Gogo Inc. Reports $230.3 Million Revenue in Q1 2025, Net Income Declines

Gogo Inc. reported significant financial results for the first quarter of 2025, with total revenue reaching $230.3 million, a substantial increase from $104.3 million in the same period last year. This growth was primarily driven by a notable rise in service revenue, which surged to $198.6 million from $81.7 million, reflecting the impact of the company's acquisition of Satcom Direct in December 2024. Equipment revenue also saw an increase, totaling $31.7 million compared to $22.6 million in the prior year. However, net income for the quarter decreased to $12.0 million, down from $30.5 million in the previous year, largely due to increased operating expenses and interest costs.

The company's operating expenses rose significantly to $195.1 million from $69.6 million year-over-year, influenced by higher costs associated with service and equipment revenue, as well as increased general and administrative expenses related to the integration of Satcom Direct. Notably, general and administrative expenses jumped to $29.5 million from $14.7 million, reflecting acquisition-related costs and increased personnel expenses. Despite these challenges, Gogo's operating income remained relatively stable at $35.2 million, compared to $34.7 million in the prior year.

In terms of operational metrics, Gogo reported a total of 6,902 ATG aircraft online as of March 31, 2025, a slight decrease from 7,136 in the previous year. The average monthly connectivity service revenue per ATG aircraft online was approximately $3,451, indicating a marginal decline from $3,458 in the prior year. The company also noted a total of 1,280 GEO aircraft online, reflecting its expanding service capabilities in the satellite broadband market.

Looking ahead, Gogo expressed optimism about its growth trajectory, particularly with the integration of Satcom Direct, which is expected to enhance its service offerings in the business and military/government aviation sectors. The company anticipates that the full-year impact of the acquisition will contribute positively to its financial performance. Gogo also highlighted its commitment to improving its internal controls and financial reporting processes, particularly in light of identified material weaknesses related to the Satcom Direct acquisition. The company plans to implement additional controls and recruit qualified personnel to strengthen its accounting function as part of its remediation efforts.