Thank you. Good morning.

Welcome to Gogo's third quarter 2026 earnings conference call. On the call today to discuss our results are Gogo's CEO, Chris Moore, and CFO, Zach Cotner.

During this call, Zach and Chris may make forward-looking statements regarding future events and the future performance of the company. Participants are cautioned to consider the risk factors that could cause actual results to differ materially from those in forward-looking statements on this call.

Those risk factors are described in the earnings release filed this morning and in a more detailed note under risk factors filed in the company's annual report on 10-K and 10-Q and other documents that the company has filed with the SEC. In addition, please note that the date of this call is November 6, 2026.

Any forward-looking statements made today are based on assumptions as of this date. The company undertakes no obligations to update these statements as a result of more information or future events.

During this call, Chris and Zach will both present GAAP and non-GAAP financial measures. A reconciliation and explanation of adjustments and other considerations of the company's non-GAAP measures to be the most comparable GAAP measures is available in the earnings release.

The call is being webcast and available at ir.gogoair.com. The earnings release, infographic, and associated investor presentation are also available on the website.

After management comments, Chris and Zach will host a Q&A session with the financial community only. I will now turn the call over to Chris.

Thank you, and good morning. In the third quarter, we continue to execute on our transformation from a domestic air-to-ground connectivity company into a global provider of high-speed broadband to the underpenetrated business and military government aviation markets.

We are pleased with the strong progress and growing momentum across our next-generation broadband technology portfolio, including record shipments of Gogo Galileo in the quarter. Shipments exceeded our expectations, we secured significant new fleet commitments, and we unveiled a multi-year technology roadmap that gives customers clear visibility into the future of their Gogo Galileo investment, taking speeds to over 1 gigabyte by 2032.

As we expected, this momentum is becoming visible in our quarterly financial results, which continue to reflect the planned transition of our air-to-ground and legacy customers to our next-generation products. None of this is a surprise to us, and it does not change our conviction of where the business is heading during this transition, which is consistent when reviewing our success with new broadband services.

Consistent with the prior earnings call, I will spend time detailing each of the product areas before handing over to Zach to walk through our financial results. We are very appreciative of our advisors and lenders who believe in the transformation of our business and agreed to amend and extend our approximately $600 million original term loan B debt.

Zach will discuss the details in a few minutes, but the transaction allows the company to continue to prudently invest in our business going forward and improve our balance sheet. In addition, the FCC recently granted us a 10-year license renewal for Gogo's exclusive 4 MHz of ATG spectrum in the 800 MHz band.

Recent transactions in the U.S. wireless market underscore the strategic value of nationwide, unencumbered, exclusive-use, low-band spectrum with favorable propagation and coverage characteristics such as the 800 MHz spectrum Gogo holds.

As more of our ATG customers transition to our satellite-based connectivity, we believe our tower assets and this spectrum can be put to work in new ways, whether by Gogo or others. We are working with our banking advisors and other industry and regulatory specialists to evaluate the full range of possibilities for capitalizing on our spectrum and tower assets, determine their highest and best use, and realize their value for shareholders and customers.

Let's now review the progress of Gogo Galileo, our global low Earth orbit service. Galileo has two products: HDX, our entry point LEO solution, purpose-built for smaller aircraft, currently at 60 by 10 megabits, moving to 300 by 100 megabits by 2032; and FDX, currently at 195 to 32 megabits, moving to 1.5 gig to 350 megabits over the same period, which extends the capability to mid and large-cabin aircraft and enhanced performance.

They combine to form a scalable full-fleet solution across the breadth of our customer base. We had a record quarter of shipments for Galileo of 172 units, a 59% increase from the second quarter, and a 95% increase year-over-year.

This is well above our expectations, bringing cumulative LEO terminal shipments to 690 by the end of the quarter. In fact, as of today, cumulative shipments have surpassed 760 units, which we believe gives us between 35% to 40% market share of the LEO business aviation connectivity less than 12 months after introduction, making Galileo the most successful LEO product launch in business aviation.

We also ended the quarter with 297 Galileo aircraft online, up 61% from the prior quarter. This growth in aircraft online continues to demonstrate our ability to convert shipments into aircraft online quickly, and each aircraft that activates represents a seven to 10-year recurring revenue relationship.

We anticipate that our strong installation rate could continue to drive LEO ARPU growth and eventually offset legacy ATG declines. As outlined during our last call, our three-year pricing commitment is resonating with customers who value predictable costs alongside operational reliability, and we are seeing that reflected in our win rates and corresponding decline in competitive conversions.

Our pipeline of qualified Galileo opportunities remains above 500 aircraft, even after a record quarter of closed business, which indicates that the pipeline is being replenished as quickly as we convert it. There is also a second driver of Galileo service revenue growth that is only beginning to show.

To launch the platform, we offered many early customers discounts for an initial period. Those terms are now starting to expire, and those customers are converting to a standard service plan, increasing the revenue we earn from each aircraft already online.

The quarter we saw average monthly service revenue per Galileo aircraft increased 6% sequentially. We expect that effort to build through the first half of 2027, we expect Galileo's service revenue to grow both from new aircraft coming online and from rising revenue per aircraft across the existing base, especially as some fleet preferential pricing becomes less prominent.

Building on that momentum, I want to highlight the fleet commitments we secured this quarter. The rollouts we discussed last quarter with VistaJet, Wheels Up, and Airshare continue to make steady progress, and our Galileo deployment with NetJets is complete in Europe and continues in North America.

The quarter we added five significant new commitments. First, Textron Aviation announced they will be the first OEM to offer a no-charge installation of the Gogo Galileo HDX system on factory-new Latitude and Longitude aircraft delivered starting in 2028, along with a preferred worldwide service rate guarantee for three years.

PlaneSense, one of the largest fractional operators in the United States, selected Galileo HDX for its entire fleet of 71 Pilatus PC-12 turboprops and PC-24 jets, as well as future deliveries, with installations expected to be completed by the end of 2027. The PlaneSense deal was a full-fleet decision made in a competitive process, and it followed rigorous testing that gave PlaneSense confidence that Galileo can support a full cabin of passengers streaming video, joining video meetings, and using other connected services all at the same time.

In addition, Duncan Aviation placed an order of 40 Galileo HDX systems, our largest single MRO order of the year. Also, Bombardier ordered 10 Gogo Galileo FDX and 15 Gogo Galileo HDX units to support their demonstration fleet, aftermarket installations, and OEM deliveries.

Finally, in a powerful illustration of what Galileo can enable in a mission-critical setting, TransMedics is now equipping its fleet of 22 Embraer Phenom 300E aircraft with Galileo HDX to support time-critical organ transport missions across the United States, with full deployment expected by mid-2027. Taken together, these wins span fractional, special mission, MRO, and OEM channels, and demonstrate the breadth of demand for Galileo across the market that other providers cannot meet.

We also continue to expand Galileo's addressable market during the quarter. We received four additional supplemental type certificates for Galileo HDX and one for FDX, bringing our total to 54 STCs across the business aviation fleet.

STCs for our FDX are progressing. We anticipate adding approximately five more by year-end.

These approvals, driven by OEMs and MRO networks, continue to broaden the range of aircraft on which Galileo can be installed and support the line-fit ramp we have discussed on previous calls. Another exciting development for Galileo this quarter, we unveiled the long-term technology roadmap for the product.

The roadmap outlines planned performance enhancements approximately every 24 months over the next six years, targeting download speeds of five times and upload speeds of 10 times current levels, while preserving the existing installation infrastructure wherever possible. We believe this roadmap gives customers confidence that the system they install today will keep pace with their needs over the life of the aircraft, which is central to the seven to 10-year customer cycle I described earlier.

The response from customers has been positive and immediate, and going forward, we believe the roadmap will be an important factor in Galileo's competitive positioning against alternatives. Turning to our air-to-ground business, our Q3 results for this business reflect our continued technology transition.

Total ATG aircraft online ended the quarter at 5,399, down 6% sequentially. ATG equipment units sold declined to 142, and ATG service revenue decreased due to customer deactivations, including migrations from legacy and AVANCE systems to competing platforms and our next-generation products.

These declines reflect the expected ATG transition and customer attrition, and they are the primary driver of the change to our consolidated results this quarter. They also include the NetJets fleet transition we discussed earlier this year, which continues to be in line with our expectations, and is partially offset by our Galileo deployment with NetJets, which is progressing well.

The substantial majority of our ATG base now possesses hardware that is ready to migrate to LTE. We're also seeing the transition take a second form as ATG customers upgrade directly to Galileo, a positive result that keeps those customers with Gogo on a platform with a longer runway, thereby preserving long-term financial results.

On 5G, we shipped 68 units in the quarter, down from the second quarter, and ended with 94 aircraft online. 5G has been in the market for less than a year, and as with any new network, we will continue to optimize the software and the performance as the installed base grows.

A number of early placements were made at promotional pricing to seed the network, which reduces reported service revenue today, but brings aircraft onto the service, and activations accelerated in the quarter as those units come online. We ended the quarter with 674 C1 systems online, broadly in line with the second quarter, and 4,324 AVANCE aircraft online.

As was the case last quarter, the headline decline in ATG aircraft online is impacted not only by the fleet transition dynamics I discussed earlier, but also a cohort of aircraft that have deactivated ATG while upgrading to Galileo or 5G or in maintenance or being sold. Adjusting for those factors, the underlying rate of ATG attrition improved from the second quarter.

Deactivations to competing systems declined meaningfully. A portion of what appears as ATG deactivations does not represent customer loss, but customers migrating to newer Gogo products, either already reflected in our Galileo base or expected to reactivate on 5G or Galileo in the coming quarters.

Now turning to the FCC reimbursement program, we have recently received a six-month extension from the FCC beyond the original November deadline, and we are on track to complete the migration of our remaining Classic customers in the first quarter of next year. Reimbursements continued to flow during the quarter and offset program costs, and we now assume $35 million in capital reimbursements for the full year, reflecting longer processing times for program modifications rather than any change to our approved amount.

Once the transition is complete, Gogo will operate the only fully U.S.-based, data-sovereign ATG network, and the migration provides every remaining Classic customer with a clear path to new equipment. Turning to our geostationary or GEO business, GEO aircraft online ended the quarter at 1,285, down 2% from the second quarter and 4% year-over-year, continuing the moderating trend we have seen over the past several quarters as the market transitions towards LEO and hybrid solutions.

GEO remains a strategically valuable part of our network-neutral offering. This quarter, we secured the renewal of a sovereign communications lease valued at more than $15 million annually to provide GEO connectivity to an overseas government customer, a reminder that for certain mission profiles, the global coverage and proven reliability of geostationary networks remains essential.

I would now like to turn to our military and government service. Service revenue was $37.2 million in the quarter, an increase of 36% year-over-year and a decrease of 7% from the record second quarter.

As I mentioned last quarter, the second quarter reflected a particularly active operating environment driven by the conflict in the Middle East, and the activity moderated somewhat in the third quarter, which is exactly how the business is designed to work. Our blanket purchase agreements remain in place through quieter periods and scale when demand increases.

The incremental usage converts to revenue without a new procurement cycle, and while not as high as the second quarter, the third quarter still represents one of the strongest in the history of the business. Beyond the core demand picture, the more important development in our military and government business is the diversification of this business into new mission profiles.

Gogo Special Missions, together with Insitu, a Boeing company, successfully completed testing and integration of a modified high-speed satellite connectivity solution for Group 3 uncrewed aircraft systems, moving the UAV opportunity from concept into a real flying capability. During the quarter, we also completed ground testing of a UAV payload on our air-to-ground network, and we plan to fly a Group 2 or 3 uncrewed aircraft on our LTE network before the end of the year.

These developments, together with the sovereign communications lease I mentioned a moment ago, along with the business win, significantly broaden the opportunity set for our military and government revenue and extend our network into high-value applications well beyond traditional aviation. Before I turn the call over to Zach, I want to highlight a few financial themes he will discuss in greater detail.

First, the decline in service revenue this quarter was driven by the ongoing ATG transition and customer attrition, as expected. Second, Galileo equipment carries lower margins than the ATG hardware it is replacing, but comes with customer longevity, and we are pricing accordingly to win these long-term service relationships, and we believe there is an opportunity to increase ARPU at a later date.

That is deliberate, and we expect to pay off as those aircraft come online. Third, the business continues to generate cash.

Free cash flow was the highest of the year and up from the second quarter. Finally, the court vacated the $22.7 million jury award in the SmartSky litigation, and we have reduced our expected litigation expense.

Final judgment has not yet been entered, and the litigation remains ongoing. We are reiterating our full-year guidance, and with the amendment and extension of our original term loan B complete, debt reduction is well underway and remains our primary capital allocation priority.

I will now turn the call over to Zach to walk through the Q3 numbers.

Thanks, Chris, and good morning, everyone. As Chris just outlined, our third quarter results reflect the transition we've been describing for several quarters as customers migrate from our legacy ATG offerings to our next-generation products.

As we expected, that transition weighed on reported revenue and profitability this quarter, while our newer technologies continue to gain momentum. We saw record Galileo shipments, a growing base of aircraft online with our next-generation platforms, and a military and government business that delivered one of the strongest quarters on record.

Following quarter-end, we also took an important step to strengthen our balance sheet, completing the amendment and extension of the consenting lenders' loans under our original term loan B, which I'll discuss in more detail later in the call. We remain disciplined on cost and capital allocation, free cash flow improved sequentially, and we are reiterating our full-year guidance.

Gogo's total revenue for the quarter was $213.2 million, down 5% compared to Q3 2025 and 4% compared to Q2 2026. Service revenue totaled $182.7 million, down 4% year-over-year and 4% sequentially.

Business aviation service revenue was $145.6 million, down 10% year-over-year and 4% sequentially, driven by the expected decline in ATG service revenue as customers transition to next-generation products. Military and government service revenue was $37.2 million, up 36% compared to Q3 2025 and down 7% sequentially from a record second quarter, as the elevated usage Chris described moderated somewhat.

Even with that moderation, this was one of the strongest quarters in the history of that business. As our next-generation products move toward broader adoption and their full contribution, military and government revenue will continue to serve as both a stabilizing influence and an important driver of growth.

Equipment revenue totaled $30.5 million, down 9% year-over-year and 3% sequentially due to the decline in ATG unit sales, which fell 52% sequentially to 142 units. This was partially offset by strong adoption of our next-generation products, particularly Galileo.

During the quarter, Galileo equipment shipments increased 59% sequentially to a record 172 units, bringing year-to-date Galileo shipments to 372. We also shipped 68 Gogo 5G units, down 51% from the second quarter.

Turning to our aircraft online metrics, total ATG aircraft online ended the quarter at 5,399, down 17% year-over-year and 6% sequentially, consistent with the customer transitions from our legacy ATG platform to next-generation technologies. Within ATG, Gogo 5G aircraft online grew to 94 as activations accelerated during the quarter.

Galileo aircraft online increased 61% sequentially to 297 aircraft, reflecting continued customer adoption as additional supplemental type certificates come online. Broadband GEO aircraft online ended the quarter at 1,285, down 2% sequentially and 4% year-over-year, consistent with the moderating trend Chris described as the market transitions towards LEO and hybrid solutions.

Turning to profitability, our results reflect the mix shift underway in the business. Gross margin for the quarter before depreciation and amortization was approximately 40%, compared to 42% in the second quarter, driven by lower ATG service revenue, which carries our highest margins.

As a reminder, Galileo shipments carry lower margin than ATG hardware they replace, and several fleet orders were aggressively priced to secure long-term, duration service revenue. Below gross profit, we continue to exercise disciplined expense management.

Engineering, design, and development expense declined $5.7 million year-over-year due to lower development spending, and G&A expense was approximately flat year-over-year. Moving to our bottom line, the net loss for the quarter was $3.2 million, compared to a net loss of $1.9 million in the third quarter of 2025 and $2 million in the second quarter of 2026.

Third quarter results include a $6.1 million non-cash increase in the fair value of the Satcom Direct earnout liability. Adjusted EBITDA for the quarter was $41 million, down 27% from $56.2 million in the third quarter of 2025 and down 24% from $53.7 million in the second quarter of 2026, driven primarily by lower ATG service revenue.

Adjusted EBITDA in the quarter includes $4.1 million of ongoing litigation expenses. Looking at capital allocation, reducing leverage remains our highest priority, and the original term loan B amendment and extension we announced is a meaningful step toward that goal.

With support from lenders holding substantially all the facility, we extended the maturity of the consenting lenders' loans by approximately 2.5 years to October 2030. We have also committed to $75 million of principal payments by the end of 2027, including $25 million paid down immediately at closing, $30 million by the end of this year, and a further $20 million by the end of 2027, and the total debt repaid inclusive of our new amortization schedule is $92 million over the same period.

This gives us the runway to execute the Galileo and 5G transition while putting our commitment to directing free cash flow toward debt reduction directly into the credit agreement, and the level of lender participation reflects confidence in both our cash generation and our strategy. Turning to cash flow, net cash provided by operating activities totaled $26.3 million, compared to $32.3 million in the second quarter.

Free cash flow was $28.1 million, compared to $21.6 million in the second quarter and $30.6 million in the prior-year quarter. The sequential improvement reflects lower net capital expenditures and a reduction in inventory as Galileo shipments accelerated, partially offset by lower adjusted EBITDA.

We received $14 million in FCC reimbursements during the quarter, bringing program-to-date proceeds to $150 million. We ended the quarter with $90.7 million in cash and cash equivalents, up $27.6 million from the end of the second quarter.

Our net leverage ratio at quarter-end was 4 times, compared to 3.8 times at the end of the second quarter. The increase reflects lower trailing 12-month adjusted EBITDA rather than an increase in debt.

In our earnings release this morning, we reiterated our full-year 2026 financial guidance. We continue to expect total revenue in the range of $870 to $895 million, with approximately 84% generated from service revenue and 16% from equipment revenue.

We expect adjusted EBITDA in the range of $175 million to $185 million. That range now includes approximately $18 million of ongoing litigation expense, down from $22 million in our prior guidance, following the Delaware District Court's ruling in the SmartSky matter.

Net capital expenditures are still planned to be approximately $20 million. This now assumes $35 million in FCC reimbursement, down from $45 million, reflecting longer processing time for program modifications, with a portion of both the reimbursement and the related spending shifting into 2027.

Overall, our third quarter results reflect the planned transition of our revenue base as customers move from legacy ATG to Galileo and 5G, and our continued focus on execution through that transition. We are converting record Galileo shipments into a growing base of recurring service revenue, our military and government business is delivering durable, contracted revenue through changing demand environments, and we have taken a meaningful step to strengthen the balance sheet with the amendment and extension of our original term loan B.

At the same time, we remain disciplined on how we manage cost, allocate capital, directing free cash flow toward debt reduction while investing in products and capabilities that will drive our growth. We believe this balanced approach positions us well to deliver increasing shareholder value over time.

I finally want to thank the entire Gogo team for the continued hard work and commitment to serving our customers as we execute on this transformation. Operator, this concludes our prepared remarks.

Please open the line for questions.

Hi. Good morning.

Thanks for taking the questions, Chris and Zach. I wanted to actually start on the spectrum, given the license renewals, and as you alluded to some recent higher-profile transactions in this space.

Just curious, Chris, if you could talk a little bit more about what's on the table in terms of highest and best use that you referenced earlier, and how developed some of that thinking is. Thanks.

Hi, Justin. Good morning.

Good to speak to you. Before I answer that question, I will just say a quick remark.

Apologies to everybody on the call that we had the late release this morning. That was down to our amend and extend for the term loan B, and we appreciate everybody's patience and support.

Regarding the spectrum, great question. We're really excited about looking at that prospect.

We've obviously engaged the bank and advisors who are in this space. If you look at the FCC's posture at the moment, it's obviously highest and best use.

We believe that even with our network utilization across our ATG customers, there is still room for further extraction of value. If you look at what we're doing in the UAV space with unmanned aerial vehicles, I think there's more further opportunity in those use cases towards unmanned aircraft systems, and that has opportunity in its own right.

Terrestrial mobile carriers, as you've seen with the recent grain auction, and also D2D. The amazing thing with our spectrum, and it's obviously very unique, is that it actually can be applied across those three areas.

We obviously need to explore those opportunities with our advisors. With that spectrum, it can go through buildings, it's really high utilization potential.

I think if you look at the D2D space, it's pretty exciting on that. Terrestrial mobile carriers obviously around Verizon, what they've been doing, and then obviously with the recent acquisition of Grain spectrum as well.

It's the right time, we feel, to make sure that we extract the most value for our shareholders and our customers as we move to more broadband in our transition, but also utilize our assets.

Got it. That's great color.

Then maybe switching gears to Galileo, maybe one for Zach actually. Just given where things stand today, could you give us a sense of sort of updated expectations around the shape of growth in Galileo AOL into next year, and then maybe early HDX/FDX breakdown?

Yeah. I think it's still predominantly HDX, right?

I think while we aren't giving 2027 guidance on this call, we do feel like the kind of shipments number we've seen this year is repeatable, especially as these OEMs come online, as you saw in the release. Again, apologies it was late.

The order from Bombardier is a, I'd say, a great kind of indicator of how they view the product, and same thing with Textron. Again, too early to say where it's going, but we feel confident that demand is still strong.

I would just add to that. I think we obviously took Textron in the script, but that's standard fit.

To deselect has means you're deselecting a free service, so that standard fit from production. I think that confidence from the OEM's gonna start really shining through in the next 12 months.

Then Bombardier also placing those orders, equipping its demonstration fleet. We're really excited.

I think this is a really good start, and you can start seeing that momentum in our Galileo shipments.

Got it. Then just on the ATG deactivations, do you have a sense of what percentage of those this year are actually customer upgrades?

We do. I don't have it right in front of me, but Justin, we can get you that offline.

Okay. Great.

All right, thanks for the time.

I will say it was the highest in this quarter that we've seen.

Encouraging. Thanks.

Hey, good morning. Thanks for taking the questions.

Nice job in terms of seeing the Galileo momentum continue. Maybe just to follow up on the last question on the ATG front.

Could you provide a little bit of color of, when you look at the installed AOL base, what still is at risk when you look at legacy that has not converted over to C1 at this point in time to kind of calibrate how much we have to work through with the continued transition to at least the lower end of the equation? Then, maybe as well, the AVANCE installed base for ATG, how much of that is churning off in a given quarter that you're losing to Galileo versus just going away or going to a competitor?

On the Classic side, so as we said before, we anticipated about 200 of those would go dark at the end of the year. That was based on the previous FCC cutover, obviously that gives us a little more time to work through those.

The other side of the equation is, as you saw, the 5G numbers are a little bit softer. We still anticipate the net air-to-ground tails to be down about 1,200, even with the 5G piece.

On the AVANCE front, I will say, we saw the lowest number we've seen for people going to competitors, so that was a good sign, and so like I said, some good upgrades. We can get you the number offline.

I just don't have the sheet right in front of me. It's good to see that we are upgrading these guys at a higher clip than we've seen before.

I would also add to that. With the air-to-ground piece, clearly the attrition going to competition's slowing down a lot.

It wasn't high anyway. If you look at actually the quarter, over half our equipment revenue was satellite equipment in the quarter.

I think that's testament to people utilizing our air-to-ground services with our LEO services and also transitioning potentially to LEO if they want higher broadband. As we've matured the 5G network and get those speeds up for the customers as well, I think there's great opportunity there.

Also, as I mentioned before to Justin, is utilizing the spectrum in the best form. Hey,

Chris, maybe just to follow up on that. Is there a timeline that you're comfortable with that the ATG business will bottom?

Will that coincide now with the cutover being pushed out two quarters, or is the visibility and the comfort with that still not there yet?

I think it's a bit too early to give you the exact timing of that. One thing I would say is the FCC gave us an extension for the rip-and-replace, we're now planning on doing the flash cut in Q1 next year.

I think when we see that, then we'll have more confidence. Then at the same time, I think with the Galileo momentum is offsetting a lot of that loss.

I think the other thing that we mentioned in the call earlier is that every time we sell a Galileo system, it's really a seven to 10-year cycle that we typically see on attrition with customers when they're making that capital investment on the airframe. As the ATG numbers come down, it's also how the LEO business is also going up.

Our long-term view on ATG is obviously still a very, very important service to us.

Scott, Justin, I was able to pull up the numbers you guys both asked. Apologies, it's just buried in my deck.

Within those deactivation numbers, 71 are upgrades, either to Galileo or 5G that's not been activated, with obviously the vast majority being Galileo. It was nice to see again, I know we've been talking about it, but it's finally, the upgrades are starting to accelerate.

Great. Chris, if I could follow up, in terms of the GEO front, it sounds like little headwinds on that front related to utilization in the quarter, but if you look at macro events and the recent throttling of Starlink, Starshield in the Ukrainian events, it's caused a lot of consternation out within the industry about reliability, about sovereignty.

How is that impacting your business? Are you seeing a lot more inbounds on that front?

How is the overall pipeline there? Is there some way you could help us, at least qualitatively, if not quantitatively, give us an idea of what that looks like?

I think I mentioned it in the call as well. If you look at our pipeline, the fact that high-confidence pipeline is still around 500, and we're closing that much business, and we're keeping around that number is actually really exciting.

We're actually feeding the pipeline really quickly now. We're also closing business.

We've got really great shipments. The OEMs are becoming really, really engaged.

I think there's a general excitement around the company. You can see it with the staff as well and when we're talking to customers, and now momentum's really carrying through.

We're really generally very excited. From a competition point of view, I think the things that we're reliable on and we're focused on is making sure customers have price guarantees for three years.

That doesn't preclude us from looking at the ARPU over the next 12 months. I think there's some opportunity there, cuz obviously we're a lot cheaper than our competition at this point in time, I think there's some opportunity.

At the moment, this is about how we perform in the market, how we enter the market. We are the new entrants in the market, but we're also the fastest-growing new entrant in the market, which is really, again, really good testament to the team, our customers, and also our partners in that as well.

I do think some of those global political events have probably given us good effect. You can also see that in our government business, which is 36% year-over-year up, which is significant, and we're also closing more business around that and making Galileo more prevalent in that.

Also coming along with new opportunities for ATG with the UAV testing and looking at UAS, unmanned aircraft systems, and potential around that. I do think the geopolitical environment's definitely an opportunity for us, but at the moment, I think that's the big thing we're focused at is we're an aviation business, we're really good at what we do, and it's now starting to gather some really serious momentum, which is really exciting.

Hey, Chris, with that backdrop, is there a growth rate that you're comfortable with for the mil-gov business over the next couple years?

I think we don't want to discuss the growth percentages on the call, but I said on previous calls, we're very optimistic about this segment. I think the interesting thing about this segment is we're not having to repurpose our design technology, cuz we understand aviation so well, that ultimately we're taking a product portfolio designed for commercial customers and then going into global government customers and enabling them to go onto the same platform.

I think it's really interesting for the government. It's not the $1,000 hammer moment for them, right?

Our approach is making sure we have cost-effective solutions for them. We really think this market's really got some great potential.

Then I just touched on the UAS. If you look at that, there's a lot of talk about counter-drone, border surveillance.

Having a sovereign-based and really think of it as a sovereign-based owned communications network, cuz not just the spectrum, but the towers and how we have those towers deployed, really has a lot of value and how that can be really versatile in our growth strategy and how we use our assets moving forward. I think the team's really done a good job, and that's why we've engaged advisors as well, cuz I think there's a lot more value that we can deliver for the business.

Hey, last thing if I could. Zach, in terms of litigation expenses have come down a little bit.

How should we think about it in terms of '27 and calibrating the OpEx structure in general? At the current levels we're at, is this what we should be thinking about modeling over the course of '27?

What are the gives and takes in terms of incremental costs to complete STCs and otherwise? How should we be thinking about that structure in '27?

Thanks.

Sorry. I'll hit the litigation one first.

Obviously we're pleased with the win we received, and now it's kind of trying to work with the parties to figure out the next steps. It should come down dramatically, and obviously if there's some sort of global settlement, it'll go away.

Our current estimate is about half of what we spent this year. Again, we're keenly focused, and we do feel like the last ruling gives us some good standing to close this thing out.

Sorry, what was your second question?

Just OpEx in general. Looking at where you finished the third quarter.

Yeah.

I think the OpEx, excluding G&A, should kind of hang out around the high 100s, low 200s.

Great. Thanks so much.

Hey. Thanks for sneaking me back in.

I thought I'd try one more on spectrum. Chris, you mentioned a few times that you've engaged an advisor here.

Just curious if you can comment if that's been in sort of response to inbounds you've received from other parties on your holdings, or is this more forward-thinking: hey, there's a re-rating maybe of spectrum value and you want to explore optionality in that realm? Just curious what the impetus for the advisor was.

Thanks.

I think obviously we've engaged the advisors and the banking guys. It's too early to kind of go into a lot of that at the moment.

Most important thing is the engagement, and why we look for that engagement, I think just looking at technology profile, the FCC positioning, recent transactions in this space. The team's done a great job strategically looking at this.

We've been talking about UAV, UAS for nearly a year. We think this is a great asset for the business.

It would be foolhardy of us not to look at this asset and look at how we extract the most amount of value. This asset's actually transformed over time.

I think spectrum's a finite thing, and we have really useful spectrum, and it's very unique. I think it's a real asset for the business that was potentially undervalued in the past, and it's our job and it's a good fiduciary duty to extract the most amount of value out of that asset moving forward.

We'll keep you guys advised on it, but we're really excited of how we look at this over the next few quarters, and then we'll obviously advise as these things unfold.

Got it. Helpful.

Thanks.

Thank you, operator. Just to reiterate, Galileo had a record quarter, strong progress on shipments, installations, and early activations.

I want to thank the team for working long hours, especially last night, for finalizing the A&E of $600 million term loan B. I think that's a fantastic result for the company.

Another strong quarter for mil-gov business, as I mentioned before, 36% year-on-year growth. Finally, as we've discussed a lot on the call, engaging outside parties to look at the utilization of our spectrum.

We thank everybody for their time today, and again, I'm sorry for the late ness on the releases this morning. Thank you.