Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 24, 2026 · Beat 2 of last 7 quarters
Gorilla Technology Group Inc. reported Q2 FY2026 revenue of $50M, a beat of 29.5% against consensus, and EPS of $-0.40, a miss of 1300.1%.
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Gorilla's rapid revenue growth and raised guidance underscore accelerating demand for GPU-as-a-Service and AI data center capacity in emerging markets like India and Southeast Asia. The company's heavy capital deployment into infrastructure and project financing signals a broader trend of specialized players building out AI compute capacity to meet sovereign and enterprise demand.
Gorilla reported Q2 FY2026 revenue of $50.1 million, exceeding its upgraded guidance of $44 million by ~14%, and H1 revenue of $78.4 million, up 99% year-over-year. The operating loss narrowed to $2.2 million in Q2 from $41.1 million in Q1, driven by a significant reduction in share-based compensation. Cash increased to $179.4 million, supported by convertible debt raises and customer collections. The company invested $14.1 million in property and equipment during H1, reflecting deployment of GPU infrastructure for Yotta and NeutraDC projects.
Management raised FY2026 revenue guidance to at least $200 million, up from the prior range of $137 million to $200 million, and introduced FY2027 revenue targets of $450 million to $500 million. The guidance is based on contracted revenue with firm delivery schedules, including Yotta Phase 1 and Phase 2 (first batch) and the first 300 servers of NeutraDC. Management expects gross margins to expand significantly as GPU-as-a-Service projects go live, with project-level gross margins of 75% or more and overall gross margins potentially exceeding 40% in 2027. They plan to fund remaining equipment purchases through project finance facilities and expect operating cash flow to reach breakeven for the full year, with large customer collections of over $20 million in September and October. The tone was confident, emphasizing execution and the deliberate deployment of capital into contracted, revenue-generating infrastructure.
“Now Q2 revenues reached well over $50.1 million, which was a net increase of roughly 78% from Q1 and 138% from Q2 last year.”
on Revenue growth
“As the infrastructure is commissioned, customer workloads migrate, utilization increases, and we expect the revenue mix to broaden towards compute, monitoring, managed services and all other associated services.”
on Margin expansion
“We try to be underpromising and overdelivering to the market. We try to trade only on – based on what will not disappoint you.”
on Guidance philosophy
For 2027, what is on the delivery schedule, which phases will be active? And which programs? Is it all of the first 2 phases of Yotta and the first of NeutraDC?
Bruce Bower detailed that FY2027 guidance includes Yotta Phase 1 ($100M annualized), Yotta Phase 2 first batch ($250M incremental), and the first 300 servers of NeutraDC ($75-80M incremental). Not included are the remaining 700 servers and second phase of NeutraDC, and the second part of Yotta Phase 2, pending firm delivery schedules. Jay Chandan added that Yotta 1 and Yotta 2 Phase 1 will be complete by end of November, and the first 300 NeutraDC servers will go operational by end of November/early December.
I was curious about the terminal value of the GPUs. Are you looking to sell them after 5 years? If so, what would that residual value be? And then also alternatively, is there an opportunity to keep operating the GPUs for a sixth year?
Jay Chandan noted that current residual values for B300/GB300s are around 20-25% after 5 years, but that could change. Gorilla intends to continue operating GPUs beyond the initial term, with potential for inference and sovereign AI demand. Bruce Bower added that they depreciate over 5 years to match contract terms, but other players run A100s for 7-9 years, suggesting a longer useful life.
Previously, you referenced hiring across Thailand, India, Taiwan, et cetera, targeting 1,000-plus people. What's the current headcount? And what's the monthly OpEx run rate exiting Q2?
Jay Chandan said current headcount is about 300 full-time plus 300-350 contractors, with plans to reach ~2,000 by mid-2027. Bruce Bower stated SG&A is about $2.7 million per month, expected to rise to $38-40 million annualized by end of next year, noting lower costs in regions like India and Thailand.