Gatekeeper Systems loses $2.97-million in 2025

Executive Summary

• Gatekeeper Systems Inc. reported audited financial results for the fourth quarter and fiscal year ended August 31, 2025, showing a decline in total revenue and net loss compared to the prior year, largely due to the exclusion of a large prior-year transit contract.
• The company secured $43.8 million in new business contracts subsequent to the fiscal year-end, including its largest-ever transit contract with the New York MTA's Long Island Rail Road and a significant school bus video contract.
• Gatekeeper completed two bought deal financings in 2025 generating $25 million in gross proceeds and appointed Hamish Dobson to its board of directors.

Key Details

• Fiscal Year 2025 Revenue: $31.8 million, down from $37.8 million in the prior fiscal year.
• Revenue Adjustment: The prior year included a $9 million transit contract; excluding this, regular business grew approximately 10%.
• Fiscal Year 2025 Gross Profit: $13.1 million (down from $17.2 million), with a gross margin of 41% (down from 46%).
• Fiscal Year 2025 Operating Expenses: $16.9 million (up from $13.0 million).
• Fiscal Year 2025 Net Loss: Total comprehensive loss of $3.0 million (compared to an income of $1.9 million in the prior year).
• Q4 2025 Revenue: $11.1 million (down from $11.7 million in the prior year).
• Q4 2025 Gross Margin: 36% (down from 40%).
• Q4 2025 Net Loss: Total comprehensive loss of $2.2 million (compared to a loss of $1.2 million in the prior year).
• Post-Year-End Contracts: $43.8 million in new business announced after Aug 31, 2025, including:
  • $27 million transit video contract with New York MTA's Long Island Rail Road.
  • $9.3 million school bus video contract with a student transportation provider.
  • OEM contract with Alstom for transit video.
  • POC contract with L&T Technology Services for a freight rail project in the Middle East.
• Operational Metrics:
  • Approximately 8,000 mobile data collectors (MDCs) installed during the fiscal year, bringing total installations to ~65,000.
  • Approximately 4,000 MDC subscriptions for video management and hosted services since the data center launch in Feb 2024.
• Financing Activities:
  • Completed two bought deal financings generating aggregate gross proceeds of $25 million ($11.5 million in July 2025 and $13.5 million in November 2025).
  • Working capital of $23.6 million at Aug 31, 2025, including $14.8 million in cash.
  • Undrawn $6 million credit facility and $7.5 million letter of credit facility with Toronto-Dominion Bank.
• Governance: Appointed Hamish Dobson, a security industry executive, to the board of directors.

Notable Quotes

• "Two thousand twenty-five has been a transformational year for Gatekeeper... we made a strategic decision to increase investment in the business to build the necessary foundation pillars to allow the company to pursue larger customers and larger contracts." — Doug Dyment, President and CEO
• "We are also now pursuing global growth opportunities and have announced a POC contract with L&T Technology Services for a freight rail project in the Middle East." — Doug Dyment, President and CEO