- Gatekeeper Systems (TSXV:GSI) announced its financial results for Q3 2025, highlighting record revenue and significant contract wins across North America
- The company posted its highest-ever fiscal third-quarter revenue of C$7.5 million, a 16 per cent increase from Q3 2024
- The company announced over C$5.4 million in school bus video and subscription contracts
- Gatekeeper Systems stock (TSXV:GSI) last traded at C$1.30
Gatekeeper Systems (TSXV:GSI) announced its financial results for the three and nine months ended May 31, 2025, highlighting record third-quarter revenue and significant contract wins across North America.
This content has been prepared as part of a partnership with Gatekeeper Systems Inc. and is intended for informational purposes only.
Q3 2025 financial highlights
- Record Q3 revenue: The company posted its highest-ever fiscal third-quarter revenue of C$7.5 million, a 16 per cent increase from C$6.5 million in Q3 2024.
- Nine-month revenue: Revenue for the nine-month period was C$20.7 million, compared to C$26.1 million in the prior year. Excluding a one-time C$9 million transit contract from the previous year, the company’s core business grew approximately 21 per cent year-over-year.
- Gross profit: Gross profit was C$3.7 million for the quarter and C$9.1 million for the nine-month period, with gross margins of 49 per cent and 44 per cent, respectively.
- Operating loss: The company reported an operating loss of C$0.1 million for the quarter and C$1.4 million for the nine months, primarily due to increased investments in sales, marketing, and R&D.
- Working capital: As of May 31, 2025, Gatekeeper held C$15.6 million in working capital and remained debt-free.
Operational highlights
- Transit contracts: Gatekeeper secured over C$7 million in new and extended transit contracts, including:
- A contract extension with SEPTA (Southeastern Pennsylvania Transportation Authority),
- A new transit customer in Oregon,
- A new transit customer in Canada, and
- Factory-installed video systems for paratransit vehicles.
- School bus contracts: The company announced over C$5.4 million in school bus video and subscription contracts, including deployments in:
- Florida (300 buses),
- Missouri (200 buses),
- Indiana, Virginia, Nebraska, California, and Canada.
- Notable installations include Student Protector systems in Nevada and 360 Surround Vision in Florida.
- Subscription growth: Video management and hosted service subscriptions surged from 300 to 3,500 during the fiscal year, reflecting strong demand for Gatekeeper’s cloud-based solutions.
- Team expansion: The transit team was expanded to support compliance with the Federal Railroad Administration (FRA) mandate, positioning the company for future rail-related opportunities.
Post-quarter developments
Following the quarter-end, Gatekeeper completed a bought-deal brokered financing raising C$11.5 million in gross proceeds. Additionally, the company increased its Letter of Credit Facility with TD Bank to C$7.5 million, enhancing its ability to support large-scale projects and inventory procurement.
Leadership’s insight
“Our fiscal third quarter marks the company’s highest-ever fiscal third quarter revenue. We continue to make investments in our business, which we believe will contribute strongly to our future growth and we are already witnessing those benefits,” Gatekeeper’s President and CEO, Doug Dyment commented in a media statement. “Customer adoption of our video management and hosted service subscriptions is gaining traction and most of our customer proposals now include these subscription services. During the current fiscal year, the number of Mobile Data Collectors under contract for monthly-recurring hosted services has increased from approximately 300 to 3,500, with additional subscriptions expected soon from contracts recently announced.
Gatekeeper offers intelligent video and data solutions for public transportation and smart cities,
Gatekeeper Systems stock (TSXV:GSI) last traded at C$1.30 and has risen 128.07 per cent since the year began while growing 160.00 per cent since this time last year.
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