One-glance verdict
Within fair range
$4.73 our estimate vs market $2.13
Wall Street consensus: $8.50 (79.8% higher than our fair-value estimate)
55% below our estimate
Fundamentals snapshot
Gogo Inc.
GOGO · NMS · Communication Services · Telecom Services
Current price
$2.13
52-week range
$2.03 - $9.93
Market cap
$288.63M
Balance sheet
Distressed
1.54x Concerning
Net debt $814.35M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 6/10 years.
- Risk Net debt grew 27.9% over 3 years.
- Risk Operating margin compressed from 35.2% to 14.1% over 3 years.
- Risk Return on equity was -0.8% last year — the company lost money on shareholders' equity.
What this company does
Gogo Inc.
Gogo provides internet and other services to airplanes, primarily for business jets, and makes money by selling equipment and charging monthly fees for its connectivity services. This recurring revenue (money that comes in regularly, like a subscription) is important because it gives the company a predictable income stream. Their focus on the aviation industry means they are a specialized provider, selling to plane owners and manufacturers.
How the company got here
Gogo started in 1991, originally aiming to provide internet access on commercial flights. However, they pivoted to focus on the business aviation market, which involves private jets and corporate aircraft. This strategic shift allowed them to become a leading provider of in-flight internet and connectivity solutions for this specific niche. Over the years, Gogo has invested heavily in building out its network infrastructure and developing advanced airborne equipment to serve its customers.
What it actually does
Gogo provides internet and other connectivity services for private jets. Think of it like the Wi-Fi you get on a commercial airline, but specifically designed for the unique needs of business aircraft. This includes providing the necessary equipment on the plane, managing the network, and ensuring a reliable connection for passengers and crew while in the air. They offer services that allow for internet browsing, email, and even streaming entertainment during flights.
Gogo Business Aviation
This is Gogo's primary business, focusing on providing internet and connectivity solutions to operators of business aircraft. They equip private jets with antennas and airborne equipment that connect to Gogo's network, enabling in-flight Wi-Fi. Customers in this segment are typically owners or operators of business jets, who pay for the hardware, installation, and a recurring subscription for the connectivity services. This segment represents the vast majority of Gogo's revenue, making it the core of their operations.
What management is betting on now
Gogo's main focus is on expanding its Gogo Business Aviation segment by upgrading its network technology and enhancing its service offerings. They are investing in next-generation satellite technology to provide faster and more reliable internet speeds, which is crucial for their demanding clientele. Management is also prioritizing customer satisfaction and operational efficiency to maintain their leadership position in the business aviation connectivity market. The goal is to offer a seamless and high-quality internet experience that meets the evolving needs of private jet travelers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$20.72M
FY2024 Q4
$-42.57M
FY2025 Q1
$29.72M
FY2025 Q2
$33.53M
FY2025 Q3
$27.26M
FY2025 Q4
$-25.40M
FY2026 Q1
$-32.96M
FY2026 Q2
$22.74M
Revenue
$222.81M
Net income
$-2.01M
Diluted EPS
-0.01
Operating cash flow
$32.30M
Free cash flow
$22.74M
Fetching…
Sources
Revenue
$226.32M
Net income
$13.09M
Diluted EPS
0.10
Operating cash flow
$-7.24M
Free cash flow
$-32.96M
Fetching…
Sources
Revenue
$230.56M
Net income
$-10.00M
Diluted EPS
-0.08
Operating cash flow
$8.50M
Free cash flow
$-25.40M
Fetching…
Sources
Revenue
$223.59M
Net income
$-1.93M
Diluted EPS
-0.01
Operating cash flow
$46.80M
Free cash flow
$27.26M
Fetching…
Sources
Revenue
$226.04M
Net income
$12.81M
Diluted EPS
0.09
Operating cash flow
$36.71M
Free cash flow
$33.53M
Fetching…
Sources
Revenue
$230.31M
Net income
$12.04M
Diluted EPS
0.09
Operating cash flow
$32.47M
Free cash flow
$29.72M
Fetching…
Sources
Revenue
$137.80M
Net income
$-28.21M
Diluted EPS
-0.22
Operating cash flow
$-38.32M
Free cash flow
$-42.57M
Fetching…
Sources
Revenue
$100.53M
Net income
$10.63M
Diluted EPS
0.08
Operating cash flow
$25.13M
Free cash flow
$20.72M
Fetching…
Sources
Is it cheap or expensive?
Fair value $4.73 vs current price $2.13
Wall Street consensus is the average analyst price target: $8.50 (79.8% higher than our fair-value estimate).
Our most-likely fair value is $4.73 a share — about 121.9% away from today's price of $2.13, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $814.3M. Interest coverage 1.5x.
Net debt
$814.35M
Interest coverage
1.54x
Gogo Inc.'s profit covers its interest bill about 1.5 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
GOGO
BASELINE
Gogo Inc.
Total debt $880.69M Interest coverage 1.54x This is the baseline the peer rows are being compared against.
Total debt $120.43B Interest coverage 4.92x +219% vs GOGO Carries about 3.2x more debt cushion than GOGO.
Total debt $2.34B Interest coverage 13.46x +772% vs GOGO Carries about 8.7x more debt cushion than GOGO.
Total debt $1.89B Interest coverage 9.06x +487% vs GOGO Carries about 5.9x more debt cushion than GOGO.
Total debt $96.71B Interest coverage 2.64x +71% vs GOGO Carries about 1.7x more debt cushion than GOGO.
Total debt $2.92B Interest coverage 13.44x +771% vs GOGO Carries about 8.7x more debt cushion than GOGO.
What you should know
The case for and against GOGO
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 6/10 years.
Risks
-
Net debt grew 27.9% over 3 years.
-
Operating margin compressed from 35.2% to 14.1% over 3 years.
-
Return on equity was -0.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
3.44x
P/B
2.39x
P/S
0.32x
EV/EBITDA
6.38x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
41.6%
Operating margin
14.1%
Net margin
-0.1%
ROE
-0.8%
ROA
5.6%
Health
Liquidity and balance-sheet strength
Debt / equity
7.30x
Current ratio
1.73x
Quick ratio
0.98x
Total debt
$880.69M
Total cash
$66.35M
Growth
How the business has been compounding
Revenue TTM
$903.28M
Revenue 5Y CAGR
28.3%
EPS TTM
-0.01
EPS 5Y CAGR
-49.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$80.37M
Free CF TTM
$65.11M
FCF margin
7.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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