Gorilla Technology Group Inc.

Good morning and welcome to the Guerrilla Technology Group's third quarter 2025 financial results conference call. All participants are in a listen-only mode. After the speaker's remarks, we will conduct a question and answer session. To ask a question at this time, you will need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to our speakers today. Jay Chandon, Chairman and Chief Executive Officer and Bruce Bower, Chief Financial Officer. Thank you. Please go ahead, gentlemen.

Thank you very much. Good morning, everyone. Q3 marks the strongest quarter in Gorilla's history with revenue ahead of expectations, operating profit firmly positive, and the bottom line at break even. Now, we've delivered a clear swing in profitability. We've built a cash position about over $119 million. We've reduced debt to $15.1 million. And we've advanced our AI infrastructure programs across Southeast Asia, Latin America, and the Middle East, securing multi-billion dollar projects. But at the same time, we're also creating an historic pipeline for this business. The simple message is that Gorilla is now operating above the analyst model. and scaling faster than the market expected. Thank you. Ruth, anything you want to say?

Yes. I'd just like to take a walk through some of the highlights from the quarter and then in terms of where we are overall. So the first, as Jay mentioned, was it was a record quarter for us in terms of revenue. The balance sheet, as Jay mentioned, $121.4 million of cash total. That breaks down to $109 million of unrestricted free cash and then the balance and restricted cash. Debt of $15.1 million means that we're in a significant net cash position of $106 million. This follows on the performance of the business and also in terms of what's helped by a fundraise that we did in July. In terms of where we are as a business and how we're performing, you can see that we're on track to meet the guidance for 2025, which is in the range of 100 to 110 million in terms of revenue. And then we were talking about EBITDA margins in the 20% plus range and net income margins in the 15 to 20% range. So we remain on track to hit all of those. The gross margins through the nine months have been a bit over 35%. That's a little bit lower than we'd expect for the full year, so I think that we'll be on track to hit the 35% to 40% range for the full year. At the end of the quarter, we had accounts receivable of $36 million, and I know people are looking at that and worried. I'd just like to say that we expect the business to be collecting some of those we've already collected on in the fourth quarter, a couple of significant outstandings in Asia, and then some remaining in the Middle East we expect to collect on. For the nine months of the year, we had operating cash flow of minus 15 million, and we still expect to either have break-even or positive operating cash flow for the total year. Another thing, speaking about going into the next year, is we issued guidance for the next year of 137 to 200 million. I just wanted to talk a little bit more about how that works, and Jay can help me out as well. But basically, this is how we... Forecast guidance is based on contractual backlog, which is the revenue that we expect to realize from signed contracts, and then also where we have delivery timelines and specified contractual milestones. In this case, we have a signed contract, and in the case of 2026, we have a large signed contract with Frere, and we have individual deployment as part of that contract. The timing is more or less certain, but still subject to some change. which is why we opted for a wide range to reflect our conservatism in making our guidance. Nonetheless, the fair contract is still a large contract at $1.4 billion overall. So that means, you know, over 400 million annualized. And that will be, when up and running, you know, 400 million annualized. But the rollout will be through 2026. So the contribution will hit starting in 2026, but it's still, you know, it won't be the full amount. Nonetheless, we also have a strong pipeline, as we alluded to, which Jay can talk about in a second, which makes us optimistic about hitting the four-year guidance for 2026. A couple other things to point out about 2026 is we have been talking to the market for a long time now about about where we're going to grow, diversifying the business and de-risking it. What we've seen is that the contract wins and then the pipeline is mostly in Southeast Asia, which would lead to us hitting our target of over 50% coming from Southeast Asia next year. It's also a good mix between governments and enterprise. So we'll be diversifying and reducing the government share of our revenue. And then the corporates are investment grade, and then the government clients that we're talking to or that we've converted are investment grade as well. So we see an improving credit quality from our end customer. All of this points, I think, to an improving business mix, a diversified revenue base on all measures, and then improving client quality. The last thing I'd like to do is Jay is a bit too modest to do this, so I'll do it for him. is the tri-record is now piling up to the point where I think we have many proof points. When this business went public in 2022 via DSPAC, the revenue for that year was $22 million. The guidance for this year is $100 million to $110 million, so that's obviously a significant increase in a short period of time. Looking at the guidance for next year, that marks two things. One is it's a large, absolute increase The second is that the percentage growth rate actually for next year would be an acceleration over the percentage growth rate for 2025. So, it's, I think, quite a testament to the management team to see an improvement in the revenue growth rate and also, you know, after a five times increase in revenue since going public. And then, that's not the only highlight. Several other highlights. So, first of all, we have, as I mentioned, over 100 million of net cash. This is after being in net debt when we went public. We had a very painful or even toxic financing mix earlier in 2022, 2023, all of which has been cleaned up. So the cap table is almost all common equity. And then when we talk about winning new contracts now or executing on contracts that we've signed, looking at the balance sheet now, we have the ability to fund significant new deployments from our own resources and then from project level finance that we have on the table from several banks. So we anticipate overall a good year to finish up in 2025. We're quite excited about the outlook for 2026. And then with that, I'd like to turn it over to Jay for anything else that he'd like to add about the outlook, the pipeline, et cetera.

Thank you, Bruce. Yes, it was a very good quarter, rather, wasn't it? But if anyone is still wondering whether this is structural, I would gently suggest that they may need a new pair of spectacles. Now, you know, just to highlight on what Bruce talked about and clarifying some of the proof points to all the naysayers out there, you know, our revenue, the consensus analyst model was roughly, you know, about 26, 26.2 million. Our actuals were at 26.5 million. Gross profit estimate was 9.5. We did about 9.9. Operating income, IFRS operating income was to be at minus 6 million. We did a positive of 4.4 million. That's a big swing. It adjusted EBITDA was about 5.6 million estimated. We did 6.8 million. Adjusted net income was about 3.5 million. We completed quarter three at 6 million. Our EPS non-IFRS was 0.26, and we came in at the Gorilla Actual was about 0.257, which is in line. Our EPS IFRS was expected to be at negative 0.8. We completed it at breakeven, which is 0.00, which is 100% improvement. Our handless implied debt was at about $21 million. Gorilla Actual was at about $15.1 million. And we're looking to reduce that substantially before the end of this year. What we also had modeled for was the unrestricted cash, the restricted cash and the total cash position. And we are predominantly on top of everything today. Why? Because we delivered profitability at an operating level. Not adjusted, not sprinkled with fairy dust, not if you squint you can't see it, so on and so forth. This is proper profitability. We ran the business efficiently. We delivered on big projects across the region. We are delivering big projects across the region. We controlled our costs, but more importantly, we generated a real operating profit. This is not a one-off. This is what we call discipline. Second, we did this at the same time we were scaling at Pace. Now, most companies only turn profitable when they stop investing. We turn profitable while executing national infrastructure programs across Southeast Asia, Middle East, LATAM, and so on. Anyone who's ever worked in the sector will tell you that is not just coincidence. It is pure operational muscle. Third, we have visibility. And when I say visibility, I mean proper visibility. The 1.4 billion Southeast Asia data center project is not a rumor. It's not a letter of intent. It is not a whim. It is a contract and it's underway, already flowing into a scheduling and revenue plans for 2026. And onwards, of course. The first phase alone provides for $100 million of annual revenue for the first three years. This is the definition of structural. Now, people also ask me about the pipeline of $7 billion. I'm gonna show you, this is not something we found under a sofa cushion, okay? It has come from governments, telcos, serious institutions that are designing their national AI and digital sovereignty strategy. Our role in those programs is not episodic. It is recurring, expandable, and it's increasingly indispensable. Now, our balance sheet is also a strategic weapon for us. Over $110 million of unrestricted cash, $15 million plus of debt, and working with major partners like Terrastrada with us on data centers, we are not just hoping to deliver, we are capitalizing to deliver. And finally, with the deepening partnerships with the likes of Intel, Edge Core, HPE, and NVIDIA, and expanding our sovereign 5G local interception cybersecurity platform, we're not a one-hit wonder. These are partnerships that stick because we execute. So just to go back into the question of the session now, we're not at a peak today. If anything, this is the photo before the client. Our numbers are consistent. The profitability is real. The backlog is defined. And the demand curve ahead of us, particularly on AI data centers and national infrastructure programs, is significantly larger than what is formally in the guidance today. With that, I'd love to turn this over for question and answers.

Thank you. As a reminder, to ask a question, please press star followed by the number one on your telephone keypad. Our first question today comes from Mike Lattimore from Northland Capital Markets. Please go ahead. Your line is open.

Great. Yeah. Congrats on the good morning. Yeah. Congrats on the great results here. You know, in terms of the guidance for 26, what are you assuming on this large deal contribution kind of low end to high end of guidance? Or what are the factors that get you to the lower high end of that guidance?

Mike, as I welcome to hear from you. Let me answer it with numbers first, Mike. For 2026, we've guided a revenue range of roughly around $137 to $200 million. This is built on only two things. One is our contracted backlog with very clear delivery milestones. Number two, the first phase of the Southeast Asia Data Center project, which alone contributes to $100 million from 2026 to 2028. Now, there is zero revenue in the guidance from later phases of the $1.4 billion program and zero from any other new mandates that are being structured. Now, the reality is that the remaining phases of the AI data center program are much larger than the phase one. As the timelines and the site consequences are finalized with the customers, we will then extend both our 26 and 27 revenue base quite materially as well. Now, on top of that, as you know, we've also built a pipeline. Inside of these are several national projects in late stage that also touch data centers, public safety, network intelligence, 5G law from inception programs, and so on. None of that is in the current guidance of 2026. So, you know, the question you've asked me is the range we have given you is based on the backlog driven by a base case assumption. It is also dependent significantly on some of the very important issues we're facing today. One is material shortages of semiconductors, deliveries from likes of NVIDIA, Dell, HP, Supermicro, and so on and so forth. But that said, the upside from additional AI data interfaces and new sovereign mandates will fit about all of these, and they will crystallize, and therefore they'll become our future guidance as well. So I personally believe that we published a very sensible conservative number. and that's why we've deliberately left the rest out of them for now.

All right, perfect. Thanks. Any color on EBITDA margins, what you think they might do in 2026? Sure.

Bruce, do you want to take that?

Sure. So we would guide for a sort of 15% to 25% range. Okay, great.

Um, and I guess just last one for me, um, the, uh, what, maybe can you provide a little more detail on the deliverables on this large contract in 26? Like what, what is the core thing you're going to be delivering in the first quarter and throughout 26?

Mike, that's a good question. So the right way, uh, my, to see the, you know, first hundred million dollars of the run rated bills, you know, personally, and for me, I think most people expect that you find a $1.4 billion contract, it's a light switch, and your revenue starts flowing in. No, it doesn't work that way. I'm sure you know data centers very well. We've been communicating on this for quite some time. The first one is basically about 6 to 8 megawatts. That's several hundred high-density AI racks. And we do not light them all in one day, as you can imagine. They come online in planned waves as the power, cooling, all of the network zones are commissioned. So revenue ramps up in each batch as they are energized. Second, when you look at the GPU capacity, that becomes a very important factor as it follows into these waves. As the racks go live, for example, we drop in the clusters through our NVIDIA and partner ecosystem, which drives up the GPU as a service usage line. Now, on top of that, we stack our services over a period of time, so not all at once. You can't just do a big bang approach. It's video intelligence, say, for example, for cities, transport, and borders, big data analytics, building your large language model for both the government and telco, spinning your inference engines and so on, your cybersecurity, your network appliances, and intelligence platforms, and things like even the environmental intelligence and smart policing. As the national workloads move into the platform and the utilization grows, typically from 30, 40, all the way up to, let's say, 70, 80%, that deepens our revenue at the same time at the same levels as the physical capacity. So just to take a leap from what Bruce said earlier, if you want us to be doing about $300 to $400 million steady state revenue, the GPUs all need to be in motion and be syncing harmoniously at the same time. So the part to that is a controlled RAM. As I said, it's not a big bang. So we're anticipating, again, working very closely with NVIDIA on this, we're anticipating that we will get all of this commissioned and to go live by the end of 2026. I hope that answers your question, Mike.

Yeah, yeah, perfect. Thanks a lot. Best of luck, rest of the year.

Thank you, sir.

Our next question comes from David Williams from Benchmark. Please go ahead. Your line is open.

Hey, good morning, and congratulations on the progress and success here, gentlemen.

Thank you, David.

I guess maybe one of the first questions is kind of around the guidance. Obviously, you talked about this a bit earlier, but it feels like there is some potential upside there. And I guess if you kind of think about the risk, in the market and maybe from the supply side and just the market dynamics, what do you think, I mean, how would you gauge that from the midpoint of the guidance up to the upper end? And I would suspect that there's more upside opportunities than downside risk. Is that fair to assume?

David, it is absolutely fair to assume. There is more upside. Why? Because, see, let me give you the risks to the guidance. I think there are two parts to your question. First is the timing of the customer deployment. Large AI infrastructure and data center programs rely on client-side readiness. There has to be site access. As you know, the market very well. Power allocation, import clearances, customer procurement cycles. They can all shift from one quarter to the other. And even a slight change in a week or two changes that significantly. Number two. Your supply chain constraints are also, there's a big challenge today. You look at the demand. Now, there's a high demand for GPU servers, not just in the United States, but across the globe, right? And then if you're looking at things like networking equipment, they can also create longer lead times. I don't know if you've seen recently, the price of memory has shot up 40% in the last two months. Then you've got things like regulatory and compliance approvals. You've got things like project phasing on multi-year platforms. We take into account even geopolitical sensitivities in certain regions like in Southeast Asia, Middle East, Latin America, and so on and so forth. But then if you're looking at the upside for us, I did talk about it previously. For us, it's about when these programs come alive. Now, our aim is to get all of these live by 2026. and make sure that we drop all of these clusters to our NVIDIA partnership and our partner ecosystem, and make sure that we drive the GPU as a service usage line. Now, once you've given that, and remember, these are all purpose-built data centers. That means there's one customer occupying 100% occupancy. That means our revenue would hit scale as soon as the switch is switched on. what we are trying to do is we are working very closely. I mean, I did mention to you the risks, but taking all those risks into mind, we're also looking at the upside. And we want to make sure that our upside actually, you know, helps negate the risks on the lower end. I hope that answers your question.

Okay, it did. Thanks so much.

Can I add something, too? So a couple other things, David, to keep in mind. The first is The data center contract we have is an umbrella contract with Frere. When we announced it, the $1.4 billion was based on the schedule of deployments that we had then. There is always the possibility that there are more deployments added to that, so that that would be another source of potential upside. The second thing is, of course, while we're talking about the contractual backlog and we talked about the data center side, we haven't talked about anything else. So Gorilla's still actively bidding for government contracts. And so we put in several bids recently and we're staying tuned for good news from a couple of governments in Asia. The other thing is that we've talked many times about One Amazon and some of the MOUs that we've signed with government customers in the past. None of those are in the guidance now because they haven't yet turned into a date and an amount. But as soon as we know and have crystal clear vision on the date and the amount, then those would also be added to the guidance for next year. So, you know, it's not just about delivering everything from the data center contract, although that's the biggest mover. There are many ways for Gorilla to win next year.

Yep. Fantastic. Great color. Sorry, go ahead.

No, no. Please go ahead.

Okay. Thanks. And then maybe, Bruce, is there a way to size kind of the magnitude of your backlog? You've talked about a few things you don't have the amounts or maybe even dates to, but if we were kind of thinking about your total backlog and kind of what you're anticipating for next year, how should we size that?

So the backlog for us is, you know, we go with a strict definition. So 85 million is the backlog for 2026 where we have the exact date and time and it's signed and it's being implemented now. Then we have, as we mentioned, the data center contract where it's signed, it's being implemented, but the exact timing of the deployment is still, you know, we have a good idea, but it's not, definite yet. As Jay mentioned, there are some, you know, ducks that we have to get in a row or, you know, there are other people that we have to work with before we can define that. The pipeline is where we have, you know, a qualified lead where we think that they'll make a decision in the next three to six months where they have budgets, but that doesn't have a signed contract or with an amount and a date next to it. So, you know, there's two parts. One is the backlog is very strict And then the pipeline for us is really about converting from customer either where it's signed, but it's not amounted and dated, or where they sign up and then they sign a contract and we know the amounts and the dates and can then move that into the backlog. Okay, I hope that's clear.

If I may add something to that, David, as well. The pipeline has grown rather enthusiastically, if I may. If it grows any faster, I think I might need to send a congratulatory card for myself. But that said, you know, the deals are also very mature. If you look at what we did a couple of years ago and where we were last year, we were building POCs, we were signing MOUs and so on and so forth, whether it was Smart Education in the UK or Middle East, LATAM and so on and so forth. The data center project has accelerated beyond our expectations. And I don't want people to think that we're only building the data centers. There's a lot of ancillary support services we provide on top of that as well. So the $1.4 billion, for example, was only a catalyst. Once governments and telcos saw that we could deliver sovereign and great AI infrastructure, that basically kind of triggered a surge of interest. Now, without giving names, the demand wave behind the Freya is significantly larger than Freya itself. That is one of the primary reasons why our pipeline is well out of $7 billion. Now, if you look at the GPU infrastructure, it has moved away from ambition for us to urgency. to our, you know, engagements with likes of Nvidia and Edgecore and including our own appliances within the kind of the government, we're seeing that strategic infrastructure as an essential, not optional. So now what has happened? We've also started working with the likes of Terrastrona in Brazil, who's providing capital and looking to build some seriously large data centers as well. So these are all kind of, you know, whole country platforms as opposed to just incremental pilots. And then finally, what we are doing is that we're making sure that we can formally count a large portion, let's say, even if it's 20 to 30% of the $7 billion to be signed very quickly in 2026. And that allows us to actually be much more confident of our mouth year expansion. So in short, David, the opportunity is pretty comfortably substantial for us, but it's also growing at the same time. And it's not a definitely a single year anomaly.

Okay. And one more, if I may, here. Just if you kind of think about your competitors in the market and the 800-pound gorilla, so to speak, you're competing against there. Why are they choosing gorilla? What gives you the edge, and why are you winning?

Thanks. That's a good question. Why are we winning? I think we've proven ourselves, okay, to where we are today. We believe that we worked with governments to make sure that we understand what their requirements are, what their commission requirements are, what their ecosystem requirements are, and then we help them build national workloads. Now, Guerrilla has been in this space for a very long time. As you can imagine, we've been here for 24 years. We're going to be celebrating 25 next year, right? We are a full-stack AI operator, and I think I kind of talked about this in my first speech at the NASDAQ, and I said we want to be an AI stack operator. We design the architecture, we build the data centers, we integrate the GPU stacks, we operate the platform, and we stay as a long-term partner for the governments and telcos. Now, apart from that, they also, you know, we offer these customers of ours, both enterprise as well as the government level, sovereign control and predictable economics. And that is very, very, very important because our customers know exactly who runs their infrastructure, who carries the responsibility for their uptime and performance. And then finally, it's about capability. Now, as you know, we've been delivering national cybersecurity infrastructures. We've built four data centers in Egypt. for our $270 million contract. We're executing multi-million dollar projects, national projects across Southeast Asia, Middle East, LATAM, and so on. What has happened is we are moving faster than our competitors. Our speed of execution, our ability to structure these projects, and our operational discipline is making us the preferred partners where, you know, you understand this probably better than most people do, AI infrastructure cannot fail. It cannot fail. It just cannot fail. And it has to be with people who can have a very strong operational discipline. I think that's the responsibility we take. So we will build, operate, and manage responsibly. So think about it this way. Everybody's trying to sell buildings and servers. We're trying to sell outcomes. That's it. That's as simple as that.

And one thing to add on to that, as the numbers guy, is when I was investigating why we win to prepare some investment materials, all of that came out. The other thing is that given our history and our relationships with hardware vendors in Taiwan, and then using our own software to create appliances out of the hardware, We actually deliver a significant cost savings over a competitor. I mean, obviously, the biggest cost item will be NVIDIA GPUs, and there's not much flexibility. But on items where there's flexibility, we can deliver like a 30%, 40% cost savings with better performance. And that will reduce the overall cost of the data center by 5% to 7%. And 5% to 7% may not sound like much, but when you're talking a billion-dollar data center, that's a significant cash savings. You know, not only is it sort of everything that the customer is looking for in terms of sovereign data infrastructure and faster time to market, but it's also cheaper. So in the end, there's enough that stacks up. It becomes very difficult to look at a competitor by comparison.

Great point, Kim.

Great. Well, thanks so much for the time, gentlemen, and looking forward to seeing your success. Thanks so much.

Thank you so much.

Our next question comes from John Roy from Water Tower Research. Please go ahead. Your line is open.

Thank you. So, Jay and Bruce, obviously a lot of discussion around 26. I want to step back for half a second and look beyond that and kind of these questions are related. One is, do you need to grow your sales team to turn that pipeline into backlog? And can you give us some color on the pipeline beyond 26? And the last thing is, What are you going to plan to do with all that cash? Is it for growth? What's it for? Just kind of curious.

That's a really, really good question. No, no, no, that's a good question. You caught me off guard there. No, but listen, I can tell you that my pipeline is $7 billion and I can sign all of these deals and it's all going to be hunky-dory. It is not. It is going to take its own challenge. It's got its own challenges. Am I going to expand my sales teams? Our sales teams are already well established. We have more than, what, 250-plus people today full-time. We have more than 200-plus contractors. So we're stretching our borders right now. The sales guy, you know, there's one sales guy who gets everything done, which is myself. I make sure that I'm there in front of every single customer, every single project. It doesn't matter whether it's a million dollar project or a billion dollar project. I make sure that I'm there so that I can give them the confidence and the guidance. Where are we aiming? I think you kind of touched upon this as to what the future looks like. For me, personally, right? The programs and partnerships in front of us land the way I expect it to be in the next, let's say, three to six months. I would like us to be, and this is my personal target. Please do not assume that this is going to be the company's target. Around $500 million of annual revenue by 27. That's not a formal guidance, by the way. This is my target for what the platform is capable of delivering. Now, that's what I am focused on. I want to get there, but we need to make sure that we've built all the Lego blocks in place. So make sure that we're no longer a project shop. Make sure that our pipeline is real and growing. Make sure that we can have more cash and that it meets our ambition. And more importantly, it talks about what kind of acquisitions we're also able to do so that we are able to support. We need teams. We need people. Just to give you the scale, we've gone on a massive hiring spree in Taiwan. Thailand's almost 60-plus people. We are looking at India. We've got about 150 plus new recruits going on in India. And we're looking at acquisitions as well for the first time in India as well as in the U.S. So keep your eyes peeled, and I'm sure we'll be able to provide you more updates in due course.

That sounds good. And the cash, maybe Bruce can give us some highlights on where that cash might be headed.

Yes. So for all of the major contracts, there is a capital need from Gorilla's side. Sometimes with government customers, that can be for performance guarantees and for working capital. For some of these data center projects, we have to fund the CapEx up front and then deliver it to the customer. In this case, we are in active negotiations with banks. I mean, Jay and myself are in New York this week, you know, meeting with banks. So we have term sheets on the table from lenders, which will finance the vast majority of it. But just like getting a mortgage for a house, there's an equity component, and the equity component would come from the balance sheet. We anticipate that we have more than enough cash on balance sheet now to fund the first deployment or two, and hopefully even more than that. Like I mentioned, the business should generate substantial cash in the fourth quarter. And So that will see us into much higher revenue numbers in the coming three to six months. Yep.

Great. Thanks so much, and congratulations on a great quarter. Thank you, John.

Our next question comes from Brian Kintzlinner from Alliance Global Partners. Please go ahead. Your line is open.

Great. Thanks. Congrats on all the business development achievements over the last few months. As it relates to the Friar contract, Hi, Jay. As it relates to the Friar contract, I'm curious, or I assume the margins are substantially higher than the operating margin of your existing business. The offset is the CapEx side, so the cash returns maybe aren't what the EBITDA margins are, but the EBITDA margins are super high. I just want to see if my assumption is right.

You're right, Brian. First of all, good to hear from you. First of all, Prayer is not a construction gig. For me, it's a long-term AI infrastructure relationship across Indonesia, Malaysia, Thailand, Vietnam, Philippines, and so on. Now, what we are doing is we're designing, building, operating, and monetizing it over the years. Now, once our data center is live, We're not just there to host the racks. We're also layering a lot of services on top of it. So video intelligence, like I said, big data analytics for government, cybersecurity platforms, smart policing, and so on and so forth. So for me, prayer is the doorway. The real value is what we sell on top of it and everything inside that footprint. So when you look at it from that perspective, yes, you're absolutely right. It carries a higher margin. Your EBITDA is much higher. But in terms of cash generation, it might actually, because the CapEx, extensive investment of the CapEx, it's going to be slightly full cycle. But what we will do is we will then deploy our own operations team. And more importantly, we will also deploy our own stack of solutions on top of them, helping them go from building life language models to inference engines. and moving up the value chain, going from H100 to 200 to GB200, GB300, and what comes after. And so, look at it this way. For me, building data centers is only one part of it. Think of it as creating, curating, hosting, and protecting your data. That's what we do.

Great. Thank you. And then, as we enter 2026, regarding your first large contract, which was the Egypt smart city contract. How do you see the economics change in 26 versus 25 in terms of revenue? Are we increasing, declining, kind of steady state? And then how did the mix change from 26 compared to 25?

That's a really good question. So if you recollect, you know, about a couple of years ago, Brian, when we first spoke, I said my first job was to de-risk the business. And it was to discard delivery profile in three ways. I mentioned this to you and I'm going to stick to my guns here. First, we secured the contracted program. Once we did the technical validation with the government of Egypt, we then scored our revenues and so on and so forth. And as you know, 95% of our revenues came from government customers. So what we did was we wanted to move away from projects to long-term, milestone-based, predictable collections so that our cash exposure is limited. It took us about a year and a half to build that, and today we're seeing that we're able to strengthen our balance sheet, but more importantly, we're able to reduce debt. Now, what has happened, and this has allowed us to give us a breathing space to re-engineer our business, and to build our, what I call, capabilities at the same time. So look at it from having project-based schedules and programs to a full-fledged deployment. These factors kind of helped us reduce our execution risk, revenue timing, and financial risk. So going into 26, I can say with confidence that we are able to now have a more predictable, more stable quarter upon quarter as opposed to what we had previously. I hope that answers the question.

Yeah, somewhat. I'll take some of it offline. And then I'm curious, you had a number of MOUs, including Amazon One. There's a smart city contract. Any updates on your progress? And I don't need to go over each one of them, but maybe where you're seeing more progress headed towards the finish line of any of the MOUs that are very large?

Yes. So the one Amazon project is going full steam ahead. As you know, we've already completed a proof of concept in Panama, and now we're running into Mato Grosso. You saw the signing happen sometime last month. So there's an initial $100 million program where we're expected to receive a good chunk of that in tech deployment. Now, of course, there are lots of issues we need to worry about. because we have to worry about the sensors, the way they're deployed, how every actor has been monitored, how it becomes a stream of environment and health intelligence, and so on and so forth. And these are monetized for decades. So we've already started work on that. It's growing, and that is not part of our guidance for 2026. We also find, as I said, with our MOUs with the likes of TerraStrada, for example, This is not a single site. We're talking about 120 plus megawatts to be done over the next 24 months. So that also ties that to our project and so on and so forth. We're expecting that to also convert into a portfolio of other AI infrastructure projects, which are repeatable. We're also working very closely with the projects. And I know what is on the tip of the tongue of everybody in Thailand, for example. We are working very closely with the government and to give you some confidence that we are sure that there would be an outcome and light at the end of the tunnel over the next few months. In terms of the overall, you know, one Amazon and the other MOUs, which we've already signed, our team is working day in and day out. And we're making sure that each of the platform builds the digital backbone and make sure that we are sitting on top of their infrastructure at play. So again, all these are not included in the guidance for 2026.

Great. My last question, that was helpful. You highlighted, Jay, accurately that you invest to grow. You made a comment about that, and you've done that. But given the solid wards, the growing pipeline, Are there any key investments you need to make now in terms of personnel, staff, facilities to take advantage of the opportunities in front of you? Anything meaningful that you can talk about or can quantify?

Absolutely. I think I touched upon this, Brian. This is very, very, very important because I think most people think that, oh, no, we're a small company. We don't have the means to do what we do. So what we are doing right now. I'll just give it to you straight. These are all numbers back. We are focused heavily on our M&A story as well, because that brings in deep execution legs for us, but at the same time, we're also looking at how we expand ourselves into some of the fastest growing economies in the world. First, India. If you look at the India AI market today, and I may be slightly off on these numbers, We're looking at about $9.5 billion today, and it's expected by 2032, I think, or 33, it's going to be about $130 billion. There's a tenfold expansion of the AI market. I was there recently. The country is also doubling its data center capacity from 940, 50 megawatts to roughly around 1,800, 2,000 megawatts. By 2026, we're talking about a transformational change. So this is a massive national shift when it comes to AI compute cloud and digital sovereignty. Our investment into India is not cosmetic. Our acquisition, potentially, is also not very cosmetic. It positions us in a triple-digit billion-dollar economy, and where we are building our own local team, our own regulatory posture, but more importantly, we are looking at sovereign-grade projects at scale today. So India is one big market for us going forward. The second market, which we talked about, and which is also going to give us scale and people to help deploy in the local market, is the United States. Now, the U.S., as everybody knows, is the largest AI market on the planet, represents roughly around 36% to 38% of the global AI spend today. But that said, it is also where public safety, digital infrastructure, your GPU demand, defense, and so on and so forth, are all running at a tenth of billions of dollars, apart from the data center market and the AI market. So for me, the acquisition there we're pursuing is very deliberate. It gives us established platform. It gives us huge customer credentials. And more importantly, it gives us execution depth. And that's something you asked me to talk about as well, to deliver, can I deliver real AI infrastructure and public safety programs in a country like the United States or India? This is how we're going to do it. So the U.S. for us becomes, you know, what we call a second engine for Gorilla for the next two to three years, not just a side project. So look at it this way. We're not buying revenue. We're buying capability. So that gives us scale. So India gives us scale in the hyper-growth market. U.S. gives us credibility in the world's most mature AI and law enforcement ecosystem.

Great. That was super helpful. Thanks for taking my questions. Absolutely, Brian. Anytime.

Our last question comes from Barrett Boone from Red Chip. Please go ahead. Your line is open.

Jay, Bruce, congratulations on a great quarter. Thank you, Seth. I just have a few questions here. First, we know you now design, build, and operate AI data centers, provide GPUs of service, and you're rolling out your own branded AI GPU platforms with partners like Edgecore and Intel. At the same time, you're deepening your relationship with NVIDIA and the wider GPU ecosystem. So how should investors think about the unified flywheel you're building and guerrilla strategic role inside the next wave of AI compute infrastructure?

That's a very interesting question. Well, I'll keep it short. The short answer to that is that we're not playing in one corner of the AI infrastructure. And I think the market needs to understand that. Why? Because we're building the whole engine. The data centers are just an anchor about it. We design them, we build them, we run them, we sit on them because they're long-term hosting and power and capacity contracts and so on and so forth. But on top of that, we stack the GPU as a service using our NVIDIA-based platforms with our partners. That gives us usage-based recurring revenue as the workload scale. And this is a very important term which the market needs to understand. As we scale, we will scale as well. And as our customers scale, our revenues will scale automatically. That term is called usage-based recurring revenue as the workload scale. Now, on top of that, we talked about the flywheel. The flywheel is very simple. Data centers drive GPU demand. Your GPU demand pulls through our software. The software then locks in longer and deeper national engagement. Think of it as a three-pronged approach. So how should someone see us, whether it's investors or customers, they should see us as a sovereign great AI operator, not just as a project contributor or a box shifter. We're surely not a box shifter.

Thank you, Jay. I think that adds a lot of color there. Now, shifting away from the data center conversation, you've spoken about quantum safe networks and the Intelligent Network Director platform for lawful interception. and network intelligence. How should we think about these as commercial gateways into larger sovereign infrastructure and national security programs rather than standalone products, right? How do they all work together?

Ah, the quantum question. I love that. Barik, let me keep this tight. I know we're running short on time. This is one of the most misunderstood parts of our business. First of all, the market is enormous. Post-quantum cryptography alone is expected to cross over $100 to $150 billion globally over the next decade as governments upgrade everything from national networks to their financial systems to their defense communications and so on and so forth. Now, look at this. Every country will need this, not want, but they will need it. That's an absolute must. Our intelligent network director is never just a product. What we do is when a country lets you monitor its entire network flows, your lawful interception, your cyber postures, they're not just trialing a tool. They're effectively handing you the keys of their national nervous system. And this is what the market has misunderstood. We're not trying to sell a product. We're actually managing their national nervous system. Now, that becomes a gateway into data centers, into sovereign cloud, into your public safety modernization, your AI workloads, and your full national security stack, and so on and so forth. Now, as we move forward, right, the quantum-safe network opens the door even wider for us. Why? If you look at the way we protect, you know, countries' backbone communications, we're automatically in the room. I mean, whether it's Taiwan, whether it's Thailand, whether it's Egypt, whether it's LATAM, it doesn't matter where it is. We are in that room for the next phases of their data centers, their GPU infrastructure, all of their national analytics. all of their secure workloads, and all of their critical infrastructure protection. We signed two projects, as you know. And these were 5G lawful interception, protecting national critical infrastructure. Now, these technologies are the starting point for the programs that run into hundreds of millions of dollars over their lifetime. So what is Gorilla doing? We're sitting in that room We're negotiating. We may find tens of millions of dollars today, but my aim is to convert that into hundreds of millions of dollars over their lifetime. So think of it this way. Whether it's your intelligent network director or your quantum safe, we're not standalone. Think of them as a handshake that pulls us together over larger, sovereign-scale national infrastructure programs. That's how I look at it from our IND perspective.

Thanks, Jay. That's very helpful. I just have one more question to leave you with. Sure. So over the past few years, you've gone from survival mode to a position where you have record revenue, strong profitability, a multi-year AI data center mandate, and a multi-billion dollar pipeline. What do you think the market is missing about Gorilla's trajectory when you look at the next two, three years?

Are you putting on the spot there, Barrett? Ah, okay. So first of all, I want everybody to understand this. We're no longer a project shop. We are becoming the sovereign AI infrastructure operator. Our phase one, for example, just in Southeast Asia, we're talking hundreds of billions of revenue per year. Later phases are just larger in scope. The duration and none of that is in the guidance as yet. Again, I want to repeat that. It's not in the guidance. Our pipeline is growing. We're now sitting on a pipeline about, you know, what, $7 billion across, you know, telcos, law enforcement, infrastructure, and government. These are multi-year national platforms. Now, once we have proven that we can deliver, you're rarely a one-contract supplier, and the market knows that. Now, if you look at the third part of it, balance sheet, and I think, you know, there have been quite a few questions on that. We have more than, you know, like I said, $119 million of unrestricted cash. I'm sorry, $107 million of understated cash in total of about $120 million of total cash left on the books. Now, that means we can go fund serious data center bills without even blinking. A year ago, and you said it very rightfully, so we were managing survival. Today, we're designing national architectures. We're also making very clear, we're trying to make sure that we do not dilute our shareholders as a default. We're exploring a very wide range of creative structures with our partners, from project-level vehicles to revenue sharing and other funky options that let us scale hard without handing away the company to them. Now, I did talk about my ambition. And again, this is my personal ambition. This is not in guidance. This is not target. But I would like to see that the way things are moving forward and all the partnerships in front of us I would like to be operating at about $500 million of annual revenue by 2027 and increasing from there going forward as well. And finally, you know, I think Brian talked about the flywheel question previously, and so did you, Barrett. Every data center for us brings in long-term GPU and hosting revenue. On top of that, as we evolve, the more infrastructure we operate, the more software intelligence we can pull through. What is the market missing? I think that was your question. The market is missing the fact that Gorilla is shifting from a small-cap story of survival into a multi-region sovereign AI operator with long duration of contracts, expanding margins, and a very serious revenue ambition. Most people are looking at it as the Gorilla of yesterday. That yesterday was when we were at $22 million of revenue. Trust me, when I hit 27, if my personal ambitions are fulfilled and we hit 500 million, that's an exponential growth which not many people have seen before. So the gorilla they will meet in the next year will be a very different animal, Barrett. And that's what the market is missing.

Thank you, Jay.

We have no further questions. I'd like to turn the call back over to management for any closing remarks.

Thank you very much. Thank you, everybody, for taking your time and listening to us. To our institutional and retail investors, I'm going to say this out loud, and I haven't written this or practiced this speech before. Your conviction has carried us from survival to scale. Now, people ask me about survival. This is very important. You stood with me, Bruce, and the rest of the team through every single battle we have fought to get here. Now we enter a new phase. We're not just winning contracts, we're building the AI infrastructure of nations. Your belief has shaped this company and it will definitely define everything we've been building in the years ahead. Most importantly, I want to thank every single one of you, naming people, people like Sam, people like Christian, people like Gunther, who actually stood by me while the world was still playing catch up. And I intend to repay the trust with performance. So thank you. And thanks, everybody, for listening in. Have a lovely day.

This concludes today's conference call. Thank you for your participation. You may now disconnect.