Gogo Inc. Q4 FY2025 earnings call

Chris Moore discussed progress in merging GoGo and Satcom Direct, including PMA approvals for HDX and FDX Galileo antennas, OEM agreements, 5G chip fabrication, and growth in aircraft online. Zach Kottner presented financials, noting revenue, margin, and synergy progress. Mentioned market opportunities in business aviation and MilGov, strategic initiatives like Galileo and 5G, and FCC reimbursement program

Total revenue was $230.3 million, up 121% year-over-year and 67% sequentially. Total service revenue was $198.6 million, up 143% over prior year and 67% QoQ. Equipment revenue was $31.7 million, up 40% YoY and 67% QoQ. Service margins were ~53% inclusive of Satcom Direct, standalone GoGo service margin ~77%. Adjusted EBITDA was $62.1 million. Geo broadband aircraft online up 16% YoY to 1,280. Advanced AOL reached 4,716, 68% of total ATG fleet

Reiterated 2025 financial guidance: revenue $870 - $910M, adjusted EBITDA $200 - $220M, free cash flow $60 - $90M. Galileo HDX service revenue to ramp in 2026, 5G launch in Q4 2025

Potential impact of tariffs on manufacturing, though modest exposure and manageable within guidance. Also, market competition and macroeconomic uncertainties affecting customer base

Q: Size of tariff impact baked into guidance?

A: ~$5M, half EBITDA, half working capital.

Q: Customer base proportions?

A: Diverse, no major impacts seen.

Q: SATCOM growth breakdown?

A: Mostly geo broadband.

Q: 5G chip milestones?

A: Fabrication complete, packaging and bring-up ongoing.

Q: MilGov trends?

A: Increased overseas demand, focus on commercial solutions for government