Core Viewpoint - Gorilla Technology Group Inc. has entered into a definitive agreement to acquire CNS and its subsidiary CANS, enhancing its capabilities in AI, cybersecurity, and customer engagement infrastructure, with the transaction expected to close in summer 2025 [1][2][4] Company Expansion - The acquisition significantly enhances Gorilla's product portfolio and opens new monetization opportunities through a mobile-first AI-powered customer engagement platform [2][4] - This move marks a strategic expansion for Gorilla in Thailand and the broader ASEAN region, focusing on digital infrastructure and AI deployments [2][4] Technology and Market Position - CNS and CANS are recognized for their scalable, low-latency AI systems in video analytics and network defense, with a client base of over 200 businesses across all 77 Thai provinces [3][5] - The integration of CNS and CANS's products will support Gorilla's rollout of smart infrastructure projects and enhance its global platform [5] Market Opportunity - The Edge AI, Video Analytics, and Cybersecurity market in Southeast Asia is projected to exceed $6.8 billion by 2027, driven by government investments in smart cities and digital infrastructure [6] - The global market for contact and customer engagement software is expected to reach $173.9 billion by 2032, growing at a CAGR of 21.2 percent, positioning Gorilla to capitalize on this growth [7]

Core Insights - Gorilla Technology Group Inc. (GRRR) shares surged 34.1% following the release of its Q1 2025 earnings, driven by significant contract wins, global expansion, and effective financial management [1][2]. Financial Performance - Q1 earnings were reported at 23 cents per share, surpassing the Zacks Consensus Estimate of 1 cent and improving from a loss of $1.47 in the same quarter last year [3]. - Revenues increased by 109% year-over-year but fell short of the Zacks Consensus Estimate by 8.7% [3]. - The company reduced its debt to $18.4 million by the end of Q1, down from $21.4 million at the end of 2024, and further decreased it to $17 million post-quarter [4]. Guidance and Projections - Gorilla Technology expects 2025 revenues to be between $100 million and $110 million, with EBITDA projected at $20 million to $25 million and a gross margin of 40-45% [5]. - The company anticipates a net profit of $15 million to $20 million for 2025, with a backlog of $93 million, and estimates a 2026 backlog of $70 million [5]. Growth Drivers - The company is experiencing rapid expansion across various regions, including the U.S., MENA, Southeast & East Asia, South America, and the U.K., which is enhancing its contract base [8]. - Gorilla Technology is transitioning from short-cycle deals to multi-year, recurring contracts, particularly with government and enterprise clients [8]. - The company is increasing its workforce, aiming to grow from over 200 full-time employees and 100 contractors to 300-400 full-time employees and 100-200 contractors by the end of 2025 [9]. Market Position and Valuation - The stock has gained 39.7% year-to-date, outperforming the industry average growth of 1.5% [14]. - Gorilla Technology is trading at a forward P/S ratio of 4.15X, significantly higher than its two-year median of 1.35X and the industry average of 2.86X, indicating strong investor confidence [17]. Strategic Initiatives - The company is involved in the ONE AMAZON project, focusing on AI-driven environmental monitoring and creating a new financial framework for valuing natural capital [10][11]. - Gorilla Technology is also building a data economy linked to investments in ecotourism, renewable energy, and biodiversity credits, with 25% of funds raised allocated to technology deployment [12]. Cash Flow and Receivables - Q1 cash flow was affected by an $18.2 million unbilled receivable, but cash collection is improving, with $7 million already recovered in Q2 [13].

Core Viewpoint - Gorilla Technology Group Inc. (GRRR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Gorilla Technology Group suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - The upgrade to Zacks Rank 2 places Gorilla Technology Group in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - Analysts have raised their earnings estimates for Gorilla Technology Group significantly, with the Zacks Consensus Estimate increasing by 171.4% over the past three months [8]. - The expected earnings per share for the fiscal year ending December 2025 is projected at $0.76, showing no year-over-year change [8].

Group 1 - Gorilla Technology Group (NASDAQ: GRRR) exemplifies the disconnect between ambitious claims and actual performance in the emerging AI infrastructure sector [1] - The company has positioned itself as a significant player in the AI infrastructure market, but its follow-through has been inconsistent [1] Group 2 - The analysis focuses on small- to mid-cap companies, which are often overlooked by investors, while also occasionally addressing large-cap companies for a broader market perspective [1]

Financial Data and Key Metrics Changes - Revenue for the quarter reached $18.3 million, reflecting a 109% year-on-year growth [8] - Adjusted EBITDA was $5.16 million, a 48% increase year-on-year [8] - Adjusted net income stood at $4.47 million, marking a 46.7% increase [8] - Total cash reserves, both restricted and unrestricted, closed the quarter at $33.8 million, while debt decreased from over $20 million to $18.4 million [9][10] Business Line Data and Key Metrics Changes - The company is focusing on smart infrastructure, AI security, and national digital systems, with significant progress in these areas [5] - The company has secured national infrastructure contracts and is moving from negotiation to execution phase [6] Market Data and Key Metrics Changes - The company is expanding its operations across the United States, Latin America, Southeast Asia, and East Asia [4] - The backlog for 2025 is projected at $93 million, primarily from existing contracts [44] Company Strategy and Development Direction - The company is focused on converting its pipeline into revenue and is engaged in multiyear contracts, with an average duration of seven to ten years [40] - The company is pursuing strategic acquisitions in Southeast Asia to enhance operational depth and local scale [43] - The company aims for profitable growth while maintaining financial discipline [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to tackle new projects without needing to raise outside funding [17] - The company anticipates a strong performance in 2026, with a backlog of $70 million already shaping up [14] Other Important Information - The company has a $10 million share buyback program, with $4.6 million remaining capacity [11] - The One Amazon partnership involves a total commitment of $5 million, with ongoing discussions for further investments [12][61] Q&A Session Summary Question: Update on the Royal Thai tourist police contract - Management confirmed that the project has exceeded expectations, with a signed agreement expected to total between $500 million to $550 million over five to six years [25][21] Question: Progress on the $400 million smart education contracts - Management reported being in late-stage negotiations for two education projects, including an additional $80 million for smart cloud infrastructure [28] Question: Steps to sustain growth - Management outlined key steps including converting pipeline into revenue, entering multiyear contracts, and pursuing strategic acquisitions [40][41] Question: Expectations for sequential revenue growth and gross margins - Management indicated that while they do not guide specific quarterly growth, the second half of the year is expected to be stronger than the first half [50] Question: Details on the Amazon contract investment - Management clarified that the investment is part of a SAFE agreement, which guarantees equity in the future [58][61]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 reached $18.3 million, reflecting a 109% year-on-year growth [7] - Adjusted EBITDA was $5.16 million, a 48% increase year-on-year, while adjusted net income was $4.47 million, marking a 46.7% increase [7] - Total cash reserves at the end of the quarter were $33.8 million, with debt reduced from over $20 million to $18.4 million, and further reduced to $17 million post-quarter [8][9] Business Line Data and Key Metrics Changes - The company is focusing on smart infrastructure, AI security, and national digital systems, with significant progress in securing contracts across various sectors [5] - The company has a $5 billion pipeline with real deals being executed across multiple regions, indicating strong operational execution [6][14] Market Data and Key Metrics Changes - The company is expanding its presence in the United States, Latin America, Southeast Asia, and East Asia, transitioning from negotiation to execution of contracts [4][5] - The backlog for 2025 is projected at $93 million, primarily from existing contracts, while the backlog for 2026 is at $70 million [48] Company Strategy and Development Direction - The company is committed to profitable growth, focusing on long-term contracts averaging 7 to 10 years, and is actively pursuing strategic acquisitions in Southeast Asia [44][47] - The company is also engaged in a significant partnership with One Amazon, aimed at environmental monitoring and creating a new financial framework for valuing natural capital [62][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to convert momentum into lasting infrastructure and long-term impact, emphasizing the importance of operational execution [81] - The company anticipates a strong performance in 2026, with a focus on scaling operations and expanding partnerships [6][14] Other Important Information - The company has authorized a $10 million share buyback program, with $5.4 million spent in the last twelve months [11] - The company is maintaining a strong balance sheet, with a focus on cash flow and reducing debt [16] Q&A Session Summary Question: Update on the Royal Thai tourist police contract - The Royal Thai project has exceeded expectations, with a signed purchase order expected to be between $50 million to $60 million, and a total project size anticipated to be $500 million to $550 million over five to six years [27][24] Question: Progress on the $400 million smart education contracts - The company is in late-stage negotiations for two education projects, including an additional $80 million for smart cloud infrastructure [32] Question: Steps to sustain growth - The company is focusing on converting pipeline into revenue, entering multiyear contracts, exploring new markets, maintaining financial discipline, and pursuing strategic acquisitions [41][44][46] Question: Current state of the pipeline and backlog - The backlog for 2025 is $93 million, primarily from existing clients, while the backlog for 2026 is $70 million, with several new contracts expected to start [48] Question: Expectations for sequential revenue growth and gross margins - The company does not provide quarterly guidance but expects stronger performance in the second half of the year, with gross margins targeted at 40% to 45% for the year [52][53] Question: Details on the Amazon contract investment - The company has invested $5 million in a SAFE agreement with One Amazon, which is focused on environmental monitoring and creating a new financial framework [58][62]

Exhibit 99.1 Gorilla Technology Reports First Quarter 2025: Profitability, Global Execution and Momentum Drive 109% Revenue Increase —Q1 2025 revenue surged to $18.3 million, marking over 109% year-on-year growth. — Financials GORILLA TECHNOLOGY GROUP INC. AND SUBSIDIARIES UNAUDITED CONDENSED QUARTERLY CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2025 AND DECEMBER 31, 2024 (Expressed in United States dollars) | | March 31, | December 31, | | --- | --- | --- | | | 2025 | 2024 | | Items | (Unaudited) | (Audite ...

Company Overview - Gorilla Technology Group Inc. is headquartered in London, U.K. and operates as a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence, and IoT technology [3] - The company offers a diverse range of solutions including Smart City, Network, Video, Security Convergence, and IoT across various sectors such as Government & Public Services, Manufacturing, Telecom, Retail, Transportation & Logistics, Healthcare, and Education, utilizing AI and Deep Learning Technologies [3] Upcoming Financial Results - The company will hold a conference call on June 18th, 2025, at 4:30 p.m. Eastern time to discuss its financial results for the first quarter of fiscal year 2025, which ended on March 31, 2025 [1][2] - Financial results will be released in a press release prior to the call [1] Technological Expertise - Gorilla Technology specializes in enhancing urban operations, security, and resilience through innovative products that leverage AI for intelligent video surveillance, facial recognition, license plate recognition, edge computing, post-event analytics, and advanced cybersecurity technologies [4] - The integration of these AI-driven technologies aims to empower Smart Cities, improving efficiency, safety, and cybersecurity measures, thereby enhancing the quality of life for residents [4]

Gorilla Technology (NASDAQ: GRRR ), a two-decade old entity that leverages AI, edge computing, and deep learning, to provide technology solutions for clients around various industries (mainly government, logistics, transport, retail, hospitality, etc.) around the globe (although its servicing roots areAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article mys ...

Core Insights - Gorilla Technology Group Inc. (GRRR) shares increased by 14.6% following announcements of share repurchases and insider ownership updates, indicating renewed investor confidence driven by strategic corporate actions and improving fundamentals [1][2] - The company has executed over $1.8 million in share repurchases in April and May, contributing to a total buyback of $5.4 million [1][2] - Insider ownership has risen to nearly 20% due to additional purchases by directors and officers, reflecting confidence from corporate leadership [2] Financial Performance - Gorilla reported a 15.4% year-over-year revenue growth to $74.67 million in 2024, attributed to strong sales growth and effective execution [3] - The company is undergoing a business transformation plan focusing on high-margin segments such as AI-based video analytics and cybersecurity solutions, with significant reductions in selling and marketing costs, R&D costs, and G&A expenses [3] - The Zacks Consensus Estimate for Gorilla's EPS in 2025 and 2026 suggests improvements of 112.4% and 32.9% year-over-year, respectively, with revenue estimates indicating increases of 54.6% and 26% for the same periods [4] Future Outlook - Gorilla plans to report its first-quarter 2025 results in June, with EPS estimated at $0.01 and revenues at $20 million [5] - The company expects gross margins for 2025 to be at the top end of the 40-50% range and anticipates EBITDA margins of 20-25% for the full year [5] - Gorilla has a backlog of $93 million for 2025 and $67 million for 2026, with over $2 billion in signed contracts and an additional $4.6 billion in late-stage contracts [13] Market Position - Over the past year, Gorilla's shares have surged by 225.9%, outperforming the industry average of 37.2% [6] - The company trades at a forward P/S of 2.97X, which is in line with the industry average, while competitors like Allot and AppLovin trade at higher multiples [9] - Gorilla operates in high-growth segments such as AI, IoT, and cybersecurity, which are expected to expand rapidly, supported by increasing global investments in digital security and automation [11][12] Financial Health - As of the end of 2024, Gorilla's total cash position was $37.5 million, with outstanding debt at $21.4 million, and plans to reduce debt by selling property in Taipei [14]