Shares cratered 18.4% to $3.64 after Gogo, the dominant in-flight internet provider for business jets and military aircraft, delivered a second-quarter earnings miss that underscored a painful transition. Gogo reported Q2 EPS of ($0.01), $0.07 worse than the analyst estimate of $0.06.
Revenue came in at $222.81 million versus the consensus estimate of $229.35 million —a double miss that torched a stock already down roughly 75% from its 52-week high.
• The Core Wi-Fi Business Is Sliding, Not Growing
Second-quarter revenue of $222.8 million was down 1% from a year earlier and 2% from the first quarter. The company's bread-and-butter service—selling internet subscriptions to business jet operators—is losing aircraft. Total air-to-ground aircraft online fell 11% year-over-year last quarter , and that subscriber erosion is dragging down recurring revenue. For investors, fewer paying planes means less predictable cash flow precisely when the company needs it most.
• Military Revenue Soared but Couldn't Fill the Gap Government connectivity revenue hit $39.9 million, up 40% year-over-year, a genuine bright spot. But that growth wasn't enough to offset the commercial slowdown. Net loss was ($2.0) million, compared to $12.8 million in profit in Q2 2025 and $13.1 million in Q1 2026. Swinging from profit to loss in one quarter signals that rising costs and litigation are outpacing the military upside.
• A Thinner Cash Cushion Limits Room for Error
Cash dropped to $63.1 million from $103.5 million at the end of March , a 39% decline in one quarter. The company paid out a $40.0 million earn-out tied to its Satcom Direct acquisition and a $21.1 million loan payment.
Long-term debt remains roughly $1.06 billion , leaving the balance sheet heavily leveraged. With less cash on hand and big obligations ahead, Gogo has little margin for further misses.
• Management Cut Full-Year Guidance, Adding Doubt
Gogo now expects 2026 revenue of $870–$895 million , well below the prior range of $905–$945 million . Adjusted EBITDA guidance fell to $175–$185 million , down from the original $198–$218 million.
Free cash flow is now expected at just $65–$85 million , versus a prior $90–$110 million. Each of these cuts underscores that the revenue miss isn't a one-quarter blip—management itself sees softer conditions ahead. For shareholders, the question now is whether the military pipeline and next-generation satellite products can reverse the slide before cash runs thin.