Gogo Inc. (NASDAQ: GOGO) shares plummeted 22.66% in pre-market trading on Thursday following the release of its disappointing third-quarter 2025 financial results. The in-flight broadband provider reported a loss of $0.01 per share, significantly missing the analyst consensus estimate of $0.08 and marking a sharp decline from the $0.12 per share earnings reported in the same period last year.

Despite a 122% year-over-year increase in revenue to $223.6 million, slightly beating analyst estimates, investors were concerned about the company's bottom line performance. The earnings miss was attributed to a $15 million pre-tax acquisition-related earn-out accrual, resulting in a net loss of $1.9 million for the quarter. Adding to the negative sentiment, Gogo's management implied a weak fourth-quarter outlook, with adjusted EBITDA expected to decline sequentially due to increased investments in strategic initiatives, particularly in 5G testing, and continued pressure on high-margin ATG (Air-to-Ground) service revenue.

While Gogo reiterated its full-year 2025 guidance at the high end of previously announced ranges, the market's focus on near-term challenges overshadowed positive developments, such as record ATG equipment shipments and progress on new product launches like 5G and Galileo. The significant stock price drop reflects investors' concerns about the company's profitability and the potential impact of ongoing transitions in its customer base and product offerings.