Gorilla Technology Stock Falls in Pre-Market After FY2027 Revenue Guidance Misses Estimates

Gorilla Technology Group Inc. shares declined in pre-market trading Tuesday after the company issued FY2027 revenue guidance that came in below analyst expectations, despite first-half results beating estimates.

The company reported an adjusted loss of 58 cents per share for H1 2026, better than the consensus loss of $1.00. Revenue of $78.4 million surpassed the expected $43.64 million.

Revenue Growth Accelerates

H1 revenue nearly doubled year-over-year. Q2 revenue rose 138% year-over-year to $50.1 million, driven by AI infrastructure and data center projects.

Gorilla Technology also cited continued delivery of security intelligence, cyber intelligence, and smart city projects in Egypt, Taiwan, and Thailand.

The company initially targeted roughly $33 million in quarterly revenue, then raised the target to $44 million, ultimately exceeding the revised goal by about $6 million, or nearly 14%.

Operational Improvements

Operating losses narrowed to approximately $2.2 million in Q2, compared with $41.1 million in Q1. However, adjusted EBITDA swung to a loss of $14.6 million from a profit of $6.2 million in the year-ago period.

Cash burn declined 65% in H1 to $4.3 million, versus $12.5 million in the prior-year period. Cash increased by approximately $79.8 million during the period, reaching about $179.4 million at the end of June.

Data Center Expansion Continues

Gorilla Technology invested over $14.1 million in property and equipment during H1, bringing total investment to approximately $29.4 million.

The company said gross margins are under pressure from hardware deployment and project mobilization. However, management expects margins to improve as utilization rises and the revenue mix shifts toward computing, monitoring, and hosting services.

Gorilla Technology noted that Phase 1 testing for YOTA is complete, with delivery and deployment underway. Phase 2 equipment is in manufacturing, expected to be ready within 25 to 30 days.

In Batam, Indonesia, the company is targeting an additional 200 megawatts of capacity. Initial capacity is expected by mid-2027, with broader deployment planned for H2 2027.

In Nakhon Ratchasima, Thailand, land clearing is complete. Financing, GPU procurement, infrastructure work, and customer contracting are in progress.

Guidance Below Expectations

Gorilla Technology guided Q3 revenue in the range of $48 million to $50 million, above the prior outlook of $40 million to $40 million but still below the consensus estimate of $84.57 million.

For full-year 2026, the company expects revenue exceeding $200 million, above the consensus of $190.9 million and compared with the prior outlook of $137 million to $200 million.

For 2027, Gorilla Technology projects revenue between $450 million and $500 million, below the consensus estimate of $559.99 million.

Management did not provide FY2027 gross margin guidance. However, the company indicated gross margins could exceed 40%, with YOTA 1, YOTA 2, and Nutra DC averaging approximately 75%.

The company also said it plans to use additional project financing and debt to fund future expansion and capital expenditures.

GRRR Stock Performance

According to Tuesday data, Gorilla Technology shares fell 10.04% to $14.24 in pre-market trading.