Gorilla Technology Reports Q3 Earnings Below Expectations, Expands Pipeline
Earnings Performance: Gorilla Technology Group Inc. reported a third-quarter 2025 adjusted EPS of 24 cents, missing estimates by 7.7% and down 17.2% year-over-year, despite total revenues of $26.5 million, which exceeded expectations and marked a 32% increase from the previous year.
Operational Insights: Operating expenses rose by 39% to $9.5 million, while cost of revenue surged 57.3% to $16.6 million. Adjusted EBITDA increased by 21% to $6.8 million, indicating improved efficiency through better contracting and vendor alignment.
Future Projections: The company reiterated its 2025 revenue guidance of $100-$110 million and projected 2026 revenues between $137-$200 million, with a pipeline exceeding $7 billion driven by AI and GPU infrastructure opportunities.
Cash Position and Debt: Cash and cash equivalents reached $110.2 million, significantly up from the previous year, while total debt decreased to $15.1 million. The company anticipates positive operating cash flows for 2025, despite a net operating cash outflow of $15.1 million in the first nine months of the year.
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Gorilla Technology Targets Over $10 Billion in AI Infrastructure
- Significant Backlog: Gorilla Technology enters 2026 with a contracted backlog exceeding $100 million, indicating strong demand in AI infrastructure and data centers, which is expected to drive future revenue growth.
- Positive Market Reaction: Northland raised its price target on Gorilla Technology from $35 to $40 while maintaining an Outperform rating, reflecting analysts' optimism regarding the company's AI data center deployments.
- Strategic Deployment Plans: The company aims to deploy up to 100 megawatts of power by the end of 2026, indicating its intent to expand in public safety and infrastructure, particularly with initial progress on government projects in Taiwan.
- Revenue Guidance Reaffirmed: Gorilla Technology reiterated its revenue guidance for 2026 at $137 million to $200 million, showcasing confidence in its future performance and strategic positioning in the rapidly growing AI market.
La-Z-Boy and Gorilla Tech Featured as Zacks' Bull and Bear of the Day
La-Z-Boy as Bull of the Day: La-Z-Boy is highlighted as a strong buy due to its solid fundamentals, improved earnings estimates, and effective supply chain management, positioning it well for future growth amidst a volatile market.
Gorilla Technology as Bear of the Day: Gorilla Technology is identified as a strong sell, with analysts cutting earnings estimates significantly due to recent earnings misses and a lack of positive operational trends.
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