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- **New Product Momentum**: 1,000+ aircraft pipeline for HDX/5G, VistaJet deal for 270 aircraft, and 5G launch in Q4 2025.
- **Financial Strength**: $94M free cash flow YTD, reiterating $200-220M EBITDA guidance, and FCC reimbursements covering 80% of CapEx.
- **Growth Catalysts**: 5G ARPU 2x Classic, HDX/FDX installations ramping in 2026, and gov contracts targeting 20%+ revenue mix.
- **Near-Term Challenges**: Q4 EBITDA down 27% QoQ due to 5G testing costs and ATG AOL decline, but 2026 free cash flow growth expected.

**【CEO Opening Remarks】**
- Highlighted progress on new products (5G, HDX, FDX) and global contract wins, positioning Gogo for long-term growth.
- Emphasized strong demand trends in business aviation (30% above pre-COVID levels) and underpenetrated market (25% broadband adoption globally).
- Highlighted VistaJet deal (270 aircraft upgrades) and pipeline growth (1,000+ aircraft across HDX/5G, up 100% YoY), with 60% U.S. mix.

**【CEO Product Updates】**
- **HDX**: 19 STCs completed (vs. 8 in Q2), 200 units shipped YTD (3x Q2), 50 installations underway. Targeting 2026 ramp for AOL growth.
- **FDX**: Flight tests achieved 200 Mbps speeds, 36GB data in 36 mins. Announced line-fit with Bombardier for 2027+ revenue.
- **5G**: Flight testing exceeded expectations, Q4 launch confirmed. 400 pre-provisioned customers to begin service in Q1 2026.
- **LTE Upgrade**: 437 equipment shipments (record high), 145 Classic-to-AVANCE upgrades. AVANCE AOL at 75% of fleet, targeting 100% by 2026.

**【CEO Military/Gov Update】**
- 13% of revenue from gov contracts, targeting 20%+ long-term. Won 5-year federal contract for multi-orbit services and $33M SES Space & Defense deal.

**【CFO Financial Summary】**
- Q3 Revenue: $224M (down 1% YoY). Service Revenue: $190M (up 132% YoY). Adjusted EBITDA: $56.2M (25% margin).
- Free Cash Flow: $31M (Q3) / $94M (YTD). Reiterating 2025 Guidance: Revenue $870-910M, EBITDA $200-220M, Free Cash Flow $60-90M.
- Key Drivers: Equipment revenue up 80% YoY, 5G/Galileo investments ($6M/5G, $1.2M Galileo OpEx), FCC reimbursements ($6.6M Q3).
- Challenges: ATG AOL decline (7% YoY) due to Classic fleet attrition, 5G launch costs (~$40M 2025).

**【Q&A Highlights】**
- **Q4 EBITDA Guidance**: ~$40M (down 27% QoQ) due to ATG margin pressure, 5G testing costs, and inventory build.
- **Classic Transition**: 1,100 Classic aircraft remain uncommitted. C1 upgrades (3x faster than Classic) and 5G line-fits will drive ARPU uplift (5G ARPU 2x Classic).
- **ARPU Outlook**: 2026 ARPU stabilization as 5G/5G+ adoption accelerates (50-80Mbps speeds vs. 5Mbps Classic).
- **Gov Shutdown Impact**: Minimal on FCC reimbursements, but potential delays in military contract approvals.


Gogo Inc. (GOGO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GOGO

GOGO fundamentals

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