In-flight entertainment firm Gogo beats Q2 revenue estimates; raises 2025 guidance
Overview
Gogo Q2 2025 revenue up 121% yr/yr, beating analyst expectations
Net income rises to $12.8 mln, reflecting improved profitability
Adjusted EBITDA grows 103% yr/yr, indicating strong operational performance
Outlook
Gogo increases 2025 revenue guidance to $910 mln
Company expects 2025 Adjusted EBITDA at $220 mln
Gogo sees 2025 Free Cash Flow at $90 mln
Result Drivers
SATCOM DIRECT ACQUISITION - Contributed $122.8 mln to Q2 revenue, boosting overall growth
SERVICE REVENUE GROWTH - Increased 137% yr/yr, driven by demand for broadband connectivity
AVANCE ADOPTION - 14% increase in AVANCE ATG aircraft online, indicating growing market penetration
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $226 mln | $220.10 mln (4 Analysts) |
Q2 EPS | $0.09 | ||
Q2 Net Income | $12.80 mln | ||
Q2 Adjusted EBITDA | $61.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the wireless telecommunications services peer group is "buy"
Wall Street's median 12-month price target for Gogo Inc is $16.50, about 7.2% above its August 6 closing price of $15.31
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release:
