Prepared remarks
Good morning, and welcome to Gorilla Technology Group's Third Quarter 2025 Financial Results Conference Call. This conference call is being recorded. I would now like to turn the call over to our speakers today, Jay Chandan, Chairman and Chief Executive Officer, and Bruce Bower, Chief Financial Officer. Thank you. Please proceed, 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 breakeven. Now we've delivered a clear swing in profitability. We've built a cash position of about over $119 million. We've reduced debt to a point of $15.1 million, and we've advanced our AI infrastructure programs across Southeast Asia, Latin America, and the Middle East, securing multibillion-dollar projects, but at the same time, we're also creating a 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. Bruce, anything you want to say?
I'd like to highlight some key points from the quarter and our overall status. Firstly, we achieved a record revenue quarter, as Jay noted. Our balance sheet shows $121.4 million in total cash, comprising $109 million in unrestricted free cash and the remainder in restricted cash. With debt at $15.1 million, our net cash position stands at $106 million. This positive outcome follows solid business performance and was supported by a fundraising effort in July. Regarding our current business performance, we remain on track to meet our 2025 revenue guidance of $100 million to $110 million, targeting EBITDA margins above 20% and net income margins between 15% and 20%. We expect gross margins for the year to fall within the 35% to 40% range, slightly lower than our original expectations. At the end of the quarter, our accounts receivable stood at $36 million, and although this has raised some concerns, we anticipate collecting on several outstanding amounts, particularly in Asia and the Middle East, in the fourth quarter. For the year, we project either breakeven or positive operating cash flow despite a $15 million negative cash flow over the first nine months. Looking ahead to next year, we provided guidance of $137 million to $200 million, based on our contractual backlog and delivery timelines associated with signed contracts. Notably, we have a substantial contract with FREYR, which is valued highly, contributing over $400 million on an annualized basis once fully operational, although rollout will extend into 2026. Moreover, we have a robust pipeline, especially in Southeast Asia, and we expect over 50% of our growth to come from this region next year. This growth involves diversifying our business and reducing reliance on government revenue, while ensuring that our corporate clients maintain strong credit quality. Finally, since going public in 2022 with $22 million in revenue, our guidance for this year shows significant growth to $100 million to $110 million, indicating an acceleration in our growth rate for the next year. Additionally, we’ve improved our financial position, clearing previous debt issues and shifting towards almost entirely common equity. We are set for a strong finish in 2025 and are optimistic about our outlook for 2026. I’ll now turn it over to Jay for further insights on the outlook and pipeline.
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 just to highlight on what Bruce talked about and clarifying some of the proof points to all the naysayers out there, our revenue, the consensus analyst model was roughly about $26 million to $26.2 million. Our actuals were at $26.5 million. Gross profit estimate was $9.5 million. We did about $9.9 million. Our 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. And our adjusted EBITDA was about $5.6 million estimated, we did $6.8 million. Adjusted net income was about $3.5 million. We completed quarter 3 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 a 100% improvement. Our analyst implied debt was at about $21 million. Gorilla's 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 most 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 turned profitable while executing national infrastructure programs across Southeast Asia, Middle East, Latin America and so on. Anyone who has ever worked in this 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 win. It is a contract and is underway already flowing into our scheduling and revenue plans for 2026 and onwards, of course. The first phase alone provides for $100 million of annual revenue for the first 3 years. This is the definition of structural. Now people also asked me about the pipeline of $7 billion. I'm going to 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 is 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 Telstra 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, Edgecore, 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-and-answer session now, we're not at a peak today. If anything, this is the foothill before the climb. 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.
Questions and answers
Our first question today comes from Mike Latimore from Northland Capital Markets.
Congrats on the great results here. 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, good to hear from you. Let me answer it with numbers first, Mike. For 2026, we've guided a revenue range of roughly around $137 million to $200 million. This is built on only 2 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 $100 million from '26 to '28. Now there is 0 revenue in that guidance from databases of the $1.4 billion program and 0 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 1. 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, our 5G offer inception programs and so on. None of that is in the current guidance of 2026. So 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, HPE, Super Micro and so on and so forth. But that said, the upside from additional AI data center phases and new sovereign mandates will sit above all of these, and they will crystallize and therefore, they will become our future guidance as well. So I personally believe that we published a very sensible conservative number, and that's why we have deliberately left the rest out of them for now.
All right. Perfect. Any color on EBITDA margins, what you think they might do in '26?
Sure. Bruce, do you want to take that?
Sure. So we would guide for a sort of 15% to 25% range.
Okay. Good. Just one last question from me. Can you provide more details on the deliverables for this large contract in 2026? Specifically, what will you be delivering in the first quarter and throughout the year?
That's a good question. The best way to understand the first $100 million is through the run rate it establishes. Many people might think that once you've signed a $1.4 billion contract, revenue starts pouring in immediately, but that's not how it works. As you likely know, data centers are complex. We're currently discussing a significant addition that involves around 6 to 8 megawatts, which equates to several hundred high-density AI racks. These aren't activated all at once; they come online in planned batches as we complete the necessary power and cooling setups along with network configurations. As each batch is energized, revenue gradually increases. The GPU capacity is crucial here, as it plays a key role in these phases. When the racks go live, we integrate the cluster through our collaborations with NVIDIA and other partners, which enhances the GPU as a service usage. Moreover, our services are layered over time, rather than being rolled out all at once. For instance, we offer video intelligence for cities, transportation, and borders, big data analytics, and development of large language models for government and telecom applications, as well as cybersecurity and network intelligence solutions, including environmental intelligence and smart policing. As national workloads transition to the platform and utilization rises—typically from 30% to 40% up to about 70% to 80%—this boosts our revenue alongside the physical capacity. To build on what Bruce mentioned earlier, achieving steady-state revenue of about $300 million to $400 million requires all GPUs to be operational and synchronized effectively. This process will be controlled and gradual; we are closely collaborating with NVIDIA and expect to have everything commissioned and operational by the end of 2026.
Our next question comes from David Williams from Benchmark.
Congratulations on the progress and success, gentlemen. I have a question regarding the guidance. While you've touched on this earlier, it seems there is potential for some upside. Considering the market risks and the dynamics from the supply side, how would you assess the range from the midpoint to the upper end of the guidance? I would assume that there is likely more upside opportunity than downside risk. Would you agree with that?
David, it is reasonable to believe that there is potential for more upside. The risks to our guidance can be divided into two main areas. First, the timing of customer deployments for large AI infrastructure and data center programs is contingent on client site readiness, which includes factors such as site access, power allocation, import clearances, and customer procurement cycles. These elements can vary from quarter to quarter, and even a slight shift of a week or two can have significant effects. Secondly, supply chain constraints represent a significant challenge today. There's a strong demand for GPU servers not only in the United States but globally. Additionally, networking equipment delays can lead to longer lead times. Recently, the price of memory has increased by 40% in just the last two months. Other considerations include regulatory and compliance approvals, project phasing on multiyear platforms, and geopolitical sensitivities in regions like Southeast Asia, the Middle East, and Latin America. On the upside, which I mentioned earlier, our focus is on the launch timing of these programs. We aim to have all of them operational by 2026, ensuring that we distribute all these clusters through our NVIDIA partnership and partner ecosystem to drive GPU as a service utilization. Once we achieve that, with these purpose-built data centers occupied entirely by one customer, our revenue will scale up as soon as operations commence. We are aware of the risks I mentioned, but we are also considering the potential upside, and we intend for that upside to help mitigate the risks on the downside. I hope that addresses your question.
Can I add something to...
So a couple of other things to keep in mind. The first is the data center opportunity; the data center contract we have is an umbrella contract with Freyr. When we announced it, the $1.4 billion was based on the scheduled deployments at that time. There is always the possibility that more deployments could be added, which would provide another source of potential upside. The second point is that while we’ve discussed the contractual backlog and the data center segment, we haven’t touched on other aspects. Gorilla is still actively bidding for government contracts. We recently submitted several bids and are awaiting positive news from a few governments in Asia. Additionally, we have previously discussed our partnership with Amazon and the MOUs we’ve signed with government customers. None of those are currently in the guidance because they haven’t yet materialized into specific dates and amounts. However, once we have clarity on the date and the amount, those will be incorporated into our guidance for next year. It’s not solely about fulfilling the data center contract, even though that is our largest focus. There are multiple avenues for Gorilla to achieve success next year.
Is there a way to assess the size of your backlog? You've mentioned a few items but don't have specific amounts or dates yet. If we consider your total backlog and what you expect for next year, how should we evaluate that?
The backlog for us is clearly defined. We have $85 million for 2026, with exact dates, times, and it is currently being implemented. We also have the data center contract, which is signed and in progress, but we don’t have a definite timeline for deployment yet. As Jay mentioned, we need to obtain some regulatory approvals and work with other parties before we can finalize that timing. The pipeline consists of qualified leads we believe will make decisions in the next 3 to 6 months. These leads have budgets allocated, but we do not yet have signed contracts with specific amounts or dates. Therefore, there are two components: the backlog is strictly defined, while the pipeline involves converting customer leads into signed contracts with amounts and dates, allowing us to move them into the backlog.
If I add some color 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, 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're signing MOUs and so on and so forth, whether it was part Asian in the U.K. or the 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-grade AI infrastructure, that basically kind of triggered a surge of interest. Now without giving names, the demand wave behind the FREYR is significantly larger than FREYR itself. That is one of the primary reasons why our pipeline is well north of $7 billion. Now if you look at the GPU infrastructure, it has moved away from ambition for us to urgency. Through our 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 Telstra in Brazil who's providing capital and looking to build some seriously large data centers as well. So these are all kind of 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 multiyear 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 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?
That's a great question. Why are we succeeding? I believe we've demonstrated our capabilities to reach our current position. We collaborate with governments to understand their needs, including their commission and ecosystem requirements, and assist them in building national workloads. Gorilla has been a key player in this sector for 24 years, and we're approaching our 25th anniversary. We function as a full-stack AI operator, which I mentioned in my initial speech at NASDAQ, where I expressed our goal of being an AI stack operator. We design the architecture, construct the data centers, integrate the GPU stacks, and manage the platform, all while maintaining long-term partnerships with governments and telecom companies. Additionally, we provide our customers, both at the enterprise and government levels, with sovereign control and predictable economics. This is crucial because our clients have clarity on who manages their infrastructure and is responsible for its uptime and performance. Finally, it comes down to capability. We have been delivering national cybersecurity infrastructure, and we built four data centers in Egypt as part of our $270 million contract. We're also managing multimillion-dollar national projects across Southeast Asia, the Middle East, and Latin America. Our execution speed, project structuring abilities, and operational discipline set us apart from our competitors. It's essential to recognize that AI infrastructure cannot fail; it must be managed by individuals with strong operational discipline, which is a responsibility we uphold. Therefore, we build, operate, and manage with accountability. In simple terms, while others focus on selling buildings and servers, we emphasize delivering outcomes.
And one thing to add on to that, as the numbers guy, is when I was investigating why we win, so to prepare some investor 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 about a $1 billion data center, that's a significant cash savings. So not only is it sort of everything that the customer is looking for in terms of sovereign data infrastructure, faster time to market, but it's also cheaper. So in the end, there's enough that stacks up, and it becomes very difficult to look at a competitor by comparison.
Our next question comes from John Roy from Water Tower Research.
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 great question. You caught me off guard a bit. My pipeline is currently $7 billion, and while I hope to sign all of these deals, it won’t come without challenges. Regarding expanding my sales team, we already have a strong foundation with over 250 full-time employees and more than 200 contractors. Right now, I'm the primary sales person making sure to be present for every customer and project, regardless of size. Looking forward, if the programs and partnerships we're pursuing succeed as I anticipate over the next 3 to 6 months, my personal target is to reach around $500 million in annual revenue by 2027. This is not an official company target, just my goal based on our platform's capabilities. It's essential for us to establish a solid foundation so that we can grow our pipeline authentically and support various acquisitions and team expansions. We've been actively hiring in Taiwan and have brought on over 60 people in Thailand, with about 150 new hires in India. We're also considering acquisitions in both India and the U.S. Stay tuned for more updates as we progress.
No, that sounds good. And the cash, maybe, Bruce, can you give us some highlights on where that cash might be headed?
Yes. So for all of the major contracts, there is a capital needs from Gorilla 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 upfront 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, 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 2 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 3 to 6 months.
Our next question comes from Brian Kinstlinger from Alliance Global Partners.
Congrats on all the business development achievements over the last few months. As it relates to the Freyr 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. It's great to hear from you. First, Freyr isn't just a construction project for us. It's about establishing a long-term AI infrastructure partnership across countries like Indonesia, Malaysia, Thailand, Vietnam, and the Philippines. We're designing, building, operating, and monetizing this over the years. Once the data center is operational, we're not just hosting the server racks; we will also provide a range of services such as video intelligence, big data analytics for the government, and cybersecurity platforms, among others. For me, Freyr represents an entry point, and the real value lies in what we offer on top of it and the entire ecosystem around it. Viewing it from this angle, you're correct that it has higher margins, resulting in significantly higher EBITDA. However, in terms of cash flow, it may take a bit longer due to the considerable capital expenditure involved. We plan to deploy our own operations team and integrate our solutions, helping clients transition from building large language models to inference engines and advancing through the value chain. Think of us as creators, curators, hosts, and protectors of your data; that encapsulates what we do.
Great. 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 about a couple of years ago, Brian, when we first spoke, I said my first job was to derisk the business. And it was to derisk our delivery profile in 3 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 score 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 1.5 years 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 the breathing space to reengineer 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. That answers your question?
Yes, 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 update 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.
The One Amazon project is progressing well. We have completed the proof of concept in Panama and are now moving into Mato Grosso, where we recently signed an initial $100 million program. We expect to receive a significant portion of that for our technology deployment. However, we have various concerns to address, such as sensor deployment and monitoring processes, which contribute to a stream of environmental and health intelligence that can be monetized for decades. We have initiated work on this, which is growing and is not included in our 2026 guidance. Additionally, we've signed MOUs with companies like Telstra, covering over 120 megawatts to be completed in the next 24 months. This is also connected to our Freyr project and is expected to lead to a variety of repeatable AI infrastructure projects. We are closely collaborating with projects in Thailand and are confident that we will reach positive outcomes in the coming months. Our team is consistently working to ensure that each platform builds a strong digital backbone and integrates effectively with their infrastructure, with all of this not reflected in the 2026 guidance.
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 awards, 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, Brian. I believe I mentioned this earlier, but it's crucial to understand that many people underestimate our capabilities as a smaller company. Right now, we are heavily focused on our mergers and acquisitions strategy, which strengthens our execution capabilities. Concurrently, we are exploring expansion into some of the fastest-growing economies globally. Firstly, let's discuss India. The current AI market in India is approximately $9.5 billion and is projected to grow to around $130 billion by 2032. This represents a significant tenfold increase. I recently visited India, where the country is doubling its data center capacity from 950 megawatts to around 1,800 to 2,000 megawatts by 2026, signifying a transformative shift in AI computing, cloud services, and digital sovereignty. Our investments there are substantial, and our potential acquisitions are strategically significant, placing us in a rapidly growing economy where we are establishing a local team and regulatory framework and pursuing large-scale projects. The second key market is the United States, the largest AI market globally, accounting for approximately 36% to 38% of the global AI spending. Beyond the AI market, sectors like public safety, digital infrastructure, and GPU demand are generating tens of billions of dollars as well. Our acquisitions in the U.S. are strategic and provide us a solid platform, extensive customer opportunities, and depth in execution. We aim to deliver real AI infrastructure and public safety solutions in both the U.S. and India. Over the next two to three years, the U.S. will serve as a crucial engine for growth. Our strategy focuses on acquiring capabilities rather than just revenue. While India offers scale in a rapidly expanding market, the U.S. lends us credibility in the world's most advanced AI and law enforcement landscape.
Our last question comes from Bart Boone from Red Chip.
Jay, Bruce, congratulations on a great quarter.
Thank you.
I just have a few questions here. First, we know you design, build, and operate AI data centers, provide GPU as a 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 Gorilla's 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, Bart. 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. 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 3-pronged approach. So how should someone see us, whether it's investors or customers, they should see us as a sovereign-grade AI operator, not just as a project contributor or a box shifter. We're surely not a box shifter.
Thank you, Jerry. 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 stand-alone products, right? How do they all work together?
The quantum question. I love that, Bart. 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, right? Post-quantum cryptography alone is expected to cross over $100 billion 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 posture, 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, the quantum-safe network opens the door even wider for us. Why? If you look at the way we protect country's 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 the national analytics, all of their secure workloads and all of their critical infrastructure protection. We signed 2 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 sign tens of millions of dollars today, but my aim is to convert them to 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 stand-alone. Think of them as a handshake that goes together over larger sovereign scale national infrastructure program. That's how I look at it from our IND perspective.
That's very helpful. I just have one more question to leave you with. So over the past few years, you've gone from survival mode to a position where you have record revenue, strong profitability, a multiyear AI data center mandate and a multibillion-dollar pipeline. What do you think the market is missing about Gorilla's trajectory when you look at the next 2, 3 years?
You put me on the spot there. First of all, I want everyone to understand this. We are no longer just a project shop. We are becoming a sovereign AI infrastructure operator. In Phase 1, for instance, in Southeast Asia alone, we are discussing hundreds of billions in revenue per year, and the later phases will be even larger. However, none of this is included in our current guidance, and I want to emphasize that. Our pipeline is expanding; we now have about $7 billion in potential projects across telecommunications, law enforcement, infrastructure, and government, which are all multiyear national platforms. Once we demonstrate our ability to deliver, we typically won’t be limited to just one contract, and the market recognizes this. Regarding our balance sheet, there have been several inquiries about it. We currently have over $107 million of unrestricted cash, with a total of around $120 million in cash overall. This positions us well to fund significant data center projects without hesitation. A year ago, we were focused on survival; today, we are designing national architectures. We are also committed to not diluting our shareholders as a default. We are considering a wide range of creative structures with our partners, from project-level vehicles to revenue sharing, enabling us to scale effectively without giving away the company. As for my ambition, this is a personal goal and not guidance, but I hope to see us operating at approximately $500 million in annual revenue by 2027, with growth beyond that. Brian and you mentioned the flywheel question earlier. Each data center we establish generates long-term revenue from GPU and hosting. Moreover, as we expand our infrastructure, our capacity to leverage software intelligence increases. What is the market overlooking? The market is missing the fact that Gorilla is transitioning from a small-cap, survival-based narrative to a multi-region sovereign AI operator with long-term contracts, increasing margins, and significant revenue aspirations. Many still perceive us as the Gorilla from 2022, when we had $22 million in revenue. If my ambitions are realized and we reach $500 million, that's an incredible growth trajectory that few have experienced. The Gorilla that emerges in the coming year will be a dramatically different entity, and that’s what the market hasn’t grasped yet.
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 the 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 you. Now we enter a new phase. We're not just winning contracts. We're building the AI infrastructure of the nation. 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 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.