Gogo Inc (GOGO) 2025 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q2 2025 Gogo earnings conference call. (Operator Instructions) Please be advised that this conference is being recorded.

您好，感謝您的支持。歡迎參加 2025 年第二季 Gogo 收益電話會議。（操作員指示）請注意，本次會議正在錄音。

I would now like to turn the conference over to your first speaker today, Will Davis, Vice President of Investor Relations. Please go ahead.

現在，我想將會議交給今天的第一位發言者，投資者關係副總裁威爾戴維斯 (Will Davis)。請繼續。

Thank you, and good morning, everyone. Welcome to Gogo's second-quarter 2025 earnings conference call. Joining me today to talk about our results are Chris Moore, CEO; and Zach Cotner, 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.

謝謝大家，早安。歡迎參加 Gogo 2025 年第二季財報電話會議。今天與我一起討論我們業績的有執行長 Chris Moore 和財務長 Zach Cotner。在我們開始之前，我想藉此機會提醒您，在本次電話會議期間，我們可能會對未來事件和公司未來表現做出前瞻性陳述。我們提醒您考慮可能導致實際結果與本次電話會議前瞻性陳述中的結果有重大差異的風險因素。

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 August 7, 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 have included a reconciliation and explanation of adjustments and other considerations of our non-GAAP measures to the most comparable GAAP measures in our second quarter earnings release.

這些風險因素在我們今天上午提交的收益報告中有所描述，並在我們向美國證券交易委員會提交的 10-K 和 10-Q 年度報告以及其他文件中的風險因素下更詳細的說明中有所描述。此外，請注意，本次電話會議的日期為2025年8月7日。我們今天所做的任何前瞻性陳述均基於截至該日期的假設，我們不承擔因更多資訊或未來事件而更新這些陳述的義務。在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。我們在第二季財報中對非公認會計準則指標與最具可比性的公認會計準則指標進行了調節和解釋。

This call is being broadcast. The webcast is 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.

此通話正在廣播中。本次網路直播可在ir.gogoair.com觀看。財報也可在該網站查閱。在管理層發表評論後，我們將僅與金融界舉辦問答環節。

It is now my great pleasure to turn the call over to Chris.

現在我非常高興地將電話轉給克里斯。

Thanks, Will, and good morning, everyone. We believe our Q2 performance reflects the fundamental strengths and capabilities of our business to revolutionize in-flight connectivity by leveraging our strong market position as the only independent global multi-orbit, multiband connectivity company in aviation. With LEO, GEO and ATG broadband we are strongly positioned to support durable demand trends.

謝謝，威爾，大家早安。我們相信，第二季的業績反映了我們業務的基本優勢和能力，即利用我們作為航空業唯一獨立的全球多軌道、多頻段連接公司的強大市場地位，徹底改變機上連接。憑藉 LEO、GEO 和 ATG 寬頻，我們有能力支援持久的需求趨勢。

In Q2, the business continued to show growth as demand for our GEO solutions remained strong across the global business aviation and military government mobility market as we see increased advanced shipments and continued rollout of Gogo Galileo's STCs. Zach will provide more details on our financial performance shortly. But I first want to highlight some key areas of growth and success.

在第二季度，由於全球商務航空和軍事政府行動市場對我們的 GEO 解決方案的需求保持強勁，我們看到先進出貨量增加以及 Gogo Galileo 的 STC 繼續推出，因此業務繼續呈現成長。扎克將很快提供有關我們財務業績的更多詳細資訊。但我首先想強調一些關鍵的成長和成功領域。

Starting with ATG, we reached several significant milestones in the quarter. It gives our team great pride that we announced an important industry-first as we completed the initial end-to-end call using the Gogo 5G chip. We now have the first 5G aircraft in hand and are progressing with the remaining development, integration and testing that will prepare us for our expected Q4 launch this year on the already deployed and operational 5G terrestrial infrastructure.

從 ATG 開始，我們在本季實現了幾個重要的里程碑。我們的團隊非常自豪地宣布，我們使用 Gogo 5G 晶片完成了首次端對端通話，創造了業界的一項重要紀錄。我們現在已經擁有第一架 5G 飛機，並且正在進行剩餘的開發、整合和測試，為我們在今年第四季度在已經部署和運行的 5G 地面基礎設施上推出做好準備。

We also have positive news regarding our FCC rip and replace program, which now provides a $35,000 incentive for C1 installations completed before December 31, 2025. The C1 incentive enables to upgrade for over 40 aircraft models to our LTE network. This funding and citification allow classic customers to seamlessly upgrade in advance of the May 8, 2026, classic network cutover.

我們還帶來了有關 FCC 拆除和更換計劃的好消息，該計劃現在為 2025 年 12 月 31 日之前完成的 C1 安裝提供 35,000 美元的獎勵。C1 激勵措施使 40 多種飛機型號能夠升級到我們的 LTE 網路。這筆資金和資金支持使經典客戶能夠在 2026 年 5 月 8 日經典網路切換之前無縫升級。

We also had significant announcements for Gogo Galileo with the OEM wins. Embraer announced it will offer Gogo Gallileo HDX as an the aftermarket option for the popular been on 300 light jets, which has over 800 aircraft in operation. Textron also announced that the HD-X will be available for aftermarket installations on sustentation types once the FAA has confirmed the SEC, this is expected in late 2025.

我們也發布了有關 Gogo Galileo 贏得 OEM 的重要公告。巴西航空工業公司宣布將為廣受歡迎的 300 架輕型噴射機提供 Gogo Gallileo HDX 作為售後市場選項，該系列飛機目前正在運營 800 多架。德事隆還宣布，一旦美國聯邦航空管理局 (FAA) 確認了 SEC，HD-X 將可用於支援類型的售後安裝，預計將於 2025 年底完成。

We expect it to continue delivering on the 38 HDX STCs under contract through our dealer and OEM networks. We now have eight HDX STCs approved, covering 10 aircraft types, with a further 13 development. STCs for the FDX variants are in progress with 10 STC contracts in the works with dealers, as previously announced, we have also signed an agreement with an undisclosed OEM, confirming STC will be live the option for all its production aircraft.

我們預計它將繼續透過我們的經銷商和 OEM 網路交付合約規定的 38 輛 HDX STC。我們目前已獲得 8 個 HDX STC 批准，涵蓋 10 種飛機類型，另有 13 種正在開發中。FDX 變體的 STC 正在進行中，與經銷商簽訂了 10 份 STC 合同，正如之前宣布的那樣，我們還與一家未公開的 OEM 簽署了一項協議，確認 STC 將成為其所有生產飛機的選項。

On the back of this good news, I'm looking forward to reviewing our strong Q2 performance. I'll cover our quarterly operating results, provide updates on our GEO broadband services, and highlight realized acquisition-related cost synergies. We will also review our demand potential and outline our strategic approach to capitalize on these opportunities to enhance shareholder value. I'll finish by sharing progress on key strategic initiatives.

基於這項好消息，我期待回顧我們強勁的第二季業績。我將介紹我們的季度經營業績，提供我們的 GEO 寬頻服務的最新信息，並強調實現的收購相關成本協同效應。我們還將審查我們的需求潛力，並概述我們的策略方針，以利用這些機會來提高股東價值。最後，我將分享關鍵策略舉措的進展。

Our free cash flow exceeded our internal forecast and consensus expectations. This is driven by high-growth profit due to record equipment revenue, lower operating expenses, continued synergy realization, and higher-than-expected adjusted EBITDA at approximately $62 million. On the revenue front, the higher-than-expected advanced equipment sales and higher ARPU on geo services contributed to driving revenue, 3% above consensus.

我們的自由現金流超出了我們的內部預測和普遍預期。這是由於創紀錄的設備收入、較低的營運費用、持續的協同效應實現以及高於預期的調整後 EBITDA（約 6,200 萬美元）帶來的高成長利潤。在收入方面，高於預期的先進設備銷售和地理服務的更高 ARPU 推動了收入成長，比預期高出 3%。

Though we're still seeing a gradual decline in ATG units online, we expect to see this slow and perhaps even turnaround as classic customers start taking advantage of our C1 rebate program (inaudible) to decide to upgrade from Classic to advance in anticipation of our classic network cutover to LTE in May 2026. Towards that end, we set a record for ATG shipments in the quarter with 405, including 276 advanced and 129 C1 units. Shipments a strong indicator of future online activations.

儘管我們仍然看到 ATG 在線單位數量逐漸下降，但我們預計這一下降趨勢將緩慢甚至可能出現好轉，因為經典客戶開始利用我們的 C1 返利計劃（聽不清）決定從經典升級到高級，以期在 2026 年 5 月將經典網絡切換到 LTE。為此，我們本季創下了 ATG 出貨量記錄，達到 405 台，其中包括 276 台高級型和 129 台 C1 型。出貨量是未來線上啟動的有力指標。

We also set a record 144 classic to advance upgrades for the quarter as shipments turned into activations. We had strong performance in our HDX LEO terminals as we recognized $1.7 million of equipment revenue. And year-to-date, we have shipped a total of 77 units. As I've stated earlier, we now have eight HDX SDCs approved, covering 10 aircraft types with a further [30 DCs] in development. We have also shipped our first three Gogo Gallileo FDX units to support STC generation for mid- to large business jet customers.

隨著出貨量轉換為啟動量，我們也創下了本季 144 個經典升級到高級升級的記錄。我們的 HDX LEO 終端表現強勁，實現了 170 萬美元的設備收入。今年迄今為止，我們共出貨了 77 台。正如我之前所說，我們現在已經批准了 8 個 HDX SDC，涵蓋 10 種飛機類型，另外還有 [30 個 DC] 正在開發中。我們也已交付首批三台 Gogo Gallileo FDX 設備，為中型到大型公務機客戶提供 STC 生成支援。

Our GEO products and airline aircraft online continue to grow up 41 units from Q1 with 1,321 aircraft connected to Gogo. This is up 177 units from Q2 2024, up 15%. This demonstrates the power of the OEM line fit as many of these systems are installed at the factory. We also believe it shows a predisposition of many heavy jet customers to take both LEO and GEO offerings to get the capacity, redundancy and global coverage that neither LEO or GEO can provide alone. For instance, no LEO provider today can provide service in China for GEO chem.

我們的 GEO 產品和線上航空公司飛機數量從第一季起持續成長 41 個單位，目前有 1,321 架飛機連接到 Gogo。這比 2024 年第二季增加了 177 個單位，成長了 15%。這證明了 OEM 線路適配的強大功能，因為許多此類系統都是在工廠安裝的。我們也認為，這表明許多重型噴射機客戶傾向於同時採用 LEO 和 GEO 產品，以獲得 LEO 或 GEO 無法單獨提供的容量、冗餘度和全球覆蓋範圍。例如，目前沒有一家 LEO 供應商能夠在中國提供 GEO Chem 服務。

In Q2, we completed synchronizing our Advance and SDR routers to schedule. The router located in the aircraft or the core of in-flight connectivity systems and data management. The SDR, DRG and advanced routers are now compatible for Gogo Galileo installation, allowing for easy upgrade opportunities for customers. This adds to the approximate 2,400 aircraft equipped with SD routes to be almost 4,800 advents installed Gogo fleet.

在第二季度，我們完成了 Advance 和 SDR 路由器的同步。路由器位於飛機上或機上連接系統和資料管理的核心。SDR、DRG 和高級路由器現在相容於 Gogo Galileo 安裝，為客戶提供輕鬆升級的機會。加上配備 SD 航線的約 2,400 架飛機，Gogo 機隊已擁有近 4,800 架飛機。

These aircraft can now be installed at Gogo Gallileo without extensive rewiring side the aircraft. It's also worth noting that the SacconDirect routers aligns that on three aircraft models, which add several hundred aircraft a year to that easy installed fleet.

這些飛機現在可以在 Gogo Gallileo 安裝，而無需對飛機進行大量重新佈線。還值得注意的是，SacconDirect 路由器可與三種飛機型號相匹配，從而每年為易於安裝的機隊增加數百架飛機。

Additional software and hardware harmonization for our router family are scheduled for the next two years, which will continue to improve performance for customers and lower costs for Gogo. Gogo remains the only company that can satisfy the needs of customers seeking multiple connectivity solutions from a single source. The military needs to fulfill pace, primary, alternate, contingent and emergency requirements, and global customers want a short redundancy. This gives us a significant competitive advantage and some very attractive segments of the market.

我們計劃在未來兩年內對路由器系列進行額外的軟體和硬體協調，這將繼續提高客戶的效能並降低 Gogo 的成本。Gogo 仍然是唯一一家能夠滿足客戶從單一來源尋求多種連接解決方案的需求的公司。軍隊需要滿足速度、基本、替代、緊急和緊急需求，而全球用戶則需要短期冗餘。這為我們帶來了顯著的競爭優勢和一些非常有吸引力的細分市場。

We are progressing towards our synergy goals. We've completed most of the key actions to reach our now anticipated $30 million to $35 million synergy cost savings. We have completed staff synergies associated with the merger, along with other actions such as Chicago data center transition to the Melbourne Florida side, the transition of the SD avionics manufacturing to Colorado, which is targeted to be completed by the year-end. The FD Melbourne building cell is expected to be finalized by the end of August. This will offset the $15 million to $20 million investment required to achieve the projected recurring synergy savings.

我們正在朝著協同目標邁進。我們已經完成了大部分關鍵行動，以實現目前預期的 3,000 萬至 3,500 萬美元的協同成本節約。我們已經完成了與合併相關的員工協同，以及其他行動，例如芝加哥資料中心向佛羅裡達州墨爾本的轉移、SD 航空電子設備製造向科羅拉多州的轉移，目標是在年底前完成。FD 墨爾本建築單元預計將於 8 月底完工。這將抵消實現預計的經常性協同效應節省所需的 1500 萬至 2000 萬美元的投資。

In total, we have another 36 integration projects still underway, focused on moving to common systems and process, and we expect further cost synergies from many of these. Business Aviation is currently characterized by strong OEM results, expanding fractional fleets and robust flight counts.

總體而言，我們還有另外 36 個整合專案仍在進行中，重點是轉向通用系統和流程，我們預計其中許多專案將進一步實現成本協同效應。目前，公務航空的特點是原始設備製造商業績強勁、部分機隊不斷擴大以及航班數量強勁。

In Q2, the five major OEMs increased aircraft deliveries 11% year-on-year and reported a very strong aggregate book-to-bill of 1.3 times the trend is set to continue. And with the one big, beautiful Bill Act signed in July, allowing businesses to deduct the full acquisition cost of eligible aircraft, we believe this positive momentum will continue into 2026. We believe this presents a significant opportunity for the increased broadband connectivity and installations and a major opportunity for Gogo. This sector remains buoyant with recent announcements confirming strong market growth.

第二季度，五大原始設備製造商的飛機交付量年增了 11%，總訂單出貨比非常強勁，達到 1.3 倍，這一趨勢還將持續。隨著 7 月簽署的一項重要而出色的法案，允許企業扣除符合條件的飛機的全部購買成本，我們相信這種積極勢頭將持續到 2026 年。我們相信這為增加寬頻連線和安裝提供了一個重要的機會，對 Gogo 來說也是一個重大機會。該行業依然保持活躍，最近的公告證實了強勁的市場成長。

Fractional ownership operator, Flexjet announced an investment of $800 million. The company has indicated that much of it will be spent on improving passenger experience, much of which relies on connectivity. In addition, Bombardier recently announced a new fleet order for 50 aircraft with an option for a further 70 presenting a considerable opportunity for Gogo. This trend indicates more business aircraft will be entering the global fleet than leaving and more hours being (inaudible). As a result, demand for connectivity should continue to increase.

部分所有權營運商 Flexjet 宣布投資 8 億美元。該公司表示，大部分資金將用於改善乘客體驗，而這很大程度上依賴連結性。此外，龐巴迪最近宣布了一項新的 50 架飛機訂單，並可選擇再訂購 70 架飛機，這為 Gogo 帶來了巨大的機會。這一趨勢表明，加入全球機隊的商務飛機數量將超過離開的飛機數量，飛行時間也將增加。（聽不清楚）。因此，對連接的需求應該會繼續增加。

International governments are seeking alternative satellite suppliers, which provides an opportunity for Gogo and our multi-network approach. The French government has already strengthened OneWeb's competitive position by becoming UtelSat's largest shareholder following a $1.55 billion capital commitment. This will support continued OneWeb network investments as (inaudible) only connectivity service partner for Business Aviation, we believe this strengthens our position to respond to growing demand and maximize our global office expansion.

國際政府正在尋找替代衛星供應商，這為 Gogo 和我們的多網路方法提供了機會。法國政府已承諾向 UtelSat 投資 15.5 億美元，成為其最大股東，從而增強了 OneWeb 的競爭地位。這將支持 OneWeb 作為（聽不清楚）商務航空唯一連接服務合作夥伴繼續進行網路投資，我們相信這加強了我們應對不斷增長的需求和最大限度地擴大全球辦事處的地位。

In summary, we see demand for quality in-flight connectivity in both business aviation and military government mobility verticals, surging, while overall penetration remains extremely low, only 9,700 or 24%, a roughly 41,000 global business aircraft, which have broadband connectivity today. Gogo's strategy for value creation is to grow our share of a highly unpenetrated market by strengthening existing and creating new long-term, high-margin, recurring revenue customer relationships. We plan to do this by first delivering the many new products I've just described that significantly improved performance over traditional in-flight connectivity products.

總而言之，我們看到商務航空和軍事政府移動垂直領域對高品質機上連線的需求激增，但整體普及率仍然極低，目前全球僅有 9,700 架（約 41,000 架）或 24% 的商務飛機具備寬頻連線。Gogo 的價值創造策略是透過加強現有客戶關係和建立新的長期、高利潤、經常性收入客戶關係來擴大我們在高度未滲透市場的份額。我們計劃透過首先推出我剛才描述的許多新產品來實現這一目標，這些產品的性能比傳統的機上連接產品有顯著的提高。

Second, engineering equipment that is purpose-built for our market and easier to install, maintain and upgrade than competitive products; third, expanding our addressable market by utilizing the broad product offering and global footprint facilitated by the SD Gogo merger to satisfy the needs of all segments of our vertical markets; fourth, leveraging our significant presence in those markets to attract the best technology distribution and network partners on the best times to serve our customers; and finally, provide the world-class customer support that our customers demand. This strategy underpins our approach to multi-network, open architecture platforms and enables broad mission coverage across both business aviation and military government markets.

第二，設計專門針對我們市場且比競爭產品更易於安裝、維護和升級的設備；第三，利用 SD Gogo 合併帶來的廣泛產品供應和全球影響力，擴大我們的潛在市場，以滿足我們垂直市場各個部分的需求；第四，利用我們在這些市場中的重要地位，在最佳時機吸引最佳技術分銷和網絡合作夥伴，為我們的客戶提供一流的客戶服務這項策略鞏固了我們對多網路、開放式架構平台的方法，並實現了對商務航空和軍事政府市場的廣泛任務覆蓋。

That flexibility is core to our future proofed hardware design strategy that can support multiple barriers with network-agnostic modular terminals such as our plan simple Geo and Gogo LEO antenna portfolio. With the upcoming launch of multiple Ka-band LEO networks, Gogo can leverage our terminal network architecture, so we remain agnostic about our customers enabling the latest developments from satellite providers on any aircraft type.

這種靈活性是我們面向未來的硬體設計策略的核心，該策略可以透過與網路無關的模組化終端（例如我們的計劃簡單 Geo 和 Gogo LEO 天線產品組合）來支援多種障礙。隨著即將推出的多個 Ka 波段 LEO 網絡，Gogo 可以利用我們的終端網路架構，因此我們不會擔心我們的客戶是否能夠在任何類型的飛機上使用衛星供應商的最新發展成果。

Our expanding global support network is a key part of the distribution partners part of this strategy. We now have 148 dealers across 233 locations. These dealers are invested in STC generation, ongoing customer support, and as our representatives across the globe act as a force multiplier to our sales efforts. Now I'd like to share a few updates on the progress we are making towards some of the efforts that support this strategy. Since the start of operations in April, our LEO (inaudible) customers have used over 1,200 hours.

我們不斷擴大的全球支援網絡是此策略分銷合作夥伴部分的重要組成部分。我們現在在 233 個地區擁有 148 家經銷商。這些經銷商致力於 STC 產生、持續的客戶支持，並且作為我們遍布全球的代表，為我們的銷售工作提供倍增力量。現在，我想分享一些我們在支持這項策略的一些努力方面取得的進展。自四月開始營運以來，我們的 LEO（聽不清楚）客戶已使用了超過 1,200 小時。

HDX is ideal for the 12,000 midsized and smaller aircraft that fly outside of North America and have no broadband solution today, an aircraft among the 11,000 midsized and smaller North American registered aircraft that often fly regionally outside [Konas] or on faster mean speeds than 5G alone can provide. The FDX terminal is designed for the 9,700 larger business aircraft operators many of which fly in into Continental missions as well as our VVIP and government clients.

HDX 非常適合在北美以外飛行且目前沒有寬頻解決方案的 12,000 架中型和小型飛機，這些飛機屬於在北美註冊的 11,000 架中型和小型飛機，這些飛機經常在 [科納斯] 以外的區域飛行，或者以比 5G 本身所能提供的更快的平均速度飛行。FDX 航站樓專為 9,700 家大型商務飛機營運商設計，其中許多營運商飛往大陸航空執行任務，以及我們的 VVIP 和政府客戶。

We are off to a strong start for Gallileo. Our early customers are positive about the HDX performance and we have more than 500-plus immediate opportunities for HDX in our sales pipeline. 40% of these are overseas, and we are seeing strong interest from international operators. We've already signed our first multi-aircraft deal with the Middle East charter operator.

伽利略 (Gallileo) 已經有了一個好的開始。我們的早期客戶對 HDX 的表現持正面態度，我們的銷售管道中已有 500 多個 HDX 的直接銷售機會。其中 40% 在海外，我們看到國際業者的濃厚興趣。我們已經與中東包機業者簽署了第一份多架飛機協議。

As I mentioned at the start, we've made a crucial step towards -- forward in terms of our 5G product which is targeted at large segments of the North American midsize and smaller market that wants a good connectivity experience but a lower cost than satellite products. Our chipset supply successfully completed the first end-to-end call using the Gogo 5G chip in June. The chip is now in the final phase of testing at our Greenfield and Chicago facilities.

正如我在開始時提到的，我們在 5G 產品方面邁出了關鍵的一步，該產品的目標客戶是北美中小型市場的大部分客戶，他們希望獲得良好的連接體驗，但成本低於衛星產品。我們的晶片組供應商於 6 月成功完成了使用 Gogo 5G 晶片的首次端對端通話。該晶片目前正處於我們位於格林菲爾德和芝加哥的工廠的最後測試階段。

Following the integration into the advanced Alex 5 (inaudible) is anticipated to commence in September and to go live by year-end. It is worth noting that we have already made a bulk chip purchase to ensure supply for our customers when ready. More than 300 aircraft are now pre-provisioned for launch, the 5G to tower network is complete with 170 installed across the US and Southern Canada. Gogo has already received FAA approval to produce and manufacture advanced X5 LRU and 25 STCs in the new antenna covering 8,500 aircraft. The new 5G core is installed in our data center.

預計與先進的 Alex 5（聽不清楚）的整合將於 9 月開始，並於年底上線。值得注意的是，我們已經進行了批量晶片採購，以確保在準備就緒時向客戶提供供應。目前已有 300 多架飛機做好了發射前的準備，5G 到塔網絡已在美國和加拿大南部安裝完畢 170 個。Gogo 已經獲得 FAA 批准，可以在覆蓋 8,500 架飛機的新天線中生產和製造先進的 X5 LRU 和 25 STC。新的5G核心已安裝在我們的資料中心。

Our next-generation LTE network deployment is also underway. The first LTE Tower antenna has been installed, and we are beginning network build-out in anticipation with the cut favor. Supporting the transition we announced most for aircraft high STC for the Gogo C1 unit. This covers 42 aircraft representing 70% of the in-store Gogo Classic fleet. We have already shipped 234 units for customers.

我們的下一代LTE網路部署也正在進行中。第一個 LTE 塔天線已經安裝完畢，我們正開始按照預期進行網路建置。為了支持這一轉變，我們宣佈為 Gogo C1 單元提供最適用於飛機的高 STC。這包括 42 架飛機，佔店內 Gogo Classic 機隊的 70%。我們已經為客戶出貨了234台。

As mentioned previously, the FCC rip and replace program now provides incentives for C1 installations assisting customers with the replacement of the old Gogo classic installs. The C1 LTE box has the same form factor as the old classic product, allowing for a very fast unit swap but has dual BDO and LTE aircrafts. This enables a seamless network cutover. For customers lacking the time or budget for advanced upgrade before the May 2026 transition, this solution enables a cost-effective option and keeps our customers connected and preserves Gogo service revenue from this market segment.

如前所述，FCC 拆除和更換計劃現在為 C1 安裝提供激勵措施，幫助客戶更換舊的 Gogo 經典安裝。C1 LTE 盒子具有與舊款經典產品相同的外形，允許非常快速的單元交換，但具有雙 BDO 和 LTE 飛機。這使得無縫網路切換成為可能。對於在 2026 年 5 月過渡之前缺乏時間或預算進行高級升級的客戶，此解決方案提供了一種經濟高效的選擇，使我們的客戶保持連接，並保留了來自該細分市場的 Gogo 服務收入。

We are urging customers to commit before year-end to take advantage of the FCC rebate and be ready for the cutover. In the [MilGov vertical], we see an opportunity for Gogo Solutions to be integrated with SD's GEO offerings.

我們敦促客戶在年底之前承諾利用 FCC 回扣並為切換做好準備。在 [MilGov 垂直領域]，我們看到了 Gogo Solutions 與 SD 的 GEO 產品整合的機會。

Our current revenue mix in this segment includes a significant portion of legacy narrowband services which are expected to decline gradually over the next several years. However, we anticipate broadband growth in the mill gov sector will materially outpace the decline in narrowband as the segment transitions to broadband solutions.

我們目前在該領域的收入結構中，很大一部分來自傳統窄頻服務，預計未來幾年該業務收入將逐漸下降。然而，我們預計，隨著工廠政府部門向寬頻解決方案的過渡，該部門的寬頻成長將大大超過窄頻的下降。

Today, almost all MilGov mobility aircraft still rely heavily on voice over radio and narrow band for communications, which is limited in bandwidth there is a significant effort underway to upgrade to new broadband satellite technologies.

如今，幾乎所有 MilGov 機動飛機仍然嚴重依賴無線電語音和窄帶進行通信，由於頻寬有限，因此正在大力升級到新的寬頻衛星技術。

The US Air Force [25-25] program aims to equip 25% of this 1,100 mobility aircraft with satellite communications by the end of 2025. This still leaves 75% of the fleet without satellite connectivity, which the Air Force believes must be addressed, presenting a substantial opportunity for growth. We believe Gogo's LEO product will be an excellent complement to our GEO products in this market due to the DoD PACE protocol, which requires military programs to have primary alternate contingent and emergency systems.

美國空軍[25-25]計畫的目標是到2025年底，為這1100架機動飛機中的25%配備衛星通訊。但仍有 75% 的機隊沒有衛星連接，空軍認為必須解決這個問題，這為成長帶來了巨大的機會。我們相信，由於國防部 PACE 協議要求軍事項目擁有主要的備用緊急系統，Gogo 的 LEO 產品將成為我們在這個市場上的 GEO 產品的絕佳補充。

With the support of the government funding, Gogo is also leveraging our SD Pro operating system, which enables monitoring and utilization of pace. We also see the opportunity for 5G as ground as a possible new alternative for redundancy. While there have been some delays in awards the general trend towards better communication systems for aircraft aligned with the US administration's broader goal for modernizing the military. We've also added a key resource to the Gogo Board of Directors with the recent appointment of retired General Mike Minehan.

在政府資金的支持下，Gogo 也利用我們的 SD Pro 作業系統，實現對速度的監控和利用。我們也看到了 5G 作為冗餘的潛在新替代方案的機會。儘管合約授予出現了一些延遲，但改進飛機通訊系統的整體趨勢與美國政府實現軍隊現代化的更廣泛目標是一致的。我們也最近任命了退休將軍 Mike Minehan，為 Gogo 董事會增添了一位重要資源。

Finally, I'll touch briefly on tariffs. We have made provisions, and while our decisions remain fluid, we believe that as the trade deals currently stand, there is minimal impact on aviation and our exposure is much reduced.

最後，我將簡要地談談關稅問題。我們已經做好了準備，雖然我們的決定仍不確定，但我們相信，就目前的貿易協議而言，對航空業的影響微乎其微，我們的風險敞口也大大減少。

In conclusion, we are pleased that our strategic investments are now being delivered. We are uniquely positioned to capitalize on the increased demand of in-flight connectivity as our multi-orbit multi-brand approach gives the business a competitive edge. We feel very positive about the merger process.

總之，我們很高興我們的策略投資現在正在實現。由於我們的多軌道多品牌方法為企業帶來了競爭優勢，因此我們具有獨特的優勢，可以利用日益增長的機上連接需求。我們對合併過程感到非常樂觀。

So far, we are achieving the cost product and commercial synergies we wanted to accomplish with the FD Gogo combination. We expect to produce compelling financial results in 2026 driven by growth in service revenue from our new products, a significant reduction in product program spend the full year impact of synergies made in 2025 and full funding of our FCC rip and replace program.

到目前為止，我們正在實現我們希望透過 FD Gogo 組合實現的成本產品和商業協同效應。我們預計，在新產品服務收入增長、產品計劃支出大幅減少、2025 年協同效應帶來的全年影響以及 FCC 拆除和更換計劃的全額資助的推動下，2026 年將取得令人矚目的財務業績。

And now I will hand over to Zach to talk about the numbers.

現在我將把時間交給扎克來談論這些數字。

Thanks, Chris, and good morning, everyone. Like last quarter, I'm pleased to report that second quarter results were ahead of expectations for revenue, adjusted EBITDA and free cash flow. Our integration is progressing well. Cost controls are taking root and the demand for our new products continues to ramp. As our product investments roll off, we continue to expect solid free cash flow growth in 2016 combined with further deleveraging.

謝謝，克里斯，大家早安。與上一季一樣，我很高興地報告，第二季的業績超出了收入、調整後 EBITDA 和自由現金流的預期。我們的整合進展順利。成本控制正在紮根，對我們新產品的需求持續成長。隨著我們產品投資的增加，我們預計 2016 年自由現金流將穩健成長，同時進一步去槓桿。

Strong first half results led to improvements across the board in our '25 financial guidance, which I'll discuss later in my remarks. Our 2025 guidance continues to reflect limited new product revenue given most HGX shipments are STC focused and our 5G network is anticipated to launch in Q4. We 2025 remains an investment year, priming the pump for new product service revenue in 2026 and beyond. I'll now provide an overview of Gogo's second quarter financial performance, then I will turn to our capital allocation priorities our positive outlook regarding a potential refinancing over the coming quarters. And finally, I'll conclude with additional context on our raise 2025 financial guidance.

上半年的強勁業績帶動了我們 25 年財務指引的全面改善，我將在後面的發言中討論這一點。由於大多數 HGX 出貨量都集中在 STC 上，並且我們的 5G 網路預計將於第四季度推出，因此我們對 2025 年的預期繼續反映出有限的新產品收入。我們仍將 2025 年視為投資年，為 2026 年及以後的新產品服務收入做好準備。我現在將概述 Gogo 第二季度的財務業績，然後我將轉向我們的資本配置重點以及對未來幾季潛在再融資的積極展望。最後，我將總結我們提高 2025 年財務指導的更多背景資訊。

On a combined pro forma basis, Gogo's total revenue in the second quarter was $226 million, up 1% year-over-year and down about 2% sequentially. On a stand-alone basis, Satcom Direct Q2 revenue grew approximately 1% from the prior year. Total service revenue of $194 million increased 137% over the prior year and declined 2% compared to the prior quarter.

以合併備考基礎計算，Gogo 第二季總營收為 2.26 億美元，年增 1%，季減約 2%。從獨立數據來看，Satcom Direct 第二季的營收比去年成長了約 1%。總服務收入為 1.94 億美元，比上年增長 137%，比上一季下降 2%。

At the end of Q2, total ATG aircraft online were 6,730 or a decline of approximately 4% versus the prior year period and down 2.5% sequentially. Despite the pressure on total ATG AOL, Advanced AOL grew nearly 14% from the prior year period and now comprises more than 71% of the total ATG fleet, up from 60% in Q2 2024.

截至第二季末，ATG 線上飛機總數為 6,730 架，比去年同期下降約 4%，比上一季下降 2.5%。儘管 ATG AOL 總量面臨壓力，但高階 AOL 較上年同期成長了近 14%，目前佔 ATG 總量的 71% 以上，高於 2024 年第二季的 60%。

In the last two years, our total advanced AOL has grown nearly by nearly 1,200. Our 2025 guidance continues to assume advanced AOL growth, but the total overall ATG AOL will be lower at year-end '25 versus year-end '24. We believe that the rollout of 5G and LTE will help improve the trajectory of our ATG subscriber trends. Total ATG ARPU of $3.445 was relatively flat versus both the prior year and the prior quarter. Total broadband GEO AOL, excluding networks that are end of life, reach [1,321], up 15% from the prior year and 3% sequentially.

在過去的兩年裡，我們的先進 AOL 總數增加了近 1,200 個。我們對 2025 年的預測繼續假設 AOL 實現高級成長，但 25 年底 ATG AOL 整體規模將低於 24 年底。我們相信，5G 和 LTE 的推出將有助於改善我們的 ATG 用戶趨勢。ATG ARPU 總額為 3,445 美元，與去年同期和上一季相比基本持平。不包括已終止使用的網絡，GEO AOL 寬頻總數達到 [1,321]，比上年增長 15%，比上一季增長 3%。

The strength underscores our strong line-fit position with OEMs. In addition, most geo broadband aircraft are under fixed-term contracts, which helps to create revenue stability and our GEO ARPU is holding up better than expected.

這項實力凸顯了我們與原始設備製造商 (OEM) 之間強大的生產線適配地位。此外，大多數地理寬頻飛機都簽訂了固定期限合同，這有助於創造收入穩定性，我們的 GEO ARPU 表現優於預期。

Now turning to equipment revenue. Total equipment revenue in the second quarter was $32.1 million, up 59% year-over-year and 1% sequentially. Total advanced equipment shipments of 276 increased 19% versus the prior year period and 15% sequentially. This was our highest advanced equipment shipment quarter in the last two years, and we believe this strength bodes well for the future conversion of Classic customers to advance ahead of our LTE network cutover.

現在轉向設備收入。第二季設備總營收為 3,210 萬美元，年增 59%，季增 1%。先進設備總出貨量為 276 台，比去年同期成長 19%，比上一季成長 15%。這是我們過去兩年中先進設備出貨量最高的一個季度，我們相信這一強勁勢頭將有利於未來 Classic 客戶在我們 LTE 網路切換之前實現轉變。

Regarding our profitability, Gogo delivered combined service margins inclusive of Satcom Direct of 52.9%, up slightly sequentially. Stand-alone Gogo service margin was approximately 77% and in line with our previously stated targets. Service gross profit accounted for 96% of our total gross profit in Q2, and we focus on driving this recurring high-margin service revenue. Equipment margins were nearly 14% in the second quarter.

關於我們的獲利能力，Gogo 的綜合服務利潤率（包括 Satcom Direct）為 52.9%，較上季略有上升。獨立的 Gogo 服務利潤率約為 77%，符合我們先前提出的目標。服務毛利占我們第二季總毛利的 96%，我們專注於推動這項經常性高利潤率的服務收入。第二季設備利潤率接近14%。

As a reminder, we expect Gala equipment pricing to be close to cost. Now turning to our operating expenses. Total Q2 operating expenses, excluding depreciation and amortization, were $55.9 million, down roughly $2 million sequentially. I will now provide additional commentary on our major strategic initiatives, 5G, Galileo and the FCC reimbursement program. In the second quarter, $1.5 million of 5G spending was all tied to CapEx.

提醒一下，我們預計 Gala 設備定價將接近成本。現在談談我們的營運費用。第二季總營運費用（不包括折舊和攤提）為 5,590 萬美元，比上一季下降約 200 萬美元。我現在將對我們的主要策略舉措、5G、伽利略和 FCC 報銷計劃提供進一步的評論。第二季度，150 萬美元的 5G 支出​​全部與資本支出相關。

We expect total 5G spend to decline significantly in 2026 as we roll out 5G in Q4. Turning to Galle, we reported $1.3 million in OpEx in the second quarter. We continue to expect total external development costs for both the HDX and FDX solutions to be less than $50 million, of which $31 million was incurred from 2022 through the first half of 2025 and approximately $9 million is expected for the rest of the year. We anticipate approximately 80% of Galileo's external development costs will be in OpEx.

隨著我們在第四季推出 5G，我們預計 2026 年 5G 總支出將大幅下降。談到加勒，我們報告第二季的營運支出為 130 萬美元。我們繼續預期 HDX 和 FDX 解決方案的總外部開發成本將低於 5,000 萬美元，其中 3,100 萬美元發生在 2022 年至 2025 年上半年，預計今年剩餘時間將花費約 900 萬美元。我們預計伽利略約 80% 的外部開發成本將用於營運支出。

And finally, our FCC reimbursement program. Following the passage of the National Defense Authorization Act last year, we continue to anticipate increased reimbursement of about $50 million for our FCC program. This funding will support the upgrade of our ATE network to LTE and provide incentives to upgrade our Classic fleet to advance. In the second quarter, we received $5.9 million in FCC grant funding, bringing our program to date total to $53.4 million.

最後，我們的 FCC 補償計劃。繼去年《國防授權法案》通過後，我們預計 FCC 計畫的報銷金額將增加約 5,000 萬美元。這筆資金將支持我們的 ATE 網路升級到 LTE，並提供激勵措施來升級我們的 Classic 車隊。第二季度，我們收到了 590 萬美元的 FCC 撥款，使我們的專案迄今為止總額達到 5,340 萬美元。

As of June 30, 2025, we recorded a $9.8 million receivable from the FCC and incurred $5.4 million reimbursable spend during the quarter. The receivables included in prepaid expenses and other current assets on our balance sheet, with corresponding reductions to property and equipment, inventory and contract assets with a pickup in the income statement.

截至 2025 年 6 月 30 日，我們記錄了來自 FCC 的 980 萬美元應收款，並在本季發生了 540 萬美元的可報銷支出。應收帳款在我們的資產負債表中計入預付費用和其他流動資產，並相應減少物業及設備、存貨及合約資產，同時在損益表中增加。

Moving to our bottom line. Gogo generated $61.7 million in adjusted EBITDA in the second quarter. Our adjusted EBITDA margin was 27.3% as compared to our initial long-term view in the mid-20s when the Satcom acquisition was announced last year. Gogo reported second quarter net income of $12.8 million and $0.09 of diluted EPS. I will now provide some color on our synergy progress.

轉向我們的底線。Gogo 第二季的調整後 EBITDA 為 6,170 萬美元。我們的調整後 EBITDA 利潤率為 27.3%，而去年宣布收購 Satcom 時我們最初的長期預期是 20% 左右。Gogo 公佈第二季淨收入為 1,280 萬美元，稀釋每股收益為 0.09 美元。現在我將介紹我們的協同進展。

I'm pleased to announce that within two years, we now expect to achieve run rate synergies in the $30 million to $35 million range, up from our prior view of $25 million to $30 million. While we achieved the vast majority of head count reductions, we expect further cost improvements from non-headcount areas like real estate and back-office software solutions. We achieved $18 million of run rate synergies at the close of the acquisition, another $9 million during the first quarter and a further $2 million in the second quarter. We continue to believe the cost to achieve these synergies will be within our previously expected range of $15 million to $20 million.

我很高興地宣布，我們預計在兩年內實現 3000 萬至 3500 萬美元的運行率協同效應，高於我們之前預期的 2500 萬至 3000 萬美元。雖然我們實現了絕大多數員工人數的減少，但我們預計非員工人數領域的成本將進一步降低，例如房地產和後台軟體解決方案。我們在收購結束時實現了 1800 萬美元的運行率綜效，第一季又實現了 900 萬美元，第二季又實現了 200 萬美元。我們仍然相信，實現這些協同效應的成本將在我們先前預期的 1,500 萬美元至 2,000 萬美元範圍內。

Moving to free cash flow. Gogo generated $34 million of free cash flow in the quarter, above expectations and totaling $64 million in the first half. While we expect free cash from the second half of '25 to be lower than the first half, we believe our recent cash flow trends portend well for our longer-term outlook once investments roll off, new product service revenue begins, and we continue to delever.

轉向自由現金流。Gogo 本季產生了 3,400 萬美元的自由現金流，高於預期，上半年總計達到 6,400 萬美元。雖然我們預計 25 年下半年的自由現金將低於上半年，但我們相信，一旦投資開始，新產品服務收入開始，並且我們繼續去槓桿，我們最近的現金流趨勢將預示著我們的長期前景良好。

Now I'll turn to a discussion of our balance sheet. Google ended the quarter with $102.1 million in cash and short-term investments and $850 million in outstanding principal on our two term loans with our $122 million revolver remained undrawn. Our cash balance as of last Monday was $116 million.

現在我將開始討論我們的資產負債表。谷歌本季結束時擁有 1.021 億美元的現金和短期投資，兩筆定期貸款的未償還本金為 8.5 億美元，還有 1.22 億美元的循環信貸尚未提取。截至上週一，我們的現金餘額為 1.16 億美元。

For Q2, this equates to a net leverage ratio of 3.2 times, and we expect this ratio to remain relatively flat through year-end with a slight downward bias. Our cash interest paid for the second quarter, net of hedge cash flow was $16 million. As previously discussed, our hedge agreement stepped down at the end of July to $250 million the strike rate increasing from 125 basis points to 225 basis points, resulting in approximately 30% of the loans being hedged.

對於第二季度，這相當於淨槓桿率為 3.2 倍，我們預計該比率到年底將保持相對平穩，並略有下降。我們第二季支付的現金利息扣除對沖現金流後為 1,600 萬美元。如前所述，我們的對沖協議在 7 月底降至 2.5 億美元，執行利率從 125 個基點上升至 225 個基點，導致約 30% 的貸款被對沖。

As a reminder, the cash interest paid for 2024 net of hedge cash flow was $33 million and we continue to expect that to be approximately $70 million this year. Given our improved financial performance and relative strength of the credit markets, we and our banking partners believe there is sufficient market appetite to pursue a comprehensive refinancing over the coming quarters. We believe this will be a positive outcome for Gogo and its stakeholders.

提醒一下，2024 年支付的現金利息扣除對沖現金流後為 3,300 萬美元，我們預計今年的現金利息將達到約 7,000 萬美元。鑑於我們財務表現的改善和信貸市場的相對強勢，我們和我們的銀行合作夥伴相信，未來幾季有足夠的市場需求進行全面再融資。我們相信這對 Gogo 及其利益相關者來說將是一個積極的結果。

Our capital allocation priorities remain consistent with prior quarters and focused on executing across the following four priorities in order. First, maintaining adequate liquidity; second, continuing to invest in our strategic opportunities primarily through Galelio on 5G; third, maintaining an appropriate level of leverage for the economic environment with a target net leverage ratio of 2.5 to 3.5 times and finally, returning capital to shareholders.

我們的資本配置重點與前幾季保持一致，並重點按順序執行以下四個優先事項。首先，保持充足的流動性；其次，繼續投資於我們的戰略機會，主要透過 Galelio 在 5G 領域進行投資；第三，保持與經濟環境相適應的槓桿水平，目標淨槓桿率為 2.5 至 3.5 倍；最後，向股東返還資本。

As a reminder, Gogo has $12.1 million remaining on its $50 million repurchase authorization that our Board approved in September of 2023. Until we complete our refinancing, we expect to continue to prioritize deleveraging over equity buyback.

提醒一下，Gogo 董事會於 2023 年 9 月批准的 5,000 萬美元回購授權中還剩餘 1,210 萬美元。在我們完成再融資之前，我們預計將繼續優先考慮去槓桿而不是股權回購。

Bottom line, we believe our expected free cash flow growth over the next few years will provide ample excess cash to pay down debt, reduce our interest expense and ultimately return capital to shareholders. In our earnings release this morning, we increased key elements of our 2025 financial guidance. For the year, we expect total revenue at the high end of the previously guided range of $870 million to $910 million which reflects our HDX launch in Q1 and 5G generating modest equipment revenue in Q4.

總而言之，我們相信未來幾年預期的自由現金流成長將提供充足的剩餘現金來償還債務，減少利息支出，並最終向股東返還資本。在今天早上發布的收益報告中，我們增加了 2025 年財務指導的關鍵要素。我們預計今年的總收入將達到先前預測的 8.7 億至 9.1 億美元的高端，這反映了我們在第一季推出的 HDX 和第四季度產生的 5G 設備收入。

Adjusted EBITDA at the high end of our previously guided range of $200 million to $220 million reflecting operating expense of approximately $20 million for strategic investments, including 5G and Gallo versus our prior expectations of $25 million. Given our guidance, we expect the second half EBITDA will decline slightly versus the first half largely due to timing of planned investments.

調整後的 EBITDA 處於我們先前預測的 2 億至 2.2 億美元範圍的高端，反映了包括 5G 和 Gallo 在內的策略性投資的營運費用約為 2,000 萬美元，而我們先前預期為 2,500 萬美元。根據我們的指導，我們預計下半年 EBITDA 將較上半年略有下降，這主要是由於計劃投資的時間表。

Free cash flow at the high end of our previously guided range of $60 million to $90 million. And we expect 2025 to be the trough of our free cash flow as we have approximately $60 million slated for strategic investments, net of any FCC reimbursement versus prior expectations of $70 million. Our net CapEx is still expected to be $40 million after $50 million of CapEx reimbursement from the FCC reimbursement program. After two full quarters following the close of the SP deal, we are seeing the clear benefits of the combination, including global expansion, product expertise, synergies and the addition of a [MilGov] business. We have more work to do, but I believe we are well positioned to delever the balance sheet, drive free cash flow and create long-term shareholder value.

自由現金流處於我們先前預測的 6,000 萬美元至 9,000 萬美元範圍的高端。我們預計 2025 年將成為我們自由現金流的低谷，因為我們計劃將策略投資撥付約 6,000 萬美元（扣除 FCC 補償後），而先前預期為 7,000 萬美元。在從 FCC 補償計劃中獲得 5000 萬美元的資本支出補償後，我們的淨資本支出預計仍為 4000 萬美元。在 SP 交易結束後整整兩個季度，我們看到了合併帶來的明顯好處，包括全球擴張、產品專業知識、協同效應以及 [MilGov] 業務的增加。我們還有很多工作要做，但我相信我們有能力降低資產負債表的槓桿率，推動自由現金流並創造長期股東價值。

Before we open up the floor for questions, I want to express my gratitude to the entire Gogo team for their hard work commitment to our business and dedication to providing exceptional service to our customers. Operator, this now concludes our prepared remarks, and we're ready to take questions.

在我們開始提問之前，我想對整個 Gogo 團隊表示感謝，感謝他們為我們的業務所做的努力和為我們的客戶提供卓越服務的奉獻精神。接線員，我們的準備好的發言到此結束，我們準備好回答問題了。

(Operator Instructions) Scott Searle, ROTH Capital Partners.

（操作員指示） ROTH Capital Partners 的 Scott Searle。

Thanks for the comprehensive overview. Chris, maybe to jump in on the ATG front, down [170] this quarter. I know there are a lot of moving parts in terms of 5G transitions reimbursement programs that are ongoing and there have been longer maintenance events.

感謝您的全面概述。克里斯，也許會加入 ATG 陣線，本季下降 [170]。我知道，5G 過渡補償計劃方面有很多活動部件正在進行中，並且存在較長的維護事件。

I'm wondering, can you take us through a timeline of when you expect to see a return to growth in ATG and what the ultimate opportunity and penetration opportunity is for ATG when you look at aircraft within North America. I think there's a lot of different issues out there in terms of how much is ATG versus the Galileo potential. I'd love to kind of understand of stabilization time lines, which seem like it should be coinciding now with 5G commercialization, but how that growth should ramp up into 2016 and beyond with 5G and with C1.

我想知道，您能否向我們介紹一下您預計何時看到 ATG 恢復增長的時間表，以及當您觀察北美的飛機時，ATG 的最終機會和滲透機會是什麼。我認為，在 ATG 與伽利略潛力的比較方面存在著許多不同的問題。我很想了解穩定時間表，這似乎應該與 5G 商業化相吻合，但隨著 5G 和 C1 的發展，這種增長將如何延續到 2016 年及以後。

Okay. There's a lot there. So let me -- I'll start with kind of by market opportunity and where we kind of see that, and I'll let a chip in with the numbers and kind of how we see that playing out. But I think if you look at the suspension and deactivations over that period of time in the quarter, obviously, it's a little bit more than previous. But I think if you look at the advanced shipments the real reason for that is upgrade.

好的。那裡有很多東西。因此，讓我——我將從市場機會和我們所看到的地方開始，然後我會提供一些數字以及我們如何看待這種情況。但我認為，如果你看一下本季那段時間的暫停和停用情況，顯然會比以前多一點。但我認為，如果你看一下提前發貨的情況，你會發現真正的原因是升級。

So you can already see there's a strong pull in that and the advance number is obviously extremely strong. So we're not concerns with the suspension obviously, they're a little bit higher than previous. I think also now we're building the strong backlog in Gallileo product portfolio we're feeling pretty confident that those customers are looking the product portfolio as well and then with the announcement of 5G. So we're not concerned or any concerns at this point. that we can't migrate customers and then also with the FCC funding with the C1 that now those customers have really got a good path.

因此，您已經可以看到，這其中存在著強大的吸引力，而且預付款數字顯然非常強勁。因此，我們顯然並不擔心懸吊問題，只是比以前稍微高一點。我認為現在我們正在 Gallileo 產品組合中建立強大的積壓訂單，我們非常有信心那些客戶也在關注產品組合，然後隨著 5G 的發布。因此，我們目前並不擔心或有任何顧慮。我們無法遷移客戶，而且由於 FCC 為 C1 提供了資金，現在這些客戶確實找到了一個很好的途徑。

And we've just got that done at zero cost of upgrading themselves to the new LTE network as well. So we think we're going to kind of key customers. Also, they're not just leaving the network. There are a number of suspensions in there. We see that with kind of seasonal behavior, maintenance.

而且我們也剛剛以零成本完成了向新 LTE 網路的升級。所以我們認為我們將會成為關鍵客戶。此外，他們不僅僅是離開網路。其中有許多暫停事項。我們看到這種季節性行為和維護。

We locked that pretty well. So -- at this point, we think we've got a strong growth path. We've got multiple products in the portfolio for customers to go to. And we're seeing strong performance with the advanced shipments I think we're in a good spot.

我們把它鎖得很好。所以——目前，我們認為我們已經擁有了強勁的成長路徑。我們的產品組合中有多種產品可供客戶選擇。我們看到先進出貨量表現強勁，我認為我們處於良好的狀態。

I don't know if Zach, do you want to add anything to that on the numbers side.

我不知道扎克，你是否想在數字方面添加一些內容。

Yes. I mean I think the -- like we said in the guidance, it's -- we still assume that the net ATG numbers are going to be down this year, but we're hopeful that next year with the C1 and the 5G launch, like you said, that will start to pick back up. The other thing that's interesting is when we look at the activation reasoning, it's -- the highest drivers are consistent with what we see in other quarters, which are like to Chris' point, sold aircraft or management changes, right?

是的。我的意思是，我認為——就像我們在指導中所說的那樣——我們仍然假設今年的淨 ATG 數字將會下降，但我們希望明年隨著 C1 和 5G 的推出，就像你說的那樣，這個數字將開始回升。另一件有趣的事情是，當我們查看激活推理時，最高的驅動因素與我們在其他季度看到的一致，就像克里斯的觀點一樣，出售飛機或管理變動，對嗎？

So I think we also mentioned in the last call, we kind of ramping up our inside sales team to really focus on these customers. It's early days, like we said, because it just kind of started in Q2, but they had a little bit of progress, but we got to get more focused on it.

所以我認為我們在上次電話會議中也提到過，我們正在加強內部銷售團隊，以真正專注於這些客戶。正如我們所說，現在還處於早期階段，因為它只是在第二季才開始，但他們已經取得了一些進展，但我們必須更加專注於此。

Great. Very helpful. And just to clarify, Chris, on that front. It's -- these are not competitive losses to Starlink. This is suspensions, and this is the normal transition that we see in the ATG business now ahead of two major product cycles.

偉大的。非常有幫助。克里斯，我只是想澄清一下。這對 Starlink 來說並不是競爭損失。這是暫停，這是我們在 ATG 業務中看到的在兩個主要產品週期之前的正常過渡。

Yeah, we're not seeing a mass of loss to competition now. It's -- like Zach said, it's the same reason. We have really comprehensive deactivation process. So we're not seeing kind of like math losses to competition and the activation.

是的，我們現在沒有看到大量的競爭損失。就像札克所說的那樣，原因是一樣的。我們有非常全面的停用流程。因此，我們並沒有看到競爭和活化造成的數學損失。

Got you. And lastly, if I could, and then I'll get back in the queue. On the geo front, you guys, I think, continued to outperform the early expectations. Both in terms of aircraft and I think pricing. I'm wondering if you could just give us some longer-term thoughts in that market because I think at the time of the acquisition, there was some concern around the ARPUs related to the geomarket opportunity.

明白了。最後，如果可以的話，我會回到隊列中。在地理方面，我認為你們的表現繼續超出了早期的預期。我認為無論是從飛機還是定價方面來說。我想知道您是否可以給我們一些關於該市場的長期想法，因為我認為在收購時，人們對與地理市場機會相關的 ARPU 存在一些擔憂。

It doesn't really seem like that's materializing at least not as fast. So I'm wondering if you could just give some updated thoughts on that opportunity and how you see Geo progressing over the next couple of years?

但實際上，這似乎並沒有實現，至少沒有那麼快。所以我想知道您是否可以就這個機會給出一些最新的想法，以及您如何看待 Geo 在未來幾年的發展？

I'll cover the business side, but do you want to cover the other piece?

我會講到商業方面，但你想講到其他部分嗎？

Yeah. I think as we said before, we anticipated even last year before the deal that we were going to see more ARPA contraction. But I think the nice thing that's happened is like we said, a lot of times, this stuff is very expensive to swap out, right? And if it's good enough for a lot of folks, they're not going to spend $500,000, $600,000 if satisfying their needs. I think our view is longer term, it's going to have to come down slightly.

是的。我想，正如我們之前所說的那樣，我們甚至在去年達成交易之前就預料到我們將會看到 ARPA 進一步萎縮。但我認為發生的好事就像我們所說的那樣，很多時候，更換這些東西的成本非常高，對吧？如果它對很多人來說足夠好，他們就不會花費 50 萬或 60 萬美元來滿足他們的需求。我認為我們的觀點是長期的，它將不得不略微下降。

It's just the rate at which it does -- it's kind of anybody's guess. But like I said, we're working on our long-term model and it will assume modest degradation over the next few years.

這只是它發生的速度——任何人都可以猜測。但就像我說的，我們正在研究我們的長期模型，它將假設未來幾年會出現適度的退化。

Yeah, I'll just add to -- I think customers have been waiting for Gallileo. So I think that's a good testament to customers believing in Gogo, which is great. We've just got to get off led the products out to the merger. We're now executing on logs, which is fantastic. The other piece would be GEO business.

是的，我只是想補充一點——我認為客戶一直在等待伽利略。所以我認為這很好地證明了客戶對 Gogo 的信任，這很好。我們剛下車，帶領產品走出合併階段。我們現在正在執行日誌，這太棒了。另一部分是 GEO 業務。

We also launched our own products within the last few years, which actually really enhance the performance of those networks with the plain simple range. And then I think also like what I said in the script is just kind of like earlier on, it's a testament to having line-fit positions, which we're very lucky to have, really, and we've worked hard to get -- and you can see that kind of working through the OEMs as well as the MROs. But those products are predominantly really strong OEM products. So I think with that mix, like Zach said, our business is holding up really, really well.

我們在過去幾年中也推出了自己的產品，這些產品實際上透過簡單的範圍真正提高了這些網路的效能。然後我認為就像我在腳本中所說的那樣，就像之前一樣，這證明了擁有線路配合職位，我們真的很幸運擁有它，並且我們一直努力爭取 - 你可以看到這種工作通過 OEM 和 MRO 進行。但這些產品主要是真正強大的 OEM 產品。所以我認為，有了這種組合，就像扎克所說的那樣，我們的業務發展得非常非常好。

(Operator Instructions) Scott Sherrill, ROTH Capital Partners.

（操作員指示） ROTH Capital Partners 的 Scott Sherrill。

Chris, it sounds like there's some interesting opportunities percolating with 5G private network opportunities, I think you referenced some military applications potentially in North America. I'm wondering if there's -- any additional color on that front? And also, I'm not sure if there were some 5G metrics that you provided in terms of the number of 5G-ready aircraft at this point in time as we start to get to that 4G launch time period.

克里斯，聽起來 5G 專用網路機會中存在一些有趣的機會，我認為您提到了北美的一些潛在軍事應用。我想知道這方面是否還有其他內容？而且，我不確定您是否提供了一些 5G 指標，即在我們開始進入 4G 發布時期時，目前已具備 5G 能力的飛機數量。

Yeah. The -- I mean, acute government piece, and then I'll let Zach the numbers. So then I can accurate. The -- but without military business, I mean it's really new to Gogo, but not from the SP point of view from the business that we've been in the government business pretty much for over 20 years. So looking at the 5G piece and the opportunity of those increased speeds and then looking at the US.

是的。我的意思是，敏銳的政府部分，然後我會讓札克說出數字。這樣我就可以準確了。但沒有軍事業務，我的意思是這對 Gogo 來說確實是新事物，但從 SP 的角度來看並非如此，因為我們從事政府業務已有 20 多年了。因此，看看 5G 部分和提高速度的機會，然後再看看美國。

DoD, we really do think there's some opportunity there of giving kind of broadband resilience with pace planning. The other thing we're looking at is the potential with -- as which I mentioned on a previous call as well, we've started looking at that with ATX as well. on the fact that we see that market growing massively from the military markets, not only from a domestic point of view, but from a global point of view for Galelio, then actually, 5G could be a really interesting alternative for [Konas].

國防部，我們確實認為有機會透過步調規劃來增強寬頻彈性。我們正在關注的另一件事是潛力——正如我在之前的電話會議上提到的，我們也開始關注 ATX 的潛力。事實上，我們看到軍事市場正在大幅成長，不僅從國內角度，而且從 Galelio 的全球角度來看，5G 實際上可能是一個非常有趣的替代方案[科納斯]。

And we're pursuing those opportunities at the moment, it's very early days, but the fact that we're starting to talk to the customers about that. We're actually getting some level of interest on exploring that.

我們目前正在尋求這些機會，雖然還處於早期階段，但事實上我們已經開始與客戶談論這個問題。我們實際上對探索這一點產生了一定的興趣。

Now we've got the product set. A couple of things really in June with the DP and different aspects of government within the US. So actually, we kind of -- we see that as being a potential new market. So we're just exploring it, early days but pretty excited and then on the backlog, it's thinking a little over [300] pre-provisioned.

現在我們已經有產品集了。6 月確實發生了一些與民主黨和美國政府不同方面有關的事情。所以實際上，我們有點——我們將其視為一個潛在的新市場。所以我們還在探索它，雖然還處於早期階段，但非常興奮，然後在積壓工作中，我們考慮預先配置超過 [300] 個。

Yeah, they will pre-provisions the network there. I mean it's all rolled out. The towers are done, as I said before, just kind of getting these 5G cards in those boxes and converting those customers really quick. And those customers have been fantastic, really patient. So we're really motivated on getting those guys over the rig really quickly.

是的，他們會在那裡預先配置網路。我的意思是一切都已經展開了。正如我之前所說，塔已經建好了，只需將這些 5G 卡放入這些盒子中并快速轉換這些客戶即可。這些顧客非常棒，非常有耐心。所以我們非常希望能夠盡快讓這些人渡過鑽井平台。

[Justin Lane], Morgan Stanley.

[賈斯汀·萊恩]，摩根士丹利。

A few quick ones for me. Maybe can you just add a little more color on the CapEx guidance change? I understand the net number doesn't change, but just maybe the underlying drivers of the difference in the guide?

對我來說，有幾個簡單的。也許您能對資本支出指導變化進行更詳細的說明嗎？我知道淨數字沒有變化，但也許這就是指南中差異的根本驅動因素？

Yeah. It's all related to the reimbursement for the rip and replace program. Basically, we've accelerated some stuff that would have hit next year. It's really to make sure in advance of the cutover date that we're totally buttoned up. So it's just pulling in from next year.

是的。這一切都與拆除和更換計劃的報銷有關。基本上，我們加速了一些原本會在明年推出的產品。這實際上是為了確保在截止日期之前我們已經完全做好準備。所以這只是從明年開始的。

And then like I said, it's all reimbursed. So basically, everything else is pretty similar.

然後就像我說的，全部都報銷了。所以基本上，其他一切都非常相似。

Okay. Great. And then maybe just on the HDX shipments in the quarter, it looks like they might have stepped down sequentially. Is there anything to call out? I mean, was that a dynamic that was sort of anticipated or anything to call out there?

好的。偉大的。那麼也許僅從本季的 HDX 出貨量來看，它們可能已經連續下降。有什麼需要呼喊的嗎？我的意思是，這是一種可以預料到的動態嗎？或是有什麼需要特別指出的嗎？

Yeah, that was anticipated. At the moment, we're rolling out those STCs and really, I mean, at the moment, this is all just preparation work for 2026. So the -- from an STC point of view, we're pretty much on the ACH got more shipped out to our MRA partners. So we've got great traction there. We do have customers now starting to deploy, which is great, but that's the aviation cycles.

是的，這是預料之中的。目前，我們正在推出這些 STC，實際上，我的意思是，目前，這一切都只是為 2026 年做準備工作。因此 — — 從 STC 的角度來看，我們基本上透過 ACH 將更多貨物運送給了我們的 MRA 合作夥伴。所以我們在那裡獲得了巨大的發展動力。我們確實有一些客戶現在開始部署，這很好，但這就是航空週期。

Unfortunately, I mean it's good and it's a bad thing. It's a difficult market to get into from a competitive point of view, kind of gives us good moat around the business. But equally, you've got to get the products ready, you've got them to go through the you've got all of those aspects. So as we've said previously on calls, 2025 for us is really a build year on making sure that we've got those STCs.

不幸的是，我的意思是這是一件好事，也是一件壞事。從競爭的角度來看，這是一個很難進入的市場，但這為我們的業務提供了良好的護城河。但同樣，你必須準備好產品，你必須讓它們經過所有這些方面的檢驗。因此，正如我們之前在電話會議上所說的那樣，2025 年對我們來說實際上是確保我們獲得這些 STC 的建設年。

So this is all kind of anticipated. We don't see any slowdown in ramp on the product.

這一切都是預料之中的。我們沒有看到產品成長有任何放緩。

Okay. Great. And maybe just last one on MilGov business. Chris, I think you mentioned in your prepared remarks, some delays in awards. Just curious if you could elaborate there.

好的。偉大的。也許這只是關於 MilGov 業務的最後一個問題。克里斯，我想你在準備好的演講中提到了一些獎項的延遲。只是好奇您是否可以詳細說明一下。

I mean, is that trend holding steady? Or does that look like it might reverse? And then just because we get the President's budget and the one big, beautiful bill act, just from a [MilGov] perspective, anything above or below expectations on either of those?

我的意思是，這種趨勢保持穩定嗎？或者看起來情況可能會逆轉？那麼，僅僅因為我們得到了總統的預算和一項重大而漂亮的法案，從 [MilGov] 的角度來看，這兩項法案是否高於或低於預期？

Yeah. I just got to things are even a little bit lower than expected. So -- and then it's just the nature of the government business really, awards come, you try and influence as much as you can. The budget cycles, they operate a little bit differently as well. So we're hoping kind of we start seeing a little bit more movement where you typically -- from a trend point of view, we've seen that.

是的。我剛剛發現事情比預期的還要低一點。所以——這其實只是政府事務的本質，獎勵來了，你就盡力去施加影響力。預算週期的運作也略有不同。因此，我們希望能夠開始看到更多通常的動向——從趨勢的角度來看，我們已經看到了這一點。

The fiscal year starts. I think it's October, right. So I think hopefully, we start seeing things through. But I would say there's definitely a knowledgement with the administration on the need for the technology refresh. We've had a lot of interest on demonstrations technology, the CIPR awards as the (inaudible) is really strong.

財政年度開始。我認為是十月，對吧。所以我希望我們能夠開始看清事情的真相。但我想說，政府肯定知道技術更新的必要性。我們對演示技術非常感興趣，CIPR 獎項（聽不清楚）非常強大。

We're looking at kind of next year rolling out our software within the Air Force, which is a really kind of good point for us. I mean, they've been a great partner with us as well, the US Air Force on developing that software platform with them. So I think things will start picking up, but it's a really difficult thing to predict. So -- but -- and then -- the one piece of it, what we've seen, right, it's small business, but it's exceptional growth this year.

我們計劃明年在空軍內部推出我們的軟體，這對我們來說確實是一個好兆頭。我的意思是，他們也是我們很好的合作夥伴，美國空軍與他們一起開發該軟體平台。所以我認為事情會開始好轉，但這確實很難預測。所以 — — 但是 — — 然後 — — 其中一部分，我們看到的是，對，這是小企業，但今年卻實現了非凡的增長。

It's actually been the international market. And I think that kind of step up of Nato, people looking at their budget. We're starting to see a lot of interest being generated from overseas clients, and that team has been growing quite a lot. And the way they contract is quite different to the DoD as well, and the fiscal cycle is a little bit different. So we're very optimistic.

它實際上是國際市場。我認為北約的這種舉措讓人們開始關注他們的預算。我們開始看到海外客戶產生濃厚的興趣，而且團隊也不斷壯大。而且他們的簽約方式與國防部有很大不同，財政週期也有點不同。所以我們非常樂觀。

Team's working really hard, doing a really good job. So we kind of wait and see. But the technology is there, which is the exciting piece. It's not like we're now waiting for the technology to come, I think, with the advance of the product portfolio and delivering on the product portfolio, I think we've now got something really interesting for the military.

團隊工作非常努力，做得非常好。所以我們拭目以待。但技術就在那裡，這是令人興奮的。我認為，我們現在並不是在等待技術的到來，隨著產品組合的進步和產品組合的交付，我認為我們現在已經為軍方提供了一些真正有趣的東西。

Louie DiPalma, William Blair.

路易·迪帕爾馬、威廉·布萊爾。

Do you remain confident in I think, approximately the $65 million in cost for 2025 coming out in 2026 as it relates to the different synergies and milestone payments for 5G, HDX and FDX and -- how should we think of like the cost in 2025 versus 2026?

我認為，您是否仍然相信 2025 年的成本約為 6500 萬美元，並且該成本將在 2026 年實現，這與 5G、HDX 和 FDX 的不同協同效應和里程碑付款有關——我們應該如何看待 2025 年與 2026 年的成本？

Yeah. I think we still feel like the vast majority of that will go away. Like you said, we get the full year -- and then obviously, we're kind of working on our R&D road map. We -- I don't know that we're ready to release what all the projects are we working on. So some of that will get backfilled, but the vast majority will be pulled out.

是的。我認為我們仍然覺得其中絕大多數將會消失。就像你說的，我們得到了全年的數據——然後顯然，我們正在製定我們的研發路線圖。我們——我不知道我們是否準備好發布我們正在進行的所有項目。因此，其中一些將被填補，但絕大多數將被撤出。

Great. And one final one. From a high level, as you and customers have done more testing of HDX and FDX. Just in general, how does it compare with StarLink in the market, even though there are many left OneWeb satellite in Starlink, it appears that the OneWeb constellation is far less utilized.

偉大的。最後一個。從高層次來看，您和客戶對 HDX 和 FDX 進行了更多測試。總的來說，它與市場上的 StarLink 相比如何，儘管 Starlink 中還剩下許多 OneWeb 衛星，但似乎 OneWeb 星座的利用率要低得多。

So how has the performance and testing been for the different solutions. And also, I missed the first part of the call, but what is the timing for flight tests of 5G?

那麼不同解決方案的效能和測試結果如何呢？另外，我錯過了通話的第一部分，但是 5G 飛行測試的時間是什麼時候？

Yeah, we I'll handle the 5G thing, Louise, we've got the customers ready to go really got STCs and things flying. So from a network point of view, I think rollout in Q4 as planned and migrating those customers over there's no hold up there. So the 5G thing is pretty straightforward. Now we've got the jet. On the performance on Galileo, we're seeing great performance metrics.

是的，我會處理 5G 的事情，路易絲，我們已經讓客戶準備好真正獲得 STC 和飛行的一切。因此，從網路的角度來看，我認為第四季度的推出將按計劃進行，並且這些客戶的遷移不會有任何阻礙。所以 5G 的事情非常簡單。現在我們有了噴射機。在伽利略的性能方面，我們看到了出色的性能指標。

I think the nice thing is we're not seeing people do futile speed test in the cabin because they can do what they want to do and that low latency, snappy product field is what they've got. We've got aircraft now flying around capturing a lot of data. We're seeing very consistent, service, happy customers. I think the fact that we've truly designed an aviation-grade products. And more importantly, we've got the support because things do happen from network point of view that we make that seamless for customers we can get an engineer.

我認為好消息是，我們沒有看到人們在機艙內進行無用的速度測試，因為他們可以做他們想做的事情，而且他們所擁有的就是低延遲、快速的產品領域。我們的飛機現在正在飛行並收集大量數據。我們看到了非常一致的服務，以及滿意的客戶。我認為事實上我們確實設計了航空級產品。更重要的是，我們得到了支持，因為從網路的角度來看，我們為客戶提供了無縫的服務，因此我們可以聘請工程師。

We advertise under 24 hours on an aircraft anywhere in the wells. The reality is we don't really go beyond 12 hours, and having that human touch if we need it. But the team has been great. Customers have been fantastic, some big anchor clients who we've announced before in the past. -- they're moving ahead and very, very happy with the service.

我們在 24 小時內透過飛機在油井的任何地方發布廣告。實際情況是，我們實際上不會超過 12 個小時，如果需要的話，我們會提供人性化的服務。但這支球隊表現非常出色。客戶表現非常棒，有些是我們之前宣布過的大客戶——他們正在不斷進步，並且對我們的服務非常非常滿意。

So we're very enthusiastic. And we're seeing great performance on the FDX as well. And we're just wrapping up the STCs on that. So yes, it's -- I think it's -- I think this is a bit where everybody kind of looks at satellite networks and speed test, whereas having consistent performance in flight, and you can fly anywhere in the world with our services, whether you're using dual purpose service or you're not.

所以我們非常熱情。我們也看到了 FDX 的出色表現。我們剛剛結束了有關該問題的 STC。所以是的，我認為是——我認為這有點像每個人都在關注衛星網路和速度測試，而在飛行中保持穩定的性能，您可以使用我們的服務飛往世界任何地方，無論您是否使用雙重用途服務。

So you're using multi-networks or a single network I mean our aim is to have consistent service anywhere a client flies anywhere in the world. And I think we can safely say that we can do that.

因此，您使用的是多網絡還是單一網絡，我的意思是，我們的目標是為客戶在世界任何地方提供一致的服務。我認為我們可以有把握地說我們可以做到這一點。

The question-and-answer session is now closed. I will now turn it over to Will Davis for closing remarks.

問答環節現已結束。現在我將把發言時間交給威爾戴維斯 (Will Davis) 作結束語。

Thank you all for your participation in our second quarter earnings call. You may disconnect.

感謝大家參加我們的第二季財報電話會議。您可以斷開連線。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。