becomes less prominent, with service revenue growing from both new aircraft and higher ARPA on the existing base.

Q: What are the details of the Term Loan B amendment and extension, and how does it support debt reduction? A: CFO Cotner said lenders holding substantially all of the approximately $600 million facility extended the maturity of consenting lenders' loans by about 2.5 years to October 2030. Gogo committed to $75 million of principal payments by the end of 2027, including $25 million paid at closing and $30 million by the end of this year, with total debt repaid including the new amortization schedule at $92 million over the same period. He said the participation reflects lender confidence in

For the complete transcript of the earnings call, please refer to the full earnings call transcript .