Gorilla Technology Group Inc. Q2 FY2025 earnings call

• Revenue surged to $39.3 million in the first half, a 90% Y/Y increase. - Reduced debt to $18.1 million, with cash at $26.1 million and an additional $105 million equity raise in July. - Signed 3 new projects in the last 30 days, including 2 in Taiwan and 1 in the UK. - Shifted from a seasonal milestone-heavy cycle to multiyear contracts for steady revenue and milestone upsides. - Profitability remains a core discipline, with adjusted EBITDA and net income at $5.7 million on a normalized basis.

In the first half, Gorilla Technology achieved about $39.3 million in revenue, a 90-plus percent year-on-year increase. On a normalized basis, adjusted EBITDA and adjusted net income both came in at approximately $5.7 million. Revenue contribution is from AI-driven security and intelligence infrastructure solutions across multiple geographies, with new projects in Taiwan and the UK strengthening the recurring revenue base.

• Full year revenue guidance is $100 million to $110 million. - Target EBITDA margins of 20% plus and operating cash flow positive. - Backlog remains around $59 million from now until year-end. - Equity raise of $105 million for funding large projects, with focus on debt and project level funding for future projects.

• Execution slips in contract implementation. - Risks associated with sovereign, procurement, and payment protection in dealing with government contracts. - Volatility in revenue recognition due to timing of hardware/service recognition for government contracts.

Q: Can you highlight main revenue drivers and key to second half?

A: First half revenue drivers included work in Taiwan. Second half key regions are Taiwan, Thailand, and Middle East. For 2026, mix is even between US and Southeast Asia.

Q: Detail on ONE AMAZON project rollout?

A: Official showcase at New York Climate Week in Sept 2025, tokenization completion and launch at COP30 in Nov 2025. Working on sensor technology, satellite mapping, blockchain and tokenization, and cost per hectare analysis.

Q: Update on MOUs and contract signing?

A: Wan Hai Port and ADE MOUs closed. Projects like Thai Police have completed proof of concepts. Remaining contracts in final stages. $50M-$60M project in Thailand remains on track.

Q: Uses of capital raise?

A: Raised $105M for large projects, including covering bid bonds. Looking at debt and strategic funding, with potential M&A in US and investments in R&D products.

Q: Gross margin stabilization?

A: Gross margins affected by revenue mix. Expected to move towards 40% for the year with current contract mix, moving to more predictable and sustainable revenue models from multiyear contracts.