Gorilla Pops 14.6% on Buyback Completion: Should You Buy GRRR Now?

Gorilla Technology Group Inc. GRRR shares jumped 14.6% since it announced share repurchases and insider ownership updates on May 22, indicating renewed investor confidence, driven by strategic corporate actions and improving fundamentals. It has made repurchases worth more than $1.8 million in April and May alone, leading to a cumulative buyback total of $5.4 million.

GRRR has now $4.6 million left under its $10 million repurchase program. It plans to make further opportunistic repurchases as its cash buffers continue to strengthen. Also, it has boosted insider ownership to nearly 20% thanks to additional purchases made by the directors and officers. This combination reflects a vote of confidence from both corporate leadership and the market.

Gorilla’s 2024 results showed improvement in several key areas. It reported 15.4% year-over-year growth in revenues to $74.67 million, driven by strong sales growth and execution. Gorilla is executing a business transformation plan that includes streamlining operations and focusing on high-margin segments like AI-based video analytics and cybersecurity solutions. Its selling and marketing costs, research and development costs, G&A expenses and others declined significantly in 2024.

Strong Estimates for GRRR

The Zacks Consensus Estimate for Gorilla’s 2025 and 2026 EPS implies a 112.4% and 32.9% improvement on a year-over-year basis, respectively. Encouragingly, the company has witnessed one northbound earnings estimate revision for the current and the next year, over the past 60 days. Similarly, the consensus mark for 2025 and 2026 revenues suggests a 54.6% and 26% increase, respectively.

The company plans to report first-quarter 2025 results in the first half of June. The Zacks Consensus Estimate for Gorilla’s EPS is pegged at a penny, and the revenues at $20 million. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

It expects 2025 gross margins to be within the top end of the 40-50% range. Also, the company anticipates 20-25% EBITDA margins for the full year. It foresees 2025 operating cash flows to be positive.

One-Year Price Performance

Shares of Gorilla have surged 225.9% in the past year, outperforming the industry’s average of 37.2%. During this time, industry peers like Allot Ltd. ALLT and AppLovin Corporation APP jumped even higher at 261.8% and 331.3%, respectively.

Price Performance – GRRR, ALLT, APP & Industry

GRRR’s Valuation

Gorilla trades at a forward P/S of 2.97X, in line with the industry average. By comparison, Allot trades at 3.12X and AppLovin at 18.98X.

GRRR’s Tailwinds

Gorilla operates in high-growth segments, such as artificial intelligence, IoT, and cybersecurity, industries expected to expand rapidly in the coming years. Its AI-powered video analytics and edge computing solutions are gaining traction, particularly in smart city infrastructure, government surveillance and enterprise security.

These areas offer robust demand, especially as global governments and enterprises invest more in digital security and automation. Gorilla’s partnerships with public and private sector clients in Asia, the Middle East, South America and Europe provide a solid international footprint.

It has a backlog of $93 million for 2025 and $67 million for 2026. It has more than $2 billion in signed contracts in its pipeline, along with another $4.6 billion in late-stage contracts, formal MOUs and others. These have long-term commercial scope and are complex in nature.

Its total cash position was $37.5 million at 2024-end, while outstanding debt was at $21.4 million. It intends to further reduce its debt by selling its property in Taipei.

Risks to Watch

Despite its growth potential, Gorilla faces several risks. The company is still transitioning toward consistent profitability and has a limited operating history as a public entity. Its business model relies heavily on large contracts, which can result in revenue lumpiness.

Additionally, competition is getting intense in the AI and security space, with larger, better-capitalized players dominating the landscape. Gorilla will need to demonstrate continued product innovation and successful contract execution to carve out a sustainable niche.

Bottom Line

Gorilla Technology is showing real signs of growth, supported by strategic buybacks, insider alignment and exposure to fast-growing markets. While risks remain, its improving financials and strong sector tailwinds suggest that the stock may still have room to run. With a Zacks Rank #2 (Buy), GRRR deserves a closer look by investors with a growth-oriented mindset and a tolerance for volatility.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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