F

Gogo Inc. — Earnings Quality Grade F

GOGO · Communication Services

Major red flags

Revenue
$910M
2025
Net Income
$13M
2025
Gross Margin
44.3%
Free Cash Flow
$49M
01

Screening Summary

13
Passed
1
Watch
3
Failed
-2.23
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 45 days, change -46 days YoY

A2AR vs Revenue Growth

AR growth 0.9% vs revenue growth 104.7%

A3Revenue vs CFFO

Revenue 104.7%, CFFO 200.5%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 0.9% vs COGS 204.6%. Normal

B2CapEx vs Revenue

CapEx growth 177.8% vs revenue 104.7%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 42.8%. Normal

!
B4Gross Margin

Gross margin swung -18.3pp (62.5% → 44.3%)

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 9.63. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 3.82

C3Accruals Ratio

Accruals ratio = -8.6%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 14% of debt $0.9B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.4B = 437% of equity. Over 50%

D2Leverage

Debt/EBITDA = 5.6x (>4x). Interest coverage = 1.5x (<2x). Financial stress

D3Soft Asset Growth

Other assets 21.9% vs revenue 104.7%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -4% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.23 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.23
-4.0 Clean-2.22 Grey-1.78 Danger0
0.493
DSRI
AR growing faster than revenue?
1.413
GMI
Gross margin declining?
0.914
AQI
Asset quality deteriorating?
2.047
SGI
Revenue growth rate
0.359
DEPI
Depreciation slowing?
0.517
SGAI
SG&A ratio changing?
-0.0856
TATA
Accruals level
1.026
LVGI
Leverage increasing?
05

Altman Z-Score

-1.54
Distress Zone
0 Distress1.102.605.0+ Safe
0.1248
Liquidity
-0.9106
Cumulative profit
0.0773
Operating efficiency
0.0841
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25