0001193125-26-082487
SEC filingGogo Inc. reported total revenue of $910.5 million for FY 2025, generating operating income of $114.1 million and net income of $12.9 million. The company's service revenue, which accounted for approximately 84% of total revenue, was driven by connectivity and entertainment services across business aviation and military/government markets. Operating cash flow was strong at $124.5 million, and free cash flow was $89.2 million. The balance sheet shows total assets of $1.30 billion, with significant long-term debt of $833.6 million and stockholders' equity of $101.1 million. The acquisition of Satcom Direct in December 2024 contributed to revenue growth and increased goodwill to $193.2 million.
Gogo Inc. reported total revenue of $910.5 million for FY 2025, a significant increase from $444.7 million in FY 2024, driven largely by the acquisition of Satcom Direct in December 2024. Operating income was $114.1 million, up from $51.3 million in the prior year, while net income was $12.9 million, slightly down from $13.7 million in FY 2024. The company's operating margin improved to 12.5%. Basic earnings per share were $0.10, compared to $0.11 in the prior year. The acquisition contributed to revenue growth and expanded the company's service offerings, particularly in satellite broadband and military/government markets.
Revenue is disaggregated into service revenue ($774.4 million) and equipment revenue ($136.1 million). Service revenue, which accounted for approximately 84% of total revenue, includes satellite broadband ($316.6 million), ATG broadband ($288.6 million), and narrowband and other services ($169.2 million). By market, business aviation contributed $657.9 million, and military/government contributed $116.5 million. Equipment revenue, representing 15% of total revenue, includes sales of satellite broadband ($34.7 million), ATG broadband ($76.2 million), and narrowband equipment ($25.2 million). The Satcom Direct acquisition significantly boosted satellite broadband and military/government revenue segments.
Gross profit is not explicitly stated in the XBRL data, but operating income was $114.1 million, resulting in an operating margin of 12.5%. Operating expenses totaled $796.4 million, including cost of service revenue ($372.7 million), cost of equipment revenue ($134.7 million), and SG&A expenses ($229.6 million). Depreciation and amortization expense was $60.3 million. The company's net income margin was 1.4%. Adjusted EBITDA, a non-GAAP measure, was $217.8 million, up from $142.5 million in FY 2024, reflecting improved operational performance post-acquisition.
Net cash provided by operating activities was $124.5 million, up from $41.4 million in FY 2024. Free cash flow was $89.2 million. Investing activities used $39.9 million, primarily for capital expenditures ($75.2 million), partially offset by proceeds from the FCC Reimbursement Program ($29.3 million). Financing activities used $1.4 million, mainly for debt repayments. The balance sheet shows total assets of $1.30 billion, including cash and equivalents of $125.2 million, goodwill of $193.2 million, and intangible assets of $248.8 million. Total liabilities were $1.20 billion, with long-term debt of $833.6 million. Stockholders' equity was $101.1 million.
Management expects capital expenditures to decrease as the build-out of the LTE network related to the FCC Reimbursement Program nears completion and investments in Gogo 5G are finalized. The company believes its cash, cash equivalents, cash flows from operations, and access to revolving facilities will be sufficient to meet business needs for at least the next twelve months. Key risks include dependence on third-party satellite networks, supply chain disruptions, regulatory compliance (e.g., FCC Reimbursement Program deadlines), and ongoing litigation, such as the SmartSky patent infringement case, which resulted in a $22.7 million jury verdict in November 2025. The company is seeking extensions for the FCC Reimbursement Program completion deadline beyond May 8, 2026.