GOGO

Business Transformation Progress

• GoGo is transitioning from a domestic air-to-ground connectivity provider to a global high-speed broadband provider serving business aviation and military/government markets, with a growing next-generation product portfolio including GoGo Galileo (HDX for smaller aircraft, FDX for mid/large cabin aircraft), 5G ATG, and legacy GEO offerings.
• 108 Galileo units were shipped in Q2, cumulative shipments hit 518, and online aircraft grew 66% sequentially to 184, demonstrating accelerating conversion from shipments to operational, revenue-generating deployments. Three-year secured pricing for Galileo is resonating with customers seeking cost and operational predictability.
• New fleet wins and certifications: Added Airshare as a new Galileo HDX fleet customer, and secured multiple key STCs that materially expanded Galileo's total addressable market, including approvals for popular long-range business jets and government special mission aircraft. The line-fit ramp with OEMs is on track for H2 2026.
• 5G ATG adoption grew sharply, with shipments up 165% sequentially. The majority of the legacy ATG customer base has already converted to next-generation hardware, so most conversion risk is now behind the company.
• The FCC-mandated equipment removal and replacement program remains on track to meet the November 8, 2026 completion deadline, with reimbursements offsetting program costs as expected. Upon completion, GoGo will operate the only fully US-based data-sovereign ATG network.

Market and Strategic Positioning

• GEO continues to perform ahead of expectations, remaining strategically valuable for customers that benefit from its global coverage, particularly in regions where LEO faces regulatory constraints. Gogo is the leading provider of GEO services in business aviation.
• The current geopolitical environment has driven strong sustained demand for secure airborne connectivity, and GoGo's existing contracted blanket purchase agreements allow incremental demand to convert directly to revenue without new procurement cycles.
• Early progress is being made on expanding GoGo networks to serve unmanned aerial vehicles (drones), which could significantly expand the total addressable market for the MilGov segment.

Financial and Capital Strategy

• The evolving product portfolio is increasing revenue resilience and visibility, diversifying revenue across multiple solutions and end markets.
• MilGov's longer-duration contracts add revenue stability that is less dependent on business aviation cycles, supporting the company during the product transition.
• The highest near-term capital allocation priority continues to be debt reduction, targeting a net leverage ratio of 2.5x to 3.5x.

• Full year 2026 total revenue guidance was revised to a range of $870 million to $895 million, with approximately 84% coming from service revenue and 16% from equipment revenue. The downward revision is driven by delayed timing of Galileo and 5G equipment shipments in the second half of the year.
• Full year 2026 service revenue guidance is essentially unchanged from prior expectations, as stronger-than-expected performance from MilGov and GEO has fully offset softer-than-anticipated ATG service revenue.
• Adjusted EBITDA guidance was revised to $175 million to $185 million, including approximately $5 million in strategic investments and $22 million in ongoing litigation expense. Approximately half of the downward adjustment from prior guidance comes from higher expected litigation costs, with the remainder from service revenue product mix shifts.
• Net capital expenditures are still expected to be approximately $20 million, factoring in $45 million in expected FCC reimbursements.
• Full year 2026 free cash flow guidance was revised to a range of $65 million to $85 million, reflecting the adjusted EBITDA outlook with no changes to planned capital spending.

1. GoGo Galileo (Global LEO): 108 units shipped in Q2 2026, bringing cumulative shipments to 518 units (17% sequential increase). 184 Galileo aircraft are online, a 66% sequential increase. This segment is in early growth and driving new customer adoption.
2. Next-Generation ATG (including 5G and C1): 138 5G units sold in Q2 2026, up 165% sequentially from Q1 2026's 52 units. 83 C1 units were shipped, ending the quarter with a record 690 C1 systems online (24% sequential increase). Total ATG aircraft online ended the quarter at 5,731, down 15% year-over-year and 6% sequentially, driven by planned legacy customer transitions to newer products. 4,603 advanced units are online, with a slight sequential decline largely explained by transitional factors rather than customer loss. Legacy ATG service revenue is in expected decline, offset by growth in newer ATG products.
3. Geostationary Earth Orbit (GEO): GEO aircraft online remained stable quarter-over-quarter at 1,306, down 1% year-over-year. Performance exceeded management expectations, with over 50 GEO units sold in the first half of 2026. GEO remains a strategically valuable component of GoGo's multi-network offering.
4. Military and Government (MilGov): This segment delivered a record quarter, with service revenue increasing 40% year-over-year and 20% sequentially. It contributes ~19% of total Q2 2026 service revenue, up from ~13% year-over-year.

• Delays in STC approvals for Galileo (particularly for the FDX model for mid to large aircraft) due to FAA backlogs are pushing out shipment and activation timelines, creating pressure on near-term equipment revenue.
• Integration of Galileo into OEM factory line-fit processes is taking longer than initially anticipated, slowing near-term product ramp.
• Ongoing litigation (against SmartSky) is creating higher-than-expected operating expenses, pressuring full-year profitability.
• Net leverage increased in Q2 2026 following the $40 million SATCOM Direct earn-out payment, and is expected to fluctuate modestly for the remainder of the year before trending down over time.
• Legacy ATG revenue continues to decline as customers either deactivate service or transition to newer GoGo products, creating ongoing top-line pressure that must be offset by growth in new segments.

Q: What is the updated end-of-year 2026 outlook for Galileo aircraft online, and what is the long-term growth opportunity for the MilGov segment? / A: Management now expects total Galileo aircraft online to reach the mid-500s by the end of 2026, down from the prior target of 600. For MilGov, near-term high demand is driven by heightened activity in the Middle East, while the long-term opportunity is global, as governments worldwide modernize their secure airborne communications infrastructure. Adaptation of the commercial Galileo platform for military use creates favorable cost structures, and early progress in the drone market could significantly expand the segment's total addressable market. Management expects the segment to grow as a share of total revenue but did not provide a specific target for 2027.

Q: What drove the downward revision to full-year guidance, and how is the litigation expense expected to impact operating expenses through the end of 2026 and into 2027? / A: The largest driver of the guidance revision is slower-than-expected Galileo and 5G equipment shipments, driven by FAA STC approval backlogs and slower-than-planned integration of Galileo into OEM factory line-fit processes. Despite these shipment delays, full-year service revenue guidance remains unchanged, as stronger performance from MilGov and GEO fully offset ATG softness. The higher-than-expected litigation expense (related to SmartSky) is concentrated in 2026. Normalized operating expenses (excluding litigation) are expected to stay in the mid-to-high $40 million range per quarter, with minor expected increases for engineering milestone payments pushed from Q2 to later quarters.

Q: What is the expected net ATG aircraft roll-off for full-year 2026, and will GEO aircraft online remain stable through the end of the year? / A: Management expects ~1,200 total net ATG aircraft roll-off for full-year 2026, including all ATG variants. After adjusting for the planned NetJets fleet transition and customer upgrades to 5G or Galileo, underlying ATG deactivation rates were flat quarter-over-quarter, with no new unexpected dynamics. For GEO, performance has improved, with over 50 units sold in the first half of 2026. Only minor unit declines are expected for the full year, as most movement is driven by aircraft sales cycles rather than customer attrition, and GEO's unique global positioning continues to attract customers. Gogo is the leading GEO provider in business aviation, supporting stable performance.

Q: Can you provide an update on the drone opportunity for the MilGov segment, including progress and upcoming milestones? / A: GoGo already serves the drone market via its existing GEO network, and is expanding drone coverage to both Galileo and the upgraded 5G ATG network. The upgraded US 5G ATG network, resulting from the FCC reimbursement program, makes the technology particularly well-suited for US government drone applications. The company is currently conducting product development and proof-of-concept testing, with no details available for public release. GoGo is also a prime contract holder on the Golden Dome program, which creates additional domestic and international opportunities in the drone space, which has a very large total addressable market.