Gogo Inc. Leases Disclosure
16. Leases
The following is a summary of our lease expense included in the consolidated statement of operations (in thousands):
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For the Years Ended December 31, |
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2025 |
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2024 |
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2023 |
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Operating lease cost(1) |
|
$ |
41,307 |
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|
$ |
16,692 |
|
|
$ |
15,961 |
|
Finance lease cost: |
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Amortization of leased assets |
|
|
54 |
|
|
|
55 |
|
|
|
112 |
|
Interest on lease liabilities |
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|
9 |
|
|
|
13 |
|
|
|
9 |
|
Total lease cost |
|
$ |
41,370 |
|
|
$ |
16,760 |
|
|
$ |
16,082 |
|
(1) Includes short-term and variable lease cost.
Other information regarding our leases is as follows (in thousands, except lease terms and discount rates):
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For the Years Ended December 31, |
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2025 |
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2024 |
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2023 |
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Supplemental cash flow information |
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Cash paid for amounts included in measurement of lease liabilities: |
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Operating cash flows used in operating leases |
|
$ |
19,419 |
|
|
$ |
17,392 |
|
|
$ |
16,422 |
|
Operating cash flows used in finance leases |
|
$ |
9 |
|
|
$ |
13 |
|
|
$ |
9 |
|
Financing cash flows used in finance leases |
|
$ |
41 |
|
|
$ |
31 |
|
|
$ |
132 |
|
Non-cash items: |
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Operating leases obtained |
|
$ |
2,718 |
|
|
$ |
9,325 |
|
|
$ |
5,231 |
|
Finance leases obtained |
|
$ |
— |
|
|
$ |
170 |
|
|
$ |
— |
|
Weighted average remaining lease term |
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Operating leases |
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5 years |
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6 years |
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|
7 years |
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|||
Finance leases |
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1 year |
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|
2 years |
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|
2 years |
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Weighted average discount rate |
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Operating leases |
|
|
7.0 |
% |
|
|
7.0 |
% |
|
|
6.8 |
% |
Finance leases |
|
|
9.1 |
% |
|
|
9.0 |
% |
|
|
4.7 |
% |
Annual future minimum lease payments as of December 31, 2025 (in thousands):
Years ending December 31, |
|
Operating |
|
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Financing |
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||
2026 |
|
$ |
18,029 |
|
|
$ |
93 |
|
2027 |
|
|
17,291 |
|
|
|
15 |
|
2028 |
|
|
14,728 |
|
|
|
— |
|
2029 |
|
|
13,161 |
|
|
|
— |
|
2030 |
|
|
9,277 |
|
|
|
— |
|
Thereafter |
|
|
10,468 |
|
|
|
— |
|
Total future minimum lease payments |
|
|
82,954 |
|
|
|
108 |
|
Less: Amount representing interest |
|
|
(13,332 |
) |
|
|
(4 |
) |
Present value of net minimum lease payments |
|
$ |
69,622 |
|
|
$ |
104 |
|
Reported as of December 31, 2025 |
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|
|
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||
|
$ |
13,850 |
|
|
$ |
89 |
|
|
|
|
55,772 |
|
|
|
— |
|
|
|
|
— |
|
|
|
15 |
|
|
Total lease liabilities |
|
$ |
69,622 |
|
|
$ |
104 |
|
As of December 31, 2025, there were no significant leases which had not yet commenced.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.