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.
Cash Position and Investment Activity
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.
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.
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.
GPU Deployments and Data-Center Plans
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.
Raised Outlook and Financing Plans
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.
About Gorilla Technology Group (NASDAQ:GRRR)
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.
