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Gorilla Surges 34% Since Q1 Earnings: Should You Buy GRRR Now?
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Key Takeaways
Gorilla Technology's Q1 EPS of 23 cents beat estimates, swinging from a $1.47 loss last year.
GRRR expects 2025 revenues of $100-$110M and EBITDA of $20-$25M with a 40-45% gross margin.
Gorilla's pipeline tops $5B as it shifts to multi-year recurring contracts and scales global operations.
Shares of Gorilla Technology Group Inc. (GRRR - Free Report) have experienced a remarkable 34.1% surge in its stock price since reporting its first-quarter 2025 earnings last week on June 18. Its results were driven by high-impact contract wins, rapid global expansion and disciplined financial management.
The company continues to offer strong guidance for 2025 and provides some visibility towards 2026 and beyond. This raises the question: Should investors continue buying at these levels, or is it time to hold off?
Before answering that, we need to take a quick look at its 1Q25 performance and its guidance for the year.
Major Takeaways From Gorilla Technology’s Q1 Earnings
First quarter earnings of 23 cents per share beat the Zacks Consensus Estimate of a penny and improved from a loss of $1.47 in the year-ago period. Revenues surged 109% year over year but missed the Zacks Consensus Estimate by 8.7%.
It deleveraged its balance sheet by reducing debt to $18.4 million at first-quarter end, down from $21.4 million at year-end 2024. Following the close of the quarter, it further reduced the figure to $17 million. Meanwhile, its cash and cash equivalents were at $20.8 million at first-quarter end.
It still expects revenues for 2025 within $100-$110 million and EBITDA within $20-$25 million, with a gross margin of 40-45%. It projects a net profit of $15-$20 million for the year, along with a backlog of $93 million. It further estimates the 2026 backlog to be $70 million for now.
Reflecting high demand and strong potential, Gorilla’s pipeline and qualified leads are now more than $5???billion. This is down from the previous figure of $6 billion as its MOU with the Provincial Electricity Authority in Thailand has moved into the proof-of-concept stage.
Gorilla Technology’s Strong Estimates for 2025 & 2026
Looking ahead, the Zacks Consensus Estimate for Gorilla Technology’s EPS points to an improvement of 112.4% in 2025 and 43.4% in 2026. Revenues are expected to rise 33.9% and 26%, respectively. The stock has seen one upward earnings estimate revision for 2026 over the past week, against no downward movement.
Gorilla Technology’s Growth Drivers
Its rapid expansion across the United States, MENA, Southeast & East Asia, South America and the United Kingdom is fueling its contract base and performance. The company shifted from short-cycle deals to multi-year, recurring contracts across government and enterprise customers. It expects that the MOUs and POCs will begin converting into significant revenue in the coming days.
The company is aggressively increasing its headcount to support its execution. From more than 200 full-time employees and 100 contractors currently, it expects to reach 300-400 full-time employees and 100-200 contractors by 2025-end. Hiring has increased in India, Egypt and Thailand as the company is scaling its operations.
Its high-margin business is a major positive. The company targets the gross margin to move higher toward the 45-50% range in the next two to three years.
GRRR is deeply involved in the ONE AMAZON project, a 30-year initiative focused on real-time AI-driven environmental monitoring of the Amazon Basin. The project aims to create a new financial framework for valuing natural capital, going beyond environmental data collection. Gorilla is working with top partners like AECOM, The Goldman Sachs Group, Inc. (GS - Free Report) , and others to set a global standard for climate-aligned finance. Key plans include deploying or acquiring a constellation of low-orbit satellites to control and monetize its own environmental data, reducing reliance on third-party services.
Additionally, Gorilla is helping build a data economy tied to investments in ecotourism, renewable energy, agroforestry and biodiversity credits. Notably, 25% of every dollar raised in the project will fund Gorilla’s technology deployment, ensuring recurring long-term revenue and increasing the intrinsic value of the associated token.
Over the past year, the company bought back $5.4 million worth of shares and has $4.6 million left in its repurchase authorization.
Gorilla Technology’s first quarter cash flow was impacted by an $18.2 million unbilled receivable, as the company delivered significant work and goods without invoicing during the quarter. However, cash collection is improving; about $7 million has already been recovered in the second quarter, including $5 million from receivables and $2 million from a guarantee release. Management expects to issue new invoices and collect additional receivables by the end of June or in July, signaling that cash flow is trending positively for the remainder of 2025.
YTD Price Performance & Valuation
Gorilla Technology stock has gained 39.7% over the year-to-date period, outperforming the industry’s 1.5% growth. Companies like Palantir Technologies Inc. (PLTR - Free Report) and Cloudflare, Inc. (NET - Free Report) rose even higher during this time.
YTD Price Performance – GRRR, PLTR, NET & Industry
Image Source: Zacks Investment Research
From a valuation standpoint, Gorilla Technology is trading at a forward P/S ratio of 4.15X, higher than its two-year median of 1.35X and above the industry average of 2.86X, indicating investor confidence. In comparison, Palantir Technologies trades at 72.90X and Cloudflare at 26.40X.
Valuation Comparison – GRRR, PLTR, NET
Image Source: Zacks Investment Research
Final Verdict: Buy Gorilla Technology for Now
Gorilla Technology’s strong start to 2025, driven by large-scale global contracts, expansion into strategic projects like ONE AMAZON, and improving cash flow potential, highlights its growing influence in the AI, IoT, and environmental intelligence markets. With a robust pipeline exceeding $5 billion and a shift toward multi-year recurring revenue models, GRRR is well-positioned for sustained growth. Backed by an improving financial profile, margin expansion, and increasing visibility into future earnings, Gorilla Technology currently carries a Zacks Rank #2 (Buy), reflecting its solid prospects.
Image: Bigstock
Gorilla Surges 34% Since Q1 Earnings: Should You Buy GRRR Now?
Key Takeaways
Shares of Gorilla Technology Group Inc. (GRRR - Free Report) have experienced a remarkable 34.1% surge in its stock price since reporting its first-quarter 2025 earnings last week on June 18. Its results were driven by high-impact contract wins, rapid global expansion and disciplined financial management.
The company continues to offer strong guidance for 2025 and provides some visibility towards 2026 and beyond. This raises the question: Should investors continue buying at these levels, or is it time to hold off?
Before answering that, we need to take a quick look at its 1Q25 performance and its guidance for the year.
Major Takeaways From Gorilla Technology’s Q1 Earnings
First quarter earnings of 23 cents per share beat the Zacks Consensus Estimate of a penny and improved from a loss of $1.47 in the year-ago period. Revenues surged 109% year over year but missed the Zacks Consensus Estimate by 8.7%.
It deleveraged its balance sheet by reducing debt to $18.4 million at first-quarter end, down from $21.4 million at year-end 2024. Following the close of the quarter, it further reduced the figure to $17 million. Meanwhile, its cash and cash equivalents were at $20.8 million at first-quarter end.
It still expects revenues for 2025 within $100-$110 million and EBITDA within $20-$25 million, with a gross margin of 40-45%. It projects a net profit of $15-$20 million for the year, along with a backlog of $93 million. It further estimates the 2026 backlog to be $70 million for now.
Reflecting high demand and strong potential, Gorilla’s pipeline and qualified leads are now more than $5???billion. This is down from the previous figure of $6 billion as its MOU with the Provincial Electricity Authority in Thailand has moved into the proof-of-concept stage.
Gorilla Technology’s Strong Estimates for 2025 & 2026
Looking ahead, the Zacks Consensus Estimate for Gorilla Technology’s EPS points to an improvement of 112.4% in 2025 and 43.4% in 2026. Revenues are expected to rise 33.9% and 26%, respectively. The stock has seen one upward earnings estimate revision for 2026 over the past week, against no downward movement.
Gorilla Technology’s Growth Drivers
Its rapid expansion across the United States, MENA, Southeast & East Asia, South America and the United Kingdom is fueling its contract base and performance. The company shifted from short-cycle deals to multi-year, recurring contracts across government and enterprise customers. It expects that the MOUs and POCs will begin converting into significant revenue in the coming days.
The company is aggressively increasing its headcount to support its execution. From more than 200 full-time employees and 100 contractors currently, it expects to reach 300-400 full-time employees and 100-200 contractors by 2025-end. Hiring has increased in India, Egypt and Thailand as the company is scaling its operations.
Its high-margin business is a major positive. The company targets the gross margin to move higher toward the 45-50% range in the next two to three years.
GRRR is deeply involved in the ONE AMAZON project, a 30-year initiative focused on real-time AI-driven environmental monitoring of the Amazon Basin. The project aims to create a new financial framework for valuing natural capital, going beyond environmental data collection. Gorilla is working with top partners like AECOM, The Goldman Sachs Group, Inc. (GS - Free Report) , and others to set a global standard for climate-aligned finance. Key plans include deploying or acquiring a constellation of low-orbit satellites to control and monetize its own environmental data, reducing reliance on third-party services.
Additionally, Gorilla is helping build a data economy tied to investments in ecotourism, renewable energy, agroforestry and biodiversity credits. Notably, 25% of every dollar raised in the project will fund Gorilla’s technology deployment, ensuring recurring long-term revenue and increasing the intrinsic value of the associated token.
Over the past year, the company bought back $5.4 million worth of shares and has $4.6 million left in its repurchase authorization.
Gorilla Technology’s first quarter cash flow was impacted by an $18.2 million unbilled receivable, as the company delivered significant work and goods without invoicing during the quarter. However, cash collection is improving; about $7 million has already been recovered in the second quarter, including $5 million from receivables and $2 million from a guarantee release. Management expects to issue new invoices and collect additional receivables by the end of June or in July, signaling that cash flow is trending positively for the remainder of 2025.
YTD Price Performance & Valuation
Gorilla Technology stock has gained 39.7% over the year-to-date period, outperforming the industry’s 1.5% growth. Companies like Palantir Technologies Inc. (PLTR - Free Report) and Cloudflare, Inc. (NET - Free Report) rose even higher during this time.
YTD Price Performance – GRRR, PLTR, NET & Industry
From a valuation standpoint, Gorilla Technology is trading at a forward P/S ratio of 4.15X, higher than its two-year median of 1.35X and above the industry average of 2.86X, indicating investor confidence. In comparison, Palantir Technologies trades at 72.90X and Cloudflare at 26.40X.
Valuation Comparison – GRRR, PLTR, NET
Final Verdict: Buy Gorilla Technology for Now
Gorilla Technology’s strong start to 2025, driven by large-scale global contracts, expansion into strategic projects like ONE AMAZON, and improving cash flow potential, highlights its growing influence in the AI, IoT, and environmental intelligence markets. With a robust pipeline exceeding $5 billion and a shift toward multi-year recurring revenue models, GRRR is well-positioned for sustained growth. Backed by an improving financial profile, margin expansion, and increasing visibility into future earnings, Gorilla Technology currently carries a Zacks Rank #2 (Buy), reflecting its solid prospects.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.