Gogo Inc. (GOGO) Q2 Earnings Disappoint with EPS Miss Stock drops 21.29%

Gogo shares closed at $12.05, down $3.26 (−21.29%) after posting second-quarter results that fell short of earnings expectations despite strong revenue growth.

Key Financials (Q2 2025 vs. Q2 2024)

• Revenue: $226 M, up 121% YoY, driven by the Satcom Direct acquisition.
• Net Income: $12.8 M, up from $5.3 M a year ago.
• Adjusted EBITDA: $75.2 M, up 103% YoY.
• EPS: $0.09, missing consensus estimates of $0.12–$0.14.

Operational Notes

• Service revenue and total revenue dipped about 2% sequentially from Q1.
• Growth was fueled by new business integration, but higher costs tied to 5G network investments and acquisition-related expenses weighed on margins.
• Management highlighted improved liquidity and ongoing network upgrades but did not raise full-year EPS guidance.

Stock Reaction
The steep sell-off reflects investor concern over the EPS shortfall, potential pressure on future profitability, and the challenge of sustaining momentum after a major acquisition.

Observation
Despite strong year-over-year growth, the combination of a sequential revenue decline and an earnings miss suggests investors are focusing on near-term profit pressures rather than top-line expansion. This puts added importance on upcoming quarters to show earnings leverage from recent investments.