Gogo’s business aviation service revenue falls 9%
The company is managing the transition through two parallel tracks.
Gogo’s business aviation service revenue declined 9% year-over-year to $154.4m in the first quarter of 2026, the sharpest drop across its service lines, as legacy air-to-ground aircraft deactivations continued to drag on the segment.
Total revenues came in at $226.3m, down 2%YoY, with the business aviation weakness partially offset by a 14%YoY surge in military and government service revenue to $33.4m and a 22% jump in equipment revenue to $38.6m driven by record ATG unit sales of 511, up 8% from Q4 2025.
Total ATG aircraft online stood at 6,116, down 11%YoY and 4% sequentially, as legacy classic customers continue to deactivate ahead of the planned EVDO network phase out.
Average monthly service revenue per ATG aircraft online declined 3% to $3,351. The pressure is expected to persist through the transition period but Gogo argues the pipeline of next-generation upgrades makes the long-term picture compelling.
“Gogo continues its transformation from a domestic provider of air-to-ground connectivity into a global provider of high-speed broadband to the underpenetrated business and military/government aviation markets,” said Chris Moore, CEO of Gogo.
“Gogo Galileo is scaling globally, our sovereign 5G network is live and gaining traction amongst our business and military/government aviation customers, and our GEO business continues to be resilient.”
The company is managing the transition through two parallel tracks.
On the legacy side, Gogo recorded 254 C1 conversions in Q1, a quarterly record, bringing cumulative C1 units sold to 1,063. C1 is a simple box-swap solution allowing classic ATG customers to migrate to Gogo’s new LTE network rather than churning off the platform entirely.
ATG C-1 aircraft online jumped 69% to 557 from 330 at the end of 2025, indicating that a meaningful portion of the legacy base is staying within the Gogo ecosystem rather than leaving.
On the next-generation side, Gogo Galileo shipped 92 units in Q1, bringing cumulative shipments to 410 across 35 STCs covering an addressable market of approximately 7,000 aircraft.
Galileo aircraft online grew 50% sequentially to 111. During the quarter, the company said it is working with VistaJet to roll out across approximately 100 aircraft with a plan to equip more than 270 globally, Wheels Up deploying across its 80-plus aircraft fleet and NetJets Europe on track for full rollout in the first half of 2026, with North America installations now underway. Fourteen additional STCs are expected in Q2 and Q3, adding a further 1,500 aircraft to the addressable pool.
Adjusted EBITDA of $53.3m declined 14%YoY, with the business aviation service revenue decline being the primary driver, partially offset by cost management and $40m in annualised synergies from the Satcom Direct acquisition exceeding prior targets.
The sequential figures were more encouraging, with adjusted EBITDA up 41% from Q4 2025. Net income was $13.1m. Free cash flow was negative at $19.2m, impacted by $14m in annual bonus payouts. Net leverage stood at 3.6x, with a $21.1m debt principal payment made in April.
Gogo reaffirmed full year 2026 guidance of total revenues of $905m to $945m, adjusted EBITDA of $198m to $218m and free cash flow of $90m to $110m, implying 12%YoY growth at the midpoint, with next-generation product revenue set to offset legacy service headwinds.
