Gorilla Technology Group Inc. reported third‑quarter 2025 results that surpassed revenue expectations and marked a turnaround in profitability. Total revenue rose 32% year‑over‑year to $26.5 million, driven by robust demand for AI‑infrastructure solutions in public‑safety and enterprise markets. Operating income flipped to $0.4 million from an operating loss of $6.0 million in Q3 2024, while net loss narrowed to $30,000. Adjusted earnings per share were $0.24 versus consensus estimates of $0.26, and adjusted EBITDA climbed to $6.8 million, up 21% from the prior year.
The revenue beat was largely a result of the company’s expanding AI‑edge platform and the successful execution of the $1.4 billion Freyr Singapore data‑center contract, announced in September 2025. The contract’s initial phase of $300 million added a new high‑margin revenue stream, while existing public‑safety deployments continued to grow at double‑digit rates. Compared with Q3 2024, where revenue was $20.3 million, the 32% increase reflects both new contract wins and a higher mix of high‑margin AI services.
Margin performance improved as Gorilla disciplined operating expenses and leveraged scale. The shift from an operating loss to a modest profit of $0.4 million was driven by a 15% reduction in cost of revenue and tighter spend on non‑core initiatives. However, adjusted EPS fell short of consensus because the company incurred a one‑time restructuring charge of $0.02 million and higher marketing spend to support the Freyr rollout. The net effect was a near‑breakeven net loss of $30,000, a dramatic improvement from the $7.8 million loss reported in Q3 2024.
Management reiterated its full‑year outlook, maintaining FY 2025 revenue guidance of $100 million to $110 million and raising FY 2026 revenue guidance to $137 million to $200 million. The guidance reflects confidence in the pipeline, which exceeds $7 billion, and the expectation that the Freyr contract will generate recurring revenue over the next three years. The company also highlighted a strengthened balance sheet, with unrestricted cash above $119 million and debt reduced to $15.1 million, positioning it to invest in high‑return AI initiatives.
CEO Jayesh Chandan emphasized the company’s transition from a “project shop” to a “sovereign AI operator.” He noted that “Q3 marks the strongest quarter in Gorilla’s history with revenue ahead of expectations, operating profit firmly positive and the bottom line at breakeven.” CFO Bruce Bower added that the improved capital structure “now a strength, not a constraint” will enable continued investment in AI‑edge and security convergence platforms.
The market reacted positively to the results, citing the revenue beat, operating income turnaround, and robust cash position as key drivers. Analysts highlighted the company’s ability to secure large, long‑term contracts and the strength of its pipeline as evidence of sustainable growth. Headwinds remain in the form of semiconductor shortages and supply‑chain constraints that could affect delivery timelines for 2026 guidance, but the company’s diversified geographic footprint and focus on high‑margin AI services mitigate these risks.
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