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Before we begin, we will read the forward-looking statement. Today's call includes forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and projections about future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. Forward-looking statements often include terms such as expects, believes, plans, anticipates, may, should, and similar expressions. For a discussion of important factors that could affect Gorilla's results, please refer to our filings with the SEC, including our most recent annual report on Form 20-F. Except as required by law, Gorilla undertakes no obligation to update or revise any forward-looking statements made on this call, whether as a result of new information, future events, or otherwise.

I would now like to turn the conference over to Jay Chandan, Chairman and Chief Executive Officer, and Bruce Bower, Chief Financial Officer. Please go ahead.

Thank you very much. Thanks, everyone. Thanks for joining. Bruce and I are going to keep this very direct today. Q1 was not a very quiet quarter. For us, it was not an accounting quarter which was wrapped in a bow. It was one of those quarters where everyone smiles politely, Bruce and I read from a script, pretend that the world has changed because someone added AI to the script and the release. I am not going to be reading from a piece of paper today. Q1 for me was the quarter where Gorilla moved from turnaround into scale. Scale is not always pretty in the first few innings. Anyone who's actually built a business and something meaningful knows that.

You do not build a data center campus, you do not secure power, buy hardware, deploy GPUs, hire people, expand products, and move into sovereign AI infrastructure without creating some noise on the P&L. If anyone expected a perfectly polished quarter while we are building the next version of this company, they may also believe that the British sunshine arrives on schedule. It's a charming idea, rarely accurate. Let me start with the facts. We delivered $28.2 million of revenue, which is up 55% year-on-year. More importantly, we turned operating cash flow positive. Let that sink in. Net cash from operating activities was $6.6 million compared with the cash, more importantly, used in operating activities to about $10.7 million in Q1 of last year. This is a huge swing. It's a positive swing, about $17.3 million of improvement or 162% swing.

On top of that, we ended the quarter with little over $98.4 million of cash, which is up 373% year-on-year. Let me put that in plain, simple English. Revenue grew, our customers paid us, operating cash flow turned positive, cash stayed strong. On top of that, this is not just theory, this is not market theater. This is execution landing on the cash flow statement. The reported operating loss of about $41.1 million, that number, you should stop reading there. If you stop reading there, and if you look at the business, then you've not actually missed the business. The loss was heavily distorted by two major items. The $20.9 million stock compensation, which has been due for the better part of three and a half years. We had to take that hit. Second, you've got a $18.9 million of foreign exchange losses.

Together, combined, that's about 97%+ of reported operating loss. Excluding those items, the underlying operating loss of the entire company was only $1.2 million. That's real context. No, it was not a $41 million reflection of the operating business. This was an accounting-heavy quarter inside a company that grew revenue 55%, turned operating cash flow positive, and ended up with nearly $100 million of cash. That is why I say this quarter separates accounting noise from an operating reality. The stock-based compensation charge is a non-cash. It reflects a long overdue equity compensation linked to several years, which we have been discussing with the market. Frankly, I would rather recognize the charge when our equity value is materially higher than issue it at distressed levels or punish the shareholders.

Put it more simply, I would rather take the accounting medicine at around, let's say, $15 than hand out the company at $3. This is not arrogance, this is arithmetic. The FX loss was painful. Nobody enjoys currency devaluation unless they have a very unusual weekend hobby. Again, look actually what happened underneath that accounting line. We collected cash. What people seem to be missing is that we've collected cash. Our customers paid us. Egypt paid us. Milestones were achieved. All of our advance payment, let me repeat that again, all of our advance payment guarantees associated with the project now have been completed, and for every single project stage were released, and the project moved into a final implementation, which means we're successful. When naysayers came out and said, "You're not going to be able to deliver," we have now delivered.

We're in the final stage of implementation. Yes, the [audio distortion] came in. The project progressed, the guarantees have been reduced, and that is the operating story. Let us talk about what Gorilla is becoming, which is what we are all excited about. When we spoke to the analysts previously, Gorilla was still largely being viewed as a security intelligence, network intelligence, smart city technology company. That business remains important. It is part of our DNA. It is who we are and who we were for the last 25 years. The company is now moving into a much larger arena, AI infrastructure, GPU infrastructure, data centers, sovereign compute, and secure national digital platforms. The transition costs money before it produces its full return. We're hiring people. We're buying hardware. We're securing land. We're progressing with power. We're taking co-location capacity.

I think most of you have seen that press release come out in the last couple of days. We're investing in GPUs, networking, storage, cabling, security infrastructure, and operational systems. We could have managed the quarter for optics. We chose to manage the business for scale. The easy thing would have been to protect, in short term, the EPS, make sure that the right thing is to build the company, but that is most important for us to build this company. Personally, I do not believe PowerPoints run GPUs. Headlines do not cool data halls, and definitely hope does not secure power for us. Most importantly, execution does. That is what we are doing. In India, we have signed contracts with Yotta and materially expanded our AI infrastructure collaboration. That program supports major infrastructure deployment and gives us credible foundation for significant revenue scale.

When I speak about Gorilla becoming a $500 million revenue business next year, I am not throwing darts at a wall after a long lunch, okay? I'm not drunk on my wine. I am looking at a signed demand, contracted opportunity, and infrastructure required to deliver it. Since then, people will say, "Jay, you're being aggressive." Fine. I call it ambition with a calculator. In Thailand, for example, we're advancing with our 200-MW AI data centers campus in Korat. We have secured and acquired the strategic land. We have secured the foundation of the power planning. We are building the physical platform for Gorilla's AI infrastructure. More importantly, it is an owned AI infrastructure strategy in Asia. Thailand is not just a concept, it's not just a mood board, it's land, power, planning, water, dark fiber, cooling, security, a real development path.

Anyone can say they [audio distortion]. Very few can assemble the infrastructure required to power it. We're also pursue—[audio distortion] opportunities across Thailand, including Rayong. In [Indonesia], I think [audio distortion] we have moved forward securing co-location facilities in Jakarta and in Batam. Across Southeast Asia, our goal is to combine own data centers, co-location facilities, GPU deployments, and sovereign AI demand into one regional infrastructure platform. Personally, as Jay, I believe Gorilla has incredible path towards approximately over 500 MW of AI infrastructure capacity by the end of 2028. I'm not talking five years. If we execute properly, I can even go more. The demand is well north of a couple of gigawatts today. We need to execute across Korat, whether it's Rayong, whether it's Bangkok, whether it's Jakarta, Batam, Singapore, Malaysia, Philippines, and other regional opportunities.

Now, half a gigawatt of potential AI infrastructure is not normal for a company of our current size. I've heard that before. Many have told me, "Oh, you're too small. How are you going to build it?" That is why this opportunity is actually so significant for a company of our size. Here is the most important point. We're not becoming a one-dimensional data center company. We have not stopped products. Raj, our Group CTO, he continues to [audio distortion] platforms. He continues to deepen our security intelligence capabilities. He is continuing to expand the network intelligence portfolio and push our sovereign technology roadmap forward. In Taiwan, we continue to pursue new customer opportunities. With Chelpis, for example, as you've seen a couple of weeks ago, we're advancing our quantum [safety].

With Astrikos in India, we're strengthening our intelligence layer that helps predict and optimize infrastructure across cooling, IT load, and physical systems. That matters because the future of AI infrastructure will not be judged by how many GPUs I own or I can point to. It will be judged on whether the infrastructure is secure, resilient, sovereign, efficient, and most importantly, trusted. Compute without control, for me, is just expensive heat. Gorilla's advantage is that we are building the infrastructure layer and the intelligence layer together. We are also investing very heavily into people. A lot of people questioned this last year, and now I can tell you, over the last several months, we have added more than 100+ employees and over 200+ contractors across delivery, engineering, finance, compliance, operations, commercial functions, procurement, and so on and so forth.

That is not overhead for the sake of overhead. That's execution muscle. No one, and personally, Gorilla, cannot deliver multi-billion dollar scale with a village hall committee and a lucky spreadsheet. No, that does not work. We're building the organization required for the next phase. When you look at Q1, do not look at it as small quarterly miss against an old model. Look at it from the first visible quarter of a company that is going to be much larger and is being built. The old Gorilla was about proving that we could turn around. The new Gorilla is about proving we can scale. We are raising our full year 2026 guidance to $160 million-$200 million, and I am personally focused on what it takes to build a profitable $500 million revenue business next year. That will require execution. It will require discipline. It will require capital.

It will require delivery. More importantly, it will require us to keep pushing across all of the markets in Middle East and Asia, along with other strategic locations. The direction is very, very clear. Revenue is growing. Our customers are paying. I'm going to repeat that. Our customers are paying. Operating cash flow is positive. Cash is strong. We are securing land. We're securing capacity. We're buying hardware. We are building data centers. We're developing new products. We're investing in people. We're building the capital platform to fund larger projects. That is not hype. That's not Jay spinning some BS. That's execution. Frankly, in an AI market where there are too many companies selling dreams before breakfast and explanations by dinner, personally, execution is becoming rather refreshing. My message to the market is very simple. Gorilla is no longer proving that it survived.

Gorilla is proving that it can build something far larger and bigger. The market can debate my narratives. Markets can enjoy the debate. It gives people something to do between the spreadsheets. The cash flow statement has already started speaking. Thank you. I will hand this over to Bruce, who will now walk you through the numbers in a way that accountants enjoy and non-people tolerate. Bruce?

Thank you for that. I think Jay covered all of the highlights. I just wanted to zero in on a few of those highlights and then a few other numbers that stood out to me. The first is, as Jay mentioned, revenue up 55% year-over-year. You can see from the full year guidance, $160-$200 is the range compared to last year. That shows we're already on track with our year-over-year forecast. The other thing is that revenue is converting into operating cash flow. We collected invoices from three large customers in the first quarter. That meant that overall, net cash was $6.6 million. Subsequent to this quarter, we also got a release of all of the guarantees for our major project in Egypt.

Basically, the free cash portion of the balance sheet is very strong, and the restricted cash, which a year ago was a very large number, has come down to almost zero. At the end of the quarter, we are $98.4 million of cash and cash equivalents. That shows, I think that we have a fortress-like balance sheet, which is able to tackle the projects that we have enumerated. In between the Korat and then the expansion into the co-location facilities and then the project of Yotta, et cetera, this is what gets us through the first stages. The debt position continues to perform in the sense that it's continuing to dwindle. We have $13.2 million of debt. That leaves us with a very strong net cash position.

The last thing I would say is, when you look at the top line and the operating cash flow, obviously the results we're very excited about. We have invested, but a lot of this is operating leverage in the sense that, the operating expense line, so in the financial results, it shows up as other operating expenses. That's basically the SG&A bill. It was only up 16% year-on-year, and that's because some of the major hires we made last year, some of the major steps up in the budget we made last year. We're actually seeing those investments pay off, and then I think the second round of investments that we're making now into building out the infrastructure offering will soon pay off in a similar fashion.

The last thing I wanted to talk about was Jay mentioned some of the numbers about the FX losses and the stock-based compensation. There was a $1.1 million operating loss without those two big revaluations. I would note that basically we carry large balances in three currencies, apart from U.S. dollars, obviously, in Taiwan dollars, in Thai Baht, and in Egyptian Pound. Given geopolitical events in the first quarter, all of those had adverse movements. Taiwan, Egypt, and Thailand have all stabilized as currencies, so we shouldn't see a repeat of that magnitude. Second is some of those exchange rate losses actually showed up in the operating figures because they had to do with the movement in the receivables value. That, I think, masks the underlying profitability of the business.

In a stable exchange rate environment, what I'm saying is, we should revert, one without significant geopolitical upheaval, we should revert to a much more positive net income profile. In terms of many people have asked us over the last couple of months, okay, you have all these projects, you've announced that you're going for project financing. What is the update? Without going into too much detail, which I think lenders would not like me to do, is we are very happy with the progress. We have multiple term sheets that we have either received and are waiting to sign and go into the documentation phase, or we are in the documentation phase already. The next announcement about the project level financing will be one where we basically say it's closed and this is the delivery date for the various projects that would be funded.

That is my update on the project financing, but we're very happy with how it's progressing and it's comparing well with the assumptions that we had when we went in and signed the projects. The profitability is there. That's all from me. I'll turn it back over to Jay, and we can open up for questions.

Thank you, Bruce. No problem. We're happy to take the questions.

Thank you. We'll now begin the question and answer session. To join the question queue, you may press star then the number one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star one again. We'll pause for just a moment as callers join the queue. Our first question comes from the line of Brian Kinstlinger with Alliance Global Partners. Please go ahead.

Hi. Thank you. This is Kevin for Brian. Could you talk about the planned timeline for the variety of HPC AI deals that you've had announced, including the multiple Yotta phases, the three [Freyr] programs, and the 200-MW campus in Thailand, as well as any others that I might be missing? Particularly when each phase is expected to begin revenue generation.

Hey, Kevin. It's good to hear from you. Thank you. We have started out our campus build-out in Korat. Let me start with that. We have already started talking to the EPCs. We're looking at the water, we're looking at power. Our build-out should start somewhere around the third to fourth quarter this year. That's when we will potentially start looking at pouring the concrete. In terms of the other projects, so Yotta has already kicked off. We've already placed the orders with our OEM partners, Supermicro, through our distributor in India. We are working through all of the customs, the government of India regulations and requirements for import, which is a very tedious task. That has kicked off already, and we are expecting our first delivery to come in at the end of July.

We've already got the confirmation from our very close partner, Supermicro, who have basically given us the first delivery schedule. The second Yotta phase, which is the much larger project, that is expected to be delivered end of August, and subsequent to that, every month we are having up until November, we're going to complete all the delivery. If you look at the revenues hitting our books, you will see the first phase revenue hit our books from September. Going on for the second phase would be from October, November, and December. In Asia, which you talked about, that was your first question, as you know, we've just signed up the co-location facility with NeutraDC over the last couple of weeks. That revenue is expected to hit our books from the mid of third quarter or the fourth quarter of this year.

Because again, we have the data center, we have the power and all that fully connected. We have now confirmed the full design architecture with the customer. We are working with, again, our partner, Supermicro, to get the delivery schedule, and as of now, the delivery schedule looks like something between August and September. We will keep the market updated as and when we evolve with our timelines. I hope that answers your question.

Yeah. It's great. Thanks for the color.

Thanks, Kevin.

The next question comes from the line of Michael Latimore with Northland Capital Markets. Please go ahead.

Yeah. Thanks. Congrats on the first quarter results here. Cash flow looks great. I guess you raised the lower end of your guidance from the start of the year, it was $137 million, now it's $160 million. Maybe what was the main factor behind that?

Bruce, do you want to take that?

Yeah, sure. As you know, how we forecast guidance is we take what is contracted. We don't just stick our finger in the wind and think about, "Oh, the pipeline looks like this and this," project the conversion and hope for the best. We feel confident in two things. The first is that the timeline, as Jay just mentioned, are looking very good for us to deliver above what was the previous low end of the range, $137 million. The second thing is that the second quarter and the third quarter are shaping up with more contracted revenue than we were originally planning on. By the end of the third quarter, I think we'll come out in a better place than we had originally assumed.

Those two factors led us to think, okay, the bottom end of this range needs to move up. The $200 million is still being ultra-conservative. You heard, for instance, that one of the phases would be October, November delivery. If there's any hiccups and it falls into the next year, I don't want to include that in our guidance for this year and then have egg on my face, right? It's much better to be conservative to the market, underpromise, but to be transparent. As things become 99% certain, then we'll adjust the guidance as appropriate. Jay, anything I missed?

Great.

No. I think you hit the nail on the head. Mike, good to hear from you again. We are working very closely. As you can imagine, a lot of the global political environment in terms of deliveries and all that have also been a bit of a challenge. We are making sure that we're getting the right attention at the highest level at NVIDIA, making sure that we get it over with through Charles, who's at Supermicro, co-founder of Supermicro, and make sure that we are able to get all the deliveries sent over to us. The good thing about India is that we've already gotten the delivery schedules, and that's why we upped the lower end of the guidance.

Once we get through the hurdles over the next few days or weeks, we will come back to you with a more concrete, maybe an upgrade for the upper end of the numbers.

At that $200 million level, how much of that would be in the kind of AI data center, digital infrastructure category?

Roughly around 60%-70%.

Okay.

Our core business will continue to grow, but this AI is new, so you're going from zero to almost 150% of that in terms of revenue. Yes, that's going to be where we are.

On the Egypt deal, you're at full implementation. Is there recurring revenue that continues now?

Yes. We have a five-year recurring revenue, as we had mentioned to the market about three years ago, post the completion. We are looking to complete sometime mid to third quarter of next year. We're in the final implementation stage. As I've mentioned earlier, we've gone through the motions, we've done all the deliveries, customers been super happy. One thing I want to mention here is that, we now have nil, near nil advance payment guarantees on any projects. All our projects have been delivered successfully. The total advance payments, as you know, three years ago, our advance payments were well north of $50, $60 million being held hostage by our customers, which is obviously very important for them, so we can prove we're delivering. Today, it's $45,000. Just want to make that statement very clear. It means we have delivered, customers have paid us.

That's great. Just last for me on the gross margin. How should we think about gross margin for the year?

Well, Go for it, yeah.

Last year's gross margins were in the low 30%. Given the growth in the AI-focused business, the margins will expand. The gross margins on the data center or GPU-as-a-service implementations are sort of 75%-80% in a bad case, and it can be even higher. That will drive the gross margins up for the full year. In this quarter, we saw a lower gross margin than we'd like, given the mix where basically skewed a little bit to more hardware, and then likely we were a little more aggressive on the pricing just to get an extra customer across the line. Overall, we've announced the contracts that will form the growth phase for quarter two, three, four, and the margins on those are much higher than the traditional business, the growth margins, at least. We're expecting to move higher.

When Jay alluded to a guidance update, when we update the guidance, we'll have a firmer picture with a pretty tight range on what that will be.

Yeah.

All right, thanks.

Mike, my apologies. If I may add to that, right?

Sure.

Just a quick point. See, personally, for Bruce and I, this was like a mobilization quarter, okay? We've been front-loading the costs. As you see, we have hired people, tons of people, new people for a company of our size. Infrastructure readiness. We've been buying hardware. We have to run POCs. We have data center capacity, which we have to pay for. You don't sign data center capacity by not paying. You have to pay a significant amount in advance. Project delivery and technical deployment. These are the costs which have kind of come in into the Q1. Now, most importantly, Mike, we're also building our capacity before the full revenue curve lands, right? That means the costs appear first, but the gross margin recovery follows as the utilization increases.

You've been in this space for so long, you understand data centers better than most people. The AI infrastructure for us does not scale for free. More importantly, we're making sure that the platform is up, running, getting ready, steady. We're giving our 99.999% SLAs to our customers and making sure that all of our GPU deployments, our data center revenue, our managed revenues, are all improving materially over a period of time. That was just to add to Bruce's point.

Yeah. All right, makes sense. Thank you.

Thanks, Mike. Thank you, sir.

The next question comes from the line of Bharath Nagaraj with Cantor Fitzgerald. Please go ahead.

Thank you. Thanks for taking my questions. I think you mentioned 100 new people were hired and 200 new contractors. I guess that'll only be partly reflected or maybe, I think Bruce was mentioning maybe fully reflected in Q1 and you're continuing to hire more. Just wondering how much should we expect operating expenses to increase by in the coming quarters? Basically that ties into any comments on where the EBITDA target should be for the coming quarters in the year. That's the first question.

Bruce, if you want to take the first half, I'll take the second half. Will fit us?

Sure. I think what we mentioned that they were hired as contractors, so that's one of the reasons why the gross margin is depressed because a lot of the contractors would appear as project-level costs, not as SG&A. In terms of SG&A, it was a little over $7 million in the first quarter. It's going to expand in subsequent quarters. We'll continue to build scale operationally, but first of all, it won't expand as quickly as the revenue will. Also given that we're adding higher gross margin business, there should be expansion in gross margin, and it flows through to EBITDA margin. Last year we saw, at the end of the year, $101 million of sales and then $20 million of adjusted EBITDA, or $19.5 million of adjusted EBITDA. I would expect it will expand beyond that margin to 25%, 30%+.

Yeah.

We'll give the exact when we have the cloud numbers.

Yeah. Understood.

Just to add to that for the second half, I mean, I think the market also needs to understand the number of people we're hiring is not enough. This will expand by another 5x or maybe even 10x more, both on the full-time side and the contractors. Let me explain why, right. Today, we've built these contractors. This is because they're sitting together, putting all these infrastructure in play and so on and so forth. Look at the execution side of it. We need people on delivery and program execution, which we'll be hiring. We'll look at engineering and infrastructure build-out. We'll be doing data center operations. I mean, just to build a single data hall, we would need roughly around 300+ people. Right? On an average.

Each person working, let's say 60 people working in a shift, that's 180 people, including everything else, you're looking at about 300 people per data center operation. You've got your GPU deployments, you've got your technical enablement, you've got your product development, you've got your SOC, NOC, and managed services. You'll have your finance, compliance, procurement, and project controls, export controls. We have to have a separate legal team for all the export controls, the U.S. government and NVIDIA have, and which we have to support. Finally, we have to have our commercial support and our, what I call as, our customer success. Again, Bharath, we're not collecting these employees like stamps, okay? We're moving from a lean turnaround business into a scale execution. The mobilization on Q1 and Q2 should be understood as hiring directly into what I call backlog execution.

We're not hiring and waiting for new projects to come. We've already signed these projects. We're looking at about roughly, we've got $3.2 billion coming from the Yotta projects. We've got another $2 billion of signed contracts. You're looking at about $5+ billion of backlog execution. Number two, Korat data center build-out, that's going to be at least another 1,000 to 2,000 people. The India GPU infrastructure, which is up and running. We have the team from India sitting here today in Asia and Southeast Asia with us, and we are building all of our infrastructure teams and so on and so forth. You've got your Southeast Asia co-location capacity. We have outsourced most of that work to our friends at NeutraDC. You've got your security, network intelligence, and so on and so forth.

We are building what I call half a gigawatt of ambition, and fortunately, that is going well in our favor today.

Thank you. That's very helpful color. Just a quick couple of follow-ups. In terms of the capacity, the data center capacity or AI capacity you want to be installing by the end of this year, I think you mentioned 60%, 70% at the upper end of your guidance is to come from that. In terms of the capacity, what's it going to be? I think it is historically around 100 MW. Maybe that is at the lower end. Just wanted to clarify what that number is for 2026. I think 2028 you've mentioned 500 MW.

That's a really good question, Bharath. We are aiming at anything between 100 MW-150 MW by the end of this year.

By end of 2027, my personal ambition is to complete the full 500 MW. We've already received inbound interest on a number of other land sites and government approaches from various different parts of Asia. We received inward requests in terms of how we can build up scale to about 2 GW as well. These are conversations we're having right now as we speak. My personal ambition, like I said, end of 2027, I want to have at least half a gigawatts of power capacity with a view that I've signed another full gigawatt of development capacity as well.

Okay. Yeah. Super. That's very helpful. Just one. Sorry, I actually have a couple more, if that's all right. Just on the-

Please

you have obviously a lot of competing demands for GPU. How confident are you that all these GPUs for all these projects can be delivered given the supply chain issues? I mean, there's a lot of orders that you won. Pipeline is pretty significant. Hence, I was wondering around that.

Well, listen. If I had a magic wand and I was looking into my crystal glass, I would love to tell you that I can have all this delivered by the end of this year, and I'll be significantly pumping out revenues next year, it takes time. NVIDIA is releasing. If you looked at NVIDIA's release now, you're looking at the next generation of Vera Rubin also coming out. Customers are now keen to look at that as well and potentially talk to us about it. That changes the entire goalpost as well sometimes. We're making sure that the customers' architectures don't change. We have to make sure that the customers are grounded, right? There's a nice, shiny object out there, customers want to run towards it. We've got to keep them grounded.

On the delivery side, fortunately, we have not had any major issues at all in terms of NVIDIA today. The global concerns or issues today, which are like a noose around my neck, don't seem to be having created a major problem yet. What has created some level of delay is the current lack of availability of memory and storage in the market. Compounded now, we are also seeing shortages in CPU availability in the market. We are working with our partners. We are very closely integrated with Supermicro right now. We're working day in and day out. In fact, I was there the whole of the week before with them.

We're spending the next full week at Computex as well in Taiwan, where we are sitting together and making our plans as to how we make sure that getting the GPUs is great, but our capacity needs to increase, right? We are working hand in glove with every single major partner of ours across the region to make sure that it does not falter.

Okay. Thank you. One small and minor accounting question. On the SBC costs, am I right in saying that given you recognized most of what you had said you would in Q1 itself, the remaining quarter should be minimal? Is that right, or am I getting that wrong?

Bruce?

Yes, I think that's correct. There was deferred stock-based compensation, and it's been out there for a couple of years. For various reasons, we decided to do it in this quarter, so that's no longer an overhang.

Okay. All right. Perfect. Thank you very much.

Yeah.

Congrats again.

Hey, Bharath, if I may add to that. This is not me being funny. I've seen comments like, "Oh, my God, CEO's gotten paid," and blah, blah. No, this was not just CEO. This was for the employees as well and everybody else around the company. I want to make sure that the compensation, the market understands that the compensation was due for the last, what? Nearly four years now since the company went public. Employees need to be paid. They're given their stock. Unfortunately, it had to come in this quarter, but that's okay. If I don't pay my employees, that's the wrong thing for me to do. I'm setting the right precedent.

Yeah. No, absolutely. Thank you. That's helpful. Thanks for answering all the questions.

Look forward to speaking later. Cheers.

All right. Thank you. The next question comes from the line of John Roy with Water Tower Research. Please go ahead.

Jay, obviously there's been a lot of talk about much larger and larger projects, AI infrastructure, GPUs, data centers, et cetera. I was curious, I know Bruce talked a little bit about funding, just to your maybe philosophy about how are you going to fund these massive projects and where do you stand on that? Maybe just give a step back and tell us where you're at.

John, good to hear from you. I was wondering when you'd ask me a question. That's a very fair question, and frankly, it is the right question. The scale of Gorilla has changed, right? You and I know, we talk regularly. We're not talking about small software deployments. We're signing and pursuing large AI infrastructure, GPU data center projects across India, Thailand, Indonesia, Malaysia, Singapore, Philippines, and so on and so forth. That requires capital. There's no version of my story or this story today where we sign multi-billion dollar opportunities to buy GPUs, reserve data center capacity, procure networking, memory. I was just telling Bharath about it, memory and storage, secure power, buying land, building data centers, without funding the business properly. Right? GPUs take money. I don't know if people realize buying a B300 server costs me more than half a million dollars.

That's excluding networking and all the other hoopla that goes with it. When a customer tells me that I need 1,000 servers, you're looking at about $500+ million of investment just on the GPUs, on the servers, and then you've got networking and so on and so forth, which costs you another 20%-25%. It's a pretty penny. On top of that, where are we today? We have not yet relied on dilutive equity to fund the build-out to date. Our approach has been to protect shareholders while building the capital stack required for our particular flow. Okay. We are actively working on vendor financing. We have received term sheets in the range of approximately $0.5 billion-$1 billion across all of the vendor financing and debt structures. We are progressing with various debt financing.

We have term sheets and bank-led proposals between $300 million to more than $700, $800 million that contemplate lending at the project or the SPV level rather than relying purely on the listed parent. You remember what Bruce said last quarter. We're making sure it's a non-recourse. I think people need to understand when Bruce meant that, he meant that for real. We're also looking at different levels of SPV structures. Now, that is important because infrastructure assets could be financed against their own cash flows, the contracts, equipment, and the project economics where possible. We are working with various levels of structures at the SPV level. We're also building Gorilla Capital. Again, the market seems to have forgotten about it because it's what I call a strategic funding platform.

The goal is to bring long-duration capital, including pension funds, endowments, institutional investors with structures that can support a 7-10-year long life infrastructure asset investment. We're matching funding to the asset. GPUs, data centers, and contracted infrastructure revenue should not be financed with short-term thinking. The capital structure has to match the commercial life of the asset. More importantly, we're also being very disciplined on shareholder impact. We will not do financing simply for the sake of financing. The objective is to make sure that there is growth, profitability, and shareholder value. What the market needs to understand. I have no idea what's happening to me. Sorry. I apologize. We're looking at potentially more than $5 billion of signed contracts and executable opportunity across our AI infrastructure and data center pipeline. The market knows about this already.

If we want to move Gorilla from $100 million revenue business last year to $500 million revenue next year, plus annualized business for the next five years, the business has to be funded like a serious infrastructure platform. Growth requires capital, and more importantly, profitable growth requires very disciplined capital. That's why we're not raising money because the business is weak. I think the market needs to understand this, John. We're not raising money because the business is weak. We're assembling capital because the opportunity is much, much larger ahead of us, and the difference is very simple. My message to you and to the entire market and to all the people listening to this call is we're funding growth through a variety of vendor financing, SPV level financing, long-term, long-duration institutional capital.

We're doing it very carefully to protect our shareholders, keeping them in mind at every single time. Hope that answers your question?

Yeah, it does, actually. It kind of brings up a corollary question, which is the pipeline. Can you give us any kind of color on the pipeline? I know there's some big numbers out there. Just curious if maybe you could summarize it with some.

Sure. Today, the pipeline, the signed contracts, or I would go into say backlog, is well over $5 billion. Okay. The pipeline to be signed or in negotiations and discussions is well north of another $5+ billion. That's excluding any of the build-out we're doing currently in Korat or in Rayong, and so on and so forth. When I mentioned this previously to Bharat, I made this very clear to him that my personal ambition would be to get a full gigawatt in there. If I get the full gigawatt with off-takers, and by the way, just FYI, we do not sign any colo. We're not purchasing any land without an off-taker. I have signed off-takers completely ready to take over the capacity day one. There's not a single hour I will spend on GPU power without having an off-taker.

Our revenue will hit the books as soon as the day it opens when the ribbons are being cut. If we do the 1 GW, then you're looking at, you know what the revenues are. I'm not going to prompt any numbers right now, but we will look at a significant upgrade from even the $500 million+ numbers.

Great. Thanks, Jay. Congratulations, guys.

Thank you very much, John.

Once again, if you have a question, please press star one. The next question comes from the line of Barrett Boone with RedChip. Please go ahead.

Jay, Bruce, congratulations on the strong start to 2026. As discussed earlier in the call, receivables came down meaningfully during the quarter. Can you talk about what's driving the better collections and how we should think going forward about cash conversion as you scale towards the $500 million revenue target?

I'm happy for Bruce to start, and then I can chip in. Bruce?

Sure. What's driving it is really, we have three core customers, which we disclosed in the 20-F. We delivered over the course of 2025. We invoiced, in 2026, we said, "These are the terms, make sure that we collect." Two of them have always been extremely prompt payers, and that's the kind of customer we like. In the third one, it's really just a simple commercial logic where we say, "Look, we're in Egypt. We've been working together since July 2023 when we awarded the contract. We've come this far. We've done this much for you. Is it too much to ask that you pay on time?" The customer recognizes the value and then the core nature of the infrastructure that we've built. That is helping and just the sticky nature of our products.

The thing I would say is that with new customers, we're extremely vigilant about the payment terms for new customers that we're onboarding. Jay?

Absolutely. Thanks, Barrett. Bruce, that was actually quite interesting. You stole everything from me already. Just to add to it, Barrett, personally, revenue is wonderful. Of course, everyone likes revenue, but cash is what separates the business from being a brochure. Okay? We produce operating cash flow. As you know the numbers, I'm not going to repeat it. There was a huge swing, +$6.6 million. More importantly, what drove it? I think, again, I think we need to educate the market. First, our customers paid us. That may sound very obvious, but when you look at large infrastructure projects, payment behavior is one of the clearest signals of delivery quality. It shows quality of the company. Customers do not release meaningful cash because they're feeling charitable. Okay?

They release cash because milestones are being met, documentation is being accepted, and projects are moving forward. The second part is that we've also tightened our project discipline. We're no longer a $20 million revenue company. We're being more aggressive internally in invoicing, collections, milestone tracking, project governance, all of that, customer acceptance. It is not enough to win large programs, but we must convert that into recognized revenue, and subsequently into cash. The difficulty is that we want to make sure that we're running the business profitably. The third most important part of the business is now that we're building the business where cash conversion is becoming part of the operating model but not an afterthought, what matters next is scale.

Now, if we are being serious about moving towards our $500 million of revenue, we cannot allow working capital to become, for me, a museum of unpaid invoices. We'll need discipline, contracting, delivery, acceptance, billing, collections, cash application, and so on and so forth. As we scale, Barrett, into data centers and GPU, cash flow will always not move in a perfectly straight line. I wish it did, but these are all large programs. We're going to make sure that we are going to stick to our guns on every single month. The Q1 signal is very important. We grew revenues, we reduced our receivables, we reduced our advanced payment guarantees. I just mentioned this earlier, to Mani. It's gone down from $50+ million to $45,000. That's talking about next phase of our business evolution.

The simple answer is, as we scale forward, cash conversion will become the most key metric for us, which personally, Bruce and I are watching and will continue to watch like a hawk. Revenue gets attention, but cash earns respect, for me. For me, cash will be our standing ovation going forward. Barrett.

Understood. Thank you very much for the extra color there. Extremely helpful. I just had one last question. Actually, about today's release. You do cite that the combination of infrastructure and AI products gives Gorilla leverage. Can you talk about how everything sort of works together, and how these products help you win infrastructure deals that perhaps a pure-play data center competitor couldn't?

That's actually a really good question. I think, again, markets and many, many investors seem to have also missed this. The simple point is, Barrett, we're actually not just selling space, power, and cooling. A pure-play data center operator will give you building, they'll give you racks, they'll give you power, service desk. Useful, but it's not stuff of Shakespeare. Okay, I'm just using a British chronology here. Why? Because Gorilla brings the full operating layer around the infrastructure. Think about it this way: site assessment, power planning, cooling infrastructure and architecture, feasibility studies, data center readiness. All that is being done by us.

Racking, stacking, cabling, GPU commissioning, network integration, cloud enablement, that's also being done by us. When you look at security, whether it's physical security, access control, cybersecurity, your SOC capabilities, your NOC monitoring, your CCTV access controls, we build and manage everything ourselves. We also operate it. That means we have a 24/7 monitoring, managed services, remote operations, preventative maintenance, life cycle support, all of that. For us, we're not just providing a room with very, very lovely blinking lights. We are making sure that our products are sitting into it, and that's why we invested into Astrikos. Right? Look at the difference.

We have security intelligence products which actually help customers protect their critical infrastructure, their endpoints, their users, their cameras, their operational networks. We've got the network intelligence products coming in from our friends at Astrikos. We have built our own SD-WAN, secure tunneling, orchestration, and edge connectivity for products. Our business intelligence layer talks about all of our operational data, our infrastructure data, our video, IoT analytics, and actual decisions. When we sit with a government telecom operator or enterprise, any infrastructure partner, per se, right? We're not saying, "Here is a building.

Good luck." That's not us. That's not a strategy. That's a real estate with electricity. Okay. It puts Gorilla in a much stronger position than a pure data center competitor. With Gorilla, it gives them capacity plus control. Look at it this way. Customers care about sovereignty, what is it? Security, latency, compliance, and so on and so forth. They don't have 12 vendors doing this. Typically, when you go into a data center, you've got 10 to 12 vendors doing this. We are there. We're the one throat to choke when something goes wrong. This is very, very, very important. Now, our model also gives us leverage. It gives us scale. It creates differentiation. It also creates what is called the Gorilla Edge, right, all pun intended.

If you look at the full stack model across design, development, deployment, operations, and so on and so forth, we're sitting right at the top of it. If you look at a pure data center, think about it as someone giving you a garage, but more importantly, Gorilla gives you the garage, it provides you the engine, it provides you the security system, it provides you the control room, and someone who's awake at, let's say, 3:00 A.M., like I was awake at 2:00 A.M. this morning, when things actually matter, Bharath. Hope that answers your question.

Certainly does. That's it for me. Thank you very much.

Thank you.

That concludes the question and answer session. I would like to turn the conference back over to management for any closing remarks.

Thank you very much, Prema. I really appreciate it. Analysts, investors, and employees listening to my conversation today, thank you very much for your support. I would want to leave our investors with this thought. We have rebuilt the business, we've proved the technology, we've collected cash, we've turned operating cash flow positive, and are now moving into a much larger arena, AI infrastructure. We've always been an AI infrastructure company, okay? We've been building the blocks. If you hear me, what I said, my first interview on the Nasdaq in July of 2022, I said we were moving into building an AI infrastructure, platform as a service. That's exactly what we're doing. Data center is a part of it. It's not a pivot. Please do not use that word. We're not pivoting. We are building the platform, and we're going to close and secure the platform.

We're building GPU capacity, we're building sovereign compute, and we're making sure that national platforms function. We're buying land, we're securing power, we're taking data center capacity, we're building new products, we're hiring new people, more people needed to deliver. We're not talking about scale from a distance, we're actually building it. My message to the market is very simple. Judge us on execution, judge us on cash, judge us on delivery, and judge us on whether we keep scaling. Everything else for me is commentary. Frankly, there's been plenty of commentary from people who are just sitting on the sidelines, and these people are not even able to build a sandwich, let alone an AI infrastructure business. Gorilla is not only getting started, the market can doubt the story if it wants, but it cannot ignore our direction of travel.

Thank you very much for listening in. Have a lovely evening.

Thank you. This concludes today's conference call. You may now disconnect.

Welcome to the Gorilla Technology Group Inc. Fiscal Year 2025 Financial Results Conference Call. [Operator Instructions] The conference is being recorded [Operator Instructions]. Before we begin, we will read the forward-looking statement. Today's call includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and projections about future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. Forward-looking statements often include terms such as expects, believes, plans, anticipates, may, should and similar expressions. For a discussion of important factors that could affect Gorilla's results, please refer to our filings with the SEC, including our most recent annual report on Form 20-F. Except as required by law, Gorilla undertakes no obligation to update or revise any forward-looking statements made on this call, whether as a result of new information, future events or otherwise. I would now like to turn the conference over to Jay Chandan Chairman and Chief Executive Officer; and Bruce Bower, Chief Financial Officer. Please go ahead.

Thank you very much, Crystal. Thanks, everyone, and thanks for joining. I will keep it quick. If you want drama, the market's already provided enough already today. So I will stick to the facts. Now let me start with the headline. We reported a record full year revenue of $101.4 million, up 35.7% year-on-year. This is the first time in our history, we have lost $100 million annualized revenue. We guided the market at $100 million to $110 million, and we delivered inside that range. That matters because credibility matters, and we intend to keep it that way. Now the more important part is how we got here. We executed a real turnaround. Our IFRS operating loss narrowed to about $13.7 million from $66.9 million last year. That was a remarkable improvement of $53.2 million or 79.6% reduction in the IFRS operating loss. Now our IFRS net loss narrowed to about $11.3 million from $64.8 million last year and 82.6% improvement. And IFRS basic EPS improved to about $0.51 from negative 6.13%, which is a 91.7% improvement. So yes, it was a proper swing. It was not just a cosmetic one. We did all of this while keeping the underlying profitability at scale. Adjusted EBITDA came in around $19.1 million and adjusted net income was about $19.9 million and with our adjusted basic EPS being $0.89 and an adjusted diluted EPS at 0.88. What I can tell you is that it is strong and it is very disciplined. Now I know what comes next because investors always ask it, how did we do versus expectations. For the fourth quarter the market consensus was roughly around $34.75 million of revenue and adjusted EPS of $0.30. Based on our full year results, our fourth quarter revenue was approximately $35.6 million, which is well above consensus. And based on the implied fourth quarter adjusted earnings, our adjusted EPS was roughly around 0.37, which is about 22% beat versus the $0.30 consensus. Now for the full year, the market consensus was approximately $100.6 million of revenue with a $0.8 billion for adjusted EPS. We delivered roughly around $101.4 million of revenue and delivered about $0.89 adjusted EPS, which is about a 6% beat versus consensus. So the message from my side is simple. We delivered record revenue. We delivered a major IFRS turnaround. We delivered underlying profitability that exceeded expectations. Now let's just talk about the broader market because it has been volatile. The market conversation has shifted from -- you beat the quarter to, with AI spending hold up. And I'm sure all of you have seen this in the last few days and weeks. That is a fair debate, but personally, it misses the bigger picture. AI is no longer a discretionary software trend. It's rapidly becoming a national capability and a core operating layer for enterprises and governments. Now the next phase of AI demand cannot be defined by 1 buyer or 1 deal. It will be defined by many buyers across various sectors, building permanent capacity, governments; regulated enterprises, telecom operators, logistics networks, financial services platform. This list is long and the spend is becoming structural. The compute is also evolving at a rapid pace. This is what the market is really missing. Now AI compute is actually shifting from training that cycle to an influence led cycle. This is important because this does not reduce demand. It broadens demand, inference pushes AI into everyday workflows and mission-critical operations, which increases the need for distributed compute across regional data centers and edge environments where latency, data residency and resiliency requirements matter. Now this is where edge becomes a major driver, as most of you know, we were one of the leading edge companies when we went public, and we continue to invest heavily. Edge compute expands, and what AI can do because it moves inference closer to the decision point is closer to the sensor, closer to the customer interaction, closer to regulated data. It comes a force multipliers for adoption in public safety, transportation, logistics, financial services, telecom networks, industrial and the whole plethora of smart cities. Now let us talk about scale of the infrastructure market in our region. We're not kind of relying on slogans. We're tracking that data very, very closely. We have an internal team, we have a research team, which is doing that, and we use external data at the same time. Now we see Asia Pacific data center investment growing from roughly $30 billion in mid of 2026, up roughly to about $90 billion by 2031. We see installed capacity broadly doubling from about 29,000 megawatts today to about 63,000 megawatts by the end of the decade. Now Southeast Asia also follows the same trajectory, going from the low teens of billions towards roughly $30 billion by 2030 as more capacity is being built in the market rather than exported offshore. India is another example. It's scaling very rapidly. From a little over 1 gigawatt of installed IT load today, they're moving towards about 1.8 gigawatts by 2027 and to multiple gigawatts by 2030. We're seeing the same trend in the Middle East. We're seeing the sovereign build-out dynamic with market growth from low single-digit billions to a high single-digit billion by early 2030 as governments and national champion scale local compute and secure infrastructure. This is the structural build cycle we are positioning Gorilla for. So what are we doing in '26? We are advancing our AI infrastructure and data center build strategy well across Malaysia, Thailand, Indonesia, Singapore and the other regions, including Taiwan and so on. We're expanding our evaluation work in India. We're progressing our strategy in the Middle East which included Saudi Arabia, where MOU has already been signed and we're very actively exploring data center development opportunities in that region. We're also exploring opportunities to buy and/or build our own data center assets. Ownership changes the model. It gives us more control over our delivery and stronger long-term positioning and the potential to build recurring infrastructure-led revenue streams rather than relying on project cycles. Now in parallel, we are also strengthening our product edge for its next stage of adoption. Our first quantum cryptography is targeted to be ready in April 2026. At our local interception product suites remain in continued research and development as we expand sovereign grade capability across security and intelligence as well as compliance-led deployments. Now come 2027, we're also now putting a team together, which would be investing very heavily into 60 local interception as well. Now we have currently got about 300 full-time employees today, a little over 200-plus contractors working on all the projects we have signed. But based on just the projects we have recently signed we anticipate growing to about 1,200 to 1,500 full-time employees by mid-June next year, and that would be about an additional of roughly around 700 to 800 contractors. So we'll have roughly between 2,000 to 2,500 employees for the company at any given point of time. Now investors want proof. They want execution, not a narrative. So I will speak directly about the signal that matters, delivery and collections more about the cash conversion. Our top customers are progressing very strongly, and our customer satisfaction is reflected in our payment behavior, okay? In the first 2 months of 2026, we have collected more than $22 million from our largest customers for solutions delivered and invoiced in 2025. We also expect meaningful collections in the coming weeks. Now we finished the year 2025 with about a total cash of $104.8 million. But what was very important that we did all this by reducing the total debt load to about $13.8 million, which is 35.6%, lower from the $21.4 million in the prior year. Now through the refinancing of certain lending agreements and the repayment of others, we also reduced our debt, releasing more than 5.3 million of deposits previously held as collateral against some of these loan obligations. Now this kind of balance sheet gives us very meaningful flexibility to execute existing programs, fund working capital to delivery cycles and scale our infrastructure strategy with discipline. Now we've also spent at the same time, more than $11 million on buybacks today, which we believe the market continues to undervalue Gorilla relative to our performance and our strategy. Personally, I think you could call this confidence. I call it arithmetic, right? Why? Because that leads me to my next point. We're aiming to be cash flow positive in 2026. That's not just a slogan for me. It's an operating objective that comes with very disciplined delivery, disciplined overhead control and a very disciplined cash collection. And finally, a lot of people have asked me this question over and over again, Gorilla Technology Capital. Personally, it's a game-changing catalyst for our next phase. It's designed to expand our ability to execute larger infrastructure programs by structuring capital efficiently, aligning long-duration funding with long-duration assets as well as enabling our customers to move faster with clear financing pathways. Some people said, hey, maybe they're buying the bank. No, we're not buying a bank. I mean you guys have to understand, what Gorilla Technology Capital does it strengthens our ability to scale data center build, accelerated GPU infrastructure deployment and importantly, we participate materially in larger mandates with institutional-grade structures and governance. So if I summarize 2025 in one line, we delivered a historic revenue milestone, we executed a major profitability turnaround, we strengthened the balance sheet and positioned Gorilla for the next stage of AI infrastructure, which is sovereign and regional, more importantly, distributed, which is becoming increasingly edge-enabled. In 2026, we shift from proving we can build the work to scaling what we can deliver, converting execution into cash, expanding our data center footprint across India, Malaysia, Thailand, Singapore, Indonesia, Middle East and more importantly, using Gorilla technology to unlock materially larger programs without compromising. All this while accelerating our product road map, which means we're investing heavily into R&D. Thank you for your time. I will hand over to Bruce, who knows the numbers well enough to recite them without blinking. Bruce, please go head.

Thank you, Jay. I think you covered the main points in terms of the financials. I wanted to hit on a few things. So first of all, we mentioned that the cash balance at the end of the year was $104.8 million. I'd just like to emphasize that due to the collections so far this year, the cash balance actually increased. So as of the 26th of February, it was $108 million of unrestricted cash and $116.6 million of total cash. That is in spite of spending $3 million this calendar year, so in the last 2 months on share buybacks. So we have been able to increase cash and also buy back shares this year. So it's a strong start to the year. The other thing I would point out is when we talked about freeing up the debt load -- reducing the debt load and freeing up cash deposits, some people asked, why didn't you pay off all of the debt? Well, the debt that we have remaining, the $13.8 million is at an average interest rate of 3%. So to be blunt, it makes sense to keep it as flexible capital instead of repaying it and borrowing at higher rates. The last thing I would talk about is we issued guidance last year of $137 million to $200 million as the revenue guidance range for this year. We are maintaining that. At this point, we're not prepared to issue gross margin or EBITDA guidance, but stay tuned in the coming months. We announced that basically the range for why is there such a wide range of $137 million to $200 million. It depends on the delivery schedule of certain data center projects we're pursuing with Freyr and also with others. That I think we'll have a very good update coming in the next month to 1.5 months about the timing of those projects, about the delivery schedule from NVIDIA and then also with the customers, and that should help to firm up the guidance and give you a better idea. With that, I'd just like to reinforce what we mentioned in the press release, what Jay said, we believe that the balance sheet has improved to the point where we're able to fund growth initiatives and also to buy back the shares that we feel that they're undervalued and that we can take on a lot of the growth projects that we've talked about, not just the increase in revenue this year, forecasted to be in the middle of the range would be almost 70% increase but also the contracts that we have in the pipeline, so a $7 billion revenue opportunity in the pipeline. We believe that we can fund substantially through the access to debt facilities, mostly through project finance and then through the cash that we have on the balance sheet at the moment. With that, I'd like to turn it back to Jay and if he wants to open up to questions, we can do that.

Thanks, Bruce. I'd love to open up the questions to all standing by. Thank you.

[Operator Instructions] Your first question comes from Brian Kinstlinger with Alliance Global Partners.

Yes. Close enough. You've come certainly a very long way over the last 2 years. Congratulations on that. Has anything changed in terms of your best guess on timing for the first 3 phases of the Freyr partnership. I think the plan was project financing to help you start in April for Phase 1, September Phase 2 and December for Phase 3? And then the second part of that question, outside of financing these projects, are there any gating factors to starting these projects? And if so, what needs to happen in those time frames?

Brian, good to hear for you and thank you for your kind comments. We are on track with where we are today. Obviously, considering the market forces today, we have had some slight delays in terms of the delivery. But that said, let me kind of walk you through what has happened, some programs have moved in terms of timing, and we talked about the Freyr contract, for example, that is on schedule. We are currently in the final stages of getting our first set of GPUs coming through over the next few days and we'll be deploying it as we speak. We have also accelerated the timing on some of the data center discussions when we spoke last, I think we were looking at about 12.5 megawatts of data center. If you recollect and we were looking at roughly around several hundred high-density allies. What we did was rather than kind of commissioning them all on a single day, we're slowly putting them in plant-based. So power cooling network zones are all commissioned. Revenue ramps are going to be energized as we speak. And as the racks go live, we will drop in the clusters through our partner ecosystem, which also drives what I call the GPU as a service usage line. Now what is very exciting for us, and I can tell you today, as we have now realized that we would need to kind of be deploying a lot of capital in the data center space ourselves because we have been inundated with a ton of requirements. So we are now currently looking at about more than 600 megawatts of capacity rather than the 12 megawatts alone. And that allows us to control our destiny over a period of time, which means we're looking at several hundred million dollars per year once all these racks and the GPUs are all in motion. So from our perspective, Brian, the part to that particular point is a very controlled ramp-up, not a single bank. Now you talked about, are there any delays. There are no significant delays so far. Thailand MOU, for example, it has been delayed because of the political transition, some sort of departmental organization. As you know, the new prime minister that has been elected. So we're just waiting for the postelection leadership and sign-ups to settle as we speak. But otherwise, we are not facing any delays. We're going ahead with all of the approvals, all of the permitting, all of the site readiness, all of the customer prerequisite [ slip ] as we go into it. So when the customer gates reopened now, I think we will start our billing on time. I hope that answers your question, Brian.

It does. My second question is you've got this large pipeline of other data center opportunities you've discussed. And not to say that your business development has been slow. It's been very fast. But do you think those customers are waiting to see how execution is on the first Freyr contract? Is that going to, in the near term, hold back agreements? Or do you think those will be able to move forward without delivery on those 3 projects?

Absolutely not. Like I mentioned, our pipeline is exploding. And we have not been slow in our sales, Brian, I can tell you only the thing we've been doing has been restricting. We've been inundated and I'm not exaggerating, inundated is the right word for that. So first of all, the deals are mature, at the start of the year of January this year, we were looking at POCs and MOUs and so on. So it was very promising. But since then, we have moved into late-stage commercial structuring or improve force contracting, which naturally kind of increases the scale and the certainty of the pipeline. If you recollect what I told at the end of December, towards the end of December, we are making sure that we have certainty of the pipeline. Now I mentioned the $1.4 billion Southeast Asia contract, that was only a catalyst. Once the government and telcos basically saw what we are able to deliver and we started signing up with the first 12.5 megawatts suddenly out of nowhere, it triggers some sort of a sovereign grade AI infrastructure requirement and a huge surge in interest for us. So I don't want to give you names, but what has happened is the demand behind that is significantly larger than Freyr itself. So that's one of the primary reasons why our pipeline is now in billions of dollars. Third most important part is things have changed from ambition. Governments are no longer looking at as an ambition, it has turned into urgency for us. Now I mentioned this last time as well. Not only are we looking at GPU capacity as strategic infrastructure, the shift that actually moved into edge compute, distributed environments are taking shape right now. And like I said, the market has missed that already. People think, oh, is the spending going to continue? It is going to accelerate. It is not going to continue at the rate it is going. It is going to go exponential. We are sitting with every single major customer on the planet. And I can tell you, these platforms are just going to explode in terms of compute requirements and demand. Then finally, our execution has not just been on one data center, Brian. We've been doing data centers for a very long time. We built data centers on behalf of government, for example, in Taiwan, in Thailand, in Egypt and so on and so forth. So things like when we deploy large-scale local interception programs, which are more complex than putting up a data center, the governments and the organizations, they look at it and say, look, what has Gorilla delivered, they see that and the confidence grows. So we are not resting in our past laurels, but we are putting everything into motion. So like I said in my previous response, we are now targeting over 600 megawatts of power. So the opportunity ahead is very comfortably substantial, Brian, and it's only growing.

Great. My last question. You highlighted recruitment needs. It's in my career and your type of business is always a great leading indicator. How would you characterize the recruiting market in the geographies you're hiring? And then outside of the execution staff, are there significant AI HPC senior executive level that gives you that add strategy and expertise at the high level?

That's a really good question. So as you know, we are hiring at a rapid pace. What you don't see is on our website, the names of the top people we have hired already. In Thailand, we're actually going strong with hires of about 80-plus people. In Taiwan, we have deployed a significant data center team and an R&D team for our cybersecurity products. We have done that through what is called as a hub-and-spoke model. This is very important because our R&D platform and engineering needs to accelerate both our product and our services capabilities. So on the services side, as you know, Satish came in mid of last year, and he's been driving all of the client impact and deepening our technical capabilities. On the R&D side, we've been hiring SD-WAN, post-quantum cryptography, local interception capability, video analytics, we've been growing that product. And over -- like I promised, by April, we would have a fully launched world first, fully ready post-quantum crypto SD-WAN. And we're already working on massive proof of concepts with customers as well. But this is what matters, Brian, localization. Every single region we're working in, whether it's India, Middle East, North Africa, Southeast Asia, East Asia. They're all asking about how are you building stronger ground capacity. So what do we do? We are building teams in Thailand. So my team in Thailand, for example, because we're looking at some very large data centers here, will be about 1,000 people by the end of this year. It will be probably 1,000 people in Thailand, will be about between 200 to 300 people in India and our Taiwan team will be north of 200-plus people. Now we are hiring senior executives as well at the same time. As you've seen, Thomas has come in and joined us as CTO of Infrastructure. Jackie has coming from the hardware side and become the GM for Asia. We are also hiring next-level capability under them as well. At the same time, we're also making sure that finance and compliance are also tightened. So we are hiring to improve cash discipline, collections, control, audits and so on and so forth. So think about it this way, the hub-and-spoke model is going to be centered across each of these regions. And as we expand and grow, we will be expanding our teams rapidly over the next course of few months, and the teams are all ready and running at a rapid pace.

Your next question comes from the line of Bharath Nagaraj with Cantor Fitzgerald.

Thanks for the presentation. Just a few questions from me. Just to start off with on the gross margin. Just wondering on the mix, which resulted in a, let's say, a slightly different gross margin than what I was expecting, but I just wanted to understand what the mix of revenues is? And then the second question is around -- given that you're going to deploy the latest compute for data centers in Southeast Asia, what kind of level are you -- level of revenue are you modeling per megawatt there? What sort of use cases are you thinking about for that?

Bruce, do you want to take the first part of the question? I'll take the second part.

Sure. So I think a better way to think about it is 2024, we had abnormally high service mix in the revenue mix. So the majority was service. And then it was a higher percentage of hardware in 2025. It was sort of 40%. So that's why the gross margins were a little bit lower than you would expect. The other thing is that we announced last year that we had signed 2 major law enforcement customers in Asia. And in at least one of those cases, the margin that we have predicted going into the project was a little bit lower than we normally except that's because it was a key win for us as a client and as a solution to demonstrate our capabilities. So altogether, that is why the margin drifted a little bit lower. I would say that going forward, so building on what Jay mentioned about the pipeline is we are much -- we have the ability to be very choosy about the projects that we do. So because we have so much demand, if the margin terms -- if the credit terms or the credit profile of the customer isn't right or if the payment terms aren't there, then we just say, I'm sorry, you either come in line or we'll move on to the next project. The other thing is that the data center -- the GPU as a service has an extremely high gross margin. So it's 70% plus, 70% is kind of the minimum cutoff. There is obviously a depreciation hit because we would -- an SPV would hold the equipment and then that would be consolidated onto our financial statements, and we will take the depreciation charge, I would say, at scale, that would be like a 25% operating margin, but that is at scale, I'm not providing yet the forecast for margins for this year. We're going to wait until we get the exact details firmed up. But so that's how I would say 2025 is kind of a dip in terms of gross margins, and I would see them improving over time and a much stronger margin profile for all the new business coming in?

Just to add to that as well, Bharath, more importantly, we're investing very, very heavily into building the business for sustainable long-term growth and gross margins, right? Now that brings me to the second part of your question. Now, in terms of pricing today, in Asia, it's structured either in what we call as capacity per server per month or in terms of usage per kilowatt hour depending on the customer and the program. Typically, for sovereign enterprise deployments, we are targeting contracted multiyear take-or-pay kind of a style, where the pricing and sustainable margins and cash conversion is predefined. So we know exactly what we're getting ourselves into. Now we avoid quoting a single rate. I mean personally, I don't want to quote a single rate because it varies by GPU class, as you know, term length, utilization profile, power, cooling specs, location, land values, service level stack and so on and so forth. But the proof point for us comes only when we sign these programs where the unit economics are very disciplined and our collections and our milestone payments protect our cash. So there is no single kind of an Asia price, if I may. We're not just looking at Southeast Asia, by the way, there's no Middle East or Asia price. But that said, I can tell you, typically, if you're looking at CSP cloud GPU rack capacity, they can run in high 4 figures to low 5 figures per GPU per month, when bundled with power, floor space, connectivity, managed services, but also remember, these are long-dated fixed milestone agreement. So we often layer, what we call a service level fees, compliant components and so on and so forth. Now each of these can change, for example, in the U.S. spot rents for top-tier GPU can be 2x to 3x typically on what you see on structured regional capacity in Asia. But what we are doing is that we are not putting a standard rate. And because our compute requirements are more stringent here and our contracted deals are much more longer, we are able to create a highly what I call competitive pricing as opposed to even the United States. So think about it this way. Where compliance premium and service premium will do about 20% to 40% where we include covenants, telemetry, managed the ops and so on and so forth. But the energy cost differentials mean that Asia deals are often much more profitable. So if I may say this, comparing Asia and the U.S. is like thinking like hotel in Vegas might be cheaper, but penthouses in Bangkok are much more expensive than some of them even in Manhattan. Does that answer your question, Bharath?

Yes, absolutely. May I just sneak in a quick couple more, small ones. Does the Astrikos acquisition that you made, does that carry like -- in terms of your strategy, does that -- are you planning -- do you have an explicit pricing and margin contribution for the new contracts that you signed for this? Or is it currently being bundled to strengthen your competitive advantage and increase like long-term customer lifetime value?

That's a great question. Let me kind of give you an update to why we invested, why we are integrating, right? I think that's your question. And what are we going to do? What does your springboard look like, right? If you'd ask me -- that would be a question I would ask myself. When we actually looked at Astrikos -- first of all, what is Astrikos? Astrikos is a real-time infrastructure intelligence engine that does monitoring prediction, optimization for critical systems. Now it is already a deployed system in very serious environments, including some high state level smart city platforms, for example, the new Indian Parliament complex. I think you and I talked about it previously, and major initiatives in the Middle East as well. That matters because Astrikos is not a demo, it is a fully deployed solution. Now your second part of your question, what are we doing with it? We're integrating the Astrikos into 3 parts of our stack. First, most important, smart city and national infrastructure operation. It gives us telemetry and prediction layer that makes national infrastructure more measurable, but at the same time, optimizable in the real time. Now what does that mean? It strengthens our ability to sell outcomes, not just the technology, with real uptime and response time, threat detection. And finally, we have what is called generating high operational efficiency for the customer. The second is video intelligence and security. Now Astrikos typically announces real-time monitoring, your decisioning around critical infrastructure, security and operational workflows. It complements our video intelligence stack, and it allows us to improve our operationalization of the data across our SOCs and NAC environments. And finally, this is very, very important, this is a big one. GPUs which data centers and environments are like a standard in a data center, you cannot run very heavy GPU environments. You will need continuous telemetry, predictive optimization, integrated security and operational automation. This is where Astrikos actually plugged into that requirement. And then on the kind of the springboard and if I was looking at Astrikos, for me, it's a springboard in India, but it's very immediate because it brings deep presence in the region, shortens our sales cycle improves our delivery readiness. In the UAE, we are already kind of working on building our Middle Eastern footprint. In the U.S.A., it's a standard and a partnership-driven market. So we are kind of progressing market level entry work in that region as well. So think about it this way. We're a significant minority investor. We have an option to materially increase our ownership, but also giving us a lot of flexibility to integrate and progress the traction on a very large commercial scale. Bharath?

Yes, absolutely. That's very helpful indeed.

Your next question comes from the line of Mike Latimore with Northland Capital Markets.

Congrats on a great year, excellent results there. I guess just a couple of things. You talked about maybe some more collections coming in here this quarter. Can you frame that a little bit more? Is that -- are we talking a few million dollars? Are you talking over $10 million or maybe you can't say it, but just kind of curious on that?

Bruce, do you want to take that?

I would say it's plus or minus -- it's $10 million plus or minus a few million -- $2 million to $3 million on either side.

Okay. And that relates to the 2025 effort?

It's solutions that were delivered and invoiced in 2025, yes.

And then just to keep it simple for me here, the large Southeast Asian deal, so it sounds like pretty much no change there in terms of total value or value by each of the first 3 data centers. Is that right?

That's correct. But that has become a catalyst like I mentioned previously.

Okay. Great. And then Jay, you talked a little bit about maybe seeing your first group of GPUs in the next few days. I guess just a little bit more on that. Does that specifically relate to the Southeast Asia deal? And then also did you sort of say that you expect sort of to get some of these GPUs every week and then that builds over time? Or maybe just a little more clarity on kind of that pattern?

Sure. So I think we were creating a flywheel effect, if I may, Mike. What we are doing is we are making sure that we have delivery coming in every week. So the latest agreements we have with our OEMs is that starting next week, we're getting a few deliveries going in. But again, I mentioned this previously as well, we've actually won other contracts as well. So we are actually delivering against those contracts as well. So you will see a regular flow of -- that's why we've hired a very solid procurement team as well, which will make sure that these deliveries are on time. So for us, these data centers are driving GPU demand. And for us, our GPU demand unlocks much more deeper national engagements. So don't look at as the Freyr contract is a one-off. This is actually, like I said, a catalyst to some very large contracts we've already signed. We've also agreed by the way, with all of the OEMs, local OEMs in the region. We have signed all of the MOUs that's required, we've signed all the LOIs and the pricing agreements, the BOMs have been done, the SOWs have been completed. And as you know, we are now just working on the delivery schedules and the mechanisms over the next few weeks.

Got it. So these GPUs will go to more than the Southeast Asia customers, it sounds like?

Yes. If you give us a few more days, please, on that. I'll give you a very concrete schedule as well.

Okay. Great. And then I guess in terms of the Southeast Asia deal, the first data center, you're still thinking gets up and running in the second quarter?

We're trying to push it for the first quarter, depending on the delivery schedules. But I'm 100% confident, 101% confident that it will be live second quarter. We've just completed the agreement on the BOM. We have sent the BOMs to the -- our OEM partners. Obviously, as you can imagine, it's not just the GPUs coming in. You've got a whole bunch of networking equipment, which have to come along with that. And as we kind of scale up with the customer and the demand accelerates, we will have to then kind of build on top of it. Now one of the things, Mike, I think your question leads to another important aspect. We have been struggling to get all of the compute demand from our end customers to be satisfied in the regions. As you can imagine, the U.S. is investing in hundreds of billions of dollars, we don't see that kind of investment within this region. Yes, we've seen KKR acquired STT for $10 billion recently. But again, to deploy at data centers at scale, we need a lot more compute. So we have decided internally that we were going to build our own using modular technology. So we're currently targeting about 600-plus megawatts. And hopefully, fingers crossed, we should be able to complete all of the signing of those by the end of this year as well. And we'll be going into full-scale production towards the latter part of this year as well. So we're super excited, and we think we are actually creating a new market, which doesn't exist currently.

Great. And then maybe the strategy to buy and build some of your data centers changes this question. But I think on your business update call in January, you mentioned that you're trying to lease out any available capacity you can in colocations across the regions? I guess any update on more -- any new leases that you've executed on?

Yes, yes, yes. We already have signed many deals in the region. It's absolutely fascinating. But the problem is, like I said, it doesn't exist, whether it's 9 megawatts, 4.5 megawatts, 9.9 megawatts, 21 and 25, that's kind of the available capacity today, okay? So you're absolutely right. What are we going to do? We're simply going to turn and build new capacity and deliver infrastructure ourselves to the end customer, right? Mike, I've not made this -- maybe I've not made this clear previously. Our demand is in hundreds of megawatts, okay? And Asia, not just -- I'm not talking to Southeast Asia or East Asia or even South Asia, Asia Pac as a whole does not have the capacity right now. India, for example, has only 1 gigawatt of fully utilized scale. And as you've seen recently, they had the AI Summit and India is absolutely going bonkers in terms of deploying the scale. But there are other structural issues. We need power, we need water and so on and so forth, right? So we are working. And just FYI, we are working very closely with the Indian government, to make sure that we get our infrastructure ready across various requirements and various architectures and edge deployments in the country as well. So long story short, keep the eyes in your field, we are definitely headed in the right direction over the next few days.

One thing I would add to that is, when we're looking at reserving or lining up capacity or building it ourselves, this is a different -- we're not in the business of building scale and building it and hoping the customers come. So the business here is purpose-built, AI-focused data centers or GPU as a service for those clients. So what that means is, first of all, we're not going to invest capital until we see clear customer demand. The second thing is that we demand customer prepayments so that money talks. And then in most cases, the customer prepayments are an integral part of our financing strategy, so that in between project finance and customer prepayments we can secure 90% plus of a project CapEx cost. So what we found is that when customers show commitment upfront, it obviously makes us more comfortable to move ahead and also makes it more likely that the economics work in our favor.

Your next question comes from the line of John Roy with Water Tower Research.

Obviously, some things changed over the weekend. I was wondering if you could give us any kind of update on operations or outlook for the Middle East given the Iran-U.S. situation?

Mr. Roy, thank you for the question. First of all, to everybody who's listening and everybody out there, I'm genuinely sorry to see what is happening. My heart really goes out to all the families caught up in this and to everyone who's lost their loved one. I'm feeling very, very sorry. I've got friends across both sides of the pond. Now from a business perspective, John, we are monitoring the situation very closely. And as you know, we have a very, very, very disciplined risk posture. At this point, we're not seeing any material impact on any of our operations. Egypt is progressing at full flow. Our delivery continues to against plan. And across the region, we can -- we're continuing to execute with a very appropriate caution, strong compliance and a very clear operational controls. Now what we are watching for are very practical factors that matter, logistic routes being one, supplier lead times, local security conditions, FX exposure, collection cycles, any regulatory changes that could affect movement of goods for personnel. If anything changes, the impact would likely show up on timing rather than demand. In that case, we will respond very quickly, protect delivery -- quality of our delivery, update the market when there is something definitive to report. But the trends, John, are in our favor and they favor us very strongly, and they're accelerating, not slowly. I hope that answers your question.

Yes, it does. Actually, speaking of trends, and you obviously was talking about AI in India. Can you give us maybe take a step back and look at the macro AI environment? And what do you see happening out there in general?

Sure. That's actually a good question. I think a lot of people keep asking me, and I've been speaking about this at various events as well. I would divide this into what I call 3 different trends, John. First one, in no order, right? AI is currently becoming national and a regulated infrastructure. If you look at governments, telecom operators, regulated enterprises, they're all treating AI compute as strategic capacity tied to their sovereignty, data residency, compliance and critical services. Now that shifts demand from optional pilots to what I call targeted programs with long duration and intent. So think about -- look at Asia. They are rapidly drawing up their shops now and thinking we don't want to fall behind. And so now they're coming up with large budgets, but more importantly, their long-duration intent, as I mentioned. Now the second side to that is the center of gravity, and this is very, very important. Again, I don't know why I'm stressing this, but I would stress this again, market is getting this wrong completely. It's all -- people are talking about, oh, is market going to sustain the investment into AI. The companies are investing hundreds of billions of dollars in the U.S. and in China. The center of gravity is moving from training to inference and from inference to distributed inference. Training is very lumpy, okay? Inference is very persistent. You need to take that. I think most people on this call, I'm happy for you to take this message. Training is very lumpy. Inference at the same time is persistent, which means as the inference moves into everyday workflow, your compute demand spreads across regional hubs and closer to the data source which drives out more build of regional data centers. It is not going to slow down. It is only going to go up exponentially. And that brings me to my third trend, which is edge. Now edge is expanding the addressable market dramatically. Edge brings AI to the decision point where latency, privacy and resiliency, all matters. So what happens now? It accelerates the adoption across public safety, as I mentioned previously, transportation and telecom networks, logistics, industrial operations and so on and so forth. These things do not replace data centers. it multiplies them. Once again, it multiplies them by creating more endpoints that we absolute regional capacity and orchestration. So think about it this way. In the future, you're going to find a lot more what I call, distributed inference points, which will create a huge requirement of regional capacity. And that's why if you see the likes of OpenAI or Meta or Google or anybody else in the market, they are moving across a distributed environment. And those trends favor us very, very strongly, and they're only accelerating John, they're not slowing down at all.

[Operator Instructions] Your next question comes from the line of Barrett Boone with RedChip.

Jay and Bruce, congratulations on the transformative 2025. I just had one question regarding quantum safe networks and your SD-WAN product. Can you share some concrete milestones that investors can look for?

Sure. As I've mentioned previously, we have actually created a very strong product, and we've already tested it very effectively in the last few months. Roger's team is very confident that they will be able to launch it by end of April 2026. Now just to give you, when we deploy AI infrastructure, we're not just dropping GPUs in the room. We're talking about secure connectivity, telemetry, orchestration and compliance layers, okay? These are very, very key important. People need to understand we're not selling hardware or we're not renting hardware. We're providing a service. That means your SD-WAN plus your quantum safe encryption allows us to control the network edge to the core very securely. That increases for us the solution value and improve the margin mix. That's number one. Second, our quantum solutions and why the people be like, oh, they're just going after it because it has the word quantum. No, we're not. People think that are idiots. They make edge AI viable. Why? Because edge compute only works at scale, if connectivity is intelligent and more importantly, it's secure. So what does SD-WAN do? What does our post-quantum SD-WAN do? It gives us traffic optimization, it allows segmentation and performance control. Now post-quantum crypto future proofs the transport layer. So once you build the transport layer, it will help future proof that and together with the distributed AI architecture, which we just responded to, it makes these architectures deployable both in a national and an enterprise environment. Now what does that make us? I think that was probably where you were headed towards with your question. They do not position us as a rent or a compute for rent kind of a provider. It positions us as a trusted operator. That means we can design sovereign grade, quantum safe, policy-compliant AI network. And more importantly, we can help these GPUs generate additional revenue, secure the network that protect it and more importantly, our SD-WAN makes sure that neither falls apart when it gets more complicated. When the world gets more complicated, like we are in today, we make sure that our SD-WAN and our quantum does not fall apart, Barrett.

That's very helpful. And congratulations again.

This concludes the question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Thank you very much, Crystal. That was really helpful. some very impactful questions, some caught me off guard as well, which is interesting. But to all our investors, to our analysts and every person who's supporting Gorilla. First of all, thank you. You have trusted me, us and the entire Gorilla team long enough to let results replace speculation, okay? There are people out there who say, our contracts are garbage and our numbers are garbage, that's okay. It's speculation. We are building the AI infrastructure that government and critical industries will rely on, and we intend to execute with discipline. To everybody who knows me, they know me as someone who will execute with discipline. So what I will do is thank every single one of you. And I will stop here and hand over before my tea gets cold. It's 5 a.m., actually 5: 25, and that would be a genuine crisis for me. Thank you, everybody. Have a lovely day.

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.