Gogo Inc.

Hello, and thank you for standing by. Welcome to GoGo Third Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to William Davis. You may begin.

Thank you, and good morning, everyone. Welcome to GOGO's third quarter 2025 earnings conference call. Joining me today to discuss our results are Chris Moore, our CEO, and Zach Kotner, our CFO. Before we get started, I would like to take this opportunity to remind you that during the course of this call, we may make forward-looking statements regarding future events and the future performance of the company. We caution you to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements on this call. Those risk factors are described in our earnings release filed this morning. and in a more fully detailed note under risk factors filed in our annual report on 10-K and 10-Q and other documents that we have filed with the SEC. In addition, please note that the date of this conference call is November 6th, 2025. Any forward-looking statements that we make today are based on assumptions as of this date, and we undertake no obligation to update these statements as a result of more information or future events. During this call, we'll present both GAAP and non-GAAP financial measures. We've included a reconciliation and explanation of adjustments and other considerations of our non-GAAP measures to the most comparable GAAP measures in our third quarter earnings release. Our calls being webcasted and available at ir.gogoair.com. The earnings release is also available on the website. After management comments, we'll host a Q&A session with the financial community only. It is now my great pleasure to turn the call over to Chris.

Thank you, Will, and good morning. I will let Zach handle the numbers, but I am pleased with our financial discipline, integration, and synergy execution and free cash flow generation as we prepare for growth as a result of our new product ramps and global contract wins. My remarks will focus on the significant progress made across our key new products in the third quarter, including 5G, HDX, and FDX, all of which are expected to provide a step function increase in speed, consistency, and performance. I will also discuss our progress in the MilGov end market, including several recent contract wins that validate our unique multi-orbit, multi-band strategy for this important customer base. We believe GoGo is well positioned to execute on our new product launches, and this bolsters my confidence in achieving long-term sustained revenue and free cash flow growth. Before we jump into our product rollouts, let's review the positive demand trends within our underpenetrated market. Global business jet flights are about 30% above pre-COVID levels and at an all-time high. Fractional demand is robust. Overall demand for business jets remained healthy, with major OEMs reporting strong backlog and estimating 2025 final book to bill ratios one times or higher. Last month, Honeywell estimated business jet deliveries globally of 8,500 over the next 10 years, representing an annual growth rate of approximately 3%. Given that our global addressable market of 41,000 business aircraft is less than 25% penetrated, With broadband connectivity, these factors create a robust end market. In summary, our value creation is to grow our current strong position in the under-penetrated market with long-term high-margin customer relationships by delivering a set of new products and services which deliver order of magnitude improvements in performance with purpose-built equipment that is easier to install, maintain, and upgrade than competitors' products. Let's start our new product update with Galileo, our global LEO-based service that comes in two flavors, HDX for smaller aircraft and FDX for larger aircraft. The recent announcement by VistaJet, a leading global business jet operator, of its plans to deploy both HDX and FDX across its fleet of 270 aircraft is a powerful endorsement for Galileo. HDX installations begin this month in Europe and start in the U.S. and Asia in January. Vista expects one aircraft upgrade with the GOGO Galileo terminal every nine days, reaching at least 60 aircraft with the Galileo terminal within the first 18 months. VistaJet was comfortable with both the robust performance of our Galileo service and our commitment to long-term global customer support, as well as the ability to manage capacity and route traffic across a global fleet with multiple aircraft types. The VistaJet contract continues on momentum across multiple global fleet operators. In addition to VistaJet, GOGO has announced wins with the following fleets, all with plans to upgrade their fleet to Galileo and or 5G. NetJets, Lux Aviation, Wielder, and Avconjet. All in, we believe that there is a path for GOGO to reach well over 1,000 fleet aircraft, with either GOAT, Galileo, or 5G representing a true slingshot to propel our LEO and ATG business on a global scale. Further, our combined Galileo pipeline for both HDX and FDX is now approximately 1,000 up from 500 at the end of Q2, and we continue to see a favorable pipeline mix between U.S. and global markets of about 60-40. Note, as we win new contracts like the VistaJet deal, this pipeline rolls off into new business one. So a pipeline is just one piece of the puzzle in tracking our progress. Next, let's drill down on HDX. HDX is ideal for the 12,000 midsize and smaller aircraft outside North America without broadband, and the 11,000 midsize and smaller aircraft in North America that fly outside CONUS all want faster speeds than 5G. Our execution on HDX bore significant fruit during the quarter as we increased our completed STCs from 8 to 19 out of 40 under contract. We are very close to reaching critical mass with our HDX STC count. Additionally, we have now shipped over 200 HDX units year to date. Nearly three times the 77 shipments we announced on our Q2 call in August with 93% earmarked for specific customers. Our HDX installations are now 50, including outstanding SDCs, which we expect to ramp significantly as we begin to install on our major fleet accounts and execute online fit installations with Textron beginning in early 2026. Accelerating AOL in a new product is truly where the magic happens and will be the key to future service revenue acceleration. HDX is performing ahead of speed expectations and was purpose-built to fit on 41,000 global aircraft, and we expect a very significant ramp in shipments and AOL growth in 2026 and beyond. Now let's shift to the FDX, our larger LEO antenna for the large global business market of 10,000 aircraft. A successful flight test with OEMs, dealers, and fleet customers is a fantastic endorsement for the status of the new product. At the recent NBAA show, We flew multiple flight demos with speeds reaching 200 megabits at the high end of our predicted speed range. As we see, this is screaming. We operated 27 streaming devices simultaneously and consumed an outstanding 36 gigs of data in 36 minutes. I've been launching and testing aviation Wi-Fi systems for a couple of decades and have never seen such flawless execution on a flight demo within a week of aircraft installation and delivery. It was truly an awesome performance. Hats off to the GOGO team and our partners, Hughes, Standard Aero and OneWeb. We were thrilled to announce in our earnings release this morning that FDX will be a LEO line fit option for all new Bombardier Challenger and Global Business aircraft types. In our view, this validates our technology, our team and shows great trust from a major Global Business aircraft OEM. we expect revenue generation from this important win in early 2027. We have now announced strong Galileo relationships with the following major global OEMs, Bombardier, Textron, Dassault, and Embraer. Let's now move on to 5G, our multi-year investment to substantially improve the performance of our ATG network. I am thrilled to say that we are at the goal line on 5G. Our 5G flight testing began on October 28th, And the results have exceeded our expectations. As a result, we reiterate a Q4 launch timing for 5G, and we plan to begin shipping boxes to our 400 pre-provisioned 5G customers in early Q1. They already have the 5G antenna installed, and the wiring is completed. We expect our 5G service revenue to begin in the latter parts of the first quarter, once installations have begun. Beyond our focus on pre-provisioned aircraft, 28 out of the 33 STCs under and we expect the remaining five will be completed by the end of the year. Further, GOGO has 5G line fit commitments with five OEMs with one already installing the advanced L5 box on the production line today. These boxes will be swapped with the LX5 5G box when service is turned on. We continue to believe the significant pent-up demand exists for 5G among customers who predominantly fly domestically, particularly those with light and medium-sized aircraft. 5G offers a tenfold increase in speeds versus the existing L5 ATG solution and is a cost-effective solution versus the more premium price HDX or FDX. Keeping the focus on ATG, let's move to our LTE upgrade. The upgrade of our ATG network to LTE, which will be largely subsidized by FCC funding, is expected to bring multiple benefits. One, accelerating the upgrade of classic aircraft to advance. Two, increasing ATG network capacity and increasing speed. And third, accelerating our U.S. government business on the ATG network, given the enhanced security of the network. We shipped a record 437 ATG equipment units in the quarter, up 8% sequentially split between 208 advanced units and 229 C1 units. Equipment shipments are typically a leading indicator of future installs. We recorded a record 145 classic to advanced upgrades in Q3 as advanced AOL grew 12% year-over-year to 4,890. Advanced now represents 75% of our ATG fleet, and that figure is quickly heading to 100%. Correspondingly, our classic count of roughly 1,500 aircraft is only 25% of the ATG fleet. And over 400 are part of fractional or managed accounts with a defined upgrade path. This leaves approximately 1,100 classic aircraft not associated with a fleet account. We expect that our count of 101 C1 aircraft will ramp significantly over the coming quarters. The C1 box is identical in size to the classic box and allows the system to operate after the LTE system is turned on. This box swap takes only a few hours and benefits from FCC subsidies. For online, we're accelerating our progress towards the anticipated LTE cutover in May of 2026, and our entire dealer network is pushing all out to upgrade our classic fleet as they have a strong vested interest in a smooth transition of our air-to-ground network. While we are encouraged with our efforts to improve the performance of the ATG network across multiple levels, including the 5G and LTE rollouts and the C1 upgrade process, we continue to believe that industry trends will pressure our ATG online count for the next several quarters. Our ability to return to sustained service revenue growth will be dependent on two things. First, the pace of the ramp of our new products, including HDX, FDX, 5G, and second, progress in the MilGov end market. Let's jump into the discussion of performance of our geo business. We ended Q3 with 1,343 GEO AOL, up 161 units, or 14% from the prior year, powered by our line fit positioning. We expect that our investment in GEO technology will continue to improve speed and performance over time for business jets, which we believe can be leveraged across our MilGov customers as well. Our SD router, called SDR, is on about 2,400 GEO aircraft, and is synchronized with the advanced routers on other That is a total of approximately 7,300 systems that should be upgradable to new products without box swaps or expensive interior rewiring. Now, moving to our military government and market. Given that our service revenue is relatively new to most of you, let me provide context about how we view it. First, the global MilGov aircraft number has an even lower broadband penetration than the business jet market, and this presents a compelling long-term growth path. The 25 by 25 initiative from the U.S. Air Force is a great example of this. The U.S. Air Force set a goal that 25% of its 1,100 non-fighter aircraft would have broadband speeds of 25 megabits or greater by the end of 2025, and that the goal will come up short. Of note, the architect of the 25 by 25 initiative, retired General Mike Minahan, joined our board this year. Second, we believe governments globally will seek diversity amongst their aero bandwidth supplies and will place premium on multi-orbit, multi-band service for redundancy and performance. These capabilities are military prerequisites for PACE standing for primary, alternate, contingent, and emergency. And GOGO is the only company that can fit that bill. This was a major contributing factor in our recently announced five-year federal contract to deliver 5G, LEO, and GEO services to a U.S. government agency. This is the first service win for 5G in a multi-orbit government contract. Third, we can reuse business aviation terminal offering for MILGO use without incremental R&D spend. This advantage was highlighted with our recent five-year contract with SES Space and Defense. For a blanket purchase agreement for US Space Force Space Command, we will plan to deliver managed global KU band geo flex air services utilizing our plain simple KU band antenna to provide scalable, secure, and high-speed satellite connectivity across government operations worldwide. This contract ceiling value is 33 million, of which aviation is a major component, and a total revenue split, 80% service and 20% equipment. Finally, given that mil-gal contracts are typically multi-year, we believe that increased predictability, revenue streams under contract in this segment have a potential to add a new layer of strategic value for GOGO. Given that context, we expect that MilGov, which is 13% of our total revenue, is likely to move towards 20% over the longer term. Thank you for your attention on our trust that you share our enthusiasm for the significant progress we have made over the last few quarters in transitioning this global business. I will now turn the call over to Zach for the numbers.