GOGOGogo Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.0×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GOGO?
Gogo Inc. earns 9.4% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.42 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Telecom Services median 11% · 12 months to Q2 2026
- Cash conversion
- 0.98×
Cash conversion · 1.37× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.47%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 28% |
| FY2021 | 36% |
| FY2022 | 35% |
| FY2023 | 31% |
| FY2024 | 12% |
| FY2025 | 13% |
Details›
- Operating margin12 months to Q2 2026
- 12%
- Net margin12 months to Q2 2026
- −0.09%
- Free cash flow margin
- −0.93%
- R&D as % of revenue
- 5.1%
- Revenue, trailing twelve months
- $903M
- Free cash flow, trailing twelve months
- −$8.4M
- Net income, trailing twelve months
- −$850K
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.