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Image source: The Motley Fool. Monday, Aug. 24, 2026 at 4:30 p.m. ET Chairman and Chief Executive Officer - Jayesh Chandan Chief Financial Officer - Bruce Bower Operator: Thank you for standing by. This is the conference operator. Welcome to the Gorilla Technology Group, Inc. NASDAQ GRRR First Quarter (sic) [ First Half ] 2026 Financial Results Conference Call. [Operator Instructions] The conference is being recorded. Before we begin, we would like to read the forward-looking statements. 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 the 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. Jayesh Chandan: Thank you very much. Good afternoon, everyone, and thank you for joining us. Now the first half of 2026 marks, for me, a very decisive step forward for Gorilla. The revenue increased 99%, nearly 100% year-on-year to $78.4 million, effectively doubling in the first 12 months. But more importantly, the momentum strengthened as the half progressed. Now Q2 revenues reached well over $50.1 million, which was a net increase of roughly 78% from Q1 and 138% from Q2 last year. Now we had originally expected, as we had promised to the market, about $33 million, which we upgraded to $44 million. We've exceeded that by another $6.1 million to nearly by 14%, which principally means that all the deliverables and certain milestones were completed earlier than anticipated. Personally, that's what execution looks like. Now the challenge we've also had is that the operating performance and progression at the same time was also equally significant. Our reported operating loss narrowed from $41.1 million in Q1 to approximately $2.2 million in Q2, which was a reduction of 95%. A substantial part of the first quarter result was share-based compensation that has already been recognized and more than 80% of the H1 share-based compensation was absorbed in the Q1 itself, and the quarterly charge declined by approximately, what, about 78% in Q2. In plain, simple English, Q1 carried the overwhelming majority of the burden. Q2 showed a much clearer picture of the operating momentum beneath it. Now our cash efficiency also improved considerably. Whilst the revenue increased by approximately 100%, operating cash consumption declined by approximately 65% from $12.5 million in H1 of 2025 to $4.3 million in H1 of 2026. Operating cash usage also fell from 31.8% of the revenue to just 5.5%. Now these are very material important numbers, which we need to take into consideration. Now the company also recorded an overall increase in cash of approximately $79.8 million during the first half, principally reflecting financing support and the expansion program together with customer collections. So we ended June with roughly around $179.4 million in cash, approximately 82% above our Q1 closing balance. That capital is not just sitting there for like in a bank and trying to get some interest rate, it is there to be deployed. What we are doing is that we are purchasing infrastructure, securing capacity, preparing sites, building teams and funding the deposits and working capital required to deliver projects of a scale Gorilla has never previously undertaken. And just FYI, we are preparing currently about 5 different sites in parallel, and that takes a humongous effort. At the same time, we also understand that the cash balances will move between the reporting periods. Investors should distinguish between cash being consumed by an underperforming operation and capital being deliberately deployed into contracted projects and revenue-generating infrastructure. They're not remotely the same thing, however convenient it may be for some people to pretend otherwise. Now this investment phase also explains the current gross margin profile as well. Now our gross margin had dipped, reflecting a revenue mix weighted towards hardware, initial deployment and project mobilization. What I need to make sure is that Gorilla also deployed more than $14.1 million into property and equipment. Currently, that number is $29.4 million. We are also building the installed base first. As the infrastructure is commissioned, customer workloads migrate, utilization increases, and we expect the revenue mix to broaden towards compute, monitoring, managed services and all other associated services. Hardware, personally, guys, does not begin producing its full financial results the moment it leaves the factory. It must be delivered. It has to be installed. It has to be powered. It has to be tested. It has to be accepted by the customer. And more importantly, then the utilization happens. More importantly, we want to make sure that we are moving very, very quickly. Now in terms of updates, I think the market has been asking me for updates for a long time. For Yotta Phase 1, for example, the testing has been completed. The equipment deliveries are underway and deployment have commenced. Testing will commence by the end of this week, early next week. Yotta Phase 2, the equipment is currently being manufactured with completion expected over the next 25 to 30 days. In Indonesia and Batam, we're working very closely with our OEM and infrastructure partners. We have, as everybody knows, secured substantial data center space, and we're targeting approximately another 200 megawatts of capacity with an initial ready for service in the middle of 2027 and the broader deployment expected to be in the second half of 2027. At Korat in Thailand, the land has been cleared. We're advancing with the financing, the GPU procurement, the infrastructure requirements while engaging with prospective offtakers with the objective of moving into discussion into firm customer contracts. Now to be absolutely clear, megawatts are not just capacity -- they're not just capacity, they are revenue. More importantly, the capacity must be commissioned. It has to be contracted. It has to be utilized. Now our accountants remain very stubbornly unwilling to accept that electricity as a payment. So unfortunately, we have to make sure that the customers pay us at any given point of time. Alongside these major infrastructure programs, our established security and network intelligence operations remain an important part of Gorilla. They provide not just the customer relationships, they also provide a better delivery experience, cash collections that support our broader expansion. Now for people thinking that we are pivoting, we're not. We're not abandoning the business that brought us here. We are using it as a platform to build something substantially larger. Now for Q3, we are planning revenues between $48 million to $50 million compared to the previous plan of $36 million to $40 million. That represents a significant jump of about 20% to 39% than the earlier planning range. For Q4, our operating plan is revenues exceeding well over $60 million to $70 million. Taken together with the H1 revenue of $78.4 million, our revenue outlook for 2026 now stands at least $200 million, which is up from the $137 million to $200 million range we provided at the beginning of this year. Now reaching the upper end requires additional execution, including further deliveries, customer and workload activation. We intend to earn the upper end. I want to make sure that we're not simply announcing this, but we want to make it more and more useful as we go through the quarters. Now looking further ahead into 2027, we're targeting revenues of about $450 million to $500 million. Now that's an ambitious target that represents a quarterly revenue of roughly over 120 -- $112 million to $125 million. Now we are not expecting the calendars to produce the growth for us. The target depends on all of the capacity that's being installed now, the commissioning of the additional projects, the conversion of the prospective demand into contracts and the migration of utilization of the customer workloads. Now there has been no shortage of personally barking from the sidelines. Unfortunately, that does not deliver GPUs for us or neither does it commission data centers or collect dollars from our customers. Our answer to all this would be execution. Now Gorilla has entered the second half with substantially greater revenue scale, dramatically improved quarterly performance, stronger liquidity and a growing portfolio of major international projects. We have more work to do. We are maintaining absolute delivery discipline. We're managing capital very carefully. We're improving utilization, converting opportunity into recognized revenue. And make no mistake, the direction of the travel now is unmistakable. So we're no longer explaining what Gorilla intends to become. We're beginning to demonstrate it. Thank you very much. Bruce, over to you. Bruce Bower: Thank you, Jay. I think Jay hit on all of the highlights, but there are a couple of areas I want to expand on or emphasize. So the first is, of course, the first half revenue of $78 million, 99% revenue growth. As you can hear from the guidance figures, Gorilla is in hyper growth mode in terms of revenue. So we're happy with these figures, and we expect to see this kind of growth trajectory continue. Also, as Jay mentioned, the gross profit for the first half showed an investment into the business and also reflected a mix. As the mix improves, we expect to see an expansion of gross margins. The mix will improve in a couple of ways. The first is as Yotta 1 and the other GPU-as-a-Service projects go live in the second half of the year. Those projects generate gross margins of 75% or more. So of course, there will be an expansion in the overall gross margin of the business as a result. And then that will flow through to the operating -- there will be significant operating leverage coming from that as well. So that will flow through to the underlying EBITDA numbers as well. We mentioned some of the expense items. I would just like to highlight that this was not a normal first half. There were significant for -- there were foreign exchange -- significant foreign exchange movements in the markets due to the Iran conflict and [ Freedom Day ] tariffs and tariff wars even as we have a significant exposure in foreign currency in the Middle East and in Southeast Asia, which were the 2 regions hardest hit by geopolitics and by tariffs. This did produce significant volatility in our underlying numbers. We expect that as the situation seems to have calmed down that, that will also result in a calming down of some of the below-the-line expense items that we incurred in the first half. Also, as Jay mentioned, there was a stock-based compensation item. This is something that had been previously disclosed in all of our filings, which should come as no surprise to somebody. And then my attitude would be that this is out of the way. So again, the second half P&L should be quite clean from that perspective. A couple of things that I want to highlight from the balance sheet side. One is that we finished the quarter with the second -- the first half going into the second half with $175 million (sic) [ $179.4 million ] of cash. We had $13 million of conventional debt, sort of traditional debt bank loans and then $107 million of long-term debt from a 5-year convertible that we placed in June. We also did a convertible in July. That gives us really enough cash that we are going on offense. This is the time where we are paying for equipment and for deliveries of equipment and setting them up, and that will be converting into revenue in third and then substantially in the fourth quarter. We have paid for the items for Yotta 1 for the first deployment with Yotta out of our own balance sheet, our own funds and then a facility, a small facility that is tied directly to the project level. And then Yotta 2, we have paid again substantial prepayments out of our own balance sheet, and then we intend to fund the balance of the payments from a larger project finance facility, where I will share more details when we can. But I think everyone on the line will be very happy with the terms that we've managed to get. And then a couple of other things. When I talk about investment, you can see already, as Jay mentioned, in the CapEx investment. So $14 million of investment went into the first half. That number is, of course, going to be many, many multiples of that in the second half. But this is where the investment in the business is going to be showing up in the future, and that leads to revenue growth and to margin expansion. In spite of the large CapEx, I would say that the business is actually performing well on the cash flow front. Operating cash flow was minus $4 million in the first half. This was a tightening from minus $15 million (sic) [ $12.5 million ] in the first half of last year. I would expect to see the operating cash flow numbers continue to improve. We're expecting large customer collections in September and October to the tune of over $20 million. And then the SG&A and everything else from the -- all the other operating costs in the business will not be overwhelmed by that. So that should result in a breakeven or operating cash flow for the entire year. And last but not least, I want to remind you, we have the guidance figures in the press release, $200 million plus is our guidance for this year, $450 million to $500 million is the revenue guidance for next year. How we make guidance is we take what is contracted revenue where we have an amount and a date. If we have a contract, but maybe the timing is not exactly firmed up or the amounts aren't exactly firmed up, we don't include it in the guidance. So again, we try to be underpromising and overdelivering to the market. We try to trade only on -- based on what will not disappoint you. So when Jay talks about the delivery schedules for Yotta 1 and Yotta 2 and then going out to the project in Batam or NeutraDC, as we call it, where we have the delivery schedule firm, that has been included in guidance. Where we do not have the delivery schedules firm, that has yet to be included in guidance, but stay on the lookout as those delivery schedules firm up, then the guidance might change as a result. We don't provide a gross margin forecast for next year at the moment. That will depend really on the timing of when these projects initiate. But I would just remind people that Yotta 1, Yotta 2 and NeutraDC, we expect on those projects an average gross margin of 75%. So if we're talking about $450 million to $500 million of revenue, then the gross margin on that would be substantial. The majority of that would be coming from GPU-as-a-Service. So I would expect you would see gross margins in the sort of 40% plus range for next year. Again, that is not official guidance, but that's just working out the figures. In terms of a financing update, I mentioned -- so we have an offer from -- already on the table for financing for NeutraDC. We also have -- we also have used the proceeds from the convertible for the initial part of that. For Yotta 1, we've used -- and Yotta 2, we've used substantially all the proceeds from the convertible to pay for prepayments or deliveries. And then we're funding the balance of the deliveries from 2 different project finance facilities that we either are arranging or have arranged. So again, I think you'll see for the future growth and the future CapEx of the business, you'll see more of a focus on project finance or debt overall, and we'll have more details in the coming days about how that works. With that, I turn it back to Jay. Jayesh Chandan: Thank you very much, Bruce. We're now open for questions. Operator: [Operator Instructions] And the first question comes from Brian Kinstlinger with Alliance Global Partners. Brian Kinstlinger: A lot of progress and a lot of things to talk about. But Bruce, you mentioned guidance, at least for next year and any year is based on what's in hand where you know how much is coming in and what projects and when. So for 2027, what is on the delivery schedule, which phases will be active? And which programs? Is it all of the first 2 phases of Yotta and the first of NeutraDC? Or just maybe take us through what is assumed versus what is not assumed? Bruce Bower: Yes. So the first phase for the Yotta contract, we have delivery schedule and we're taking deliveries now of the equipment. So that is assumed. That is $100 million annualized roughly of incremental revenue. The -- then for the Yotta 2 contract, as we call it, there -- it's split into 2 different batches. The first batch, we have the delivery schedule. So that is assumed. That is $250 million of incremental revenue. And then the last is for the NeutraDC project, we mentioned in the initial press release that there was a deployment expected of 300 servers around the September time frame. And then by the end of the year, a subsequent 700 servers. The 300 servers, the delivery schedule has firmed up. So that is included in the guidance. That would be 30%, about $260 million. So that would be an incremental $75 million to $80 million a year. So -- and then the balance comes from existing contracts or contracts that we've won and not yet announced, and that's how you get to the $450 million to $500 million mark. So there is the 700 servers from the first phase of NeutraDC and which are not included in the guidance. The second phase of NeutraDC, which is 875 servers, correct me if I'm wrong, is also not included in the guidance. And then the second phase -- part 2 of the second phase of Yotta is not included in the guidance at the moment. So obviously, we want to get the delivery schedule firmed up. GPUs are like spice in Dune, they're very valuable commodities. So it's better to have them in hand before we start talking about schedules and timing and amounts. So again, this is why we take the ultra-cautious approach in formulating guidance. Brian Kinstlinger: Great. And then a follow-up -- of course... Jayesh Chandan: Sorry, Brian. See, for us, the confidence is from the capacity and the projects we're putting now. Like I think Bruce eloquently said, right, we have delivery scheduled for Yotta 1. In fact, there are a whole bunch of them on the plane right now as we speak. They're underway. We are commencing all our deployment, which effectively means the power drops are there, the connectivity is there. And the Yotta Phase 2 equipment is also being completed and will be approximately delivered. The deliveries will start coming in. So we have a fixed time line. That means we have to deliver the first set by the end of this month, the second set mid of next month. And then -- so between now and end of November, Yotta 1 and Yotta 2 Phase 1 will be complete. And then you've got the big elephant, which is the NeutraDC, that particular one actually -- the first 300 servers have to be deployed by the end of October. Testing will take probably between 20 and 30 days. So we're looking at going operational end of November, first week of January -- December, sorry. Now on top of that, we were also working towards closing the remainder of the 700 plus the 875 servers, which will obviously -- once that is done, we will absolutely revise the targets for next year. But again, the challenge we have today, just to address what the challenges are, the GPUs are in shortfall. The CPUs are in shortfall. Memory and storage is short. Then you've got the cabling and everything else. On top of that, electricity seems to be of a bit of a problem. But what we are doing is we're making sure that whatever we have committed today is based on the operational milestones, which we already have in place, whether it's equipment, capacity, customer contracts signed, workloads migrated and all of the utilization that is being done. Brian Kinstlinger: Great. That's super helpful. A follow-up. I think the NeutraDC, those are data centers that were already built, if my memory serves me. But on Yotta, do you have any construction you have to do? Jayesh Chandan: No, none whatsoever. Yotta is a phenomenal constructor. They build it themselves. So they have done it all by themselves. And by the way, all of the Yotta data centers are fully ready for service. All the floors are ready for service. All we're doing now is getting the power drops in and getting the GPUs to be tested. Brian Kinstlinger: Great. And then on the project financing, last quarter, you had mentioned you had offers and you made similar offers on the table and you had similar comments here. What has been the biggest obstacle in securing the project financing? Bruce Bower: Brian, I'd be very careful. I didn't say we had offers. I said, in one case, we have arranged and in the other case, we are close to completing. The obstacles has been, first of all, us fighting for the best terms possible. There were some initial offers that were not conducive to shareholders. So we said, no, we're not going to accept that. And then the second thing has been more recently when there has been a shift in some of the delivery schedules. The shift actually was one where they wanted us to pay. The vendors wanted us to pay more quickly. So we had to make people hurry up and meet different delivery schedules and thus we do something. But in general, I'm very happy with where we are. I'm very happy with where -- not just with the project finance story, but also with how we are with the debt markets overall. And then I would say, we said earlier that we are pursuing a credit rating. So I'd stay tuned on that front. Operator: Your next question comes from the line of Alex Latimore with Northland Capital Markets. Alexander Latimore: Glad to see everything evolving well here. I was curious about the terminal value of the GPUs. Are you looking to sell them after 5 years? If so, what would that residual value be? And then also alternatively, is there an opportunity to keep operating the GPUs for a sixth year? Jayesh Chandan: That's a great question. Alex, good to hear from you. I hope all is well. So yes, so the current -- if you look at various sources today, B300s and GB300s, they still have residual value at the end of the fifth year. You're looking at roughly around between 20% and 25%. But that's today, Alex. We don't know what's going to happen in 5 years' time. But at the end of the day, we will continue to operate those GPUs. We will also -- we've already received offers, just FYI, from various either institutional investors or from data center operators saying, look, I'm happy to sign an agreement with you at the end of the fifth year, we'll take it off and here's -- we will get it evaluated by a top-tier firm like Ernst & Young or PwC or KPMG, and then we will put an assigned value to it. But the Gorilla's intent is to continue working. As the models evolve, you're evolving from training workloads to inferences, edge will become a meaningful kind of -- will make a meaningful entry towards the beginning of next year. We are looking at deploying at scale in these regions. The other things you should also look at is sovereign AI. Each of these countries where we are present today, whether it's the Middle East, parts of Europe, parts of Asia, they are very actively sourcing GPUs. They're looking to secure the future, especially the governments and so on and so forth, and we can deploy it at that point of time. So net-net, either it's revenue-based incremental working towards the next -- I don't know, the next 3 or 4 years after or there's an immediate liquidity for sale to an existing data center provider. Bruce Bower: Alex, if I may add to that. So the -- for accounting purposes, we'll depreciate the equipment over 5 years. So that's the assumed life just -- the major reason is that some of the contracts -- most of the contracts we're signing for 5 years. But I would emphasize that, first of all, what Jay mentioned that there is a couple of ways to monetize them later. I would also point out that this has been a story that we've heard discussed numerous times, what is the useful life of the GPU. Some other players in the market are putting A100s into service for 7, 8, 9 years running now and still generating revenue and a very decent yield on cost. So obviously, the A100s don't rent for the same thing that they would 5 years ago, but it's still a very healthy return and very favorable economics. So all the evidence is pointing to the fact that the service life might actually be much longer than 5 years. Alexander Latimore: Awesome. Another question. For your CapEx forecast for India and Indonesia, does that include maintenance CapEx? Or is that additional? And if it is, how should we think about the sequencing or the cadence of that maintenance CapEx? Bruce Bower: Yes, I'll take that. So the CapEx forecast we've given is for the upfront CapEx. The upfront CapEx really covers networking equipment, GPUs, servers, cabling, setup, everything that you would need to get up and running. The maintenance CapEx, we are taking as an expense. There are a couple of reasons for that. The first is that most of it will be labor actually. So we're doing an RMA service where we're -- we have people that are going to be servicing the equipment and then also repairing it. And then secondly, a lot of the equipment will be covered by warranty by the vendor. So we will spend a little bit to repair or to swap out spare parts, et cetera. But the big CapEx that would be needed in case a machine -- an overall server breaks would not be with us. It would sit with the vendor. So basically, when you look at the forecast and our gross margin, we put in the gross margin, all the cost of spare parts and labor. It's not broken out separately as maintenance CapEx. Alexander Latimore: Awesome. One more. Could you describe the debt financing for Indonesia? Just a few questions to run through. What is the interest rate? Is the customer financing portions of it? If so, how much? And then what percent of the financings are complete there? Bruce Bower: We have an offer that we disclosed in the press release about the project for 70% of the project. The balance will come from the Gorilla balance sheet and then from customer prepayments. So far, how it works is if we're deploying 30% of the project upfront, so 300,000 (sic) [ 300 ] servers, then that comes out of customer prepayments and out of Gorilla's pocket. And then the debt portion would fund the 700 servers to come at the end of the year. So that's what I can share about the financing arrangements for that project. So the first deliveries are coming basically out of Gorilla's pocket and then drawing on customer prepayment. Operator: Our next question comes from the line of John Roy with Water Tower Research. John Marc Roy: Congratulations, gentlemen. I wanted to maybe take a step back real quick and think about what could go wrong next year. What do you think is your biggest risk? Is it people? Is it power? Is it building facilities? Is it acquiring equipment? What are you most worried about? Jayesh Chandan: Great question, John. Good to hear from you again. So let me classify that into 3 principal risks, okay? One is the hardware timing. The second one is the -- I would categorize site and power readiness. And the third one is customer acceptance with workload migration. Now we've been ordering early. Just for FYI, all of the equipment, which are supposed to be delivered in end of September have been delivered now. So it's about 5 weeks early. Yotta 2, it's about 8 weeks early in terms of manufacturing and so on. So we're ordering early, testing before the deployment, taking deliveries with our OEM and our integration partners. Then more importantly, we're making sure all the sequencing matters. Second, we're gating the deployment against what I call power -- confirmed power and readiness, site readiness. Engineering is working actively 24/7 on this. Networking and installation work streams are running in parallel. Our teams are sitting on the sites in different parts of the world. Now unfortunately, electricity has an inconvenient habit of being very essential. So on top of that, customer testing and workload migration has to begin before full commission. Now that allows us to resolve all of the integration issues progressively. So what we are doing is we're making sure that the paying workload works better. So we have scheduled buffers in each of these phases, phased deployment plans. And then more importantly, the ability to resequence work where appropriate. We also have to build our own internal processes. You will see that we have actually gone -- we've almost doubled our size in terms of human resources. And we're also making sure that there's contingency plans, which is both for the operational preparation as well as all of the hardware as well. So all of the RMAs, all of the RFSs, all of them have to be done well before the schedule. So that is something we believe are some of the important risks we are looking at in H2 ramp for ourselves. But we do have contingencies for every single one of them. Operator: [Operator Instructions] Your next question comes from the line of Bharath Nagaraj with Cantor Fitzgerald. Bharath Nagaraj: Previously, you referenced hiring across -- aggressive hiring, I should say, across Thailand, India, Taiwan, et cetera, targeting 1,000-plus people, I think, Thailand alone maybe. What's the current headcount? And what's the monthly OpEx run rate exiting Q2 at this stage? That's the first one. Jayesh Chandan: So good to hear from you again. So we have, I think, on a full-time resource basis, I think we're about 300-plus people. On a contractor basis, we're already at about 300, 350. We're going through the -- as you can imagine, we're going through various phases now. We are going through land assessment, power readiness, water readiness, EPC certifications and so on and so forth, both in Thailand and in Indonesia. That will involve probably another 400 to 500 people, but we are going through the whole RFP process right now as we speak. As we are going forward, we would see that number specifically expand significantly. So I can tell you at the peak, let's say, by mid-2027, we'll be at about 2,000 people. Currently, we're at about 300 plus another 350, so about 650 people. So yes, we are expanding rapidly. Bruce, do you want to take the second half? Bruce Bower: Yes. It's about $2.7 million a month is the SG&A. So that is more than just the people costs. We have -- we expect that to go up over -- by the end of next year to sort of $38 million to $40 million annualized range. Now as Jay mentioned, there's a significant headcount expansion, but just keep in mind the geographies, right, India, Thailand, et cetera, not -- it's not Silicon Valley, right? So that explains the -- why the cost increase would not be so large. And then we think that, that's -- in order to operate projects generating hundreds of millions of gross margin, I think that's a worthwhile trade-off. Bharath Nagaraj: Understood. The second question I have is on the GPU spot prices, given how volatile they are. Are Gorilla's contracted take-or-pay agreements fixed price? Or is it indexed to the spot? For example, if things change and supply catches up next year and you have a multiyear agreement, is Gorilla taking the margin risk? Or how does it work? Jayesh Chandan: That's a very good question. So we are basically -- all our hardware are fixed cost today. There is no, what I call, index or pass-through pricing, which transfer some of the volatility to the customers. All of our agreements, for example, the power agreements are fixed. There is no change in the power prices. All of our prices for water and the connectivity are fixed as well. So we're not trying to either pass on the risk to the customer or keep the risk to ourselves. Everything has been defined very clearly. Our customers have also been very understanding. So there's a higher charge upfront. And we are basically telling, look, this is the risk today. This is the cost of memory. It's gone up 40%, 50%, 60% over the last 4, 5 months. Here is the upgraded cost. And we're making sure that we are intending to protect all of the project economics. We're not just relying solely on unhedged spot pricing or anything like that. That said, we have gone to every single vendor. Personally, we haven't -- we've sat down with every single one of them and made sure that the prices are fixed. So whatever they deliver between now and December are all fixed, on a fixed price basis, it does not carry any risk for us. Bharath Nagaraj: Okay. Very clear. Just a couple more for me, if that's all right, just quick ones. I know you gave us attribution -- project level attribution for your guidance for 2027. I just wanted to understand what kind of utilization assumptions underpin the guidance, like maybe even for '26 and for '27 as well. And then a separate question is around Egypt, Taiwan and Thailand, like what kind of contribution has it made in H1? Jayesh Chandan: That's a great question. So Bharath, I'm going to break it down into 2. So there is no project level guidance or attribution -- unit attribution because these are take-or-pay, okay? The customer chooses to use it, the customer doesn't choose to use it. It's basically an identified customer, not customer demand, okay? So the mix for us is commissioned GPU capacity. Utilization is 100%. That's how we consider it. Obviously, there are some RMA issues. So the customer has asked us for a 99.95% delivery. But more importantly, we are making sure that all of these recurring compute service revenues are part of the established business. So when I tell you, I'm billing, just to give you an example, $1 for this customer, that is not going to go down to $0.9. It's not going to go up to $1.01. It is actually $1, and that will be something which we will be billing for the next 5 years. Now we model a phase commissioning. The commissioning is what will -- there will be an onboarding customer curve. As the utilization will increase as the workloads will migrate. So what would happen is the customer testing will happen. The first 300 servers will go live, the next 700 will go live, then the next 875 will go live. That is the onboarding curve, which we have. But in terms of the payment, the customer is actually paying us a flat fee for that. Now Yotta is obviously a big contributor as the phases go through. India and Indonesia are poised to become very aggressive. It's going to be a huge part of our revenues going forward. But at the same time, on Egypt, Taiwan and Thailand, we have already had, as Bruce alluded to, we've established already a security, network intelligence, public sector operations and so on. We're not giving up on that. In fact, we're bidding for some very large projects as we speak, and we're going through the motions of closing them as and when. So we will make the necessary announcement there. They remain for us a very important source of revenue, customer collections, but more important, technical credibility to help support our AI infrastructure. Now for people who don't understand what we are, how we actually do this, all of our network intelligence, all of our established security, all of our video, our data intelligence platform, our building management solutions and so on and so forth are part of our data center. Our SOC and NOC, which we have built for Egypt has actually become a part of our business. And now we are providing the same for our data centers. At the same time, we made an investment in a company called Astrikos in Bangalore in India. They are helping us integrate our SOC, NOC and our BMS solutions and providing us even more robust technological infrastructure, which we are personally using for some of our data centers. So if you look at Korat, for example, as and when we build it, almost 90% of all the technology provided will come from Gorilla or Gorilla white label solutions. Operator: And that concludes our question-and-answer session. I would now like to turn the conference back over to management for any closing comments. Jayesh Chandan: Thank you very much. I mean, thank you, everybody, for being part of this. I want to thank everyone who actually stood by Gorilla, when the numbers were smaller, our explanations occasionally required a map sometimes. People question where the certain countries were. Sometimes it took a calculator and probably even a strong shot of whiskey. In the next 12 months, now what we've done after that, we've doubled our first half of our revenue. We've reduced our operating loss by approximately 95% from Q1. Now I'd love to take credit, but unfortunately, the people who did it -- who did the actual work are actually listening to this call. So I'm not taking credit for that. Now my wife recently asked me something. She said, hey, what are you thinking about? I said power distribution. Personally, I don't think it's a -- romance is dead. It only requires a substation. And that's what we're building. So as CEO, I provide the optimism. Bruce patiently explains that, hey, the optimism is still not recognized under the IFRS. I've asked him twice. Unfortunately, he doesn't blink. So I'm asking all of you to judge us by the contracts we've signed, equipment we've delivered, revenue we're recognizing and cash we're collecting. To all our shareholders, customers and partners and all of our extraordinary employees, both old and new, I really thank you. We intend to make your patience personally look less like faith and more like excellent judgment. I know sometimes the market can complain and they'll say, you know what, oh my God, the CEO is trying to make a fool of you. That's fine. It's okay. Gorilla is only getting started. You can say only once. And when all goes to plan, and I'm saying this very clearly, when all goes to plan, not if. My family will eventually invite me back to the dinner table, which I left. I promise you that we will be talking about GPUs and megawatts at the dinner. So until then, patience. Thank you very much indeed for your time, and thanks for your support. Cheers. Operator: Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect. Before you buy stock in Gorilla Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Gorilla Technology Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 31, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Gorilla (GRRR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

GRRR surged 13% Wednesday to reverse Tuesday's 11% earnings selloff, with management's 2027 revenue guide of $450 to $500M sitting 29% above Wall Street consensus. PLTR and BBAI are not joining GRRR's rally, and DTCR fell 0.6%, confirming the move is entirely stock-specific rather than a sector-wide bid. Gorilla's adjusted EBITDA swung to a $14.6M first-half loss, and its 2027 target depends on completing construction across three countries on schedule. Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor) Gorilla Technology Group (NASDAQ:GRRR) stock is up 14% to $15.97 Wednesday afternoon, reversing the 11% earnings-day drop the stock took Tuesday on its H1 2026 filing. The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) shares are down 0.6% to $28.39, so today's move is Gorilla-specific rather than a data-center-wide bid. Evolv Technologies (NASDAQ:EVLV) stock is down 1% to $5.23, easing after its own recent print. Gorilla stock was up 29% year to date through Tuesday's close, so today's snapback lands on a stock that already had a positive trend behind it. No fresh company news has crossed the wire from Gorilla today. For GRRR, this is day two of a two-day round trip, a repricing of sentiment on the same disclosure traders sold Tuesday. Gorilla's 6-K, filed August 24, showed H1 2026 revenue of $78.36 million, up from $39.33 million a year earlier, with Q2 revenue of $50.1 million, up 138% year over year. Management lifted the full-year 2026 revenue floor to at least $200 million and set a 2027 target of $450 million to $500 million. That 2027 range sits 16% to 29% above Wall Street consensus of $386.7 million, per prior 24/7 Wall St. coverage. Gorilla CEO Jay Chandan called the quarter "the clearest evidence yet that Gorilla has entered a different phase of scale." Wednesday's bid on Gorilla stock suggests part of the market is finally willing to take that guide at face value. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Nothing in Gorilla's fundamentals changed overnight. The company's adjusted loss per share was $0.58 for the first half against a $0.32 profit a year earlier, and its adjusted EBITDA swung to a first-half loss of $14.6 million from positive $6.2 million. Gorilla's stock-based compensation of roughly $25 million was the largest non-cash contributor to that loss line. Its committed capex of $228 million and the Indonesia and Batam facility planned at roughly 200 megawatts, with first services expected mid-2027, mean the 2027 number depends on finishing construction on schedule across three countries. CFO Bruce Bower said guidance for Gorilla includes only contracted revenue, describing the forecast as containing "existing contracts or contracts that we've won and not yet announced." Chandan added that finalizing additional NeutraDC deployments would trigger a revision: "Once that is done, we will absolutely revise the targets for next year." The data center fund read confirms this is Gorilla-specific. DTCR ETF shares sit lower on the day, and Evolv stock is lower as well. Tuesday the pattern ran in reverse: Gorilla stock fell alone while the peers held up. Palantir Technologies (NASDAQ:PLTR) and BigBear.ai (NYSE:BBAI) are the AI infrastructure and defense AI reference names Gorilla is most often compared to, and neither Palantir stock nor BigBear.ai stock is doing the work for GRRR today. A stock that swings sharply down and back up in two sessions on no new information is telling you something about its float and its shareholder base, and that is worth saying plainly. A stock capable of a double-digit percentage swing in either direction within two sessions on no fresh news is a sizing problem before it's a direction problem. If your thesis is the 2027 guide and the Southeast Asia buildout, your position size has to survive another round trip like this without forcing you out on the next volatility spike. Investors can watch for whether the bid on Gorilla stock holds into the close and whether volume confirms the move. Traders could look for signs that Palantir stock, BigBear.ai stock, or the Global X Data Center & Digital Infrastructure ETF pick up a bid later this week to validate the AI infrastructure read. The disciplined play into a spike this violent is to trim exposure and keep dry powder. Sizing well below a full position keeps this trade alive if the tape whipsaws again on the next NeutraDC update or on the dilution overhang from the post-period $125 million convertible notes. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Contact [email protected] for any questions or corrections.

This article first appeared on GuruFocus. Release Date: August 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gorilla Technology Group Inc (NASDAQ:GRRR) reported a 99% year-over-year revenue increase in H1 2026, reaching $78.4 million, with Q2 revenue of $50.1 million exceeding its upgraded guidance by 14%. The company significantly narrowed its operating loss by 95% from Q1 to Q2, reducing it to approximately $2.2 million, as the majority of share-based compensation was absorbed in the first quarter. Operating cash consumption declined by 65% year-over-year to $4.3 million in H1 2026, improving cash efficiency from 31.8% of revenue to just 5.5%. Gorilla Technology Group Inc (NASDAQ:GRRR) raised its 2026 revenue guidance to at least $200 million and provided an ambitious 2027 target of $450-$500 million, driven by high-margin GPU-as-a-service contracts. The company has secured fixed-price agreements for hardware and power, mitigating supply chain and cost volatility risks, and expects gross margins of 75% or more on its YOTA and NutriDC projects. Management highlighted strong liquidity with $179.4 million in cash, enabling it to fund infrastructure investments and prepayments for key projects like YOTA-1 and YOTA-2. Gorilla Technology Group Inc (NASDAQ:GRRR) reported a gross margin profile negatively impacted by hardware-heavy revenue mix and initial deployment costs, though it expects expansion as services ramp up. The company faces significant execution risks related to hardware delivery timing, power readiness, and customer acceptance, which could delay revenue recognition. Foreign exchange volatility due to geopolitical conflicts and tariff wars in the Middle East and Southeast Asia created significant below-the-line expense items in H1 2026. The company's aggressive expansion plan requires substantial capital deployment, with CapEx expected to multiply in H2 2026, increasing reliance on project financing and debt. Management acknowledged that reaching the upper end of its 2027 revenue target depends on converting prospective demand into firm contracts and successfully commissioning all planned capacity, which is not yet guaranteed. The company's guidance excludes potential revenue from additional phases of NutriDC and other projects until delivery schedules are firmed up, indicating uncertainty in future growth projections. Warning! GuruFocus has detected 3 Warning Sign with GRRR. Is GRRR fairly valued? Test your thesis with our free DCF calculator. Q: What is the breakdown of the 2027 revenue guidance of $450-$500 million, and which projects are included versus excluded? A: CFO Bruce Bauer detailed that the guidance includes the YOTA 1 contract, which is roughly $100 million annualized incremental revenue, and the first batch of the YOTA 2 contract, adding $250 million. It also includes the initial 300 servers for the NutriDC project, which is an increment of $75-$80 million annually. The remaining balance comes from existing contracts. Excluded from guidance are the subsequent 700 servers from NutriDC's first phase and the second phase of 875 servers, as delivery schedules are not yet firm. The company takes an ultra-cautious approach, only including contracted revenue with confirmed amounts and dates. Q: Can you elaborate on the project financing status and what has been the biggest obstacle in securing it? A: CFO Bruce Bauer clarified that for one project, financing has been arranged, and for another, it is close to completion. The primary obstacles have been the company's insistence on securing the best possible terms for shareholders, rejecting initial offers that were not conducive, and managing shifts in vendor delivery schedules that required faster payments. He expressed satisfaction with the current position in the debt markets and hinted at a forthcoming credit rating pursuit. Q: What is the terminal value of the GPUs after the five-year contract period, and is there an opportunity to continue operating them? A: CEO Jay Chandon stated that current residual values for GPUs like the V300 and GD300 are estimated at 20-25% after five years. The intent is to continue operating them, as workloads evolve from training to inference and edge computing. They have already received offers from institutional investors and data center operators to purchase the equipment at the end of the term. CFO Bruce Bauer added that while they depreciate over five years to match contract terms, industry evidence suggests GPUs can have a useful life of 7-9 years, still generating healthy returns. Q: Does the CapEx forecast for India and Indonesia include maintenance CapEx, and how should we think about its cadence? A: CFO Bruce Bauer explained that the CapEx forecast covers only upfront costs like networking equipment, GPUs, servers, and setup. Maintenance is treated as an operating expense within gross margin, as most of it is labor for RMA services and spare parts. The vendor warranty covers major equipment failures, so the company does not expect significant maintenance CapEx. Q: Can you describe the debt financing for the Indonesia project, including the interest rate and customer financing portion? A: CFO Bruce Bauer stated that an offer is on the table for project financing covering 70% of the project. The balance will come from Gorilla's balance sheet and customer prepayments. The initial deployment of 300 servers is funded by customer prepayments and company cash, while the debt portion will fund the subsequent 700 servers expected at the end of the year. Q: What are the biggest risks to achieving next year's targets, and how is the company mitigating them? A: CEO Jay Chandon identified three principal risks: hardware timing, site/power readiness, and customer acceptance/workload migration. He noted that equipment deliveries are running 5-8 weeks early due to proactive ordering. The company is mitigating risks by testing before deployment, confirming power and site readiness, running engineering and networking teams in parallel, and scheduling buffers in each phase. They have contingency plans for operational preparation and hardware, including RMA and RFS processes completed well ahead of schedule. Q: What is the current headcount and monthly opex run rate exiting Q2? A: CEO Jay Chandon reported approximately 300 full-time employees plus 300-350 contractors, totaling about 650 people. They are expanding rapidly and expect to reach around 2,000 people by mid-2027. CFO Bruce Bauer added that the current SG&A run rate is about $2.7 million per month, expected to increase to a $38-$40 million annualized range by the end of next year, noting that hiring in India and Thailand is cost-effective compared to Silicon Valley. Q: Are Gorilla's GPU contracts take-or-pay agreements with fixed prices, or are they indexed to spot prices? A: CEO Jay Chandon confirmed that all hardware costs are fixed with no index or pass-through pricing. Power, water, and connectivity agreements are also fixed. The company has personally negotiated with every vendor to secure fixed prices for deliveries through December, protecting project economics and avoiding margin risk from volatile spot prices. Q: What utilization assumptions underpin the 2026 and 2027 guidance, and what is the contribution from Egypt, Taiwan, and Thailand? A: CEO Jay Chandon explained that the contracts are take-or-pay, so utilization is assumed at 100% for commissioned GPU capacity. The onboarding curve is modeled based on commissioning phases (e.g., first 300 servers, then 700, then 875). He emphasized that Egypt, Taiwan, and Thailand remain important sources of revenue and technical credibility, with the company bidding on large projects. The established security and network intelligence operations, including SOC/NOC built for Egypt, are being integrated into the new data center business, with nearly 90% of technology for the Korak project coming from Gorilla or its white-label solutions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue doubled year-over-year in the first half of 2026, driven by the completion of key deliverables and milestones earlier than originally anticipated. Operating performance improved significantly as the company absorbed the majority of share-based compensation in Q1, leading to a 95% reduction in operating loss by Q2. Management is deliberately deploying capital into revenue-generating infrastructure, including purchasing GPUs and securing data center capacity, rather than focusing on interest income. The current gross margin dip reflects a temporary revenue mix weighted toward hardware and mobilization costs as the company builds its installed base. Strategic positioning focuses on 'Sovereign AI' and edge computing, leveraging established security and network intelligence operations to support large-scale infrastructure projects. The company is managing five parallel site preparations, emphasizing that megawatts of capacity represent contracted revenue rather than just potential volume. Full-year 2026 revenue guidance was raised to at least $200 million, with Q4 expected to exceed $60 million to $70 million based on workload activation. Targeting $450 million to $500 million in revenue for 2027, contingent on the commissioning of additional projects and migration of customer workloads. Gross margins are expected to expand toward the 40% plus range in 2027 as high-margin GPU-as-a-Service projects (averaging 75% gross margin) go live. Guidance methodology remains conservative, only including revenue where delivery schedules for GPUs and servers are firmly established. Future capital expenditures will increasingly be funded through project-specific finance facilities and debt rather than equity, aiming for operating cash flow breakeven for the full year. Supply chain constraints in GPUs, CPUs, memory, and cabling remain a primary execution risk, though the company is ordering 5-8 weeks early to mitigate delays. Foreign exchange volatility and geopolitical tensions in the Middle East and Southeast Asia impacted below-the-line expenses in the first half. The company is utilizing a 5-year depreciation schedule for GPU equipment to align with contract lengths, though management expects a longer useful life for inference workloads. Securing consistent electricity and site readiness are identified as critical dependencies for meeting the H2 2026 ramp-up schedule. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The $450M-$500M target includes $100M from Yotta Phase 1 and $250M from Yotta Phase 2 batch one, plus initial NeutraDC deployments. Management excluded the second phase of NeutraDC and the final part of Yotta Phase 2 from guidance until delivery schedules are firm. GPUs are treated as a scarce commodity, with the company taking an 'ultra-cautious' approach to forecasting until hardware is in hand. Management expects a 20-25% residual value for GPUs after five years, though they intend to keep operating them for inference tasks. The company noted that older generation chips (like A100s) still generate healthy yields, suggesting the actual service life may exceed the 5-year accounting depreciation period. Financing for the NeutraDC project is structured as 70% debt, with the remaining 30% funded by Gorilla's balance sheet and customer prepayments. Delays in securing financing were attributed to management 'fighting for the best terms' and resisting offers that were not conducive to shareholders. Contracts are structured as 'take-or-pay' agreements, meaning Gorilla recognizes revenue based on commissioned capacity regardless of customer usage levels. Pricing is fixed-cost to protect margins; Gorilla does not use unhedged spot pricing and has secured fixed rates for power and hardware to mitigate volatility.

Interested in Gorilla Technology Group Inc.? Here are five stocks we like better. Revenue surged: First-half 2026 revenue nearly doubled year over year to approximately $78.4 million, driven by stronger-than-expected project deliveries. Gorilla raised its 2026 revenue outlook to at least $200 million and is targeting $450 million to $500 million in 2027. GPU and data-center expansion is accelerating: Yotta Phase I and other GPU-as-a-service projects are expected to begin operating in the second half of 2026, with projected gross margins of 75% or more. The company is also advancing major capacity plans in Indonesia and Thailand. Growth requires substantial funding: Gorilla ended June with roughly $179 million in cash and plans significantly higher capital expenditures for GPUs and data-center infrastructure. Management expects to rely increasingly on project financing, debt and customer prepayments while citing equipment timing, site readiness and customer workload migration as key execution risks. Gorilla Technology Skyrockets 124% On Smart Government Contract Gorilla Technology Group (NASDAQ:GRRR) said revenue nearly doubled year over year in the first half of 2026, while management raised its outlook for the full year and outlined plans to expand its GPU-as-a-service and data-center infrastructure projects across India, Indonesia and Thailand. Chairman and Chief Executive Officer Jay Chandan said first-half revenue rose 99% to approximately $78.4 million. Second-quarter revenue exceeded $50.1 million, up about 78% from the first quarter and 138% from the year-earlier quarter. The company had initially expected second-quarter revenue of about $33 million and later increased that expectation to $44 million, Chandan said, adding that earlier-than-anticipated completion of deliverables and project milestones contributed to the result. → 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Reported operating loss narrowed to about $2.2 million in the second quarter from $41.1 million in the first quarter. Chandan said more than 80% of first-half share-based compensation was recognized in the first quarter, with the quarterly charge declining by about 78% in the second quarter. The company reported improved operating cash efficiency despite its growth investments. Chandan said operating cash consumption fell about 65% to $4.3 million in the first half of 2026 from $12.5 million in the comparable 2025 period. Operating cash usage represented 5.5% of revenue, compared with 31.8% a year earlier. → 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs Chandan said Gorilla’s cash increased by approximately $79.8 million during the first half, supported by financing activity, customer collections and expansion-related funding. He cited cash at the end of June of roughly $179.4 million, while Chief Financial Officer Bruce Bower said the company entered the second half with about $175 million of cash. Bower also said the company had $13 million of conventional bank debt and $107 million of long-term debt from a five-year convertible financing completed in June. He said Gorilla completed another convertible financing in July and is using available capital to pay for equipment, deliveries and deployments intended to begin generating revenue in the third and fourth quarters. → 2 Biotech Stocks Shaping Up for Major Breakouts Gorilla invested more than $14.1 million in property and equipment during the first half, according to Chandan. Bower said capital expenditures will increase substantially in the second half as the company installs networking equipment, GPUs, servers, cabling and related infrastructure. Maintenance expenses, including labor and spare parts, are included in gross-margin costs rather than separately classified as maintenance capital expenditures, he said. Management said current gross margins reflect a mix weighted toward hardware sales, initial deployments and project mobilization. Bower said the company expects its revenue mix to shift toward compute, monitoring and managed services as infrastructure is commissioned and customer workloads migrate. Bower said Yotta Phase I and other GPU-as-a-service projects are expected to begin operating in the second half. He said those projects are expected to generate gross margins of 75% or more. He added that Gorilla does not provide official gross-margin guidance for 2027, but said a revenue mix led by GPU-as-a-service could support gross margins in the “40%-plus range” next year. Chandan said testing for Yotta Phase I had been completed, equipment deliveries were under way and deployment had started. Testing was expected to begin by the end of the week or early the following week. Equipment for Yotta Phase II was being manufactured and was expected to be completed over the following 25 to 30 days. In Batam, Indonesia, Gorilla is working with OEM and infrastructure partners after securing data-center space. The company is targeting approximately 200 megawatts of additional capacity, with initial service readiness expected in mid-2027 and broader deployment planned for the second half of 2027. At Korat, Thailand, Chandan said land had been cleared and the company was advancing financing, procurement and infrastructure work while engaging prospective customers. During the question-and-answer session, Bower said the company’s 2027 guidance includes Yotta Phase I, representing roughly $100 million of annualized incremental revenue; the first batch of Yotta Phase II, representing about $250 million; and the first 300-server NeutraDC deployment, which he said could add about $75 million to $80 million annually. Additional NeutraDC server deployments and part of Yotta’s second phase were not included in the forecast because delivery schedules had not yet been finalized. Gorilla raised its third-quarter revenue plan to $48 million to $50 million from a prior range of $36 million to $40 million. For the fourth quarter, management said its operating plan calls for revenue above $60 million to $70 million. The company now expects at least $200 million of 2026 revenue, compared with its prior outlook of $137 million to $200 million. For 2027, Gorilla is targeting revenue of $450 million to $500 million. Bower said the company bases guidance on contracted revenue for which both amounts and timing are established, excluding contracts or opportunities without firm schedules. The company expects customer collections exceeding $20 million in September and October, Bower said. He said Gorilla expects those collections to support break-even operating cash flow for the full year, after first-half operating cash flow of negative $4 million. On project financing, Bower said Gorilla has an offer to fund 70% of the NeutraDC project, with the remaining portion expected to come from Gorilla’s balance sheet and customer prepayments. He said the company is also arranging or has arranged project-finance facilities for Yotta deployments, and expects future capital expenditures to rely more heavily on project finance and debt. Management identified hardware timing, site and power readiness, and customer acceptance and workload migration as principal execution risks. Chandan said the company has ordered equipment early, is coordinating installation teams and site readiness, and is beginning customer testing before full commissioning where possible. Gorilla Technology Group is a Taiwan‐based provider of video computing and artificial intelligence solutions, offering software and hardware platforms for real‐time video analytics, facial recognition and edge‐computing applications. The company’s core business centers on the development of AI‐driven surveillance technologies that can be deployed in cloud, on-premise or hybrid environments. Gorilla Technology Group’s platforms are designed to process high-volume video data streams for security monitoring, operational optimization and business intelligence. The company’s flagship offerings include video management systems integrated with smart analytics modules, IoT gateways for edge-level data processing and AI engines for tasks such as people counting, license plate recognition and behavioral analysis. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Gorilla Technology Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

London, United Kingdom--(Newsfile Corp. - August 20, 2026) - Gorilla Technology Group Inc. (NASDAQ: GRRR) ("Gorilla" or the "Company"), a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence, IoT technology and data centres, will host a conference call on Monday, August 24, 2026, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the quarter and six months ended June 30, 2026. A press release containing the financial results will be issued before the call. This conference call date supersedes the date included in the Company's previous announcement. Call Date: Monday, August 24, 2026 Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time) Toll Free: +1-800-715-9871 International: +1-647-932-3411 Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact RedChip Companies at 1-407-644-4256. The conference call will be webcast live and available for replay at: https://www.gowebcasting.com/14983 About Gorilla Technology Group Inc. Headquartered in London U.K., Gorilla is a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence, IoT technology and data centers. We provide a wide range of solutions, including Smart City, Network, Video, Security Convergence and IoT, across select verticals of Government and Public Services, Manufacturing, Telecom, Retail, Transportation and Logistics, Healthcare and Education, by using AI and Deep Learning Technologies. Our expertise lies in revolutionizing urban operations, bolstering security and enhancing resilience. We deliver pioneering products that harness the power of AI in intelligent video surveillance, facial recognition, license plate recognition, edge computing, post-event analytics and advanced cybersecurity technologies. By integrating these AI-driven technologies, we empower Smart Cities to enhance efficiency, safety and cybersecurity measures, ultimately improving the quality of life for residents. For more information, please visit our website: Gorilla-Technology.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Gorilla's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding our beliefs about future revenues and our ability to sign new contracts and execute existing contracts, along with those other risks described under the heading "Risk Factors" in the Form 20-F Gorilla filed with the Securities and Exchange Commission (the "SEC") on April 15, 2026 and those that are included in any of Gorilla's future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of Gorilla and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Gorilla undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation. Investor Relations ContactDave GentryRedChip Companies, [email protected] To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310615

London, United Kingdom--(Newsfile Corp. - August 20, 2026) - Gorilla Technology Group Inc. (NASDAQ: GRRR) ("Gorilla" or the "Company"), a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence, IoT technology and data centres, will host a conference call on Monday, August 31, 2026, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the quarter and six months ended June 30, 2026. A press release containing the financial results will be issued before the call. Call Date: Monday, August 31, 2026 Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time) Toll Free: +1-800-715-9871 International: +1-647-932-3411 Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact RedChip Companies at 1-407-644-4256. The conference call will be webcast live and available for replay at: https://www.gowebcasting.com/14983 About Gorilla Technology Group Inc. Headquartered in London U.K., Gorilla is a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence, IoT technology and data centers. We provide a wide range of solutions, including Smart City, Network, Video, Security Convergence and IoT, across select verticals of Government and Public Services, Manufacturing, Telecom, Retail, Transportation and Logistics, Healthcare and Education, by using AI and Deep Learning Technologies. Our expertise lies in revolutionizing urban operations, bolstering security and enhancing resilience. We deliver pioneering products that harness the power of AI in intelligent video surveillance, facial recognition, license plate recognition, edge computing, post-event analytics and advanced cybersecurity technologies. By integrating these AI-driven technologies, we empower Smart Cities to enhance efficiency, safety and cybersecurity measures, ultimately improving the quality of life for residents. For more information, please visit our website: Gorilla-Technology.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Gorilla's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding our beliefs about future revenues and our ability to sign new contracts and execute existing contracts, along with those other risks described under the heading "Risk Factors" in the Form 20-F Gorilla filed with the Securities and Exchange Commission (the "SEC") on April 15, 2026 and those that are included in any of Gorilla's future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of Gorilla and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Gorilla undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation. Investor Relations ContactDave GentryRedChip Companies, [email protected] To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310600

Image source: The Motley Fool. Wednesday, May 27, 2026 at 4:30 p.m. ET Chief Executive Officer — Jayesh Chandan Chief Financial Officer — Bruce Bower Operator Jayesh Chandan: 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. Also, I'm not going to be reading from a piece of paper today. Now Q1 for me was the quarter where Gorilla moved from turnaround into scale. And 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 the 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 in 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. So a charming idea, rarely accurate. Now let me start with the facts. We delivered USD 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. Now this is a huge swing. It's a positive swing, about $17.3 million of improvement or 162% swing. Now on top of that, we ended the quarter with a 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. Now 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 actually missed the business. The loss was heavily distorted by 2 major items. There was a $20.9 million stock compensation, which has been due for a better part of 3.5 years. We had to take that hit. Second, you've got a USD 18.9 million of foreign exchange losses. Together, combined, that's about 97-plus percent of reported operating loss. Now excluding those items, the underlying operating loss of the entire company was only $1.2 million. Now that's real context. So 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. So that is why I say this quarter separates accounting noise from an operating reality. Now the stock-based compensation charge is a noncash. It reflects a long overdue equity compensation linked with several years, which we have been discussing with the market. Now frankly, I would rather recognize the charge when our equity value is materially higher than issue it at stress levels or punish the shareholders. Now put it more simply, I would rather take the accounting medicine at around, let's say, $15 and hand out the company at $3. Now this is not arrogant. This is arithmetic. The FX loss was painful. Nobody enjoys currency devaluation unless they have a very unusual weekend hobby. Now -- but 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 advanced payment. Let me repeat that again, all of our advanced payment guarantees associated with the project now have been completed and for every single project stage, we 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. So yes, the FX [Technical Difficulty] the projects progressed, the guarantees have been reduced, and that is the operating story. Now 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. But the company is now moving into a much larger arena, AI infrastructure, GPU infrastructure, data centers, sovereign compute and secure national digital platform. 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 colocation 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, operational systems. Now 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. Now 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 task. 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. And 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. Now since then, people will say, Jay, you've been aggressive, fine, but I call it ambition with a calculation. Now in Thailand, for example, we're advancing with our 200-megawatt AI data center campus in Korat. We have secured and acquired a strategic land. We've secured the foundation of the power planning. We are building the physical platform for Gorilla's AI infrastructure. But more importantly, it is an owned AI infrastructure strategy in Asia. Now Thailand is not just a concept. It's not just a mood for. It's land power, planning, water, dark fiber, cooling, security, a real development path. Anyone can say they are [Technical Difficulty]. Very few can assemble the infrastructure required to power. We're also pursuing additional opportunities across Thailand, including Rayong. In Indonesia, I think [Technical Difficulty] you've seen, we have moved forward securing colocation facility in Jakarta and in Batam. Now across Southeast Asia, our goal is to combine own data centers, colocation facilities, GPU deployments and sovereign AI demand into one regional infrastructure platform. Personally, as Jay, I believe Gorilla has a credible path towards approximately over 500 megawatts of AI infrastructure capacity by the end of 2028. I'm not talking 5 years. If we execute properly, I can even go more. The demand is well north of a couple of gigawatts today. So 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 0.5 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. And 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 develop platforms. He continues to deepen our Security Intelligence capabilities. He is continuing to expand our Network Intelligence portfolio and push our sovereign technology road map 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 and security. 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 and I can point to. It will be judged on whether the infrastructure is secure, resilient, sovereign, efficient and more importantly and most importantly, trusted. Now compute without control for me is just expensive heat. Now 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 us last year. And now I can tell you, over the last several months, we have added more than 100-plus employees and over 200-plus 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 multibillion-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. So 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 to $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. And more importantly, it will require us to keep pushing across all of the markets in Middle East and Asia, along with other strategic locations. But the direction is very, 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. And 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. So 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 narrative. Markets can enjoy the debate. It gives people something to do between the spreadsheets. But the cash flow statement has already started speaking. So thank you. I will hand this over to Bruce, who will now walk you through the numbers in a way I counted to enjoy and now -- Bruce? Bruce Bower: 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. So the first is, as Jay mentioned, revenue up 55% year-on-year. You can see from the full year guidance, $160 million to $200 million is the range compared to last year. So that shows we're already on track with our year-over-year forecast. The other thing is that, that revenue is converting into operating cash flow. So we collected -- we collected invoices from 3 large customers in the first quarter. So 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. So 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 0. At the end of the quarter, we were $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. So in between the coax and then the expansion into the colocation facilities and in the projects at Yotta, et cetera, this is what gets us through the first stages. We also -- the debt position continues to perform in the sense that it's continuing to dwindle. So we have $13.2 million of debt. So that leaves us with a very strong net cash position. And then 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. But also 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. So 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 want to talk about was really -- so Jay mentioned some of the numbers about the FX losses and then the stock-based compensation. I would -- so there was a $1.1 million operating loss without those 2 big revaluations. I would note that basically, we carry large balances in 3 currencies in -- apart from U.S. dollars, obviously, in Taiwan dollars, in Thai baht and in EGP. And given geopolitical events in the first quarter, all of those had adverse movements. Taiwan, Egypt, and Thailand have all stabilized with 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. So that, I think, masks the underlying profitability of the business. So 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. Then 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 documentation phase or we are in the documentation phase already. And then the next announcement about the project level financing will be one where we basically say it's closed, and this is the [indiscernible] project for the various projects that would be funded. So 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. So the profitability is there. That's all for me. I'll turn it back over to Jay, and we can open up for questions. Jayesh Chandan: Thank you, Bruce. Operator, we're happy to take the questions. Operator: [Operator Instructions] Our first question comes from the line of Brian Kinstlinger with Alliance Global Partners. Unknown Analyst: This is [ Kevin ] for Brian. Could you talk about the planned time line for the variety of HPC AI deals you've announced during -- that you had announced, including the multiple phases, the 3, 3-year programs and the 200-megawatt campus in Thailand, as well as any others that I might be missing, particularly when each phase is expected to begin revenue generation? Jayesh Chandan: Kevin, it's good to hear from you. Thank you. So we have started out our campus build-out in Korat. Let me start with that. So we have already started talking to the EPCs. We're looking at the water. We're looking at power. So our build-out should start somewhere around the third to fourth quarter this year. So 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 partner, Supermicro to 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've 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. So if you look at the revenues hitting our books, you will see the first phase revenues hit our books from September. Then going on for the second phase would be from October, November, and December. In Asia, which you talked about, that was your first question. We are -- as you know, we've just signed up the colocation 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 our -- again, our partner, Supermicro to get the delivery schedule. And as of now, the delivery schedule looks like something between August and September. So we will keep the market updated as and when we evolve with our time lines. I hope that answers your question. Operator: The next question comes from the line of Mike Latimore with Northland Capital Markets. Mike Latimore: Congrats on the first quarter results. Your cash flow looks great. I guess you raised the lower end of your guidance from the start of the year, it was $137 million to $160 million. Maybe what was the main factor behind that? Jayesh Chandan: Bruce, do you want to take that? Bruce Bower: Yes, sure. So as you know, how we forecast guidance is we take what is contracted. So we don't just stick our finger in the wind and think about all the pipeline looks like this and this projected conversion and hope for the best. So we feel confident in 2 things. The first is that the time line, as Jay just mentioned, are looking very good for us to deliver above what was the previous low end of the range, $137 million. And then 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. So in between -- so by the end of the third quarter, I think we'll come out in a better place than we originally assumed. So those 2 factors led us to think, okay, the bottom end of this range needs to move up. Then 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, under promise but to be transparent. And then as things become 99% certain, then we will adjust the guidance as appropriate. Jay, anything I missed? Jayesh Chandan: No, I think you hit the nail on the head. Mike, good to hear from you again. Again, we are working very, 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 is the Co-Founder of Supermicro and make sure that we are able to get all the deliveries sent over to us. Now 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 of 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. Mike Latimore: At that $200 million level, how much of that would be in the kind of AI, data center, digital infrastructure category? Jayesh Chandan: Roughly around 60% to 70%. Our core business will continue to grow, but this AI is new, so we're going from 0% to almost 150% of that in terms of revenue. So yes, that's going to be where we are. Mike Latimore: Then on the Egypt deal, you're at full implementation. Is there a recurring revenue that continues now? Jayesh Chandan: Yes. So we have a 5-year recurring revenue, as we mentioned to the market about 3 years ago, post the completion. So 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 have been super happy. One thing I want to mention here is that we now have nil, near nil advanced payment guarantees on any projects. All our projects have been delivered successfully. The total advanced payments, I mean, as you know, 3 years ago, our advanced payments were well north of $50 million, $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. I just want to make that statement very clear. So it means we have delivered, customers have paid us. Mike Latimore: That's great. And then just last for me on the gross margin. How should we think about gross margin for the year? Bruce Bower: Yes. So last year's gross margins were in the low 30s. Given the growth in the AI-focused business, the margins will expand. The gross margins on the data center GPU-as-a-Service implementation are sort of 75% to 80% in a bad case and can be even higher. So 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 were basically skewed a little bit towards more hardware. And then frankly, we are a little more aggressive on the pricing just to get an extra customer across the line. But overall, we've announced the contracts that will form the growth phase for quarter 2 to Q4, and the margins on those are much higher than the traditional business, the gross margins at least. So we expect them 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. Jayesh Chandan: If I may add to -- Mike, my apologies. If I may add to that, right, just a quick point. See, we -- 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. Then project delivery and technical deployment. So 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 concept here first, but the gross margin recovery follows as the utilization increases. You've been in the space for so long, you understand data centers better than most people. The AI infrastructure for us does not scale for free. So 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. Operator: The next question comes from the line of Bharath Nagaraj with Cantor Fitzgerald. Bharath Nagaraj: I think you mentioned 100 new people were hired and 200 new contractors. I guess that will only be partly reflected or maybe I think Bruce was mentioning maybe fully reflected in Q1 and you're continuing to hire more. So just wondering how much should we expect operating expenses to increase by in the coming quarters? And 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. Jayesh Chandan: Bruce, if you want to take the first half, I'll take the second half for that. Bruce Bower: Sure. So I think 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 it won't -- first of all, it won't expand as quickly as the revenue will. And then also given that we're adding higher gross margin business, there should be expansion in gross margin and it flows through to EBITDA margin. So 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. So I would expect it will expand beyond that margin to 25%, 30% plus. I'm going to -- we'll give the exact when we have the final numbers. Jayesh Chandan: Yes. And 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 one, right? Today, we bid these contractors, this is because they're sitting together, putting all these infrastructure in play and so on and so forth. But 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-plus 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 deployment, you've got your technical enablement. You've got your product development. You've got your SOC, NOC and managed services. Then you have your finance, compliance, procurement and project controls, export controls. We have to have a separate legal team for all the export controls with the U.S. government and NVIDIA and which we have to support. And then finally, we have to have our commercial support and what I call as our customer success. Now again, Bharath, we are not collecting these employees like stamps, okay? We're moving from a lean turnaround business into a scale execution. So 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 year projects. We've got another $2 billion of signed contracts. So you're looking at about $5-plus 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 running up and running. We have the team from India sitting here today in Asia, in Southeast Asia with us, and we are building all of our infrastructure teams and so on and so forth. Then you've got your Southeast Asia colocation capacity. We have outsourced most of that work to our friends at NeutraDC. But then you've got your security, network intelligence and so on and so forth. So we are building what I call 0.5 gigawatt of ambition. And fortunately, that is going well in our favor today. Bharath Nagaraj: That's very helpful color. Just a quick couple of follow-ups. In terms of the capacity of data center capacity or AI capacity you want to be installing by the end of this year, I think you mentioned 60% to 70% at the upper end of your guidance is to come from that. But in terms of the capacity, what's it going to be? I think it was historically around 100 megawatts, maybe that was at the lower end. So I just wanted to clarify what that number is for 2026? Because I think 2028, you have mentioned 500 megawatts. Jayesh Chandan: That's a really, really good question, Bharath. So we are aiming at anything between 100 to 150 megawatts by the end of this year. By end of 2027, my personal ambition is to complete the full 500 megawatts we've already received inbound interest on a number of other land sites and government approaches on -- from various different parts of Asia. We received inward requests in terms of how we can build up scale to about 2 gigawatts as well. These are conversations we're having right now as we speak. But my personal ambition, like I said, end of 2027, I want to have at least 0.5 gigawatts of power capacity with a view that I've signed another gigawatt -- another gigawatt of -- full gigawatt of development capacity as well. Bharath Nagaraj: Super. Just one -- sorry, actually, I have a couple more, if that's all right. Just on the -- you have obviously, a lot of competing demands for GPU. How confident are you that these -- all the GPUs for all these projects can be delivered given the supply chain issues? I mean, there's a lot of orders that you have won. Pipeline is pretty significant. And hence, I was wondering around that. Jayesh Chandan: Yes. 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 up revenues next year, but it takes time. NVIDIA is releasing a lot of -- I mean, if you look 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. But that changes the entire goalpost as well sometimes. So we're making sure that the customers' architectures don't change. So 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. So we've got to keep them grounded. Now on the delivery side, fortunately, we have not had any major issues at all in terms of NVIDIA to date. The global concerns or issues today, which are like a nose around my neck, don't seem to be having created a major problem yet. But what has created some level of delay is the current lack of availability of memory and storage in the market. And compounded now, we are also seeing shortages in CPU availability in the market. So we are working with our partners. So we are very, very, 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 the memory does not -- I mean, getting the GPUs is great, but our capacity needs to increase, right? So we are working hand in glove with every single major partner of ours across the region to make sure that it does not falter. Bharath Nagaraj: 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? Jayesh Chandan: Bruce? Bruce Bower: Yes, I think that's correct. I mean, there was some -- there was deferred stock-based compensation, and it's been out there for a couple of years. And for various reasons, we decided to pay in this quarter. So it takes no longer an overhang. Jayesh Chandan: Bharath, if I may add to that, and this is not me being funny. I've seen comments like, oh, my God, CEO has gotten paid and blah, blah, blah. No, this is not just the 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 4 years now since the company went public. And employees need to be paid. They need to be given their stock. Unfortunately, it had to come in this quarter. That's okay. If I don't pay my employees, that's the wrong thing for me to do. So I'm setting the right precedents. Operator: The next question comes from the line of John Roy with Water Tower Research. John Marc Roy: So 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. Jayesh Chandan: John, good to hear from you. I was wondering when you would 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. And there's no version of my story or this story today where we signed multibillion-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? I mean, GPUs take money. I mean, I don't know if people realize buying a B300 server costs me more than $0.5 million. That's excluding networking and all the other hoopla that goes with it. So when a customer tells me that I need 1,000 servers, you're looking at about $500-plus 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 million to $25 million. It's a pretty penny. On top of that -- so where are we today? We have not yet relied on dilutive equity to fund the build-out today. Our approach has been to protect shareholders while building the capital stack required for our particular club, okay? We are actively working on vendor financing. We have received term sheets in the range of approximately $0.5 billion to $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 million, $800 million that contemplate lending at the project or the SPV level rather than relying purely on the listed path. You remember what Bruce said last quarter, we're making sure it's a nonrecourse. And I think people need to understand when Bruce meant that, he meant that for real. So 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. So 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 -- sorry, institutional investors with structures that can support a 7- to 10-year long-life infrastructure asset investment. Now we're matching funding to the asset. GPUs, data centers -- sorry, and contracted infrastructure revenue should not be financed with short-term thinking. Now the capital structure has to match the commercial life of the assets. 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. So 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 pipeline -- data center pipeline. The market knows about this already. If we want to move Gorilla from a $100 million revenue business last year to $500 million revenue next year plus annualized business for the next 5 years, then the business has to be funded like a Sirius infrastructure platform. So growth requires capital, and more importantly, profitable growth requires very disciplined capital. So 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, 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. But we're doing it very carefully to protect our shareholders, keeping them in mind at every single time. I hope that answers your question. John Marc Roy: Yes, 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... Jayesh Chandan: Sure. So 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-plus billion. That's excluding any of the build-out we're doing currently in Korat or in Rayong and so on and so forth. So -- and when I mentioned this previously to Bharath, I made this very clear to him that we are looking -- my personal ambition would be to get a full gigawatt in there. If I get the full gigawatt with offtakers -- and by the way, just FYI, we do not sign any colo. We're not purchasing any land without an offtaker. I have signed offtakers completely ready to take over the capacity day 1. It's not a single hour. I will spend on GPU power without having an offtaker. So our revenue will hit the books as soon as the date opens when the ribbons have been cut. So if we do the 1 gigawatt, 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 plus number. Operator: [Operator Instructions] The next question comes from the line of Barrett Boone with RedChip. Barrett Boone: 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 we scale towards the $500 million revenue target? Jayesh Chandan: I'm happy for Bruce to start, and then I can chip in. Bruce? Bruce Bower: Sure. So what's driving it is really we have 3 core customers, which we disclosed in the 20-F. And we delivered over the course of 2025, we invoiced and then in 2026, we said these are terms, make sure that we collect. So 2 of them have always been extremely prompt payers, and that's the kind of customer we like. And then in the third one, it's really just a simple logic, commercial logic where we say, look, in Egypt, we've been working together since July 2023 when we were 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 and the customer is -- recognizes the value and then the core nature of the infrastructure that we've built. So that is helping and just the sticky nature of our product. And then the thing I would say is that with new customers, we're extremely vigilant about the payment terms for who we -- new customers that we're onboarding. Jay? Jayesh Chandan: Absolutely. Thanks, Barrett. Bruce, that was actually quite interesting. You stole everything from me already. So 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 produced operating cash flow. As you know, you know the numbers, I'm not going to repeat it. There was a huge swing, positive $6.6 million and so on -- a $1 million and so on. But 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 and 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. So the difficulty is that we want to make sure that we are 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 off the top. What matters next is scale. Now if we are being serious about moving towards our $500 million of revenue, then we cannot allow working capital to become for me, a museum of unpaid invoices. We need disciplined contracting, delivery, acceptance, billing, collections, cash application and so on and so forth. So 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. So we're going to make sure that we are going to stick to our guns on every single month. But 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-plus million to $45,000. That's talking about next phase of our business evolution. So the simple answer is, as we scale forward, cash conversion will become key -- it 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. So for me, cash will be our standing ovation going forward, Barrett. Barrett Boone: Understood. 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? Jayesh Chandan: That's actually a really good question. I think, again, markets and many, many investor seems 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, 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. So for us, we're not just providing a room with very, very lovely blinking light. We are making sure that our products are sitting in 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. So when we sit with a government, telecom operator or enterprise and 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 competitors. So with Gorilla, it gives them capacity plus control. So 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 for 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 as the Gorilla edge, right, all pun intended. Because if you look at the full stack model across design, development, deployment and operations and so on and so forth, we're sitting right at the top of it. So 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, Barrett. I hope that answers your question. Operator: That concludes the question-and-answer session. I would like to turn the conference back over to management for any closing remarks. Jayesh Chandan: Thank you very much, Pamela. 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 in 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. So 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. So we're not talking about scale from a distance, we're actually building it. So 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. And 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. So 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. Operator: Thank you. And this concludes today's conference call. You may now disconnect. Before you buy stock in Gorilla Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Gorilla Technology Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $465,733!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,313,467!* Now, it’s worth noting Stock Advisor’s total average return is 985% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 29, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Gorilla (GRRR) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gorilla Technology Group Inc (NASDAQ:GRRR) reported a 55% year-on-year increase in revenue, reaching $28.2 million. The company turned operating cash flow positive, with net cash from operating activities at $6.6 million, marking a significant improvement from the previous year. Cash reserves increased to over $98.4 million, up 373% year-on-year, indicating strong financial health. The company is expanding into AI infrastructure, GPU infrastructure, and data centers, positioning itself for future growth. Gorilla Technology Group Inc (NASDAQ:GRRR) has secured contracts and is progressing with major infrastructure projects in India and Thailand, supporting significant revenue scale. The company reported an operating loss of $41.1 million, heavily impacted by $20.9 million in stock compensation and $18.9 million in foreign exchange losses. The transition to AI infrastructure and data centers is costly and may not yield immediate returns. Currency devaluation led to significant foreign exchange losses, affecting the financial results. The company faces challenges in securing GPU and other hardware due to global supply chain issues. There is a need for substantial capital to fund large-scale projects, which could impact financial stability if not managed carefully. Warning! GuruFocus has detected 5 Warning Signs with GRRR. Is GRRR fairly valued? Test your thesis with our free DCF calculator. Q: Could you talk about the planned timeline for the variety of HBC AI deals that you've announced, including the multiple phases, the three-year programs, and the 200-megawatt campus in Thailand, as well as any others that I might be missing? Particularly when each phase is expected to begin revenue generation. A: We have started our campus build-out in Cora, with construction expected to begin in the third to fourth quarter of this year. The YOTA project has already kicked off, with the first delivery expected by the end of July and subsequent phases completing by November. Revenue from these projects will start hitting our books from September onwards. Additionally, our co-location facility with New to DC is expected to generate revenue from the mid-third quarter or fourth quarter of this year. Q: You raised the lower end of your guidance from the start of the year. What was the main factor behind that? A: We base our guidance on contracted revenue rather than projections. The timelines for our projects are looking favorable, and we have more contracted revenue for the second and third quarters than initially planned. This confidence led us to raise the lower end of our guidance, while still being conservative with the upper end to account for any potential delays. Q: At the $200 million level, how much of that would be in the AI data center visual infrastructure category? A: Approximately 60% to 70% of the revenue at the $200 million level will come from the AI data center and visual infrastructure category. Our core business will continue to grow, but the AI segment is new and rapidly expanding. Q: On the Egypt deal, you're at full implementation. Is there recurring revenue that continues now? A: Yes, we have a five-year recurring revenue agreement post-completion. We expect to complete the project by mid to third quarter of next year. We have successfully delivered all project stages, and our customers have been satisfied, leading to a significant reduction in advance payment guarantees. Q: Can you talk about how the combination of infrastructure and AI products gives Gorilla leverage in winning infrastructure deals that perhaps a pure-play data center competitor couldn't? A: Gorilla offers more than just space, power, and cooling. We provide a full operating layer around the infrastructure, including site assessment, power planning, security, and managed services. Our products integrate security intelligence, network intelligence, and business intelligence, offering customers a comprehensive solution that goes beyond what a pure data center competitor can provide. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Gorilla Technology Group Inc.? Here are five stocks we like better. Revenue jumped 55% year over year to $28.2 million, and Gorilla posted positive operating cash flow of $6.6 million. Management said the quarter reflects a transition from turnaround to scale as AI infrastructure investments ramp. The company’s reported operating loss of about $41.1 million was said to be mostly driven by $20.9 million in stock-based compensation and $18.9 million in foreign exchange losses. Excluding those items, management said the underlying operating loss was roughly $1.1 million to $1.2 million. Gorilla raised full-year 2026 revenue guidance to $160 million-$200 million, with AI data center and digital infrastructure expected to provide 60%-70% of revenue at the high end. Management also outlined project timelines in India, Thailand, Indonesia and Egypt as it pursues project-level financing to fund expansion. Gorilla Technology Skyrockets 124% On Smart Government Contract Gorilla Technology Group (NASDAQ:GRRR) reported first-quarter revenue growth and positive operating cash flow while management sought to frame a large reported operating loss as primarily the result of stock-based compensation and foreign exchange impacts. Chairman and Chief Executive Officer Jay Chandan said the quarter marked a transition “from turnaround into scale,” as the company invests in AI infrastructure, GPU deployments, data centers and sovereign compute platforms. He said those investments created “noise on the P&L,” but argued the underlying business showed progress. → Voya Financial Grows Earnings Across All 3 Business Segments The company reported revenue of $28.2 million, up 55% year over year. Net cash from operating activities was $6.6 million, compared with cash used in operating activities of about $10.7 million in the prior-year period. Gorilla ended the quarter with $98.4 million in cash and cash equivalents, which Chandan said was up 373% year over year. Gorilla reported an operating loss of about $41.1 million. Chandan said the loss was “heavily distorted” by two items: $20.9 million of stock-based compensation and $18.9 million of foreign exchange losses. He said those two items accounted for more than 97% of the reported operating loss, and that excluding them, the company’s underlying operating loss was about $1.2 million. → SpaceX Gets the Attention, But These 4 Stocks Could Get the Returns Chief Financial Officer Bruce Bower similarly said there was a $1.1 million operating loss without the two revaluation items. He said Gorilla holds significant balances in Taiwan dollars, Thai baht and Egyptian pounds, and that geopolitical events in the first quarter contributed to adverse currency movements. Bower said those currencies had stabilized and that, absent significant geopolitical upheaval, the company should return to a “much more positive net income profile.” Bower also said collections improved during the quarter, with invoices collected from three large customers. He said restricted cash, which had been a large figure a year earlier, had fallen to “almost zero,” and that the company had $13.2 million of debt at quarter-end, leaving it with a strong net cash position. → Quantum Stocks Just Got a Lifeline—Who Benefits Most? Gorilla raised its full-year 2026 revenue guidance to a range of $160 million to $200 million. Bower said the company bases guidance on contracted revenue, not pipeline assumptions, and said timelines were improving relative to the company’s previous low-end forecast of $137 million. He said the second and third quarters were also shaping up with more contracted revenue than originally expected. In response to an analyst question, Chandan said that at the $200 million revenue level, approximately 60% to 70% would come from the AI data center and digital infrastructure category. He said Gorilla’s traditional security intelligence, network intelligence and smart city businesses remain part of the company, but management is now pursuing a broader opportunity in AI infrastructure. Chandan said he is personally focused on building a profitable $500 million revenue business next year, while acknowledging that doing so would require execution, discipline, capital and delivery. Management provided updates on several infrastructure projects during the question-and-answer portion of the call. India: Chandan said the Yotta project has started, with orders placed through Supermicro and its distributor in India. He said the first delivery is expected at the end of July, with first-phase revenue expected to begin in September. A larger second phase is expected to be delivered starting at the end of August, with deliveries continuing monthly through November and related revenue expected in October, November and December. Thailand: Gorilla is advancing its planned 200-megawatt AI data center campus in Korat. Chandan said the company has acquired strategic land and is working on water and power planning, with build-out expected to begin in the third or fourth quarter. He also said the company is pursuing additional opportunities in Thailand, including Rayong. Indonesia: Chandan said Gorilla recently signed co-location capacity with NeutraDC and expects revenue from that capacity to begin in the middle of the third quarter or in the fourth quarter. He said delivery schedules currently point to August or September. Egypt: Chandan said the company has moved into final implementation on its major Egypt project and that all advance payment guarantees associated with the project have been completed and released. He said the project is expected to have a five-year recurring revenue component after completion, which he expects sometime around the middle to third quarter of next year. Chandan said Gorilla is aiming for 100 to 150 megawatts of AI capacity by the end of this year. Earlier in the call, he said the company has a path toward more than 500 megawatts of AI infrastructure capacity by the end of 2028; later, he described a personal ambition to reach 500 megawatts by the end of 2027. Management said Gorilla is pursuing financing structures to support its infrastructure expansion while limiting shareholder dilution. Bower said the company has multiple term sheets either received or in documentation and expects the next financing announcement to be when a project-level financing has closed. Chandan said Gorilla has not relied on dilutive equity to fund the build-out to date. He said the company is working on vendor financing and has received term sheets in the range of approximately $500 million to $1 billion across vendor financing and debt structures. He also cited bank-led and debt financing proposals between $300 million and more than $700 million to $800 million, generally contemplated at the project or special purpose vehicle level rather than at the listed parent. Chandan said Gorilla is also building Gorilla Capital as a strategic funding platform intended to attract long-duration capital, including pension funds, endowments and institutional investors, for infrastructure assets with seven- to 10-year lives. Chandan said Gorilla has added more than 100 employees and more than 200 contractors across delivery, engineering, finance, compliance, operations, commercial functions and procurement. Bower said some contractor costs are reflected as project-level costs, contributing to lower gross margin in the quarter. Bower said other operating expenses, essentially the company’s SG&A line, were up 16% year over year and a little over $7 million in the first quarter. He said operating expenses would expand in coming quarters, but not as quickly as revenue. He also said higher-margin AI infrastructure revenue should support adjusted EBITDA margin expansion from last year’s roughly $19.5 million of adjusted EBITDA on $101 million of sales. Management emphasized that Gorilla is not becoming only a data center company. Chandan said the company’s products in security intelligence, network intelligence, SD-WAN, monitoring, managed services and operational systems are intended to differentiate its infrastructure offering from pure-play data center operators. “Revenue gets attention, but cash earns respect,” Chandan said, adding that cash conversion would remain a key metric as the company scales. Gorilla Technology Group is a Taiwan‐based provider of video computing and artificial intelligence solutions, offering software and hardware platforms for real‐time video analytics, facial recognition and edge‐computing applications. The company’s core business centers on the development of AI‐driven surveillance technologies that can be deployed in cloud, on-premise or hybrid environments. Gorilla Technology Group’s platforms are designed to process high-volume video data streams for security monitoring, operational optimization and business intelligence. The company’s flagship offerings include video management systems integrated with smart analytics modules, IoT gateways for edge-level data processing and AI engines for tasks such as people counting, license plate recognition and behavioral analysis. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Gorilla Technology Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.