Gross margins have contracted sharply from 70.5% in 2025Q4 to 34.4% in 2026Q1, reflecting potential cost pressures from hardware deployment and shifting service revenue mixes.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Sales/Revenue | 906.5M | 910.49M | 444.71M | 397.58M | 404.07M | 335.72M | 269.72M | 308.99M | 893.76M | 699.09M | 596.55M | 500.89M | 408.49M | 328.12M | 233.51M | 160.16M | 94.66M | 36.84M |
| Revenue Growth % | 58.84% | 104.74% | 11.85% | -1.61% | 20.36% | 24.47% | -12.71% | -65.43% | 27.85% | 17.19% | 19.1% | 22.62% | 24.49% | 40.52% | 45.8% | 69.19% | 156.93% | - |
| Cost of Goods Sold | 427.12M | 372.73M | 166.6M | 132.95M | 135.9M | 102.19M | 84.37M | 93.89M | 513.89M | 326.89M | 274.73M | 228.36M | 209.46M | 168M | 113.14M | 77.84M | 60.4M | 46.82M |
| COGS % of Revenue | - | 40.94% | 37.46% | 33.44% | 33.63% | 30.44% | 31.28% | 30.39% | 57.5% | 46.76% | 46.05% | 45.59% | 51.28% | 51.2% | 48.45% | 48.61% | 63.81% | 127.08% |
| Gross Profit | 479.38M | 537.76M | 278.11M | 264.63M | 268.17M | 233.52M | 185.35M | 215.1M | 379.88M | 372.2M | 321.82M | 272.53M | 199.03M | 160.13M | 120.38M | 82.31M | 34.26M | -9.98M |
| Gross Margin % | 52.88% | 59.06% | 62.54% | 66.56% | 66.37% | 69.56% | 68.72% | 69.61% | 42.5% | 53.24% | 53.95% | 54.41% | 48.72% | 48.8% | 51.55% | 51.39% | 36.19% | -27.08% |
| Gross Profit Growth % | - | 93.37% | 5.09% | -1.32% | 14.84% | 25.99% | -13.83% | -43.38% | 2.06% | 15.65% | 18.09% | 36.93% | 24.3% | 33.02% | 46.24% | 140.29% | 443.34% | - |
| Operating Expenses | 366.98M | 423.68M | 226.84M | 140.46M | 125.84M | 112.89M | 109M | 118.57M | 406.8M | 436.46M | 348.46M | 317.37M | 249.7M | 204.79M | 147.81M | 116.14M | 111.22M | 100.86M |
| OpEx % of Revenue | - | 46.53% | 51.01% | 35.33% | 31.14% | 33.63% | 40.41% | 38.37% | 45.52% | 62.43% | 58.41% | 63.36% | 61.13% | 62.41% | 63.3% | 72.51% | 117.49% | 273.76% |
| Selling, General & Admin | 168.55M | 172.58M | 109.61M | 87.08M | 83.67M | 72.54M | 69.6M | 75.86M | 153.09M | 157.69M | 146.1M | 142.9M | 120.13M | 99.6M | 75.55M | 61.22M | 60.01M | 56.1M |
| SG&A % of Revenue | - | 18.95% | 24.65% | 21.9% | 20.71% | 21.61% | 25.81% | 24.55% | 17.13% | 22.56% | 24.49% | 28.53% | 29.41% | 30.35% | 32.35% | 38.22% | 63.39% | 152.28% |
| Research & Development | 48.76M | 56.14M | 44.77M | 36.68M | 29.59M | 24.87M | 25.23M | 26.01M | 120.09M | 133.29M | 96.71M | 87.44M | 65.12M | 49.69M | 35.35M | 22.25M | 20.22M | 22.86M |
| R&D % of Revenue | - | 6.17% | 10.07% | 9.23% | 7.32% | 7.41% | 9.35% | 8.42% | 13.44% | 19.07% | 16.21% | 17.46% | 15.94% | 15.14% | 15.14% | 13.89% | 21.36% | 62.05% |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 112.4M | 114.08M | 51.27M | 124.17M | 142.33M | 120.63M | 76.35M | 96.53M | -26.92M | -64.26M | -26.64M | -44.84M | -50.67M | -44.67M | -27.44M | -33.82M | -76.96M | -110.84M |
| Operating Margin % | 12.4% | 12.53% | 11.53% | 31.23% | 35.22% | 35.93% | 28.31% | 31.24% | -3.01% | -9.19% | -4.47% | -8.95% | -12.4% | -13.61% | -11.75% | -21.12% | -81.3% | -300.84% |
| Operating Income Growth % | - | 122.51% | -58.71% | -12.76% | 17.99% | 57.99% | -20.91% | 458.58% | 58.11% | -141.25% | 40.6% | 11.5% | -13.44% | -62.8% | 18.88% | 56.05% | 30.56% | - |
| EBITDA | 173.67M | 174.36M | 70.24M | 140.87M | 154.91M | 136.11M | 90.52M | 113.22M | 106.7M | 81.23M | 79M | 42.19M | 13.78M | 10.84M | 9.47M | -1.15M | -45.97M | -88.94M |
| EBITDA Margin % | 19.16% | 19.15% | 15.8% | 35.43% | 38.34% | 40.54% | 33.56% | 36.64% | 11.94% | 11.62% | 13.24% | 8.42% | 3.37% | 3.3% | 4.06% | -0.72% | -48.56% | -241.4% |
| EBITDA Growth % | 114.26% | 148.23% | -50.13% | -9.06% | 13.81% | 50.37% | -20.05% | 6.12% | 31.35% | 2.81% | 87.24% | 206.15% | 27.12% | 14.49% | 922.76% | 97.5% | 48.31% | - |
| D&A (Non-Cash Add-back) | 61.27M | 60.28M | 18.97M | 16.7M | 12.58M | 15.48M | 14.17M | 16.69M | 133.62M | 145.49M | 105.64M | 87.04M | 64.45M | 55.51M | 36.91M | 32.67M | 30.99M | 21.9M |
| EBIT | 95.1M | 95.03M | 56.56M | 124.17M | 144.59M | 36.83M | 71.19M | 38.3M | -42.52M | -64.56M | -40.34M | -47.49M | -50.62M | -80.91M | -23.57M | 24.95M | -110.08M | -112.2M |
| Net Interest Income | -63.27M | -63.54M | -30.09M | -25.65M | -36.49M | -67.28M | -125.06M | -126.47M | -118.5M | -108.98M | -81.22M | -58.71M | -32.68M | -29.21M | -8.84M | -208K | 61K | -29.85M |
| Interest Income | 5.24M | 4.68M | 8.34M | 7.4M | 2.39M | 191K | 722K | 4.21M | 4.29M | 2.96M | 1.64M | 181K | 61K | 64K | 77K | 72K | 98K | 214K |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 28.86M | 26.81M | 18.13M | 97.6M | 105.72M | -30.64M | -48.7M | -87.93M | -165.32M | -173.99M | -123.19M | -106.38M | -83.36M | -110.18M | -31.68M | 24.67M | -110.12M | -142.27M |
| Pretax Margin % | 3.18% | 2.94% | 4.08% | 24.55% | 26.16% | -9.13% | -18.06% | -28.46% | -18.5% | -24.89% | -20.65% | -21.24% | -20.41% | -33.58% | -13.57% | 15.4% | -116.33% | -386.15% |
| Income Tax | 14.89M | 13.89M | 4.39M | -48.08M | 13.66M | -187.23M | -146K | 563K | -3.29M | -2M | 1.31M | 1.24M | 1.18M | 1.11M | 1.04M | 1.05M | 3.26M | 0 |
| Effective Tax Rate % | 51.61% | 51.8% | 24.2% | -49.26% | 12.92% | 611.04% | 0.3% | -0.64% | 1.99% | 1.15% | -1.07% | -1.16% | -1.42% | -1% | -3.27% | 4.27% | -2.96% | 0% |
| Net Income | 13.97M | 12.92M | 13.75M | 145.68M | 92.06M | 152.74M | -250.04M | -146M | -162.03M | -172M | -124.5M | -107.61M | -84.54M | -111.29M | -32.71M | 23.61M | -113.38M | -142.27M |
| Net Margin % | 1.54% | 1.42% | 3.09% | 36.64% | 22.78% | 45.5% | -92.7% | -47.25% | -18.13% | -24.6% | -20.87% | -21.48% | -20.7% | -33.92% | -14.01% | 14.74% | -119.78% | -386.15% |
| Net Income Growth % | 397.02% | -5.99% | -90.56% | 58.24% | -39.73% | 161.09% | -71.25% | 9.89% | 5.79% | -38.14% | -15.7% | -27.3% | 24.04% | -240.19% | -238.53% | 120.83% | 20.3% | - |
| Net Income (Continuing) | 13.97M | 12.92M | 13.75M | 145.68M | 92.06M | 156.59M | -48.56M | -88.5M | -52.46M | -172M | -124.5M | -107.61M | -84.54M | -111.29M | -32.71M | 23.61M | -113.38M | -142.27M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | -3.85M | -201.48M | -57.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.10 | 0.09 | 0.10 | 1.09 | 0.71 | 1.28 | -3.50 | -1.81 | -2.02 | -2.17 | -1.58 | -1.35 | -0.99 | -1.32 | -0.39 | -0.21 | -1.34 | -1.68 |
| EPS Growth % | 333.64% | -5.4% | -90.83% | 53.52% | -44.53% | 136.57% | -93.37% | 10.4% | 6.91% | -37.34% | -17.04% | -36.36% | 25% | -238.46% | -85.71% | 84.33% | 20.24% | - |
| EPS (Basic) | - | 0.10 | 0.11 | 1.12 | 0.75 | 1.46 | -3.50 | -1.81 | -2.02 | -2.17 | -1.58 | -1.35 | -0.99 | -1.32 | -0.39 | -0.21 | -1.34 | -1.68 |
| Diluted Shares Outstanding | 136.85M | 136.59M | 131.46M | 133.28M | 133.92M | 127.2M | 82.27M | 80.77M | 80.04M | 79.41M | 78.92M | 79.7M | 85.15M | 84.61M | 84.92M | 84.92M | 84.92M | 84.92M |
| Basic Shares Outstanding | 135.66M | 133.71M | 128.53M | 129.75M | 123.27M | 103.4M | 82.27M | 80.77M | 80.04M | 79.41M | 78.92M | 79.7M | 85.15M | 84.61M | 84.92M | 84.92M | 84.92M | 84.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High leverage and 5G execution
As reported in financial statements, Gogo's revenue growth has exhibited extreme volatility, with quarterly year-over-year fluctuations ranging from a 1.7% decline in 2026Q1 to a 122.4% surge in 2025Q3, suggesting that headline figures are heavily distorted by non-recurring items or structural accounting shifts following the commercial divestiture.
The erratic revenue trajectory complicates the assessment of organic growth within the core Business Aviation segment. Investors should look past these headline swings to focus on the stability of service revenue, which remains the primary indicator of long-term enterprise value rather than transactional equipment sales.
Based on Gogo's reported figures, gross margins have experienced significant contraction, falling from a peak of 70.5% in 2025Q4 to 34.4% in 2026Q1, which may indicate rising costs associated with hardware deployment or a shift in the mix toward lower-margin equipment sales versus high-margin connectivity services.
This sharp decline in gross profitability suggests that the company's pricing power may be under pressure or that the cost of maintaining the ATG network is scaling inefficiently. Analysts should monitor whether this margin compression is a temporary byproduct of 5G infrastructure rollout or a permanent shift in the competitive landscape.
According to recent SEC filings, Gogo's operating income has shown inconsistent scaling relative to gross profit, with operating margins swinging from 33.2% in 2024Q1 to a negative 17.5% in 2024Q4, highlighting a high fixed-cost structure that leaves little room for operational error in a volatile revenue environment.
The company's high debt-to-equity ratio of 9.51% creates a precarious situation where interest obligations could rapidly consume operating cash flow. This leverage profile suggests that any sustained weakness in top-line growth could lead to significant earnings volatility, as the company lacks the margin cushion to absorb unexpected operational shocks.
As indicated by the provided data, Gogo's net income has frequently dipped into negative territory, with a net margin of -4.3% in 2025Q4, raising concerns about the sustainability of its business model in the face of aggressive competition from emerging LEO satellite providers and high interest expenses.
Short-sellers would likely focus on the company's inability to consistently generate positive net income despite its proprietary spectrum advantage. The persistent delays in 5G deployment, combined with a heavy debt burden, suggest that the company's competitive moat may be narrowing faster than the market currently anticipates.
Quick answers to the most common questions about buying GOGO stock.
For fiscal year 2025, Gogo Inc. (GOGO) reported total revenue of $910.5M. This represents a 2371.3% increase compared to $36.8M in 2009.
Gogo Inc. (GOGO) is profitable, generating $12.9M in net income for the fiscal year ending 2025 with a net profit margin of 1.4%.
Gogo Inc. (GOGO) reported an operating income of $114.1M, resulting in an operating profit margin of 12.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Gogo Inc. (GOGO) generated $537.8M in gross profit for the year, representing a gross profit margin of 59.1%. This demonstrates the company's core pricing power and production efficiency.