Gogo Inc. Revenue Disclosure
4. Revenue Recognition
Remaining Performance Obligations
As of December 31, 2025, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations (“RPO”) was approximately $572 million and excludes consideration from contracts that have an original duration of one year or less. Approximately $560 million of the RPO primarily represents connectivity and entertainment service revenues which are recognized as services are provided, which is expected to occur through the remaining term of the contracts. Our contracts vary in length and generally have terms of to ten years. We expect to recognize approximately 36% of our connectivity and entertainment service RPO within the next year, approximately 48% in to five years and the remaining 16% in to ten years. The remaining $12 million of the RPO represents future equipment revenue that is expected to be recognized primarily within the next three years as equipment is shipped.
Disaggregation of revenue
The following table presents our revenue disaggregated by category (in thousands):
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For the Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Service revenue by type |
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Satellite broadband |
|
$ |
316,641 |
|
|
$ |
27,988 |
|
|
$ |
3,626 |
|
ATG broadband |
|
|
288,597 |
|
|
|
310,860 |
|
|
|
302,226 |
|
Narrowband and other |
|
|
169,155 |
|
|
|
25,422 |
|
|
|
12,163 |
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Total service revenue by type |
|
$ |
774,393 |
|
|
$ |
364,270 |
|
|
$ |
318,015 |
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Service revenue by market |
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|
|
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|
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|
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Business aviation |
|
$ |
657,911 |
|
|
$ |
358,572 |
|
|
$ |
318,015 |
|
Military / Government |
|
|
116,482 |
|
|
|
5,698 |
|
|
|
— |
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Total service revenue by market |
|
$ |
774,393 |
|
|
$ |
364,270 |
|
|
$ |
318,015 |
|
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|
|
|
|
|
|
|
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Equipment revenue |
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|
|
|
|
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Satellite broadband |
|
$ |
34,725 |
|
|
$ |
2,001 |
|
|
$ |
1,030 |
|
ATG broadband |
|
|
76,204 |
|
|
|
66,607 |
|
|
|
64,585 |
|
Narrowband and other |
|
|
25,169 |
|
|
|
11,831 |
|
|
|
13,947 |
|
Total equipment revenue |
|
$ |
136,098 |
|
|
$ |
80,439 |
|
|
$ |
79,562 |
|
Contract balances
Our current and non-current contract asset balances totaled $39.6 million and $25.0 million as of December 31, 2025 and 2024, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings and recoverable contract costs primarily for certain sales programs.
Our current and non-current deferred revenue balances totaled $36.0 million and $41.3 million as of December 31, 2025 and 2024, respectively. Deferred revenue includes, among other things, prepayments for equipment and subscription connectivity products. For the year ended December 31, 2025, we recognized revenue of $38.2 million that was previously included in the beginning balance of deferred revenue.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.