📊 GOGO Key Takeaways
Is Gogo Inc. (GOGO) a Good Investment?
Gogo exhibits severe financial distress despite reporting positive net income: negative free cash flow of -33M and minimal interest coverage of 1.9x on 6.89x debt-to-equity leverage creates material default risk. Declining net income (-6% YoY) coupled with extraordinary revenue growth (7487% YoY) suggests margin compression, accounting changes, or unsustainable business model rather than genuine operational improvement.
Gogo delivers strong top-line growth and healthy operating profitability with positive free cash flow, but heavy leverage suppresses net earnings and leaves the balance sheet sensitive to financing costs. Liquidity is adequate, yet a 1.7x interest coverage and 8.24x debt/equity indicate limited cushion. Neutral until sustained deleveraging and improved bottom-line margins materialize.
Why Buy Gogo Inc. Stock? GOGO Key Strengths
- Operating income of 31.7M demonstrates core business profitability at 14% margin
- Current ratio of 1.66x provides adequate short-term liquidity
- Cash position of 103.5M offers near-term buffer
- Rapid revenue growth with 12.5% operating margin
- Positive free cash flow ($65.11M, 7.2% FCF margin)
- Solid liquidity (current ratio 1.60x; cash $125M)
GOGO Stock Risks: Gogo Inc. Investment Risks
- Negative free cash flow of -33M indicates company is burning cash despite accounting profits—unsustainable position
- Debt-to-equity of 6.89x with interest coverage of only 1.9x creates acute refinancing and default risk
- Net income declined 6% YoY despite 7487% revenue growth, signaling severe margin compression or revenue quality issues
- Negative operating cash flow of -7.2M reveals cash generation problem at operational core
- ROA of 1% indicates extremely poor capital efficiency and asset utilization
- High leverage (D/E 8.24x; LT debt $833.58M)
- Thin net margin (1.4%) and flat net income despite growth
- Low interest coverage (1.7x) heightens refinancing/interest-rate risk
Key Metrics to Watch
- Free cash flow trajectory and return to positive operating cash generation
- Interest coverage ratio—must improve above 2.5x for sustainability
- Debt-to-equity reduction and debt service capacity
- Sustainability and margin profile of the anomalous 7487% revenue growth
- Interest coverage
- Free cash flow (and FCF margin)
Gogo Inc. (GOGO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Gogo Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
GOGO Profit Margin, ROE & Profitability Analysis
GOGO vs Telecom Sector: How Gogo Inc. Compares
How Gogo Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Gogo Inc. Stock Overvalued? GOGO Valuation Analysis 2026
Based on fundamental analysis, Gogo Inc. shows some fundamental concerns relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Gogo Inc. Balance Sheet: GOGO Debt, Cash & Liquidity
GOGO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Gogo Inc.'s revenue has grown significantly by 171% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.09 reflects profitable operations.
GOGO Revenue Growth, EPS Growth & YoY Performance
GOGO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $226.3M | $12.0M | $0.09 |
| Q3 2025 | $100.5M | -$1.9M | $-0.01 |
| Q2 2025 | $102.1M | $839.0K | $0.01 |
| Q1 2025 | $104.3M | $12.0M | $0.09 |
| Q3 2024 | $97.9M | $10.6M | $0.08 |
| Q2 2024 | $102.1M | $839.0K | $0.01 |
| Q1 2024 | $98.6M | $20.4M | $0.15 |
| Q3 2023 | $97.9M | $20.2M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Gogo Inc. Dividends, Buybacks & Capital Allocation
GOGO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Gogo Inc. (CIK: 0001537054)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GOGO
What is the AI rating for GOGO?
Gogo Inc. (GOGO) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GOGO's key strengths?
Claude: Operating income of 31.7M demonstrates core business profitability at 14% margin. Current ratio of 1.66x provides adequate short-term liquidity. ChatGPT: Rapid revenue growth with 12.5% operating margin. Positive free cash flow ($65.11M, 7.2% FCF margin).
What are the risks of investing in GOGO?
Claude: Negative free cash flow of -33M indicates company is burning cash despite accounting profits—unsustainable position. Debt-to-equity of 6.89x with interest coverage of only 1.9x creates acute refinancing and default risk. ChatGPT: High leverage (D/E 8.24x; LT debt $833.58M). Thin net margin (1.4%) and flat net income despite growth.
What is GOGO's revenue and growth?
Gogo Inc. reported revenue of $226.3M.
Does GOGO pay dividends?
Gogo Inc. does not currently pay dividends.
Where can I find GOGO SEC filings?
Official SEC filings for Gogo Inc. (CIK: 0001537054) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GOGO's EPS?
Gogo Inc. has a diluted EPS of $0.10.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GOGO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Gogo Inc. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GOGO stock overvalued or undervalued?
Valuation metrics for GOGO: ROE of 11.1% (sector avg: 15%), net margin of 5.8% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy GOGO stock in 2026?
Our dual AI analysis gives Gogo Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GOGO's free cash flow?
Gogo Inc.'s operating cash flow is $-7.2M, with capital expenditures of $25.7M. FCF margin is -14.6%.
How does GOGO compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 5.8% (avg: 14%), ROE 11.1% (avg: 15%), current ratio 1.66 (avg: 1).
Is Gogo Inc. carrying too much debt?
GOGO has a debt-to-equity ratio of 6.89x, which is above the Telecom sector average of 1.2x. However, the current ratio of 1.66 suggests adequate short-term liquidity.