Gogo posts flat revenue growth in third quarter
Gogo is testing its next-generation 5G air-to-ground connectivity network.
Aviation broadband connectivity provider Gogo reported third quarter revenue of $233.6m – a sequential decline of 1% from second quarter of 2025.
“Third quarter revenue was in line with expectations highlighted by strong equipment shipments. Also, adjusted EBITDA free cash flow are ahead of plan as our integration synergies and financial discipline continue to materialise,” said Zachary Cotner, chief financial officer at Gogo during the earnings call.
Revenue breakdown showed third quarter service revenue saw a slight moderation from the second quarter numbers by 2%QoQ to $190m. Meanwhile, equipment revenue saw a sequential growth of 5%QoQ to $33.6m. This increase in equipment revenue bodes well for the company since they are an early indicator for future revenue growth.
Further breakdown of the service revenue showed that satellite broadband remained the leading contributor adding $78.5m to the third quarter topline, followed by ATG broadband and narrowband and other services at $71m and $40.1m, respectively. From a market perspective, the nearly 86% of the total revenue from business aviation with remaining from military and government markets.
In the equipment segment, sales of ATG broadband units led with $17.5m, followed by satellite at $9.5m and narrowband at $6.6m.
The company’s air-to-ground (ATG) equipment units sold in Q3 totalled 437, an all-time record and up 8% sequentially. Of this, during the third quarter, sales of AVANCE units stood at 208 while those of C-1 were 229.
While the total AVANCE ATG aircraft online increased 2% on a sequential basis to 4,890, Gogo reported a 1% decline in average monthly connectivity service revenue per ATG aircraft online at $3,407.
The company booked significantly high cost of service revenue during the three months under review rising to $91.6m. This translated to nearly 41% of the revenue compared to 9% of the revenue in the same period of last year. The company attributed this to the expenses related to the acquisition of Satcom Direct.
The company’s adjusted EBITDA for the quarter clocked in at $56.2m – a decline of 9%QoQ from second quarter of 2025. Gogo also booked $15.7m expense for research and development during the quarter under review.
Meanwhile, total long-term debt and other liabilities at the end of third quarter clocked in at $843m. Of this, $600m were under the 2021 Term Loan Facility and $243.5m were for the HPS Term Loan Facility.
The company booked an interest expense of $17.6m during the quarter under review.
Overall, the company booked a net loss of $1.9m.
Gogo generated $31m of free cash flow in the third quarter, above expectations and totalling $94m year-to-date. The company anticipates fourth quarter free cash flow to be the lowest of 2025 mostly due to the timing of strategic investments and inventory purchase related to the launch of our new products.
The company ended the third quarter with $133.6m in cash in short-term investments.
Gogo reiterated its guidance for 2025 expecting revenue, adjusted EBITDA, and free cash flow to be on the higher end of it.
The company anticipates total revenue at the high end of the range of $870m to $910m, with adjusted EBITDA at the high end of the range of $200m to $220m and free cash flow at the high end of the range of $60m to $90m.
