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]

Core Viewpoint - Gorilla Technology, a company with two decades of experience, utilizes AI, edge computing, and deep learning to deliver technology solutions across various industries globally, primarily focusing on government, logistics, transport, retail, and hospitality [1] Group 1: Company Overview - Gorilla Technology has been operational for 20 years, indicating a long-standing presence in the technology sector [1] - The company specializes in leveraging advanced technologies such as AI and deep learning to enhance its service offerings [1] Group 2: Industry Focus - The primary industries served by Gorilla Technology include government, logistics, transport, retail, and hospitality, showcasing a diverse client base [1] - The global reach of the company's services highlights its capability to cater to various market needs across different regions [1]

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]

Gorilla Technology Group (GRRR) Update Summary Company Overview - **Company**: Gorilla Technology Group (GRRR) - **Date of Briefing**: May 14, 2025 Financial Performance - **2024 Revenue**: $74.7 million, up from $64.7 million in 2023 [2] - **Adjusted EBITDA**: $20.6 million, indicating strong operational performance [3] - **Adjusted Net Income**: $16 million after tax, reflecting profitability improvements [3] - **Debt Reduction**: Decreased from $21 million in 2023 to $19.6 million in 2024 [4] - **Cash Position**: Ended 2024 with $37.5 million in cash, split into $21.7 million unrestricted and $15.8 million restricted [4] - **Gross Margin**: Maintained at 50%, showcasing effective cost management [5] - **Material Weakness Clause**: No longer present in 2024, indicating improved internal controls and compliance [6] Strategic Initiatives - **Global Expansion**: Focused on structured and strategic growth in Southeast Asia and South America [15][18] - **AI Infrastructure Projects**: Engaged in large-scale projects including smart policing and energy grids [16][17] - **Partnerships**: Collaborating with governments to integrate AI into national policies, moving beyond mere technology sales [18][20] - **US Market Strategy**: Building credibility and capability through partnerships with major firms like Cisco and Intel [22][25] Future Outlook - **2025 Revenue Guidance**: Projected between $100 million and $110 million, based on signed contracts and active deployments [34][41] - **EBITDA Margin Expectations**: Anticipated between 20% and 25% for 2025 [34] - **Cash Collection**: Expected to increase cash balance by $10 million to $30 million by Q3 2025 [33] - **Long-term Contracts**: Focus on securing longer-term, recurring revenue contracts while optimizing profitability [39] Key Challenges and Considerations - **Debt Management**: Current debt is manageable with an average interest rate below 3%, allowing for strategic repayment [31] - **Operational Leverage**: Ability to scale operations without proportionate increases in headcount, particularly in low-cost regions [36][37] - **Market Competition**: Positioning as a strategic partner rather than a typical SaaS provider to differentiate from competitors [20][21] Conclusion - Gorilla Technology Group is demonstrating strong financial performance and strategic growth in AI infrastructure, with a focus on long-term partnerships and operational efficiency. The company is well-positioned for continued expansion in both domestic and international markets, particularly in sectors requiring advanced technology solutions.