Gorilla Technology Group reported strong operational improvements during the first half of 2026, with revenue doubling year-over-year as the company completed key project milestones ahead of schedule. Operating performance benefited significantly from the absorption of share-based compensation expenses in the initial quarter, resulting in a substantial reduction in operating losses by the second quarter.
Management outlined a strategic capital deployment focused on revenue-generating infrastructure rather than interest income generation. The company is establishing computing capacity across five parallel site preparations, with megawatts of capacity representing contracted revenue streams. Current gross margin compression reflects a temporary revenue composition heavily weighted toward hardware and mobilization expenses as the company builds its operational base. The organization is targeting an expansion of gross margins toward 40% or higher in 2027, supported by GPU-as-a-Service projects expected to carry gross margins averaging 75%.
Full-year 2026 revenue guidance was increased to at least $200 million, with the fourth quarter projected to generate between $60 million and $70 million based on workload activation. For 2027, management established a target range of $450 million to $500 million in revenue, contingent on commissioning additional projects and migrating customer workloads. The guidance framework remains conservative, incorporating only revenue where GPU and server delivery schedules are firmly established.
Key execution risks identified include supply chain constraints affecting GPUs, CPUs, memory, and cabling components, though the company is implementing mitigation strategies by ordering equipment 5-8 weeks in advance. Securing adequate electricity supply and site readiness represent critical dependencies for meeting the planned acceleration schedule in the second half of 2026. The company is structuring future capital expenditures to be funded increasingly through project-specific financing facilities and debt rather than equity, with the objective of achieving operating cash flow breakeven for the full year. Contracts are structured on a take-or-pay basis, with pricing fixed-cost to protect margins against volatility.
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