Gorilla Technology Group (NASDAQ: GRRR) shares fell 11% to $14.06 in early Tuesday trading, even as the company reported revenue that nearly doubled and raised its full-year guidance for the second time in 2026.
The sell-off stands in sharp contrast to broader market conditions, with the Invesco QQQ Trust (NASDAQ: QQQ) ETF rising 0.8% to $712.19 on the same morning.
Peers across the AI and security analytics space moved higher or held flat, with Evolv Technologies (NASDAQ: EVLV) up 2% to $5.34 and Ambarella (NASDAQ: AMBA) up 2% to $71.38.
BigBear.ai (NYSE: BBAI) added 1% to $3.11, while Palantir Technologies (NASDAQ: PLTR) held essentially flat at $175.42, further isolating Gorilla’s decline as a company-specific reaction.
Gorilla had gained 43% in the month heading into the earnings release, a run-up that set a high bar and likely amplified the downside move on results day.
First-half 2026 revenue came in at $78.4 million, up 99% from $39.3 million a year earlier, with Q2 2026 alone delivering $50.1 million, a 138% year-over-year increase and a 78% sequential jump.
Management raised the full-year 2026 revenue outlook to at least $200 million and set a 2027 target of $450 million to $500 million, sitting 16% to 29% above Wall Street’s consensus estimate of $386.7 million.
The 2027 guidance incorporates Yotta Phase 1 at roughly $100 million in annualized incremental revenue, the first batch of Yotta Phase 2 at approximately $250 million, and the first 300 NeutraDC servers at around $75 million to $80 million annually.
Notably excluded from that forecast are the remaining 700 servers from NeutraDC’s initial deployment, another 875 servers planned for a later phase, and a portion of Yotta Phase 2, suggesting meaningful upside optionality if timelines hold.
CFO Bruce Bower explained the company’s conservative methodology on the earnings call: “How we make guidance is we take what is contracted revenue, where we have an amount and a date. If we have a contract, but maybe the timing is not exactly firmed up or the amounts are not exactly firmed up, we do not include it in the guidance.”
Bower further noted that the forecast already contains “existing contracts or contracts that we’ve won and not yet announced,” reinforcing that the published numbers represent a floor rather than a ceiling.
CEO Jay Chandan signaled that finalizing additional NeutraDC deployments would prompt an upward revision, stating: “Once that is done, we will absolutely revise the targets for next year.”
Investor concern also centered on the loss line, with adjusted loss per share reaching $0.58 for the first half against a $0.32 profit in the same period of 2025, while adjusted EBITDA swung to a loss of $14.6 million from positive $6.2 million a year earlier.
Stock-based compensation of roughly $25 million and heavy infrastructure spending were cited as the primary non-cash and capital contributors driving that deterioration in profitability metrics.
Gorilla’s growth roadmap depends on physically installing capacity across Indonesia, Batam, and Thailand on schedule, with a facility planned at roughly 200 megawatts of computing power and first services expected mid-2027.
Bower said GPU-as-a-service projects should carry margins of 75% or higher once operational, offering a longer-term profitability case that the market appears unwilling to fully price in ahead of construction completion.
With a market cap of roughly $435 million, negative adjusted EBITDA, and a thesis contingent on construction timelines across three countries, Gorilla remains a high-volatility name with large percentage swings in both directions.
Chandan framed the company’s outlook squarely around delivery rather than projection, saying on the call: “We’re not expecting the calendars to produce the growth for us. Our answer to all this will be execution.”
